modeling global spillover of new product takeoff abstract this article examines the global spillover of foreign product introductions and takeoffs on a focal country s time to takeoff using a novel data set of penetration data for eight high tech products across 55 countries it shows how foreign clout the susceptibility to foreign influences and intercountry distances affect global spillover patterns the authors find that foreign takeoffs but not foreign introductions accelerate a focal country s time to takeoff the larger the country the higher its economic wealth and the more it exports the more clout it has in the global spillover process in contrast the poorer the country the more tourists it receives and the higher its population density the more susceptible it is to global spillover effects cross country spillover effects are stronger the closer the countries are to one another both geographically and economically but not necessarily in terms of culture the model the authors develop also quantifies the spillover between each co

can capital scarcity help agency theory explain franchising revisiting the capital scarcity hypothesis we offer a rationale for a link between capital scarcity and franchising predictions respectively based on agency theory and the capital scarcity hypothesis were tested among 91 restaurant chains

marketing mix and brand sales in global markets examining the contingent role of country market characteristics marketing products globally is challenging due to the diverse nature of markets we use market heterogeneity unbranded competition resource and infrastructure availability and sociopolitical governance as country market characteristics that distinguish between developed and emerging countries we investigate their moderating role on the relationship between elements of the marketing mix and brand sales we provide evidence from a hierarchical linear model and a panel data set of brands from 14 emerging and developed markets that account for 62 of the global gdp that country market characteristics moderate the relationship between the complete set of marketing mix elements and brand sales performance asymmetrically while distribution and price have the largest impact in emerging and developed countries respectively product innovation and advertising have significantly larger impacts in emerging markets relative to developed countries these finding highlights the importance of contingency view of marketing strategy in global markets

exploring the potential for energy conservation in french households through hybrid modeling although the building sector is recognized as having major potential for energy conservation and carbon dioxide emissions mitigation conventional bottom up and top down models are limited in their ability to capture the complex economic and technological dynamics of the sector this paper introduces a hybrid framework developed to assess future household energy demand in france res irf a bottom up module of energy consumption for space heating has several distinctive features i a clear separation between energy efficiency i e investment in energy efficient technologies and sufficiency i e changes in the utilization of energy consuming durables which allows the rebound effect to be assessed ii the inclusion of barriers to energy efficiency in the form of intangible costs consumer heterogeneity parameters and the learning by doing process iii an endogenous determination of retrofitting which represents trade offs between retrofit quantity and quality subsequently res irf is linked to the imaclim r computable general equilibrium model this exercise shows that compared to a 37 reduction in final energy demand achievable in business as usual in existing dwellings an additional reduction of 14 could be achieved if relevant barriers to efficiency and sufficiency were overcome

diffusion of new products empirical generalizations and managerial uses the diffusion model developed by bass bass f m 1969 a new product growth model for consumer durables management sci 15january 215 227 constitutes an empirical generalization it represents a pattern or regularity that has been shown to repeat over many new products and services in many countries and over a variety circumstances numerous and various applications of the model have lead to further generalizations modifications and extensions of the model have lead to further generalizations in addition to the empirical generalizations that stem from the model we discuss here some of the managerial applications of the model

regional variations in us consumer response to price changes in home heating fuels the northeast and the south 1987 regional variations in us consumer response to price changes in home heating fuels the northeast and the south applied economics vol 19 no 9 pp 1261 1268

heat savings and heat generation technologies modelling of residential investment behaviour with local health costs abstract the trade off between investing in energy savings and investing in individual heating technologies with high investment and low variable costs in single family houses is modelled for a number of building and consumer categories in denmark for each group the private economic cost of providing heating comfort is minimised the private solution may deviate from the socio economical optimal solution and we suggest changes to policy to incentivise the individuals to make choices more in line with the socio economic optimal mix of energy savings and technologies the households can combine their primary heating source with secondary heating e g a woodstove this choice results in increased indoor air pollution with fine particles causing health effects we integrate health cost due to use of woodstoves into household optimisation of heating expenditures the results show that due to a combination of low costs of primary fuel and low environmental performance of woodstoves today included health costs lead to decreased use of secondary heating overall the interdependence of heat generation technology and heat saving choice is significant the total optimal level of heat savings for private consumers decrease by 66 when all have the option to shift to the technology with lowest variable costs

