On the significance of economic structure and regional innovation systems for the foundation of knowledge-intensive business services

The shift to new forms of knowledge creation reflects a remarkable increase in the number of knowledge-intensive business service firms (KIBS). KIBS are believed to be one of the main drivers of technological change and economic progress and can be described as users, carriers and sources of innovation (Miles et al. 1995). In addi-tion to macroeconomic implications, newly founded KIBS are considered to play an important role within regional production and innovation systems. As firm founders in early stages of their firms development mostly draw on regional resources and as KIBS acquire knowledge in the course of the interactive process that takes place when the service is provided, an intense interdependency between the regional economic, technological and institutional set-up and newly founded KIBS can be supposed. Within these processes of inter-relationship, proximity between the different actors of the particular innovation and production system clearly matters.However, as entrepreneurship research has hardly ever investigated KIBS and re-search into the role of KIBS in processes of regional change has just begun, this con-tribution analyses the inter-relationships between KIBS foundations and actors within the respective innovation and production system. In a qualitative and conceptual way, in-depth studies of three German metropolitan regions with regard to the foundation of KIBS will be outlined. The results indicate that the necessity to adapt regional structures goes hand in hand with an exploitation of regional knowledge and the crea-tion of bridging institutions in the shape of KIBS foundations. --

Understanding smart contracts as a new option in transaction cost economics

Among different concepts associated with the term blockchain, smart contracts have been a prominent one, especially popularized by the Ethereum platform. In this study, we unpack this concept within the framework of Transaction Cost Economics (TCE). This institutional economics theory emphasizes the role of distinctive (private and public) contract law regimes in shaping firm boundaries. We propose that widespread adoption of the smart contract concept creates a new option in public contracting, which may give rise to a smart-contract-augmented contract law regime. We discuss tradeoffs involved in the attractiveness of the smart contract concept for firms and the resulting potential for change in firm boundaries. Based on our new conceptualization, we discuss potential roles the three branches of government – judicial, executive, and legislative – in enabling and using this new contract law regime. We conclude the paper by pointing out limitations of the TCE perspective and suggesting future research directions

The impact of trade in services on factor incomes : results from a global simulation Model

Indian gross domestic product per capita increased rapidly between 2001 and 2006 in a climate of increasing services trade, with the export-oriented services sector responsible for rising shares of growth in gross domestic product. Due to its contribution to aggregate economic growth, there is a great need for empirical examination of the distributional consequences of this growth, especially in light of the challenges in obtaining theoretical solutions that can be generalized. This paper fills this gap in the literature by using a global simulation model to examine how sensitive factor incomes across different industries may have been to the historical changes in India's services exports and imports, and provides insight on the distribution of the national income growth attributable to the expansion of the services industry. Rent on capital in the service sector and wages of all workers would have increased as a result of greater services trade in this period, while income from capital specific to agriculture and manufacturing would have declined. The factors involved with the urban-based services sector may thus benefit from the services trade growth, while the total factor income involved in rural agriculture may decline.Economic Theory&Research,Labor Policies,Trade Policy,ICT Policy and Strategies,Emerging Markets

Cultural capital of IT developers in Ukraine: exploratory case study

Article focuses on the analysis of approaches to studying cultural capital of IT developers. Exploratory case study refers to the IT developers’ activity and focuses the cultural capital (CC) of the Ukrainian IT sector. Theoretical foundation of the study is based on the cultural capital theory referring to the value of social relations and networks. Research results demonstrate that Ukrainian IT developers accumulate CC through education: individual, in family, at school and with peers. Cultural capital could be transformed into other forms of capital: economic and social ones

Socio-technical transitions towards environmental sustainability through green ICT

We adopt the broad conceptualisation of Green Information Communication Technology (ICT) used by the Organisation for Economic Cooperation and Development (OECD), incorporating perspectives on Information Technology (IT) and Information Systems (IS) which has currency with both business practitioners and policy makers. The objective of our research is to develop a theory of the institutional mechanisms that underpin socio-technical transitions to environmental sustainability through the direct, indirect and systematic effects of Green ICT in and across organisational fields. We construct our theory by drawing on published research in several disciplines focusing on the organisational field of the ICT industry. We present a mechanism-based theoretical model that explains how institutional change in organisational fields can evoke appropriate socio-technical transitions and organisational responses to Green ICT. Systems researchers agree that Green ICT can help lower GHG emissions directly, through energy efficiencies and indirectly by enabling environmentally sustainable business processes. If this research is to be of theoretical or practical relevance it must recognize that government organizations and business enterprises may not adopt policies and strategies on Green ICT because it is rational or moral to do so rather, a web of social, and institutional mechanisms interact to produce the outcomes observed in practice

