Induced innovation and agricultural development

Dr Ruttan reviews the five general models in the literature on agricultural development: the frontier, conservation, urban- industrial impact, diffusion and high pay-off input models, and finds them lacking. He outlines a model of agricultural development which treats technical change as endogenous to the development process, rather than as an exogenous factor operating independently of it. This leads to an emphasis on the strong relationship between technological and institutional change and a call for institutional innovation that will result in a more effective realisation of the new technical potential.     

The timing of market entry and firm performance: A perspective of institutional theory

Integrating literature from institutional theory with that from market entry research, we study the effects of a firm's early marketing entry on other firms' behaviors and performances. In addition, we also consider the moderating effect of other institutional factors, such as the firms' home-country culture and institutional environments in an emerging economy. Based on a review of all the relevant research, we develop a theoretical model with testable hypotheses. With empirical data from multi-national enterprises (MNEs) competing in China's insurance-service market, we test the hypotheses. Our data analyses show evidence that, other things being equal, early market entry can cause institutional imitation, in terms of market diversification, among imitators. At the same time, the imitation can be moderated by the home-country culture of the MNEs. In addition, the imitation of early market entry firms has some significant effects on the performance of imitators, including less deviation from the industry norm and better financial performance.     

The multinationalisation of South African telecommunications firms into Africa

The study investigates the main factors considered by telecommunications firms when making a decision to undertake Foreign Direct Investment (FDI) into Sub-Saharan Africa (SSA). This encompasses the reasons for investing, the methods of entry into the identified market and the factors influencing their decision. The methodology employs a survey questionnaire which was sent to telecommunication firms representing 80% of the revenue generated by this sector in SSA. The research reveals that market size, regulatory environment and government policy are the three most important factors influencing the decision to undertake FDI. Furthermore, the main reasons for deciding to enter SSA are for market and profit growth due to saturation in their existing markets, as well as for diversification of risk. They demonstrate the key competencies that South Africa Multinational Enterprises (MNEs) have in navigating the complexities of doing business in institutional voids. The liability of being from the relatively small emerging market of South Africa and operating in a country of institutional uncertainty has allowed South African companies to internationalise into markets that other MNEs will not venture into and thus turn a liability into an advantage.     

The Diffusion of Employment Practices of US‐Based Multinationals in Europe. A Case Study Comparison of British‐ and Italian‐Based Subsidiaries

A number of approaches to the diffusion of employment practices within American‐based multinational companies (MNCs) can be discerned. In this paper, two theoretical approaches are contrasted: a ‘country‐of‐origin’ approach in which the influence of the home country is mediated by national features of host‐country institutional environments; and a power resources or strategic choice approach that emphasizes the autonomy of local actors within MNCs and their capacity to shape the diffusion of employment practices. Using a case study comparison of three Italian and two British‐based subsidiaries owned by an American MNC, the paper examines factors and patterns of diffusion of employment practices from the parent company to the local subsidiaries. The argument is put forward that company‐specific features enhance the strategic power of the subsidiary firm within the wider corporation, thus complementing institutional host‐country characteristics in shaping the diffusion of employment practices abroad. Hence, organizational as well as institutional effects contribute to creating the space that the various actors across host countries possess for protecting their interests and for exercising power on the terms and conditions of the diffusion.     

Investigation of factors affecting the diffusion of mobile telephone services: An empirical analysis for Vietnam

This paper analyzes the diffusion of mobile telecommunications services in Vietnam and examines how telecommunications regulation and potential substitute/complement services affect the growth of the number of mobile telephone subscribers. Using a logistic diffusion model, it is found that fixed telephone services are a complement while data services have a negative relation to mobile telephone services in Vietnam. As for regulation, the policy of introducing competition has been found to be the most effective in influencing the adoption of mobile services. Another important result is that the estimated potential market is roughly 76% of the total population. The findings suggest that suitable regulation that guarantees competition in the mobile telecommunications market in a developing country such as Vietnam is one of the most important factors for a positive diffusion process.     

Market design in Chinese market places

The market design (MD) approach to institutional analysis provides the analytical tools to evaluate endogenous institution building in local market places irrespective of the institutional setting of the national economy. Implicit in this analysis of endogenous institution building at the market place level is the recognition of institutional diversity, which none of the conventional forms of institutional analysis can provide. We extend the MD approach from its original game theory perspective to examine three market places in China: township and village enterprises, equity joint ventures, and public utilities. We conclude that the MD approach (1) provides the analytical tools and criteria to evaluate whether or not market places are robust and sustainable, (2) links market behavior at the market place level, which is characterized by size, coordination, and trust problems, with general level considerations based on transaction costs, and (3) suggests that functioning market places are achievable, even if the formal institutions of the general economy are weak or partially missing. Our research has policy implications and opens new avenues for research into the emergence of markets.     

