global strategies multinational subsidiary roles and economic impact in scotland young s hood n and dunlop s 1988 global strategies multinational subsidiary roles and economic impact in scotland reg studies 22 487 497 this paper considers in a preliminary way the influence of mne global strategies on foreign subsidiary roles in scotland and from this some of the economic effects on the scottish economy are highlighted the study is based on a postal survey of mne subsidiaries in scotland the responses being analysed using the statistical techniques of cluster analysis and discriminant analysis despite the weaknesses of the former technique in particular the preliminary findings suggest substantial benefits to the economy from the one third of affiliates in the strategic independent product specialist categories as compared with the conventional branch plants rationalized manufacturers and miniature replica subsidiaries young s hood n et dunlop s 1988 strategies globales role des filiales des societes multi nationales et impact economique en ecosse

regional policy and the productive efficiency of japanese industries otsuka a and goto m regional policy and the productive efficiency of japanese industries regional studies this paper examines the impacts of agglomeration economies and fiscal transfer on productive efficiency in japanese regional industries two popular methodologies are applied stochastic frontier analysis sfa and data envelopment analysis dea to measure productive efficiency the empirical findings are summarized as follows 1 agglomeration economies improve productive efficiency 2 fiscal transfer negatively influences productive efficiency 3 those two findings are observed for aggregated manufacturing and non manufacturing industries and for sectors in manufacturing industries and 4 the importance of agglomeration economies for regional industries has increased in recent years based on these results this paper discusses effective regional policy for japan

shaming tax delinquents abstract many federal and local governments rely on shaming penalties to achieve policy goals but little is known about how shaming works such penalties may be ineffective or even backfire by crowding out intrinsic motivation in this paper we study shaming in the context of the collection of tax delinquencies we sent letters to 34 334 tax delinquents who owed a total of half a billion dollars in three u s states we randomized some of the information contained in the letter to vary the salience of financial penalties shaming penalties and peer comparisons we then measured the effects of this information on subsequent payment rates we found that increasing the visibility of delinquency status increased compliance by individuals who have debts below 2500 but had no significant effect on individuals with larger debt amounts financial reminders had a positive effect on payment rates independent of the size of the debt while information about the delinquency of neighbors had no effect on payment rates

prospect theory and the risk return relation some belgian evidence in this study fiegenbaum and thomas s application of prospect theory to empirically derived risk return relations was replicated and extended with belgian accounting data four profitability varia

dependability and organizational bankruptcy an application of agency and prospect theory this paper proposes and tests a new model of organizational bankruptcy based on agency and prospect theory the paper argues that debtors with unprestigious top managers low liquidity and high leverage signal that they will be undependable exchange partners the model proposes that survival is contingent on maintaining an acceptable minimum level of these financial and managerial assets if a firm falls below that threshold level it has a higher probability of bankruptcy because creditors withdraw their financial support from the debtor consistent with agency theory this implies that bankruptcy can be viewed as the legal resolution of severe shareholder creditor conflicts about the levels of financial and managerial assets that the debtor should maintain this new model proposes that maintaining a minimum level of these assets is a necessary but not sufficient condition for bankruptcy some undependable firms delay bankruptcy by using strategies that create the hope that they will become dependable in the future according to prospect theory these strategies work because creditors wish to avoid recognizing significant losses and thus take on more risk than they might otherwise assume

towards a knowledge based theory of the geographical cluster co located firms within related industries enhance the ability to create knowledge by variation and a deepened division of labour the interdependent development between economic activities and local institutions make the cluster attractive to some industries and hostile to others the very reasons why cognitive distance might be small within the cluster tend to make cognitive distance great between clusters and make interfirm co operation across bodies of knowledge more costly the additional value created when clustering may justify the additional cost copyright 2001 by oxford university press

supply side structural effect on carbon emissions in china abstract this paper carries out a structural decomposition analysis sda of production related carbon emissions in china from 1992 to 2005 by adopting the ghosh input output model it finds that the supply side structure measured by sectoral shares in value added increased production related carbon emissions in 1992 2002 mainly due to the rapid growth of manufacturing sectors but reduced them in 2002 2005 thanks to the decreased shares of carbon intensive sectors whatever the supply side structure forward carbon multipliers of each sector or changes in supply side sectoral shares and related emissions effects calculated by adopting the ghosh input output model were different from their demand side counterparts estimated by adopting the leontief input output model the results suggest optimizing the supply side structure and lowering the forward carbon multipliers to control carbon emissions in the future

the effects of income transparency on well being evidence from a natural experiment author s perez truglia ricardo abstract in 2001 norwegian tax records became easily accessible online allowing everyone in the country to observe the incomes of everyone else according to the income comparisons model this change in transparency can widen the gap in well being between richer and poorer individuals we test this hypothesis using survey data from 1985 2013 using multiple identification strategies we show that the higher transparency increased the gap in happiness between richer and poorer individuals by 29 and it increased the life satisfaction gap by 21 we provide suggestive evidence that some although probably not all of this effect relates to changes in self perceptions of relative income we provide back of the envelope estimates of the importance of income comparisons and discuss implications for the ongoing debate on transparency policies

interregional multipliers looking backward looking forward backward linkages are usually measured using output multipliers as based on the input matrix similarly value added and import multipliers are derived by additionally using the corresponding primary input coefficients for measuring forward linkages input multipliers have been frequently used within a supply driven input output model these multipliers are obtained from the output matrix the present paper extends this notion by taking into account also the final output coefficients this yields consumption export and investment multipliers in an empirical analysis multipliers are calculated for an intercountry input output table of six european union eu countries the multipliers are decomposed into intracountry effects intercountry spillover effects and intercountry feedback effects d habitude les liens en amont sont mesures a partir des multiplicateurs de production bases sur la matrice des facteurs de production de la meme maniere des multiplicateurs de valeur ajoutee et d importation s

