Networks and trade

Trade occurs between firms both across borders and within countries, and the vast majority of trade transactions includes at least one large firm with many trading partners. This paper reviews the literature on firm-to-firm connections in trade. A growing body of evidence coming from domestic and international transaction data has established empirical regularities which have inspired the development of new theories emphasizing firm heterogeneity among both buyers and suppliers in production networks. Theoretical work has considered both static and dynamic matching environments in a framework of many-to-many matching. The literature on trade and production networks is at an early stage, and there are a large number of unanswered empirical and theoretical questions

Production networks, geography and firm performance

This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down the firm’s marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms’ buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, consistent with the model

Two-sided heterogeneity and trade

This paper develops a multi-country model of international trade that provides a simple microfoundation for buyer-seller relationships in trade. We explore a rich dataset that identifies buyers and sellers in trade and establish a set of basic facts that guide the development of the theoretical model. We use predictions of the model to examine the role of buyer heterogeneity in a market for firm-level adjustments to trade shocks, as well as to quantitatively evaluate how firms’ marginal costs depend on access to suppliers in foreign markets

The origins of firm heterogeneity: A production network approach. National Bank of Belgium, Working Paper No. 362

This paper quantifies the origins of firm size heterogeneity when firms are interconnected in a production network. Using the universe of buyer-supplier relationships in Belgium, the paper develops a set of stylized facts that motivate a model in which firms buy inputs from upstream suppliers and sell to downstream buyers and final demand. Larger firm size can come from high production capability, more or better buyers and suppliers, and/or better matches between buyers and suppliers. Downstream factors explain the vast majority of firm size heterogeneity. Firms with higher production capability have greater market shares among their customers, but also higher input costs and fewer customers. As a result, high production capability firms have lower sales unconditionally and higher sales conditional on their input prices. Counterfactual analysis suggests that the production network accounts for more than half of firm size dispersion. Taken together, our results suggest that multiple firm attributes underpin their success or failure, and that models with only one source of firm heterogeneity fail to capture the majority of firm size dispersion

Agency, stewardship and the universal-family firm : a qualitative historical analysis

This paper introduces the idea of a non-kinship-based Universal-family firm, an organizational form we developed based on interpreting historical writings in their socio-economic context. We analyzed Luke’s gospel with an eye toward drawing implications for the stewardship-agency debate in the contemporary family business literature. Our paper makes contributions at two important levels. In addition to introducing and developing theory about the Universal-family firms, we also contribute to the methodological toolkit of family business scholars by providing a template for using historical documents to challenge, enhance and develop theory

Decision making and risk management in adventure sports coaching

Adventure sport coaches practice in environments that are dynamic and high in risk, both perceived and actual. The inherent risks associated with these activities, individuals’ responses and the optimal exploitation of both combine to make the processes of risk management more complex and hazardous than the traditional sports where risk management is focused almost exclusively on minimization. Pivotal to this process is the adventure sports coaches’ ability to make effective judgments regarding levels of risk, potential benefits and possible consequences. The exact nature of this decision making process should form the basis of coaching practice and coach education in this complex and dynamic field. This positional paper examines decision making by the adventure sports coach in these complex, challenging environments and seeks to stimulate debate whilst offering a basis for future research into this topic

On reminder effects, drop-outs and dominance: evidence from an online experiment on charitable giving

We present the results of an experiment that (a) shows the usefulness of screening out drop-outs and (b) tests whether different methods of payment and reminder intervals affect charitable giving. Following a lab session, participants could make online donations to charity for a total duration of three months. Our procedure justifying the exclusion of drop-outs consists in requiring participants to collect payments in person flexibly and as known in advance and as highlighted to them later. Our interpretation is that participants who failed to collect their positive payments under these circumstances are likely not to satisfy dominance. If we restrict the sample to subjects who did not drop out, but not otherwise, reminders significantly increase the overall amount of charitable giving. We also find that weekly reminders are no more effective than monthly reminders in increasing charitable giving, and that, in our three months duration experiment, standing orders do not increase giving relative to one-off donations

Sticky stories from the classroom: from reflection to diffraction in early childhood teacher education

This article aims to challenge the prominence of reflexivity as a strategy for early childhood teachers to adopt by taking Norwegian early childhood teacher education as its focus. Observed micro-moments from a university classroom generate multilayered, multi-sensorial entangled narratives that address what reflection and diffraction are and what they do – where students, the educator, materiality, space and affects intra-act. Furthermore, the article explores the ways in which teacher educators and students in early childhood teacher education become-with the classroom and materiality, and, in doing so, ideas about professionalism in early childhood education are opened out. By identifying the limitations of reflection, the authors go on to explore what working with diffraction might offer to reach alternative understandings. By placing a focus on seemingly unremarkable and routine events in the life of an early childhood teacher education classroom, the authors offer other, potentially more generative ways to think about student teachers and their further professional practice in kindergartens