Effects of mergers and acquisitions on the economy: an industrial organization perspective

Consolidation and merger of corporations ; Industries

The effects of entry on incumbent innovation and productivity

How does firm entry affect innovation incentives in incumbent firms? Microdata suggest that there is heterogeneity across industries. Specifically, incumbent productivity growth and patenting is positively correlated with lagged greenfield foreign firm entry in technologically advanced industries, but not in laggard industries. In this paper we provide evidence that these correlations arise from a causal effect predicted by Schumpeterian growth theory—the threat of technologically advanced entry spurs innovation incentives in sectors close to the technology frontier, where successful innovation allows incumbents to survive the threat, but discourages innovation in laggard sectors, where the threat reduces incumbents' expected rents from innovating. We find that the empirical patterns hold using rich micro panel data for the United Kingdom. We control for the endogeneity of entry by exploiting major European and U.K. policy reforms, and allow for endogeneity of additional factors. We complement the analysis for foreign entry with evidence for domestic entry and entry through imports

Psychic distance : antecedents, retail strategy implications and performance outcomes

The authors propose a conceptual model of the psychic distance&ndash;organizational performance relationship that incorporates organizational factors (international experience and centralization of decision making), entry strategy, and retail strategy implications. The findings suggest that when entering psychically distant markets, retailers should adopt low-cost/low-control entry strategies and adapt their retail strategy to a greater extent than in psychically close markets. However, the authors find that such strategic responses have an adverse effect on performance. They find that international experience, psychic distance, entry strategy, and retail strategy adaptation are significant drivers of organizational performance and factors that determine critical success in international retailing.<br /

On quantum coding for ensembles of mixed states

We consider the problem of optimal asymptotically faithful compression for ensembles of mixed quantum states. Although the optimal rate is unknown, we prove upper and lower bounds and describe a series of illustrative examples of compression of mixed states. We also discuss a classical analogue of the problem.Comment: 23 pages, LaTe

Spillovers from Multinationals in Developing Countries: the Mechanisms at Work

Most research suggests that spillovers commonly benefit the productivity of LDCs' local firms from market contacts with foreign subsidiaries, but little attention has gone to where those spillovers might be large, where nonexistent. In Particular, LDC local firms can be constrained away from frontier effectiveness in at least four ways. Each constraint has different implications for the nature and extent of spillovers from foreign subsidiaries. The analysis also yields predictions how spillovers will vary with differences in the situations of subsidiaries and local competitors, and with elements of the structures of industries in which they operate. Limited empirical evidence supports the predictions and the general approach to refining our expectations about the prevalence and nature of spillovers.http://deepblue.lib.umich.edu/bitstream/2027.42/39633/3/wp247.pd

Spillovers from Multinationals in Developing Countries: the Mechanisms at Work

Most research suggests that spillovers commonly benefit the productivity of LDCs' local firms from market contacts with foreign subsidiaries, but little attention has gone to where those spillovers might be large, where nonexistent. In Particular, LDC local firms can be constrained away from frontier effectiveness in at least four ways. Each constraint has different implications for the nature and extent of spillovers from foreign subsidiaries. The analysis also yields predictions how spillovers will vary with differences in the situations of subsidiaries and local competitors, and with elements of the structures of industries in which they operate. Limited empirical evidence supports the predictions and the general approach to refining our expectations about the prevalence and nature of spillovers.multinational enterprise, spillovers, managerial capability, community based standards