Concentration and the formation of multi-port gateway regions in the European container port system: an update

The European container port system features a unique blend of different port types and sizes combined with a vast economic hinterland. This paper provides an update of the detailed container traffic analysis developed by Notteboom (1997) by extending it to the period 1985–2008 and to 78 container ports. The paper also aims at identifying key trends and issues underlying recent developments in the European container port system. These trends include the formation of multi-port gateway regions, changes in the hinterland orientation of ports and port regionalization processes. While the local hinterland remains the backbone of ports’ traffic positions, a growing demand for routing flexibility fuels competition for distant hinterlands between multi-port gateway regions. The prevailing assumption that containerisation would lead to further port concentration is not a confirmed fact in Europe: the European port system and most of its multi-port gateway regions witness a gradual cargo deconcentration process. Still, the container handling market remains far more concentrated than other cargo handling segments in the European port system, as there are strong market-related factors supporting a relatively high cargo concentration level in the container sector.     

The development of the Yangtze River container port system

This paper sheds an empirical light on port development patterns by discussing the structure and the development of the Yangtze River ports system. We argue that the Yangtze River system is going through a regionalization phase, mainly in relation to the port of Shanghai. This process started on the lower Yangtze but is now also moving upstream. The transition towards the port regionalization phase is typically a gradual and market-driven process that mirrors the increased focus of market players on logistics integration. This paper builds on the existing literature on port systems and adapts port development models to river ports. Furthermore, we employ some statistical techniques that are common to the analysis of port systems, and introduce some techniques that have not been used much by transport geographers in ports. This paper will address the dynamics in the Yangtze River ports system by analyzing the level of cargo concentration and the degree of inequality in operations of the container ports. The paper also assesses observed differences in development of ports in different areas along the river (upstream/downstream) and reflects on the role of ownership structures in shaping regional load centre networks.     

Transparency of Corporate Social Responsibility in Dutch Breweries

According to the Dutch Ministry of Economic Affairs (2001), transparency by means of Sustainability Reporting should lead to better Corporate Social Responsibility (CSR) performance of companies. Sustainability Reporting should also give consumers the information they need to purchase the most sustainable products available (Dutch Ministry of Economic Affairs, 2004). This article analyses the driving factors influencing CSR and Sustainability Reporting at seven breweries in the Netherlands. It also gives a better understanding of organizational behaviour with reference to CSR and the reasons breweries have for Sustainability Reporting. The Dutch government has no intention of forcing organizations to publish a sustainability report, since it is trying to diminish the volume of legislation. Rather, the government prefers to rely on the willingness and initiatives of organizations to make CSR a success. In 2006, the Dutch Ministry of Economic Affairs will evaluate the effect of its CSR policy. But is it a success already? During our research, breweries appeared to find CSR more important than Sustainability Reporting. Sustainability reporting is, for most breweries, not the way to reach stakeholders. Most stakeholders have their own means for receiving information e.g. annual reports, meetings, public statements and press releases. Although small breweries think CSR is very important, they feel no pressure from outside to publish a sustainability report. For them it is very complex and expensive to publish a sustainability report. Large breweries feel pressure from many stakeholders to be transparent, but not on a regular basis. We conclude from this research that CSR does not stimulate Sustainability Reporting, but neither does Sustainability Reporting stimulate CSR.     

Economic Efficiency and Ethics

In neo-classical welfare economics efficiency and equity are strictly separated. The emergence of New Institutional Economics (NIE) broadens the perspective by focusing on the implications of opportunist behaviour. In NIE emphasis is put on institutional arrangements that improve efficiency. The introduction of opportunist behaviour points at the more general problem of cooperation. As can be illustrated by invoking the Prisoners' Dilemma, cooperation may improve efficiency. Therefore, social norms matter and the question arises how they evolve. Evolutionary game theory shows how economic success may change behavioural dispositions to honesty or dishonesty. On a less abstract level one can investigate whether or not the market system fosters nice social traits. Apart from the approach chosen, the main message is that economics and ethics are strongly intertwined.     

