Entrepreneurial aesthetics

The Review of Austrian Economics - This paper examines the aesthetic dimension of innovative entrepreneurship. It treats markets as aesthetic systems that involve the creation, interpretation and...     

An Ethical Inquiry of the Effect of Cockpit Automation on the Responsibilities of Airline Pilots: Dissonance or Meaningful Control?

Journal of Business Ethics - Airline pilots are attributed ultimate responsibility and final authority over their aircraft to ensure the safety and well-being of all its occupants. Yet, with the...     

The effect of the dynamics of knowledge base complexity on Schumpeterian patterns of innovation: the upstream petroleum industry

This article analyzes important changes in technological innovation in the upstream petroleum industry. It provides evidence that shifts in sectoral patterns of innovation over the petroleum industry's lifecycle from the 1970s up to 2005 were dependent on the dynamics of knowledge base complexity (KBC), a key dimension of an industry's technological regime. Accordingly, observed shifts in innovation patterns are understood to be the aggregated strategic response of industry innovators to changes in the technological regime. The article proposes a quantitative method for exploring KBC and Schumpeterian patterns of innovation, and interactions between the two at the industry level. As the industry evolved, its knowledge base moved to higher orders of complexity creating a shift in the Schumpeterian pattern of innovation. Increased KBC was found to alter Schumpeterian patterns from Mark I toward a ‘modified’ Mark II. Instead of coming predominantly from ‘traditional’ established oil operators, technological innovation was increasingly triggered by a new class of emergent integrated service companies – ‘second tier’ systems integrators of the upstream sector able to cope with increased KBC.     

Revealing transactions data to third parties: Implications of privacy regimes for welfare in online markets

We examine the effects of privacy policies regarding transactions (e.g., price/quantity) data on online shopping platforms. Disclosure of transactions data induces consumer signaling behavior that affects merchant pricing decisions and the welfare of platform participants. A profit‐maximizing platform prefers the disclosure policy that maximizes total welfare. Although this policy benefits sophisticated consumers, it harms unsophisticated (myopic) consumers. Consequently, the welfare effects of alternative privacy policies, data breaches, deceptive privacy policies, and opt‐in/opt‐out requirements can differ sharply, depending on the level of consumer sophistication and on other factors such as the prevailing status quo.     

Social Capital,Income Diversification and Climate Change Adaptation: Panel Data Evidence from Rural Ethiopia

The choice between specialisation and diversification of income is driven by multiple, interacting factors, such as economies of scale and scope, risk considerations, context, and household characteristics. Using panel data from Ethiopia, we investigate the role of social capital and the covariate risk of climate change and their interaction. We find that households with greater social capital tend to be more specialised, implying that diversification and informal insurance are substitutes in the mitigation of risk. We also find that this effect is significantly weaker in regions more prone to climate change, which is consistent with the average farmer being aware that informal insurance is not an effective protection against risks that affect the entire social network. We use instrumental variable random effects estimation to account for the plausible endogeneity of social capital and we also establish that our results do not depend on the poorest and most constrained individuals in our sample.     

STEM education in the twenty-first century: learning at work—an exploration of design and technology teacher perceptions and practices

Teachers’ knowledge of STEM education, their understanding, and pedagogical application of that knowledge is intrinsically linked to the subsequent effectiveness of STEM delivery within their own practice; where a teacher’s knowledge and understanding is deficient, the potential for pupil learning is ineffective and limited. Set within the context of secondary age phase education in England and Wales (11–16 years old), this paper explores how teachers working within the field of design and technology education acquire new knowledge in STEM; how understanding is developed and subsequently embedded within their practice to support the creation of a diverse STEM-literate society. The purpose being to determine mechanisms by which knowledge acquisition occurs, to reconnoitre potential implications for education and learning at work, including consideration of the role which new technologies play in the development of STEM knowledge within and across contributory STEM subject disciplines. Underpinned by an interpretivist ontology, work presented here builds upon the premise that design and technology is an interdisciplinary educational construct and not viewed as being of equal status to other STEM disciplines including maths and science. Drawing upon the philosophical field of symbolic interactionism and constructivist grounded theory, work embraces an abductive methodology where participants are encouraged to relate design and technology within the context of STEM education. Emergent findings are discussed in relation to their potential to support teachers’ educational development for the advancement of STEM literacy, and help secure design and technology’s place as a subject of value within a twenty-first Century curriculum.     

Uncertainty,Control, and Karl Polanyi’s Protective Response

Post-Keynesian institutionalist economists like Wallace Peterson and John Kenneth Galbraith recognized that the impact of uncertainty on economic wellbeing depends in part on the degree of control people have over the sources and consequences of it. Given the inability of government and other large institutions to reduce uncertainty or to provide citizens with the ability to manage it, mediating structures are considered as an alternative means of promoting economic security. The article concludes by describing and evaluating several of these alternatives.     

Embedding multinational firms in regional business systems: neoliberal and social‐democratic models in Spain

The paper analyses how regional actors have mobilised to attract and retain foreign direct investment in two Spanish regions with different political approaches to the management of economic issues, including industrial relations. These regions are Madrid, the main pole of attraction of foreign direct investment in Spain, and Asturias, with a large tradition of heavy industry and a greater dependence on a small number of large employers. It finds the regions have adapted to international competition in substantially different manners and considers the alternative reasons why this might be the case, highlighting the role of organised labour both in the inward investment regimes themselves, and in shaping the nature of the different compromises they involve.     

The evolution of scale economies in US banking

Continued consolidation of the US banking industry and a general increase in the size of banks have prompted some policymakers to consider policies that discourage banks from getting larger, including explicit caps on bank size. However, limits on the size of banks could entail economic costs if they prevent banks from achieving economies of scale. This paper presents new estimates of returns to scale for US banks based on nonparametric, local‐linear estimation of bank cost, revenue, and profit functions. We report estimates for both 2006 and 2015 to compare returns to scale some 7 years after the financial crisis and 5 years after enactment of the Dodd–Frank Act with returns to scale before the crisis. We find that a high percentage of banks faced increasing returns to scale in cost in both years, including most of the 10 largest bank holding companies. Also, while returns to scale in revenue and profit vary more across banks, we find evidence that the largest four banks operate under increasing returns to scale.     

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome-Based Business Models

Industrial manufacturers are innovating their business models by shifting from selling products to selling outcome-based services, where the provider (manufacturer) guarantees to deliver the performance outcomes of the products and services. This form of business model innovation requires a profound yet little understood shift in how value is created, delivered, and captured. To address this research gap, our study examines two successful and four unsuccessful cases of this shift. We find that effectiveness in business model innovation hinges on the three process phases that unfold in collaboration with the customers: value proposition definition, value provision design, and value-in-use delivery. We also find that that success is determined by the alignment of specific value creation and value capture activities in each phase: identifying value creation opportunities—agreeing on value distribution in value proposition definition, designing the value offering—deciding on the profit formula in the value provision design, and finally refining value creation processes—regulating incentive structures in the value-in-use delivery. Our process model contributes to the literature and practice on business model innovation by providing a thorough understanding of how alignment of value creation and value capture processes is ensured, whilst paying special attention to their interdependence and the interactions between provider and customer.