Exploitation- and exploration-based innovations: The role of knowledge in inter-firm relationships with distributors

Learning capacity is a critical factor for a firm’s innovation and competitiveness. This study explores the issue of how knowledge in inter-firm relationships with distributors influences manufacturers’ exploitation- and exploration-based innovations and performance. The empirical model examines the effect of three different types of knowledge-related issues in inter-firm relationships: (i) the acquisition of substantial knowledge (about products, technology, or markets) from distributors; (ii) the learning about collaborating with each distributor as the relationship evolves; and (iii) the general firm’s knowledge about managing distributors. A model of learning—innovation—performance is developed and tested in a sample of 201 firms in the food and beverages sector. The results reveal that: (i) knowledge about managing distributors promotes continuous learning from them; (ii) learning to collaborate is critical, as it favours knowledge acquisition and both types of innovations (exploitation- and exploration-based); (iii) learning from distributors weakens firms’ tendency to stress one type of innovation strategy over another; and (iv) knowledge in inter-firm relationships with distributors affects performance in a completely mediated way, that is, through innovation. Theoretical and managerial implications of these findings are discussed in the conclusion of the paper.     

Networks to Enforce European Law: The Case of the Consumer Protection Cooperation Network

Central to this paper is the aim to discuss the effectiveness of the Consumer Protection Cooperation Network (also known as ??CPC Network??) for consumer protection in cross-border disputes in the European Union (EU). In doing so, this paper deals with the literature about networks established by grouping the Commission and national authorities to enforce European Law. The examples of the European Competition Network and the CPC Network are interesting because they raise questions with regard to the effectiveness and the accountability of emerging network-based law enforcement. The development of the CPC Network may have relevant implications for other areas of EU law and policy, including the question whether network-based governance could be transposed in other fields of EU Law.     

Stemming the gender gap in STEM entrepreneurship – insights into women’s entrepreneurship in science,technology, engineering and mathematics

Science, technology, engineering, and mathematics (STEM) fields are notably important for innovation and technological development, which in turn are seen as drivers of social and economic growth. Hence, researchers and policy-makers have paid substantial attention to analyzing and promoting high-growth ventures in STEM fields. However, STEM fields are highly gender-skewed, regardless of whether the population considered is students, faculty members, graduates, top managers, or entrepreneurs. This is noticeable in the small number of women entrepreneurs with STEM backgrounds. This underrepresentation of women in innovation-driven business startups highlights existing gender biases and systemic disadvantages in social structures, making visible the double masculinity that exists at the intersection of STEM and entrepreneurship. This article addresses this issue by combining insights from research about women’s entrepreneurship and research about the gender aspects of STEM fields. We emphasize institutional, organizational, and individual factors influencing women’s entrepreneurship in STEM fields, laying the foundation for the articles included in this special issue. Finally, we discuss the way forward for research on the gender aspects of STEM entrepreneurship to help us create the knowledge needed to close this gender gap.

     

Distance to Customers,Absorptive Capacity,and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity

This paper investigates the impact of both geographical and relational proximity on the innovative performance of the firm. We address the role of one firm characteristic—its absorptive capacity—as a specific contingency affecting the relationship between different proximities and innovation. Using data from 158 high‐tech firms located in the Tiburtina Valley in Italy, we studied the relationship between these firms and their key customers. Our findings support the need to downplay the role of geographical proximity in promoting innovation. Our results also show that relational proximity to key customers has a complementary relationship with absorptive capacity, which positively moderates its influence on innovative performance.     

Sustainable tourism implementation in urban areas: a case study of London

Sustainable tourism is a concept widely embraced by managers and planners of tourist destinations. However, it has received little attention in the context of urban tourism, an area of research that has until recently been largely neglected by academics. This paper contributes to the body of knowledge on sustainable tourism implementation in large cities, by using London as an exploratory case study. Through the collection and analysis of both primary and secondary data (online survey, semi-structured interviews and document analysis), it seeks to explore whether local authorities have implemented policies towards sustainable tourism in the capital. The findings indicate that although the concept of sustainable tourism is perceived as important by policy makers, only a few local authorities in London promote its principles in their policy documents and even fewer have initiatives to put them in practice. Most of these initiatives are isolated activities which address limited aspects of sustainable tourism. The paper concludes that despite some progress made to date, in the current economic climate, growth and development remain the main objectives of governments and local authorities, while social and environmental issues are often left behind.     

Exchange Rate Populism

East Asian and Latin American economies present opposite exchange rate electoral cycles: exchange rates tend to be more depreciated before and appreciated after elections among East Asian economies, while the opposite is true in Latin America. We propose an explanation for these empirical findings where the driving force of the opposite exchange rate populism in these two regions is their difference in the relative size of tradable and non‐tradable sectors, coupled with the distributive effect of exchange rates. In a setup where policy‐makers differ in their preference bias toward non‐tradable and tradable sectors, the exchange rate is used a noisy signal of the incumbent's type in an uncertain economic environment. The mechanism behind the cycle is engendered by the incumbent trying to signal he is median voter's type, biasing his policy in favor of the majority of the population before elections.     

Adult Polycystic Kidney Disease and Critical Illness Insurance

Abstract

Adult polycystic kidney disease (APKD) is a single-gene autosomal dominant genetic disorder leading to end-stage renal disease (ESRD, meaning kidney failure). It is associated with mutations in at least two genes, APKD1 and APKD2, but diagnosis is mostly by ultrasonography. We propose a model for critical illness (CI) insurance and estimate rates of onset of ESRD from APKD using two studies. Other events leading to claims under CI policies are included in the model, which we use to study (a) extra premiums under CI policies if the presence of an APKD mutation is known, and (b) the possible costs arising from adverse selection if this information is unavailable to insurers. The extra premiums are typically very high, but because APKD is rare, the possible cost of adverse selection is low. However, APKD is just one of a significant number of single-gene disorders, and this benign conclusion cannot be assumed to apply to all genetic disorders taken together. Moreover, ignoring known genetic risks in underwriting sets a precedent that could have unintended consequences for the underwriting of nongenetic risks of similar magnitude.     

Enriching Urban Policy Mobilities Research

Attending to the recent and growing debates on urban policy mobilities, this commentary offers a view towards an intellectual and methodological reflexiveness for urban policy mobilities researchers. We consider connections between the various approaches and considerations that researchers have argued for in regards to doing policy mobilities research. In doing so, we argue that new pathways for research can be usefully carved out through attention to embodiment, or a peopling of the geographies of policy mobilities.     

Block trades and the benefits of control in Slovenia1

Ownership and control have been concentrating in most transition countries. The consolidation of control introduces changes in the power distribution within privatized firms and, most importantly, redirects the corporate governance problem to a conflict between large and small shareholders. In this study, we evaluate the ownership changes in Slovenian privatized firms through an analysis of stock price reactions to the entrance of a new blockholder (the shared benefits of control) and through an estimation of the premiums paid for large blocks (the private benefits of control). We provide evidence of and discuss the reasons for the failures of the privatization investment funds in implementing control over firm managers and in promoting the restructuring of firms in the first post‐privatization years.