The Falsification of Four Popular Hypotheses About the Asian Crisis

Various claims have been made about the causes of the Asian crisis and its spread. Here, we use data on the behaviour of capital flows during the crisis to test the strong forms of four such hypotheses, that portfolio investors and hedge funds played a dominant role in initiating and/or spreading the crisis; that moral hazard kept efficient markets from predicting the crisis; and, finally, the common lender hypothesis of Kaminsky and Reinhart. In the process we also test implications of the Calvo-Mendoza model of rational investor ignorance. All are falsified as monocausal explanations. For example, portfolio investments that could not have been subject to substantial moral hazard continued to flow into Asia until very shortly before the crisis. Likewise, banks were a much larger source of capital outflows during the crisis than were portfolio investors. While falsified in their strongest forms, several of these hypotheses in less strong forms should play a role in a more nuanced analysis. It is necessary to move past simple single-factor approaches in order to produce a more complete, synthetic explanation of this episode.     

Technology evaluation in Taiwan's technology industries: Strategies, trajectories, and innovations

Technology evaluation, as an organizational process, is the essential ability to comprehend the values of technologies very soon after they emerge. Meanwhile, the technology evaluation process is inevitably influenced by the firm's industrial context, such as its technological trajectory. This study defines technology evaluation strategy in terms of the processes, methods, and participants involved, and uses this definition as a taxonomy to explore different types of technology evaluation strategies. A survey on the technological industries is conducted to explore types of technology evaluation strategies and their relationships with the advantages of different types of innovation under the effects of different technological trajectories. The survey identifies four types of technology evaluation strategies, namely, those of the flexible executive strategist, the emergent executive intuitionist, the deliberate quantitative strategist, and the deliberate consensual strategist, are identified. This study has found that certain types of technology evaluation strategies have better innovation performances than the others. The patterns of technological trajectories are also found to influence a firm's technology evaluation strategy and the advantages of certain types of innovations. The established explanations of the relationships among the technological trajectory, innovation type, and technology evaluation strategies may guide technology businesses to develop a better technology evaluation capability. The theoretical framework developed in this research enriches the strategic management literature with a new taxonomy for technology evaluation strategies.     

Technology level evaluation methodology based on the technology growth curve

Technology has been the driving force of development for knowledge-based economies. As competition in technology innovation among nations becomes more intense, there is a growing need for improved judgment, evaluation and prediction of scientific technology capacity in order to enhance national competitiveness. Until now, a country's technology level has been evaluated on a relative basis by comparing it with that of the country with the world's best technology. However, this kind of static methodology makes the interpretation of results unclear and makes time series analysis difficult. One of the most important limitations of this methodology is that it cannot be used to establish a strategy to improve the technology level. This paper examines the methodological problems of technology level evaluation and develops a dynamic methodology by applying the technology growth curve model. We also analyze the real technology level by using a new model application and review the relevance of this method. Finally, we discuss how to use the results in order to create a dynamic technology strategy.     

Science and politics: The 1981 and 1984 LIHEAP distribution formulas

The Low-Income Home Energy Assistance Program (LIHEAP) is a federal block grant program to help low-income households pay their heating and cooling bills. If the regular fiscal year LIHEAP appropriation is less than or equal to $1.975 billion, then a 1981 formula is applied to distribute funding across states, while if appropriations rise above the $1.975 billion threshold, a 1984 formula is applied in conjunction with two hold-harmless provisions. In 18 of the past 20 years, the 1981 formula has served as the default mechanism to distribute LIHEAP funding. The purpose of this paper is to call attention to the inadequacy of the 1981 formula and to explain why the objectives of LIHEAP are not met when this formula is used. We explain why the distribution of LIHEAP funds is not proportionate to the need for assistance and offer some suggestions for improvement. The 1981 formula is shown to be the outcome of a convoluted political process heavily biased in favor of cold-climate states, with cold-climate states receiving on-the-order of at least $150 million a year in allotment dollars beyond their “fair share” of heating requirements. The 1981 and 1984 distribution formulas are derived and a critical examination of each formula is presented. The 1984 formula is shown to be an ideal mechanism to distribute LIHEAP funds, based on a scientific and rational understanding of low-income energy needs, but legislative constraints prevent its application.     