the market evolution and sales takeoff of product innovations in contrast to the prevailing supply side explanation that price decreases are the key driver of a sales takeoff we argue that outward shifting supplyand demand curves lead to market takeoff our fundamental idea is that sales in new markets are initially low because the first commercialized forms of new innovations are primitive then as new firms enter actual and perceived product quality improves and prices possibly drop which leads to a takeoff in sales to provide empirical evidence for this explanation we explore the relationship between takeoff times price decreases and firm entry for a sample of consumer and industrial product innovations commercialized in the united states over the past 150 years based on a proportional hazards analysis of takeoff times we find that new firm entry dominates other factors in explaining observed sales takeoff times we interpret these results as supporting the idea that demand shifts during the early evolution of a new market due to nonprice factors is the key driver of a sales takeoff

the international penetration of ibusiness firms network effects liabilities of outsidership and country clout the burgeoning of ibusiness firms in the modern digital economy challenges the received internationalization theory given that ibusinesses such as social networking sites create value by providing a digital platform for users to interact with one another we employ a user network perspective and externalization logic suggesting that ibusinesses internationalization process depends critically on users collective interactions instead of being solely driven by firms market commitments as noted by the uppsala model however ibusinesses may suffer from liabilities of outsidership due to the boundedness of international network effects drawing on social network theory we demonstrate that such liabilities can be mitigated by first diffusing the ibusiness platform in countries with higher clout our analysis using a unique dataset of mobile ibusiness platforms finds empirical support for the hypotheses we discuss theoretical implications for the network approach of the uppsala model in the digital era

heating homes understanding the impact of prices abstract studies show that energy prices have an impact on household energy consumption however these studies pay little attention to interpreting the findings and therefore little is known about how and why households respond to energy prices this paper provide an example of an interpretation of the impact of energy prices on consumption from a social practice theoretical perspective this paper investigates the impact of district heating price level on energy used for space heating and hot water by danish households living in single family detached houses the results show a moderately negative effect of the price level on consumption which is stronger in newer presumably more energy efficient houses and for higher income households however the effect varies across years which suggests that the price responsiveness is more a matter of changing everyday practices short term response than being able to afford energy improvements long term response in a practice theoretical perspective the results indicate that price differences have an impact on everyday practices where for example the aspect of energy in everyday practices is perceived as more valuable to practitioners in expensive areas compared to cheaper areas and that the meaning of price in practices is influenced by the social and material contexts

does corporate strategy matter a revisionist view that corporate strategy does not matter has gained considerable influence in recent years this view largely stems from empirical results of early variance decomposition studies that found negligible corporate effects associated with profitability differences between businesses our analysis of the variance decomposition literature shows this view to be incorrect not only do the studies as a group show that factors at the corporate level of organizations contribute to profitability differences but also evidence suggests that factors specifically associated with corporate strategy contribute to corporate effects corporate strategy in fact does matter copyright 2001 john wiley sons ltd

residential consumption of gas and electricity in the u s the role of prices and income abstract we study the residential demand for electricity and gas working with nationwide household level data that cover recent years namely 1997 2007 our dataset is a mixed panel multi year cross sections of dwellings households in the 50 largest metropolitan areas in the united states as of 2008 we estimate static and dynamic models of electricity and gas demand we find strong household response to energy prices both in the short and long term from the static models we get estimates of the own price elasticity of electricity demand in the 0 860 to 0 667 range while the own price elasticity of gas demand is 0 693 to 0 566 these results are robust to a variety of checks contrary to earlier literature metcalf and hassett 1999 reiss and white 2005 we find no evidence of significantly different elasticities across households with electric and gas heat the price elasticity of electricity demand declines with income but the magnitude of this effect is small these results are in sharp contrast to much of the literature on residential energy consumption in the united states and with the figures used in current government agency practice our results suggest that there might be greater potential for policies which affect energy price than may have been previously appreciated

modelling household energy expenditures using micro data this paper is concerned with the empirical modeling of domestic demand for energy in the united kingdom at the level of the individual household a two stage budgeting model of household demand for energy conditional on durable ownership is developed at the first stage income is allocated between energy and nonenergy consumption while at the second stage energy expenditure is disaggregated the second stage allocation is assumed to be between gas electricity and a composite good other fuels estimation takes place using a sample of some 50 000 households drawn from the annual u k family expenditure survey for the years 1972 83 a source that has not been fully exploited in the analysis of energy demand to date copyright 1989 by royal economic society

