Global sourcing of complex production processes

We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the supplier of each input is an external contractor or an integrated affiliate, and iii) if that input is offshored to a foreign country. Our model leads to a rich set of predictions on the internal structure of multinational firms. In particular, it provides an explanation why many firms choose hybrid sourcing and have both outsourced and integrated suppliers.     

Are speculators informed?

The positions of hedgers and speculators are correlated with returns in a number of futures markets, but there is much debate as to the interpretation of such a relationship—whether it reflects private information, liquidity, or trend‐chasing behavior. This paper studies the relationship between positioning of hedgers and speculators and returns in equity futures markets. I propose a novel test of the private information hypothesis: analyzing the effect of public announcements about futures positions on prices, using high‐frequency data in short windows around the announcements. I find that the revelation of speculators' positions is informative to investors more broadly, supporting the private information view. © 2011 Wiley Periodicals, Inc. Jrl Fut Mark     

Diabetes: Alle zehn Sekunden stirbt ein Mensch

über die letzten Jahrzehnte hat sich Diabetes mellitus Typ 2 zu einer wahren Volkskrankheit entwickelt. Verschiedene medizinische, soziale, aber auch ?konomische Gegebenheiten der Erkrankung zwingen mehr denn je, früher therapeutisch einzugreifen und vor allem pr?ventiv einzugreifen.     

Public service motivation and performance: The role of organizational identification

Although the association between public service motivation (PSM) and job performance has received increased attention, there is limited knowledge of the mechanisms underlying its effects. Utilizing data from Chinese civil servants and their supervisors, the authors found that PSM results in higher levels of organizational identification and leads to higher levels of job performance because civil servants perceive the organization’s fate and results as their own.

IMPACT

Our study demonstrates that organizational identification is a key mechanism that explains how public service motivation (PSM) leads to higher levels of performance. To improve performance, public agencies should create an environment that helps employees identify with the organization, for example by highlighting the distinct services that the organization provides for the public and by establishing socialization practices for newcomers.     

Low carbon growth in Indonesia

Indonesia has responded to worldwide concern about climate change by committing to significant carbon emissions reductions over the next decade. Achievement of this goal will face significant practical obstacles, and the opportunity cost of avoided deforestation is considerable. In our second Policy Dialogue, two climate change experts present contributions to the debate. This exchange could not be more timely, given Norway's recent offer of substantial development assistance to Indonesia in return for reductions in deforestation and forest degradation.

In this first contribution, Adam Schwarz canvasses abatement options and outlines barriers to abatement and its measurement. These include capacity and data constraints, obstacles posed by decentralisation, and problems in identifying and measuring the costs of abatement measures. The author urges Indonesia to embrace the opportunity a lower carbon growth trajectory presents, and argues that this will require substantial additional funding, including from developed countries, and sustained leadership. (Ed.)     

The assessment of Government support for industrial research: lessons from a study of Norway

Abstract: This paper summarises the results of a recent study carried out by the Science Policy Research Unit for the Norwegian Royal Commission on Industrial Research (the 'Industriforskningsutvalget'). We assess in broad terms the effectiveness of existing Norwegian mechanisms for supporting Industrial research in institutes and firms, focussing in particular on the mechanical engineering and electronics sectors. A range of evaluation techniques are utilised in examining (a) research institute performance, (b) the research institute/industry interface, and (c) the general mode of operation of the funding system. It is suggested that the methodology adopted in the study may be of more general value in evaluating national systems for funding R & D.     

Wholesale market definition in telecommunications: The issue of wholesale broadband access

The scope of a wholesale market may, in addition to demand- and supply-side substitution at the wholesale level, also be determined by substitution patterns at the retail level. Considering wholesale broadband access markets, it is argued that each of these forces can be strong enough to render a 5–10% price increase by a hypothetical monopolist at the wholesale level unprofitable and thus may lead to a wider wholesale market definition including, for example, cable networks in addition to DSL. Based on the theory of derived demand elasticities the paper discusses under which circumstances this could be the case. The position of the European Commission and the practice of national regulatory authorities are then reviewed in light of these arguments.     

Technology use on the front line: how information technology enhances individual performance

This study explores and tests a new model that links different types of technology usage to individual-level outcomes. The primary objective of this study is to examine the effects of efficient use (routinization) and effective use (infusion) along with the traditional measure of usage—namely, frequency of use—on two dimensions of individual-level outcomes: information technology-enabled administrative performance and information technology-enabled salesperson performance. To maintain consistency with the existing literature, the authors examine the effects of predeployment attitude toward or acceptance of technology and pre-deployment intended use of technology. The authors discuss managerial implications and provide directions for future research.