when do industries cluster a proposal on how to assess an industry s propensity to concentrate at a single region or nation abstract often the literature on clustering implicitly assumes national or regional sectoral agglomeration to be a general phenomenon applying to all or most businesses we argue that not all industries are equally affected by the process of clustering therefore the question on how to assess the relevance of clustering for a particular company or industry becomes important it is deduced that those industries with a divisible production process and a transportable product or service fulfil the necessary conditions for clustering a long value chain including multiple distinct competencies innovation intensity characterised by network innovations and the volatility of markets further increase the potential for an industry to cluster besides providing a heuristic for strategic management this paper alerts regional planners that only in those regions whose economic structure is characterised by industries subject to clustering the promotion of local network building is relevant

does service fdi locate differently to manufacturing fdi a regional analysis for great britain jones j and wren c does service fdi locate differently to manufacturing fdi a regional analysis for great britain regional studies this paper analyses the location of foreign direct investment fdi in services at the nuts 2 region level for great britain over 1996 2005 covering the period of growth in fdi it finds strong differences in service fdi location compared with manufacturing fdi unlike manufacturing service fdi location is determined at no higher than the nuts 2 region level while it is more dynamic and converging to the larger markets a similar pattern is found for the services that are most forward linked to manufacturing industries the paper concludes that access to final consumer demand is important for service fdi with implications for uk regional policy

assessing the impacts of foreign manufacturing on regional economies the cases of wales scotland and the west midlands brand s hill s and munday m 2000 assessing the impacts of foreign manufacturing on regional economies the cases of wales scotland and the west midlands reg studies 34 343 355 this paper examines the direct and indirect contributions made by foreign manufacturing companies to the regional economies of wales scotland and the west midlands survey data derived from foreign manufacturers in each region were used in conjunction with regional input output tables to assess the comparative contributions of defined foreign and domestically owned sectors to regional value added the analyses are a starting point for the more accurate targeting of regional resources to industry sectors in the respective regional economies brand s hills s et munday m 2000 evaluer les retombees de l industrie etrangere sur les economies regionales etude de cas du pays de galles de l ecosse et des west midlands reg studies 34 343 355 cet article cherche a examiner les roles direct et indirect joue par les en

branch plants and the evolving spatial division of labour a study of material linkage change in the northern region of england phelps n a 1993 branch plants and the evolving spatial division of labour a study of material linkage change in the northern region of england reg studies 27 87 101 recent literature has suggested that manufacturing industry including that in peripheral regions is becoming more locally embedded as a result of processes of externalization and localized linkage formation this paper explores the hypothesis that branch plants have in terms of spatial patterns of material linkages become more locally embedded as a result of recent industrial restructuring evidence from a survey of manufacturing establishments in the northern region of england is used to explore hypotheses regarding the contribution of new greenfield investments and in situ restructuring to aggregate changes in spatial patterns of linkages the results suggests that despite processes of externalization northern region branch plants continue to be poorly integrated into the regional economy consequently it is argued that the cont

organizational inertia and momentum a dynamic model of strategic change this study provides an empirical test of hannan and freeman s theory of structural inertia we examined the changes organizations undertook in response to a major environmental change in addition

toward a model of risk in declining organizations an empirical examination of risk performance and decline scholars who study organizational decline have argued that declining organizations reduce or eliminate their riskier activities such as innovation further they cite reduced risk taking as a primary contributor to further decline scholars with an interest in risk per se come to the opposite conclusion low performing firms often take more risks than other firms and such risks reduce subsequent performance this study attempts to resolve these conflicting views by examining the risk of firms in decline our model based on cyert march s cyert r m j g march 1963 a behavioral theory of the firm prentice hall englewood cliffs nj behavioral theory of the firm includes six basic variables 1 performance 2 slack 3 aspirations 4 expectations 5 risk income stream uncertainty and 6 organization size as a measure of decline the estimated model includes prior levels of risk and performance in the risk and performance equations respectively as controls this study uses data on 34

technological innovation in canada a comparison of independent entrepreneurs and corporate innovators abstract this paper compares a sample of 124 independent high technology entrepreneurs with 112 corporate entrepreneurs intrapreneurs involved in developing and introducing high tech innovations across canada the study investigates the general management and technical problems faced by these entrepreneurs and contrasts their approach to such issues as market research financing and production the approaches used by the two groups in analyzing their markets and in planning and financing of innovations are compared and contrasted in general the independent entrepreneurs were technically trained usually possessing engineering training but no general management training or experience neither themselves nor members of their management team corporate entrepreneurs were as likely to come from management backgrounds as technical or else supported their lack of general management skills by adding people to their team with skills in marketing finance and manufacturing their problems were more often defending their ideas to management within the corporation obtaining funding and other resources within the firm and finding a corporate mentor to assist them in such areas as fighting political battles providing rewards and incentives for team members and creating the proper overall environment or culture for innovation within the corporation the lack of general management training and experience by the independent entrepreneurs led them to rate various marketing problems as the most serious difficulties in rating the obstacles to launching their innovations the innovations of the independent entrepreneurs were all new products while some of the corporate innovations were new systems or processes often installed within the corporation so the markets for these innovations were also within the corporation and required less of a marketing effort corporations were also much better prepared to handle problems in the marketing planning and operational areas but they had more problems of an interpersonal nature such as the unwillingness to consider alternative approaches the most significant difference in the obstacles encountered was that independent entrepreneurs listed their five most important problems as marketing difficulties in launching their new products corporate entrepreneurs also rated imperfect market analysis as their most important problem but it was closely followed by the lack of entrepreneurial talent within the company these obstacles lead to the primary recommendation of cooperative agreements of partnerships between large and small firms to solve some of these difficulties corporate responses indicated significant difficulty in gaining support within the corporation while independent entrepreneurs did not have to justify their efforts to a corporate hierarchy