new product diffusion acceleration measurement and analysis it is a popular contention that products launched today diffuse faster than products launched in the past however the evidence of diffusion acceleration is rather scant and the methodology used in previous studies has several weaknesses also little is known about why such acceleration would have occurred this study investigates changes in diffusion speed in the united states over a period of 74 years 1923 1996 using data on 31 electrical household durables this study defines diffusion speed as the time it takes to go from one penetration level to a higher level and it measures speed using the slope coefficient of the logistic diffusion model this metric relates unambiguously both to speed as just defined and to the empirical growth rate a measure of instantaneous penetration growth the data are analyzed using a single stage hierarchical modeling approach for all products simultaneously in which parameters capturing the adoption ceilings are estimated jointly with diffusion speed parameters the variance in diffusion speed across and within products is represented separately but analyzed simultaneously the focus of this study is on description and explanation rather than forecasting or normative prescription there are three main findings 1 on average there has been an increase in diffusion speed that is statistically significant and rather sizable for the set of 31 consumer durables the average value of the slope parameter in the logistic model s hazard function was roughly 0 48 increasing with 0 09 about every 10 years it took an innovation reaching 5 household penetration in 1946 an estimated 13 8 years to go from 10 to 90 of its estimated maximum adoption ceiling for an innovation reaching 5 penetration in 1980 that time would have been halved to 6 9 years this corresponds to a compound growth rate in diffusion speed of roughly 2 between 1946 and 1980 2 economic conditions and demographic change are related to diffusion speed whether the innovation is an expensive item also has a sizable effect finally products that required large investments in complementary infrastructure radio black and white television color television cellular telephone and products for which multiple competing standards were available early on pcs and vcrs diffused faster than other products once 5 household penetration had been achieved 3 almost all the variance in diffusion speed among the products in this study can be explained by 1 the systematic increase in purchasing power and variations in the business cycle unemployment 2 demographic changes and 3 the changing nature of the products studied e g products with competing standards appear only late in the data set after controlling for these factors no systematic trend in diffusion speed remains unaccounted for these findings are of interest to researchers attempting to identify patterns of difference and similarity among the diffusion paths of many innovations either by jointly modeling the diffusion of multiple products as in this study or by retrospective meta analysis the finding that purchasing power demographics and the nature of the products capture nearly all the variance is of particular interest specifically one does not need to invoke unobserved changes in tastes and values as some researchers have done to account for long term changes in the speed at which households adopt new products the findings also suggest that new product diffusion modelers should attempt to control not only for marketing mix variables but also for broader environmental factors the hierarchical model structure and the findings on the systematic variance in diffusion speed across products are also of interest to forecasting applications when very little or no data are available

green hypocrisy environmental attitudes and residential space heating expenditure popular media make claims of a green hypocrisy groups which have the strongest attitude towards the environment also have the highest emissions this study examines whether environmental behaviours beliefs and attitudes are associated with space heating energy use in the uk in order to test for evidence of a green hypocrisy in the uk the largest proportion of household energy use is for space heating we find that environmental behaviours are negatively correlated with heating expenditures while environmentally friendly attitudes and perceptions are not associated with lower heating expenditure further the effect of these attitudes and behaviours does not change as income increase there seems to be little evidence of a green hypocrisy amongst the uk public with respect to space heating

quebec residential electricity demand a microeconometric approach in this paper we use a micro approach to model quebec residential demand for electricity the model incorporates a joint continuous discrete decision framework which allows for interrelationships between decisions on electricity related durable holdings and those on usage in the spirit of recent studies which used a continuous discrete frame work the model parameters are estimated using a two stage approach at the first stage the decisions regarding space and water heating systems are modelled with a very flexible multinomial probit mnp framework then at the second stage the demand for electricity conditional on the chosen heating system is estimated using ordinary least squares and a correction is applied in order to eliminate a potential estimation bias the estimated short run and long run price and income elasticities have the correct signs and are rather small as is expected under such circumstances

