Post‐Entry Diversification in a Shifting Institutional Environment: How Strategy Patterns Differ for De Novo and Corporate Spin‐Off Ventures

In this study, we contend that the corporate spin‐off's entrance into a market is strongly conditioned by a strategic logic tied to its legacy history. Unencumbered by this logic, de novo entrants have at least two potential advantages. They learn differently, and they do not face the challenge of unlearning. We test our hypotheses in the context of a major shift in rules for drug approval in the pharmaceutical industry. The results show de novo entrants choose market options that were less connected to past decisions, while entrants with a tie to legacy firms shift less from their initial position. In addition, de novo entrants entered market areas that were less densely populated, as compared to corporate spin‐off entrants, which is evidence of a tendency for de novo entrants to avoid direct competition while corporate spin‐offs seek legitimacy through mimicry.     

WAGE DIFFERENTIALS AND EMPLOYMENT IN A TWO-SECTOR MODEL WITH A DUAL LABOUR MARKET

The concept of a dual labour market is analysed in a two-sector general equilibrium model. The primary sector pays efficiency wages, while there is no connection between efficiency and the relative wage level in the secondary sector. The two sectors produce different goods. Capital is assumed sector-specific. The results under different conditions in the labour market (market clearing, minimum wages and levelling of the wage distribution) are derived analytically. Comparative statics are discussed by applying a linearized version of the model. The outcomes may be used to explain observed differences in wage and employment distributions in the US and Europe.     

When trade hurts: Consumption indivisibilities and labor market distortions

We present a simple model where complementarities between wages and demand due to factor market distortions can make a transition economy worse off from trade. Prior to trade, a virtuous circle prevails: high wages in industry support a high demand for indivisible industrial goods, which in turn supports high wages. However, factor market distortions in the transition economy create a comparative disadvantage in industry. Opening up to trade results in the import of indivisibles and a fall in manufacturing wages, breaking this virtuous circle. Consequently, trade liberalization without structural reform can have serious adverse effects in a transition economy.     

Survival of New Plants in Different Industry Environments in Norwegian Manufacturing: AS Semi-Proportional Cox Model Approach

Using a rich plant level data set from Norwegian manufacturing we analyse possible determinants of survival for ten plant cohorts during the period 1977–92. By specifying a semi-proportional hazards model of plant exit, we are able to accommodate for structural differences between entrepreneurial entrants and new plants of existing firms. Industry heterogeneity in terms of plant size, capital intensity and productivity is also accounted for in the model. According to our estimated models, there are significant structural differences between new small firms and new plants of existing firms. For example, the size of the plant relative to the industry average had less influence on the survival probability for entrepreneurial entrants. Hence, the empirical results suggest that the two types of entrants establish themselves in different market niches with distinct technological characteristics. The results underscore the necessity of adjusting for the dissimilar environments facing plants which enter different industries.     

Up to standard?: Market positioning and performance of Hong Kong films, 1975–1997

The trade-off between conformity and differentiation that market entrants face has recently been enriched by a new sociological insight: differentiation is rewarded only within the confines of taken-for-granted market categories. Entrepreneurs, however, routinely engage in combining existing market categories. The present paper attempts to reconcile these seemingly different views by focusing on the role of market uncertainty. In particular, we predict that the propensity of entrants to blend multiple categories increases with market uncertainty. Upon considering the endogenous influence of uncertainty on market positioning, the positive returns obtained by entrants from combining multiple categories become apparent. Because differentiation inspires the positioning of entrants in the face of market uncertainty, the frequent adoption of the same combination by competitors dampens the performance returns derived from it. Our hypotheses find support from the analysis of a large sample of Hong Kong films during 1975–1997.     

How does European termination rate regulation impact mobile operator performance?

This paper presents an empirical study of the impacts of mobile termination rate (MTR) regulation on European mobile operator performance. It examines the effects of both glide path and asymmetric regulation on incumbents as well as new entrants to this market using a dynamic econometric model accounting for internal and cross performance effects. The study provides strong supportive evidence for current MTR regulation in Europe.     

