Governance, organizational capabilities, and restructuring in transition economies

This paper focuses on the links between governance, firm capabilities and restructuring following the large-scale privatization process in Central and Eastern European transition economies using an integrative approach. Restructuring in these countries has been motivated by political and institutional changes and less so by market forces. Accordingly, political processes have produced political solutions such as “give-away” privatizations to insiders. These privatizations, in contrast to divestitures to outside owners, have realized less substantive restructuring because non-market incentives, such as too much managerial equity ownership, have created managerial entrenchment. In addition, we propose a connection between governance and organizational learning suggesting that learning is inhibited by excessive managerial ownership and lack of board knowledge regarding its oversight function. Furthermore, this entrenchment and poor board functioning may be perpetuated in financial-industrial groups, which have emerged as substitutes for market intermediaries in emerging economies. Thus, we propose that outside ownership involvement and the development of organizational capabilities may facilitate restructuring in the Central and Eastern European context. Our theoretical arguments are supported by case study evidence from transition economies.     

EU agriculture: Reduced protection from exchange rate instability

In the past, the protection of agriculture in the EU from exchange rate instability was accomplished at the cost of confusing regulations, welfare losses and the discrimination of other sectors. Will the 1993 reform of the Agri-Monetary System, combined with wide 15% European Monetary System margins and the recent GATT agreement, lead to more efficiency in European agriculture?     

The Neglected Legacy of Lancashire Cotton: Industrial Clusters and the U.K. Outdoor Trade, 1960-1990

This article considers the neglected legacies of the Lancashirecotton industry and their impact on the U.K. outdoor trade.Studies of the decline of the Lancashire cotton industry afterthe Second World War have concentrated on the collapse of coarsecotton spinning and weaving, largely ignoring the impact ofthe knowledge and skills related to the finishing trades. Theexamination of the evolution of rainwear, coatings, and high-performancefabrics in the nineteenth century provides a backdrop to a studyof the innovation process that emerged in the U.K. outdoor tradeafter 1960. It shows that there was a path dependency betweenthe skills that resided in Lancashire’s finishing tradesand coating and fabric innovation for outdoor products. Thisarticle explores both the legacy and the ways in which the networksof innovation functioned as the U.K. outdoor trade expanded.     

Inferior factor in Cournot oligopoly revisited

We reconsider the recent work by Okuguchi (J Econ 101:125–131, 2010) on (possibly asymmetric) Cournotian firms with two production factors, one being inferior for each firm. It is shown there that an increase in the price of the inferior factor does raise the equilibrium industry output. In addition of providing a simpler and more rigorous proof of that result, we generalize it to the case of technologies with $s\ge 2$ factors and also allow some firms not to use the inferior one.     

The Impact of Upfront Payments on Assortment Decisions in Retailing

There is a contentious debate about the exclusionary effects of upfront payments to be made by manufacturers to place their products on retailers’ shelves. Analyzing a two-stage bargaining process with one downstream retailer and a pool of upstream manufacturers, we find that upfront payments lead to a smaller assortment if the retailer’s bargaining power is high enough and the suppliers’ products are close substitutes.     

The Electronics Industries of the Asia–Pacific: Exploiting International Production Networks for Economic Development

Although the electronics industry has been one of the main driving forces behind the export-led growth of the newly industrialising economies (NIEs) of the Asia–Pacific, there has until recently been little empirical research showing how the various NIEs managed to enter international markets and gain technology. This paper describes the overall characteristics of the electronics sector in the NIEs, highlighting the main organisational innovations which have enabled local firms to enter international markets and acquire foreign technology. The OEM (original equipment manufacture) system, prevalent in East Asia, is contrasted with the TNC (transnational company)-led growth dominant in Southeast Asia. The paper also discusses the emerging 'contract electronics manufacturing', or CEM, which could threaten traditional OEM and TNC-subsidiary production in the NIEs. The electronics sector proves to be a rich source of empirical material, both for understanding the processes of economic development and for illustrating the role of latecomer enterprise in engaging with and exploiting international production networks.     

The Role of Advertising in the Marketing Strategy of Accountancy Firms: Evidence from a Regional Market

Rules governing the advertising activity of accountancy firms have recently been relaxed. Published evidence is, however, scant regarding the perceived value of accountancy firms' advertising by both users of their services and by business advisers. Building on a conceptual model of the role of advertising in accountancy firms described in an earlier issue of this journal [Watkins and Wright, Service Industries Journal, Vol. 5, No. 3, November 19851, this article presents some results from a recent survey of a regional accountancy market. These results show that a careful examination of advertising within the overall marketing mix is required, with other forms of marketing perhaps offering greater possibilities. The overall conclusion is that the cost-effectiveness of the advertising of accountancy services h s t be open to doubt.