price sensitivity of residential energy consumption in norway abstract the main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption the results for the income and energy price variables are of special interest stability in the time dimension is tested by applying the model on micro data for each of the years 1993 1995 the parameter estimates are stable within a 95 confidence interval however the estimated impact of the energy price variable on energy consumption was considerably weaker in 1994 than in 1993 and 1995 the results for two different income groups in the pooled data set are also subject to stability testing the energy price sensitivity in residential energy consumption is found to be higher for high income households than for low income households

replacement or additional purchase the impact of energy efficient appliances on household electricity saving under public pressures abstract this study examined the influence of additional and replacement purchases of energy efficient air conditioners on power savings we used a questionnaire survey and measured electricity use data from 339 japanese households collected from two city areas with different level of government requested electricity saving rates namely osaka 10 and matsuyama 5 the main findings of our study are as follows 1 households that purchased energy efficient air conditioners saved more electricity than those that did not 2 additional purchase households showed significant energy savings whereas replacement households did not the rebound effect may negate the energy saving effects of a new air conditioner 3 altruistic attitude is associated with more active participation in power saving 4 households in osaka saved more electricity than those in matsuyama probably because the government call to save electricity was more forceful

energy efficiency and rebound effects an econometric analysis of energy demand in the commercial building sector it is widely recognized that the adoption of energy saving innovations can induce an increase in the usage of the corresponding technologies and thus can possibly increase energy consumption among other concerns is that uncertainties regarding the magnitude of this rebound effect can deter policy makers from promoting energy efficiency this paper analyzes the rebound effects of the adoption of energy efficient technologies in commercial buildings based upon a structural model of technology adoption and subsequent energy demand at the building level the empirical results are that energy efficiency can reduce electricity use by about 35 and natural gas consumption by about 50

markets vs management what drives profitability this study addresses the issue of the relative degree of variance in roa accounted for by industry corporate and sbu effects while controlling for the business cycle and the interaction between the business cycle and industry two key articles schmalensee 1985 and rumelt 1991 are discussed in detail research results on a recent data base compustat using variance components analysis varcomp are presented that not only confirm most of the rumelt 1991 findings but also suggest the existence of a corporate effect heretofore undetected

determinants of residential space heating expenditures in germany abstract we first examine the determinants of household expenditures on space heating and hot water supply in germany a number of socio economic characteristics of households are included along with building characteristics our analysis covers information on more than 12 000 households in germany for the years 1998 and 2003 the analysis continues by investigating whether different kinds of households are affected differently by increases in energy prices households in owner occupied properties are less affected compared to those in rented accommodation this could be because owners are more likely to have installed energy efficient heating and hot water supply systems and landlords have less of an incentive to improve the conditions of their rented accommodations an energy policy targeting especially the latter group might benefit not only households in rented accommodation but might also increase energy efficiency and reduce greenhouse gas emissions as well

client profitability of diffusion segments across countries for multi generational innovations the influence of firm market and cross national differences there is scant research on the important managerial question of how to maximize returns on investments in either international business or international marketing literature we propose and test a conceptual framework using data from a large technology manufacturer service provider despite early adoption by innovators and early adopters the early majority segment is most profitable however the late majority segment and the early adopters segment are the next most profitable in the developed and emerging countries respectively we propose a decision support framework incorporating cross national distances on single generation and multi generation profitability for mnes offering multi generational products in multinational markets to be more profitable

an analysis of the welfare and distributive implications of factors influencing household electricity consumption abstract the deep economic crisis and the sharp rise in electricity prices have reduced electricity demand by spanish households this paper aims to analyse the responsiveness of household electricity demand and the welfare effects related to both factors in the 2006 2012 period by applying a demand model estimated with the quantile regression method the results show that the electricity consumption of medium high income households is particularly responsive to price increases whereas that of medium low income households is more responsive to changes in income the retail electricity price increases and the economic crisis have led to lower and steeper u shape price elasticities of demand and higher and steeper n shape income elasticities of demand the joint impact of those two factors on the welfare of lower income households is higher in relative terms i e as a share of household income than for other income groups these results suggest that the economic crisis and increases in retail electricity prices have had detrimental welfare effects especially on the lower income segment of the population they should be considered when financing climate and energy policies through the electricity bill and provide a rationale to take such support which pushes the retail electricity price upwards out of the electricity bill

