Innovation and ICT use in the EU: an analysis of regional drivers

Innovation and the use of information and communication technologies (ICT) are key areas for the European Cohesion Policy. Studies available at the regional level explore innovation and ICT use incorporating different variables, while those investigating ICT use mainly focus on that of households. This paper investigates the existence of common factors for innovation and ICT at the regional level, considering not only ICT use by households but also that of firms. Using factorial and spatial regression analysis, we find that although ICT use and innovation are mainly explained by different variables, knowledge-intensive services and the percentage of population aged 15–64 are common to all of them. In addition, ICT use by households and ICT use by firms are basically driven by different factors. Government quality is the main factor explaining ICT use at home, while ICT use by firms is mostly driven by employment in knowledge-intensive services. R&D is the main variable explaining innovation. We also find positive spatial effects, which are particularly notable in ICT use by households. The results stress the importance of promoting specialization strategies based on the knowledge economy that may contribute to creating synergies between innovation and ICT use in different environments.     

Why some firms adopt telecommuting while others do not: A contingency perspective

Using a contingency perspective and data from 122 CEOs of Spanish firms, this paper examines what makes a firm likely to adopt telecommuting. We hypothesized that employer adoption of telecommuting would depend on organizational constraints (age and size of the firm), the international composition of the workforce, and the top executives' leadership style. In turn, we argue that firms adopting telecommuting would emphasize outcome‐based control systems. Our empirical evidence showed that telecommuting correlated with small organizational size, a high proportion of international employees, and variable compensation. A contingent reward leadership style at the top moderated the effects of firm age and internationalization on the adoption of telecommuting. © 2009 Wiley Periodicals, Inc.     

Retail Store Loyalty Management via an Analysis of Heterogeneity of the Service Elements

This paper follows a line of research opened up by a series of authors who use a marketing approach for the study of retail service productivity. Without departing from the line of reasoning established by these authors, the main purpose of this paper is to detect possible differences in marketing productivity within and between different types of retailing services, using a research model that includes both the firm's effort and that of the customer. The two services selected for this purpose are grocery outlets and petrol stations.     

TRAINING, JOB SECURITY AND INCENTIVE WAGES

This paper considers the optimal level of firm‐specific training by taking into account the positive effect of training on the expected duration of workers' current employment. In the framework of an efficiency wage model, a short expected job tenure represents a disamenity that reduces the penalty from shirking. As this disamenity increases, workers have an incentive to continue providing a positive level of effort only if they are compensated by a higher wage. We endogenize the employment separation rate by introducing firm‐specific training. Firm‐specific training creates a rent that is lost if the worker is separated from the firm. As a result, the firm will be more reluctant to fire its trained workforce in a recession. This implies that firm‐specific training can decrease current wages because it represents a commitment to lower future labour turnover.     

Supervisor and coworker support: a source congruence approach to buffering role conflict and physical stressors

The buffering effects of supervisor support on the stressor–strain relationship have proven elusive in prior research (Beehr, Farmer, Glazer, Gudanowski and Nair (2003), ‘The Enigma of Social Support and Occupational Stress: Source Congruence and Gender Role Effects,’ Journal of Occupational and Health Psychology, 8, 220–231). We built on emerging work on source congruence and conservation of resource theory to test a series of hypotheses intended to clarify these mixed findings. Using a sample of 768 employees from 45 organizations in North America, results from moderated regression analyses, showed that the effects of supervisor support on the stressor–strain relationship depended on source congruence. In accordance with our predictions, although we found buffering effects for the physical stressors–strain relationship, we found a reverse buffering effect for the role conflict–strain relationship. These differential buffering effects did not emerge when considering coworker support. We discuss the implications of our results for shedding light on the mixed evidence regarding buffering work stressors reported in prior research.     

