Understanding offshoring: A research framework based on disintegration, location and externalization advantages

We present an analytical framework explaining offshoring in this paper. We address the question: why do firms offshore their business functions? Given the growing prevalence of offshoring as a dominant business practice in the world of global business, this question merits further research attention. We propose that firms embark on offshoring when they perceive three sets of interrelated advantages: disintegration advantages (D), location-specific resourcing advantages (L) and externalization advantages (E). Theories from multiple disciplines form the foundation of Disintegration–Location–Externalization (DLE) framework. Implications for managers, government policy makers and recommendations for future research are explored.     

Illicit Drug Use,Employment, and Labor Force Participation

Illicit drug use has declined among the U.S. adult population, but national surveys show the majority of illicit drug users are employed. Concern about workplace productivity, absenteeism, and safety has led many employers to establish employee assistance and drug testing programs. Given the sharp interest in workplace interventions, more information is needed about the relationships between drug use and labor market status. This study estimated the probability of employment and labor force participation for different types of drug users using nationally representative data from the 1997 National Household Survey on Drug Abuse. Results strongly indicated that chronic drug use was significantly related (negative) to employment for both genders and labor force participation for males. Furthermore, nonchronic drug use was not significantly related to employment or labor force participation. These findings suggest that workplace policies for illicit drug use should consider chronic or problem drug users apart from light or casual users.     

Exchangeability, Correlation, and Bayes' Effect

We examine the difference between Bayesian and frequentist statistics in making statements about the relationship between observable values. We show how standard models under both paradigms can be based on an assumption of exchangeability and we derive useful covariance and correlation results for values from an exchangeable sequence. We find that such values are never negatively correlated, and are generally positively correlated under the models used in Bayesian statistics. We discuss the significance of this result as well as a phenomenon which often follows from the differing methodologies and practical applications of these paradigms – a phenomenon we call Bayes' effect.     

Interest rate, demand and input price uncertainty and the value of firms

In an infinite-horizon inventory model, an increase in interest rate uncertainty increases the value of a firm which has positive value. An increase in input price uncertainty increases the value of the firm. If decisions are made before the realization of demand uncertainty, increased uncertainty about an additive demand shock reduces the value of a price-setting firm with a concave value function, and leaves unchanged or increases the value of a quantity-setting firm. If decisions are made after the realization of demand uncertainty, an increase in the uncertainty of an additive demand shock increases the value of the firm.     

Towards A New Approach to Development Management1

Abstract: Since attaining political independence African countries have achieved significant improvements in a number of social welfare indicators. However, the record of socio-economic development in Africa is generally poor both in absolute terms and in comparison with other regions of the world. Various reasons have been given for Africa's poor development record. This paper suggests that approaches to development management so far adopted in Africa are inadequete, and it propose the conceptual elements for a new approach to development management. Résumé: Depuis leur accès à I'indépendance, un certain nombre d'indicateurs de bien-être social des pays africains se sont très nettement améliorés. Toutefois, les résultats concernant le développement socio-économique de l'Afrique est, en règle générale, médiocre en chiffres absolus et si on le compare avec d'autres régions du monde. Pour expliquer ces résultats, divers raisons ont été avancées. Ce document donne à penser que les approches adoptées jusqu'ici en Afrique, touchant la gestion du développement, sont inadaptées à la situation. L'auteur propose donc des éléments conceptuels pour une nouvelle approche de la gestion du développement     

跨国公司在华品牌本土化战略和启示

在中国市场，企业的产品竞争正逐渐演变为品牌竞争，品牌战略已成为企业占有市场的有效途径。跨国公司凭借其品牌优势所实施的品牌本士化战略在中国市场的竞争中居于有利地位，而国内企业在品牌战略的一些错误做法导致其在竞争中远远地落在跨国公司后面，实施正确的品牌扩张策略已是刻不容缓.     

Geographic concentration and vertical disintegration: Evidence from China

Existing theoretical literature predicts that geographic concentration encourages vertical disintegration of firms. Nevertheless, empirical evidence of this prediction is limited, especially in developing countries. Using data on manufacturing firms from China, this paper documents a positive correlation between geographic concentration and vertical disintegration. Additionally, this paper uses the instrumental variable approach to address the issue of endogeneity and finds that geographic concentration has a positive causal effect on vertical disintegration.