New entrants versus establishers in China and US electric vehicle marketplace: a comparative analysis

The article looks at the phenomenon of the new entrants surpassing the market establishers in China’s and the USA’s electric vehicle marketplace. Most of the current studies focus on the leading companies having first moves on early technology adoption. Based on the results from the expert interviews and literature review, we compared cases from both China and the USA. The study constructed and validated a framework for a theoretical model for the innovation drive, the technological mode and the business model to explain underlining driving factors and mechanisms where new entrants are taking the lead in the electric vehicle market. Suggestions for both new entrants and establishers are provided based on the established framework.     

Sustainable Public Debt and Economic Growth under Wage Rigidity

We analyse the effects of public debt on economic growth in a basic endogenous growth model with persistent unemployment due to wages rigidities. We show that there exists either a unique balanced growth path or there are two balanced growth paths depending on structural parameters and on the flexibility of the labour market. Further, public debt does not affect long‐run growth and employment but only stability of the economy. Stability is more likely when governments put a high weight on stabilizing the debt to GDP ratio.     

Links between foreign direct investment and human capital formation: Evidence from the manufacturing sector in India

This paper is related to the literature on the effect of foreign direct investment (FDI) on the labour market of host countries. Labour market literature has focused on the demand side of FDI; that is, increasing wage inequality by demanding more skilled workers or just increasing the overall average wages. On the supply side, FDI can enrich the skilled labour force of the host country by the provision of on-the-job training or learning or through indirect technological spillover effects. This paper takes into account both these effects and tests for human capital formation effect of FDI in India for core manufacturing sector firms for the period 2001–2015 using the Prowess database of the Centre for Monitoring Indian Economy. It also takes into account the endogeneity of decision-making on the part of foreign firms in locating FDI. Different dynamic panel data methods are used with static and dynamic generalized method of moments techniques. This study does not find any positive supply-side human capital formation effects of FDI but finds a positive demand-side effect of FDI of raising wage inequality and average wages. The results remain robust while taking into account heterogeneities at region, industry, size, and age of the firms.     

WAGE POLICY IN AN OPEN‐ECONOMY KALECKI–KALDOR MODEL: A SIMULATION STUDY

This paper discusses a Post‐Keynesian model of income, production and trade. The one‐country, one‐sector model features Kaleckian investment demand, Kaldorian productivity and a labor market module based on a wage–price spiral. The model is first presented for a closed economy with exogenous real wages; second, for a closed economy with endogenous real wages; third, for an economy open to trade with endogenous real wages. Simulations with different calibrations show key characteristics of the model. Monte Carlo simulations over reasonable parameter ranges shed some light on the effectiveness of wage policies in open economies.     

(De)Unionization,Trade Liberalization and Selection

The effects of union bargaining power and trade liberalization on industry selection are analysed within a two‐country heterogeneous‐firm model with firm‐specific unions and inter‐country asymmetries in size and union power. Union bargaining power is shown to have more nuanced effects on efficiency and welfare than what typically suggested by conventional wisdom. While the higher wages resulting from an unfavourable union power differential harm firms' competitiveness, by reinforcing standard market access mechanisms, they give rise to aggregate demand effects that can act as a catalyst for industry and result in a pro‐variety effect.     

内部劳动力市场与效率工资在企业中的应用=

内部劳动力市场与效率工资作为两种重要的理论,在企业的管理以及经济发展过程中发挥着重要作用.如何理解并把握住这两种理论的精髓,实现有效的应用,是企业面临与探求的重要课题.本文在深入剖析这两种理论的基础上,寻求出关键点,并结合企业管理与发展中的一系列问题,进行有效性评估与分析,从而提出在企业管理中的具体应用策略,应用技巧,应用途径等建议.     

Entry and market share success of new brands in concentrated markets

Two hypotheses related to the concentration/entry issue were tested. Unlike previous studies that have approached the issue from the standpoint of the number of firms that enter concentrated versus relatively nonconcentrated industries, the concentration/entry issue was studied at the brand level. Specifically, two hypotheses were tested: 1) an inverse relationship exists between brand concentration and number of brand entrants, and 2) an inverse relationship exists between brand concentration and success of brand entrants. Whereas the results did reveal the existence of an inverse relationship between concentration and number of entrants, it was extremely weak. The second hypothesis that the market share success of new brand entrants is inversely related to brand concentration was not supported by test results.     

