Reforming European Merger Review: Targeting Problem Areas in Policy Outcomes

This paper is an attempt to derive priorities for the reform of European merger policy from observed problems with decision making in merger cases. We identify problems in the application of theory and empirical method as well as the impact of resource constraints and the potential for systematic decision bias. In contrast to the intense debate about the merits of a switch from a dominance criterion to a significant lessening of competition test, we find that such a switch would not effectively address any of the problems in Commision decision making on mergers. Similarly, the lack of an efficiency defense does not seem to explain any of the weaknesses of European merger policy. In contrast, we find that most of the problem areas identified in current merger control practice can be effectively addressed by reforming the merger procedure, the internal organization of merger control in the Commission, as well as addressing resource issues. Together with carefully crafted merger guidelines these should have strong priority for the reform of merger policy in Europe.     

Does distance matter for internationally-oriented small firms?

This paper assesses the contemporary relevance of distance and its key components in international business for young, internationally-oriented small firms. In doing so, it reconceptualizes the distance concept and investigates its relevance in American, British, and German firms' early foreign market selection. Economic, geographic, and cultural distance (based on Hofstede's and Schwartz's frameworks) for the three countries, along with psychic distance for the German firms, are considered. The results show that some components of distance still matter for internationally-oriented small firms and that cultural distance is sample source and concept sensitive. In addition, psychic distance acts as a mediator construct to the more objective, external distance measures of economic, geographic, and cultural distance, confirming the proposed distance framework.     

Fighting collusion by regulating communication between firms

This paper is an attempt to create a coherent approach to the design of competition policy enforcement against collusion based on theoretical considerations, evidence from economic experiments, and case studies. I argue that collusion should primarily be fought indirectly by targeting types of communication between firms that are particularly likely to facilitate collusion. In particular, I identify types of communication which have high potential anti-competitive effects but where it is unlikely that prohibiting communication will lead to efficiency losses. This analysis leads to some simple rules concerning communication between firms, which could also guide the development of competition rules for B2B electronic market places.
— Kai-Uwe Kühn     

Marketspace and the Internationalisation Process of the Small Firm

This empirical study explores the potential impact of the marketspace—the virtual world of digitised information—on the process of internationalisation within small technology-based firms (STBFs). Research findings demonstrate several effects relating to the firm's increased use of the marketspace for international business activities. In relation to internal resource-related effects, increased marketspace use is associated with: a stronger internal resource-base for international operations; and higher levels of internal international business information. Moreover, in relation to external resource-related effects, increased marketspace use is associated with: an increase in the firm's international orientation; an increase in the range and diversity of international business contacts; and an increase in unsolicited orders from foreign markets. This study confirms that the entrepreneur's prior Internet experience is a critical factor influencing use of the marketspace to support the firm's international operations. Similarly, organisational use of the marketspace (influenced by the previous experience of the entrepreneur) impacts upon certain aspects of the firm's internationalisation behaviour. Despite the significance of these findings, the marketspace is neither a replacement for traditional marketplace-based activities, nor is it a panacea that ensures effective small firm internationalisation. Complementary exploitation of both the marketspace and the traditional marketplace is likely to provide the optimal internationalisation route for small firms.     

The drop and collect survey among industrial populations: theory and empirical evidence

This paper examines the effectiveness of drop-and-collect-survey (DCS) method in improving response rates among organisations. It proposes a theory for its effectiveness and advances a number of propositions relating to its usage among organisations. Subsequent analyses, using empirical evidence from two separate DCS-based studies in Nigeria and Germany, suggest that the DCS results in significantly higher response rates among organisational respondents compared to mail questionnaires. These improved response rates are more likely to be achieved among smaller organisations and through direct, face to face, contact with the target key informant. Combining DCS with prenotification showed only a small, but positive effect. Support was also found for the hypothesised greater effectiveness of the DCS among high-technology firms relative to their low-technology counterparts. Based on the proposed theory and the empirical findings, a DCS decision and implementation framework is presented and directions for future research suggested.     

Economics at DG Competition, 2010–2011

This paper discusses a selection of cases and important policy developments in the enforcement activities of the Directorate General for Competition at the European Commission during the past year (2010–2011).     

Rhetoric or Reality? Do Accounting Education and Experience Increase Weighting on Environmental Performance in a Balanced Scorecard?

We are nearing the end of the United Nations' Decade of Education for Sustainable Development (2005–2014). There has been substantial rhetoric in education and business forums, and many universities have integrated sustainability into their accounting curricula, but what effect is accounting education having? This study considers whether the rhetoric of sustainability is manifest in a greater emphasis on environmental performance by students and practitioners. In an evaluation task using a balanced scorecard we found that third-year accounting students in Australia and Germany recognised lead performance indicators, and penalised poor environmental performance, more than did first-year students. Experienced accounting controllers, however, placed less emphasis on environmental performance than did third-year accounting students. This suggests that the rhetoric taught in universities regarding the strategic importance of environmental performance exceeds the reality of organisational priorities, at least for now.