Mission-Market Tension in Managing Nonprofit Organizations

Private not-for-profit organizations combine characteristics of a public sector agency with those of a private, proprietary firm. In particular, nonprofits are required to address designated social missions while breaking even financially. This structure underlies the difficulty that nonprofit organizations face in making decisions with important resource implications. Specifically, choices that would achieve maximal mission impact may differ from choices that reward the organization in purely financial terms. As result, nonprofit managers face a variety of trade-offs between mission responsive and financially rewarding actions. This paper considers some of these tradeoffs by exploring how tensions between mission and market manifest themselves in a variety of nonprofit decision making applications. The analysis is based on a set of task forces assembled by the National Center on Nonprofit Enterprise in eight areas of nonprofit decision making. The paper suggests the development of metrics to reconcile mission goals with market incentives and research on appropriate nonprofit practices in areas such as pricing, employee compensation, outsourcing, collaboration, investment, fund raising and the undertaking of commercial ventures. Working Paper 06-2

The significance of logistics in servicing growing volumes of e-commerce

Purpose: The article highlights the multi-task nature and prospects of the development of the transit potential of warehouse logistics systems, reveals the theoretical and methodological foundations of logistics in the storage and cargo handling system, indicates and confirms the importance of warehousing logistics in the context of servicing the growing volumes of electronic commerce. Design/Methodology/Approach: For the purposes of developing logistics in the storage and cargo handling system we study the technical and technological support and design developments that have significant potential for increasing the efficiency of logistics processes, and to study consumer behavior in the warehouse services market and transport market trends - warehouse activities. Findings: Automation significantly simplifies logistics processes, information exchange, remote control and management, optimizes costs by combining various market entities and objects, target groups and parameters of logistics processes on electronic platforms. Integration in modern logistics allows synchronizing the complex information component of electronic services and platforms and activating the formation of a system interface that is common for all elements of the logistics system of warehousing, cargo processing and inventory management. Practical implications: The results of the study can be implemented in the activities of Russian companies in order to develop the transit potential of warehouse logistics systems. Originality/value: The significance of this study lies in shifting the emphasis to the need to switch to improved customer service systems taking into account the needs and development of online retail and fulfillment of logistics operators (full-cycle operator: taking goods from the customer’s warehouse, responsible storage, packaging, delivery, work with returns), tied to the development of infrastructure, as the foundation for increasing the efficiency, speed and quality of logistics processes.peer-reviewe

The Knowledge Application and Utilization Framework Applied to Defense COTS: A Research Synthesis for Outsourced Innovation

Purpose -- Militaries of developing nations face increasing budget pressures, high operations tempo, a blitzing pace of technology, and adversaries that often meet or beat government capabilities using commercial off-the-shelf (COTS) technologies. The adoption of COTS products into defense acquisitions has been offered to help meet these challenges by essentially outsourcing new product development and innovation. This research summarizes extant research to develop a framework for managing the innovative and knowledge flows. Design/Methodology/Approach – A literature review of 62 sources was conducted with the objectives of identifying antecedents (barriers and facilitators) and consequences of COTS adoption. Findings – The DoD COTS literature predominantly consists of industry case studies, and there’s a strong need for further academically rigorous study. Extant rigorous research implicates the importance of the role of knowledge management to government innovative thinking that relies heavily on commercial suppliers. Research Limitations/Implications – Extant academically rigorous studies tend to depend on measures derived from work in information systems research, relying on user satisfaction as the outcome. Our findings indicate that user satisfaction has no relationship to COTS success; technically complex governmental purchases may be too distant from users or may have socio-economic goals that supersede user satisfaction. The knowledge acquisition and utilization framework worked well to explain the innovative process in COTS. Practical Implications – Where past research in the commercial context found technological knowledge to outweigh market knowledge in terms of importance, our research found the opposite. Managers either in government or marketing to government should be aware of the importance of market knowledge for defense COTS innovation, especially for commercial companies that work as system integrators. Originality/Value – From the literature emerged a framework of COTS product usage and a scale to measure COTS product appropriateness that should help to guide COTS product adoption decisions and to help manage COTS product implementations ex post

Clustering tales from the Greek construction sector: lessons from experience

The idea of increasing regional and national economic competitiveness through the implementation of cluster strategies is not something new. In each business sector, in each country, the creation of clusters has been used to capitalise on sector characteristics and address country specific productivity needs. While clusters have met with significant success in many context, the Greek context and in particularly the Greek Construction sector has not been so fruitful. This paper, through the development of a conceptual framework, questionnaires with 92 firms and interviews with 10 key firms, sought to investigate the critical success factors for the creation of a cluster within the challenging context of the Greek construction sector. Using evidence of good practicefrom other European countries facing similar challenges and the empirical data, the findings indicated a series of factors which firms could adopt, mitigate against or manage to help improve the potential success of the cluster. The findingstherefore have important implications for interventions not only by the state and local authorities that will encourage construction firms to participate in a cluster, but also by the managers/owners/practitioners for the creation of the required foundations for their participation in an environment where competitors cooperate