Integrated modeling with Top-Down approach in subsidiary industries

This article considers how conceptual design of industrial products is supported by current CAD systems. The case of subsidiary industries, or first tier suppliers, that must simultaneously deal with different customers and CAD platforms, receive special attention. Conceptual design is critical, since the large variety of fundamental product data managed (not just geometry) would be specified, modeled and interrelated (i.e. functional relations), to both simplify and ensure correctness and efficiency of the next design phases of current design, and make them easy to reuse, modify and redesign in the future. We give an approach to introduce conceptual design through top-down methodology and integrate it with final geometry. In this context, and in order to help subsidiary industries to improve their model quality, we propose the elaboration of product-oriented modeling guidelines, or “best modeling practices”, instead of CAD-oriented modeling guidelines. The approach has been validated by testing the conceptual design tools of two commercial high-end CAD systems at use in many subsidiary automotive industries

Outsourcing when investments are specific and complementary.

Using the universe of large Canadian manufacturing firms in 1988 and 1996, we investigate to what extent firms’ outsourcing decision can be explained by a simple property rights model. A novel aspect of the data is the availability of component level information on outputs as well as inputs which permits the construction of a very detailed measure of vertical integration. Moreover, we construct five different measures of technological intensity to proxy for investments that are likely to be specific to a buyer-seller relationship. Our main findings are that (i) greater specificity makes outsourcing less likely; (ii) complementarities between the investments of the buyer and the seller are also associated with less outsourcing; (iii) only when we focus on the range of transactions with low complementarities do we find support for several nuanced predictions of the property rights model.

Outsourcing when Investments are Specific and Complementary

Using the universe of large Canadian manufacturing firms in 1988 and 1996, we investigate to what extent firms' outsourcing decision can be explained by a simple property rights model. A novel aspect of the data is the availability of component level information on outputs as well as inputs which permits the construction of a very detailed measure of vertical integration. Moreover, we construct five different measures of technological intensity to proxy for investments that are likely to be specific to a buyer-seller relationship. Our main findings are that (i) greater specificity makes outsourcing less likely; (ii) complementarities between the investments of the buyer and the seller are also associated with less outsourcing; (iii) only when we focus on the range of transactions with low complementarities do we find support for several nuanced predictions of the property rights model.Property rights theory, complementarity, asset specificity, vertical integration

Outsourcing when investments are specific and complementary.

Using the universe of large Canadian manufacturing firms in 1988 and 1996, we investigate to what extent outsourcing decision can be explained by a simple property rights model. The unique availability of disaggregate information on outputs as well as inputs permits the construction of a very detailed measure of vertical integration. We also construct five different measures of technological intensity to proxy for investments that are likely to be specific to a buyer-seller relationship. A theoretical model that allows for varying degrees of investment specificity and for complementarities---an externality between buyer and supplier investments---guides the analysis. Our main findings are that (i) greater specificity makes outsourcing less likely; (ii) complementarities between the investments of the buyer and the seller are also associated with less outsourcing; (iii) property rights predictions on the link between investment intensities and optimal ownership are only supported for transactions with low complementarities. High specificity and a low risk of appropriation strengthen the predictions in the model and in the data.

Subsidiary types, activities, and location: an empirical investigation

Paper selected to be included in the AIB Best Paper Proceedings: Ref no. AIB2008-0668Session 2.4.4 - Competitive: Track 4 Subsudiary Evolution and StrategyConference Theme: Knowledge, Development and Exchange in International Business NetworksThe present paper extends the literature on the functions of foreign subsidiaries in the strategies of multinational companies in two ways: (a) by using a series of activities to induce subsidiary roles and (b) by investigating the firm-specific and location-specific determinants of subsidiary roles. Cluster analysis of responses of multinational subsidiary managers in the Asia-Pacific support a four-fold subsidiary typology. Categorical modeling on the resulting subsidiary types showed that several firm-specific and location-specific variables such as firm size, nationality, host market size and the level of host market openness have an impact on subsidiary mandate.published_or_final_versionThe 50th Annual Meeting of the Academy of International Business (AIB 2008), Milan, Italy, 30 June-2 July 2008. In Proceedings of the 50th Annual Meeting of AIB, 2008, p. 17

Measuring third party tracker power across web and mobile

Third-party networks collect vast amounts of data about users via web sites and mobile applications. Consolidations among tracker companies can significantly increase their individual tracking capabilities, prompting scrutiny by competition regulators. Traditional measures of market share, based on revenue or sales, fail to represent the tracking capability of a tracker, especially if it spans both web and mobile. This paper proposes a new approach to measure the concentration of tracking capability, based on the reach of a tracker on popular websites and apps. Our results reveal that tracker prominence and parent-subsidiary relationships have significant impact on accurately measuring concentration

The Impact of Foreign Board Membership on Firm Value

This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin’s Q). On a basis of firms with headquarters in Norway or Sweden the study indicates a significantly higher value for firms that have outsider Anglo-American board member(s), after a variety of firm-specific and corporate governance related factors have been controlled for. We argue that this superior performance reflects the fact that these companies have successfully broken away from a partly segmented domestic capital market by “importing” an Anglo-American corporate governance system. Such an “import” signals a willingness on the part of the firm to expose itself to improved corporate governance and enhances its reputation in the financial market.Foreign Board Membership; Corporate Governance; Board Monitoring; Cross-Listing