Internetization as the necessary condition for internationalization in the newly emerging economy

The internationalization of entrepreneurship is becoming increasingly facilitated through the use of the internet. This article introduces the term “internetization” to refer to the process of increasing adoption, diffusion, and deployment of internet-based technologies and processes that increasingly serve as the back bone of internationalization, especially in the innovative entrepreneurial firms. This process may be compared to the firm’s adoption and use of the internet and the internet-based processes in transforming the firm to a hybrid network internally and externally within the firm’s home and international markets, especially when the members of its external network have already internationalized. Internationalization of the firm, which has been much studied in the international business literature may provide a parallel analogy for study of internetization. Based on these analogies and within the context of previous literature in internationalization, a brief examination of a typical rapidly-internationalizing firm through the use of the Internet, and the user-generated provisions of Web 2.0 in particular, points to the impact of internetization on internationalization. Various theoretical and research issues are highlighted and discussed, including the important interactions that exist between the processes of internetization and internationalization. Conclusion suggests that internetization may have become the necessary condition for internationalization. The paper calls upon the IE scholars to respond to the theoretical challenge of integrating internetization processes into internationalization, especially for the smaller, entrepreneurial and innovative firms.     

An economic evaluation attached to a single-centre,parallel group,unmasked, randomized controlled trial of a 3-day intensive social cognitive treatment (can do treatment) in patients with relapsing remitting multiple sclerosis and low disability

Abstract

Aims: This trial-based economic evaluation (EE) assesses from a societal perspective the cost-effectiveness of an intensive 3-day cognitive theory-based intervention (CDT), compared to care-as-usual, in patients with relapsing remitting multiple sclerosis (RRMS) and low disability (Expanded Disability Status Scale [EDDS] score < 4.0).

Materials and methods: The trial of the EE was registered in the Dutch Trial Register: Trial NL5158 (NTR5298). The incremental cost-effectiveness ratio (ICER) was expressed in cost on the Control sub-scale of the Multiple Sclerosis Self-Efficacy Scale (MSSES) and the incremental cost-utility ratio (ICUR) in the cost per Quality Adjusted Life Years (QALY) using the EQ-5D-5L. Bootstrap, sensitivity, and sub-group analyses were performed to determine the robustness of the findings.

Results: The two groups of 79 patients were similar in baseline characteristics. The base case ICER is situated in the northeast quadrant (€72 (40.74/€2,948)) due to a higher MSSES Control score and higher societal costs in the CDT group. The ICUR is situated in the northwest (inferior) quadrant due to losses in QALY and higher societal costs for the CDT group (?0.02/€2,948). Overall, bootstrap, sensitivity, and sub-group analyses confirm the base case findings. However, when the SF-6D is used as a study outcome, there is a high probability that the ICUR is situated in the northeast quadrant.

Limitations: The relative short follow-up time (6?months) and the unexpected increase in MSSES Control in the control group.

Conclusions: When using the EQ-5D-5L to calculate a QALY, CDT is not a cost-effective alternative in comparison to care as usual. However, when using self-efficacy or SF-6D as outcomes, there is a probability that CDT is cost-effective. Based on the current results, CDT for patients with RRMS clearly show its potential. However, an extended follow-up for the economic evaluation is warranted before a final decision on implementation can be made.     

The trade-off between innovation and defense industrial policy: A simulation model analysis of the Norwegian defense industry

The paper investigates the trade-off between innovation and defense industrial policy. It presents an agent-based simulation model calibrated for the Norwegian defense industry that compares different policy scenarios and examines the effects of a pending EU market liberalization process. The paper points to two main results. (1) It finds that a pure scenario where national authorities focus on, and provide support exclusively for, either a) international competitiveness or b) national defense and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defense and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defense and security objectives. Policy makers will have to choose which to prioritize, and set a clear agenda focusing on one of the two objectives.     

Bank liquidity,the maturity ladder,and regulation

We investigate the liquidity management of 62 Dutch banks between January 2004 and March 2010, when these banks were subject to a liquidity regulation that is very similar to Basel III’s Liquidity Coverage Ratio (LCR). We find that most banks hold more liquid assets against their stock of liquid liabilities, such as demand deposits, than strictly required under the regulation. More solvent banks hold fewer liquid assets against their stock of liquid liabilities, suggesting an interaction between capital and liquidity buffers. However, this interaction turns out to be weaker during a crisis. Although not required, some banks consider cash flows scheduled beyond 1 month ahead when setting liquidity asset holdings, but they seldom look further ahead than 1 year.     

