Business formation — a network approach

This article suggests that the key to entrepreneurial success is to be found in the ability to develop and maintain a personal network. In elaborating this proposition I regard the environment of the business venture as “enacted”. The inexperienced new entrepreneur needs support to create a personal network and to manage the enacted environment. The concept of the “organizing context”, defined as a clustered sociocentric network, is introduced to provide a tool with which the entrepreneur can deal more efficiently with the different subprocesses that create his or her reality. The approach supplies a framework within which various forms of entrepreneurship — indigenous, corporate, etc. — can be compared and analysed beyond their institutional differences. The interaction between various forms of entrepreneurship and organizing contexts is empirically illustrated from case studies.     

Learning curves—an axiomatic approach

A systematic mathematical analysis of learning curves is presented. It is shown that while a learning curve with learning factor k does necessarily satisfy the functional equation f(2x) = kf(x), this equation admits numerous other analytic, convex solutions as well so that it cannot be used to uniquely characterize learning curves. Rather, it is shown that a pair of functional equations f(rx) = kf(x) and f(sx) = jf(x) where rⁿ ≠ s^m for any positive integers n and m suffice to uniquely determine the learning curve; compatibility of the two equations requires that log_rk = log_sj or there will be no learning curve satisfying the pair of equations. Two classes of almost learning curves are generated and studied by means of suitable perturbation terms in the differential equation y = by/x of the true or standard learning curve and these curves are applied to describe data not exhibiting exact learning-curve behavior. Finally the concept of average marginal hours or cost is introduced and its behavior is found to also exhibit the learning-curve phenomenon except for an initial deviation.     

‘Green’ value chain practices in the furniture industry

This paper draws on the results of interviews with five environmental managers in the furniture industry to develop a taxonomy of environmentally-friendly (‘green’) best practices within the operations management value chain. This taxonomy is then extended to develop a group of propositions concerning the role of management in promoting environmentally-friendly practices. The results suggest that in order to be successful, environmental management strategies must be integrated into all stages of the value chain, which includes all of the processes spanning product design, procurement, manufacturing and assembly, packaging, logistics, and distribution. While the potential for environmental performance improvement in all five of the companies is evident, all of them demonstrated ‘pockets’ of environmentally-friendly practices (EFP) in different areas of their respective value chain functions. The propositions and results emerging from the analysis also suggests that reacting to regulations is no longer sufficient. World-class EFP must anticipate and pre-empt changing environmental regulations and customer expectations, and proactively prepare products, processes and infrastructure for these changes without sacrificing competitive advantage.     

From value chain to value network: a systematic literature review

Management Review Quarterly - Although over the years several contributions to the concept of the value chain have been provided, there is no systematic literature review focused on its evolution....     

Productive efficiency of English football teams—a data envelopment analysis approach

This paper investigates how close to their potential English Premier League Clubs play. Using a deterministic Data Envelopment Analysis Approach, the productive efficiency of 20 teams in the 2000/2001 season is measured and weaknesses of individual teams are disclosed. The sensitivity of results is analyzed with regard to different model specifications and variable combinations. Copyright © 2003 John Wiley & Sons, Ltd.     

Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach

The federal Empowerment Zone (EZ) program is a set of tax incentives targeted to areas of select cities. I estimate the effect of the EZ program on employment, poverty, and property values by comparing areas that received an EZ to areas that applied (and qualified), but were rejected. Because of endogeneity concerns, I use political representation to instrument for EZ designation. OLS results show a positive and statistically significant effect of the program on employment and poverty. IV estimates suggest the program had no effect on employment and poverty, and instead had a large statistically significant effect on property values.     

Structure of teams—A cooperative game theory approach

One key task for HR departments and managers is to design the structure of teams in the firm. Two main dimensions when carrying out this decision are the size of the teams and the combination of specialized expertise within the team. In this article, we apply cooperative game theory to model this decision. First, we introduce production games. These games are an enhancement of team games and allow the modeling of teams. Together with the coalition structure approach of cooperative game theory, we analyze two standard situations of team theory.     

Analyzing moviegoing demand: an individual‐level cross‐sectional approach

Previous work analyzing the demand for movie theater visits have had to rely entirely on highly aggregate time series data. Inevitably, this masks the significance of individual‐specific effects that place constraints on such trip making. Further, while there have been cross‐sectional revenue model estimates at the film‐level, there have not been, hitherto, any cross‐sectional studies of moviegoing by individuals. This study thus presents the first detailed microeconometric analysis of the factors that increase or lower the probability that an individual will go to a movie theater. Copyright © 2005 John Wiley & Sons, Ltd.     

Design and implementation in major investments — A project network approach

Many investments in modern society take place in project networks. This article proposes a project network approach for describing the design and implementation processes in major investments. The design process of major projects is “fuzzy”, takes a long time, and is hard to capture. The implementation process, on the other hand, takes place in “semi-hierarchical” networks, and is easier to plan and control. The actor that controls the transformation of the political design process into the implementation process has a unique strategic position in the dynamically changing network. This means linking processes that are characterized by separate logic and network structures. Data from processes of design and implementation of three shopping malls illustrate the theoretical framework.     

