Is there a U-shaped relation between competition and investment?

We consider a two-stage game with cost-reducing investments followed by a linear differentiated Cournot duopoly. With competition inversely parameterized by the extent of product differentiation, investment in the subgame perfect equilibrium is typically minimal for intermediate levels of competition. Laboratory experiments partly confirm the U-shape in a reduced one-stage version of the game. In the two-stage version, there is no evidence for positive effects of moving from intermediate to intense competition.     

How do internal capabilities and external partnerships affect innovativeness?

How do a firm’s internal capabilities and external partnerships contribute to its product and process innovativeness? How do their impacts differ? Based on the theoretical framework of exploitation and exploration, we develop an integrative model linking the impact of both internal capabilities and external partnerships on product and process innovativeness. Survey responses from Taiwanese biotechnology firms indicate that research and development (R&;D), marketing, and manufacturing capabilities have different effects on product and process innovativeness. Of the four types of external partnerships, only partnerships with universities and research institutes seem to add value, whereas partnerships with suppliers, customers, and competitors do not contribute to innovativeness. Moreover, marketing capability and customer partnerships have a positive interaction effect on product innovativeness, while manufacturing capability and supplier partnerships have a positive interaction effect on process innovativeness.     

Are family‐friendly workplace practices a valuable firm resource?

We study the determinants and consequences of family‐friendly workplace practices (FFWP) using a sample of over 450 manufacturing firms in Germany, France, U.K., and U.S. We find a positive correlation between firm productivity and FFWP. This association disappears, however, once we control for a measure of the quality of management practices. We further find that firms with a higher proportion of female managers and more skilled workers, as well as well‐managed firms, tend to implement more FFWP. Conversely, a firm's environment does not have a significant impact on the FFWP it provides. © 2010 The Authors. Strategic Management Journal published by John Wiley & Sons, Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.     

More communication is not always better? The interplay between effective communication and interpersonal conflict in influencing satisfaction

Effective communication on a personal level plays an important role in developing a long-term buyer–seller relationship, but the process of interpersonal communication may be conflictual. Drawing on the interaction approach, the present study investigates the interplay between effective communication and interpersonal conflict in influencing satisfaction and argues that a high level of effective communication not only diminishes the negative impact of relationship conflict on satisfaction, but also suppresses the positive impact of task conflict on satisfaction. Surveying data from 298 procurement professionals revealed that as the level of effective communication increases, the negative impacts of relationship conflict on satisfaction decrease, but the positive impacts of task conflict on satisfaction also decrease. Therefore, effective communication is found to be beneficial for improving purchasers' perceived satisfaction, but the timing of the task conflict, along with the low levels of relationship conflict, is a critical factor to affect the efficiency of effective communication.     

How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model

How externally acquired resources may become valuable, rare, hard-to-imitate, and non-substitute resource bundles through the development of dynamic capabilities? This study proposes and tests a mediation model of how firms’ internal technological diversification and R&D, as two distinctive microfoundations of dynamic technological capabilities, mediate the relationship between external technology breadth and firms’ technological innovation performance, based on the resource-based view and dynamic capability view. Using a sample of listed Chinese licensee firms, we find that firms must broadly explore external technologies to ignite the dynamism in internal technological diversity and in-house R&D, which play their crucial roles differently to transform and reconfigure firms’ technological resources.     

Is there a virtuous circle relationship between innovation activities and exports? A comparison of food and agricultural firms

This study examines the existence of an interrelationship between innovation decisions and exports for food and agricultural firms as such a relationship could be the source of competitive advantages. Thus, taking as a theoretical basis the focus provided by the Resource-Based-View, the innovation and export decisions taken from 2006 to 2011 by 165 agricultural firms and 783 food companies operating in Spain (Europe) are examined here. The results of the bivariate probit and matching models used indicate a bi-directional nature of these decisions in the case of food companies and a positive though not bidirectional one in the case of the agricultural firms. Furthermore, a certain persistence is seen in the use of these decisions in both types of firms. For food companies, capital intensity and size are also determinants of innovation and exports. From the viewpoint of the decisions taken by individual firms, the bidirectional relationship could involve significant pressure in terms of the larger volume of both technological and human resources required. Agricultural and food policy decisions should incentivize these decisions given that in order to operate successfully in the global market it is necessary to acquire these competitive advantages, which also favor the growth of the agriculture and food trades.     