do organizational and spatial proximity impact of firm performance oerlemans l a g and meeus m t h 2005 do organizational and spatial proximity impact on firm performance regional studies39 89 104 recent theoretical developments in organization science economic geography and regional economics have emphasized the importance of organizational and geographical proximity for the performance of firms empirical evidence on these relationships is scarce though the paper asks to what extent firm specific resources network activity proximity and industry factors influence innovative and economic outcomes we used a theoretical synthesis of regional and organizational science and economic geography to build a research model that enabled us to derive several hypotheses on the influence of different forms of proximity on outcomes taking other relevant predictors for performance into account the empirical findings specify the importance of proximity especially for innovative outcomes we found that in particular intra and interregional relations with buyers and

concrete agglomeration benefits do roads improve urban connections or just attract more people cities with more roads are more productive however it can be unclear whether roads increase productivity directly through improved intra urban connections or indirectly by attracting more people our theory suggests that population responses may obscure the direct connectivity effects of roads indeed conditional on population size highway density does not affect productivity in a sample of us metropolitan areas however when exploiting exogenous variation in urban populations we find that highway density improves agglomeration benefits moving from the 50th to the 75th percentile of highway density increases the productivity to population elasticity from 2 to 4 moreover travel based measures outperform population size as a measure of agglomeration externalities

localized spillovers in the polish food industry the role of fdi in the development process jensen c 2004 localized spillovers in the polish food industry the role of fdi in the development process reg studies 38 535 550 the paper aims to investigate whether there are spillovers and agglomeration effects in the polish food industry this part of the research focuses on horizontal or inter industry types of spillovers assuming that they may be multidirectional and could be based on any kind of community related to geography industry affiliation and ownership in the transition countries that have opened up to foreign direct investment very recently ownership can be an important determinant of the firm s embeddedness in both local and global networks the study confirms the relevance of all three types of community factors bur raises concerns that foreign investors appear to share their own glocal networks while spillovers among domestic firms are confined to their own and also to highly localized producer communities an f test on the appropriateness of pooling confirms the idea t

agglomeration and trade some additional perspectives the form of agglomeration economies those internal to the firm as well as those external to it is reviewed consideration is next given to recent changes in the regional state economies of the us midwest as part of an effort to explore the evolving nature of agglomeration economies particular attention is paid to the changing relationship between the establishment and the firm and to radical developments that have affected the transportation sector the impact of these changes on the nature of interstate trade and on the structure of the metropolitan economy are then examined there follows a discussion of how agglomeration economies are being supplemented and perhaps replaced by less spatially constrained advantages finally certain of the more important implications of these various trends are discussed

did regional economic diversity influence the effects of the great recession using data for u s counties from 2005 to 2012 we test whether higher levels of economic diversity mediated the effects of the great recession via four measures of stability spatial spillover effects are modeled by the use of the spatial durbin estimator with heteroscedastic errors the data generally support the central hypothesis that higher levels of diversity within a county are associated with enhanced employment stability across all counties as well as subsets of metro and nonmetro counties results for wage stability however appear to contradict our other findings we suggest that underlying labor elasticities can bridge these apparent contradictory results jel r11 r12 o47

the responsibility for carbon emissions and carbon efficiency at the sectoral level evidence from china this work reviews benefit based principles to measuring responsibility for carbon emissions at the sectoral level using environmental input output analysis several new emissions multipliers are proposed to measure sectoral carbon efficiency these principles are used in an empirical analysis of carbon emissions in china and differences between the principles are compared the results indicate that all principles considered can prevent double counting of emissions but that different principles may lead to significantly different attributions of responsibility for carbon emissions and to different multiplier values for particular sectors electricity and heat supply is found to be the sector with the highest emissions responsibility under all but the consumer responsibility principle as well as the highest carbon multiplier under all principles however this sector s responsibility under producer responsibility principles is greater than that under other principles basic metals and transportation and post and telecommunication are among the top five sectors with the greatest responsibilities under all but the consumer responsibility principle whereas construction has the highest consumer responsibility among all sectors the pros and cons and policy implications of each principle are also discussed

entrepreneurial retrenchment among small manufacturing firms abstract strategic management researchers have traditionally focused on growth oriented strategies for small firms yet studies of small businesses have consistently cited overzealous pursuit of growth as the number one contributor to financial decline and failure record numbers of small firms are finding themselves confronted with declines of sufficient magnitude to require the implementation of turnaround strategies much has been written about turnaround strategies for large corporations the problem is that the commonly recommended turnaround strategies are not often feasible for small firms unfortunately there are no investigations reported in the literature that approach the subject of turnaround from the perspective of the small market share businesses the purpose of this research was to explore turnaround from the small firm perspective the study focused on the turnaround strategy most often referred to as entrepreneurial retrenchment i e the aggressive pursuit of cost and asset reduction the results showed that firms that pursued entrepreneurial retrenchment were more successful than firms that continued to pursue growth with the preexisting configuration of assets even after a period of extensive cost cutting the findings suggest strongly that managers of successful small market share firms must be able to quickly recognize and ameliorate underper forming assets when they encounter turnaround situations the findings were a result of empirical analyses of 33 small market share firms that had encountered turnaround situations turnaround situations were initially identified by the incidence of at least two successive years of declining profitability that exceeded any industry wide decline that may have occurred over the same time period the firms were subsequently contacted to verify that they considered the timeframe to indeed coincide with a period during which their managerial actions were targeted to achieve a performance turnaround each of the firms was then classified according to the direction of their cost and asset changes over the turnaround period nonretrenchers were those firms that did not achieve net reductions in costs or assets for any years after the decline cost retrenchers were those firms that achieved net costs reductions but not asset reductions for a minimum of one year succeeding the decline finally entrepreneurial retrenchers were those firms that sustained a minimum of one year of asset reductions in addition to cost reductions in the years immediately after the decline although entrepreneurship research has traditionally focused on developing and investing in new businesses little has been done on the issue of asset restructuring that precedes entrepreneurial endeavors in established companies robinson and pearce 1988 for single businesses the essence of entrepreneurship is the ability to quickly respond to marketplace opportunities the underside of this pursuit is the ability to quickly reposition assets to accompany ensuing moves for competitive viability for single business firms an inability to respond quickly to financial downturns creates turnaround situations therefore an examination was prepared to determine the value of retrenchment as a means to achieve turnaround and financial stability the results were produced through an analysis of longitudinally collected financial data that was used to profile each firm s turnaround situation severity their classification of retrenchment and the degree to which they were able to successfully achieve a return to predownturn financial performance

