How to price the unbundled local loop in the transition from copper to fiber access networks?

In many countries worldwide access networks are in the transition from copper to fiber access. During the transition phase copper and fiber networks are operated in parallel. All regulators facing this situation of technological change have to decide how to price unbundled access to the copper loop in this transition phase. Should they keep the usual forward looking long-run incremental cost standard charge, or should they move to some different approach? The authors propose to price copper access based on the modern equivalent asset (MEA) of fiber access. Since fiber access is superior to copper access, the cost of fiber access (as a basis for pricing copper access) should, however, be corrected by the performance delta between copper and fiber access.     

A behavioral approach to strategy—what's the alternative?

The strategy field has generally been viewed as somewhat fragmented with the primary ‘fault line’ stemming from the divide between economic and behavioral approaches. It is argued here that this is a false divide as any but the most trivial problems require a behavioral act of representation prior to invoking a deductive, ‘rational’ approach. In this sense, all approaches are behavioral. Once we recognize rationality as a process, then the pragmatic question becomes which among the imperfect mechanisms to guide choice and behavior may be more or less preferred. Such a viewpoint not only serves to help span the chasm of behavioral and economic approaches, but it may also connect the applied normative frameworks and approaches within the field to more theoretically grounded approaches. Copyright © 2011 John Wiley & Sons, Ltd.     

Service transition: A viable option for manufacturing companies with deteriorating financial performance?

When manufacturing firms venture into services, they often do so either in reaction to deteriorating performance or to further enhance their financial position. While extant literature argues that firms are most likely to succeed with strategic change processes out of a healthy position, the majority of manufacturers have started their service maneuver in reaction to deteriorating performance. To date, no empirical studies examine whether a healthy financial situation is a necessary requirement for successful service transition. Drawing on configuration theory and employing qualitative comparative analysis, the present study demonstrates that an increasing focus on services can lead to success for both types of firms. However, depending on their financial situation, firms should tap different resource and knowledge sources to implement the service transition: Whereas healthy companies should focus on customers as a knowledge source, companies in an inferior financial situation need strong links with suppliers to turn their services transition into financial success.     

International experience in the executive suite: the path to prosperity?

Attention is increasingly focused on the potential individual career and firm‐level benefits of international experience for upper level executives. This research examines the relationships between CEO international experience, CEO tenure, firm internationalization, succession events, and corporate financial performance. Results indicate a significant interactive effect between CEO tenure and outside succession on CEO international experience. In addition to a relationship with CEO international experience, there are two additional interactive effects in the examination of corporate financial performance: (1) CEO international experience and the degree of firm internationalization, and (2) CEO international experience and CEO succession. These interactive effects are evident in accounting and market indicators of corporate financial performance. Copyright © 2000 John Wiley & Sons, Ltd.     

Work or Schooling? On the Return to Gaining In‐School Work Experiences

Wages are a composite measure of the return to education and the return to work experiences. Work experiences are often defined as workers who gain experiences on‐the‐job. However, work experiences can also be part of a study curriculum in vocational secondary education. We estimate the return to in‐school work experiences by comparing the Heckman selection model and the Rubin matching model. First, we show that students with in‐school work experiences earn +16% more in the first years of labour than their theoretical peers. Second, we indicate that both empirical models do not appropriately deal with censored observations in the presence of an informal market. Including information on a set of censored observations increases the effect to +22%.     

Can the US transition to digital TV be fixed? Some lessons from two European Union cases

This paper compares the regulatory incentives created by government policies aimed at promoting the transition to digital TV in the US, France, and the UK. It argues that US policies have aggravated coordination problems and even created incentives for terrestrial broadcasters to retard the transition in order to receive compensations from wireless telecommunications providers for vacating frequencies before the statutory deadline. The institutional analysis framework is applied to explain the observed policy variations across countries as well as the factors retarding the transition in the American case. The conclusion suggests possible remedies to accelerate the transition to digital TV in the US based on the British experience.     

Sketching: Friend or Foe to the Novice Designer?

Previous research by one of the authors showed that novice designers do not use sketching as a way to generate, develop and communicate design proposals, but move immediately to three-dimensional modelling. Neither do they generate multiple solutions.     

Sketching: Friend or Foe to the Novice Designer?

Previous research by one of the authors showed that novice designers do not use sketching as a way to generate, develop and communicate design proposals, but move immediately to three-dimensional modelling. Neither do they generate multiple solutions. The follow-up study described here addressed the questions: Does teaching two-dimensional modelling enable Grade 7 pupils to better express their ideas and organize their thoughts? What role does discussion play in pupils' attempts to generate a design proposal? Does the use of contextualising items make a difference to pupils' success with designing? Eight Grade 7 pupils were drawn from each of two classes. One class had received instruction in sketching; the other served as a control group. Each group of eight pupils was divided into single-sex dyads. The eight dyads were videotaped while producing a solution to a common design brief. Analysis of the data has provided insights into the effects of instruction on the proposals produced by pupils. Additionally, their ability to generate, develop and communicate design ideas is enhanced by both the dynamic relationship between pupils' talk and 3D modelling and the way the task is contextualised. This revised version was published online in July 2006 with corrections to the Cover Date.     

