Ignorant Theory and Knowledgeable Workers: Interrogating the Connections between Knowledge,Skills and Services

This article builds on recent critiques of the knowledge economy to argue that key growth areas in future employment will be in low level service jobs rather than knowledge work as currently understood. The article discusses the knowledge, skills and competencies involved in interactive service work. It suggests that knowledge which is contextual, social or tacit has been taken to be of lesser value in relation to competitive advantage. It highlights the contrast, therefore, between the growth in interactive service work and the focus of the knowledge management literature on a small sub‐set of total employment. Two case‐studies of interactive service work, one drawn from a range of service sectors and the other from a call‐centre setting, provide empirical material which highlights the skills required by em‐ployers in this area. Technical skills were seen as less important than aesthetic and social skills. These cases highlight the management of social skills and competencies as critical to interactive service work. Workers need to develop an understanding of themselves that allows them to consciously use their emotions and corporeality to influence the quality of the service. This leads to the conclusion that the interactive service sector should not be conflated with knowledge work. Rather, it is more important to focus on the broader need for knowledgeability in work, and so broaden understanding of labour in the contemporary workplace.     

“Fifty in five”: The prospects for merger in the electric utility industry

By analyzing four case studies of merger attempts between electric utilities, we conclude that there are not strong incentives for a wave of combinations in the industry. Potential synergy gains do not provide a strong motivation since they are likely already being captured through joint ventures and coordination agreements. Those that still exist would most likely be distributed to rate payers by regulatory decisions. Managerial incentives of the bidder are countered by the desire of target management to remain independent. Potential gains to the financial community from a wave of mergers are large, but the regulatory process provides a dampening of this otherwise strong incentive.     

Can/Should/Will A Niche Become the Norm? Organic Agriculture's Short Past and Long Future

A theory is proposed that explains the evolution of a market based on a quality variant as it goes from being a niche to the market norm. Organic commodities are described as such a quality variant and used to focus on the economic and policy issues that arise during a market's evolution. It is shown how organic products in general can become the norm in many American commodity markets. However, there is disagreement over whether it should and much uncertainty about whether it will. The current status of two organic markets is discussed to illustrate empirical issues. (JEL Q130, Q110 , Q100 )     

Edith Penrose's Contributions to the Resource-based View: An Alternative Perspective

ABSTRACT Edith Penrose's work has been widely acknowledged to have played a central role in providing the intellectual foundations of the resource‐based view. This position, however, was recently challenged in a paper by Rugman and Verbeke (2002 ). In this paper we address the three main arguments of Rugman and Verbeke and, by drawing on her writings, demonstrate that their arguments are materially incorrect. While readily conceding that Penrose's primary goal was to explain the growth of firms, we show that her analysis of path‐dependent firm evolution anticipated many key propositions of the resource‐based view.     

Economic Growth with Foreign Capital

In growth theory, foreign investment places a small open economy in the international steady state. In applied growth theory, foreign investment is assumed to shift technology. The present growth model separates foreign from domestic capital and develops the steady state where both capital/labor ratios are stationary. A capital scarce country would attract foreign investment and may arrive at a steady state with perpetual foreign investment. Such a steady state foreign investment host is characterized by low saving and high labor growth rates, and source countries the opposite. Incomplete convergence characterizes economic growth with foreign capital.     

Intra-industry differences in vertical integration, heterogeneous costs and pricing: the case of web hosting

In many differentiated product industries, both traditional and “new economy” activities, vertically integrated firms also supply inputs to apparent rivals in the downstream business. This generates heterogeneity between low- and high-sunk cost suppliers with implications for entry and competitive conduct. The web hosting market is typical with primary suppliers operating alongside resellers who rent server space from them. We explore the impact of competition in US hosting using a unique dataset covering 15,000 packages offered by 3,500 firms. The results suggest price is sensitive to competitor clustering in quality space; an outcome consistent with easy entry for resellers with ultra-low fixed costs.