Partner Selection Criteria in Strategic Alliances When to Ally with Weak Partners

In many emergent markets, cross-industry alliances are necessary to develop and market new products and services. The resource-based view suggests that firms form alliances to access or acquire valuable, rare, non-imitable and non-substitutable resources, and that such access determines the level of profits. Hence, firms confronted with the choice between partners with strong versus partners with weak resource endowments should choose the former. We contest this view and argue that firms benefit from allying with weak partners at certain times. In essence, we suggest that partner selection involves assessing the relative importance of strong resource endowments and aligned strategic aspirations over time. By adopting an evolutionary approach, we show that appropriate partner selection criteria are dynamic and may involve allying with weak partners in the initial exploratory stage, with weak and/or strong partners in the development stage and with strong partners in the maturity stage. Our findings suggest that the resource-based understanding of strategic alliances should be extended to include a more profound role for a partner firm’s strategic aspiration.Strategic alliances, partner selection, resources, aspirations

Efficiency, scale economies and valuation effects : evidence from bank mergers in India

Original article can be found at : http://www.inderscience.com/ Copyright Inderscience PublishersThis paper examines two important issues related to bank mergers in India. First, we estimate potential economic gains of state owned banks if they undergo consolidation. Scale economies, returns to scale and profit efficiency of state owned banks during 1986 to 2003 are estimated based on stochastic frontier analysis. We find that many Indian banks exhibit potential cost savings from mergers provided they rationalize their branch networks although profit efficiency may not rise immediately. Second we measure the realized impact of bank mergers on shareholders’ wealth based on event study analysis. We find that in the case of forced mergers, shareholders of neither the bidder nor the target banks benefited. In the case of voluntary mergers, the bidder banks’ shareholders gained more than the target banks’ shareholders.Peer reviewe

Environmental Water Markets: Restoring Streams Through Trade

This Policy Series explores the evolving institutional settings in western states1 for restoring and preserving instream flows. The focus is on how markets can provide an efficient and equitable solution for allocating water among increasingly competitive offstream and instream demands, while also providing economic incentives for improved water use efficiencies and conservation. This essay also identifies the underlying barriers that complicate or thwart water markets and provides thoughts on how they may be overcome

Highlights from millions fed: Proven successes in agricultural development

Learning from successes in agricultural development is now more urgent than ever. Progress in feeding the world’s billions has slowed, while the challenge of meeting future food needs remains enormous and is subject to new uncertainties in the global food and agricultural systems. In the late 1950s around a billion people were estimated to go hungry every day. Scientists, policymakers, farmers, and ordinary people initiated a concerted push to boost agricultural production and productivity in developing countries. Great strides were also made in improving the quality of food and the ability of vulnerable people to access food needed for survival. All these efforts have done more than just feed millions. They have also demonstrated that agriculture can be a key driver of growth and development for many of the world’s poorest countries.Developing countries, Food prices, Poverty reduction, Hunger, malnutrition, Agricultural research, Agricultural technology, food security, Agricultural development, Climate change, Agricultural markets, Agricultural policies, Science and technology,

The Malawi Agricultural Input Subsidy Programme: 2005-6 to 2008-9

Malawi’s implementation of a large scale agricultural input subsidy programme in 2005/6 and subsequent years has attracted significant international interest. This paper reviews the background, processes, achievements and outcomes of the programme over the period 2005/6 to 2008/9. The very large scale disbursement of heavily subsidised fertilisers and (mainly hybrid and composite maize) seed to very large numbers of beneficiaries across the country represents a significant logistical achievement and led to significant increases in national maize production and productivity, and this has contributed to increased food availability, higher real wages and wider economic growth and poverty reduction. However the latter years of the programme have also been accompanied by very high international fertilizer prices and costs and by high maize prices, the latter undermining the programme’s food security, poverty reduction and growth benefits for the majority of Malawian farmers, who are very poor and rely on purchased maize for significant amounts of their staple food requirements. Estimated economic returns to the programme have been satisfactory, given other benefits of the programme not captured in cost benefit analysis. With substantial reductions in both prices and subsidised volumes of fertilisers in subsequent years, there is considerable scope for building on achievements to substantially raise programme effectiveness, efficiency and benefits. Any application of Malawi’s subsidy experience to other countries needs to take account of special characteristics of the Malawian maize economy and of measures needed to raise such programmes’ effectiveness and efficiency and ensure their best fit with and contribution to sustainable development policies

Linking African smallholders to high-value markets : practitioner perspectives on benefits, constraints, and interventions

This paper provides the results of an international survey of practitioners with experience in facilitating the participation of African smallholder farmers in supply chains for higher-value and/or differentiated agricultural products. It explores their perceptions about the constraints inhibiting and the impacts associated with this supply chain participation. It also examines their perceptions about the factors affecting the success of project and policy interventions in this area, about how this success is and should be measured, and about the appropriate roles for national governments, the private sector, and development assistance entities in facilitating smallholder gains in this area. The results confirm a growing'consensus'about institutional roles, yet suggest some ambiguity regarding the impacts of smallholder participation in higher-value supply chains and the appropriateness of the indicators most commonly used to gauge such impacts. The results also suggest a need to strengthen knowledge about both the'old'and'new'sets of constraints (and solutions) related to remunerative smallholder inclusion, in the form of the rising role of standards alongside more long-standing concerns about infrastructure and logistical links to markets.Access to Finance,Environmental Economics&Policies,Labor Policies,Economic Theory&Research,Agricultural Knowledge&Information Systems

The economic design of a potential tradable permit system for SO2 emissions in the European Union

This paper contains two main parts. The first develops the issues of the European acid policy, and sets out the general background of the related regulatory regime. It also gives an overview of the theoretical and actual features of emissions trading mechanisms. It then considers the potential attractiveness of SO2 trading in the EU. This background throws light on the more specific analyses and proposals described in the second part of the paper, which is devoted to a presentation of possible frameworks for SO2 trading in the power generation sector in the EU. In section 2.1., we look at some key design variables. In section 2.2., we present three alternative ways of designing a trading scheme. In section 2.3., we consider specific issues related to zoning and scaling.

California Carbon Offsets and Working Forest Conservation Easements

California’s cap-and-trade system is a vital laboratory for testing the effectiveness of this market-driven approach in meeting greenhouse gas emission reduction goals and the use of forestry-based carbon offsets within these systems generally. Based on this experience, this Article explores one of the primary challenges, layering offsets with working forest conservation easements, which currently limits opportunities to effectively use these tools in concert. Ultimately, this market may need to foster and rely on natural linkages with working forest conservation easements to develop these offsets and to better ensure that the critical societal objectives of these projects are being met

Open-Access Losses and Delay in the Assignment of Property Rights

Even though formal property rights are the theoretical response to open access involving natural and environmental resources, they typically are adopted late after considerable waste has been endured. Instead, the usual response in local, national, and international settings is to rely upon uniform rules and standards as a means of constraining behavior. While providing some relief, these do not close the externality and excessive exploitation along unregulated margins continues. As external costs and resource values rise, there finally is a resort to property rights of some type. Transfers and other concessions to address distributional concerns affect the ability of the rights arrangement to mitigate open-access losses. This paper outlines the reasons why this pattern exists and presents three empirical examples of overfishing, over extraction from oil and gas reservoirs, and excessive air pollution to illustrate the main points.