Factors Affecting European Food Retailers' Internationalisation

Abstract

This paper aims to identify the critical factors that support European food retailers' internationalisation via an investigation of the importance of Dunning's eclectic paradigm advantages (ownership, location and internalisation). Senior managers from seven firms that operate in the Greek food multiple retail sector were interviewed, and three propositions were put on test.

In general, the findings indicate the critical role of the internalisation advantage during the international expansion of European food multiple retailers into that market.

The findings also reveal that this advantage is the main superior and sustainable competitive element that European food multiple retailers possess when competing with local firms. The latter can be considered as an extension to the findings of previous studies that have exclusively emphasised the importance of ownership advantage factors in the course of the retail internationalisation process.     

Commercial Strategies in the Olive Oil Bottling Sector in Spain

Abstract

The main objective of this study is to analyse the olive oil bottling sector in Spain, applying the strategic group methodology to a group of firms from the sector. The study is divided in four sections:

? Identification of the strategic groups, using multivariate statistical techniques.

? Characterization of the groups, analysing their internal structure, delimiting and explaining their strategies.

? The positioning.

? And differences in the results of the groups.     

Concept Optimisation in Innovation Through Conjoint Analysis

Abstract

The objectives of this study were to identify the optimal extrinsic and intrinsic attributes for a range of chilled nutrientenriched orange juice beverages; and to evaluate the contribution of advanced concept optimisation research techniques to new product design and the strategic marketing of innovative functional beverages. A conjointbased survey was administered in both Dublin and Cork between May and September 2004. The results suggested that firms should not rely solely on functionality to leverage a competitive advantage when developing functional beverages. Advanced concept optimisation research techniques contribute towards effective knowledge management in the new product development (NPD) process.     

Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh

The impact of economic liberalization reforms on the productive performances of manufacturing firms remains a contentious issue in the literature. This paper attempts to contribute to the debate by empirically estimating productivity growth of Bangladesh food manufacturing using firm level data before and after reform. Empirical results show that the share of output growth was accounted for by input growth in most sectors of this industry. In some sectors, the estimated rate of total factor productivity (TFP) growth is negligible or even negative. Decomposition of the TFP growth shows that technological progress plays a significant role in TFP growth across firms within the sub-sectors of this industry. Empirical results also show that the relative contribution of capacity realization to TFP growth is not substantial in inhibiting the industry's high and sustained growth. These dismal performances indicate that the industries responded a little to the implementation of economic reforms.     

Developer behaviour and development control

Summary

Studies by the North Carolina group established the decision modelling approach to study urban growth. These studies established the central role played by developers in the process, and the rational and adaptive behaviour of developer decision‐making. Events have since changed the developer's decision environment: the growing complexity and uncertainty of the development control process and the changing structure of the development industry towards larger and more integrated firms.

This author argues that if developers are truly rational and adaptive there should be some observable and stable relationship between their structure and operation and their performance in the development control process. This paper reports the findings of a case study which examines such relationships in the subdivision approval process in Scarborough, Ontario. Thirteen developer/development variables were tested. The major finding is that firm size was the most important variable. Large firms did not do well in negotiation but they took much less time in implementing the conditions of approval and in starting the building work. It is further argued that such behaviour is compatible with the financial, production and marketing characteristics of development firms.     

The Evolution of Wood-based Industries in Brazil and their Means of Securing Wood

This paper analyses the evolution of wood-based industries in Brazil and evaluates the methods they use to secure wood. Only industries that consume roundwood are analysed. These industries are grouped into three categories: charcoal-based industries; paper and pulp industries; and lumber and panels industries. The structure-conduct-performance paradigm together with transaction cost theory and game theory are used in the analysis. Special attention is paid to historic changes in the wood-based industries' structures, technologies, locations and market orientations brought on by changing wood availability. This paper also analyses the different ways that a predicted wood scarcity will affect each wood-based industry. The paper ends by suggesting an alternative policy to increase the supply of roundwood in the market and, consequently, support the continued viability and expansion of wood-based industries in Brazil.     

Factors influencing the decision to hire contract labour by Indian manufacturing firms

ABSTRACT

Over a third of workers employed in the Indian formal manufacturing sector are ‘contract’ workers – hired through the services of labour contractors, facing lower wages and no job security in relation to regular workers. We investigate the role of a variety of factors that influence the decision of employers to hire in contract workers, using information from a specially commissioned survey of manufacturing firms. While there are immediate cost advantages that tilt firms towards hiring in contract labour, a counterforce has employers favouring regular workers in firms that have a large proportion of their workforce concentrating on production activity – probably instances where long-term human capital investment by regular workers is important for the firm.

