Stimulating innovation in large companies: Observations and recommendations for Belgium

This article summarizes the results of a large scale research which was conducted in 41 large Belgian companies. One hundred thirty-one innovation projects were studied in order to bring to light the factors encouraging or inhibiting the innovation process in large companies.
A stage-model of the innovation process is proposed, including the following phases: perception of the idea, conceptualization, development and operationalization. Favourable and unfavourable factors are emphasized at each stage. On the basis of these conclusions, recommendations are drawn which are aimed at managers, the public authorities, the universities and the trades unions. These recommendations concern three areas: increasing the technical-economic forecasting capacity of the companies and of the economic community at large; stimulating the research efforts inside and outside the firm; organizing the innovation development process within the firm.     

A Holistic View on Learning in Project‐Based Organizations

Although researchers have over the years highlighted the importance of managing and supporting learning in project‐based settings, it still seems to be problematic. New project management capabilities are needed, such as systems thinking, which will allow project‐based organizations to better cope with learning in the organizations. This article explores how Swedish project‐based organizations within an engineering and construction context manage and support learning activities today and discusses, with the support of process management literature, how an “organizational‐wide project learning process” could improve the prerequisites for learning in project‐based organizations. Our findings from three project‐based organizations indicate a lack of a holistic perspective on project learning. A conceptual model is proposed, with the aim of validating and promoting process thinking by introducing, for example, new roles responsible for intra‐ and inter‐project learning, respectively.     

The effect of the Internet on international trade

We find that the Internet stimulates trade. Evidence from time-series and cross-section regressions shows a significant effect of the Internet on trade in recent years. Our results suggest that a 10 percentage point increase in the growth of web hosts in a country leads to about a 0.2 percentage point increase in export growth. For the average country in our sample, the Internet contributed to about a 1 percentage point increase in annual export growth from 1997 to 1999. We also find evidence of proximity-biased trade growth, i.e. that trade growth is lower for more distant countries, but we do not find evidence that the Internet has directly affected this bias. The evidence is consistent with a model in which the Internet reduces market-specific fixed costs of trade. In particular, we show that an Internet-related reduction in fixed costs is likely to enhance export growth. The model also shows that the Internet does not directly affect the relationship between distance and trade; however, to the extent that competition is enhanced as a result of its development, the Internet will increase the overall effect of distance on trade.     

How Does the Federal Reserve's Large‐Scale Asset Purchases (LSAPs) Influence Mortgage‐Backed Securities (MBS) Yields and U.S. Mortgage Rates?

We conduct an empirical analysis of the Federal Reserve's large‐scale asset purchases (LSAPs) on mortgage‐backed securities (MBS) yields and mortgage rates. We estimate a cointergrated, error‐correction model that links Federal Reserve securities purchases and stocks of Treasury and MBS securities to equilibrium MBS yields and mortgage rates. The Federal Reserve's accumulation of MBS and Treasury securities lowered MBS yields and mortgage rates by more than what would have been suggested by changes in market expectations alone, suggesting that portfolio rebalancing effects of LSAPs are an important consideration for monetary policy transmission. Our estimates also suggest that the Federal Reserve must hold a substantial market share of agency MBS or of Treasury securities to significantly lower MBS yields and in turn significantly lower mortgage rates.     

Betriebsunterbrechungsversicherung bei kleinen und mittleren Unternehmen

The business interruption caused by a property claim is an existential risk both for large industrial companies and for small to medium enterprises (SME). It is especially relevant for companies working on a more complex sales and production infrastructure. Statistics show that in case of a large property claim the cost of the accompanying business interruption claim frequently exceeds the property claim. In Germany, however, the share of companies opting for business interruption insurance is much smaller than those opting for property insurance. This is especially true for SME that can hardly cover the risk themselves. The goal of this paper is to analyze the insurance decision for a business interruption policy with a special focus on SME. As a database we use the results of a representative survey among 1802 German SME with up to 100 employees. Our results show that the decision for a business interruption policy is not only dependent on hard factors such as company size and industry, but also driven by the so-called “insurance mentality”, which includes risk aversion, insurance know-how and price-sensitivity.     

How Visitor and Environmental Characteristics Influence Perceived Crowding

This paper aims to investigate tourists’ perceptions of crowding and factors influencing those perceptions. The effects of visitor socio-demographic characteristics, economic factors, and destination situational characteristics are investigated. Questionnaire data were collected from a sample of 362 tourists at Pantai Cenang Beach, Langkawi Island. The results confirmed the significant effect of visitor socio-demographic characteristics on perceived crowding. Among the economic factors, although the findings did not confirm an effect for level of income, the results showed a positive effect for spending money per day on perceived crowding. Furthermore, the hypothesized effect of situational characteristics on perceived crowding could not be verified. In light of the absence of studies investigating the factors influencing perceived crowding using partial least squares–structural equation modeling, this study contributes theoretically and methodologically to the perceived crowding literature. Moreover, the results can assist the local authorities to understand the perceptions of tourists for future development.     

Female Labour Force Participation in Indonesia: Why Has it Stalled?

This paper examines and disentangles the factors that have led to the largely unchanged participation (about 51%) of women in Indonesia’s labour force in the past two decades. We use data from the National Socio-economic Survey (Susenas) and Village Potential Statistics (Podes) from 1996 to 2013 in order to conduct a cohort analysis that distinguishes the effects of time and age on female labour force participation. We find that the raw labour market participation figures, which show little change over time, mask changes that offset one another in the current population. Evidence suggests that social norms are changing to support female participation, but this is offset by the changing industrial structure. Our projections show that the government’s current policies are unlikely to allow Indonesia to reach its G20 goal of decreasing the gender gap in labour force participation by 25% between 2014 and 2025.     

Ownership changes and access to external financing

This paper examines access to external financing in the privatization context and provides new evidence on the effects of financing constraints on performance and investment. Ownership reforms increase firms’ reliance on external financing. Empirically, performance and investment changes around ownership reforms are increasing in country-level measures of access to credit. The presence of a severe prior public financing constraint contributes to stronger investment growth after privatization. Privatized enterprises do not outperform publicly owned industries, all else given. Our analyses rely on new international sector- and firm-level data and correct for potential endogeneity of ownership changes.