职业动力论的内在机理:基于价值链的视角

文章从系统的角度分析职业动力理论的优势与不足,提出职业动力理论在组元、结构、目标等方面为构建职业生涯管理系统提供借鉴,但缺乏对职业生涯管理系统微观运行机制的探讨,进而从价值链的视角阐释其产生职业动力的内在机理,最后构建了由价值设定、价值开发、价值评价与分配组成的职业生涯管理价值链系统。     

全球价值链:世界城市网络研究的新视角

城市网络是城市存在的空间范式,它在空间尺度上可划分为世界城市网络和区域城市网络。其中,世界城市网络研究经历了世界城市、世界城市等级体系、世界城市网络三个阶段;区域城市网络则包括巨型城市区、全球城市区域、城市群等研究领域。世界城市网络所运用的生产者服务业分析方法中的单一中心城市模式与区域城市网络的封闭模式相互割裂,不能合理解释当代世界城市体系的空间格局及内在关系。全球价值链可将世界城市网络与区域城市网络有效融合,是研究不同功能城市所组成的多元世界城市网络模式的分析工具。     

Discounting inflation — a note

The aim of this paper is to clarify the confused issue of the effect of inflation on the discounting procedure for investment appraisal. The standard approach is considered, together with the impact of inflation, and the problem of how to adjust the standard approach to take account of inflation. The point is made that it is usually easiest to estimate expected returns in current prices, in which case the discount rate should reflect the real opportunity cost of capital, to avoid mixing real returns and nominal interest in a manner which leads to the rejection of worthwhile projects. An example is given of how the real rate of interest can be computed from the nominal rate of interest and the rate of inflation, and the difference this makes to discounting a sample project. The paper then illustrates how real rates of interest have frequently been negative over the past decade and how this implies that projects may be acceptable even if the sum of future undiscounted returns is less than the initial outlay. The conclusion drawn is that investors should maximize economic profit defined as the surplus over opportunity cost, which reduces the deterrent of nominally high interest rates, for the maximization of surplus over opportunity cost has the corollary of minimization of opportunity loss.     

The environmental value and impact of the Maker movement—Insights from a cross‐case analysis of European maker initiatives

The aim of this paper is to explore the environmental value of the Maker movement, which is driving digital fabrication into the mainstream. Makers are inspiring each other to create smart solutions for all types of individual needs and address societal and environmental challenges at the same time. They share their creative ideas and solutions in collaborative work spaces and Maker Faires or on social media platforms. Is this grassroots innovation the beginning of the next industrial revolution? This paper will explore the environmental value and impact of makers' innovative business model and discuss on how to increase the circularity. At the same time, we will describe the role of maker communities and how to help to play a better role. In the framework of a case study analysis based on 10 different Maker initiatives across Europe, 39 interviews were conducted with makers and Maker initiatives managers evaluating core questions such as potential environmental value and impact, value chains, and energy efficient behaviours. This study is expected to contribute to building an explorative but yet empirically rooted analysis of the environmental value and impact of the Maker movement. Furthermore, the challenges in the future and the suggestions for policy makers are provided.     

Measuring industrial upgrading: applying factor analysis in a global value chain framework

ABSTRACT

A key question for promoting international competition is how to improve the position of countries and industries in global value chains (GVCs). The first step is to properly measure industrial upgrading in GVCs. This is not a trivial issue because upgrading has not been defined unambiguously. Several authors have used different (and sometimes related) measures, all of which indicate certain aspects of upgrading. Rather than trying to find the single, ultimate measure of upgrading, we propose a different approach. We examine the multidimensionality of industrial upgrading, using eight indicators in factor analysis. Four of the eight indicators adopt the GVC perspective and include, for example, the growth of the share in value-added exports. We provide three quantitative dimensions of industrial upgrading: process upgrading, product upgrading, and skill upgrading. With these dimensions, we compare and analyze the upgrading of different countries and industries using the World Input–Output Database.     

Adimpact—a multi-media advertising effectiveness-measurement method

Recall and recognition are the methods which are usually used to establish if a person has been exposed to advertising or not. Recall tends to greatly underestimate exposure. Recognition, though coming much closer to actual exposure, has severe practical limitations, especially for radio commercials and in terms of the number of advertisements that can be tested at a time. Adimpact is a method offering an alternative way of establishing probable exposure to advertising, which is independent of the respondents' ability to recall or recognize the advertisements they have seen or heard.     

The negative impact of R&D capitalization: A value relevance approach

Abstract

Accounting for R&D costs is an open issue. SFAS N°2 mandates that all R&D costs must be immediately expensed. IAS 38 requires capitalization of R&D costs if they meet certain criteria. Recent research papers show the value relevance of capitalized R&D. We test the value relevance of R&D reporting in a sample of 197 French firms between 1993 and 2002. The French context provides an interesting field for R&D value relevance studies because both accounting treatments of R&D costs (expensing and capitalization) are allowed. Unlike previous studies, we find that capitalized R&D is negatively associated with stock prices and returns. This negative coefficient on capitalized R&D implies that investors are concerned with and react negatively to capitalization of R&D. We also find that the firms choosing to capitalize (successful) R&D are smaller, more highly leveraged, less profitable and have less growth opportunities. Taking into account these characteristics, our robustness checks confirm that capitalized R&D is not associated with higher prices and is related to lower returns.