Business Creation and the Stock Market

We claim that the stock market encourages business creation, innovation, and growth by allowing the recycling of "informed capital". Due to incentive and information problems, start-ups face larger costs of going public than mature firms. Sustaining a tight relationship with a monitor (bank, venture capitalist) allows them to finance their operations without going public until profitability prospects are clearer or incentive problems are less severe. However, the earlier young firms go public, the quicker monitors' informed capital is redirected towards new start-ups. Hence, when informed capital is in limited supply, factors that lower the costs for start-ups to go public encourage business creation. Technological spill-overs associated with business creation and thick market externalities in the young firms segment of the stock market provide prima facie cases for encouraging young firms to go public.     

Entry,market turbulence and industry employment growth

This paper investigates the relationship between industrial dynamics in terms of firm entry, market turbulence and employment growth. Do entry of firms, the composition of industry dynamics (net entry) and market turbulence (entry and exit) influence industrial employment growth? This paper provides an empirical investigation, using unique data for 42 disaggregated Swedish industrial sectors during the period 1997–2001. It is hypothesised that the importance of entering firms, net entry and market turbulence may differ significantly across industries. A quantile regression method is used in order to detect industrial differences in the response to industrial employment growth. The empirical evidence shows that, on the one hand, firm entry and market turbulence have a positive effect on employment for fast growing industries and that the effect is larger for high growth industries. On the other hand, the composition of industry dynamics in terms of net entry rates has a more dispersed effect across all industries, even though the effect of net entry is larger for high growth industries.     

When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry

An industry's dominant logic is the general scheme of value creation and capture shared by its actors. In high technology fields, technological discontinuities are not enough to disrupt an industry's dominant logic. Identifying the factors that might trigger change in that logic can help companies develop strategies to enable them to capture greater value from their innovations by disrupting that logic. Based on analyzing the changes that biotechnologies and bioinformatics have brought to the drug industry, we identify and characterize three triggers of change that can create disruptive business models. We suggest that, in mature industries experiencing strong discontinuities and high technological uncertainty, entrants' business models initially tend to fit into the industry's established dominant logic and its value chains remain unchanged. But as new technologies evolve and uncertainty decreases, disruptive business models emerge, challenging dominant industry logics and reshaping established value chains.     

Lower bounds of concentration in Taiwan's manufacturing industries: do exports matter?

This article aims to test Sutton's ‘lower bounds’ approach on the analysis of market concentration in a small open economy like Taiwan. Exporting, which is important to a small open economy, is also considered in order to investigate the role of foreign competition on the market structure. Using a stochastic frontier approach, the estimate findings are in accordance with Sutton's predictions, whereby the lower bounds for high advertising and/or R&D-intensive industries are higher than those for low advertising and/or R&D-intensive industries in Taiwan. At the same time, the lower bounds of concentrations for export-intensive industries do not differ significantly from that of nonexport-intensive industries. The deviations from the lower bound are explained by industry characteristics such as the cost disadvantage ratio, the share of small and median-size enterprises, turnover rate and growth rate.     

Implementing a technology strategy in developing countries: The experience of the Indonesian rolling stock industry

Integration of business and technology strategies is an attractive approach for industries in developing countries. However, to be successful, these strategies cannot be implemented according to a company's objectives alone regardless of the involvement of other players. Furthermore, consideration of interrelated technologies should be included if a product resulting from the strategy is expected to perform well and be sustainable. This article attempts to give a broader view of factors to be considered in implementing business technology strategies in developing countries. Supporting evidence is given from the rolling stock industry in Indonesia, which has been implementing a type of business technology strategy.     

我国烟草商业市场结构与绩效的实证研究

烟草行业作为一种特殊的行业,自从1982年实行烟草专卖制度以来,为我国的经济发展做出了巨大贡献,成长为国民经济发展的支柱产业。作为烟草行业的一个重要分支——烟草商业,承担着烟草制品的经营和销售,对烟草制品最终实现经济价值具有举足轻重的作用。本文从实证的角度分析了烟草商业1999-2003年间的市场结构和市场绩效。     

ICT growth effects at the industry level: A comparison between the US and the EU

This is an empirical study on the growth impact of Information and Communication Technologies using industry-level data for the US and the EU industries over the period 1980-2000. A panel data approach is employed to estimate the ICT effect using the system GMM and the pooled mean group panel data estimators. The results vary depending on the period, the region, and the type of industry considered. The GMM estimates suggest a significant ICT effect on growth during the 90s both in the US and in the EU. This effect for the EU was strong in the early 90s and weakened afterwards, as opposed to the US where it strengthened in the late 90s. The results of the pooled mean group estimator confirm that the long run growth contribution of ICT was significantly positive in the industries of both regions and over the entire period 1980-2000. However, it seems that the productivity effects of ICT are mainly present in the industries which are either ICT producers or heavy ICT users.     

