Application of thermodynamics to driven systems

Application of thermodynamics to driven systems is discussed. As particular examples, simple traffic flow models are considered. On a microscopic level, traffic flow is described by Bando's optimal velocity model in terms of accelerating and decelerating forces. It allows to introduce kinetic, potential, as well as total energy, which is the internal energy of the car system in view of thermodynamics. The latter is not conserved, although it has certain value in any of two possible stationary states corresponding either to fixed point or to limit cycle in the space of headways and velocities. On a mesoscopic level of description, the size n of car cluster is considered as a stochastic variable in master equation. Here n=0 corresponds to the fixed-point solution of the microscopic model, whereas the limit cycle is represented by coexistence of a car cluster with n>0 and free flow phase. The detailed balance holds in a stationary state just like in equilibrium liquid-gas system. It allows to define free energy of the car system and chemical potentials of the coexisting phases, as well as a relaxation to a local or global free energy minimum. In this sense the behaviour of traffic flow can be described by equilibrium thermodynamics. We find, however, that the chemical potential of the cluster phase of traffic flow depends on an outer parameter - the density of cars in the free-flow phase. It allows to distinguish between the traffic flow as a driven system and purely equilibrium systems.Comment: 9 pages, 6 figures. Eur. Phys. J. B (2007) to be publishe

How do digital information good characteristics influence pace and modalities of international market entry?

The paper develops theory to propose how considering digital information good characteristics modify and extends existing explanations with regard to entry mode choices (in single markets) and internationalization paths (across countries). Explanations offered relate to network and lock-in effects, complementary infrastructure investments, branding, and customer learning – factors that are particular important for understanding international market entry of digital information good providers.MNCs; entry mode; learning; digital information goods

Does knowledge sharing pay? A multinational subsidiary perspective on knowledge outflows

Empirical studies on the impact of knowledge management on the performance of MNC subsidiaries remain elusive to date. This study examines the effect of knowledge management tools on absorptive capacity and firm performance with unique data from subsidiary units in a large German MNC – HeidelbergCement. The findings suggest that knowledge management tools unfold their performance impact through their significant influence on absorptive capacity and knowledge inflows. The key contributions to the current literature on knowledge flows in the MNC include an empirically corroborated link between deployments of knowledge management tools and their impact on the subsidiary employee’s ability and motivation to learn from internal knowledge flows in the MNC as well as their impact on subsidiary business performance

How to solve Fokker-Planck equation treating mixed eigenvalue spectrum?

An analogy of the Fokker-Planck equation (FPE) with the Schr\"odinger equation allows us to use quantum mechanics technique to find the analytical solution of the FPE in a number of cases. However, previous studies have been limited to the Schr\"odinger potential with a discrete eigenvalue spectrum. Here, we will show how this approach can be also applied to a mixed eigenvalue spectrum with bounded and free states. We solve the FPE with boundaries located at x=\pm L/2 and take the limit L\rightarrow\infty, considering the examples with constant Schr\"{o}dinger potential and with P\"{o}schl-Teller potential. An oversimplified approach was proposed earlier by M.T. Araujo and E. Drigo Filho. A detailed investigation of the two examples shows that the correct solution, obtained in this paper, is consistent with the expected Fokker-Planck dynamics.Comment: 13 pages, 5 figure

Global Strategy and the Acquisition of Local Knowledge How MNCs Enter Regional Knowledge Clusters

The paper addresses two recent interrelated phenomena: High- tech regional knowledge clusters, and globalization of R&D activities by multinational corporations (MNCs). Combining MNC literature; regional development literature; and literature on social networks, the paper discusses determinants of entry modes used by MNCs that localize R&D units in regional knowledge clusters. The paper states that the entry mode used by a MNC depends upon the type of agglomeration economies the latter seeks to appropriate: Those related to network relations; to local labor market specialization; or to institutional specialization. The paper adds theoretical insight into advantages and disadvantages of different entry modes with respect to appropriation of agglomeration economies, and special attention is dedicated to discussing acquisition. Through the use of an empirical case ¾ the entry of five MNCs into the Danish telecommunications cluster in Aalborg, the paper exemplifies its theoretical observations, but also points to how the evolution of a knowledge cluster may be severely affected by MNCs that enter through acquisition.MNCs; entry mode; acquisition; explorative R&D; regional clusters; localized learning; networks; telecommunications industry; North Jutland; Denmark.

Strategy Research and the Market Process Perspective

We argue that strategizing fundamentally concerns disequilibrium phenomena, such as discovery, innovation, resource-combination, imagination - in short, entrepreneurship. Therefore, the understanding of strategizing is likely to be led astray by drawing too heavily on equilibrium theories. Arguably, the three dominant economic approaches to strategy - the Porter industry analysis approach, the new industrial organization, and the ressourcebased approach - are characterized precisely by their strong reliance on equilibrium methodology. We argue that the market process approach in its Austrian version offers much inspiration for bringing process issues to bear on strategy issues.Strategy, organization, competitive advantage.