Technological diffusion,the diffusion of skill and the growth of outsourcing in US manufacturing

The development of knowledge requires investment, which may be made in terms of financial resources or time. Open source software (OSS) has challenged much of the traditional reasoning by suggesting that individuals behave altruistically and contribute to a public good, despite the opportunity to free-ride. The lion’s share of the existing literature on OSS examines communities, that is, those individuals whom are already part of the OSS community. In contrast, this paper starts from users with the requisite skill to use and develop OSS. This group of skilled individuals could potentially invest into the development of OSS knowledge, but they may or may not do so in actuality. This paper, therefore, explores three issues, which have not been extensively explored in the literature, namely, (1) how frequently a group of skilled people use OSS, (2) reasons for differences among users and non-users in terms of use and attitudes, and (3) how frequently, and why, some users contribute to OSS projects (and thereby become developers). In doing so, we consider the opportunity costs of use and development of OSS, which has been largely neglected in the literature. We find that the individuals have a rather pragmatic attitude to firms and that many are active in both firms and OSS community, which raises many questions for future research about the role and influence of firms on the development and diffusion of OSS.     

Comparing two approaches for identifying recreation activity substitutes

Abstract

Previous research has utilized at least two distinct methodological approaches to identify substitutable recreation activities: (1) the activity type method, which constructs typologies of substitutable activities based on similarities in reported participation rates or preference patterns and (2) the direct‐question method of asking individuals to specify their substitutes for a particular activity. The present study compares the theoretical assumptions of and predictions made by each method using a sample of hunters in Maryland. Based on differences in the assumptions and specificity of the two approaches, it was hypothesized that the predicted substitutes would vary. Findings indicate that the approaches result in different predictions about substitute activities and that the activity type method is probably not well‐suited for understanding or predicting the choice of specific activity substitutes. The implications of these findings for resource management and future research are discussed.     

The Trade‐Off between Foreign Direct Investments and Exports: The Role of Multiple Dimensions of Distance

To serve foreign markets, firms can either export or set up a local subsidiary through horizontal foreign direct investment (FDI). The conventional proximity–concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important if scale economies in production are large. This paper investigates empirically the effect of different dimensions of distance on the choice between exports and FDI. We find that different dimensions of distance affect exports and FDI differently. There is clear evidence of a proximity–concentration trade‐off in geographical terms: the share of FDI sales in total foreign sales increases with geographical distance. The positive relation between import tariffs and FDI intensity provides further evidence for a trade‐off resulting from trade costs. On the other hand, the share of FDI decreases with language differences and cultural and institutional barriers. The latter dimensions of distance thus affect FDI more strongly than exports.     

The Making of a Dealer Market: From Entry to Equilibrium in the Trading of Nasdaq Stocks

This paper provides an analysis of the nature and evolution of a dealer market for Nasdaq stocks. Despite size differences in sample stocks, there is a surprising consistency to their trading. One dealer tends to dominate trading in a stock. Markets are concentrated and spreads are increasing in the volume and market share of the dominant dealer. Entry and exit are ubiquitous. Exiting dealers are those with very low profits and trading volume. Entering market makers fail to capture a meaningful share of trading or profits. Thus, free entry does little to improve the competitive nature of the market as entering dealers have little impact. We find, however, that for small stocks, the Nasdaq dealer market is being more competitive than the specialist market.     

Is Information Risk a Determinant of Asset Returns?

We investigate the role of information–based trading in affecting asset returns. We show in a rational expectation example how private information affects equilibrium asset returns. Using a market microstructure model, we derive a measure of the probability of information–based trading, and we estimate this measure using data for individual NYSE–listed stocks for 1983 to 1998. We then incorporate our estimates into a Fama and French (1992) asset–pricing framework. Our main result is that information does affect asset prices. A difference of 10 percentage points in the probability of information–based trading between two stocks leads to a difference in their expected returns of 2.5 percent per year.     

state Lotteries and Crime

A bstract . The impact of having a state lottery on the rate of crime against property in that state is estimated. Arguments in the standard economic model of criminal activity employed here include the unemployment rate, real income per capita, presence of the death penalty in the state as a proxy for general severity of punishment , police officers per capita, the percentage of population between the ages of 5 and 24, and the presence of a state lottery. Because the decision of a state to operate a lottery may correlate with crime rates, a selectivity model was run to extract any bias, but no such bias was found. The analysis used data for the 50 states plus the District of Columbia from 1970 through 1984. The results suggest that presence of a state lottery is associated with a crime rate higher by about 3 percent, an effect both statistically significant and practically important.     

The separation of law and justice: Managing impressions of corporate ethics programs

This article is based on the study of two companies that differ in their definition of thics, one with a narrower definition than the other. The one with the narrower definition invited skepticism about its commitment to the spirit of ethics but was better to claims made against their own standards and language. The implications of these findings for corporate ethics programs are discussed.     

International marketing strategies in industrial clusters: Insights from the Southern Hemisphere

This paper examines co-operative marketing strategies among clustered-based firms in the most important wine producing and exporting countries in the ‘new world’. The research examines the development of active inter-firm marketing co-operation undertaken by firms to achieve competitive positioning in international markets. The results of a survey of managers located in Argentina, Australia, Chile and New Zealand are presented. The empirical contribution comes from the unique comparative data from regional clusters in four countries which are seen internationally as innovative producers and marketers, all strongly export-oriented, but at different stages of economic development and positioning in the global marketplace. In addition, this study makes a significant contribution to agglomeration theory by confirming the importance of sharing marketing knowledge to build sustainable competitive advantage in international markets. The theoretical contribution builds understanding of international marketing strategies within the Southern Hemisphere group of emerging countries and offers new insights on international marketing practices for emerging firms from both the developed economies in the Pacific Ocean region and Latin American emerging economies.     

The plurality of co-existing business models: Investigating the complexity of value drivers

Business models are key tools to provide a means of operationalizing theories about firm and industry level strategies, and to understand the nature of value drivers and the role of marketing in these processes. In this paper we assess empirical evidence for a plurality of co-existing business models within firms by developing a typology of business models in a single industry, the New Zealand Wine industry. We examine the co-existence of the types of models using in-depth analysis of seven case firms that vary in size and ownership. Our findings show how value creation is done in the context of interactions and they provide support for multiple business models that co-exist alongside each other with varying degrees of separation. Plurality better explains the complexity of value drivers and strategies for firms in this rapidly changing industry environment, where businesses are under extreme financial pressure. Our findings challenge assumptions that firms have (or should have) a single business model thus allowing a plurality of approaches within a single firm or industry that shifts the focus from implementing strategy A or B or C, to implementing strategy A and B and/or C.