Managing knowledge transfer in international alliances

Although managing knowledge assets is critical for firm success, organizational knowledge is hard to capture, transfer, and make useable. Because knowledge is embedded in organizational structures, processes, procedures, and routines, it is not easy to separate knowledge from the context in which it has been created. In addition, when knowledge is highly tacit, it is difficult to transfer without moving the people who have the knowledge. Thus, even though many studies have argued that the ability to transfer knowledge is a primary source for a firm's competitive advantage, relatively little is known about how to transfer knowledge within and across organizational boundaries. This article explores organizational knowledge transfer and illustrates the discussion with two cases of successful knowledge transfer. Two related and fundamental premises anchor the article: (1) knowledge‐transfer effectiveness can be actively managed and improved upon and (2) it is possible to design organizational strategies and structures to support and enhance knowledge sharing. © 2008 Wiley Periodicals, Inc.     

AN ARBITRAGE PRICING APPROACH TO EVALUATING MUTUAL FUND PERFORMANCE

A test procedure, derived from arbitrage pricing theory, that permits the measurement of the security selection performance of professional portfolio managers is developed and applied to a sample of mutual funds over the period of the 1970's. The evidence indicates that more than one factor was present in the market during that interval as a systematic influence on the profile of securities returns. Consistent with prior studies, the evidence also suggests that mutual fund portfolios did not outperform a passive buy-and-hold investment strategy. A comparative analysis of the same data, using performance measures based on the single-factor market model, produces similar but less powerful results, both in the aggregate and at the individual fund level.     

Forecasting with an econometric model: Some recent results using the national institute model

It is widely believed that the large econometric models cannot be used for forecasting without considerable intervention on the part of the forecaster. In this paper we challenge this view by reproducing a number of recent forecasts published by the National Institute but without the ad hoc interventions used at the time. We show that in no case would the forecast, produced by the model used mechanically, have been radically different from that actually published. Further, in an ex-post comparison against actual out-turns, the mechanical model forecast is not obviously dominated by the published version.     

Exporting and Economic Performance: Firm‐level Evidence of Spanish Manufacturing

In a previous paper, Delgado, Fariñas and Ruano (2002) report TFP differences between exporters and non‐exporters on the basis of a sample of Spanish manufacturing firms. In this paper, we extend the previous analysis in three directions using a similar data set. First, we investigate additional economic performance differences between exporters and non‐exporters. Second, we measure TFP differences estimating production functions that control for unobserved heterogeneity and simultaneity bias. Third, we explore the self‐selection and learning‐by‐exporting hypothesis as explanations for the greater performance of exporters. With respect to the results, we confirm that many indicators of economic performance such as productivity, size, wages and innovation are greater in exporting firms. Furthermore, TFP differences between exporters and non‐exporters estimated with parametric methods are remarkably similar to those estimated using index numbers. Finally, performance differences and transition patterns between the export market and the domestic market indicate higher performance for entering exporters with respect to non‐exporters at the moment of entry. We find evidence of selection in the entry and the exit side of the export market. One of the basic results that we obtain indicates that after controlling for self‐selection, the productivity growth of entering exporters does not significantly change with respect to non‐exporters. As the evidence we find indicates no systematic changes in performance between non‐exporters and exporters after entry takes place, we do not confirm the learning‐by‐exporting hypothesis.     

MODELING LIQUIDITY EFFECTS IN DISCRETE TIME

We study optimal portfolio choices for an agent with the aim of maximizing utility from terminal wealth within a market with liquidity costs. Under some mild conditions, we show the existence of optimal portfolios and that the marginal utility of the optimal terminal wealth serves as a change of measure to turn the marginal price process of the optimal strategy into a martingale. Finally, we illustrate our results numerically in a Cox–Ross–Rubinstein binomial model with liquidity costs and find the reservation ask prices for simple European put options.     

Testing the Association Between Production and Financial Performance: Evidence from a Not-for-Profit, Cooperative Setting

A sample of sixty-three Australian credit unions is used to compare the financial performance measures provided by accounting-based financial ratios, and production performance as measured by efficiency indices. Whilst the evidence found supports the posited association between financial ratios and efficiency indices, the usefulness of such information is contingent upon which set of a priori behavioural assumptions have been used. More particularly, the results question the applicability of a traditional profit-based, physical production approach to a not-for-profit, cooperative setting.     

PRODUCTIVITY, COMPETITIVENESS AND CONVERGENCE IN THE EUROPEAN ECONOMY: SUPPLY-SIDE CONSIDERATIONS

This paper argues that international trade and foreign directinvestment by transnational corporations need not automaticallylead to increased competitiveness and convergence. Supply-side,notably industrial policies, may facilitate this process providedthey recognise that government measures may impact differentlyon different groups within and between countries and that theymay have different short-, medium- and long-term effects. Thisnecessitates focusing on global welfare and convergence-enhancingpolicies in the short- and long-term. In the context of a modelof the determinants of produetivity and competitiveness, thispaper suggests that productivity-enhancing measures are thebest available for this purpose. It then proposes an industrialstrategy in line with the above, paying particular attentionto the role of institutions and institution building.