consumer behaviour theory and empirical evidence a survey this survey is designed to emphasize the relationship between empirical a nd theoretical considerations in the analysis of consumer behavior a lthough it focuses primarily on analysis at the individual or micro l evel it tries where possible to draw implications for the estimati on of aggregate relationships the importance of micro level analysis stems from the rapid expansion in available panel and survey data se ts this development has generated its own theoretical and empirical issues many of which are raised in this survey copyright 1988 by royal economic society

a national micro data based model of residential electricity demand new evidence on seasonal variation building on earlier estimates of electricity demand the author estimates elasticities by month to determine differences between heating and cooling seasons he develops a three equation model of residential electricity demand that includes all the main components of economic theory the model generates seasonal elasticity estimates that generally support economic theory based on the model using a national current household data set monthly division the evidence indicates there is a seasonal pattern for price elasticity of demand while less pronounced there also appears to be seasonal patterns for cross price elasticity of alternative fuels for the elasticity of appliance stock index and for an intensity of use variable

electricity demand in multi family renter occupied residences this paper focuses on multi family renter occupied housing where the landlord provides major appliances a large residential sector that has not received widespread attention in the literature experimental data are used from a test where one group of households was billed directly for the electricity they consumed while a control group had unlimited electric service included as part of the monthly rent the empirical analysis yields short run demand estimates that satisfy to a remarkable extent the ceteris paribus assumptions of demand analysis this is the case for two reasons 1 the households did not individually execute the appliance choice decision at various unknown times in the past and 2 the stock of appliances upon which the derived short run demand is conditional is identical for all households in the sample a second important feature is emphasis on functional form examined in some detail is the question of the appropriate functional form for residential electricity demand finally empirical results of the analysis are used to investigate the cost effectiveness and welfare effects of installing submeters in existing multi family residences

will it ever fly modeling the takeoff of really new consumer durables a consistent pattern observed for really new household consumer durables is a takeoff or dramatic increase in sales early in their history the takeoff tends to appear as an elbow shaped discontinuity in the sales curve showing an average sales increase of over 400 in contrast most marketing textbooks as well as diffusion models generally depict the growth of new consumer durables as a smooth sales curve our discussions with managers indicate that they have little idea about the takeoff and its associated characteristics many managers did not even know that most successful new consumer durables had a distinct takeoff their sales forecasts tend to show linear growth yet knowledge about the takeoff is crucial for managers to decide whether to maintain increase or withdraw support of new products it is equally important for industry analysts who advise investors and manufacturers of complementary and substitute products although previous studies have urged researchers to examine the takeoff no research has addressed this critical event while diffusion models are commonly used to study new product sales growth they do not explicitly consider a new product s takeoff in sales indeed diffusion researchers frequently use data only from the point of takeoff therefore nothing is known about the takeoff or models appropriate for this event our study provides the first analysis of the takeoff in particular we address three key questions i how much time does a newly introduced product need to takeoff ii does the takeoff have any systematic patterns iii can we predict the takeoff we begin our study by developing an operational measure to determine when the takeoff occurs we found that when the base level of sales is small a relatively large percentage increase could occur without signaling the takeoff conversely when the base level of sales is large the takeoff sometimes occurs with a relatively small percentage increase in sales therefore we developed a threshold for takeoff this is a plot of percentage sales growth relative to a base level of sales common across all categories we define the takeoff as the first year in which an individual category s growth rate relative to base sales crosses this threshold the threshold measure correctly identifies the takeoff in over 90 of our categories we model the takeoff with a hazard model because of its advantages for analyzing time based events we consider three primary independent variables price year of introduction and market penetration as well as several control variables the hazard model fits the pattern of takeoffs very well with price and market penetration being strong correlates of takeoff our results provide potential generalizations about the time to takeoff and the price reduction nominal price and penetration at takeoff in particular we found that on average for 16 post world war ii categories the price at takeoff is 63 of the introductory price the time to takeoff from introduction is six years the penetration at takeoff is 1 7 the time to takeoff is decreasing for more recent categories for example the time to takeoff is 18 years for categories introduced before world war ii but only six years for those introduced after world war ii many of the products in our sample had a takeoff near three specific price points in nominal dollars 1000 500 and 100 in addition we show how the hazard model can be used to predict the takeoff the model predicts takeoff one year ahead with an expected average error of 1 2 years it predicts takeoff at a product s introduction with an expected average error of 1 9 years even against the simple mean time to takeoff of six years for recent categories the model s performance represents a tremendous improvement in prediction it represents an immeasurable improvement in prediction for managers who currently have no idea about how long it takes for a new product to takeoff the threshold rule for determining takeoff can be used to distinguish between a large increase in sales and a real takeoff some limitations of this study could provide fruitful areas for future research our independent variables suffer from endogeneity bias so alternative variables or methods could address this limitation also the takeoff may be related to additional variables such as relative advantage over substitutes and the presence of complementary products finally examination of sales from takeoff to their leveling off could be done with an integrated model of takeoff and sales growth or with the hazard model we propose generalizations about this period of sales growth could also be of tremendous importance to managers of new products