A Management Capacity Constraint? Obstacles to the Development of the Overseas Chinese Family Business

Overseas Chinese family business (OCFBs) have gained a reputation for cost efficiency, responsiveness, and flexibility as original equipment manufacturers (OEMs) and as pioneers of the mainland's industrialization. This success is based upon a relatively simple ‘personally managed’ organization operating within a network of kin and ethnic relations. To what extent are mid-sized OCFBs now able to develop the capacity to compete in new strategic domains and manage more complex value chains? The paper examines competing views of the OCFBs organizational and competitive capabilities. The strategies of 50 mid-sized Hong Kong based manufacturing firms are used to provide insight into the questions of capabilities upgrading and long-term competitiveness in personally managed enterprises. In contrast to prevailing cultural and institutional accounts of OCFB behavior, the paper suggests that current (western) theory of the family firm and of organizational networks provides an alternative explanation of observed investment strategies and organizational structure.     

Expanding the sales professional's role: A strategic re-orientation?

Based in social exchange theory, this study empirically examines a model of salesperson participation in strategic communication activities. Results show that performance of sales professionals often stems from roles and activities that extend beyond the traditional selling function. Findings indicate that managers' orientation toward change, the firm's selling strategy, and salesperson's trust in their manager all play an important role in the salesperson's likelihood to engage in greater strategic communication activity. Participation in these activities is linked to individual selling performance. Thus, the study provides evidence that expanding the salesperson's role beyond the selling function can add firm value.     

Paths to Common Ground? A Rejoinder to Dewey's Response

While subsequent discussion in this Review has failed to reconcile the merger policies proposed by Dewey and Keyes, it has suggested that they are not as far apart as they seemed at first reading. It now appears that both writers advocate a serious critical consideration of the efficiencies claims advanced by proponents of otherwise unacceptable mergers. Moreover, there may be a possibility that Dewey's special large-firm merger control could be defended on grounds which would not conflict with Keyes' proposal but would simply complement it.     

Public Private Partnerships in food industries: A road to success?

Recent food safety crises have led to the development of new collaborations between public authorities and food operators in monitoring food safety. To date, most of the literature has analyzed these collaborations as linked to a regulatory process and as a mean to comply with regulatory standards. In this paper, we take another stand and consider them as specific embedded institutions (meso-institutions) analysing them as Public Private Partnership specific to food safety provision. This new perspective allows us to take into account both information asymmetries and the industry-wide dimension of such programmes. Our overall intention is to provide a general enriched theoretical framework to highlight aligned incentive mechanisms in such partnerships. We then apply our framework to two case studies in order to better understand the main mechanisms at work that could explain their specific functioning and resilience. The two case studies are the cattle traceability system in Quebec (Canada) and monitoring programmes for pesticide residues in the French imports industry of fresh produce.     

Married to the firm? A large‐scale investigation of the social context of ownership

Research summary : Using a large sample of private firms across Europe, we examine how the social context of owners affects firm strategy and performance. Drawing on embeddedness theory and the institutional logics perspective, we argue that embeddedness in a family, in particular the nuclear family, can strengthen identification and commitment to the firm, but can also induce owners to behave more conservatively. Consistent with this argument, we find that family‐owned firms have higher profit margins, returns on assets, and survival rates compared to single‐owner or unrelated‐owners' firms, but also invest and grow more slowly, hold greater reserves of cash, and rely less on external debt. These differences are most pronounced when the two largest shareholders are married. Our results highlight the key role of marital ties in explaining differences in behavior and performance among firms. Managerial summary : Despite the prevalence of the married‐couple ownership structure in firms, little research has been dedicated to understanding how these firms are managed and perform. We examine the behavior and performance of firms owned by married couples in a large panel of closely held Western European firms. We find that married‐owner family firms are managed more conservatively relative to firms with unrelated owners and even to other family‐owned firms. In particular, married‐owner family firms invest and grow more slowly and rely less on external finance. However, they also exhibit greater performance stability and higher profitability. Our findings suggest that social relationships among owners have a large impact on firm strategy and performance, and highlight some potential trade‐offs to performance when married couples control firms. Copyright © 2015 John Wiley & Sons, Ltd.     

Britain and BrExit: Is the UK more attractive to supervisors? An analysis of the wage premium to supervision across the EU

We studied which European Union (EU) economy was more attractive prior to Brexit for employees in supervisory positions. We estimate the extra wage that supervisors earn relative to their subordinates—the wage premium to supervision (WPS)—at different quantiles of distribution of wages for 26 European economies. We find that the UK rewards supervisors more than other EU economies. Moreover, the WPS increases with wage and so increases wage inequality. Over 10% of the WPS depends on the national economic context. We discuss the implications for immigration and policymakers in relation to the post-Brexit process.     

