Japan's Growing Outward Direct Investment in East Asia

Japan's outward direct investment (ODI) began to show an obvious expansion since 2005, accompanied by a greater importance in East Asia and in the manufacturing sector. By analyzing the new wave of Japanese ODI, three points are elaborated in this article. First, the recent Japanese ODI did not result in the same industry to be passed from one country to another as elucidated in the flying geese model. Instead, Japan's ODI only promoted the regional divisional of labor in the transport equipment and electrical machinery industries. Second, this study advances the theory of vertical production network by exploring two regional production networks constructed by Japanese ODI, including one between China, South Korea, Taiwan, and Hong Kong and the other between the Association of Southeast Asian Nations (ASEAN). Finally, since Japan's economy has been tightly connected with foreign demand via overseas production, this article argues that any sign of Japan's declining ODI will have serious impact to its domestic economic prosperity. © 2015 Wiley Periodicals, Inc.     

Factor Substitution, Average Firm Size and Economic Growth

This paper extends the Lucas (1978, The Bell Journal of Economics 9(2), 508–523) analysis of firm size by taking into account a normalised aggregate CES production function. In a general equilibrium framework it is proved that there is an inverse relation between the elasticity of substitution and average firm size. If interpreted together with the fact that richer countries are characterised by a higher elasticity of substitution, this result can explain why the recent literature finds a positive association between the importance of SMEs in an economy and its stage of development, but seems to fail in finding causality between the two. Both have a common origin: a high value of the elasticity of substitution. This paper also provides a first empirical test of the theory proposed using cross-country data from both developed and developing countries.     

Oil price volatility and real options: 35 years of evidence

There has been a surge in interest in the effects of uncertainty on investment decisions, motivated at least in part by the theory of real options. For example, Bloom (2009, Econometrica, 77, 623–685) shows that higher uncertainty causes firms to temporarily pause investment and hiring, generating sharp economic downturns. This paper investigates these effects by examining the response of disaggregated measures of production to volatility in oil prices. We find that increased oil price volatility has strong negative effects on the production of durable goods, such as transportation equipment, and oil exploration, such as the drilling of oil and gas wells.     

Why Does Employment Differ in the Course of Time and Across Nations? An Institutional Answer In The Light of the ‘Regulation’ Theory

The paper argues that contemporary unemployment is related not so much to the short run malfunctioning of the labor market as to the erosion of the growth regime in the post-war period. What most theories attribute to increasing labor market rigidities is in fact closely related to the mismatch between the national institutional forms and the trends associated with a new production paradigm and the transformation of the international regime. Some long run historical analyses inspired by the “regulation” theory are then used in order to interpret the unprecedented pattern of French unemployment. Similarly contemporary international comparisons help to explain why employment performances differ so much in North America, Japan, Continental Europe and Scandinavian countries. Some general objectives for economic policy are then suggested but the general conclusion stresses the obstacles to the transition from one growth regime to another which arise from institutional inertia and complementarity.     

Alert or oblivious? Factors underlying consumer responses to marketing stimuli

Recently published studies have introduced consumer researchers to uses of priming theory in marketing messages. A two‐factor model of assimilation and contrast effects has been proposed which focuses on aspects of message context and cognitive resource differences between consumers. However, these accounts do not consider an important additional factor pertinent to the production of category‐based contrast effects in response to marketing communications. This article discusses recent priming research and presents theoretical discussion in support of the putative third factor of consumer wariness for predicting judgmental outcomes of priming effects in consumer market settings. © 2000 John Wiley & Sons, Inc.     

Taking AIM at Theoretical and Pragmatic Impact: A Call for Actionable,Insightful, and Measurable Research

Ongoing debate surrounds the relative importance of theory and practice within supply chain research. Some contend that strong theory is central to knowledge advancement and its application to practice should be a secondary concern. Others argue that emphasizing theory moves the field away from its applied roots and the concerns of managers. We transcend this debate by proposing that theory and practice are separate dimensions rather than opposing concerns. Research projects can thus be strong in terms of both theory and practice, weak on both, or strong on one and weak on the other. We propose that placement within the first category requires scholars to devise research that is AIM—actionable (i.e., it provides a basis for making changes), insightful (it provides new ideas on important issues), and measurable (its effects can be quantitatively assessed). The impact of such research is magnified or dampened by the degree to which scholars achieve theoretical contextualization (i.e., adjusting the theory to reflect the setting under investigation) and theoretical calibration (i.e., alignment between theory and methods). Because “AIMing high” can deliver strong value for both scholars and managers, we encourage scholars, editors, and reviewers to embrace it in the development and evaluation of research.     

