Got milk? The rapid rise of China’s dairy sector and its future prospects

This paper synthesizes recent research and new empirical findings to build a more comprehensive understanding of developments in China’s dairy sector. China’s tremendous rise in dairy demand has been driven by several mutually reinforcing factors: including rapid income growth, promotion by the government and dairy industry, changes in urban lifestyles, and the development of new, more sophisticated marketing channels. Domestic milk output has grown to satisfy rising demand largely by increasing the dairy herd. Substantial increases in productivity have been achieved through technology adoption, but there is evidence that the torrid growth has created inefficiencies because adaptations to marketing rules, infrastructure, and institutions have not kept pace with the changing environment. These results suggest there is ample room for future growth in both domestic milk production and dairy demand, but multinational firms and imported products will likely play and increasing role as China’s dairy market continues to develop.     

When do we really need interpersonal trust in globally dispersed new product development teams?

Interpersonal trust refers to the willingness to make oneself vulnerable to the actions of another party. Trust is generally acknowledged as fostering knowledge exchange and thus contributing to new product development (NPD) team effectiveness. However, the conditions under which NPD teams come to rely more heavily on trust to facilitate effectiveness remain unclear. With burgeoning global collaboration on new product development, we analyze how the characteristics of global NPD teams, i.e., geographic dispersion, computer‐mediated communication (e.g., e‐mail, video‐conferencing), team membership flexibility, and national diversity moderate the trust–effectiveness relationship. Our results show that trust is more important under the condition of geographic dispersion, computer‐mediated communication, and national diversity. By specifying when trust influences NPD team effectiveness in globally dispersed teams, we discuss the theoretical implications and provide recommendations for management.     

Low price equilibrium in multi-unit auctions: the GSM spectrum auction in Germany

The second–generation (GSM) spectrum auction in Germany is probably the most clear cut example of a low price outcome in a simultaneous ascending-bid multi-unit auction. The present paper gives an account of the events, describes the auction rules and market conditions, and provides a game theoretic explanation of low price equilibrium in simultaneous, ascending-bid multi-unit auctions. In particular, it is shown that in the unique equilibrium that survives iterated elimination of dominated strategies, the efficient allocation is reached at minimum bids.     

Micro-dispersion of performance across industry lines

Classical industrial organization suggests that profitability differences are caused by industry-specific factors. Revisionist and managerial approaches, however, are stressing the predominant importance of firm-specific factors. Empirical evidence is more pronounced for firm-related factors, but recent inquiry also found support for the superiority of industry effects. The present paper examines the discriminating power of the industry variable to separate a German firm sample into homogeneous industry subgroups. The finding is that the industry does not have a significant influence on the dispersion of firm profit rates. Thus, the firm-effect approach to profitability is corroborated.