Abbreviation: CLA: Contract Labour (Regulation and Abolition) Act, 1970 ASI: Annual Survey of Industries NIC: National Industrial Classification MSME: Micro, Small and Medium Enterprises SEZ: Special Economic Zone ICRIER: Indian Council for Research on International Economic Relations     

Innovation in Agro-Foods: A Comparative Analysis of Value Chains

ABSTRACT

The innovative activity of firms has been linked to the introduction of a new product or process associated with the development or application of new technological knowledge. New products generally contain innovative techniques that increase the quality of goods. New processes are based on the use of new technologies to increase the efficiency of production. However, the exclusive link between technology and innovation has been criticized for various reasons. It provides a restrictive vision considering innovation as part of the manufacturing and services sectors. Innovation in firms affects not only the development and application of new technologies but also the adoption and the reorganization of business processes, internal organization, external relations, and marketing. The literature in the field of management emphasizes the importance of integrating product, process, and organization to translate new ideas into market success. Thus, to obtain a complete picture of the innovative efforts of firms in the agro-food industry, the concept of innovation has been extended to both technological and nontechnological innovations. This analysis provided evidence of innovations used by agro-food firms. It also identified latent demand for future innovation.     

Technological intensities in East and Southeast Asian electronics firms: Does network strength matter?

This paper examines the importance of network strength (NS) on the technological intensities (TI) of electronics firms. TI was disentangled into the categories of human resource (HR), process technology (PT) and R&D (RD) intensities, and the differences between foreign and local firms. The results show that firms in Korea and Taiwan endowed with superior NS enjoy significantly higher skill intensity, TI and RD than firms in Malaysia and Thailand, which have inferior NS. There were no obvious differences in HR practices between foreign and local firms in the four countries. Local firms enjoyed higher TI and RD than foreign firms in Taiwan. There was no statistical difference involving all the technological categories between foreign and local firms in Korea. Foreign firms in Malaysia enjoyed statistically superior TI compared with local firms. Local firms in Thailand showed higher TI and PT than foreign firms. TI and RD of firms are strongly correlated with NS, which showed a stronger impact on TI and RD among local rather than foreign firms. The superior NS of Korea and Taiwan has helped firms participate in higher technological activities and pay higher wages than firms in Malaysia and Thailand.     

The Impact of Technology Accumulation on Technical Efficiency: An Analysis of the Sri Lankan Clothing and Agricultural Machinery Industries

This paper examines the effects of technology accumulation on firm-level technical efficiency in the Sri Lankan clothing and agricultural machinery industries, using cross-section survey data. Econometric analysis of the economic effects of technology development in developing countries is limited and this paper seeks to address this gap in the literature. The analysis shows simple adaptive technical change to have a significant and positive effect on efficiency in both industries. In addition, variables relating to technological skills and training also emerge as significant determinants of firm-level efficiency.     

The simple analytics of agricultural production quotas

Abstract

The literature on the theory of supply management is disparate. The aim of this paper is simply to bring it together in a largely non‐mathematical way. The Cochrane Proposal, which was the first real exposition of how a supply control policy might operate, is reviewed. The paper then focuses on production quotas in the short and long runs and examines the impact of uncertainty.     

Structural Adjustment and International Migration: An Analysis of the Thai Clothing Industry

Abstract

This paper examines the structural adjustment process using evidence from the Thai clothing industry, with a view to informing the policy debate about international migration. The analysis is based on in-depth interviews with 50 clothing firms in Thailand during November 2009–February 2010. The key finding is that not all firms opt to hire unskilled foreign workers. The differences in company characteristics between firms that hire foreign workers and those that do not are clear. The latter are likely to be relatively large in size (in terms of both employees and sales), perform better and actively undertake upgrading activities. The former are typically struggling to maintain their profit margins, are relatively small and do not adequately invest in upgrading activities. Interestingly, hiring foreign workers is not the first response of firms, but reflects a tightening in the labour market and the fact that these companies have not yet successfully undertaken process upgrading. Allowing unskilled foreign workers in on a temporary basis with appropriately designed measures would be a win–win solution for labour-importing and exporting countries, as well as for the migrants themselves. The paper raises concerns about imposing one-size-fits-all policy measures in managing the flows of unskilled foreign workers.     

Technical efficiency relative to a stochastic cost frontier for the England and Wales dairy sector

It has been acknowledged in the literature that productive efficiency in grain production in China has substantially improved in the post-reform period, particularly in the early 1980s. Since then, there have been several policy changes in China, which have affected the growth of the sector. Specifically, the spectacular growth of rural industries has attracted significant physical and human capital from agriculture. It is in this context that Brown's warning of China soon becoming the world's number one importer of grain has raised an important question of whether China has reached its grain production potential. Analysis of the 1994 farm household survey data indicates that the majority of the sample farmers is reasonably technically efficient in grain production but that productivity can be increased further even with the existing technology.     

