Development of educational program for production manager leading new perspectives on manufacturing technology

In this paper, we consider the problems associated with the development and management of an educational program for manufacturing managers in leadership roles who are making contributions towards the creation of customer delight as well as customer satisfaction using manufacturing technology. The basic concept combines an intelligent knowledge-based approach with the kaizen activity program within the framework of value creation and comparative advantage models based on a network referred to as Academia, Business, Consultancy, and Government (ABC-G). This educational program, which reflects the characteristics of manufacturing technologies and practices in the Hokuriku District of Japan, was developed in 2005–2006 and the trial education was developed in 2005 and 2006, and a trial run of this program was conducted in 2006 and 2007 in close collaboration with local manufacturing companies and their employees. The results are informative of the effects of educating manufacturing managers in Japan and the problems that will have to be overcome for the continuous improvement of the program.     

Substitution between Mobile and Fixed Telephones in Korea

The stock of mobile telephones has surpassed fixed phones in Korea. Presently, the density is more than 60 of every 100 inhabitants. Thus, the potential for mobile telephones to become a substitute for, and directly compete with fixed telephones, has become evident. The aim of this paper is to examine the impact of rapid growth in mobile telephones on the access demand for traditional fixed telephones. The study shows that a 1% increase in the number of mobile telephones results in a reduction of 0.10–0.18% in new fixed connections and a 0.14–0.22% increase in fixed disconnections. The empirical analysis is carried out with Korean regional panel data for the period 1991–1998. The study is relevant to several important public policy issues.     

Allocation of track capacity: Experimental evidence on the use of priority auctioning in the railway industry

Allocation of track capacity concerns multiple users facing demand indivisibilities, running trains over an inelastic supply of railway tracks. The paper suggests a Vickrey-type mechanism to handle incentive aspects of this technically complex optimisation task. Here, the price for operating a train will correspond to the bids foregone by other operators who are pushed off their preferred routes. The paper reports the results of 11 experimental markets using variations of this mechanism where each market includes up to 10 trading periods, and subjects bid for routes over a highly stylised railway network. The experiments generated solutions that capture 90–100% of potential benefits.     

Identifying Participants in a Price-fixing Conspiracy: Output & Market Share Tests Reexamined

If there is a cartel agreement among a subset of firms in an industry, it should be predicted that all firms in that industry will increase prices. Nevertheless, industry prices alone should not indicate that a particular firm is guilty of that conspiracy. According to the output test and its market share variant – proposed by Blair and Romano – if the output or the market share of the firm that claims to be innocent in the collusive activity rises in response to the price increase, that firm's claim should be accepted as true. Using a collusive variant of the dominant firm model, this paper shows that these are not robust tests to reveal either innocence or guilt, and characterizes cases where they may pardon a guilty firm (Type I error) or indict an innocent firm (Type II error). This paper also shows that a market share test can not be used to prove a dominant firm's intent for predatory pricing.     

Let them go? How losing employees to competitors can enhance firm status

Research summary : Because employees can provide a firm with human capital advantages over competitors, firms invest considerably in employee recruiting and retention. Departing from the retention imperative of strategic human capital management, we propose that certain employee departures can enhance a firm's competitiveness in the labor market. Specifically, increased rates of career‐advancing departures by a firm's employees can signal to potential future employees that the firm offers a prestigious employment experience that enhances external mobility opportunities. Characterizing advancement based on subsequent employers and positions, we analyze data on U.S. law firm hiring and industry surveys of perceived firm status between 2004 and 2013. We find that increased rates of employee departures lead to increases in a firm's prestige when these departures are for promotions with high‐status competitors. Managerial summary : Firms often emphasize employee retention. Employee departures, especially as a result of being hired away by competitors, are often viewed as threats to a firm's competitive advantage. We propose, however, that employee retention need not be an unconditional strategic imperative. We argue that certain employee departures can enhance a firm's competitiveness in the market for human capital by signaling to potential employees that the firm offers a prestigious employment experience, which can help them obtain attractive positions with other employers. Analyzing data on U.S. law firm hiring and industry surveys of firm associates between 2004 and 2013, we find that increased rates of employee departures lead to increases in a firm's prestige when these departures are for promotions with high‐status competitors. Copyright © 2016 John Wiley & Sons, Ltd.     

Estimating the adoption of Bt eggplant in India: Who Benefits from public–private partnership?

The study analyzes ex ante the adoption of insect-resistant Bt eggplant technology in India. Farmers’ willingness to pay (WTP) is estimated using the contingent valuation method. Given the economic importance of insect pests in eggplant cultivation, the average WTP for Bt hybrids is more than four times the current price of conventional hybrid seeds. Since the private innovating firm has also shared its technology with the public sector, proprietary hybrids will likely get competition through public open-pollinated Bt varieties after a small time lag. This will reduce farmers’ WTP for Bt hybrids by about 35%, thus decreasing the scope for corporate pricing policies. Nonetheless, ample private profit potential remains. Analysis of factors influencing farmers’ adoption decisions demonstrates that public Bt varieties will particularly improve technology access for resource-poor eggplant producers. The results suggest that public–private partnership can be beneficial for all parties involved.     

