Faculty Research in Progress, 2018-2019

The production of scholarly research continues to be one of the primary missions of the ILR School. During a typical academic year, ILR faculty members published or had accepted for publication over 25 books, edited volumes, and monographs, 170 articles and chapters in edited volumes, numerous book reviews. In addition, a large number of manuscripts were submitted for publication, presented at professional association meetings, or circulated in working paper form. Our faculty\u27s research continues to find its way into the very best industrial relations, social science and statistics journal

Dynamics of Buyer-Supplier Co-dependency for Optimizing Functional Efficiency

The performance related issues of buyer-supplier relationship have attracted both the academic and corporate managers. The study attempts to make theoretical contributions to the literature on relationships in marketing channels. Compared with the impact of the often-investigated construct of dependence structure, the impact of channel function performance on relationship quality is relatively large. This study has been conducted in reference to the suppliers of office equipments serving to the industrial accounts in Mexico. The study addresses broadly the issues as to what extent is the impact of quality performance responsible for doing business with the organizational buyers. Discussions also analyze the impact of channel function performance on relationship quality, which is moderated by the extent dependence structure of the relationship.Buyer behavior, supplier performance, co-dependency, supply design, profit optimization, buyer value, market coverage, conformance, supply quality

The choice of insider or outsider top executives in acquired companies

There is considerable debate amongst academics and practitioners over whether top executives of acquired or merged companies should stay or go, post-deal, as studies exploring the link with organisational performance show mixed results. This may in part be due to such studies failing to recognise that there are a number of distinct post-acquisition strategies which may require the deployment of different types of top executive. This paper addresses this limitation by bringing together the longstanding Insider/Outsider debate with a post-acquisition integration framework, in order to investigate whether there is a link between top management type and post-acquisition integration strategy. Using a dual methodology of survey and cases drawing on UK M&A data, clear associations are found between top executive type and particular post-acquisition styles. Underlying these patterns, the value-creating/value-capturing distinction of the Resource-Based View appears to have a greater influence over top executive deployment than do issues of Organisational Fit. This suggests strategic intentions have ascendancy over organisational constraints in the selection of top executives for managing post-acquisition integration

Endogenous Acceleration of Technological Change

Our study shows that the technological development of a firm can be subject to an endogenous acceleration mechanism. The more advanced a firm is in using a particular set of technologies, the more likely will it adopt additional, related technologies. This acceleration mechanism implies that marginal differences in early adoption decisions lead to substantial differences in technology endowment later. This hypothesis is tested in a dataset that records the adoption times of various e-business technologies in a sample of 7,302 firms from 10 different industry sectors and 25 European countries. Estimation is carried out with a semi-parametric hazard rate model that controls for unobserved heterogeneity. The results show that the probability to adopt strictly increases with the number of previously adopted e-business technologies. Evidence for a growing digital divide among the companies in the sample is demonstrated for the period from 1994-2002. The endogenous acceleration mechanism is a possible source of early mover advantages, if technological uncertainty and technological improvements over time are not very large and if the price of the new technologies remains roughly constant.Technology adoption, Technological competition, Complementarity, Hazard rate models, IT

Knowledge Spillovers and TFP Growth Rates

In this paper I calibrate unobserved labor-generated knowledge spillovers within and between six large macroeconomic sectors covering the U.S. civilian economy from 1948 to 1991. Using quality-adjusted data I show that manufacturing and trade & transportation are the main source of knowledge flows to the overall economy for the entire period. However, the productivity slowdown of the early seventies coincides with trade & transportation taking over manufacturing as the main source and destination of post-73 knowledge flows. Furthermore, I compute the gap between the market and the optimal allocation of labor across sectors, and the wedge between market and optimal wages by sector. I find that, for the whole period, optimal employment in manufacturing and trade & transportation is, respectively, 20% and 27% above market. As a result optimal output in these sectors is 12% and 16% higher than the market’s, and optimal wages in manufacturing are 54% above market wages.Knowledge spillovers; productivity; human capital; learning; wages.

A Logic of Multi-Level Change of Routines

This paper tries to account for endogenous change of multi-level routines in terms of nested cycles of discovery, in a hierarchy of scripts.Higher-level scripts constitute the selection environment for lower level ones.On any level, a cycle of discovery proceeds from established dominant designs.When subjected to new conditions, a script first tries to adapt by proximate change, in differentiation, with novel selection of subscripts in existing nodes in existing script architecture.Next, in reciprocation it adopts new nodes from other, surrounding scripts.Next, it adapts script architecture, in novel configurations of old and new nodes.In this way, lower level change of subscripts can force higher-level change of superscripts.In this way, institutions may co-evolve with innovation.routines;learning;evolution

On the economic independence of the central bank and the persistence of inflation (Second revision)

Inflation;Central Banks;Monetary Policy;Models

Bayesian inference for CoVaR

Recent financial disasters emphasised the need to investigate the consequence associated with the tail co-movements among institutions; episodes of contagion are frequently observed and increase the probability of large losses affecting market participants' risk capital. Commonly used risk management tools fail to account for potential spillover effects among institutions because they provide individual risk assessment. We contribute to analyse the interdependence effects of extreme events providing an estimation tool for evaluating the Conditional Value-at-Risk (CoVaR) defined as the Value-at-Risk of an institution conditioned on another institution being under distress. In particular, our approach relies on Bayesian quantile regression framework. We propose a Markov chain Monte Carlo algorithm exploiting the Asymmetric Laplace distribution and its representation as a location-scale mixture of Normals. Moreover, since risk measures are usually evaluated on time series data and returns typically change over time, we extend the CoVaR model to account for the dynamics of the tail behaviour. Application on U.S. companies belonging to different sectors of the Standard and Poor's Composite Index (S&P500) is considered to evaluate the marginal contribution to the overall systemic risk of each individual institutio