Technology strategy in uk firms

This paper is a conceptual and empirical study of the problems that companies and managers face in formulating a 'technology strategy'. The main issues in technology strategy decisions can be charactented as having acquisation management and exploitation elements and an internal-external dimension. The research on which the paper is based aims to link and develop these elements within a wider conceptual context. It reports that, empirical results of one questionnaire and two interview surveys on technology strategy, as practised by UK companies and managers. The findings from the studies and their implications are discussed for the technology strategy itself for the significance of the company industry and technology setting; and-fir the underlying problem of how managers think about the firms technologies. The conclusion is that the problems of formulating a technology strategy are more deeply rooted than has previously been suggested.     

Managerial Buyouts, Incentives And Performance

The managerial buyout (MBO) is a means of motivating senior managers and institutional investors to increase their monitoring efforts and so raise the performance of the firm. This paper suggests that the typical MBO contains a mix of incentives which motivate managers by raising the rewards for success and increasing the penalties for failure. At the same time, the relationship between the new company and its institutional backers encourage the latter to monitor the efforts and achievements of the management team. Such a structure appears useful in raising the performance of divested divisions, particularly in mature industries.     

Frames of significance: technological agenda-forming for strategic advantage

Technological innovation is a source of competittive advantage and potential corporate rejuvenation. The problematic issues that managers frame, then devote attention and resurces to solving, constitute the strategic technological agenda of the firm. We propose and elaborate a perceptual frame model by which the agenda may be understood. We use the model to interpret three innovation episodes in divisions of large, multi-divisional corporations. The patterns of framing over time and the issues addressed are particular to each firm. We acknowledge the existence of partial perspectives associated with the vantage points of the various decision-makers and observers, and we suggest that greater owareness of this partiality could lead to a better appreciation of the complexity and implications of ambiguous issues. We suggest that agendas evolve in a broadly 'logical-incremental' way although we question whether sufficient priority is being accorded to extending the new capabilities to emerge from innovation to other areas of the parent coporations.     

Forward Markets and the Behaviour of the Competitive Firm with Production Flexibility

This paper examines the production and hedging decisions of the competitive firm under output price uncertainty when a forward market for its output is available. The firm possesses production flexibility in that it makes its production decision after the resolution of the output price uncertainty, albeit subject to a capacity constraint on production. We show that the firm optimally acquires a higher level of capacity investment than an otherwise identical firm with no production flexibility. We further show that production flexibility allows the firm to implicitly hedge against its output price risk exposure by the ex post production decision. The firm as such under‐hedges its output price risk exposure in the forward market wherein the forward price contains a non‐positive risk premium.     

The Impact of the Type of Accounting Standards on Preparers' Judgments

This article examines preparers' consolidation judgments and how they are impacted by the precision of accounting standards (substance-over-form versus rules-based). The examination is performed via two laboratory experiments in a consolidated accounting setting. In Experiment 1 it was found that when subjects used a substance-over-form accounting standard they justified their consolidation judgments on case specific information rather than on different interpretations of the phrase 'capacity to control'. In Experiment 2 it was found that when subjects used a rules-based standard, incentives were found to impact on accountants' consolidation judgments and more aggressive judgments were made through their assessments of case specific information. Comparison of the judgments made in Experiment 1 with one of the treatment groups in Experiment 2 enabled a comparison to be made of consolidation judgments of subjects under both substance-over-form and rules-based accounting standards. While both groups had the same incentive not to consolidate, marginally significantly more subjects using the rules-based standard did not consolidate than subjects using the substance-over-form standard. This finding is contrary to anecdotal claims that the imprecision of substance-over-form standards may be less effective in stopping biased financial reporting than rules-based standards.     

Nominalising the numeric: an alternative to mathematical reduction in economics

Mathematical reduction in economics is the attempt to reducereasoning about human economic behaviour to the logic of numbersand numerical relations. The method of numerics shows how, insimple cases, the mathematical and non-mathematical componentsof economic theory can be both formally distinguished and integrated.However, in its compressed idiomatic form, this method treatsnumerics (the numerical terms in measuremental expressions)as determinatives (numerical adjectives) rather than as substantives.This paper shows how the numeric can be nominalised or giventhe grammatical status of a substantive. The method of numericsis then used to explore the fundamental flaws of mathematicalreduction in economists' efforts to achieve logical rigour inthe formalisation of economic theory.     

Sustainability marketing — An innovative conception of marketing

Conventional marketing thinking is increasingly unable to cope with the ecological, social and commercial realities that confront mankind. This conceptual article presents a vision of an integrated approach to ‘sustainability marketing’ and highlights a number of innovative ways in which this differs from the conventional marketing management mainstream.     

Market imperfections and the information content of implied and realized volatility

The information content of option implied volatility and realized volatility under market imperfections are studied in the context of GARCH modeling and volatility forecasts of Taiwan stock market (TAIEX) returns. Consistent with most studies, we find that the Taiwan implied volatility index (TVIX) calculated from the TAIEX option prices contains most of the information, and that White's [White, H., 2000. A reality check for data snooping. Econometrica 68, 1097–1126] reality check test cannot reject the null hypothesis that the TVIX provides the best forecast. Possibly due to market imperfections, however, the incremental information content of realized volatility as well as daily returns cannot be ruled out. Finally, we also find that the information is found only in the most recent TVIX, indicating information is being efficiently impounded on the TAIEX option prices. This finding suggests that appropriately designed derivative products can alleviate the problems caused by market imperfections.     

The Planning Implications of New Retail Format Introductions in Canada and Britain

A recent retail internationalisation trend has been the arrival in Britain and Canada of COSTCO warehouse membership clubs (WMCs). Further investigation reveals similarities between those countries in terms of the responses of their planning systems to this newcomer. However; the wider picture must also include analysis of why so many other innovative new types of outlet are also internationalising. The trend can be seen as part of the interface between the spatial pattern of retailing and other legal matters. We therefore suggest that not just the planning system but also the legal aspects of trading regulation must be studied.