CROSS‐BORDER INTEGRATION IN NORTHEAST ASIAN AIR TRANSPORT MARKET

This study highlights the recent global trends of the air transport market and develops a simulation model to assess the welfare impacts of tripartite liberalization in the Northeast Asian air transport market. First, in the global air transport market, routes between 1000 and 2000 km are identified as the fastest growing segment. Gravity model analysis reveals that there is potentially significant room for further growth from cross‐border liberalization. Second, in the impact assessment of market liberalization in Northeast Asia, the effect of tripartite market liberalization of triangular routes that connect major cities in each of the three nations, Japan, South Korea and Mainland China, is analyzed. Simulation using a Cournot model with product differentiation shows that overall welfare gains would be achieved from tripartite liberalization. Air carriers' losses are overridden by an increase in consumer surplus. Such an arrangement by the three nations might eventually lead to an integrated environment in which airlines could evolve into a true multi‐hub Northeast Asian air carriers.     

New product introduction under demand uncertainty in competitive industries

A game-theoretic model is employed to examine the conditions under which firms in a duopoly, faced with a new product introduction opportunity of uncertain profitability (because of uncertainty in demand), choose to enter the market immediately or, alternatively, decide to wait, thereby avoiding the risk of failure. The implications for a firm's strategic behavior are contrasted with situations in which the competitor is believed to be (1) passive, implying that the firm expects to enjoy indefinite monopoly status if it introduces the new product, and (2) committed to a waiting strategy, implying monopoly status for a limited time period, if the new product is successful.     

Small- and medium-sized enterprise internationalization: Towards the knowledge-based model

Firm internationalization research has grown throughout the last 50 years resulting in a number of theories and models. Although each theory and model enables us to see some parts of the picture, a holistic approach is needed to provide us a full picture. The so-called knowledge-based models proposed so far drew upon the transaction cost theory, the social capital theory, and the knowledge management models. This paper reviews previous research and builds a more comprehensive knowledge-based model of small- and medium-sized enterprises internationalization. The model includes “knowledge factors”, which we identified from internationalization literature. These include the market knowledge and the experiential knowledge composed of network knowledge, cultural knowledge, and entrepreneurial knowledge. Acquisition as well as utilization of each kind of knowledge during the different phases of internationalization is presented. The model is a step towards deeper understanding of the role of knowledge in SME internationalization.     

Commercial Policy and Foreign Ownership

Foreign multinationals often not only export but also control local firms through FDI. This paper examines the various effects of trade and industrial policies when exports and FDI coexist. We focus on the case in which a foreign firm has full control of a local firm through partial ownership. Cross‐border ownership on the basis of both financial interests and corporate control leads to horizontal market linkages through which tariffs and production subsidies may harm locally owned firms but benefit the foreign firm. Foreign ownership regulation benefits locally owned firms. These results could have strong policy implications for developing countries that attract an increasing share of world FDI.     

Macroeconomic Policy and Ownership Structure in a Mixed Transition Economy

Both state and non-state sectors have important roles in the Chinese economy. A dynamic model to analyze capital accumulation in state and non-state sectors is constructed and the fiscal and monetary policy requirements for the coexistence of a state sector and a non-state sector are derived. Our findings suggest that the effects of fiscal and monetary policies on ownership structure depend on which government subsidization policy is implemented. The results indicate that lowering tax rates and tightening the money supply can speed up the transition pace, but these policies do not necessarily contribute to developing an economy with a greater share for the non-state sector.J. Comp. Econom., December 2000, 28(4), pp. 762–785. College of Economics, Osaka Prefecture University, 1-1, Gakuen-Cho, Sakai, Osaka 599-8531, Japan.     

Bayesian analysis of a Markov switching temporal cointegration model

This paper introduces a Bayesian approach to a Markov switching cointegration model that allows the cointegration relationships to be switched on and off depending on the regime. Unlike a classical method for nonlinear cointegration model that uses the cointegrating vector based on a linear cointegration model, the proposed Bayesian method allows for estimation of the cointegrating vector within a nonlinear framework conditional on the regime variables through the Gibbs sampling so that it generates more reliable estimation. The Bayes factors are applied to test for Markov switching and model specifications. The purchasing power parity (PPP) relationship between UK and US is investigated using the proposed model for illustration.     

The analysis of research and development efficiency in Japanese companies in the field of fuel cells using patent data

Using patent data, a new quantitative analytical method categorizes the degree of integration of leading edge technologies in order to examine the current research & development (R&D) status and strategies of companies focusing in the fuel battery field, an area showing great potential as an alternative to fossil fuels. Specifically, this paper presents three types of categorization reflecting the International Patent Classification (IPC) of patent data, and introduces the concept of 'innovation positions', which is based on this categorization. Application purposes can be different between various industrial sectors, even within the same technological field; therefore, the progress status of R&D varies and that fact is reflected in innovation positions. Additionally, this paper makes clear that innovation positions reflect differences in companies' core competences, even in the same industry. Furthermore, by conducting an analysis based on F-terms, it has been shown that dissimilarities exist in the focus of companies in the technological development of elements, even for those with identical innovation positions. This analytical method provides an original approach to comprehend technological linkages and innovation.     

Leading with metaphoric intelligence

This paper argues that metaphoric intelligence plays a major role in successful leadership. We are embarking on the understanding of metaphoric intelligence by reporting partial research surrounding successful metaphors that can potentially account for metaphoric intelligence. We analyzed recent ideas on the effective use of metaphors by leaders of countries, providing the reader with a useful, convenient base for investigation on the general role of metaphor in leadership, and the role of metaphoric intelligence as manifested in speeches for special purposes in particular. Only the first step in the direction of providing a comprehension of metaphoric intelligence for leadership, this paper opens a number of interesting avenues of future research. In particular, this study calls for more empirical research, especially research focusing on how metaphoric intelligence foster leadership's role in organization.     

Understanding leadership for cross‐cultural knowledge management

This article examines the role of leadership in cross‐cultural knowledge management (CCKM) because both knowledge management and cross‐cultural management are now regarded as popular topics in both academic and practical research in the age of globalization. We discuss the existing literature on the relationship between leadership and cross‐cultural management as well as the relationship between leadership and knowledge management to illustrate the importance of leadership in each field. The concept of cross‐cultural knowledge management—an ambiguous term—will be presented from Nguyen, Umemoto, and Medeni's (2007) work, establishing an expanded role of cross‐cultural management, which could be viewed as a subset of knowledge management. To emphasize the impact of leadership on CCKM, we discuss the influence of leadership on each factor in the theoretical model of CCKM. Our understanding of the role of leadership in CCKM suggests that international leaders should pay careful attention to managing fragmentation, integration, and differentiation when they want to create and manage the cross‐cultural knowledge of their employees.