Export Performance: Is It Possible through Knowledge and Capabilities? Evidence from Turkish Manufacturing Firms

Purpose: This article measures to what extent export performance is affected by certain resource-based view (RBV) elements and seeks to elucidate relationships between these elements. Design: Among those RBV elements, knowledge and experience as resources, and marketing, production, product development, logistics, and service differentiation as capabilities, are chosen to be the basis of this research. Their effects on export performance are measured with a survey applied to personnel of Turkish manufacturing firms operating in Istanbul district. Findings: The results show us that marketing planning capabilities and service differentiation capabilities have a significant effect on export performance. The overwhelming effect of knowledge and experience of firms on marketing planning capabilities is one of the intriguing findings. Notwithstanding that, we found no trace of a relationship between product development capabilities and service differentiation capabilities. Value: This research provides several managerial and academic implications by contributing to a resource-based view in terms of knowledge and capabilities. Additionally, in this study, it is underlined that collective knowledge is vital for achieving high export performance.     

Estimating Euler equations with noisy data: two exact GMM estimators

In this paper we exploit the specific structure of the Euler equation and develop two alternative GMM estimators that deal explicitly with measurement error. The first estimator assumes that the measurement error is log‐normally distributed. The second estimator drops the distributional assumption at the cost of less precision. Our Monte Carlo results suggest that both proposed estimators perform much better than conventional alternatives based on the exact Euler equation or its log‐linear approximation, especially with short panels. An empirical application to the PSID yields plausible and precise estimates of the coefficient of relative risk aversion and the discount rate. Copyright © 2008 John Wiley & Sons, Ltd.     

Information Unraveling Revisited: Disclosure of Horizontal Attributes

This paper analyzes in a spatial framework how much information a seller discloses about the variety he sells when he faces a buyer with a privately known taste for variety. I identify an equilibrium in which, for each possible variety, the seller's optimal strategy consists of either fully disclosing the variety or disclosing how far it is from the buyer's expected taste. The set of varieties the seller fully discloses monotonically expands as the buyer's taste for variety becomes stronger. I show that this is the unique undefeated equilibrium. From a policy perspective, mandating full disclosure is socially harmful.     

Spatial interaction modeling of interregional commodity flows

Drawing from both the spatial price equilibrium theoretical framework and the empirical literature on spatial interaction modeling, this paper expands models of interregional commodity flows (CFs) by incorporating new variables and using a flexible Box-Cox functional form. The 1993 US commodity flows survey provides the empirical basis for estimating state-to-state flow models for 16 commodity groups over the 48 continental US states. The optimized Box-Cox specification proves to be superior to the multiplicative one in all cases, while selected variables provide new insights into the determinants of state-to-state CFs.     

Entry costs and stock market participation over the life cycle

Several explanations for the observed limited stock market participation have been offered in the literature. One of the most promising is the presence of market frictions mostly in the form of fixed entry and/or transaction costs. Empirical studies point to a significant structural (state) dependence in the stock market entry decision, which is consistent with costs of this type. However, the magnitude of these costs is not yet known. This paper focuses on fixed stock market entry costs. I set up a structural estimation procedure which involves solving and simulating a life cycle intertemporal portfolio choice model augmented with a fixed stock market entry cost. Important features of household portfolio data (from the PSID) are matched to their simulated counterparts. Utilizing a Simulated Minimum Distance estimator, I estimate the coefficient of relative risk aversion, the discount factor and the stock market entry cost. Given the equity premium and the calibrated income process, I estimate a one-time entry cost of approximately two percent of the permanent component of the annual labor income. My estimated model matches the zero median holding as well as the hump-shaped age–participation profile observed in the data.     

Sequential facility location with distance dependent demand

Systems providing identical service to many population centers frequently face the issue of where to locate the next retail outlet, branch, store, etc. In such systems the demand for the facilities' service depends mainly on the distance between facilities and customers. It is assumed that there are already m facilities located on a network to respond to the demand at the nodes. The paper addresses the problems of finding a location on the network for the (m +1 )st facility corresponding to a given total expected demand and of determining which demand points will be served by which facility. Also the range of the total expected demand values that can be realized along each link in the m +1 facility system is determined. Examples and a discussion of the results are provided.     

Operational competitiveness ratings of production units

The operational competitiveness of a production unit (PU) where resources are transformed into outputs of goods and services is a very important component of its overall competitiveness. A PU's operations are comprised of a number of purposeful activities that consume resources and generate rewards. The efficiency with which these activities are carried out determines the PU's operational competitiveness. A reliable rating system is prerequisite in order to control and improve operational competitiveness. In the present paper we adopt a multi-activity view of the concept of operational competitiveness and develop a procedure to calculate ratings to help gauge the relative operational competitiveness of a set of PUs. The procedure is based on a nonparametric model but its implementation involves simple ratio-type computations. The principal criteria for the procedure and the ratings resulting from its application are intuitive appeal, transparency, ease of computation, robustness and ability to reflect the prevailing managerial perspectives and competitive priorities. We demonstrate the application of the procedure to gauge the relative operational competitiveness of a major chartered bank's branch personnel.     

Does the law of one price hold in a high-inflation environment? A tale of two cities in Turkey

This study addresses the price convergence in two cities in Turkey (Istanbul and Ankara) using annual data over the three-quarters of the twentieth century (1922–1998), characterized by prevailing high inflation rates for most of the period. In contrast to the rest of the literature addressing convergence in price levels with a typical result of extremely slow convergence rates at best, we argue that convergence is much easier detected in growth rates rather than levels of prices. We suggest using the bounds testing procedure of Pesaran et al. (2001) for this purpose. We find a clear-cut evidence on the existence of a common driving force behind inflation dynamics in Istanbul and Ankara – a finding that is in contrast with the results typically reported in related literature.     

Population growth and per capita income： A panel cointegration analysis

The noteworthy effects of demographic factors on economic development have been well documented. However, the empirical formulation grounds heavily on theoretical framework. Moreover, there is no set agreement on the relationship between population growth and per capita income. This paper retraces the famous pastime relationship for a sample of thirty-two countries classified as developing and developed over the period of 1970-2007. The methodology includes panel unit root tests and panel cointegration analysis. The main conclusion of the study is that population growth is an indicator of per capita income. The empirical findings display the existence of cointegration for both country groups. Moreover, the results support a significantly positive effect for developed countries; whereas a significantly negative effect for developing countries.     

How Ethical Behavior of Firms is Influenced by the Legal and Political Environments: A Bayesian Causal Map Analysis Based on Stages of Development

Even though potential impacts of political and legal environments of business on ethical behavior of firms (EBOF) have been conceptually recognized, not much evidence (i.e., empirical work) has been produced to clarify their role. In this paper, using Bayesian causal maps (BCMs) methodology, relationships between legal and political environments of business and EBOF are investigated. The unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world. The EBOF models structured through BCMs are used to explain how EBOF in a given country group are shaped by how managers perceive political, legislative, and protective environments of business in these countries. The results suggest that irregular payments and bribes are the most influential factors affecting managers’ perceptions of business ethics in relatively more advanced economies, whereas intellectual property protection is the most influential factor affecting managers’ perceptions of business ethics in less-advanced economies. The results also suggest that regardless of where the business is conducted in the world, judicial independence is the driving force behind managers’ perceptions of business ethics. In addition, the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio-economic factors. In addition to its managerial implications, the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries.