Migration to 3G wireless broadband internet and real options: The case of an operator in India

The paper focuses on third generation wireless technologies and on alternative technologies for wireless local area networks. The authors present the evolutionary migration path from second to third generation systems. Technological, economic and behavioral factors related to decision-making towards the migration are proposed. As an example, the paper studies the case of the national incumbent operator of India. It analyzes qualitatively the migration problem from the perspective of the operator, the equipment manufacturer and the users. For the quantitative analysis, real options are used to value the investment decisions. The analysis suggests that the initial (sunk) investment cost, the average revenue per user, the growth of the subscriber base and the volatility of the markets are the key factors in the investment process.     

Consolidation of public safety wireless networks: An options-based economic analysis of numerous scenarios

The Korean National Emergency Management Agency proposed to replace existing public safety wireless networks of 46 agencies with a nation-wide consolidated network. This study compares the public-private partnership alternative of sharing a network with the conventional alternative of building a government autonomous network. Using exploratory modeling and real option analysis which compute path-dependent values (including network effects and switching costs) of all the plausible sequential incremental investments against a wide range of future states, this study has designed adaptive investment strategies (“start robust, then adapt”) which start in the highest pay-off area, and then make investment decisions about whether to expand or switch to lower pay-off areas, based on an updated information of technology prospects and the previous-stage performances of inter-agency operational effectiveness and public-private partnership. This case study has demonstrated that well-designed adaptive investments will enhance long-term values and reduce downfalls arising from public-private partnership.     

An empirical evaluation of the determinants of Research Joint Venture Formation

This paper empirically analyses the determinants of firm participation in Research Joint Ventures (RJVs). A review of the theoretical literature highlights the difficulty of identifying testable hypotheses. Using a large database of European RJVs, we estimate a participation equation at the firm level using the logit procedure. We find that sectorial R&D intensity, industry concentration, firm size, technological spillovers, and past RJV participation positively influence the probability of forming RJVs. By contrast, patents' effectiveness reduce the likelihood of RJV formation. Last, country fixed effects suggest that firms from larger countries are less likely to participate in cross–border RJVs.     

The EU State aid policy for broadband: An evaluation of the Italian experience with first generation networks

State aid (SA) measures for broadband have been flourishing in the EU, but our knowledge about the effectiveness and efficiency of this policy remains extremely scarce. We investigate the SA experience with the first generation of broadband services (FGB) in Italy, whose market was long plagued by extensive market failures, largely due to market power. By exploiting original open Government data and sources, we analyse the main domains of the EU SA policy, and assess whether its ex ante goals have been met in Italy. Four main results stand out. First, the plan extended the FGB coverage of rural areas, although with a substantial delay and incompletely, with respect to the ambitious targets of the Digital Agenda for Europe. Second, public consultations have significantly increased the transparency of the market and of the SA intervention, promoting investment and a gradual increase in the efficiency of public procurement. Third, the direct effects of SA on competitive entry appear less pronounced, at least in the static sense. Fourth, the final matching between allocative and dynamic efficiency of SA policy, and its coherence with industrial and innovation policies remain critical, based on the Italian experience: in fact, the persisting digital divide affecting the business-rich areas depicts another relevant instance of partial Government failure.     

An empirical examination of transaction‐ and firm‐level influences on the vertical boundaries of the firm

A large literature has successfully employed transaction cost economic theory to describe how exchange conditions affect the optimal form of organization. However, this approach has historically not accounted for the influence of firm‐specific attributes on the governance decision. This paper develops a model based on insights from transaction cost economics, the resource‐based view, and real options theory to examine how transaction‐level characteristics, firm‐specific capabilities, and product‐market scope influence the governance of production. Empirical evidence derived from analysis of 469 make‐or‐buy decisions involving 117 semiconductor firms indicates that decisions regarding the governance of production activities are strongly influenced by both transaction‐ and firm‐level effects. Copyright © 2003 John Wiley & Sons, Ltd.     

An improved maize marketing system for African countries: the case of Zimbabwe

This article proposes a system for Zimbabwe which retains government control of national stocks and enables the parastatal marketing system to stabilize prices, at the same time ensuring a more rational delivery system in rural areas with prices reflecting storage and transport costs. The local population is encouraged to fulfill local needs, thus avoiding the expense of directing all marketing and processing through the urban areas. A more localized system will also have greater multiplier effects. Zimbabwe's maize marketing system is used to show how this system could be modified with benefits to rural consumers, producers and government. Data suggest there is little market exploitation: price differentials between markts reflect transport costs, returns on storage are reasonable, and voluntary procurement operations are usually able to stabilize prices. Zoning, movement restrictions and compulsory procurement have been shown to destabilize food markets; prices between markets are higher in periods of strict control than when marketing is relatively free. Controlled marketing answers a real political and economic need in Zimbabwe. Existing public food marketing agencies are not inherently inefficient. While stabilizing maize supply, there are important advantages in announcing preplanting prices, but any trade in maize only takes place after price setting. It is unlikely that there would be both imports and exports in any 1 year, except when previous contracts are being fulfilled. 2 policy options are available to cover anticipated periods of insufficient national maize production: the maintenance of a strategic reserve; and importation of maize to cover supply shortfalls. Single-channel marketing should be replaced by an internal free market operating between floor and ceiling prices by supply manipulation to prevent excessive producer and consumer welfare fluctuations. This system would be more efficient and have beneficial effects on development. It is more equitable for the rural poor, and result in greater stability of producer incomes, more reliable food supplies, higher producer prices and the release of public funds.     