The growth effect of democracy and technology: An industry disaggregated approach

The theoretical and empirical sides of democracy-growth literature fail to offer a consensus on the impact of democracy on growth. This paper provides a disaggregated manufacturing approach that reveals different effects of democracy across industries within countries. I surmise that the interplay between democracy and technological development is crucial to the economic performance of industries. A panel dataset of 61 manufacturing industries from 72 countries between 1990 and 2010 is employed, along with a wide variety of democracy measures. The results point to a technologically-conditioned effect of democracy. Political regime changes towards democracy are growth-enhancing for industries close to the World Technology Frontier but have a negative effect on backward industries. This evidence is robust to specification changes and alternative estimation techniques, and prevails once the possible dynamics of manufacturing growth are tackled.     

The extent and cyclicality of career changes: Evidence for the U.K.

Using quarterly data for the U.K. from 1993 through 2012, we document that the extent of worker reallocation across occupations or industries (a career change, in the parlance of this paper) is high and procyclical. This holds true after controlling for workers׳ previous labour market status and for changes in the composition of who gets hired over the business cycle. Our evidence suggests that a large part of this reallocation reflect excess churning in the labour market. We also find that the majority of career changes come with wage increases. During the economic expansion wage increases were typically larger for those who change careers than for those who do not. During the recession this is not true for career changers who were hired from unemployment. Our evidence suggests that understanding career changes over the business cycle is important for explaining labour market flows and the cyclicality of wage growth.     

BOD7 production function of the Finnish pulp and paper industry

Traditional neoclassical production theory analyzes the relationship in a production process between inputs and outputs which have a positive market value for the producer. The externalities of production, which have nonpositive market values, are discarded or included as the cost in a cost function. This paper studies the relationship between biological oxygen demand (BOD) emissions, an output of nonpositive value, and traditional factors of production, that is, investments, labor, output, and raw materials. An emissions production function is theoretically presented and empirically estimated with data from the Finnish pulp and paper industry. The approach is based on the observation that it is the minimization of effluents rather than, or together with, the maximization of yields, that increasingly defines the technological frontier of production processes. The empirical function estimation demonstrates the validity of the proposed novel modeling approach.     

基于客户价值分析的增材制造商业模式研究

近年来，增材制造（3D打印）技术因其定制化、低成本、快速成型等特点广泛应用于航空航天、汽车等领域，具有广阔的发展前景。据预测，2018—2022年全球增材制造产业复合增长率将达到26%，年增长率可达19.63%。基于增材制造的技术特性和商业模式构建原理，从客户价值角度深入分析个性化（交互程度）、价格、时间3个维度及7种商业模式，以此构建增材制造（3D打印）商业模式体系，并基于“以客户为中心”的市场现状选取3种商业模式体系分析其内在逻辑，以探求如何利用增材制造的商业特性实现供应链上下游资源整合，进而寻找客户价值提升路径。     

How corporate cultures coevolve with the business environment: The case of firm growth crises and industry evolution

This paper shows how cognitive human dispositions that take effect at the level of an individual firm's corporate culture have repercussions on an industry's evolution. In our theory, the latter is attributable to evolving corporate cultures coupled with changes in a firm's business environment. With the help of a formal model of evolving corporate cultures, we demonstrate how firms can establish a cooperative cultural regime that yields competitive advantages in an innovative, fast changing environment. Depending on within-firm social learning processes and cognitive constraints of human agents, organizations then reach a critical cognitive firm size in their development beyond which the level of cooperation deteriorates rapidly—they systematically face a growth crisis. Organizations successful in such an environment and reaching a critical technological size may, however, reap economies of scale in a later, mature and stable business environment with altered corporate culture. Furthermore, we relate these findings to empirical evidence on firm survival and performance in different industries, the evolution of organizational structures, and technological advancements in production technologies, and we identify some determinants of market structures.     

贸易增长、劳动力市场刚性与产业间劳动力转移——基于面板数据门槛效应模型的实证研究

劳动力市场刚性的存在是决定国际贸易能否促进产业间劳动力转移的关键因素之一,然而现有的实证研究却忽视了劳动力市场刚性的决定性作用。本文基于国外文献的度量方法构建劳动力市场刚性和产业间劳动力转移的度量指标,并利用面板数据门槛效应模型研究当劳动力市场刚性存在差异时贸易增长对产业间劳动力转移所产生的不同影响。本文的研究发现,当劳动力市场刚性程度低于门槛值时,贸易增长能加速产业间劳动力转移;而当劳动力市场刚性程度高于门槛值时,贸易增长则会阻碍产业间劳动力转移。由此得出结论,欲使中国的贸易增长起到促进产业间劳动力转移的效果,必须先在劳动力市场领域进行改革,消除劳动力市场刚性。     

Scenario development for an evolving health insurance industry in rural India: INPUT for business model innovation

The article discusses the use of Delphi-based scenarios for the development of business model innovations in emerging markets. Motivated by insights from information processing and institutional theory we present a scenario development process combining a PEST (political, economic, socio-cultural, and technological) and a stakeholder approach. We exemplify its use for the evolving health insurance market in rural India and present how our approach can be used to study possible future developments relevant for business model innovations. Key insights are that NGOs might play a crucial role along with the regulatory support of the Government of India and significant advances in mobile payment technologies.     