small firm adaptation responses of physicians organizations to regulatory and competitive uncertainty this study addressed the pattern of small organizations s adaptation responses to uncertainty in the regulatory and competitive sectors of their environment using data from physicians in solo pract

the embeddedness of tourism related activity a regional analysis of sectoral linkages the paper undertakes a linkage analysis on a regional economy concentrating on tourism related sectors recent improvements in the accounting for tourism activity through satellite account frameworks provide information on tourism related sectors and their transactions with the rest of the economy several regions of the uk have highlighted tourism as an important development sector but often with a less than perfect understanding of how changes in tourism demand affect tourism related sectors and then how changes in these sectors impact the rest of the economy the study employs a series of approaches to construct linkage measures and to explore the regional intensity of the transactions linkages of tourism related sectors it also considers the extent to which in the case study region of wales these same sectors might be considered as key in terms of their linkage strength

agriculture reform and food crisis in syria impacts on poverty and inequality abstract the paper pursues a twofold objective from a methodological viewpoint it shows how to carry out an impacts evaluation of exogenous shocks on poverty and inequality in a context characterised by out of equilibrium poorly adjusting markets as it is the case in many developing countries using a social accounting matrix framework from an empirical viewpoint it provides an assessment of how the cereal price spikes of 2007 2008 and the global recession of 2008 2009 have impacted the welfare of syrian households and how did they compound with the on going agricultural sector liberalisation implemented by the government of syria since mid 1990s this will contribute to shed some lights on the economic background behind the spreading of unrest across the country over the last couple of years or so the results show that liberalisation impacts are very different and largely affected by the adopted budget closure rules while reforms aiming at reducing agricultural market distortions such as production subsidies and price support for strategic crops could generally have a positive effect on growth poverty and inequality the elimination of food security interventions such as food stamp schemes determines an adverse distributional impact against rural household and an increase of poverty the recent macroeconomic shocks food price crisis and the global recession determined a generalised poverty increase and showed an income distribution bias against rural households three fundamental policy implications can be drawn by this study first the liberalisation of agricultural sector shows a significant growth potential and is likely to determine positive effects on poverty through a generalised increase of incomes as well as public budget savings that could be used for pursuing other policy goals second in the short run there is a structural trade off between equity improvements and poverty alleviation the policy options that will more likely reduce absolute poverty show undesirable distributive biases both on overall inequality and on rural households vis a vis urban households third the reform should include a careful design of the use of budget savings mainly to address equity goals that are likely to be generated in the short run by liberalisation

determinants of satisfaction for entrepreneurs this study considers the extent to which entrepreneurs are satisfied with their businesses in their third year of business ownership entrepreneurial satisfaction might be viewed as a basic measure of performance it may bear upon decisions by individual entrepreneurs about whether to invest more time and money whether to cut back or whether to close down it may also influence whether entrepreneurs work effectively with their customers and employees for researchers the investigation of why in particular settings some entrepreneurs may be more satisfied than others may aid in the interpretation of past research which has used this as a performance measure this research draws upon a theoretical framework used in investigations of employee satisfaction called discrepancy theory it suggests that individual satisfaction is determined in part by whether there is a gap between actual rewards or performance and the individual s goals or expectations in this research it was hypothesized that entrepreneurs emphasizing primarily noneconomic goals such as doing the work they wanted to do would have higher satisfaction when the business was experiencing lower levels of performance for higher levels of performance there would be no difference in essence the satisfaction of those emphasizing economic goals would vary more with economic performance a related hypothesis was that for this sample of start up firms many of which would be experiencing low levels of performance those emphasizing noneconomic goals would have higher average levels of satisfaction this was based upon the expectation that many start up firms would be experiencing marginal performance so that the gap between goals and performance would be greater for economically oriented entrepreneurs the research also focused upon expectations because one aspect of discrepancy theory suggests that satisfaction decreases if there is a gap between expectations and performance accordingly it was hypothesized that controlling for performance entrepreneurs with higher initial expectations would subsequently have lower levels of satisfaction previous research suggests that membership in particular demographic groups may influence expectations this led to hypotheses that older entrepreneurs female entrepreneurs and minority entrepreneurs would have lower levels of initial expectations this in turn may influence later satisfaction thus it was hypothesized that controlling for performance entrepreneurs in each of these groups would have higher satisfaction because their initial expectations would be lower the study utilized a sample of 287 entrepreneurs who were followed over a 3 year period the data on predictors of satisfaction were gathered in year 1 when the average owner had been in business for 11 months the satisfaction measures were gathered 2 years later by that time there should have been some stabilization in the routines of the business and the entrepreneur could reflect upon historic performance and experiences in judging the extent to which business ownership had been satisfying the data were analyzed primarily using path analysis in which it was hypothesized that certain variables would have both direct and indirect effects upon satisfaction it was found that the satisfaction of entrepreneurs emphasizing economic goals was not more sensitive to economic performance at least within the range of performance considered in this sample for this group of firms many of which appeared to be experiencing marginal performance those emphasizing noneconomic goals did express higher levels of satisfaction it had been expected that those with higher initial expectations would later be less satisfied because they would have a greater expectation performance gap however the opposite was found those who were more optimistic initially were more satisfied later even when controlling for performance demographic influences on initial expectations were examined contrary to expectations none of the demographic traits was significantly related to initial assessment of likelihood of success older entrepreneurs women entrepreneurs and minority entrepreneurs were just as optimistic as those in other groups the relationship between membership in these demographic groups and later satisfaction was also examined no significant relationships were found for older entrepreneurs and minority entrepreneurs however there was some evidence p 07 that women entrepreneurs were more satisfied with business ownership two of the most interesting findings were those related to initial expectations and to women entrepreneurs contrary to discrepancy theory those who had higher initial expectations were later more satisfied not less this may suggest as staw and ross 1985 found in a longitudinal study of employee satisfaction that attitudes are in part a function of stable individual traits those who had a positive view of their initial prospects later viewed the experience of business ownership more favorably regardless of subsequent performance for women entrepreneurs the higher levels of satisfaction may reflect a view that they have fewer attractive alternatives it may also be that they discover greater relative satisfaction from the day to day aspects of business ownership for entrepreneurs and their advisors the findings suggest that particular goals attitudes and backgrounds are likely to be associated with greater satisfaction this may influence whether entrepreneurs stay with marginal businesses for researchers the study provides insight into discrepancy theory by considering its application to entrepreneurs rather than the hired employees normally studied in addition subjective measures of performance such as satisfaction have often been used in previous research on entrepreneurial performance this study casts light on why in particular settings some entrepreneurs may be more satisfied than others

