Competitiveness, productivity and externalization: Food versus autos in Catalonia

This paper re-examines the innovation-productivity nexus on the basis of a paired comparison between Catalonia's food and auto sectors. The sectoral studies expose a set of productivity enhancement mechanisms that do not involve innovation in the sense of anything new to the world, that are grouped under the rubric of renovation and comprise: - Reaching efficient scale - Rectifying (other) obvious internal deficiencies - Replicating or imitating innovations, techniques, etc., developed by others - Replacement of inefficient incumbents by more efficient entrants - Redeployment of resources across sectors The paper also discusses the implications of this broader perspective for industrial policy, and for internationalization.Productivity; Innovation; Industrial Policy; Internationalization; Globalization; Strategy;

Organizational tension between static and dynamic efficiency, The

Efficiency has been defined in at least two different ways: in terms of the refinement of existing products, processes or capabilities (static efficiency) or the development of new ones (dynamic efficiency). This paper analyzes the organizational trade-off between these two forms of efficiency. It shows that there is a tendency towards extremes, and that the irreversibility of efficiency orientations tends to tip the balance to be struck between static and dynamic efficiency toward the latter. The paper also advances hypotheses about the industry, business and corporate factors that mediate between the choice of a particular efficiency orientation and organizational performance.organizational trade-off; efficiency;

Dynamic mixed duopoly: A model motivated by Linux vs. Windows

This paper analyzes a dynamic mixed duopoly in which a profit-maximizing competitor interacts with a competitor that prices at zero (or marginal cost), with the cumulation of output affecting their relative positions over time. The modeling effort is motivated by interactions between Linux, an open-source operating system, and Microsoft's Windows in the computer server segment, and consequently emphasizes demand-side learning effects that generate dynamic scale economies (or network externalities). Analytical characterizations of the equilibrium under such conditions are offered, and some comparative static and welfare effects are examined.open-source software; network effects; microsoft; linux; competitive dynamics; strategy;

Rethinking regional competitiveness: Catalonia's international and interregional trade, 1995-2006

Studies of competitiveness tend to focus on a local economy's global interactions, particularly its international trade. But for countries that are at least mid-sized (such as Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia illustrates the importance of interregional flows in truly analyzing and devising strategies for a region's external competitiveness. Accounting for interregional trade changes and performing analyses of Catalonia's overall merchandise trade balance, which sectors generate external surpluses as opposed to deficits, and who Catalonia's key trading partners are, and the use of a gravity-model approach to estimate external border effects at the regional level for Catalonia and the rest of Spain, reveal significant variations by sector and by trading partner, generally higher external border effects for exports than imports, and declines in border effects over time - but with a discernible flattening in recent years.Border Effect; Gravity Model; Interregional trade; transport flows;

Choice Interactions and Business Strategy

Choice settings are strategic to the extent that they entail cross-sectional or intertemporal linkages. These same factors may impose daunting demands on decision makers. We develop a graph-theoretic generalization of the NK model of fitness landscapes to model the way in which policy choices may be more or less strategic. We use this structure to examine, through simulation, how fully articulated a strategy or set of policy choices must be to achieve a high level of performance and how feasible it is to offset past strategic mistakes through tactical adjustments (instead of alignment). Our analysis highlights the role of asymmetry in the interaction of strategic choices and in particular the degree to which choices vary in terms of being influential, dependent, or autonomous from other choices

Competitiveness and interregional as well as international trade: The case of Catalonia

Recent years have seen a surge of interest among industrial organization economists in using data on international trade flows as windows into competitiveness. For countries that are at least mid sized (e g., Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia, a Spanish region, illustrates how ignoring interregional flows can lead to erroneous inferences about a region's external competitiveness. Accounting for Catalonia's interregional as well as international flows shifts what is generally assessed to be a chronic trade deficit in goods into a surplus and changes diagnoses of which Catalan sectors generate external surpluses and who its key trading partners are. We also use a gravity model approach to estimate international border effects for Catalonia.Requena acknowledges financial support from the Spanish Ministry of Science and Innovation (project number ECO 2008 04059/ECON). Llano acknowledges financial support from the Education Department of the Regional Government of Madrid (project TransporTrade S2007/ HUM/49

New frontiers in international strategy

This paper is based on a panel we organized at the "First Annual Conference on Emerging Research Frontiers in International Business Studies", organized by the Journal of International Business Studies (JIBS), to discuss several new lines of research in international strategy. Four lines of research are developed: The strategic implications of semiglobalization, the impact of institutional voids in international strategy, primitives and levels of analysis in international business, and strategies for the base of the pyramid. Taken together, these studies aim to open a new frontier in our understanding of International Strategy, based on the co-location of firms as places and a key element in international business.international business; semiglobalization; internal strategy; base pyramid; institutions; competitiveness;

Indirect learning: how emerging-market firms grow in developed markets

Some emerging-market firms have recently achieved substantial growth in developed markets despite having had little prior experience in these markets. What explains the performance of these firms? Building on the organizational learning literature, the authors argue that indirect learning (i.e., learning from the experience of others) plays a crucial role in explaining this phenomenon. Specifically, they propose that emerging-market firms that grow in developed markets overcome their lack of direct experience in such markets by learning indirectly through their leaders, competitors, and interfirm networks. The authors test their thesis by comparing the international growth in developed markets of a sample of emerging-market firms (116 Indian firms) with a sample of developed-market firms (160 U.K. firms). The results support the authors' thesis about the importance of indirect learning in explaining the international growth of emerging-market (relative to developed-market) firms in developed markets. The authors discuss the implications of these findings for policy makers in the areas of higher education, competition policy, and international trade as well as for managers in the areas of middle-management recruitment, competitor analysis and tracking, and managing interfirm networks

Planned Marketing Adaptation and Multinationals' Choices Between Acquisitions and Greenfields

International marketing studies have extensively examined the antecedents of firms' marketing standardization/ adaptation decisions. However, it is unclear whether such decisions, once planned, codetermine the choice between buying and building foreign subsidiaries. Analyzing a sample of 150 foreign entries by Dutch firms, the authors find that the level of marketing adaptation planned for a wholly owned subsidiary is positively related to the likelihood that the subsidiary will be established through an acquisition rather than through a greenfield investment. Moreover, the authors find substantial evidence that this positive relationship is stronger for firms that (1) are establishing relatively larger subsidiaries, (2) have less experience with the industry entered, or (3) are entering less developed countries. The findings show that firms pursuing higher levels of marketing adaptation assign more value to the marketing adaptation advantages of acquisitions over greenfields, especially if the risks associated with implementing the planned adaptation level are high. In addition, firms typically strive for a fit between their international marketing strategy and their mode of foreign establishment. (authors' abstract