Do resource differences between manufacturers and suppliers help or hinder product innovation of manufacturers? The moderating role of trust and contracts

It is a common practice of manufacturers to involve suppliers in new product development (NPD). Extant literature indicates that supplier integration has mixed effects on manufacturers' NPD and the contradicting findings result from either the external contingent factors or the tactical integration practices. We argue instead that the mixed effects are rooted in resource differences between manufacturers and suppliers. Further, we examine the functions of trust and contracts as the resource integration and coordination mechanisms to manage the effects of resource differences on product innovation of manufacturers. Based on a survey among 189 manufacturing firms, our research shows that resource differences follow an inverted U-shaped effect on product innovation of manufacturers and that trust strengthens while contract complexity attenuates the curvilinear relationship. As such, our research extends the existing body of literature to account for the divergent outcomes of supplier integration from the perspective of resource differences. Moreover, it demonstrates the double-edged effects of trust and contracts as devices of resource integration and coordination. Our research offers useful research and managerial implications.     

Why has multilateral space and spectrum resource management become more difficult?

This paper explains why the coordination of satellite orbits and spectrum use among nations may become more contentious and protracted. The potential for greater risks, delays, and conflicts may occur, despite treaty-level commitments by most nations to promote the peaceful uses of outer space and access to radio spectrum and satellite orbits free of signal interference and collision risk. Heretofore, specialized sectors of the United Nations (“UN”) have worked effectively in forging multilateral consensus on these matters.Since the onset of artificial satellite technology, the UN has created five space-related treaties covering such issues such as freedom of exploration, liability for damage caused by space objects, the prevention of harmful interference with space activities and the environment, the notification and registration of space activities, exploitation of natural resources in outer space and settlement of disputes. The International Telecommunication Union (“ITU”), a specialized agency of the UN, has largely achieved the goal of preventing harmful signal interference, formulating technical standards promoting equipment compatibility, and establishing uniform, operational rules of the road. Until now, month long ITU spectrum planning conferences have reached closure on both mundane and critical matters, albeit at a slow and methodical pace.The paper explains how several chronic and emerging factors challenge the successful record of multilateral consensus building on space and spectrum resource management issues. The probability of collisions of spacecraft with other objects, including space debris and harmful signal interference has increased, because the United States has opted to make domestic satellite rules and frequency allocations and in advance of final ITU consideration. Additionally, initiatives by China and Russia to expand the ITU’s mission to include elements of Internet governance could promote balkanization of Internet access and recognize the sovereign right of individual nations to surveil and control access to broadband networks.The paper assesses whether and how UN agencies can continue to establish timely and effective policies and procedures for reducing space debris and the potential for spacecraft collisions, and preventing harmful signal interference. The paper concludes that China, Russia, and the U.S., should renew efforts to promote collegiality, consensus building, and longstanding, shared goals at UN and ITU conferences.     

Where can capabilities come from? network ties and capability acquisition in business groups

While strategy researchers have devoted considerable attention to the role of firm‐specific capabilities in the pursuit of competitive advantage, less attention has been directed at how firms obtain these capabilities from outside their boundaries. In this study, we examine how firms' multiplex network ties in business groups represent one important source of capability acquisition. Our focus allows us to go beyond the traditional focus on network structure and offer a novel contingency model that specifies how different types of network ties (e.g., buyer‐supplier, equity, and director), individually and in complementary combination, will differentially affect the process of R&D capability acquisition. We also offer an original analysis of how other aspects of network structure (i.e., network density) in business groups affect the efficacy of network ties on R&D capability. Empirically, we provide an original contribution to the capabilities literature by utilizing a stochastic frontier estimation to rigorously measure firm capabilities, and we demonstrate the value of this approach using longitudinal data on business groups in emerging economies. We close by discussing the implications of our supportive results for future research on firm capabilities, organizational networks, and business groups. Copyright © 2010 John Wiley & Sons, Ltd.     

Organizational capabilities and business performance: When and how does the dark side of managerial ties matter?

Though the dark side of business-to-business relationships exists at both the firm and personal level, recent research evidence suggests that the theoretical conceptualization and empirical investigation concerning the latter is still under development. Building upon theoretical perspectives of organizational capability, organizational networking and social capital theories, this study investigates the boundary conditions of personalized business-to-business relationships (managerial ties) on business performance. Specifically formulated hypotheses are tested using the perceptions of senior executives in 137 Taiwanese firms operating in a variety of industrial sectors. Our study extends extant literature by revealing that the dark side of managerial ties is evident in the perceived management capability-political ties-performance and technology capability-business ties-performance interplays. More importantly our survey results are corroborated by evidence from interview results with twelve senior executives. Such findings collectively demonstrate the dark side of political ties (governmental interference in employment, blockage of information flow as well as conflicts of interest), and business ties (reciprocal obligations, time consuming factors and maintenance costs).     

Governance by targets and the performance of cross-sector partnerships: Do partner diversity and partnership capabilities matter?