强化粤澳劳务合作实现互利双赢

粤澳两地经贸往来密切，文化背景相同，劳务合作基础良好。由于澳门劳工界担心过多输入非本地劳工会影响本地劳工总体薪酬水平，再加现行政策的制约，影响了粤澳两地劳务合作的进一步深化。基于两地共同利益考虑，必须以新思维新观念去寻求劳务合作的新办法新模式，把提升人力资源素质作为保持本地区长期可持续发展和竞争力优势的战略重点；正确处理引进外来劳工与保护本地劳工利益的关系；加强信息交流，强化两地间的教育与培训合作。     

Supply-side strategic unemployment in small business

In this paper, the model which will be analysed is characterized by a labour market with (a) profitable vacancies, (b) unemployment, (c) excess labour supply, (d) limited mobility and divisibility of labour, and (e) competition on-the-job. The analysed setting is typical for a small-business economy. The analysis suggests that unemployment will be greater than equilibrium unemployment if present employees and potential entrants consider job assignments for this market under strategic perspectives.     

Das Mindestlohngesetz — Hoffnungen und Befürchtungen

The German government plans to introduce a minimum wage from 2015. This must be understood as a response to the decline in collective bargaining coverage and the marked increase in employment in the low-wage sector. The authors discuss how many workers are affected by this new regulation and whether the minimum wage is too high in relation to the average wage of workers (Kaitz index). They assume that the introduction of a minimum wage in Germany can have a number of effects. It is not possible to forecast all the reactions and behaviour of market participants to handle higher wages and goods prices. Some authors warn that these measures are significant labour market interventions that could have adverse employment effects. They recommend allowing more exemptions from the minimum wage law than intended by the government, especially for young employees and student apprentices. Other authors hope that minimum wages would help to strengthen collective bargaining and stabilise wages. Some authors emphasise that there should be a careful evaluation of the economic effects by scientists.     

Greening Goliaths versus emerging Davids — Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship

This paper proposes a model of how incumbents and new entrants engage in sustainable entrepreneurship. We suggest that in the early stages of an industry's sustainability transformation, new entrants (‘Emerging Davids’) are more likely than incumbents to pursue sustainability-related opportunities. Incumbents react to the activities of new entrants by engaging in corporate sustainable entrepreneurship activities. While these ‘Greening Goliaths’ are often less ambitious in their environmental and social goals, they may have a broader reach due to their established market presence. This paper analyses the interplay between ‘Greening Goliaths’ and ‘Emerging Davids’ and theorizes about how it is their compounded impact that promotes the sustainable transformation of industries.     

Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance

The role of market orientation as an antecedent of new product performance has been extensively documented in the literature. What is less clear, however, is how firms should make use of their market orientation under different market conditions. This study addresses this question by investigating how market orientation leads to superior new product performance for products that enter the market at different times. In particular, the study examines the moderating effect of order of market entry on the mediated relationship between market orientation and new product performance via product quality and innovation speed. Data from a sample of 244 new product development projects show that a firm's market orientation can improve the performance of first-to-market products and late entrants by facilitating the development of quality products, whereas it can improve the performance of early entrants by facilitating greater innovation speed.     

Productivity, indexation and macroeconomic outcomes: The implications of goods market competition and wage bargaining structure

One strand of the macroeconomics literature explores the extent to which the indexation of nominal wages to a variable in addition to the price level can improve macroeconomic performance. The present paper contributes to this literature by developing a model in which the nominal wage is indexed not only to the price level but also to productivity. Two key features of the framework are a monopolistically competitive goods market and a unionized labor market in which wages are determined by a finite number of unions. A significant finding is that the multiparameter indexation scheme generally outperforms full-information wage setting.     

Opening of China's Trade,Labour Market Reform and Impact on Rural Wages

Government policy in China supports urban wages at the expense of returns to farm labour. A model is developed to estimate how WTO accession and complementary labour market reform will influence factor returns in China. With WTO membership, a larger cut in manufacturing tariffs compared to agriculture will improve agriculture's terms of trade and will raise the agricultural wage. Complementary labour market reforms will further boost farm wages as labour exits agriculture in large numbers. We estimate that WTO membership and complementary labour market reforms will result in a decline in the agricultural labour force by about 25 per cent.