Which are the drivers of fixed to mobile telephone access substitution? An empirical study of the Spanish residential market

Using household panel data for the period 2004 to 2009, the percentage of households that engage in fixed to mobile access substitution in Spain is quantified. This turns out to be small: on average 0.35% per quarter (range: 0.02% to 0.79%). Then the drivers of households to substitute are analysed, finding out that the availability of Internet and mobile services previous to the substitution decision and the socio-demographic characteristics of households, such as age, play a more prominent and significant role in explaining fixed to mobile access substitution when compared to other aspects such as the degree and types of expenditure on fixed services.     

Does interdependency affect firm and industry profitability? an empirical test

Strategy researchers have argued that heterogeneity in firms' practices and profitability within and across industries may derive from industry‐level differences in the extent of interdependencies among firms' activities. Theoretical models have clarified how and why differences in the extent of the interdependencies faced by firms across industries may affect the distributions of firm profits, but the specific predictions from these models have not been empirically tested. In this paper, we present what we believe is the first large scale empirical analysis linking differences in the extent of interdependencies across industries to differences in the distribution of firm profits within and across those industries. We use survey data to measure interdependencies systematically across a wide number of industries, thus addressing the primary obstacle to incorporating interdependencies in larger scale empirical work, and find evidence consistent with the theoretical predictions: average profitability is highest in industries with moderate levels of interdependency; the dispersion of profits among firms is higher in industries with more extensive interdependencies; and industries with more extensive interdependencies have a more positively skewed performance distribution. We find that the effect of interdependencies on average industry profitability is similar in scale to the effect of patent protection and industry growth rates, placing interdependency squarely among the strategy field's central concepts. Copyright © 2009 John Wiley & Sons, Ltd.     

Fiber-broadband-internet and its regional impact—An empirical investigation

I analyze a quasi-natural experiment of fiber broadband rollout in a rural German county and investigate the impact on real estate values. I find that there are strong and significant effects of fiber broadband deployment, which indicate relevant personal benefits for customers. These findings add to the literature on the evaluation of broadband infrastructure investment.     

Are individuals entering self‐employment overly optimistic? an empirical test of plans and projections on nascent entrepreneur expectations

This research examines the rationality of the expectations of nascent entrepreneurs. Consistent with conjectures regarding entry into self‐employment, I find substantial overoptimism in nascent entrepreneurs' expectations, in that they overestimate the probability that their nascent activity will result in an operating venture. Further, for those ventures that achieve operation, individuals overestimate the expected future sales and employment. To explain variations in overoptimism, I posit that those individuals who adopt an inside view to forecasting through the use of plans and financial projections, will exhibit greater ex ante bias in their expectations. Consistent with the inside view causing overoptimism in expectations, I find that the preparation of projected financial statements results in more overly optimistic venture sale forecasts. Copyright © 2010 John Wiley & Sons, Ltd.     

Network effects and merger analysis: instant messaging and the AOL–Time Warner case

The AOL–Time Warner merger, announced in January 2000, was and still is the largest merger ever consummated. The merger plan was submitted to the FTC for antitrust review and to the FCC for license transfer review. The FTC approved the merger with conditions relating to open access. The FCC approved the merger subject to a condition (among others) that mandated interoperability for future (but not present) generations of AOL's popular instant messaging (IM) service, based on the potential leveraging of merger assets together with current IM network effects into market power in next-generation IM services. This condition was controversial and represents a new departure in antitrust analysis for industries imbued with network effects. This paper analyzes AOL's IM service and the ability to leverage merger assets into future market power in the context of the FCC condition; counter-arguments are considered and larger lessons for “new economy” antitrust are drawn from this experience and analysis.     

Explaining the African food riots of 2007–2008: An empirical analysis

A sharp escalation in worldwide commodity prices precipitated the global food crisis of 2007–2008, affecting the majority of the world’s poor, causing protests in developing countries and presenting policymakers with the challenge of simultaneously addressing hunger, poverty, and political instability. These food price shocks fomented violent civil responses in some countries, but not others, offering a unique opportunity to assess the factors that contributed to these disturbances. We explore this question empirically with specific reference to Africa, where “food riots” occurred in at least 14 countries. By examining the socio-economic and political conditions facing African countries, we attempt to answer why only some countries in Africa witnessed food riots in late 2007 and early 2008, while others did not. Our empirical analysis demonstrates that higher levels of poverty (as proxied by the Human Poverty Index), restricted access to and availability of food, urbanization, a coastal location, more oppressive regimes and stronger civil societies are associated with a higher likelihood of riots occurring. We also examine three country cases (Egypt, Mozambique, Niger) which represent different circumstances and responses to the food crisis, and identify specific factors that were associated with food protests in each case. Our study highlights the importance of pro-poor policies and investments and improved governance in addressing the problems facing the poor and in helping secure political stability. As the frequency and variability of natural disasters increase in response to climate change, such policies can serve to protect the poor from the debilitating consequences of the resulting shocks.     