Cooperative Innovation Projects: Capabilities and Governance Mechanisms*

This paper is concerned with how firms in a project‐based industry cooperate in technological innovation projects in the construction industry. The main focus of the paper is on the sharing of capabilities in cooperative innovation projects and how these cooperations are governed. A knowledge‐based perspective is applied, and four cooperative innovation projects in the construction industry are compared. Based on the case studies, a set of propositions is defined. First, a cooperation aimed at a mutual strategic benefit in mutually gaining access to the knowledge bases of the involved firms, while maintaining their own differentiated knowledge base, can result in more stable and long term relationships with mutual trust between the cooperating firms. Second, in a cooperation aimed at a mutual strategic benefit in mutually gaining access to the knowledge bases of the involved firms, partners not only gain access to each other's technological capabilities but also develop and share knowledge about organizational aspects and market situations and gain knowledge about the way of working of the partner firm. Third, in a cooperation aimed at mutual strategic benefit in mutually gaining access to the knowledge bases of the involved firms, noncodifiability of the capabilities is conditional to create a win–win situation. And fourth, cooperation aimed at a mutual strategic benefit in mutually gaining access to the knowledge bases of the involved firms is based on mutual competence and intentional trust as its main governance mechanism, whereas contracting between market parties aimed at knowledge–output transactions is represented by limited trust and arms' length (contractual) relationships as its main governance mechanism.     

Evidence-Based Electronic Contract Performance Monitoring

One aspect of the development of e-market services for the facilitation of business-to-business electronic commerce concerns the provision of automated support for contract performance assessment. Assessing the parties' performance of an agreement, once it comes into force, requires reasoning with the contract terms (obligations, rights, powers and other legal relations that obtain between parties) as parties go about conducting their business exchange, sometimes complying and sometimes deviating from their pre-agreed prescribed behaviour. Compliance with prescribed behaviour is typically evaluated individually by each partner to an agreement and where parties' views differ, disputes arise that require some form of resolution.In this paper we present a simple architecture for an e-market, where an artificial (controller) agent undertakes such resolution. The controller's decision-making is informed by the agreement and each party's view of whether its own and the counter-party's behaviour comply with it. Thus, the controller forms an opinion on the basis of such evidence (and possible additional recommendations from agents representing the parties), in similar spirit to a (human) judge's process of reasoning in arriving at his ruling. We consider this as a belief formation problem and explore the potential of using subjective reasoning to represent an individual's (possibly partial) views and to reason about their joint conflict and consensus formation. We comment on the relation of such belief formation on the establishment of trust between partners to an agreement and between the latter and the controller of an e-market.     

Premium auctions and risk preferences

In a premium auction, the seller offers some “payback”, called premium, to a set of high bidders at the end of the auction. This paper investigates how the performance of such premium tactics is related to the bidders? risk preferences. We analyze a two-stage English premium auction model with symmetric interdependent values, in which the bidders may be risk averse or risk preferring. Upon establishing the existence and uniqueness of a symmetric equilibrium, we show that the premium causes the expected revenue to increase in the bidders? risk tolerance. A “net-premium effect” is key to this result.     

In search of WTO trade effects: Preferential trade agreements promote trade strongly, but unevenly

The literature measuring the effects of WTO membership on trade flows has produced remarkably diverse results. Rose (2004) reports a wide range of empirical specifications that produce no WTO effects. Tomz et al. (2007) use Rose's data but include de facto WTO membership, to find positive WTO trade effects. Rose (2005) also produced positive WTO trade effects after accounting for the diverse trade effects produced by individual preferential trade agreements (PTAs). When Subramanian and Wei (2007) emphasize general equilibrium trade effects by controlling for multilateral resistance, they find strong WTO trade effects only for industrialized countries. Subramanian and Wei (2007), however, account neither for unobserved heterogeneity among trading partners, nor for differences in trade effects across PTAs (which could inflate WTO estimates). We unify the Rose, Tomz et al., and Subramanian and Wei specifications in one comprehensive approach that minimizes omitted variable bias to show that all specifications produce one consistent result: WTO effects on trade flows are not statistically significant, while PTAs produce strong but uneven trade effects. Extending the gravity model to address specific avenues in which WTO may have affected trade flows, we find that WTO membership boosts trade prior to PTA formation and increases trade among proximate developing countries (at the expense of distant trade). An augmented gravity model that accounts for WTO terms-of-trade theory shows that countries with greater incentives to bargain for tariff reductions before WTO accession experience positive and significant subsequent WTO trade effects.     

Implementing new business models: What challenges lie ahead?

What strategic choices do business leaders make when implementing new business models? This study tries to answer this question by analyzing the development of several business model innovations that were new to the industry. We find that business model innovators face four strategic trade-offs and accompanying tensions during the implementation of their business model innovation process: (1) the level of independence granted to the developer (independence vs. dependence), (2) the degree to which the roadmap is planned in advance (discovery vs. planned execution), (3) the degree to which the value proposition challenges the status quo (challenging vs. maintaining status quo), and (4) the rigor to which business model innovators preserve the logic of the initial value proposition (solid vs. fluid logic). Our in-depth analysis reveals that business model innovators make pragmatic decisions that may deviate from the guidelines offered by existing literature, and we offer insights into the drivers behind these decisions.