Dependence on External Finance: An Inherent Industry Characteristic?

Rajan and Zingales (1998) use U.S. Compustat firm data for the 1980s to obtain measures of manufacturing sectors’ Dependence on External Finance (DEF). They take any differences in these measures to be structural/technological and thus applicable to other countries. Their joint assumptions about how to obtain representative values of DEF by sector and about why these values differ fundamentally have been adopted in additional studies seeking to show that sectors benefit unequally from a country’s level of financial development. However, the assumptions as such have not been examined. The present study, conducted with cyclically adjusted annual measures of DEF derived from U.S. industry data for 1977–1997, attempts to do so using data that are aggregated by sector.     

The strategic impact of external networks: subsidiary performance and competence development in the multinational corporation

This paper explores the importance of relational embeddedness in external networks as a strategic resource for performance and competence development in multinational corporations (MNCs). Two different types of relational embeddedness at the subsidiary level—business embeddedness and technical embeddedness—are proposed to have an influence on the subsidiary's market performance as well as its importance for competence development in the MNC. Using data on 97 Swedish MNC subsidiaries, five hypotheses are tested in a LISREL model analysis. The results suggest that technical embeddedness has a positive impact on both the subsidiary expected performance and its role in the development of products and production processes in the MNC. Indirectly, through external technical embeddedness, external business embeddedness also influences the sister units' product and process development and subsidiary market performance. Copyright © 2002 John Wiley & Sons, Ltd.     

New‐Keynesian Models and Monetary Policy: A Re‐examination of the Stylized Facts*

Using an empirical New‐Keynesian model with optimal discretionary monetary policy, we estimate key parameters—the central bank's preference parameters; the degree of forward‐looking behavior in the determination of inflation and output; and the variances of inflation and output shocks—to match some broad characteristics of U.S. data. The parameterization we obtain implies a small concern for output stability but a large preference for interest rate smoothing, and a small degree of forward‐looking behavior in price‐setting but a large degree of forward‐looking in the determination of output. Our methodology also allows us to carefully examine the consequences of alternative parameterizations and to provide intuition for our results.     

Embeddedness of innovation receivers in the multinational corporation: Effects on business performance

This paper investigates how relationship embeddedness in MNC subsidiaries’ corporate and external networks influences the contribution of innovation transfer to the recipient subsidiary's business performance. OLS regressions using data on the intra-MNC transfer of 224 innovations indicate that the embeddedness of a subsidiary's relationships in the corporate and external network positively affects the received innovation's contribution to business performance. More detailed analysis demonstrates that the positive link between a subsidiary's embeddedness in the external network and the contribution to business performance of receiving an innovation is negatively affected when the innovation is unique compared with other innovations on the market.     

Different open book accounting practices for different purchasing strategies

Extant studies of open book accounting focus primarily on data disclosure in long-term, committed purchasing arrangements. We extend research beyond that context by exploring the association between open book practices (in terms of nature and uses of disclosed data as well as conditions of data disclosure) and two different purchasing strategies. Three case studies are performed. Results indicate that within market procurement characterized by a transactional purchasing strategy, cost data primarily serve to reduce purchase price. Therefore, data disclosure is limited in scope and scale, occurs primarily during supplier evaluation and selection, and is characterized by an adversarial atmosphere. Incentives for suppliers to open their books focus on short-term tangible gains. Within a hybrid exchange arrangement characterized by a relational purchasing strategy, data disclosure supports cost reduction, e.g., through joint product development, and is more comprehensive. The atmosphere is less adversarial and suppliers reap long-term benefits.     

City in Change: Globalization,Local Politics and Urban Movements in Contemporary Stockholm

In this article contemporary city change in Stockholm is first described against a background of theories on global cities. Stockholm cannot be seen as a global city, but displays many typical signs of the ongoing development in global cities. In the article this is shown by examining the situation in Stockholm regarding the economic structure, especially the expanding IT‐sector, social and economic polarization, local politics and the efforts to improve the infrastructure. In the change of the city social movements have been very active. Since the 1960s three different kinds of movements have existed, which are described and analysed against a background of theories on social movements. The first of these, the so‐called neighbourhood movement, emerged at the end of the 1960s and had all the typical signs of the so‐called ‘new’ social movements of that time. In the 1990s a new environmental movement acted mainly against proposed big traffic‐routes. This movement reflected in its structure some important features of today's society: fragmentation, individualization and globalization. At the end of the 1990s a third movement emerged as a reaction against the new competitive urban politics and the ongoing change of the city. Finally, the modifying impact that movements and local factors in Stockholm have had on globalization is discussed, as well as the difficulty in estimating the impact of movements on local politics. L'article décrit d'abord l'évolution urbaine contemporaine à Stockholm, en fonction des théories sur les villes planétaires. Même si la capitale suédoise n'est pas censée en faire partie, elle présente nombre des caractéristiques du développement actuel de ces grandes villes mondiales. L'article le montre en examinant sa situation en matière de structure économique (en particulier, l'expansion de son secteur technologique informatique), de polarisation sociale et économique, de politique locale et d'efforts d'amélioration des infrastructures. Les mouvements sociaux ont largement contribuéà l'évolution urbaine. Depuis 1960, ils sont intervenus sous trois formes, décrites et analysées par rapport aux théories des mouvements sociaux. La première, le ‘mouvement de quartier’, est apparue à la fin des années 1960 et présentait tous les signes typiques des dits ‘nouveaux’ mouvements sociaux de l'époque. Dans les années 1990, c'est un mouvement environnemental qui a agi surtout à l'encontre des grands itinéraires de circulation proposés, révélant par sa structure quelques caractéristiques importantes de la société actuelle: fragmentation, individualisation et mondialisation. A la fin des années 1990, un troisième mouvement est né en réaction à la nouvelle politique urbaine concurrentielle et à l'évolution vécue par la ville. Pour finir sont discutées l'incidence, sur la mondialisation, des mouvements et des facteurs locaux propres à Stockholm, ainsi que la difficulté d'évaluer l'impact des mouvements sur la politique locale.     

Measuring to understand intangible performance drivers

The present qualitative study explores what eleven Swedish organizations have systematically worked at to increase the understanding of the importance of intangibles as performance drivers. The present analysis is accomplished using a combination of evolutionary theory, knowledge-based theory and organizational learning. The results indicate that assets in an accounting sense seem to be of less interest than perceptions of activities that enable future performance. These “enablers” are often customer and employee perceptions of individual, organizational and relational competence. The way for the firms to ascertain a continuous organizational learning process with respect to the value creation chain is to measure intangibles as well as to maintain organizational routines that ensure the transformation of measurement results into action.