Policy globalization and the “information society”: a view from Canada

The Canadian example suggests that recent shifts in communication policy frameworks should be understood as a transformation in how technology is organized politically, and not simply as a policy reaction to technological innovation. The process is tracked chronologically in three sections: institutional renewal (1993–1994); accelerated vertical slippage between national, regional and global policy levels (1995–1996); and horizontal dispersal of communication policy into new other sectors (1997). Across these stages, a series of convergences characterized by increased fluidity between territorial as well as sectoral jurisdictions are discussed; implications for the understanding of communication policy frameworks within the context of the “information society” project are identified.     

Employee Reactions to Supervisory Direction in Four Types of Firms in Taiwan: The Effects of Company Policy, Peer Consensus and Independent Assessment

Employees in four firms in Taiwan—a small family business (A), a state-owned enterprise (B), a large private corporation (C), and a U.S.-owned venture (D)—and one firm in the U.S. (E) responded to supervisory directions. A's employees were the most compliant, followed by B's, then by C's, D's, and E's. In A and B, employee compliance was impacted by company policy. In C, D and E, employee compliance was influenced by peer consensus. Except for those in A, employees' tendency to accept supervisory direction was enhanced when they assessed the direction as beneficial to their organization.     

Rejoinder : The mixed blessing of domestic support policies

This rejoinder notes the encouraging conclusion in the article by Tim Josling and Richard Barichello (p317–27),¹ that the impact of the policies followed for wheat by the world's main exporters has tended towards stabilizing world markets over the past twelve years. However, placing this conclusion in a wider context, the author believes that assuring world food security will remain dependent on support policy decisions taken for domestic policy reasons and that developed country domestic support policies have had a mixed effect for world markets.     

Risk Sharing Mechanism in Japan's Auto Industry: The keiretsu Versus Independent Parts Suppliers

This study investigates (1) whether risk sharing behavior of subcontractors has changed over the two decades (1973–94); (2) whether there are any differences between keiretsu firms and independent firms in sharing risk; (3) how ownership of its parts-suppliers through minority shareholdings by automakers or sending directors to parts-suppliers affects the suppliers' risk sharing behavior. Empirical results support the risk-sharing hypothesis in general. The keiretsu firms are more risk averse than independent firms in the first period (1973–85). In the second period (1985–94) independent firms become more risk averse than keiretsu firms. This may suggest that the keiretsu system would work as a shock absorber in an unfavorable business environment.     

How are we doing on poverty and hunger reduction? A new measure of country performance

The paper presents a new composite indicator – the poverty and hunger index (PHI) – to measure countries’ performance toward achieving millennium development goal No.1 (MDG1) on halving poverty and hunger by 2015. Building on the statistical structure of the human development index, the PHI combines all five official MDG1 indicators, thereby generating insights on a country’s net progress towards its own goal, as opposed to progress measured by a single yardstick. Nonparametric analysis on the PHI components provides further evidence on the nature of the relationship between poverty and hunger measures, while cross-country results show significant variance in progress between and within regions. An extension of the PHI allows for consideration of the rate of progress made by each country in its own terms; that is, based on where it needs to be to attain all 5 MDG1 targets by 2015. Countries needing priority attention are identified, as well as areas for future research and recommendations for post-2015 initiatives.     

Asymmetric Network Interconnection

We develop a model of competition between interconnected networks,that allows for carriers to differ in size. Under two-partpricing, we show that because of asymmetry the larger network willalways prefer a reciprocal interconnection charge be set at cost.For sufficiently large asymmetry the smaller network will have thesame preference. Under the assumptions of our model a particularly simple regulation is optimal – if carriers cannot agree on the terms of interconnection, the larger carrier is entitled to select the access price which is then applied reciprocally.     

Effects of agricultural market policy on crop production in China

This paper investigates the effects of Chinese market policy on crop production in the reform process. After a brief review of the policy changes due to the reform, the theoretical significance of Chinese market policies for crop production is demonstrated diagrammatically. It is shown that under the current market system the production of main crops is significantly influenced by both market and quota prices. While relatively high quota reduces the influence of market prices on production, relative price changes between competing crops will lead to shifting farmers’ cultivation preferences if inputs are constant. Empirical analysis, based on cross-section data for the period 1985–1997 from the province of Zhejiang, confirms these hypotheses. The effects of policy variables, however, prove to be crop-specific. If the potential of crop production in China is to be better used, an even more market-oriented agricultural policy is required.     

