Machine tools and mass production in the armaments boom: Germany and the United States, 1929–44

This article anatomizes the ‘productivity race’ between Nazi Germany and the US over the period from the Great Depression to the Second World War in the metalworking industry. We present novel data that allow us to account for both the quantity of installed machine tools and their technological type. Hitherto, comparison of productive technologies has been limited to case studies and well‐worn narratives about US mass production and European‐style flexible specialization. Our data show that the two countries in fact employed similar types of machines combined in different ratios. Furthermore, neither country was locked in a rigid technological paradigm. By 1945 Germany had converged on the US both in terms of capital‐intensity and the specific technologies employed. Capital investment made a greater contribution to output growth in Germany, whereas US growth was capital‐saving. Total factor productivity growth made a substantial contribution to the armaments boom in both countries. But it was US industry, spared the war's most disruptive effects, that was in a position to take fullest advantage of the opportunities for wartime productivity growth. This adds a new element to familiar explanations for Germany's rapid catch‐up after 1945.     

Small businesses and the environment: turning over a new leaf?

Previous studies on the environmental practices of small and medium‐sized enterprises (SMEs) in the UK and beyond have portrayed owner‐managers as laggards who underplay their firm's environmental impacts and resist environmental management due to its perceived cost. Yet a recent cross‐sector survey of 220 UK SMEs suggests that this intransigent stance may be slowly changing. Responses indicate a high percentage of owner‐managers actively involved in recycling, energy efficiency, responsible buying and selling, and efforts to reduce their carbon emissions. Owner‐managers saw it as their responsibility to help solve environmental problems and were reportedly willing to accept the costs of tougher environmental regulations and taxation. Business owners were motivated not just by the ‘push’ of legislation and environmental concern but by the ‘pull’ of potential cost savings, new customers, higher staff retention and good publicity for their firms. The survey also found that owner‐managers had resonance with the Stern Review's (2006) conclusions that the benefits of strong early action on climate change outweigh the costs, and that a transition to a low‐carbon economy will bring opportunities for business growth. This indicates that SMEs may be coming round to the idea that there is a business case for sustainability, although there is still some scepticism on the overall profitability of environmental action. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

When imperfect collusion is profitable

This paper studies cartel stability under the assumption that member firms can choose intermediate degrees of collusion as well as the joint-profit-maximizing solution in determining the quota to be produced by each firm. After showing that firms can increase the number of participants by decreasing the degree of collusion, I prove that individual members' profits are maximized when firms choose a (possibly low) degree of collusion such that all firms in the industry want to take part in the cartel. More precisely, if the number of firms in the industry is four or less, then all of them want to take part in the cartel even if the maximum degree of collusion is chosen (i.e., the monopoly output is produced); if the number of firms is greater than four, firms will still create an industry-wide cartel but they will produce a higher quantity than the monopoly output.     

Measuring persistence in Croatian tourism: evidence from the Adriatic region

This study examines the degree of persistence in foreign tourist arrivals and overnight stays for seven Croatian coastal counties over the period January 1998 to December 2013 using fractional integration techniques. Our findings reveal that the respective regional tourism indicators exhibit seasonal unit roots which require seasonal first differences to render the respective time series stationary. With respect to the long-run evolution of the respective time series, both the parametric and semi-parametric fractional integration approaches show the degree of persistence is greater than zero, but significantly less than one for the majority of the coastal counties. Impulse response analysis reveals indeed shocks to the deseasonalized time series, either foreign tourist arrivals or foreign tourist overnight stays, appear short-lived with the exception of Istria and Primorje-Gorski kotar counties. Policy implications of the results are also discussed.     

Vacancy durations - a model for employer's search

This paper investigates a Dutch data set on vacancy durations and numbers of applicants to enquire employers' search strategies. A nonsequential search process assumes that most vacancies are filled from a pool of applicants, which is formed shortly after the posting of the vacancy. The time spent on recruiting applicants and the duration of the selection process are estimated with a proportional hazard model, via the arrival and attrition rates of applicants.     

Screening and training inter-cultural competencies: evaluating the impact of national culture on inter-cultural competencies

Inter-cultural competencies have become increasingly important for international personnel selection and training. The purpose of this article is to evaluate psychometric data regarding the controversy as to whether inter-cultural competencies are culture-free or culture-bound. In two empirical research projects in the USA and Germany national differences in inter-cultural competencies are evaluated. National culture is indicated as a significant independent variable for inter-cultural competencies in both studies. However, the impact of national culture on inter-cultural competencies seems to be minor in relation to the impact of gender culture as well as of organizational culture. Therefore, inter-cultural competencies are judged to be culture-general in the two nations. Conceptual conclusions as well as practical conclusions for IHRM are discussed, based on the results. Finally, the limitations of the studies are pointed out.     

Insider employee stock option trading and stock prices

The question of which factors determine corporate bonds pricing is investigated by analysing the spreads of eurobonds issued by major G-10 companies during the 1991–2001 period. Three main results emerge from the analysis. First, bond ratings appear as the most important determinant of yield spreads, with investors’ reliance on rating agencies judgments increasing over time. Second, the primary market efficiency and the expected secondary market liquidity are not relevant explanatory factors of spreads cross-sectional variability. Finally, rating agencies adopt a different, ‘through the cycle’, evaluation criteria of default risk with respect to the forward looking one adopted by bond investors.     

Telia—a Swedish‐Finnish marriage after a failed Norwegian courtship

In 2002, the Swedish telecommunications company Telia merged with the Finnish telecommunications company Sonera. Prior to this merger, Telia had already attempted to ally with the Norwegian telecommunications company Telenor. This effort had resulted in a disaster; the “marriage” of the two companies was “divorced” after only two months in 1999. In the first part, the case study will feature an introduction to the telecommunications industry. In the second part, the unsuccessful merger between Telia and Telenor will be examined. Particular emphasis will be placed on national conflicts of interest and the power games played by politicians and leading managers. In the third part, the merger between Telia and Sonera will be described. This will be interpreted as another example of a politically and culturally difficult, but to this day successful merger. Finally, both merger episodes will be analyzed with reference to international mergerand‐acquisition (M&A) literature. The focus will be on motivations and objectives, environmental influences on the two mergers, and internal issues of the merging companies. © 2009 Wiley Periodicals, Inc.     

A Range-Based Finite Difference Approach to Valuing Options in Markov Switching Regimes*

Recognizing the inflexibility inherent in standard capital budgeting analysis, recent research has provided new insights using a real options framework. This paper uses the explicit finite difference approach to value real options. However, instead of assuming a constant return and volatility term, we assume that these variables are sensitive to changes in the economic environment. Accordingly, we adapt our approach to incorporate a Markov switching feature. Further, we recognize that some of the modeling assumptions can be violated in a practical application. Therefore, we recommend using range based estimates of the real option value, as opposed to a point estimate.     

‘Too Big to Fail and Too Big to Succeed': Accounting and Privatisation in the Prison Service of England and Wales

This paper is concerned with the challenges involved in the transformation of the prison into a performance‐oriented accounting entity. It examines the implication of private sector accounting and consulting expertise in redefining prison values and prison performance, and it discusses the consequences this had for definitions of risk and responsibility. The paper shows how the reforms promoted a systemic decentring of Prison Service accountability. Prison managers and regulators came to be inserted into hierarchies of expertise and credibility shaped by quests for commensuration and auditability. Further, the paper shows how the reform attempts brought about a situation of institutional lock‐in by contributing, as the outgoing HM Chief Inspector of Prisons Anne Owers has put it in 2010, to the creation of an inflated prison system ‘too big to fail, and too big to succeed'.