An analysis of multi-stakeholder initiatives to reduce food loss and waste in an emerging country – Brazil

This paper aims to investigate the roles adopted by the distinct stakeholders that are engaged in a voluntary initiative to reduce food loss and waste (FLW) in the context of an emerging country. Data were collected by way of participant observation in multi-stakeholder events, observation visits and interviews with 54 food sector stakeholders, and from secondary data. The theoretical contribution of this paper is that it provides a systemic and realistic perspective for tackling FLW, as research in the field usually only focuses on one supply chain agent, or on consumer behaviour. Another contribution that may be replicated in other countries has to do with the role of each stakeholder in identifying the processes with which they are involved for reducing FLW. Activities and actions in a multi-stakeholder initiative change according to their positioning at the institutional or value chain level of analysis. Future studies should consider the extensive interplay that exists between the institutional and value chain levels in the food sector, and how they interact     

Is five too many? Simulation analysis of profitability and cost structure in the Korean mobile telephone industry

Four new nationwide entrants were introduced into the Korean mobile telephone industry provoking intense competition among the five carriers by late 1997. Some assert that there is excessive competition and industry restructuring is needed. In this paper, we analyze the profitability of mobile telephone carriers and the degree to which cost is reduced through M&A, thereby obtaining principal information on the economic incentives for industry restructuring.     

Are EU regional digital strategies evidence-based? An analysis of the allocation of 2007–13 Structural Funds

The ambitious goals of the European “Digital Agenda” need active involvement by regional innovation systems. Effective regional “digital strategies” should be both consistent with the European framework and based on available evidence on the needs and opportunities of local contexts. Such evidence should be used to balance the different components of the Information Society development (e.g. eServices vs. infrastructures; ICT supply and demand), so as to ensure that they can all unleash their full potential. Therefore, EU regions should spend more money to overcome regional weaknesses than to improve existing assets. In this paper we explore the different strategies of the EU's lagging regions through the analysis of the allocation of 2007–13 Structural Funds. Then, we verify whether such strategies respond to territorial conditions by comparing strategic choices made with the actual characteristics of local contexts. Results show that EU regions tend to invest more resources in those aspects in which they already demonstrate good relative performances. Possible causes of this unbalanced strategic approach are discussed, including the lack of sound analysis of the regional context and the path dependence of policy choices.     

Does computer penetration increase farmers’ income? An empirical study from China

The diffusion and adoption of modern information technology provide new chance for China to close urban-rural income gap. This paper uses China's provincial panel data from 2002 to 2013 to investigate the effect of computer penetration on rural residents' income. A public program aiming to connect every village with broadband Internet and other rural facilities provides plausibly exogenous variation in rural residents' availability and adoption of the broadband Internet, which is used to explore the instrument variable for rural computer penetration. The results show that rural computer penetration tends to increase rural residents' income over time, but the average effect remains limited. The dynamic panel threshold effects model, which allows for both the threshold variable and other covariates to be endogenous, is further used to explore the constraints of the income-increase effect of rural computer penetration. It shows that the effect is at least doubled over the average effect estimated from instrument variables method, once the digital divide causes are removed. Our findings have important implications for the government to increase rural residents' income and reduce urban-rural income gap by encouraging rural computer usage and removing the digital divide.     

Giving fish or teaching to fish? An empirical study of the effects of government research and development policies

This study compares how government research and development (R&D) subsidy and knowledge transfer from universities and public research institutions stimulate a firm's new product development. More importantly, we emphasize that the effects of these governmental R&D policies on new product development can be achieved not only directly, but also via a mediating role – a firm's innovation capability. Furthermore, we test how other external knowledge sources (such as knowledge from universities and public research institutions) interact with government R&D support to stimulate new product development. The results, based on an investigation of 270 Chinese firms, suggest that both government R&D subsidy and knowledge transfer from universities and public research institutions enhance new product development. The results also show that although government R&D subsidy and knowledge transfer from universities and public research institutions has a direct impact on new product development, innovation capability does mediate the above relationships. Moreover, unlike the findings that other external knowledge sources have a direct influence on new product development as indicated by the previous literature, our findings suggest that external knowledge sources substitute with the government R&D subsidies and complement with knowledge transfer from universities and public research institutions. The results confirm the old sayings that teaching to fish (knowledge transfer from universities and public research institutions can complement with other external knowledge sources) is much better than giving fish (government R&D subsidies substitute other external knowledge sources). This paper enriches current literature of government R&D support policies to firm new product development by providing empirical evidences.     

Governance mechanisms in domestic and international buyer–supplier relationships: An empirical study

Governance mechanisms are a key element of business relationships. However, little is known about the possible differences between their uses in domestic versus international business relationships. Drawing on empirical data, we investigate three issues. First, we compare the use of five governance mechanisms (contracts, value-creating norms, value-claiming norms, specific investments, and trust) in purely domestic relationships as opposed to relationships with an international component. We also investigate whether customer satisfaction and commitment differ in these two settings. Second, we extend the model of Palmatier, Dant, and Grewal (2007) by adding two distinct types of governance norms—value-claiming norms and value-creating norms—and analyze the interrelationship between the five governance mechanisms as well as their impacts on business customer satisfaction and commitment. Finally, we analyze the moderating role of internationality on relationships between governance mechanisms and customer commitment. Data from a survey of 296 companies support most of the hypothesized relationships.     