Trade Reforms and the Efficiency of Firms in India

In this paper, we analyse the impact of reforms on manufacturing efficiency in India. The sector chosen--the cotton textile industry in India--is a very large employer and exporter and also has considerable historical significance. Its response to the reforms therefore is being watched with some concern. The paper concludes that while there was considerable dispersion in efficiency levels before the reforms, this dispersion has decreased since the reforms. To analyse this, we estimate a best practice frontier for the industry and then measure efficiency as the distance from this frontier. We find that efficiency has increased because the reforms have influenced other factors such as market shares, exports and imports and capital-labour ratios. Our results also indicate that geography--the location of the firm within a state and its proximity to a major urban centre--influences the efficiency levels of firms within it.     

Segmentation of the Industrial Market for Food Commodities- A Conjoint Study of Purchase of Vegetable Oils in the Mayonnaise and Margarine Industries

Abstract

The purpose of the study presented in this article is to examine whether the concepts developed in the area of industrial buying behavior can add to the understanding of commodity purchasing behavior, and segmentation of commodity markets. The industrial market for vegetable oil was chosen as the outset of the study, because it is characterized by the appearance of changing demands and technological opportunities, which potentially can lead to differentiation possibilities.

The article describes a framework for the study of industrial buying of food commodities and the results of a conjoint study based on interviews with oil purchasers in the margarine and mayonnaise industries in Denmark, Sweden, Germany, the United Kingdom and Switzerland. The main result of the study is that the price is an omnipotent decision criterion, when vegetable fats and mayonnaise producers buy vegetable oil, but also that product and supplier criteria can be used to segment the market, if the price premium is held within limits.     

Effect of Production Process and Attitudes on the Intent to Buy Sustainable Beef

Abstract

Previous studies on food consumption explore limited dimensions of the sustainable food production process. A model of consumer concern over the agricultural production process was developed to assess the influence of environmental attitudes, product involvement, and brand equity on the intent to buy sustainable beef. Interviews with experts, two focus groups, and a literature review were used to propose a scale for production process concerns. A survey of 725 beef consumers was conducted to test eight hypotheses. Results suggest that product involvement and concerns over the production process are related to attitude towards the environment and intent to buy sustainable beef. Moreover, as a result, the consumer bears a positive attitude towards sustainable consumption and is more likely to buy a sustainable product. Meanwhile, the rejected hypothesis refers to the relationship between brand equity and purchase intention. This new conceptual model may be validated with other food commodities.     

The wellsprings of work: The USA and the UK

Summary

The results of research on the US economy are discussed. It is based on a file of 5.6 million business establishments which is used to study how each business evolves. Underlying relatively slow changes in the aggregate totals was a set of large flows, and substantial ‘churning’. Most regions in the USA lose about 8 % of their jobs each year, and the healthiest economies have the highest losses. Small firms were significant creators of new jobs. Studies in the UK found that the contribution of small firms to employment generation is small, that the rate of new firm formation depends upon whether a region is dominated by large firms, that subcontracting, cheap premises and a good general environment are important. Births and deaths of businesses balanced each other at around 8 % each per annum, but some regions were declining because they were not sharing in the growth side of the equation, as in the USA. One difference between the USA and the UK is in terms of micro‐ and macrostability. Microstability is that of the individual job and business, and macrostability that of the economy as a whole, and the two are in inherent conflict. The choice between these two forms of stability is a very painful one, and a price must be paid either way.     

Characteristics of Successful Southeastern U.S. Agribusiness Exporters

Abstract

A survey of southeastern U.S. agribusiness exporters showed that export firms had many characteristics in common regardless of commodity category. In general, the profile of a successful southeastern U.S. agribusiness exporter in terms of export sales is one that tends to have higher total sales, foreign and domestic, and more export-market experience though the firm tends to be relatively young. While almost half of the firms engaged in promotion activities, less than a quarter of the respondents availed themselves of federal export promotion/assistance programs because of unfamiliarity or perceived costs. An overwhelming majority considered freight forwarding companies as indispensable parties to all transactions because of the extreme complexity of export-import logistics.     

The impact of biotechnologies and protection on the world sugar market

Abstract

Over the last decade, biotechnologies have become a major challenge to the world's agricultural markets. By considering the sugar market, this paper demonstrates the influence of national policy interventions on the process of market introduction of these technologies. The results suggest that protectionism in industrialised countries has promoted the development of substitutes and depressed the competitiveness of new technologies in the field of sugar plant production. Techniques of bioprocessing have reached the stage of technical maturity due to strong public support. The costs of these changes are largely borne by consumers and taxpayers in richer countries and by Third World exporters.     

Assessing the Contribution of Attitudinal Variables in International Models of Food Consumption

Abstract

This study compares the predictive ability of attitudinal variables with that of demographic variables in an international context. Using hierarchical regression analysis, the contribution of attitudinal variables to five models of food purchase behavior in urban China is evaluated. The results of the study indicate that, in some circumstances, multinational firms might opt to omit attitudinal measures in international consumer studies. Analysis of variance techniques are then used to examine the relationship between key demographic variables and food purchase behaviors.