Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets

Recent theoretical work has been able to explain how even within narrowly defined industries, firms can exhibit heterogeneous degrees of participation in international commerce. Differences in productivity between firms are the principal explanation offered by theory to explain heterogeneity with respect to international commerce. In particular, theory predicts that the least productive firms will produce for the domestic market only, while better performers engage in export activities, and the top firms establish foreign subsidiaries. This paper presents an empirical test of the relationship between productivity and patterns of international trade and production. Using German firm‐level data from 1996 to 2002, we test the predicted rank ordering of productivity according to firms’ trade pattern by examining the distribution functions of the three subsets of firms for stochastic dominance. Our results are generally consistent with the predictions from theory, and document significant productivity differences according to trade patterns.     

Rational Versus Intuitive Gatekeeping: Escalation of Commitment in the Front End of NPD

The unwillingness of a gatekeeper to let go of a fruitless new product development (NPD) project wastes valuable resources and hampers NPD performance. The onset of such escalation of commitment is likely to occur already in the front end of NPD, where high ambiguity and complexity make it hard to distinguish fruitless from potentially successful projects. This study investigates if a gatekeeper’s thinking style—whether they think rationally or whether they follow their intuition—can prevent escalation of commitment in the front end. Theory on cognition provides arguments for and against either thinking style’s influence on escalation of commitment, but empirical evidence on this matter is lacking. Our study demonstrates that gatekeepers who think rationally are less likely to escalate their commitment than those who follow their intuition. This result holds both in a correlational study of dispositional thinking styles, as well as in an individual‐level randomized experiment in which the thinking style of experienced practitioners before they take gate decisions is induced. Our findings provide ample opportunities for improving existing front end gate review practices, such as allocating candidates for gatekeeper positions based on their thinking style, training gatekeepers to think rationally, and increasing the use of gate‐decision rules and templates.     

Trade liberalization and credit constraints: Why opening up may fail to promote convergence

This paper examines credit constraints as one channel held responsible for hampering economic convergence between countries. Specifically, we extend a Melitz and Ottaviano ( 2008 ) type trade model with variable mark‐ups to allow for endogenous technology adoption. We consider a framework with two countries that potentially differ with respect to credit market development. Firms have the option to adopt a more efficient technology by paying some fixed cost that is more costly to finance for financially constrained firms. We find that technology adoption increases in both countries after trade liberalization but more so in the financially more developed country: the productivity gap widens. Simulations show that the welfare gap widens too. Opening up without sufficient access to external funding thus fails to promote convergence.     

Pressemitteilungen 2.0 �C eine Resonanzanalyse im Internet

With the development of the Social Web, companies and organizations are now able to communicate via Online PR not only with journalists but also with their stakeholders. Therefore, the press release, initially an instrument of media relations, is now applicable for reaching other spheres as well. Using an input-output analysis, the study examines in the tradition of determination research how much resonance (i.e. reactions such as copies or identifiable references) press releases generate online in different public spheres (journalists, organizations, individuals). As a first step (input analysis) we examined n?=?32 press releases from small and medium-sized companies or nonprofit organizations which were available online, coding different possible factors of success (characteristics of the press releases such as journalistic quality and news factors, organization characteristics, and the number of channels used for publishing the release). Secondly, we identified all n?=?382 reactions to these releases on the internet (output analysis). We found that the press releases generated an average of twelve reactions online. Six of them were manual reactions and not automatically produced. This corresponds to a resonance quote of 69%, i.e. about two out of three press releases got at least one reaction from somebody else. More than a quarter of reactions came from individuals and could be predicted less by news value than the reactions coming from of journalists.     

The Impact of the Corporate Mind‐set on New Product Launch Strategy and Market Performance

In the last decade, there has been an increasing interest in the link between new product launch strategy and market performance. So far, new product launch research has focused on this performance relationship without giving much attention to background factors that can facilitate or inhibit successful launch strategies. However, investigating such antecedents that set the framework in which different strategic launch decisions enable or prevent the market performance of new products is useful for enhancing the current state of knowledge. Drawing on the concept of a firm's orientation, the present study discusses the influence of the corporate mind‐set on new product launch strategy and market performance. It is hypothesized that the capability to successfully launch new products is based on the interplay between a firm's mind‐set (i.e., an analytical, risk‐taking, and aggressive posture) and its strategic launch decisions on setting launch objectives, selecting target markets, and positioning the new product. A research model with mediating effects is proposed, where the corporate mind‐set determines the launch strategy decisions, which in turn impact market performance. The model is tested with data on 113 industrial new products launched in business‐to‐business markets in Germany using a multiple informant approach. The results support the mediated model as the dimensions of the corporate mind‐set have a significant impact on most strategic launch decisions, which in turn significantly contribute to market performance. It is found that while an analytical posture relates to all three strategic launch decisions, risk taking and an aggressive posture have a significant impact on two, respectively one, launch strategy elements. These findings confirm the importance of investigating antecedents for a successful new product launch, as the corporate mind‐set serves as a background resource that sets the framework for successful new product launch decisions. In the final section implications for research and managerial practice as well as limitations of this research are provided.     

Using mixed methods for the analysis of individuals: a review of necessary and sufficient conditions and an application to welfare state attitudes

When studying individuals, when is the combination of qualitative and quantitative methods better than just one method alone? Whereas the debate in macro-level research, such as in political science about comparing nations, has made progress in identifying meaningful logics for a combination of methods, it is yet unclear how these logics can be applied to the study of individuals. Individual-level dynamics are in tendency less inert than those of nations or organisations. Therefore, a combination of methods is more difficult to justify in individual-level analysis since differences in measurement results could be due to changes in the dynamics rather than due to the application of different techniques. In contrast, the assumption of unit homogeneity seems to be more easily met for individuals than for countries or other higher-level aggregates, facilitating a comparison of like and like. First, this article presents a compilation of conditions scattered across the literature for the analysis of individuals, according to which a mixed-method is preferable to a single-method approach. Second, the application of these conditions is illustrated with an analysis of the impact of intergenerational relationships on welfare state attitudes in Germany on the basis of survey and focus group data.     

Water scarcity and the impact of improved irrigation management: a computable general equilibrium analysis

Increasing water scarcity combined with an increasing demand for food and water for irrigation call for a careful revision of water use in agriculture. Currently, less than 60% of all the water used for irrigation is effectively used by crops. Based on the new version of the GTAP‐W model we analyze the effect of potential water savings and the welfare implications of improvements in irrigation efficiency worldwide. The results show that a water policy directed to improve irrigation efficiency led to global and regional water savings, but it is not beneficial for all regions. The final effect on regional welfare will depend on the interaction of several different causes. For instance, higher irrigation efficiency changes opportunity costs and reverses comparative advantages, modifying regional trade patterns and welfare. For water‐stressed regions the effects on welfare are mostly positive. For nonwater scarce regions the results are more mixed and mostly negative. The results show that exports of virtual water are not exclusive of water abundant regions.