Macroeconomic and financial stability in a monetary union: The case of Lithuania

In this paper, we study the implications of macroprudential policies in a monetary union for macroeconomic and financial stability. For this purpose, we develop a two-country monetary union new Keynesian general equilibrium model with housing and collateral constraints, to be calibrated for Lithuania and the rest of the euro area. We consider two different scenarios for macroprudential policies: one in which the ECB extends its goals to also include financial stability and a second one in which a national macroprudential authority uses the loan-to-value ratio (LTV) as an instrument. The results show that both rules are effective in making the financial system more stable in both countries, and especially in Lithuania. This is because the financial sector in this country is more sensitive to shocks. We find that an extended Taylor rule is indeed effective in reducing the volatility of credit, but comes with a cost in terms of higher inflation volatility. The simple LTV rule, on the other hand, does not compromise the objective of monetary policy. This reinforces the “Tinbergen principle”, which argues that there should be two different instruments when there are two different policy goals.     

Discovering new points of differentiation

Most profitable strategies are built on differentiation: offering customers something they value that competitors don't have. But most companies concentrate only on their products or services. In fact, a company can differentiate itself every point where it comes in contact with its customers--from the moment customers realize they need a product or service to the time when they dispose of it. The authors believe that if companies open up their thinking to their customer's entire experience with a product or service--the consumption chain--they can uncover opportunities to position their offerings in ways that neither they nor their competitors though possible. The authors show how even a mundane product such as candles can be successfully differentiated. By analyzing its customers' experiences and exploring various options, Blyth Industries, for example, has grown from a $2 million U.S. candle manufacturer into a global candle and accessory business with nearly $500 million in sales and a market value of $1.2 billion. Finding ways to differentiate one's company is a skill that can be nurtured, the authors contend. In this Manager's Tool Kit, they have designed a two-part approach that can help companies continually identify new points of differentiation and develop the ability to generate successful differentiation strategies. "Mapping the Consumption Chain" captures the customer's total experience with a product or service. "Analyzing Your Customer's Experience" shows managers how directed brainstorming about each step in the consumption chain can elicit numerous ways to differentiate any offering.     

What can economists do with South Africa's SAMs?

The South African Central Economic Advisory Service has recently published a report containing social accounting matrices for the economy as a whole, and for eight planning regions. This article provides a critical evaluation of these SAMs.

The Black states are includes in the SAMs, and the national SAM identifies seven income categories, four race groups, and ten occupational categories. Interindustry transactions are portrayed in a twenty‐four sector inter‐industry matrix. The regional SAM includes an analysis of racial incomes, and interregional flows of transfers from households, and trade and government transfers. A paradoxical result is that African migrant workers, who often hold the lowest occupations, appear in the top decile of the distribution of African incomes in the national SAM. The SAMs do not identify rural households, African households, in the rapidly growing fringe settlements around the metropolitan regions, and informal sector activities, and the article argues that these SAMs provide a snapshot of the economy which is severely out of focus.

The SAMs are based on a 1978 input‐output table and 1980 expenditure patterns. Since then changes in wage levels, the strength of Black unions, and the exchange rate of the Rand may have caused significant alterations in certain coefficients in the economy, possibly making the SAMs unsuitable for modelling policy changes.     

Bridging skills demand and supply in South Africa: The role of public and private intermediaries

ABSTRACT

Demand-led skills development requires linkages and coordination between firms and education and training organisations, which are major challenges considering that each represents a ‘self-interested’ entity. The need for a ‘collaborative project’ involving government, firms, universities and colleges, and other bodies is thus increasingly recognised. However, the crucial role of intermediaries has been largely overlooked. The article addresses this gap by investigating the main roles of public and private intermediaries across three case studies: sugarcane growing and milling, automotive component manufacturing, and the Square Kilometre Array sectoral systems of innovation. The research highlights the need for a move towards systemic thinking, to bridge across public and private objectives. It shows that private intermediaries play a larger role than is recognised in policy; that public–private intermediaries play crucial roles in coordination; and the potential for public intermediaries to contribute more effectively to systemic functioning.