An investigation of the impact of internal labour markets in the hotel industry

Maintaining a stable and competitive workforce is a key element of the role of management, and there has emerged a barrage of ‘recipes’ to achieve this. All too frequently, however, these new concepts replace the old, with little justification other than being innovative. This article investigates the concept of an internal labour market [ILM] as a strategic management tool. Past studies by labour market researchers have confirmed the value of the components of an ILM, yet none has investigated the concept of an ILM as a coherent whole. This paper investigates the impact of the components of an ILM – training, promotional opportunity and job security – on the key employee attitudes of job satisfaction, organisational commitment and employee intention to leave. It then examines the impact of this concept as a single variable on the employee attitudes. The study is conducted in the service industry, in particular, the hotel sector, and examines the responses of 297 non-supervisory hotel employees. The findings suggest that the use of a holistic ILM strategy could provide a new means for management to retain and develop a stable and satisfied workforce.     

Innovation and the competitiveness of industries: Comparing the mainstream and the evolutionary approaches

The study of the relationships between innovation and the competitiveness of industries is an important topic for both, academic research and economic policy. The huge economics literature flourished in the last couple of decades on the subject broadly falls into two distinct research traditions, namely the mainstream R&D spillovers approach and the evolutionary economics view. Both traditions agree on the important role played by innovation and the inter-sectoral diffusion of advanced knowledge for the competitive performance of industrial sectors. Behind this general agreement, however, the two approaches are radically different. This paper shows that, at a deeper level of analysis, the mainstream and evolutionary views do indeed differ with respect to their theoretical foundations, empirical research and policy implications. In a nutshell, while the mainstream R&D spillover approach is inspired by a traditional view of economic policy based on a market-oriented approach, the evolutionary view is on the contrary consistent with the idea that institutional arrangements and policy interventions do indeed play a fundamental role for shaping innovation patterns and their impacts on the competitiveness of industries.     

Collateral secured loans in a monetary economy

This paper presents a microfounded model of money where durable assets serve as a guarantee to repay consumption loans. We study a steady state equilibrium where money and credit coexist. In such an equilibrium, a larger investment in durable capital relaxes the borrowing constraint faced by consumers. We show that the occurrence of over-investment and the behavior of capital accumulation depend on the rate of inflation, the relative risk aversion of agents and the marginal productivity of the capital goods.     

Do Traditional Chinese Cultural Values Nourish a Market for Pirated CDs?

On one hand, Chinese consumers are well known for conspicuous consumption and the adoption of luxury products and named brands. On the other hand, they also have a bad reputation for buying counterfeit products. Their simultaneous preferences for two contrasting types of product present a paradox that has not been addressed in the literature. This study attempts to present an explanation of this paradox by examining the effects of traditional Chinese cultural values and consumer values on consumers’ deontological judgment of pirated CDs and the amount of social benefits they perceive they gain from them. We interviewed 300 Hong Kong Chinese consumers, and found that face consciousness increased materialism and risk aversion, thereby producing a favorable deontological judgment of pirated CDs. Face consciousness also has a direct effect on the amount of social benefits perceived in pirated CDs. Both favorable deontological judgment and perceived social benefits contributed to a strong intention to buy pirated CDs. The results are discussed in a cultural perspective.     

Triggered or evaluated? A qualitative inquiry into the decision to start using e-grocery services

ABSTRACT

This qualitative paper examines the importance of both situational factors and adoption constructs in the decision to use online grocery services for the first time. To that end, we have conducted semi-structured in-depth interviews with (one or more representatives of) 15 households in Flanders (the Dutch-speaking part of Belgium), who all use Collect & Go, Belgium’s most popular online grocery service. The content analysis shows that adoption is often induced by situational factors (such as health problems or changes in family circumstances), but not in isolation from an evaluation of technology adoption constructs (such as performance expectancy and social influence). Indeed, we find that immediately or soon after the emergence of the initial trigger, consumers start thinking of the service in terms of innovation characteristics. Moreover, unlike what the literature suggests, adoption is not discontinued when the initiating trigger disappears.     

National culture and financial literacy: international evidence

ABSTRACT

We examine to what extent (aspects of) national culture can explain cross-country variations in financial literacy. Our results, for a sample of 92 countries, show that Hofstede’s dimensions of power distance and individualism explain, respectively, over 40 and 60 per cent – which is substantially more than national cognitive scores and standard economic variables. In particular, we find that financial literacy is lower in countries where power distance is high, and that the opposite is true for individualism. Uncertainty avoidance would seem be negatively related with financial literacy, but the evidence is not so strong. For masculinity, indulgence, and long-term orientation we find no significant impact. Overall, our results highlight the need for additional (interdisciplinary) theories that can improve our understanding of the determinants of financial literacy and better guide policies in this area.