Investment with weak contract enforcement: evidence from Hungary during transition

This paper aims to provide empirical evidence relating to theimportance of contract enforcement for development. Survey dataon Hungarian farms are used to estimate the impact of contracthold-ups on investment. We find that investment is affectedby a variety of factors. Contract breaches in the form of delayedpayments have a non-linear effect on investment: at high levels,they significantly deter the investment, but not at low levels.     

How Individuals Engage in the Absorption of New External Knowledge: A Process Model of Absorptive Capacity

This paper offers a process model of how individuals engage in the absorption of new external knowledge. Data collection is centered on the experiences of knowledge workers in recognizing, assimilating, and applying external knowledge. The process model delineates how individuals engage in the absorptive capacity (AC) process through: (1) valuing knowledge potential by assessing the motivation to assimilate knowledge and by evaluating technological feasibility, which together constitute the recognition of value; (2) corroborating knowledge value by ensuring legitimacy and demonstrating a shared understanding of the business value in achieving knowledge assimilation; and (3) championing knowledge integration by lobbying for support and securing resources in order to integrate and apply the knowledge within the organization, ultimately ensuring that knowledge is exploited. The process model clarifies how an individual’s proficiency in external knowledge absorption activities can result in three possible outcomes: knowledge is exploited, knowledge is terminated, or knowledge gets “stuck” in limbo. These findings contribute to the AC literature by underscoring the pivotal role of individual engagements in recognition, assimilation, and application of external knowledge and add new elements and a process perspective to the understanding of the path from potential to realized AC. The paper also provides insights into how individuals and firms can better manage knowledge absorption in practice.     

Human capital, market imperfections, and labor reallocation in transition

In this paper, we investigate the effects of human capital and factor market imperfections on household decisions regarding labor use and reallocation in transition countries. We develop a model that accounts explicitly for heterogeneity in the supply of labor and analyze its impact on the allocation of labor. Furthermore, the effects of imperfections in the capital and labor markets on the reallocation process are modeled. Using a dataset based on a countrywide representative survey of Hungarian rural households, we estimate the effects empirically and find them to be important. Journal of Comparative Economics 32 (4) (2004) 745–774.     

Reforms and agricultural productivity in Central and Eastern Europe and the Former Soviet Republics: 1989–2005

This paper analyses the changes in agricultural performance in Central and Eastern Europe and the Former Soviet republics since the start of the transition process. We provide a conceptual framework for the evolution of productivity and efficiency measures and link this evolution to the issue of factor abundance taking into account specific transition characteristics. We document the changes in agricultural performance using empirical data on the evolution of partial productivity and total factor productivity estimates and we illustrate how productivity varies between countries at various stages of the transition process. Over the past twenty years, virtually all transition countries witnessed an initial decline in productivity, and virtually all countries currently witness an increase in productivity. However, the depth and length of the initial decline differs enormously between countries. Our analysis indicates that the productivity changes were related to the extent of the pre-reform distortions, initial resource endowments and technology use, and the reform implementation in the countries.     

A conceptual framework for misfit technology commercialization

The emerging literature on outbound open innovation has highlighted innovation processes, which presuppose active outward technology transfer to increase firm profits. To contribute to this discourse, our paper goes beyond the emphasis on core-related technologies and knowledge that currently dominates the technology management literature and develops the novel concept of misfit technology. This concept captures technologies that are not aligned with a focal firm's current knowledge base and/or business model, but which may still be of great value to the firm if alternative commercialization options are considered. By developing a framework that acknowledges (1) Sources of misfit technology, (2) Environmental uncertainty, (3) Organizational slack, (4) Industry appropriability regime and (5) Technological complexity, we theorize on how different modes of commercialization relate to misfit technology commercialization success. The paper is conceptual and is presented with the purpose to spawn further research on this important topic, but simultaneously touches upon the issues of utmost relevance to R&D management practice.     

The political economy of public research investment and commodity policies in agriculture: an empirical study

The paper tests a political economy theory of simultaneous government decision‐making on income redistribution through commodity policies and on public research investment in agriculture. We use data from 37 countries on agricultural protection and public agricultural research expenditures (PARI). The empirical results are consistent with the political economy hypotheses. The analysis suggest that structural changes in the economy have important effects on the political incentives for governments not only to subsidize or tax farmers, but also to invest in public agricultural research. Furthermore, the analysis supports the hypotheses that the impact of such structural changes on government decision‐making on PARI is non‐linear and conditional on other factors. Regarding the impact of political institutions, the results suggest that more democracy neither leads to more distortionary transfers (agricultural protection), nor to lower investment in public goods (PARI). ©2000 Elsevier Science B.V. All rights reserved.     

Where process development begins: A multiple case study of front end activities in process firms

The front end phase of the new product development has been examined extensively, yet few if any studies have examined the front end phase of new process development. By means of a multiple case study of process firms, this article aims to bridge this knowledge gap. Our results show that substantial differences in front end activities exist between the product development and process development domains. We conceptualize the front end in process development to be an iterative trial-and-error process, dominated by activities such as idea generation and refinement, literature reviews, anticipation of end-product changes, and various forms of experiments in bench scale, lab scale, and full-scale production. In addition, we highlight key problems in the front end and managerial remedies for how to mitigate them. While these findings provide theoretical implications for research into product development, process development and production management, the findings are particularly relevant to process development managers, plant managers, and development engineers interested in increasing the efficiency of production processes.     

How can biases affect entrepreneurial decision making? toward a behavioral approach to unicorns

International Entrepreneurship and Management Journal - How can cognitive biases affect the birth and evolution of entrepreneurial ventures? In Entrepreneurial Decision Making (EDM), this lively...     

Social Behaviour in Work Absence*

By making use of a large‐scale randomized experiment, we test whether social behaviour is important for work absence due to illness. The individuals treated in the experiment were exposed to less monitoring of their eligibility to collect sickness insurance benefits, which sharply increased their non‐monitored work absence. This exogenous variation is exploited in two complementary analyses. In both analyses, we find significant social‐behaviour effects. Using detailed data, we conclude that the social‐behaviour effects most likely stem from fairness concerns.