Intra‐stakeholder alliances in plant‐closing decisions: A stakeholder theory approach

This article discusses plant‐closing decisions by multinational enterprises (MNEs) applying a stakeholder theory approach. In particular, we focus on the emergence of “intra‐stakeholder alliances,” that is, alliances among the various stakeholder groups of a specific corporation. We analyze the emergence of stakeholder alliances in reaction to MNEs' decisions to terminate production locally and discuss their influence on the outcomes of such decisions. Our research is inspired by two exceptional case studies of two multinational breweries that announced their decisions to close niche breweries in small towns in Italy and Belgium. In both cases, the initial decision was ultimately reversed through the actions of intra‐stakeholder alliances. We combine insights from stakeholder theory and the social movement literature to analyze the action and influence of intra‐stakeholder alliances in seven cases of plant‐closing decisions. We conclude by formulating four general propositions that can provide guidance to MNE management in plant‐closing decisions. Our findings extend managerial stakeholder theory, show how this approach can improve strategic management analysis, emphasize the importance of the relationships among (local) stakeholders in the (global) value‐creation process, and shed light on the collective action and influence of intra‐stakeholder alliances.     

Building new roads for entrepreneurship research to travel by: on the work of William B. Gartner

This article takes the awarding of William B. Gartner as a winner of the FSF-Nutek Award (in 2005) as a reason to engage more thoroughly with his production. From the perspective of a European School of Entrepreneurship, we focus in particular on the hermeneutic/phenomenological side of Gartner’s research output and seek to operate as inspired readers of this work as we identify its central tendencies (presence of organization theory and literary inspiration). The aim is thus to situate Gartner’s influence on the entrepreneurship research community based on the lead provided by these tendencies and from there to provide a vision of a future of entrepreneurship research. Bengt Johannisson was a member of the Prize Committee for The International Award for Entrepreneurship and Small Business Research when the prize was awarded to William B. Gartner. The prize is awarded by the Swedish Foundation for Small Business Research (FSF) and the Swedish Board of Industrial and Technical Development (NUTEK). An important aim with this prize is to attract broader attention to this research field. A precondition for choosing the winner of the award is that his/her research is a significant contribution to the theory and empirical understanding of entrepreneurship and the importance of entrepreneurship, new firm formation and small businesses in economic development. Besides the honor, the prize consists of SEK 0.5 million. It has been awarded annually since 1996. More information about the prize and previous winners is available at .     

Globalization,Coordination, and Subsidiary Performance-Evidence from Companies in an Advancing Country

ABSTRACT

We investigate an important issue in globalization, the relationship between production capacity of a global company's subsidiary and its performance, where the subsidiary's relative size of production capacity is regarded as its globalization level. Analyzing the field data on 42 Korean companies engaged in global operations, we reached preliminary conclusions. First, the optimal level of subsidiary globalization represented by its relative production capacity does not exist. This lack of significance subsides when we associate the globalization level with global coordination between the headquarters and its subsidiary. Global coordination turns out to be a significant factor, either direct or moderating in relation to the globalization level, in determining the subsidiary's performance. We also found that the type of coordination supporting the subsidiary's innovation is different from that enhancing its operational efficiency: for the subsidiary's innovation capability, indirect coordination is effective, whereas direct coordination can be detrimental. In addition, we report effects of other factors such as global experience, host country and target market characteristics on the subsidiary performance.     

Offshore Outsourcing and Non‐production Workers: Firm‐level Relationships Disaggregated by Skills and Suppliers

In analysing the impact of offshoring on the skill composition, previous empirical studies have established that offshoring firms employ more non‐production workers. However, not all non‐production workers are highly skilled. This paper disaggregates non‐production workers into the following three categories: (i) skilled non‐production workers, (ii) unskilled non‐production workers and (iii) non‐production workers with special skills for offshoring and other overseas business management. By linking our offshoring survey data with firm‐level data for Japanese manufacturing firms, this paper finds that the share of skilled non‐production workers tends to be significantly high in offshoring firms but that of unskilled non‐production workers is not. As offshoring has expanded from production to non‐production tasks, this result implies that the distinction between skilled versus unskilled workers becomes critical among non‐production workers. Using our unique data on supplier types in offshoring, this paper finds that the share of non‐production workers for the management of overseas activities tends to be high in foreign direct investment firms and in firms outsourcing to foreign independent suppliers, but not in Japanese firms outsourcing to offshore suppliers located abroad but owned by other Japanese firms. This difference indicates that coordination burdens are likely to be at least partly mitigated by common languages or shared business practices. These findings suggest that offshoring has different impacts on employment depending on suppliers and the worker’s skill. The principal results are confirmed robust even after various firm characteristics are controlled for in panel regressions, though we should not give any causal interpretations.     

CSR development in post‐communist economies: employees' expectations regarding corporate socially responsible behaviour – the case of Romania

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post‐communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire‐based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers.     

The Confines of Stakeholder Management: Evidence from the Dutch Manufacturing Sector

Stakeholder theory is a pertinent example of a framework that has been stretched over many conceptual contexts and that has been applied to a wide variety of empirical phenomena. A pressing issue involves the scope of application of stakeholder theory, however, because it is not a comprehensive ethical scheme or problem-solving algorithm. We begin our search for the boundaries of stakeholder management by identifying a presently under-acknowledged yet major underlying assumption, notably that the approach is rooted in voluntary action and association. Building on this presumption, we argue that firm – stakeholder relationships are best to be understood in contractualist terms; i.e. as voluntary arrangements between two or more parties seeking mutual benefit. This assertion subsequently allows us to identify three boundary conditions applying to stakeholder theory: (1) the parties should be sufficiently autonomous; (2) their interests need to be alignable; and (3) they should be capableof living up to their commitments. We substantiate these criteria with evidence from a collective case study of buyer – supplier relationships in the Dutch manufacturing sector, demonstrating that the stakeholder management model fails when these boundary criteria are violated.     

