Specialization as an Optimal Strategy Under Varying External Conditions

We present an investigation of specialization when considering the execution of collaborative tasks by a robot swarm. Specifically, we consider the stick-pulling problem first proposed by Martinoli et al. [1], [2] and develop a macroscopic analytical model for the swarm executing a set of tasks that require the collaboration of two robots. We show, for constant external conditions, maximum productivity can be achieved by a single species swarm with carefully chosen operational parameters. While the same applies for a two species swarm, we show how specialization is a strategy best employed for changing external conditions

East-west corporate networking: A theoretical approach

In recent years after the beginning of the transition process, firms in Central and Eastern European countries have been trying hard to find access to international markets and production chains. Rapidly changing institutional, technological and demand conditions together with decades of isolation from world markets do not let ,,stand-alone strategies appear very successful in this context. The paper presents networking activities as a promising alternative for Central and Eastern European firms (CEEF) to organize international transactions. As several theories show, network forms of organization can - by establishing an atmosphere of trust and stability and by pooling resources and information - make it possible for network members to realize an economic advantage over external competitors that is higher than in markets or hierarchies. Among various types of networking activities, it is especially long-term-orientated relations that offer the possibility for CEEF to participate in an international exchange of crucial technologies and to upgrade their position in global production chains in the long run.

Export diversification and resource-based industrialization: the case of natural gas

For resource-rich economies, primary commodity specialization has often been considered to be detrimental to growth. Accordingly, export diversification policies centered on resource-based industries have long been advocated as effective ways to moderate the large variability of export revenues. This paper discusses the applicability of a mean-variance portfolio approach to design these strategies and proposes some modifications aimed at capturing the key features of resource processing industries (presence of scale economies and investment lumpiness). These modifications help make the approach more plausible for use in resource-rich countries. An application to the case of natural gas is then discussed using data obtained from Monte Carlo simulations of a calibrated empirical model. Lastly, the proposed framework is put to work to evaluate the performances of the diversification strategies implemented in a set of nine gas-rich economies. These results are then used to formulate some policy recommendations

Financial integration, specialization and systemic risk

This paper studies the implications of cross-border financial integration for financial stability when banks' loan portfolios adjust endogenously. Banks can be subject to sectoral and aggregate domestic shocks. After integration they can share these risks in a complete interbank market. When banks have a comparative advantage in providing credit to certain industries, they will exploit the enhanced risk sharing opportunities through more specialization in lending. The enhanced concentration in lending does not increase risk, because a well-functioning interbank market allows to achieve the necessary diversification. The greater need for risk sharing through it increases, however, the risk of cross-border contagion. Better risk sharing and greater risk of contagion tend to offset each other and financial integration improves welfare since specialization benefits are realized. --Financial integration,specialization,interbank market,financial contagion

Outsourcing, Supplier Relations, and the External Span of Control

The outsourcing and supplier relations literature focuses primarily on initial designs while ignoring how superior implementation skills can drive competitive advantage. The concept of external span of control, defined as a firm’s overall capability to manage multiple and varying relations with outside suppliers, is put forward to capture implementation differences. Its antecedents are described and strategies are provided for improving it involving growth, alignment, internal development, and inter-firm learning.

Venture mania in Europe: Its causes and consequences

Over the course of the past twenty years, venture capital has fuelled an entrepreneurial revolution - first in the United States and now in Europe's common market -, which has opened new opportunities for technological innovation, capital investment and employment growth. Some of the most promising opportunities are in science-based industries, like software and biotechnology, which are often seen as driving the transformation to an increasingly knowledge- based economy. Indeed, this transformation would hardly be conceivable without the innovative contributions of business start-ups that rely on venture capital to finance their early stages of growth. So what, if anything, should governments do to support venture capital and help this transformation along? This paper will argue that governments must understand that venture capital is necessarily linked to specialization and therefore cannot be expected to play the same role in any two economies whose place, and contribution, within the international division of labour differ. --

Intra-organizational integration and innovation: organizational structure, environmental contingency and R&D performance

It is widely thought that intra-firm integration has a positive effect on organizational performance, especially in environments characterized by complex and uncertain information. However, counter arguments suggest that integration may limit flexibility and thereby reduce performance in the face of uncertainty. Research and development activities of a firm are especially likely to face complex and uncertain information environments. Following prior work in contingency theory, this paper analyzes the effects of intra-organizational integration on manufacturing firms’ innovative performance. Based on a survey of R&D units in US manufacturing firms and patent data from the NBER patent database, we examine the relation between mechanisms for linking R&D to other units of the firm and the relative innovativeness of the firm. Furthermore, we argue that the impact of integration may vary by the importance of secrecy in protecting firms’ innovation advantages. We find that intra-firm integration is associated with higher self-reported innovativeness and more patents. We also find some evidence that this effect is moderated by the appropriability regime the firm faces, with the benefits of cross-functional integration being weaker in industries where secrecy is especially important. These results both support and develop the contingency model of organizational performance.Innovation; Organizations; Contingency theory;

Considerations regarding tax optimization in implanted multinational enterprises through external growth for the automobile industry in Central Eastern Europe

The business strategy of multinational enterprises (MNEs) from the automobile industry implanted in Central-Eastern European (CEE) countries (Poland, Czech Republic and Romania) is an offensive one, global from operational perspective. Mainly it aims the extension of market share through horizontal growth, generally external type single-domain (Mergers and Acquisitions) and internal type (Greenfield investments) in a lower degree. These enterprises put in practice also a defending strategy for the owned market shares through increasing the efficiency of the production network at global level. This paper aims to present the less evident aspects of tax optimization of the applied business strategy by implemented MNEs in the automobile industry in CEE, and in this context, the necessity to establish transfer prices in accordance with the OECD recommendations, as an obligation assessed by the tax legislations of the considered countries, but also from the necessity of efficient run of these enterprises.multinational enterprises, external growth, transfer price, tax optimization