能源国际合作进展评价体系构建及实证研究

“四个革命、一个合作”能源安全新战略是新时代中国能源高质量发展的根本遵循。基于中国《能源生产和消费革命战略(2016-2030)》,构建包括4类一级指标、23类二级指标的能源国际合作指标体系,提出表征中国能源革命国际合作进展的方法,即能源国际合作指数。对比分析2015-2019年中国能源国际合作取得的重要进展,提出2030年的目标期望及对策建议。尽管2015-2019年中国能源国际合作进展成效显著,指数从62.4提升到68.3,但较2030年的目标值100仍有32%的差距。1)“海外油气资源来源多元稳定”较目标值尚有12%提升空间,未来重点要拓展天然气进口多元化和海外石油合作。2)“畅通‘一带一路’能源大通道”距目标值有37%的差距,未来应加强天然气、电力通道以及通道安全合作机制建设。3)“深化国际产能和装备制造合作”距目标值需提升32%,未来应加强全产业链合作以及培育具有竞争力的跨国能源企业。4)“增强国际能源事务话语权”距目标值需提高51%,仍是未来需着重提升的方面。     

An empirical note from case documents on the economies of network television advertising

Economists have argued for many years about the extent of economies of geographic scope in television advertising. This paper maintains that previous studies could not correctly resolve this issue because they employed list prices, rather than transactions price data. In contrast to previous research, this paper reports transaction based prices from internal company documents. These transaction based data indicate that network advertising was substantially less costly per viewer than equivalent coverage using local spot television advertising. Local firms, unable to use network advertising as did their national competitors, faced high per viewer advertising costs as a result.     

The relationship of information usage characteristics to planning system sophistication: An empirical examination

The relationship between corporate-level planning and information systems was examined empirically. A continuum of planning system sophistication was constructed based on the level of openness to outside influences combined with the planning horizon. Futureoriented, external and environmental types of information were found to be strongly correlated with increased planning sophistication. The impact of environmental turbulence (complexity-volatility) on planning systems also was examined. Complexity was strongly correlated with planning sophistication, whereas no relationship was found between volatility and planning sophistication.     

Corporate governance and the bankrupt firm: An empirical assessment

The incidence of bankruptcy has risen dramatically among firms of all types and sizes in the past decade. Little is known, however, about the effects of alternative governance structures on the propensity of an organization to file Chapter 11 bankruptcy. Relying on logistic regression for periods 5 years and 3 years prior to the bankruptcy, as well as the contemporaneous period, we examine the relationships among independent/interdependent board composition and the structure of CEO/board chairperson positions and the filing of bankruptcy. While controlling for a series of financial indicators and firm size, the results illustrate robust explanatory power for the governance variables for both lagged periods.     

Life expectancy of international cartels: An empirical analysis

This paper quantifies the importance of the various determinants of life expectancy for international cartels active throughout this century. I explain cartels' optimal duration as a function of market structure and demand growth and estimate the associated parameters recognizing that durability cannot be negative. According to the results, increases in either market shares or cartel concentration prolong life expectancy. Faster demand growth shortens cartel durability but this effect is not reliable. I also find that growth effects are sensitive to both the period of activity and the country coverage.The calculations in this paper use LIMDEP version 5.0. I am grateful to participants in seminars at the Federal Reserve Board and the U.S. International Trade Commission; to Alexander David, Jon Faust, Michael Gibson, William Greene, James Griffin, William Helkie, Dale Henderson, John Irons, Doug Irwin, Michael Leahy, Matthew Pritsker, Stephen Salant, and Janice Shack-Marquez for several suggestions. I also received very useful comments from two anonymous referees. The views expressed in this paper are solely the responsibility of the author and should not be interpreted as reflecting those of the Board of Governors of the Federal Reserve System or other members of its staff.     

Investigation of factors affecting the diffusion of mobile telephone services: An empirical analysis for Vietnam

This paper analyzes the diffusion of mobile telecommunications services in Vietnam and examines how telecommunications regulation and potential substitute/complement services affect the growth of the number of mobile telephone subscribers. Using a logistic diffusion model, it is found that fixed telephone services are a complement while data services have a negative relation to mobile telephone services in Vietnam. As for regulation, the policy of introducing competition has been found to be the most effective in influencing the adoption of mobile services. Another important result is that the estimated potential market is roughly 76% of the total population. The findings suggest that suitable regulation that guarantees competition in the mobile telecommunications market in a developing country such as Vietnam is one of the most important factors for a positive diffusion process.     