A review of social roles in green consumer behaviour

Despite the broad interest and rapid increase in studying green consumer behaviour (GCB) from a social perspective, related articles have been presented in a piecemeal fashion and have lacked a review of social roles in GCB. Additionally, the research focus may differ from the influence of digital technology. Therefore, this study draws on a review of 439 GCB articles that focus on social roles and utilizes both quantitative and qualitative analyses to provide a general picture of theories, social factors, research topics and topic trends with a specific emphasis on the research differences between the traditional and digital contexts. The findings indicate that the GCB field has experienced exponential growth since 2014. Subjective norms, social influence, culture, marketing influence and social media influence are the main drivers of GCB. Eight research topics are identified, among which topics on the theory of planned behaviour (TPB) and the theory of consumption values (TCV) maintained high popularity. Furthermore, the TPB is more prevalent in the traditional context in which scholars prefer to predict GCB using macrosocial factors, such as policy and culture. In comparison, signal theory and commitment-trust theory have received more attention in the digital context in which trust is vital. Research interests in online platforms and green hotels have recently increased in the digital context. Gaps and suggested directions for future studies are further identified.     

Real Wicksell Effect,Demand for Capital and Stability

The aim of this paper is to study the relationship between reverse capital deepening and instability of the equilibrium between investments and savings. It is shown for a model with n commodities, infinitely many linear technique of production, and overlapping generations that a badly behaved real Wicksell effect, as in the case of a ‘reswitching of techniques’, can involve instability.     

The Elephant in the Room: On the Absence of Corporations in Bernard Hodgson’s <Emphasis Type="Italic">Economics as a Moral Science</Emphasis>

In his book Economics as a Moral Science, Bernard Hodgson argues that economics is not value neutral as is often claimed, but is a value-laden discipline. In the long argument for this in his book, Hodgson never discusses or even mentions corporations. This article explains that corporations are absent from Hodgson’s discussion because he considers only the consumption side of general equilibrium theory (GET), and it shows that if Hodgson had included corporations and the production side, his overall argument would have been more complete and convincing. This article shows that Hodgson’s methodology, when applied to the production side of GET, has value implications for CEOs of large corporations, for shareholders and members of Boards of Directors, and for legislators and regulators of business. Hodgson’s claim that economics must consider the ability of economic agents to create or change the institutional, cultural, and organizational conditions of their own economic actions is supported and expanded.     

Questionable Business Practices in Russia

ABSTRACT

This article applies Integrative Social Contracts Theory (Donaldson and Dunfee, 1994) to ethical issues in business situations in Russia arising between Russians and Westerners. The theory bases ethical decision making on universal hypernorms which are fundamental to human existence regardless of culture or nationality. Simultaneously, specific norms exist that may differ from one community or culture to another. The theory includes six criteria to help resolve conflicts among these different groups. This article uses a common situation of blat or personal favoritism in Russian business to illustrate how the theory can be applied to conflicting norms in interactions between Western business people and their counterparts in Central and Eastern European countries.     

UNCERTAINTY AND EXPECTATIONS IN SHACKLE'S THEORY OF CAPITAL AND INTEREST

This paper is focused on the macroeconomic aspects of Shackle's theory of capital and interest. The paper highlights the strengths and weaknesses of this theory. Among the strengths is Shackle's treatment of historical time, expectations and their disappointment, ex ante and ex post magnitudes, macroeconomic equilibrium and disequilibrium. Among the weaknesses is Shackle's failure to grasp the difference between the theory of interest as such and the theory of the money rate of interest as well as the difference between the theory of capital in the context of logical time (the old Austrian approach) and the theory of capital in the context of historical time (Hayek's and Shackle's preferred approach).

相似文献   

Economics and the Limits of Optimization: Steps Towards Extending Bernard Hodgson’s <Emphasis Type="Italic">Moral Science</Emphasis>

In this essay, my point of departure is Bernard Hodgson’s analysis of neo-classical economic theory and his demonstration that neo-classical economic thought is already a branch of normative theory. I undertake to broaden the demonstration by showing that other contemporary conceptions of economics are also irreducibly normative. The essay begins with an overview of Hodgson’s argument strategy, and a discussion of his thesis that economics is a moral science. This illustrates in what way moral presuppositions are at play as core principles that both positivist and normativist economics take for granted. My strategy is to show that alternative conceptions of economics, in particular Schumpeterian accounts of evolution/innovation, and orthodox versions of ecological economics, share with classical and neo-classical economics normative assumptions about the common good, extending Hodgson’s thesis to one about moral science. For then these assumptions (both moral and scientific) commit economics to unworkable notions of social and environmental optimization that ignore the pure historical contingency of physical, economic, social and cultural conditions. It is concluded that the relationship between facts and values must be fundamentally retheorized.