The impact of socialist imprinting and search on resource change: a study of firms in lithuania

Firms in transition economies experienced a large exogenous shock in their external business environment in the late 1980s when these economies moved from a socialist‐oriented economic environment to a more market‐oriented economic environment. This paper examines the following research question in the context of this change: What are some factors that influence transition economy firms to successfully change their operating know‐how or knowledge sets to reflect the demands of their new environment? Building on some core ideas from literature on organizational imprinting, knowledge‐based view of the firm, and firm search, we suggest that two factors have a profound impact on a firm's ability to change. The imprinting effect of firms' prior socialist institutional and market environment adversely impacts their ability to change their operating knowledge. At the same time, firms that search for new knowledge from distant sources (located in mainly non‐socialist countries) are able to successfully change their knowledge to meet the demands of the new market‐oriented economy. Both of these aspects also have joint interdependent effects on the success of change; distant search mitigates some of the adverse impact of socialist market imprinting, but that is not the case for the impact of socialist institutional imprinting. These findings have interesting implications for both researchers and practitioners involved in transition economy settings. Copyright © 2006 John Wiley & Sons, Ltd.     

The impact of earnings expectations on corporate downsizing

Research Summary: We propose that due to financial market pressures, managers are forward‐looking in their search and decision processes and focus on meeting performance targets set by the financial community. Using panel data on S&P 100 companies, we find that pressure felt by management to meet the analyst consensus earnings estimate influences the extent of corporate downsizing. Moreover, our results show that high levels of institutional investor stock ownership and CEO power attenuate managers’ sensitivity to financial market pressures, while high levels of analyst coverage increase their sensitivity. Managerial Summary: In this study we examine how financial market pressures influence managers’ downsizing decisions. We argue that investment analysts’ earnings estimates represent important performance targets to which managers aspire. If firms fail to meet analysts’ expectations, the stock price will suffer. This study shows that managers utilize corporate downsizing to address the potential shortfall between a firm's future performance and the analyst consensus earnings estimate. In addition, we find that managers’ concerns over meeting analysts’ earnings estimates are influenced by various contextual factors such as institutional investor stock ownership, CEO power, and high levels of analyst coverage.     

制度创新与经济增长——一个理论分析框架及实证检验

任何经济增长过程都是在一定的制度环境中进行的，有必要将制度因素纳入经济增长理论当中。在新古典经济学框架下，本文通过理论模型分析，认为稳态下的经济增长率跟制度创新有着紧密的正向关的关系。在理论分析的基础上，本文基于1978～2012年的省际面板数据，利用半参数估计和线性回归估计方法，实证分析结果表明：国家财政干预的增强、国有经济的强化和垄断作用加强从整体上抑制了我国以及不同地区的经济增长，提高市场开放度和对产权的保护程度则对经济增长产生了积极的正向促进作用，制度差异是引起我国区域经济增长差异的重要因素之一，制度创新仍是当前我国经济增长的关键。     

An exploratory study of factors affecting the failure of local small and medium enterprises

There is increasing recognition of the potential contribution of local small and medium enterprises (SMEs) towards employment and economic growth in Singapore. Unfortunately, SMEs tend to have a high mortality rate. A survey was conducted among owners or managers of local SMEs to identify factors perceived as important in affecting business failures. The research results indicate that endogenous factors were viewed by respondents as more critical in causing SME failures than exogenous factors. Important exogenous and endogenous factors in specific areas were identified.Lau Geok Theng is Senior Lecturer, Department of Marketing, National University of Singapore, 10 Kent Ridge Crescent, Singapore 0511, tel: (65) 772-3179, fax: (65) 779-5941. Jasmine Lim Wang Boon is with the United Overseas Bank, Singapore.     

The critical role of the institution-led market in the technological catch-up of emerging market enterprises: evidence from Chinese enterprises

Innovation scholars have, in the past, applied the concept of ‘windows of opportunity’ to study latecomer firms’ catch-up. Previous research treats this concept as three separate aspects, i.e., technological, institutional and market. The role of government was seen as being concerned only with institutional windows of opportunity. However, governments in emerging markets exert influence not only through traditional means of institutional support but, also, via market-driven mechanisms. The former refers to state procurement, resource provision, legislation, and administrative control, whereas the latter is concerned with demand creation, resource allocation, and the regulation of market orders. This multifaceted nature of government in promoting economic growth, guiding technological development, and influencing enterprise behavior remains under-researched. Yet, it plays a crucial role in the catch-up of emerging market enterprises. Therefore, based on innovation studies literature and an institution-based view of international business, the present research proposes a new construct, termed the institution-led market, with the aim to encapsulate the complex role of government in the catch-up of emerging market enterprises. The institution-led market is defined as a unique type of market that is well-timed and strategically created by the government and supported by institutional policies and resources. A large database of 259 Chinese firms in 37 industries was created and analyzed using a hierarchical logistic model to empirically test the relationship between the institution-led market and technological catch-up of emerging market enterprises. We demonstrate that the institution-led market positively affects the catch-up of emerging market enterprises; furthermore, it significantly moderates the effect of technological discontinuity on the catch-up. Finally, the theoretical contributions and managerial implications of the present research are discussed.     