Critical success factors for the sustainability of Kaizen event human resource outcomes: An empirical study

Kaizen events have been widely reported to produce positive change in business results and human resource outcomes. However, sustaining or improving upon the results of a Kaizen event over time can be difficult for many organizations and has received limited empirical research attention to date. This paper identifies the factors that most strongly influence the sustainability of work area employee attitudes and commitment to Kaizen events based on a field study of 65 events in eight manufacturing organizations. The findings also present guidelines for organizations and areas for future research.     

An empirical analysis on purposes,drivers and activities of technology opportunity discovery: the case of Korean SMEs in the manufacturing sector

Technology opportunity discovery (TOD) is becoming increasingly important for identifying technology opportunities so that they can be reflected in firms' strategy planning. However, understanding of TOD practices within firms is limited, and the diversity of TOD practices has not been fully reflected in previous studies, especially from the perspective of small and medium enterprises (SMEs), which typically lack diverse technology portfolios or plentiful innovation resources, so technology opportunities have seldom been defined and analyzed. This study aims to investigate SMEs' TOD practices and to identify their characteristics. Interviews were conducted with Korean SME executives to define a conceptual TOD model for SMEs, and 104 Korean SMEs' TOD drivers and activities were surveyed focusing business drivers, business models, and information gathering. The results were then analyzed to define six technology opportunity types and to derive similarities and differences among them, which are used to understand and further support SMEs' TOD practices. The research findings are expected to enhance understanding about TOD practices and to help establish SMEs' TOD strategies.     

Diffusion of mobile telephony: An empirical study in Taiwan

Mobile telephony penetration is a major indicator of mobile telephony diffusion. Taiwan had a mobile telephony penetration of 108% in 2002, ranking first in the world. This study analyzes this accelerated diffusion in terms of growth model and determinants of the diffusion rate. To eliminate the inherent uncertainty associated with choosing the optimal growth model, this study compares the performance of three conventional models, namely Gompertz, Logistic and Bass, to identify the most appropriate model, and to distinguish the forces driving the diffusion rate. Empirical results indicate that the most appropriate model is the Logistic model. Network externalities, which this study shows to be the same as the imitation effect in the Bass model, explain the superiority of the Logistic model. Moreover, market competition, which markedly reduces service prices, is identified as a primary driver of the diffusion rate of mobile telephony in Taiwan. Economic conditions, technological innovation and number of operators are insignificant factors. Finally, mobile telephony is a substitute for fixed-line telephony in Taiwan.     

An innovation activity model for Very Small Entities in the software sector: an empirical study

Innovation management is a subdiscipline of management that studies the rules that govern the generation, diffusion, adoption of innovation, and relationships between innovation inputs and outputs. A great number of innovative products and services depend on software. In the software industry, many small entities act as subcontractors that develop components that are later integrated into larger industrial systems. However, these small entities do not have the resources needed to support long-term R&D activities and they also lack innovation management models which makes the planning and execution of innovation management difficult. These same small enterprises face similar challenges in the software development process. However, the ISO/IEC 29110 standard provides small enterprises with a clear path in implementing a systematic software development process. The planning and execution of innovation management activities may also benefit from a similar approach. This article describes an innovation activity model suited to the characteristics of small entities whose main stream of revenue is software development. Using the existing literature, standards, and the practical experience of companies with a successful history of developing innovative software-based products, this study identifies the activities and practices that lead to the development of innovative products. Interfaces between innovation management activities, software development processes, and work products are also identified.     

Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market

The paper analyzes the demand and supply characteristics of the Indian telecommunications market, with the aim of contributing to the debate on the effectiveness of universal access policies in developing countries. The discussion is supported by some empirical evidence derived from a small time-series-cross-section dataset, containing mainly information on the fixed-lines segment of the market. The analysis suggests that the price elasticity of demand for fixed lines might be sensibly higher than the levels usually found in developed countries, while the crucial role of income and other sociodemographic variables seems to be confirmed. The paper also studies the impact of cellular penetration on fixed-lines diffusion. The results suggest the existence of a (positive) network effect in low penetration areas, while substitution (displacement) seems to arise in the most developed ones. Finally, the paper analyzes the supply side of the market, to assess the impact of market competition on investment. Competition seemingly helps stimulating investment in the most developed areas, but does not seem to have a significant impact in the less developed ones.     

Visible moves and invisible bodies: the case of teleworking in an Italian call centre

Popular images of teleworkers' autonomy, such as 'the electronic cottage', give unrealistic pictures of the control exercised over teleworkers, particularly when these are call centre operators and highly integrated information and communication technology systems facilitate pervasive forms of control. However, this study of Italian home-located call centre operators demonstrates that extensive and multifaceted monitoring practices cannot 'solve' the controversial issue of control.