Dynamics in ICT cooperation networks in selected German ICT clusters

High innovation capability is indispensable for generating economic growth in developed economies. Cooperations in the innovation process are entered into by companies for reasons of risk diversification or costs and often considered to be an efficient strategy to increase a company’s knowledge basis. Regional economic literature very often believes that regional agglomeration of companies, i.e. cluster formation, will also lead to increased local networking, i.e. also to cooperations between companies or between company and research institutes in the innovation process. A social network analysis of the two German ICT regions performed with patent data was able to show that cluster formation coincides with a dynamic increase of cooperations measured by joint patent applications. However, the cooperations are characterized by integration of extra-regional companies and research institutes rather than being intraregional.     

Two-stage non Gaussian QML estimation of GARCH models and testing the efficiency of the Gaussian QMLE

In generalized autoregressive conditional heteroskedastic (GARCH) models, the standard identifiability assumption that the variance of the iid process is equal to 1 can be replaced by an alternative moment assumption. We show that, for estimating the original specification based on the standard identifiability assumption, efficiency gains can be expected from using a quasi-maximum likelihood (QML) estimator based on a non Gaussian density and a reparameterization based on an alternative identifiability assumption. A test allowing to determine whether a reparameterization is needed, that is, whether the more efficient QMLE is obtained with a non Gaussian density, is proposed.     

The formation and evolution of childhood skill acquisition: Evidence from India

Building on recent advances in the literature and using a rich data set for two cohorts of children aged between one and twelve for Andhra Pradesh, India, we investigate the determinants of children's cognitive as well as non-cognitive skills. We find evidence of self-productivity for cognitive skills and cross-productivity effects from cognitive on non-cognitive skills. Moreover, we demonstrate that parental investment has contemporaneously positive effects on skill levels for all age groups. Investigating other determinants of these skills, we find child health at age one to influence cognitive abilities at age five, whilst child health at age one is influenced by parental care already during pregnancy and earliest childhood. Understanding the determinants which account explicitly for the effect of a large number of child, caregiver and household characteristics provides insights with regard to possible policy interventions to improve the chances of children in poor environments of developing cognitive and non-cognitive skills crucial for success in many spheres of life.     

The Aftermath of Anti-Dumping: Are Temporary Trade Barriers Really Temporary?

A consistent finding in the literature is that anti-dumping (AD) acts as a significant barrier to bilateral trade, in particular, during the time such measures are in force. Adding to a relatively scarce empirical literature, however, we identify adverse impacts of AD which survive well beyond its revocation. More specifically, while we cannot rule out a slight post-revocation recovery, we find empirical evidence that once affected bilateral trade does not fully recover on average following revocation. We use panel data at the Harmonized System four-digit (HS4) level of aggregation to produce these results and show that they are robust to the duration of AD cases, the time of their imposition and revocation, differentiation by economic sector and the nature of imposing countries. Several explanations for our observed empirical results seem plausible, and we provide a theoretical framework which suggests our results could be driven by market exit or underinvestment of targeted firms.

     

Firm-hosted online brand communities and new product success

Many firms use online brand communities to support the launch of their new products. This study proposes a typology of firm-hosted online brand communities and examines whether such a classification system can improve predictions of new product success. A cross-industry analysis of 81 firm-hosted online brand communities shows that these communities reflect three archetypes. A subsequent survey of 170 community-hosting firms in the consumer durable goods industry reveals that the three types of communities are not equally important for new product success. Moreover, one archetype generally underperforms the other two as a new product support mechanism. Overall, the results demonstrate that firm-hosted online brand communities can be a predictor of new product success.     

The ‘Urban Age’ in Question

Foreboding declarations about contemporary urban trends pervade early twenty‐first century academic, political and journalistic discourse. Among the most widely recited is the claim that we now live in an ‘urban age’ because, for the first time in human history, more than half the world's population today purportedly lives within cities. Across otherwise diverse discursive, ideological and locational contexts, the urban age thesis has become a form of doxic common sense around which questions regarding the contemporary global urban condition are framed. This article argues that, despite its long history and its increasingly widespread influence, the urban age thesis is a flawed basis on which to conceptualize world urbanization patterns: it is empirically untenable (a statistical artifact) and theoretically incoherent (a chaotic conception). This critique is framed against the background of postwar attempts to measure the world's urban population, the main methodological and theoretical conundrums of which remain fundamentally unresolved in early twenty‐first century urban age discourse. The article concludes by outlining a series of methodological perspectives for an alternative understanding of the contemporary global urban condition.     

Corporate governance and incentive contracts: Historical evidence from a legal reform

This paper proposes to exploit a reform in legal rules of corporate governance to identify contractual incentives from the correlation of executive pay and firm performance. In particular, we refer to a major shift in the legal and institutional environment, the reform of the German joint-stock companies act in 1884. We analyze a sample of executive pay for 46 firms for the years 1870–1911. In 1884, a legal reform substantially enhanced corporate control, strengthened the monitoring incentives of shareholders, and reduced the discretionary power of executives in Germany. The pay–performance sensitivity decreased significantly after this reform. While executives received a bonus of about 3–5% in profits before 1884, after the reform this parameter decreased to a profit share of about 2%. At least the profit share that is eliminated by the reform most likely was incentive pay before. This incentive mechanism was replaced by other elements of corporate governance.     

Competition and managerial autonomy

I formalize and challenge the idea that competition forces managers to make better choices, thus favoring managerial autonomy in decision making. If managers care about keeping their position or avoiding interference, and they can make strategic choices that affect both expected firm profits and their riskiness, even if competition at first pushes the manager towards profit maximization, further increases in competition might lead him to take excessive risks. To curb this possibility, the principal owner optimally reduces the degree of autonomy granted to the manager. Hence, higher levels of managerial autonomy are more likely for intermediate levels of competition.     

Customer experience management: toward implementing an evolving marketing concept

Although research continues to debate the future of the marketing concept, practitioners have taken the lead, appraising customer experience management (CEM) as one of the most promising marketing approaches in consumer industries. In research, however, the notion of CEM is not well understood, is fragmented across a variety of contexts, and is insufficiently demarcated from other marketing management concepts. By integrating field-based insights of 52 managers engaging in CEM with supplementary literature, this study provides an empirically and theoretically solid conceptualization. Specifically, it introduces CEM as a higher-order resource of cultural mindsets toward customer experiences (CEs), strategic directions for designing CEs, and firm capabilities for continually renewing CEs, with the goals of achieving and sustaining long-term customer loyalty. We disclose a typology of four distinct CEM patterns, with firm size and exchange continuity delineating the pertinent contingency factors of this generalized understanding. Finally, we discuss the findings in relation to recent theoretical research, proposing that CEM can comprehensively systemize and serve the implementation of an evolving marketing concept.