Intra-industry trade and labor costs: The smooth adjustment hypothesis

We study a situation in which, owing to the exhaustion of non-renewable energy sources, conventional motor vehicles will turn out of use. We consider two scenarios: recycling or dismantling these motor vehicles. M|G|∞ queue system is used to study the process. Through it, we conclude that if the rate of dismantling and recycling of motor vehicles is greater than the rate at which they become idle, the system will tend to get balanced. The model allows also performing a brief study about the recycling or dismantling economic interest.

Open and closed industry clusters: The social structure of innovation

In this paper we discuss knowledge and innovation in clusters and the benefits of clustering from a knowledge-based perspective. Knowledge-based resources and innovations are important sources of competitive advantage for firms. Aware of the importance of continuously seeking new knowledge firms increasingly seek knowledge-rich locations such as specific industry clusters across the world. These are locations characterized by the concentration of firms operating in related and supporting activities, a specialized work force and a specialized institutional environment that nurtures the industry. However, it is not likely that these clusters are always locations from which the firms will be able to draw the intended knowledge benefits. The social structure of the relationships between individuals and firms determines the extent to which knowledge will be created, will flow between co-located firms and bounds the knowledge benefits the firms may capture. We finish with a discussion of the need of further examination of the network dynamics involved in an industry cluster to obtain a clearer identification of the actual positive externalities that may accrue to co-locating firms.Strategy; Industry clusters; Innovation

Make or Buy in a mature industry? Models of client-supplier relationships under TCT and RBV perspectives

In this paper, we use the transaction cost theory (TCT) and the resource-based view (RBV) to discuss three propositions on the models of client-supplier relationships in mature industries. The two theories seem to advance different organizational forms of the client-supplier relationships, and in some instances contradictory. How should firms organize to prosper and grow, namely in the international markets? Through the case study of three Portuguese packaging firms, with primary (interviews) and secondary data, we discuss how the three firms deploy three distinct strategic organization models in a mature industry. One firm utilizes market-based governance mechanisms, and concentrates its production in a few selected locations. Another firm vertically integrates almost the entire value chain of the product to provide full service to its clients. The third firm operates in a model of integrated outsourcing, with the installation "wall to wall" to its clients. The models client-supplier assumed by these firms are based on efficient, stable, and trustworthy relationships, that permit the focus on their core competences and the reduction of the transaction costs. Firms? superior performance requires a proper alignment of hierarchical and relational governance taking in consideration the dimensions of the transactions.Client-supplier relationship models; Outsourcing; TCT; RBV; Strategic Governance

The impact of strategic resource seeking and market seeking strategies on foreign entry modes under institutional pressures

Multinational corporations (MNCs) are subject to the various dimensions of the external institutional environments where they operate. Institutional theory suggests that MNCs need to conform to the prevailing rules, norms and procedures of the locations where they operate in order to survive and grow. This means that MNCs need to develop the best possible configuration of strategy-structure for their worldwide operations. Previous research has noted that in these conditions firms may simply seek to follow a referent other. However, MNCs? specific strategy for a focal foreign operation is likely to determine the entry mode for each host country. That is, in certain circumstances it may be whether MNCs are pursuing a market-seeking strategy or a strategic resource seeking strategy that shapes the entry mode in face of the prevailing institutional pressures. We contribute to the understanding of entry modes into foreign markets as a reflection of a strategic choice that is bound by institutional constraints.strategic resource seeking, market seeking, institutional environment, foreign entry modes

Firm Characteristics and Country Institutional Development: Business Relationships with Foreign Firms in Transition Economies

The composition of firms' foreign business networks has been attended to in recent research but has seldom been subjected to empirical study in transition economies. In this study, we test hypotheses related to the composition of firms' foreign business relationships. First, we suggest that firms' characteristics matter for building a network of ties the foreign agents. Then, we consider the moderating effect of the degree of institutional development of the home country to assess to extent to which firms' foreign business relationships in transition economies are affected by the institutional development. We conduct a set of logistic regressions and one OLS regression to investigate the composition of firms' business relationships using firm-level data from 24 transition economies. The results indicate that firm size and membership in trade associations are good predictors of foreign business relationships ? specifically, relationships with foreign investors, customers, and suppliers - and also of the diversity of foreign relationships. The country's institutional development radically changes which firms' characteristics matter in forming business relationships.transition economies, foreign relationships, types of ties, institutional development

Cytokine expression in allergic inflammation: systematic review of in vivo challenge studies.

BACKGROUND: Allergic inflammatory responses are driven by cells of the immune system that rely on cytokines to regulate the activity of other immune and structural cells. OBJECTIVE: To review published studies to (1) identify cytokines consistently increased after allergen challenge in atopic patients and (2) investigate temporal variation in cytokine expression. METHODS: A PUBMED systematic search was used to extract data from studies involving analysis of cytokine expression in fluids or biopsies following in vivo allergen challenge in atopic patients. RESULTS: Data were extracted from 82 studies. There were no consistent reports of cytokine protein increase in fluids of patients at 0-1 h after challenge. At 4-12 h, the chemokines eotaxin, macrophage inflammatory protein-1alpha, RANTES (regulated on activation normal T cell expressed and secreted) and interleukin (IL)-8 have all been consistently reported to be up-regulated. At 18-24 h after challenge, the lymphokines IL-4, IL-5 and IL-13, as well as the pro-inflammatory cytokines granulocyte-macrophage colony-stimulating factor, tumour necrosis factor-alpha and IL-6 are consistently increased when compared with the respective control value. There were no reports of up-regulation in interferon-gamma protein and mRNA and in IL-2 mRNA. CONCLUSION: The expression of granulocyte-macrophage colony-stimulating factor is consistently increased in tissues at 4-12 h after challenge. The influence of this cytokine on antigen capture and presentation by dendritic cells should be further investigated. Additionally, allergen challenge studies are needed that investigate the expression of macrophage-derived chemokine and thymus-regulated and activation-regulated chemokine in tissues of atopic patients. Blocking the effects of these lymphocyte-specific chemokines might provide new therapeutic approaches for the control of allergic inflammation

Composition of small and large firms? business networks in transition economies

Recent research has theorized on the composition of firms' business networks but has not empirically examined business networks in transition economies may vary for different firms. In this study, using firm level data from twenty six transition economies collected by the World Bank and the EBRD in 1999-2000, we conduct a set of logistic regression models to investigate the composition of small and large firms' business networks. The results show that, in contrast to smaller firms, larger firms are more likely to have formal business relationships, and relationships with national and foreign financial institutions, government, and foreign firms. In addition, in a subgroup analysis of seven transition economies we show that the composition of the firms' business networks varies substantially across countries but that the government is still a dominant client. Furthermore, we found a large variation on firms' reliance on informal ties and the extent to which firms exchange with foreign firms.business relationships, multi-country, transition economies, institutional environment