Feeding the famine? American food aid and the GMO debate in Southern Africa

The inclusion of genetically modified maize in food aid shipments to Southern Africa during the 2002 food crisis rekindled debates over agricultural biotechnology. As the region edged ever closer to famine – putting the lives to some 14 million Africans at risk – corporate pundits, government officials and biotech’s critics debated the health and environmental dangers posed by the new technology.By situating the decision to send genetically modified maize to Southern Africa in the context of US–European debates over agricultural biotechnology, it becomes clear that the promotion of biotechnology has nothing to do with ending hunger in the region. Indeed, American food aid shipments to Southern Africa have little to do with the famine at all. Instead, I argue that US food aid policy following the 2002 crisis was intended to promote the adoption of biotech crops in Southern Africa, expanding the market access and control of transnational corporations and undermining local smallholder production thereby fostering greater food insecurity on the Continent.     

Why is This Show so Dumb? Advertising Revenue and Program Content of Network Television

Economists have long debated how advertising should be treated in a rational-choice framework. Using unique data from the broadcast networks’ 1995 Fall Network Season, we find that sitcoms attract premia from advertisers, while news and police programs get discounted. We interpret our findings according to two important theoretical treatments of advertising. Because the broadcast networks forgo advertising-unfriendly program content, the cable channel HBO responds with a deliberate counter-programming niche strategy, explicitly airing programming with “darker” and “more difficult” advertising-unfriendly content.“The networks have essentially by given up on viewers with functional IQ’s.” – Dean Valentine, President of UPNThe views in this paper are my own and do not represent the views of the Federal Communications Commission, its Commissioners, or its staff.     

Up-front Franchise Fees and Ongoing Variable Payments as Substitutes: An Agency Perspective

This article provides evidence on the determinants of the compensation arrangements used in franchise relationships. While the empirical literature has studied two of these compensation arrangements – the royalty rate and the up-front franchise fee – this work expands the analysis to another important source of revenues for franchisors: the sales of inputs to franchisees at prices greater than marginal costs. Consistent with predictions suggested by agency theory, the compensation arrangements studied appear to function as substitutes. The results also reveal that the value of the services provided by franchisors to franchisees strongly affects the compensation arrangements studied, so a capital goal of these arrangements is to recover the costs of the services offered by franchisors.     

Electronic information services : An emerging market opportunity?

This article considers the key market development issues of electronic information services (EIS). Two variables — technology and demand — are used to model the past behaviour of the market (1975–1984) and to propose a process to stimulate EIS market development in the 1990s. The changes in the supply side of the EIS market since 1984 are summarized and interpreted as moves to realize greater market integration. The author concludes by outlining policy implications for the 1990s and noting the need for a shift in emphasis towards demand-oriented measures.     

Viewpoint: “Customized competitiveness” strategies for horticultural exporters – Central America focus with lessons from and for other regions

This paper presents the idea of “customized competitiveness” as a strategy necessary for overall competitiveness in particular in globalized horticulture markets and in the “second round” of globalization that started in the mid/late 1990s. Customized competitiveness is additional and complementary to basic “structural competitiveness” that is the focus of competitiveness debates today and for the past decade. The paper illustrates the need for this new strategy, using the example of Central America, highlighting the severe challenges (similar to those facing other developing regions) it faces in the second round of globalization of horticulture markets, magnified by market liberalization culminating recently in implementation of CAFTA. The paper then illustrates “solutions” by providing examples of cutting-edge programs in various developing countries of de facto “customized competitiveness” in the form of public–private partnerships and the provision of public and semi-public goods, to help their exporters access and succeed in the new markets. We conclude with policy implications for Central America and other developing regions.     

The Strategic Positioning of Store Brands in Retailer–Manufacturer Negotiations

Store brands are the only brands for which the retailer is responsible not onlyfor promotion, shelf placement, and pricing, but also for positioning the brandin product space. We argue that retailers strongly value control over store brandpositioning because they will be unable to source a national brand with theirdesired product positioning. This is because retailers have an incentive to positionstore brands as close substitutes to leading national brands – a location in productspace which other national brand manufacturers would not find profitable. We presentempirical evidence that is consistent with the results of our model.     

The Impact of Product Market Competition on Employment Determination in Unionised and Non-Unionised Firms: Firm Level Evidence for the U.K.

In this paper we investigate the effect of increasedcompetition on employment inunionised andnon-unionised firms. We model product and labourmarket imperfections, and their interactions, in Nashequilibrium. The model predicts that employment lossin unionised firms in the face of increasedcompetition will be lower compared with non-unionisedfirms. This paradoxical outcome results from anoffsetting beneficial employment effect ofcompetition, which eliminates wage mark-ups inunionised firms. We find empirical support for thetheoretical prediction using U.K. firm level data overthe period 1985–1989.