An investment model of durable good diffusion

Existing studies that deal with the diffusion of durable good innovations have been criticized for their lack of an explicit testable theory of new product growth. This paper attempts to remedy this situation by providing a theoretical model of market penetration of new durable goods derived from The basic assumption that potential users of the new intermediate product attempt to minimize costs. The resulting model defines a time path of short-run equilibrium market shares determined by the cost characteristics of both the new innovation and the equipment that it is designed to replace, the age distribution of the existing capital stock, and the growth rate of the adopting sector.     

城市“农改超”制度创新与市场组织化的耦合分析

当社会经济环境发生变化，现存制度安排下存在无法获得的潜在利润，传统的市场形式不适应组织发展的目标要求，产生了农产品连锁超市经营替代传统城市农贸市场交易的制度创新过程。并且这一过程伴随着市场交易组织的生成和演进，市场组织化的努力和新的制度规则的确立都是通过交易组织的组织规则的确定和组织的绩效的改进实现的。因此，“农改超”的过程表现为制度创新和组织创新，是制度创新与市场组织化彼此耦合的发展过程，     

Institutional maintenance work and power preservation in business exchanges: Insights from industrial supplier workshops

This paper aims to offer new theoretical and empirical insights into power dynamics in an industrial supplier workshop setting. Theoretically, it advances an institutional perspective on supplier workshops as an important venue in managing, preserving and instituting industrial market power. Based on a detailed ethnographic analysis of an industrial workshop setting, this article investigates the institutional maintenance work of Retail Co. in preserving the power dynamics of market dominance in business exchanges and market structures. Our findings revealed three previously unreported insights into the subtle, but nonetheless pervasive power from institutional maintenance work in an industrial workshop setting. First, the institutional workshop work comprised a cultural performance; constituting socialization practice through a performance game, the power of numbers in field comprehension and an award ceremony. Second, the institutional workshop work mobilized projective agency, stipulating, directing and appealing for the instituting of distinct market rules and collective identities. Finally, the institutional workshop work increases supplier docility and utility via the regulative technologies-of-the-self to enhance business planning, operations and market decision-making practice, without necessarily being seen to be disciplinarian.     

Environmental factors influencing the management of key accounts in an Arab Middle Eastern context

Within the sales and marketing literature, it is recognised that a range of external factors can influence how companies in the business-to-business field manage business relationships within national and across international borders. However, there have been very few studies that explore the influence of the external environment on key account relationships, especially within the context of emerging economies. This study draws on the network approach and contingency theory to identify and highlight the influence of external environmental factors on the management of inter-organisational relationships with key customers in emerging economies in the Arab Middle East region. It is based on an extensive qualitative enquiry that utilises 50 in-depth semi-structured interviews conducted in Jordan with endogenous and Western firms. It concludes that key account practices within an Arab context are shaped by a number of contingencies that are embedded in broader institutional contexts and the business environment, which may challenge the adoption of company-wide universal key account management policies across borders.     

Acquisition announcements and stock market valuations of acquiring firms' rivals: A test of the growth probability hypothesis in China

To examine the impact of acquisition announcements on the stock market returns of rivals of the acquiring firms, we propose a growth probability hypothesis: when an acquisition is announced, it signals the potential for future growth in the acquirer's industry to the market, resulting in positive stock market reactions to rivals of the acquiring firms. We test the growth probability hypothesis with a longitudinal sample of Chinese domestic and cross‐border acquisitions during 1993–2008. The results provide robust support for this hypothesis as a means to explain market reactions to rivals of acquiring firms. We also empirically test and negate alternative theoretical explanations advanced in prior literature to explain positive market reactions to rivals of the target firms. Copyright © 2012 John Wiley & Sons, Ltd.     

Diffusion of digital mobile telephony: Are developing countries different?

Factors determining the diffusion of digital mobile telephony across developed and developing countries are studied with the aid of a Gompertz model. After controlling for other factors, the speed of diffusion per se is not significantly different between the two groups of countries. Standards competition hinders and market competition promotes diffusion in both groups. Various factors are, however, more important in a developing country context: having a large potential user base, accumulating network effects, being open, commanding a high (non-telecom) technological level, and introducing innovation(s) complementing mobile telephony. Late entrants experience faster diffusion promoting cross-country convergence.     

建筑市场主体合格性和制度环境浅析

建筑市场的主体和制度环境是建筑市场的基石，只有形成合格的主体和适当的制度环境，建筑市场才能得以发展和完善，才能得以从根本上杜绝工程领域腐败和工程质量低劣的现象。     

Price Competition and Market Structure: The Impact of Cartel Policy on Concentration in the UK

This paper examines the impact of firms' conduct on market structure. It studies the evolution of concentration in UK manufacturing following the abolition of cartels using a theoretical framework based on Sutton's theory of market structure and a panel data set of four-digit industries over 1958–1977. The econometric results suggest that the intensity of price competition has a positive effect on concentration in exogenous sunk cost industries as well as in advertising-intensive and R&D-intensive industries. The concentration-market size relationship, while negative in exogenous sunk cost industries, breaks down in industries with high advertising or R&D intensity.