Effects of Relational Capabilities and Power Asymmetry on Innovativeness and Flexibility of Sub‐Sahara Africa Small Exporting Firms

The objective of this study is to examine the effects of relational capabilities and exercise of power on innovativeness, flexibility, and performance of Sub‐Sahara Africa small exporters. Data from a sample of 206 small fresh produce suppliers in Zimbabwe that had long‐term relationships with retail buyers in export markets were analyzed using structural equation modeling. Findings suggest that long‐term cooperation between small suppliers and buyers negatively influenced innovativeness and flexibility. However, trust and commitment, as well as dependence, positively impacted innovativeness of small suppliers but had negative effects on flexibility. Further, innovativeness negatively influenced firm performance, whereas a positive link emerged between flexibility and performance.     

Structural Change and the Labor-market Effects of Globalization

The paper develops a simple political‐economy model of unemployment benefit determination in a small open economy characterized by bargaining between firms and unions. The authors derive a number of comparative static results and present empirical results for a panel of OECD countries that are broadly consistent with the theory.     

CHOICES AND OPPORTUNITIES: Low-Income Rental Housing in Indonesia*

Rental housing is increasingly acknowledged as a valuable housing solution in developing countries and is therefore becoming a focus for policy discussions. This paper describes the rental market in Indonesia based on the results of 60 semi-structured renter-related interviews. It appears that the rental subsector is housing a large and highly varied portion of the urban population quite effectively. The results of this survey indicate that rental units are generally produced on a small scale on or near the same property as the owner's home. The unit construction occurs in increments as funds become available and is rarely financed formally. This represents an easy and flexible form of investment for a group otherwise generally uninterested in placing savings in formal institutions. The typical rental property owner is less motivated by profit accumulations than by the security of a steady supplemental income and the possibility of a future unit for his children. As a result, tenant-landlord relationships tend to be quite casual and family-like, unlike the exploitative relationship often described. Further studies need to explore how future policy could support the activities of the Indonesian rental market and improve the quality of rental units that are being produced.     

Incentives for entrepreneurship and supporting institutions

Zusammenfassung Anreize für unternehmerisches Handeln und Institutionen zur Unterstützung von Innovationen. - Zun?chst analysiert der Artikel Sinn und Bedeutung von unternehmerischem Handeln und, was hier in der Schumpeterschen Betrachtungsweise auf dasselbe hinausl?uft, Innovationen im Wirtschaftsleben. Dann folgt ein Bericht über vorl?ufige Ergebnisse einer Fragebogenaktion der Universit?t Yale, mit der erforscht werden soll, wie sich die Unternehmen die Früchte ihrer (erfolgreichen) Innovationsanstrengungen zu eigen machen und wie wirksam solche Formen wie z. B. Patente und schneller Verkauf neuer Produkte sind. Dabei zeigen sich erhebliche Unterschiede zwischen den Industrien. In den beiden letzten Abschnitten werden institutionelle Strukturen untersucht, die den Innovations-prozeΒ in den Unternehmen tragen und unterstützen. Die Bedeutung der angewandten Forschung für technische Neuerungen wird ebenso herausgestellt wie die für viele Industrien wichtige Rolle der Universit?tsforschung.

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Résumé Incitations pour les entrepreneurs et des institutions qui supportent l’innovation. — D’abord l’article analyse la signification et l’importance des entrepreneurs et de leurs innovations pour l’activité économique. La perspective développée ici est fondamentalement Schumpeterienne. Après, on donne un rapport sur des résultats préliminaires d’un questionnaire de Yale désigné á explorer les formes principales qui sont appliquées á s’approprier des rendements d’une innovation dans des industries différentes et qui doit explorer l’efficacité de telles formes. Il y a des différences interindustrielles très considérables. Enfin, l’article explore des dimensions différentes des structures institutionnelles qui supportent la production des innovations. L’auteur souligne l’importance des sciences appliquées pour l’innovation aussi bien que le r?le vital joué par la recherche universitaire dans beaucoup d’industries.

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Resumen Incentivos para el empresariado e instituciones de apoyo. - La primera parte de este ensayo se ocupa de analizar el significado e importancia del empresariado y la innovación en la actividad económica. La perspectiva désarroilada es básicamente Schumpeteriana. La segunda parte da cuenta de los resultados preliminares de un cuestionario de Yale que tiene el fin de explorar los principales mecanismos usados para apropiar retornos de una innovación en diferentes industrias y su efectividad. Hay diferencias inter-industriales muy considerables. La tercera y cuarta parte del ensayo exploran varias dimensiones de estructuras de apoyo institucionales. Se destaca la importancia de las ciencias aplicadas para la innovación asf como tembién el rol vital que cumple la investigación universitaria en muchas industrias.

     

Technological change and factor mix over the product cycle: A model of dynamic comparative advantage

This paper presents a simple dynamic model of how, for a given set of factor prices, the optimizing mix of factor inputs changes over a product cycle, and of how (as a result) comparative advantage in international trade shifts. The model is designed to be consistent with, and to explain, the following stylized facts. When a new technology comes into being, follow-on improvements of the original basic design tend to occur at a rapid rate. Opportunities for improvement and the nonroutinized nature of the production process put a premium on flexibility and insight. As the technology settles down, the premium placed on problem solving ability declines, obsolescence of equipment occurs less rapidly, and unskilled workers and machinery are substituted for skilled workers.