Race to the top: Does competition in the DSL market matter for fibre penetration?

High speed broadband creates potential productivity gains and has a positive impact on economic growth. Achieving Europe's broadband access objectives will require large scale investment in next generation broadband networks, and it is imperative that an appropriate investment climate is created to encourage fibre network rollout. This study considers whether and how competition in the DSL market affects the incentives of operators to invest in the deployment of high-end fibre optic networks. Most earlier research on the drivers of investment in broadband technology has focused on the effect of mandatory access policies, such as local loop unbundling, or competing infrastructures. We posit that competition in the DSL sector may also influence fibre penetration, possibly to a considerable extent. We find that the relationship between service-based competition and fibre penetration is non-linear: a lack of or severe DSL competition is correlated with a negative effect on fibre penetration, but if a moderate degree of competition is already present in the market, more service-based competition may positively influence fibre penetration. The scale of these effects however varies with the openness of the DSL market: operators' incentives to invest in fibre appear to be more sensitive to changes in DSL competition if there is extensive local loop unbundling.     

Così fan tutte: A better approach than the right to be forgotten

In this article, we argue in favor of a macro-societal approach to protect people from the potential harms of personal information online. In the tension between information and privacy, “the right to be forgotten” is not an appropriate solution. Such a micro, individual-based answer puts the burden of protection on each person instead of on external entities that can abuse such knowledge. The personal responsibility to delete personal data is challenging because of the leakage of data that happens through the connections we have with others, many of whom do not share the same privacy preferences. We show that effective deletion is almost impossible (the eternity effect), and is unfair due to the resource burden it entails when users try to achieve it, while at the same time ensuring the potential benefits we can derive in the future from having personal information online. In addition, deletion requests can negatively affect other people who are in the same location and time frame and may not want to have their information deleted. Collectively, we argue also that society is worse off because these circumstances lead people to construct sanitized personas while perpetuating a culture of distrust. Given that the harm is real, we describe technology, societal norms, and the implementation of an anti-discrimination directive for the right to a personal life, and we provide evidence on how anti-discrimination efforts in the past have succeeded when legislation leads to the development of infrastructures that help to enforce them. The dissemination of personal information through public sites and social media is, as Mozart suggested in Cosi fan tutte, gradually educating humanity about human weaknesses.     

On the relation between multimarket contact and service quality: Mutual forbearance or network coordination?

Research summary : We reconsider the relationship between multimarket contact and product quality in the airline industry by arguing that multimarket contact has both a negative mutual forbearance effect on quality and a positive network coordination effect on quality. Multimarket contact increases the frequency of contact between firms, and this anticipated future interaction promotes cooperation. In network industries, especially small firms may want to cooperate in order to increase the attractiveness of the composite product. By using size as a moderating variable, we indeed find a consistent positive effect of multimarket contact on product quality for small airlines. We show that this effect can be attributed to network coordination and that this effect generally dominates the negative mutual forbearance effect in a recent period. Managerial summary : Firms with sales in multiple geographical markets likely encounter each other with mutual respect (i.e., live and let live) because aggressive behavior in one market may lead to retaliatory responses in other markets. Such responses weaken competitive pressures on price and quality. Insofar these firms sell complementary products, they may however also coordinate and improve their joint product offering, resulting in better quality for the consumer. This paper shows that this positive effect of cooperation may dominate the negative competition‐reducing effect, depending on the size distribution of firms. The reason is that small or nondominant firms have a stronger incentive to produce compatible products than large or dominant firms with already a strong position in the (global) market. Copyright © 2015 John Wiley & Sons, Ltd.     

Agricultural market access: A moving target in the WTO negotiations?

This article analyzes the impact of multilateral market access liberalization of the Doha Round agricultural negotiations. At the center are the effects of variations in the magnitudes of tariff cuts, different tariff cutting formulas, the tariff capping as well as different numbers and width of tariff bands. The simulations are conducted with an extended version of the GTAP model and the GTAP database (6.0) including bound and applied rates and a module to cut tariffs at the 6-digit tariff line level. The results reveal that the heights of the tariff cuts and the kind of tiered formula applied are most important for the outcome of the Doha Round, while the width of tariff bands and the tariff capping only have a moderate influence on the countries’ trade pattern and welfare. In contrast, the number of tariff bands is not important for the results.     

Competition aspects of pricing access to networks: What are the issues?

The introduction of competition between service providers in industries with some sort of network—such as telecommunications, but also gas and electricity—has created the regulatory problem of access pricing. Where a service provider requires access to a network owned by another firm, how much should that other firm be allowed to charge for access to its network? The problem arises where no agreement is forthcoming through normal market negotiations. The paper discusses the question of access pricing in telecoms, and the issues involved in actually deriving a price fixing mechanism for access to a network.