Research Summary: This study examines the effectiveness of targets as a tool for the contractual governance of cross-sector partnerships. Applying a difference-in-differences methodology, we find that the use of explicit targets within performance contracts is an effective means for improving partnership outcomes, especially where partner diversity and partnership capabilities are high. Furthermore, we find evidence that target intensity is associated with stronger partnership performance. These findings suggest that contractual forms with explicit targets may be a particularly successful approach for enhancing the public value created by cross-sector partnerships. A downward turn in performance following the removal of targets lends further support to this conclusion. Managerial Summary: Cross-sector partnerships have become a vital means for creating value in pursuit of the public interest. In particular, the effective management of these partnerships is thought to hold the key to addressing the strategic and organizational challenges posed by major social and environmental issues, such as big data and climate change. In this article, we combine data on waste recycling from 2003 to 2014 with information on performance contracts between local cross-sector partnerships and higher levels of government in England to quantify the impact of governance by targets on the performance of those partnerships. The benefits of target-setting for partnership performance that we identify are even stronger when partner diversity is high and partnership capabilities are strong. We discuss the managerial and policy implications of our findings.     

The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?

One of the most controversial regulatory issues in Europe (and elsewhere) is whether the emerging next-generation access (NGA) infrastructure should be subjected to cost-based access regulation or whether at least a temporary removal of ex ante obligations (“regulatory holidays”) should be granted. Likewise, the role of NGA-specific state aid policies is increasingly capturing the attention of policy makers and the academic literature.     

Are Interactive TV-Pioneers and Surfers Different Breeds? Broadband Demand and Asymmetric Cross-Price Effects

We consider two different qualities of broadband access, one that simply means greater access speed to Internet applications and content, and a premium version that also gives access to interactive TV services. Based on a market survey we find that potential consumers of this premium broadband access do not consider basic broadband Internet access as a substitute. The price of basic broadband does not constrain the price that may be charged for the premium broadband that allows for interactive TV services.     

Are Employers Omniscient? Employer Learning About Cognitive and Noncognitive Skills

Do employers recognize noncognitive skills at the beginning of a career or is there a learning process? Does learning transfer perfectly across employers or is there a degree to which learning resets as employees change jobs throughout their careers? This paper uses data from the National Longitudinal Survey of Youth, 1979 to incorporate measures of noncognitive skills into a model of symmetric employer learning described originally by Altonji and Pierret ( 2001 ) and nested in a model of asymmetric employer learning as in Schönberg ( 2007 ). I find evidence that employers reward self‐esteem, internal control, and schooling initially, while rewarding cognitive skills and motivation over time.     

What Explains the Union Membership Gap between Migrants and Natives?

This article explores the differences in unionization rates between migrant and native‐born workers in 23 European countries. It explores whether individual characteristics or contextual factors explain the variation across countries in the degree of trade unions’ inclusion of migrant workers. The analyses show that individual characteristics cannot explain the variation in the difference between migrant and native unionization rates. Characteristics of the industrial relations regime in the country of destination, in particular the institutional embeddedness of trade unions, affect the likelihood that migrants join trade unions as compared to native workers.     

Are SNAP benefits adequate? A geographical and food expenditure decomposition

The Supplemental Nutrition Assistance Program (SNAP) provides resources to supplement household food expenditures in order to achieve a nutritious diet. Determining the amount of support required - or extent of food expenditure poverty -- entails comparing available resources for food to a nutrition-determined threshold. Clearly the value of the threshold will affect the degree of food expenditure poverty. If the threshold value is inaccurate, the calculated degree of poverty will be inaccurate. USDA uses a threshold for setting SNAP benefits that does not vary geographically or temporally, so consequently (food expenditure) poverty may be understated or overstated in different regions and time periods. This article compares food expenditure poverty estimates for SNAP participants when geographical differences in the threshold are ignored versus not ignored. In addition, the article decomposes household food expenditures into Food-Away-From-Home (FAFH), Food-at-Home (FAH), personal funded FAH, and SNAP funded FAH in order to assess the degree to which each of these contribute to reducing food expenditure poverty. The general findings are that all food expenditure poverty measures are worse when geographical differences are taken into account. In addition, the analysis shows that FAH expenditures, and in particular SNAP FAH expenditures, contribute the most to reducing food expenditure poverty in SNAP households. The policy implications are that food expenditure poverty is currently underestimated in the US by ignoring geographical differences in thresholds, but the food expenditure poverty would be even worse without SNAP benefits. Geographical adjustments to the national threshold could help reduce food expenditure poverty across regions.     

Corporate governance and environmental performance: is there really a link?

Corporate governance scholars are increasingly interested in firms' social and environmental performance. Empirical research in this area, however, has moved forward in an uncoordinated fashion, producing fragmented and contradictory results. Our paper seeks to address this situation by adopting a fact‐based research approach that comprehensively explores the link between corporate governance and environmental performance. Specifically, we aim to understand how the relationships between and among the firms' owners, managers, and boards of directors influence environmental performance. We are particularly interested in understanding the interactions among these three key sets of actors. In the end, we offer some observations about governance practices and discuss the implications for theory. Copyright © 2012 John Wiley & Sons, Ltd.