Can a powerful CEO avoid involuntary replacement?—An empirical study from China

This study examines the impact of CEO power on forced CEO turnover from five perspectives, namely firm performance, structural power, ownership power, CEOs’ political connections, and tenure power. Using panel data of listed companies in China, this study finds that firm performance has negative effects on forced CEO turnover. Similarly, CEOs’ structural power, political connections, and tenure power can increase their ability to be insulated from involuntary replacement. In addition, two factors of CEO ownership power, the state-controlling shareholder and serving as the representative of the largest shareholder, appear to be effective in reducing the likelihood of forced CEO turnover.     

Is advertising an underappreciated driver of sales growth in B2B markets? Theoretical perspectives and empirical evidence

While firms in consumer markets spend hundreds of billions of dollars on advertising each year, firms in business markets are comparably hesitant to adopt advertising as a means to drive business and generate sales growth. Instead, a widespread belief is that sales success in business markets results from a quality focus and sales force support. Challenging these beliefs, this study proposes that B2B advertising can have effects that are meaningful and unmatched by effects resulting from a quality focus and sales force spending. Furthermore, we hypothesize that B2B advertising can help unlock dormant potentials in the established success drivers. We test the proposed effects empirically, drawing on more than 12,000 observations of the advertising expenses, quality focus, sales force spending, and sales growth of more than 2000 U.S.-based B2B firms between 1990 and 2015. This research provides novel insights for researchers and managers concerning the benefits of B2B advertising spending and the interplay between different success drivers in generating sales growth in business markets.     

Do strategic groups exist? an economic framework for analysis

This paper offers a framework and methodology for resolving the question regarding the existence of strategic groups. We say that a strategic group exists if characteristics of the group affect firm performance independently of firm-level and industry-level effects. We argue that group-level effects are a byproduct of strategic interactions among members, and develop an empirical testing model, based on the ‘New Economics of Industrial Organization,’ to distinguish true group effects from spurious effects. From this model, we derive a series of logically consistent propositions, suggesting that while strategic interactions are critical for a group-level effect on profits, mobility barriers are necessary to preserve both groups and their effects over time. A review of prior empirical studies of strategic groups suggests that the inconclusive nature of prior research has been due more to the lack of a theoretical foundation for empirical analysis than to the nonexistence of groups. To the extent that our methods have been employed, there is limited evidence that a rigorous search for strategic groups may prove fruitful. © 1998 John Wiley & Sons, Ltd.     

An empirical study of manufacturing flexibility of exporting firms in China: How do strategic and organizational contexts matter?

Using evidence from exporting firms in China, this research aims to determine the conditions that foster manufacturing flexibility and the way in which firms support it. The contingency perspective and the competence and capability theory are utilized to develop a framework to enhance the knowledge of internal competence, external flexibility, and manufacturing performance, and the understanding of the moderating roles of strategic and organizational choice on the competence-flexibility and flexibility-performance relationships. Empirical evidence from a sample of 222 export product/market ventures confirmed the main effect that manufacturing, assembly outsourcing, and marketing competencies support a firm's manufacturing flexibility and in turn enhance manufacturing performance. Several notable moderating effects were also identified. Although a strategic emphasis on low-cost manufacturing and long-term contracting weakens a firm's transformation of core competencies into flexible capabilities, specific organizational choices regarding private ownership and direct exporting strengthen the conversion of manufacturing flexibility to superior manufacturing performance.     

Do remedies affect the efficiency defense? An optimal merger-control analysis

This paper examines the optimal use of remedies and the efficiency defense for merger control. We develop a framework in which merger efficiency gains are endogenously determined and are not observed by the Competition Authority. The possibility of an efficiency defense can push firms to design the merger better, leading to greater efficiency gains. Firms can also submit remedies to the Competition Authority: they interact with the efficiency defense, by reducing the firm's incentive to enhance efficiency. At the same time remedies improve the assessment of the merger, in particular by signaling the true level of efficiency gains. We ask to what extent it may be optimal to make use of both instruments simultaneously, and thus discuss the possibility that the Competition Agency refrain from using one of the instruments to try to improve overall merger-control performance.     

How much to make and how much to buy? An analysis of optimal plural sourcing strategies

While many theories of the firm seek to explain when firms make rather than buy, in practice firms often make and buy the same input—they engage in plural sourcing. We argue that explaining the mix of external procurement and internal sourcing for the same input requires a consideration of complementarities across and constraints within modes of procurement. We create analytical foundations for making empirical predictions about when plural sourcing is likely to be optimal and why the optimal mix of internal and external sourcing may vary across situations. Our framework also proves useful for assessing the possible estimation biases in transaction level make‐or‐buy studies arising from ignoring complementarities and constraints. Copyright © 2013 John Wiley & Sons, Ltd.