prediction of failure of a newly founded firm abstract the rate of mortality among newly founded firms is very high failure statistics universally show that over 50 of newly founded firms will fail during their first five years the economic financial and social losses resulting from these failures are significant thus it is valuable to try to develop methods to predict and to avoid such failures however there are only very few studies dealing with failure prediction methods for newly founded firms the aim of this study was to develop such methods that would also have practical value failure was defined as cash insolvency the aim was to develop a failure prediction model based on financial statement data from newly founded firms the ratios based on these data are hard measures and easy to calculate also for a person forced to only use publicly available information a prediction model based on these ratios could then be a practical method for financial analysts and other interest groups in evaluating the failure probability of a new firm this model does not require information about management products or markets because it rather deals with the symptoms of failure than the causes the study is based on a supposition that failure process in a newly founded firm is characterized by a too high initial indebtedness and by too low revenue financing as compared with the budget this supposition was supported by the empirical results based on the comparison of the financial ratios in first four years between 20 failed and 20 nonfailed small newly founded entrepreneurial industrial firms these results may give an explanation as to why some newly founded firms will fail and some will survive this explanation is of course based on the development of financial variables in the very first years the results showed that it is possible to some degree to predict the failure of a newly founded firm already in the first year after foundation the prediction accuracy will increase when the data of failure is approached the best univariate predictors proved to be stockholders capital to total capital ratio indebtedness cash flow to net sales ratio revenue financing and cash flow to total debt ratio sufficiency of revenue financing to pay financial obligations the prediction accuracy can be increased by adjusting the critical value of the ratio stepwisely to the year of operation thus the optimal critical value will change year by year after foundation the prediction accuracy can slightly be improved by a multivariate analysis this kind of multivariate model also included the logarithmic size net sales of the firm as a variable so that the probability to fail increased when the size increased the results also showed that the same multivariate model estimated for older small firms can be used as a failure prediction model for newly founded firms however this requires that quite different critical values are selected for both types of firms to summarize the results show that the failure of a newly founded firm is to some degree predictable by univariate or multivariate analyses the failure risk is increased with high indebtedness insufficient revenue financing and large size in the first years hence the risk to fail can be reduced by using less debt as initial financing and by paying special attention to the generation of a sufficient amount of revenues in initial stages furthermore it may be less risky to start business operations with a smaller rather than larger initial size

modeling prices in a sam structure the aim of this paper is to develop an intersectoral price model in a social accounting matrix traditionally the emphasis of the social accounting methodology has been on quantity oriented models and their income effects in contrast the authors use the social accounting matrix to develop a price model that captures the interdependence among activities households and factors and provides a complete set of accounting prices furthermore they use decomposition techniques to trace underlying general equilibrium effects copyright 1995 by mit press

decomposing multipliers for economic systems involving regional and world trade this paper is concerned with the analysis of linkages between economic systems and the spillover and possible feedback effects one system may have on another it is not a new topic the initial stimulus in the literature coming from machlup i943 and the seminal papers by metzler i950 and chipman i950 almost precisely the same questions raised by these authors have been readdressed subsequently by many writers and in a variety of contexts most recently goodwin i983 has developed a world matrix multiplier with much the same overall objectives as machlup and metzler in mind metzler s proposition was to understand the mechanism by which an expansion or contraction of income in one region or country is transmitted to other regions or countries in addition he assumed that the conclusions apply without modification to the regions within a single country or indeed to any regional classification of the world economy such as the economies comprising eastern europe western europe latin america and similar regions 2 in fact the question has also long occupied the attention of many regional economists working in the context of sub national regions the question of interdependence between sub national regional economies generally assumes a special importance simply because such regions are relatively open economies and are subject to fewer natural and artificial barriers to commodity trade and factor movements than may exist between countries 3 even so interest has focused almost exclusively on regional interdependence through commodity trade and within the framework of multiregional input output systems 4 however there are some exceptions klein and glickman i 9 77 have developed a multiregional model of a fairly aggregative nature which incorporates other regional interdependencies a review of this and similar models has been carried out by glickman i97 7 paralleling this interest in inter regional interdependence at the sub national level there has been a revived interest in questions of linkage at the international level with the advent of the project link model pioneered by klein and hickman 5 the united nations model of the world economy leontief et al

factories or warehouses a welsh perspective on japanese transplant manufacturing munday m morris j and wilkinson b 1995 factories or warehouses a welsh perspective on japanese transplant manufacturing reg studies 29 1 17 critics of japanese direct manufacturing investment have argued that the japanese transplant manufacturing sector tms represents an attempt to circumvent trade barriers rather than a genuine globalization of japanese capital and that host regions will find themselves with warehouses or low value added final assembly plants rather than fully integrated manufacturing operations which will contribute significantly to the development of the local economy this paper presents a detailed study of the economic impact of japanese manufacturing in wales a region within the uk which has one of the highest concentrations of japanese manufacturing investment in europe it finds that there are some problems with japanese investment but although japanese companies do appear to operate their businesses in different ways to other inward investors many of these are be

technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries siler p wang c and liu x 2003 technology transfer within multinational firms and its impact on the productivity of scottish subsidiaries reg studies 37 15 25 this paper aims to examine the extent to which the technology generated in us parent firms is transferred to their scottish affiliates in the form of productivity gains using a firm level panel data set the empirical results show that the labour productivity growth of scottish subsidiaries is positively linked to the rd those that already have achieved a relatively high level of productivity and those that compete in industries based on product technology the results have implications

out of the frying pan why small business managers introduce high risk products abstract some managers in small firms who are disappointed with their firm s current performance will introduce new products to improve the situation although untested in a small business context prospect theory suggests that managers who are less satisfied may be more likely to introduce products with riskier characteristics the current study confirmed this finding that managers who were less satisfied introduced products into less familiar markets and required more resources the study also provided tentative evidence that these characteristics may decrease the product s economic performance and the manager s subsequent satisfaction with the business suggesting that a dangerous downward spiral may occur

entrepreneurship and the initial size of firms abstract it is clear that entrepreneurs and their firms can vary widely nevertheless most of the research to date on entrepreneurship has examined central tendencies with relatively little attention devoted to entrepreneurial diversity this study examines one of the most distinguishing characteristics of young firms initial size the focus is whether smaller start ups differ from larger ones in the backgrounds of the entrepreneurs their processes of starting or the subsequent patterns of development in this longitudinal study an initial sample of 1903 young firms was examined to determine differences in characteristics of the entrepreneurs and in their processes of starting one year later data were obtained from 742 of these firms permitting analysis of how initial firm size was related to subsequent difficulties encountered and changes made as well as to performance as expected along almost every dimension these starting larger firms had the backgrounds that would seem to be necessary for the assembly of substantial resources they tended to have more education more management experience and goals that were more managerial in nature they also were more likely to have partners women were associated more often with smaller ventures but for this sample there were no differences in the representation of minorities between the smaller and larger start ups those starting larger ventures tended to rely more upon external investors and to start ventures more closely linked to their previous jobs both groups of entrepreneurs sought information from a number of sources but those founding larger ventures utilized professional advisors more whereas those starting smaller ventures utilized informal sources in the year after the first questionnaire differences between the two groups were less marked than expected both groups of surviving firms reported low levels of serious problems with the smaller ventures somewhat surprisingly reporting serious problems less often there were not many differences in changes made except that smaller ventures were more likely to lose partners and larger ventures were more likely to add branches or locations both groups reported high rates of mean growth in sales the smaller ventures with their small initial bases showed larger percentage increases smaller ventures also showed higher percentage increases in employment and surprisingly a greater increase in the absolute number of employees somewhat more of the smaller ventures had discontinued both groups included many firms that grew substantially and others that scaled back demonstrating the fluidity and experimentation characteristic of young firms for entrepreneurs and their advisors for public policy makers and for researchers any progress in understanding entrepreneurial processes should in the long run enhance venture performance the patterns observed here indicate that firms of different initial size tend to be associated with particular entrepreneurial characteristics processes of formation and subsequent patterns of development this diversity should be recognized in the development of assistance programs and university courses as well as in the interpretation of previous research for public policy makers the growth of these firms both small and large indicates the potential of economic contributions from entrepreneur ship further the growth of the smaller start ups suggests that even those ventures that appear to have few resources and modest potential can in the aggregate contribute substantially to the economy

investigating multi regional cross industrial linkage based on sustainability assessment and sensitivity analysis a case of construction industry in china abstract construction industry is one of the most energy intensive industries and its output value plays a vital role in economic growth of china it s expected to be valuable to investigate its sustainability and improvement paths under the background of environment friendly and conservation minded development at first we adopted a non radial data envelopment analysis incorporating both natural and managerial disposability to study regional differences regards comprehensive performance of construction industry in china and then a multi regional cross industrial linkage analysis was carried out embodiment in the sustainable assessment and sensitivity analysis based on the ghosh model accordingly we intended to provide a systematic relational network focusing on the key provinces and industries which play important roles in improving the comprehensive performance of construction industry in detail hebei shanghai hubei yunnan and gansu were found to be the most inefficient on account of the results from sustainable assessment in 2007 in accordance with the results from the sensitivity analysis based on the regional input output model the adjustment of rationing in mining processing of ores manufacture of non metallic mineral products and smelting pressing of metals will effectively increase the comprehensive performance of construction industry in the above mentioned provinces emphatically the method integration used in this study which could also be applied in other sectors and countries is a new try to study an industry from the multi regional and cross industrial perspective

starting up in a turbulent environment a process model of failure among firms with high customer dependence abstract this paper proposes a process model on how new and small organizations may fail based on prior research the paper builds a foundation for a process model and then elaborates it inductively by explaining how and why significant reversals and shifts occurred between 1983 and 1985 in the entrepreneurial organizational and ecological conditions of ten new educational software companies the process model states that all organizations engage in transactions with others in the normal conduct of business and it is inevitable that a certain proportion of these transactions fail the probability of transaction failures is a product of the failure rate at the level of the organizational population as well as the kinds of transactions in which individual firms engage new and small firms in a turbulent environment represent a subset of the organizational population particularly vulnerable to the chance occurrence of a failed transaction because of liabilities of newness and small size these firms lack legitimacy furthermore in many industries there is an absence of tangible physical assets that entrepreneurs can use as collateral to attract valuable resources and customers in such situations entrepreneurs often use transactions with key external constituencies as a surrogate to attract other resource constituents thus giving rise to a leveraged set of transactions this leveraging strategy however makes the set of transactions of the firm tightly coupled and when any one transaction in a tightly coupled set fails the set often collapses hence a small business firm in this situation fails when a transaction in which it is highly dependent or leveraged happens to fail the very strategies that contributed to overcoming the problems of liabilities of newness and small size turn out to be the root causes of failure the experiences of the courseware companies are generalized to a process model of failure of new small businesses in turbulent environments

