The Impact of Product Market Competition on Employment Determination in Unionised and Non-Unionised Firms: Firm Level Evidence for the U.K.

In this paper we investigate the effect of increasedcompetition on employment inunionised andnon-unionised firms. We model product and labourmarket imperfections, and their interactions, in Nashequilibrium. The model predicts that employment lossin unionised firms in the face of increasedcompetition will be lower compared with non-unionisedfirms. This paradoxical outcome results from anoffsetting beneficial employment effect ofcompetition, which eliminates wage mark-ups inunionised firms. We find empirical support for thetheoretical prediction using U.K. firm level data overthe period 1985–1989.     

Spurious Rejections by Perron Tests in the Presence of a Break

In this paper, we concentrate on the case of an exogeneously chosen break date, but entertain the possibility that an incorrect choice is made. In fact, the Perron test statistics considered are invariant to any break in the generating process at the assumed break date. Our results therefore apply equally to the case of a generating process with two breaks, only one of which is specifically accounted for in the analysis. As in Leybourne et al . (1998), we find that a neglected relatively early break can lead to spurious rejections of the unit root null hypothesis. Moreover, for all but one of the tests analyzed, spurious rejections now also arise if a true break occurs relatively soon after the assumed break date.     

Mental Health and Wellbeing and Unemployment

This article examines the relationship between mental health and wellbeing and unemployment utilising the 1995 National Health Survey (1995 NHS) and the 1997 National Survey of Mental Health and Wellbeing of Adults (1997 SMHWB) data sets. Three indicators of mental health and wellbeing are adopted. The first is a psychological wellbeing measure derived from responses to questions included in the 1995 NHS on time felt down, happy, peaceful, and nervous (the SF-36 mental health scale). The second indicator relates to diagnoses of mental disorders including substance use disorders, affective disorders and anxiety disorders. Our final indicator relates to suicidal thoughts and plans and (unsuccessful) suicide attempts. On the basis of these measures, unemployed persons exhibit poorer mental health and wellbeing outcomes than the full-time employed.     

An Evaluation of Inertia Models of Unemployment

Two approaches have been used to model unemployment. The first, conventional, approach involves linking the unemployment outcome to observed indices of productivity, structural factors and discrimination such as educational attainment, location and birthplace. The second approach, the inertia model, involves using a person's labour market history as a way of including in unemployment models information on the 'unobservables' that influence employability. This paper evaluates the performance of both models of unemployment. The results provide unambiguous support for the inertia model when modelling unemployment. The inertia model has higher explanatory power, higher within-sample prediction rate success and fewer out-of-sample forecasting errors than the conventional model. The estimates from the inertia model can be used to provide quite accurate predictions of the risk of becoming unemployed. This is important if individuals at high risk of becoming unemployed are to be targeted for labour market assistance.     

The importance of being first : The case of prescription drugs in Canada

There is a growing literature on the importance of being first, which suggests that where there is uncertainty about the product quality of late entrants' brands the pioneering brand will retain a competitive advantage. This is consistent with studies of the U.S. drug industry. Using Canadian data for the drug industry it is shown that eliminating quality differences is a necessary but not sufficient condition for late entrants to gain market share. In addition, price competition has to be stimulated. Under these conditions the late entrants have taken up to 100 percent of the pioneering brands market.     

Value innovation in business markets: Breaking the industry recipe

The industrial marketing as well as the strategic management literature stresses the importance of “value innovation” in order to create/sustain competitive advantage and to rejuvenate the organization.In the first part of this article the construct of value innovation is operationalized within the context of selected business-to-business markets. We report the results of an ongoing research project; starting from traditional ways of value creation, the study reveals different types of value innovation initiatives undertaken by industry participants. We observe, however, that networks, firms and managers are embedded in industry recipes. These recipes block the creation and realization of value innovation. Some firms are trying to break out of existing frames and their experiences pinpoint to specific ways of markets sensing, strategic marketing and different marketing-mix tools. As such, the research frames value innovation initiatives in the existing industry contexts and managerial frames, and identifies drivers, barriers and perceived success factors for the process of value innovation.The second part of the article then looks at the stages of value innovation and their impact on marketing, organizations and networks. Based on the data analysis, the paper posits propositions which stress the concept of “multilevel absorptive capacity”.     

A Consumer-Based Approach to Designing Product Line Extensions

A high proportion of new product introductions entail line extensions (e.g., new flavors, sizes, convenience packs, features) rather than totally new products. An attendant problem with line extending involves the possibility of cannibalization of the firm's current products. Paul Green and Abba Krieger describe an approach for designing line extensions that employs consumer tradeoff data and a variety of search heuristics to find "optimal" extensions that explicitly consider the cannibalization of current offerings. The methodology is applied to a case in which an agricultural chemicals firm is introducing a new soybean herbicide.     

Measuring perceived pre-purchase risk for a new industrial product

Risk is an important element in industrial adoption decisions. This paper proposes a method to investigate how different group of individuals influencing the adoption of a new industrial product differ in their assessment of the risks. Two dimensions of risk are distinguished: (1) the likelihood that adoption of the new product will have undesirable consequences, and (2) the perceived intensity of these consequences both at the organizational and at the individual level. Purchase consequences are measured in terms of product economics and product reliability. Multivariate analysis of variance is used to assess how decision participants differ in their assessment of risk components. An attempt is made to assess the relative importance of these various components in the formation of individual preferences. The implications of the analysis for the development of better industrial marketing strategies are discussed.