Joining the pack or going solo? A dynamic theory of new firm positioning

The question of new firm positioning in the marketplace and entrant's subsequent long-term performance lies at the heart of strategic entrepreneurship. We suggest a dynamic theory of new firm positioning that hinges on an important feature of the competitive environment: industry-level product diversity. The key argument is that industry-level product diversity drives imitation or differentiation at entry, which in turn shapes the exit likelihood of new entrants. So, in our theory, the extent of the new entrant's product portfolio overlap with all the industry's incumbents takes center stage. Support for our logic is obtained from the analysis of the life histories of 640 British motorcycle producers during the period 1899–1993.     

Exploring the international linkages of the euro area: a global VAR analysis

This paper presents a quarterly global model combining individual country vector error‐correcting models in which the domestic variables are related to the country‐specific foreign variables. The global VAR (GVAR) model is estimated for 26 countries, the euro area being treated as a single economy, over the period 1979–2003. It advances research in this area in a number of directions. In particular, it provides a theoretical framework where the GVAR is derived as an approximation to a global unobserved common factor model. Using average pair‐wise cross‐section error correlations, the GVAR approach is shown to be quite effective in dealing with the common factor interdependencies and international co‐movements of business cycles. It develops a sieve bootstrap procedure for simulation of the GVAR as a whole, which is then used in testing the structural stability of the parameters, and for establishing bootstrap confidence bounds for the impulse responses. Finally, in addition to generalized impulse responses, the current paper considers the use of the GVAR for ‘structural’ impulse response analysis with focus on external shocks for the euro area economy, particularly in response to shocks to the US. Copyright © 2007 John Wiley & Sons, Ltd.     

Value stream mapping in project management: A case study

This article describes the application of value stream mapping to analyze and redesign the way of managing the materials procurement stage of a project. A framework based on integrated definition (IDEF) methodology, the stream analysis approach, activity‐based costing, and discrete event simulation is presented. The stream analysis approach is used to analyze, diagnose, and manage process changes represented using an IDEF model. A dynamic simulation is used to evaluate the impact of the changes considered, to support the analysis of the process, and to model the performance of the proposed process. The overall methodology is demonstrated by applying it to a company whose core business is the design and construction of offshore oil rigs. The company specializes in engineering, procurement, and construction projects and has an annual portfolio of about six projects. Many of these projects have common features in terms of design and components, and they are all also characterized by a short “time to delivery.” For this reason, this study was aimed at assessing the possible effects that the application of new materials management policies could have on reducing both project completion time and the resources required.     

Strategic design and operational management optimization of a multi stage physical distribution system

Design and management of logistic networks is one of the most critical issues in supply chain management. However, the literature does not contain any effective models, methods, and applications that simultaneously support management decisions in the strategic design of the distribution system, in the operational planning and organization of vehicles, and in container trips organization adopting different modes of transportation. The aim of this paper is to illustrate an original framework for the design and optimization of a multi echelon and multi level production/distribution system that combines mixed-integer linear programming modeling with cluster analysis, heuristic algorithms, and optimal transportation rules. A significant case study is illustrated revealing the effectiveness of the approach and tools proposed.     

Study of Consumer Preferences in Regard to the Blonde Orange Cv. Washington Navel “Arancia Di Ribera PDO”

Consumers’ attitude and preferences in regard to food ingredients, country of origin, social corporate responsibility toward the environment, and work conditions have changed over the last 10 years. Consumers are getting more educated and therefore more sensitive around cultivation practices in agriculture and food processing, which increases concerns in regard to production practices in agriculture. Several studies have been conducted on consumers’ preferences about quality food, but not with regard to blonde oranges cv. Washington Navel cultivated in southern Italy. This quality fruit is a niche product that achieved the Protected Designation of Origin (PDO) certification for high organoleptic properties and fine taste. In this study, by a survey of 400 Italian consumers, we discovered preferences in regard to the cv. Washington Navel PDO (Riberella) attributes and revealed variables that may influence consumers’ purchasing behavior. Cluster analysis, based on respondents’ rates on 20 attributes, revealed preference segmentation. Freshness, taste, and origin were the most important attributes for consumers, following visual appearance and quality/price ratio. In responding to the demands of consumers for quality fresh fruit, information about quality standards and about the Riberella PDO is poor. Therefore, there may be potential to develop specific policies and marketing strategies to product the position in the international market.     

Demand for money and expected inflation

The role of the expected rate of inflation in the demand for money has been highly controversial both at the theoretical and the empirical level. This note critically discusses these issues and puts forward a hypothesis accounting for the significance of expected inflation in money demand equations which is corroborated by an empirical investigation of the Italian experience, particularly suited for this specific experiment.