clusters linkages and interregional spillovers methodology and policy implications for the two dutch mainports and the rural north this paper develops a consistent framework to detect regional clusters of interrelated economic activity and to evaluate both the regional and the national economic significance of individual sectors and regions by using bi regional input output data it appears to be possible to distinguish systematically between intraregional clusters and linkages and their interregional spillovers the methodology is applied to three dutch regions that are especially important from a spatial policy perspective the conclusions surprisingly do not substantiate some of the traditional beliefs held especially as regards the assumed importance of the dutch transport sector cet article cherche a developper un systeme coherent apartir duquel on peut devoiler des grappes regionales d activites economiques etroitement liees et evaluer l importance economique regionale et nationale des secteurs et des regions particuliers a partir des tableaux d echanges intersectoriels pour deux regions il est possible de distinguer s

an in depth economic restructuring framework by using particle swarm optimization abstract the aim of this paper is the development of an integrated framework based on environmental input output analysis for optimizing the economic structure of an economy the restructuring process is approached as a constraint optimization problem where the optimized variables are the elements of the matrix of domestic technical coefficients a method for determining the optimal level of the productive linkages of an economy in order to maximize its output with the minimal greenhouse gas emissions the possible is suggested the proposed methodology is able to join both environmental and economic policy targets in the form of predefined constraints the objective function which is going to be minimized expresses the greenhouse gas emissions ghg intensity or ghg emissions per unit of output a particle swarm algorithm is employed for the solution of the optimization problem an illustrative application to the greek economy was carried out the experimental results revealed that if the greek economy will apply policies for boosting the sectors of high and medium high r d intensity then the greenhouse gas emission per unit of gross domestic product of greece would be reduced furthermore the promotion of high and medium high r d intensity sectors is connected with an important improvement of the production linkages to a wide range of sectors highlighting the important spillover effect of the suggested restructuring process

revisiting marshall s agglomeration economies technological relatedness and the evolution of the sheffield metals cluster potter a and watts h d revisiting marshall s agglomeration economies technological relatedness and the evolution of the sheffield metals cluster regional studies according to alfred marshall firms receive increasing returns from a trinity of agglomeration economies a local pool of skilled labour local supplier linkages and local knowledge spillovers this article re examines the mechanisms underlying marshall s agglomeration economies in the sheffield metals cluster wherein marshall discovered them despite the cluster s decline empirical evidence is found that the mechanisms underlying marshallian agglomeration economies continue to occur within the surviving metals industry however upon closer examination marshallian agglomeration economies have evolved to become more prevalent amongst plants that use related metals technology the results highlight the importance of technological relatedness to cluster survival

does transparency lead to pay compression this paper asks whether pay disclosure in the public sector changes wage setting at the top of the distribution i examine a 2010 california mandate that required municipal salaries to be posted online among top managers disclosure led to approximately 7 percent average compensation declines and a 75 percent increase in their quit rate relative to managers in cities that had already disclosed salaries the wage cuts were largely nominal wage cuts were larger in cities with higher initial compensation but not in cities where compensation was initially out of line with measured fundamentals the response is more consistent with public aversion to high compensation than the effects of increased accountability

entrepreneurial recovery strategies of small market share manufacturers abstract field studies of organizational decline and turnaround have provided evidence that economically troubled firms can undertake recovery from sharp financial losses in different ways as suggested by a recent stream of research the most promising of these ways is for businesses that have retrenched to initiate recovery strategies designed to redirect their remaining resources toward more promising product market combinations the choice of this set of alternatives known as entrepreneurial recovery strategies is the topic of the research that was undertaken entrepreneurial recovery strategies involve reformulation of a firm s products services markets or principal technologies in ways that represent a new or radically altered competitive posture they are contrasted to efficiency recovery strategies that entail retaining the current product market technology orientation but on a smaller and more efficient scale as these descriptions suggest the thrust of research on recovery strategies has been to merge the findings from entrepreneurship studies on new venture creation and corporate intrapreneurship with strategic management studies on retrenchment and recovery our project extends this process by treating recovery strategies as the central element in a turnaround model the research was specifically designed to address two research questions 1 which functional areas are most emphasized by small market share sms firms that pursue entrepreneurial versus efficiency recovery strategies 2 what are the performance implications for adopting entrepreneurial versus efficiency recovery strategies for mature industry sms manufacturers based on the cause of the performance downturn the research questions were investigated through an empirical analysis of 32 companies each of which controlled less than 1 of their mature manufacturing industry s total sales two executives from each of these companies responded to a 162 item questionnaire designed to assess the cause of a downturn that occurred anytime during the period of 1976 1985 any changes in strategy components during the recovery and the emphasis placed on specific functional level activities during the response to the decline additionally objective measures of performance were used to assess the performance implications of entrepreneurial and efficiency strategies the major findings from the research included 1 a high degree of strategy change among the participant firms 2 a focus on marketing and production functional areas by sms firms that pursued entrepreneurial recovery strategies and a focus on finance and management functional areas for sms firms that pursued efficiency recovery strategies and 3 a relatively poor level of performance among sms firms that pursued entrepreneurial recovery strategies the main implication from the study is that sms companies in mature manufacturing industries should consider the adoption of efficiency oriented recovery strategies to foster economic revival the research should be replicated in industries that vary both technologically and in stage of life cycle to determine if entrepreneurial strategies represent more viable alternatives in certain other turnaround situations or for other industry populations

regional tourism satellite accounts a useful policy tool tourism increasingly features in strategic regional policy documents being considered important to regional economic prospects consequently many regions notably those less prosperous have expended significant resources in developing tourism attractions promoting tourism events and supporting tourism based operations in this resource context the difficulties in assessing the economic contribution of this diverse and often atomised set of activities are of concern the organisation for economic co operation and development oecd and others have suggested tourism satellite accounts tsas as a suitable method of providing consistent economic evaluation of tourism based activity yet the provision of an accurate and reliable set of accounts which informs policy decisions and resource directions is far from easy this paper examines some of the methodological difficulties in constructing a tsa at the regional level and implications for deriving an effective tourism policy

