Stock of downstream complementary assets as a catalyst for product innovation during technological change in the U.S. machine tool industry

Research summary : We investigate the effect of incumbents' stock of downstream complementary assets on their product innovation during a disruptive technological change. We theorize that a firm's stock of downstream complementary assets, by providing critical information about shifting demand conditions, will play a catalytic role in firm adaptation during such a change. Using the advent of disruptive computer numerical control machine tools in the U.S. machine tool industry during the 1970s and 1980s as the context, we find that firms with greater stocks of downstream complementary assets are likely to be product innovation leaders during such a change. Managerial summary : Disruptive changes are challenging firms across industries. We concentrate on the U.S. machine tool industry during the 1970s and 1980s when Japanese manufacturers with disruptive computer numerical control systems challenged the U.S. manufacturers. We find that, under the threat of disruption, the greater the stock of downstream complementary assets a U.S. machine tool manufacturer has, the more likely it is to be the product innovation leader with the disruptive technology. Our findings provide novel insights for managers in companies that face disruptive changes and can help them avoid the consequences of such changes as predicted by prior research. Copyright © 2016 John Wiley & Sons, Ltd.     

Collision density: driving growth in urban entrepreneurial ecosystems

The growth of entrepreneurial ecosystems is becoming increasingly dynamic. We introduce the concept of collision density, defined as the potential frequency of interdisciplinary interactions, to explain this phenomenon. We develop hypotheses about the impact of collision density on the growth of entrepreneurial ecosystems. This impact is hypothesized to be amplified by the presence of angel financing. We find support for our hypotheses in panel data from 89 urban entrepreneurial ecosystems of 92,229 investments between 2007 and 2014. We conclude with discussions of the the implications for research and practice.     

Literature,cultural identity and the limits of authenticity: a composite approach

Although tourism scholarship has paid much attention to the concept of authenticity in relation to the homogenisation of tourism representation, this term has limits that curb its usefulness for analysing subtle interrelations of place, representation and identity. Some recent work has attempted to recuperate authenticity by associating it with experience and activity, however we suggest that the concept of cultural identity allows for greater attention to the fluid movements of social power relations that inform the tourist site. By undertaking a comparative analysis of three global tourist sites located in the Middle East (Jerusalem), North America (Moose Jaw, Saskatchewan) and Europe (Isle of Wight), this article discusses the politics of representation vis à vis identity as manifested in a spectrum of tourism‐related literature ranging from pamphlets, maps and guidebooks, to more creative approaches in contemporary novels and poetry. This comparative survey of literature explores questions of identity on several fronts: first, it prompts questions about how religious, historical and national identities are formulated in and through the tourist site; second, it leads to an assessment of a site's claim to status as a work of art that prompts aesthetic identification; and finally, it allows one to consider how other works of art — in this case, novelistic or poetic representations — both affirm and question identities presented by standard tourist literature. These alternative textual representations demonstrate not only how cultural identity as represented in the tourist site is an active site of struggle, but also present alternative politics of place and identity that enable a greater diversity of interpretations of the tourist site. Copyright © 2004 John Wiley & Sons, Ltd.     

Interest and reaction time analysis of credit card offers: Managerial implications of high level research procedures

This paper presents a new approach to the optimisation of direct mail offers. Conjoint measurement will be used to identify two aspects of an offer: the degree of interest; and the speed at which an individual processes the information. The approach allows the marketer to create offers that are simultaneously attractive to customers and easy to understand. The approach is illustrated by a credit card case study.     

Alternative Solutions to Underinvestment, Under Equity and Credit Rationing

We compare alternative solutions to underinvestment (UI) problems in firms subject to limited access to equity markets, interest ceilings, and constraints on the volume of debt. Collaterals (assets or compensating balances) and credit insurance ('regular' or 'outcome' insurance whereby the premium is paid at the end of the insurance period) are compared on the basis to their costs and their effective use of financial sources. It is shown that when there is no moral hazard problem, credit insurance is the most effective instrument. Otherwise, 'outcome' insurance program is the most effective one.     

Cross-Hedging: Basis Risk and Choice of the Optimal Hedging Vehicle

The basis between a futures contract and its underlying instrument is an important measure of the cost of using the futures contract to hedge. In a cross-hedge, the relative size of the basis of alternative hedging vehicles often plays a decisive role in the selection of the optimal hedging vehicle. After adjusting hedge ratios for basis risk, a genuine risk-cost trade-off is seen in hedging 90-day certificates of deposit with either the Treasury bill contract or the Eurodollar contract. The Eurodollar contract was not uniformly superior as generally believed.