Value creation in the relationship life cycle: A quasi-longitudinal analysis

Among the growing literature on value creation in collaborative buyer-seller relationships, most researchers examine relationship value at a single point in time. In the present research, we explore whether different stages of the relationship life cycle moderate the relative importance of value-creating dimensions. To shed light on the dynamic nature of value in B2B relationships, we present the results of a survey among purchasing managers using a quasi-longitudinal research design. Our findings confirm the moderating role of the relationship life cycle in value creation. More precisely, our results indicate that a key supplier's potential for value creation in customer's operations increases in relative importance as relationships move through the life cycle. In turn, supplier's capabilities to create superior value at the level of the customer's sourcing process display a decreasing role over the life cycle of a business relationship. No significant link was found in the present study between value creation through a supplier's core offering and different stages of a buyer-seller relationship.     

Strategic Internet application trends in supply chain management

The Internet is evolving as a powerful force in the new marketplace where the nexus of competition has changed from individual firms to efficient supply chain networks both between firms and within industries. This study explores Internet adoption patterns and operational applications in US supply chain networks. The data reveal that the integration of the Internet into supply chain management applications has increased and has moved away from indiscriminate application of novel Internet technologies towards becoming a focused endeavor with precise expectations and measurable goals. Specifically, the study finds that Internet usage within supply chains is maturing as evidenced by enhanced and increased productivity, reduced costs and increased profit for participating firms.     

A grey decision and prediction model for investment in the core competitiveness of product development

Because enterprises do not disclose their internal specific cost information to the public and, moreover, every firm has its own product character and financial constitutions, it is difficult to offer fixed guidelines for investment decisions. Thus, an enterprise may be uncertain when required to choose the most promising set of possible investments.The goal of this research is to use a grey relation analysis and analytic hierarchy process (AHP) to probe the core product development and competitiveness of an enterprise from limited data and, furthermore, by constructing the grey model, GM(1,1), to validate the feasibility of this assessment of the core competitiveness and investment strategy. In this study, a precision mechanical manufacturer is taken as an example, and the forecast estimate from this method is compared to those of a linear regression and the actual values to demonstrate the feasibility of applying this methodology to investment decision making, hence, demonstrating the value of this research.     

International diffusion of embodied and disembodied technology: A network analysis approach

This study proposes a quantitative method for investigating the structure of international technology diffusion. By using network analysis, this study defines the structural configuration of each country within the international diffusion network by measuring its degree, closeness, and betweenness centralities. In addition, this study distinguishes between embodied technology diffusion, measured by multilateral trade, and disembodied technology diffusion, measured by patent citations, in individual countries. This study empirically tests a sample data set of international technology diffusion taken from 48 countries. The empirical results show that the structural configuration of countries exhibits similar patterns in both embodied and disembodied diffusion networks. Significant global stratification patterns exist in the capability of national international technology exportation and brokerage advantages. Moreover, this study distinguishes four blocks of countries that play different roles in international technology diffusion: the leading countries provide a source of technological knowledge; an intermediate group diffuses the knowledge acquired from the source; a third group is in the process of initiating the export of technological knowledge; and a final group of countries absorbs technological knowledge without reciprocal exportation. Finally, this study identifies two types of catch-up strategies that newly industrialized or developing countries can use to move up the international technology stratification.     

Interpartner legitimacy in regional strategic networks

Our aim is to add to the knowledge on a network level, focusing on if, and how, interpartner legitimacy affects the success or failure of network formation and development processes. Existing network theories and research tend to focus on resource exchange rather than on how actors perceive each other in terms of being legitimate or not. The purpose of the article is to analyze the interpartner legitimacy's influence on the formation and development processes of regional strategic networks (RSNs) from a network level. Two Swedish cases are discussed in terms of pragmatic, moral and cognitive interpartner legitimacy. The cases and the following discussion illuminate that interpartner legitimacy is important to incorporate into the analytical model if we wish to understand the processes of negotiations on the rules and norms which set the possibilities for survival of multi-actor interactions.