urban diversity and economic growth at the risk of some simplification it is possible to identify four periods of intense study of cities by economists each of these has led to an increased understanding of the economics of urban areas and the unique role played by cities in the modem economy the first of these periods occurred in the decade after world war i only about ten years after the truck revolutionized the transport of goods within urban areas this period included the first systematic empirical analysis of the forces affecting the location of firms and households within cities robert murray haig 1926 and a number of other microeconomists at columbia analyzed the spatial pattems of manufacturing activity in lower manhattan and in the rest of new york city haig jmd his colleagues devoted considerable attention to where things belong in an urban area p 402 providing the first systematic economic analysis of urban spatial structure for example they analyzed the garment industry concluding that it was destined by nature to disperse north of 14th street and predicting that it would follow the estabhshed spatial pattem of the cooperage barrelmaking industry standardization in size and quality of barrels had meant that identical barrels could be made throughout the new york metropolitan area even in new jersey and the introduction of the truck meant that they could be transported cheaply throughout the region and exported the second of these periods though not in chronological order began in the mid 1960s it formalized many of the insights about location incentives within urban areas which had been uncovered a half century before mixed them with the logic of heinrich von thunen s 1826 ancient theories about agricultural crops and land values and applied them to the hotisehold sector the works of william alonso 1964

assessing industry linkages using regional input output tables midmore p munday m and roberts a 2006 assessing industry linkages using regional input output tables regional studies 40 329 343 the regional policy literature has shown renewed interest in the promotion of industries with the potential to embed themselves into regional economies unfortunately analysis of sectors within strategy led documents often fails to tie the identification of key industries to any specific methodology the paper demonstrates the use of several alternative methods of evaluating inter industry linkages using input output tables in particular and following the work of dietzenbacher 1992 it uses financial information from welsh input output tables for 1995 to derive a measure giving specific insights into regional industry interdependency and the presence of relatively self contained groups of activity this is the first time that this more complex measure has been applied to a regional transactions table in the uk with the method shown to be of direct relevance to a

stumblers and stars in the management of rapid growth this article examines the problems of managing a rapid growth firm we contend that instead of being a time for entrepreneurial celebration and relief a period of over 50 growth is a time for wariness and some very difficult decisions such firms face a fragile transition they are beyond being intimate cohesive entrepreneurial ventures but they have not yet become secure stable entities not only are they in flux but these firms are often disoriented by the pace at which change is occurring firms such as atari cray research cullinet osborne computers people express and rolm recently have faced or now face these challenges with very different degrees of success this article presents observations drawn from several sources a study of thirty rapid growth firms which we have underway literature and press accounts of rapid growth and our consulting and discussions with executives in such firms while far from definitive the article reports several themes that are very pronounced in the situations we have studied these themes are of two types 1 recurring challenges and traps faced by rapid growth companies and 2 characteristics af firms which seem to avoid or surmount these traps these are the four fundamental challenges that we see confronting rapid growth firms 1 1 instant size these firms double and triple in size very quickly this in turn creates problems of disaffection inadequate skills and inadequate systems 2 2 a sense of infallibility by virtue of their success to date rapid growth firms often view their strategies and behaviors as infallible the unfortunate irony is that they become convinced of their wisdom while the environment is turbulent and large competitors are entering 3 3 internal turmoil as a social organism a firm growing at 50 per year is under great strain there is a stream of new faces people who do not know each other and who do not know the company decision making suffers turf battles abound and people burn out 4 4 extraordinary resource needs rapid growth firms are typically cash starved instead of abundance they often face a bare bones existence each of these challenges calls for its own solutions but we have observed some overarching themes in firms that have successfully traversed a period of rapid growth the chief executive is able to envision and anticipate the firm as a larger entity the team needed for tomorrow is hired and developed today the original core vision of the firm is constantly and zealously reinforced new big company processes are introduced gradually as supplements to rather than replacements for existing approaches hierarchy is minimized employees hold a financial stake in the firm beyond developing these themes for success the article concludes with a brief discussion of the effectiveness of owner founders in rapid growth situations

the identification of regional industrial clusters using qualitative input output analysis qioa titze m brachert m and kubis a the identification of regional industrial clusters using qualitative input output analysis qioa regional studies the cluster theory has become one of the main concepts promoting regional competitiveness innovation and growth as most empirical applications focus on measures of concentration of one industrial branch in order to identify regional clusters the appropriate analysis of specific vertical relations is developing in this discussion this paper tries to identify interrelated sectors via national input output tables with the help of minimal flow analysis mfa the regionalization of these national industry templates is carried out with the allocation of branch specific production values on regional employment as a result the paper shows concentrations of vertical clusters in only 27 of 439 german nomenclature des unites territoriales statistiques nuts 3 regions titze m brachert m et kubis a l identification des grappes industrielles a partir des

firm size and regional linkages a typology of manufacturing establishments in southern spain romero i and santos f j 2007 firm size and regional linkages a typology of manufacturing establishments in southern spain regional studies 41 571 584 regions with different levels of development are characterized by different enterprise compositions according to firm size and regional productive linkages using these two variables and two additional ones the technological level and the position in the value chain the composition of the industrial sector in any region can be studied in this respect a new theoretical enterprise typology is proposed in this paper as a powerful analytical tool furthermore empirical work is carried out using a data set from the survey done to estimate the regional input output table of andalusia a backward region in southern spain thus the theoretical enterprise typology is applied to the industry in andalusia so that some strengths and weaknesses of the regional economy are identified romero i et santos f j 2007 la taille de l entreprise et les mail

economics of devolution decentralization in the uk some questions and answers mcgregor p g and swales k 2005 economics of devolution decentralization in the uk some questions and answers regional studies 39 477 494 the paper explores the economic implications of the radical process of devolution decentralization and delegation of decision making and policy delivery initiated by the post 1997 uk labour government it is argued that the economies of all the presently devolved regions ultimately suffer if the barnett formula is rigorously imposed it is shown that the efficiency of devolving fiscal authority involves a balance of positive and negative elements depending on wage bargaining and migration responses it is then argued that delegation devolution of regional economic development policies while exploiting regional information advantages neglects regional economic interdependence so there are potential gains from greater cooperation coordination