Catch-up strategy of latecomer firms in Asia: a case study of innovation ambidexterity in PC industry

ABSTRACT

Over the last decade, more and more East Asian firms have moved beyond imitation and are delivering innovative products and services to the market. This study examines (a) how a latecomer firm in East Asia transformed its business model in pursuit of manufacturing its own brand and (b) how it managed its exploration and exploitation of the market and technology in response to growth and competition. Given the lack of research on firms transitioning from contract manufacturing (CM) to own-brand manufacturing (OBM), this study offers fresh insights into how Acer, a leading Taiwanese original equipment manufacturer (OEM), has pursued new ways of creating value using an innovation ambidexterity strategy to maximise its customer value and boost performance.

Acer is chosen for this case study because of its significance and impact in the global PC industry. Data were collected through interviews and secondary data analysis. Our findings show that innovation ambidexterity is a deliberate transition process, taking firms years to reshape their business models. Our findings also present a viable solution to sustainable competitive advantage and keys to firms’ renewal in face of environmental change. This study contributes to the innovation management literature, and the use of the innovation ambidexterity framework examines how firms explore new ways of creating and capturing value and face challenges.     

专业市场与产业集聚互动研究:来自浙江的案例

在规模报酬递增的行业,如果专业市场对该行业产品存在强需求,往往会导致同类企业在市场周边的集聚,同时集聚经济的形成使得企业能够为专业市场提供低价格的商品。与此同时,产品技术含量增加导致甄别商品质量的难度增加,由此造成的专业市场交易效率下降将降低对采购商和集聚区企业的吸引力,同时集聚区产业组织的变化促使领导型的企业绕开专业市场组织企业间的分工,并建立自身的产品营销体系。     

Real options as a component of the market value of stocks: evidence from the Spanish Stock Market

This paper aims to examine how investors’ expectations about the value of a firm's real options are reflected in the price of its stocks. If the real-option approach is correct, then the efficient-market hypothesis predicts that stock prices will reflect the available information relative to the real options held by firms and their ability to identify, acquire, maintain and exercise them. The role of investment irreversibility, operating and financial flexibility, business and geographical diversification, and size are examined as indicators of a firm's real option strategy. The empirical analysis of a panel of 101 companies listed on the Spanish Stock Exchange during the period 1991–1997 provides evidence consistent with predictions. The market value of the real option portfolio is significantly and positively related to business diversification, asset irreversibility and operating leverage, and negatively related to size. In addition, financial leverage and geographical diversification are not significantly related to our proxies for the market value of real options. These results are robust even after controlling for industry, and alternative measures of investment flexibility and business diversification.     

The dynamics of market structure and firm-level adjustment to India's pro-market economic liberalizing reforms, 1988–2006: A Time Varying Panel Smooth Transition Regression (TV-PSTR) approach

This paper for the first time employs the Time Varying Panel Smooth Transition Regression (TV-PSTR) approach to model the dynamic adjustments of firms and the evolution of industrial structure in the bigger setting of decades against the backdrop of India's dramatic liberalizing reform starting from 1991. Using Indian manufacturing firm data, it finds that the transition of market structure and productivity after liberalization did follow a smooth transition process. Instead of the previously assumed instantaneous ‘big-bang’ shift just after reforms, it actually took years for the Indian manufacturing industries start to react to the reforms, and the transitional impact of reforms took approximately four to eight years to complete. There is strong evidence of increased competition after the transition, with shrinked returns to scale (RTS) in most industries except for leather and chemical industries. The results on total factor productivity (TFP) are mixed: most import-competing industries, which suffer most from the shrinking of market size experienced no change or decreasing TFP growth; whereas the export-oriented industry, as the industry which benefits most from economy of scale, enjoyed a huge TFP growth following the reforms.     

Predicting US county economic resilience from industry input-output accounts

Resilience is defined as a system’s ability to initially resist and then recover from a shock. Here we apply this concept to examine the performance of U.S. counties during the Great Recession. The response of local economies to manmade and natural shocks is hypothesized to depend on the centrality of local industries within the economy, or how well connected they are to the other industries. We first calculate a centrality value for each industry using the national Input-Output accounts. We then ‘step down’ these values to the county level using industry employment data. We then test empirically whether local economies containing more centralized industries were more resilient, using a resilience measure that compares the local employment rebound and decline during the Great Recession. Our results suggest that measures of economic centrality adopted from the study of complex networks provide new insights when applied to the fields of regional science and spatial analysis, and economic growth more generally.     

Market orientation and performance in the biotechnology industry: An exploratory empirical analysis

The purpose ofthis study was to conduct an exploratory investigation into the link between market orientation and business performance in the biotechnology sector. Based on the nature and character of the biotechnology industry, a multi-faceted scale of market orientation was derived from a preuiously tested and refined measure of the construct. Data were generated from 62 biotechnolog firms and a variety of market orientation-performance relationships were investigated, alongside other potential effects on the different dimensions of business performance. The findings indicate that market orientation is positively and signficanttly associated with three of the four performance measures examined. Implications of our findings for biotechnology industry managers are discussed and limitations of the study as well as future research directions are addressed.