At the receiving end of supply network intervention: The view from an automotive first tier supplier

As companies are increasingly responsible for all ingredients that make up their products, the requirement to increase visibility and exert control over the entire supply network has been identified as key imperatives. However, little research to date has examined the consequences of supply network control on the suppliers that are at the receiving end of it. This paper reports on research into the dynamics of supply network intervention and the effects on the companies that are subject to attempts to control a supply network, particularly in the context of new product development. The paper discusses the case of an automotive component supplier and its role in a specific vehicle development project. The case study shows how the supplier was a victim of its customer's attempt to ‘supply chain manage’ the project, giving the supplier little control over key activities such as the choice of suppliers of key components and little influence on commercial and technical agreements. The perspectives of both vehicle manufacturer and supplier are debated to reveal the drivers for and problems associated with supply network intervention. The paper discusses the theoretical and managerial implications of the study and concludes by raising some serious questions about the negative effects of intervention strategies.     

Subscription Mechanisms for Network Formation

We analyze a model of network formation where the costs of link formation are publicly known but individual benefits are not known to the social planner. The objective is to design a simple mechanism ensuring efficiency, budget balance, and equity. We propose two mechanisms towards this end; the first ensures efficiency and budget balance but not equity. The second mechanism corrects the asymmetry in payoffs through a two-stage variant of the first mechanism. Journal of Economic Literature Classification Numbers: C71, C72, D20.     

Knowledge and markets

An economy is a coordinated system of distributed knowledge. Economic evolution occurs as knowledge grows and the structure of the system changes. This paper is about the role of markets in this process. Traditionally, the theory of markets has not been a central feature of evolutionary economics. This seems to be due to the orthodox view of markets as information-processing mechanisms for finding equilibria. But in economic evolution markets are actually knowledge-structuring mechanisms. What then is the relation between knowledge, information, markets and mechanisms? I argue that an evolutionary theory of markets, in the manner of Loasby (1999), requires a clear formulation of these relations. I suggest that a conception of knowledge and markets in terms of a graphical theory of complex systems furnishes precisely this.     

Use of social capital among Russian managers of a new generation

Dynamic changes in the Russian political economy during the 1990s led to a unique combination of low levels of social capital at the general (state) level and very high levels of social capital at the interpersonal level. This research uses the three dimensions of social capital as outlined by Nahapiet and Ghoshal [Nahapiet, J. and Ghoshal, S. (1998) Social capital, intellectual capital and the organizational advantage. Academy of Management Review, 23, 242-266.], to investigate the operation of business networks within Russia. Focusing on a generation of Russian business managers who had minimal exposure to the previous regime and who experienced western education/business practices, this study illustrates one snapshot of social capital in Russia in 2004. Results highlight how this generation of business managers operates and how they conduct their business networks. It is expected that there will be changes in Russian business networks, as formalized legal systems become stronger and the new generation of Russian managers, who have had little exposure to socialist systems and nomenklatura emerge.     

Does knowledge management matter for information technology applications in China?

This study explores the role of knowledge management (KM) in mediating and moderating the relationship between information technology (IT) and firm performance based upon the data collected from 236 firms in China. Through a structural equation model and hierarchical regression analysis, we found that KM capability partially mediated the performance impact of IT resources. Furthermore, KM capability affected the strength of the IT-performance relationship. The theoretical contributions and managerial implications are discussed and limitations of the study are highlighted accordingly.

Regulation and the promotion of investment in next generation networks—A European dilemma

The paper discusses the dilemmas facing European regulators (the European Commission and the national regulatory authorities) over the promotion of investment in Next Generation Access Networks (NGANs). Whereas the US has adopted a deregulatory approach and parts of Asia takes an approach linked to industrial policy considerations, the EU has largely left the process to operators working subject to a framework of regulation of access. While this may be enough to elicit investment where there is competition among networks, the incentives to invest are weaker where there is only one fixed network, as is the case in most of the territory of the EU. In reaching this view, the paper examines the prospects for competition from both wireless and municipal networks. It recommends that steps be taken fully to mobilise incentives to invest in NGANs where there is competition. Elsewhere, it may be necessary to consider a broader range of policies to create conditions for investment.     

International spillovers and absorptive capacity: A cross-country cross-sector analysis based on patents and citations

This paper brings together the issues of knowledge spillovers and absorptive capacity, by assessing the role of prior R&D experience in enhancing a country's ability to understand and improve upon external knowledge. International spillovers are found effective in increasing innovative productivity in laggard countries, while technological leaders are a source rather than a destination of knowledge flows. Quantitative estimates of the effect of absorptive capacity on innovative performance, through knowledge spillovers, show that absorptive capacity increases the elasticity of a laggard country's innovation to international spillovers, while its marginal effect is negligible for countries at the technological frontier.     

Occupational Choice: The Influence of Product vs. Process Innovation

Prior studies have found that knowledge gained from work experience is a way to gather insights for business opportunity recognition. However, little is known about the specific types of knowledge that lead to business founding. Utilizing concepts from knowledge spillovers and from the opportunity recognition literatures, this paper argues that an organization’s technological innovation activities can help its employees develop specialized knowledge that provides them with the entrepreneurial opportunities to found new businesses. Besides highlighting the positive relationship between technological innovation activities in organizations and the propensity of individuals leaving the organizations to start new businesses, this paper also provides a more fine-grained explanation of the types of technological innovation activities that can lead to business founding. We argue that knowledge acquired through product innovations is more easily adopted by individuals for commercial uses, while knowledge acquired through process innovations must be integrated with other parts of the organization to be valuable. This study proposes that product innovation activities in an organization, more so than process innovation activities, are related to new business founding. Implications for opportunity exploitation and ways to exploit knowledge spillovers are discussed.      

Study of the topology and robustness of airline route networks from the complex network approach: a survey and research agenda

Communication via air routes is an important issue in a world organized around a web city network. In this context, the robustness of network infrastructures, e.g. air transport networks, are a central issue in transport geography. Disruption of communication links by intentional causes (e.g., terrorist attack on an airport) or unintentional (e.g., weather inclemency) could be crucial for countries, regions and even the airlines affected themselves. Policymakers and the management of airlines and alliances should be able to reduce the effects of such interruptions in order to ensure good communication through air transport (i.e., maximize the robustness of their network at a reasonable cost). The literature review of the study of air transport route networks through an analysis of complex networks has highlighted a lack of contributions to the study of the topology and the robustness of such networks which contrasts, with advances undertaken for other transport networks or communication systems. This survey suggests areas in which research should be undertaken, based on the existing literature in other areas and from three different perspectives: global route networks, airline alliances, airlines and airports so as to help towards a better understanding of air traffic and, therefore, to be able to assess the potential damage of any airport being inoperative for a continent, country or airline.