simple tests of distributional effects on macroeconomic equations the presence of distributional effects in macroeconomic equations is shown to coincide with nonlinearity in micro behavioral relationships parameters estimated with aggregate data as in representative agent models contain distributional biases that are not measurable using aggregate data alone tests for distributional effects and other measures of the extent of aggregation problems are derived using distributional data observed over time significant distributional effects are noted for a model of annual aggregate u s commodity expenditure data a static model that accommodates individual heterogeneity is found to be statistically equivalent to a simply dynamic model that accommodates first order autocorrelation

a diffusion model incorporating product benefits price income and information we start by assuming that a major benefit of many new durable products such as dishwashers and microwave ovens is time savings others such as vcrs also enhance the value of our leisure time using a household production framework we demonstrate that a utility maximizing individual will have a reservation price for the product which is a function of the product benefits and his wage rate by assuming that the wage rate has an extreme value distribution across the population we are able to derive for the aggregate process an income price dependent logistic adoption equation we then allow for the possibility that certain eligible consumers may delay their purchase of the product because they are unaware that it exists are suspicious of its quality or expect its price to fall unawareness uncertainty and hope for further price declines are assumed to decrease with the increase in the number of previous adopters the resulting diffusion model has the property that the product life cycle phenomenon can be explained jointly or separately by the income price process and the awareness uncertainty expectations process using data on household income on durable penetration within different income classes and on first purchase sales the aggregate diffusion model and its premises are tested and supported it is found that both the income price and awareness uncertainty expectations processes are at work however the dependence of the awareness uncertainty expectations delay process on the number of previous adopters e g word of mouth type effect exists only in certain product categories and is usually relatively weak it is demonstrated that if the word of mouth type effects are weak a price skimming strategy is optimal for a monopolist and also is likely to be implemented by oligopolists the sales forecasting implications of the model also are pursued

determinants of residential space heating expenditures in great britain in great britain several policy measures have been implemented in order to increase energy efficiency and reduce carbon emissions in the domestic sector this could for example be achieved by improving space heating efficiency and thus decreasing heating expenditure however in order to efficiently design and implement such policy measures a better understanding of the determinants affecting heating expenditure is needed in this paper we examine the following determinants socio economic factors building characteristics heating technologies and weather conditions in contrast to most other studies we use panel data to investigate household demand for heating in great britain our data sample is the result of an annual set of interviews with more than 5000 households starting in 1991 and ending in 2005 the sample represents a total of 64 000 observations over the fifteen year period our aim is to derive price and income elasticities both for britain as a whole and for different types of household our results suggest that differences exist between owner occupied and renter households these households react differently to changes in income and prices our results also imply that a number of socio economic criteria have a significant influence on heating expenditure independently of the fuel used for heating understanding the impacts of different factors on heating expenditure and impact differences between types of household is helpful in designing target oriented policy measures

are technology intensive industries more dynamically competitive no and yes a substantial body of research in management and related public policy fields concludes that recent decades saw greater dynamic competition throughout technology intensive ti industries with widespread steady increase in ti industry and business performance instability as key implications we set this conclusion within a broader framework of purportedly increasing dynamic competition among ti industry businesses and then test for evidence of its performance implications in a large sample of u s businesses operating from 1978 to 1997 in 31 industries with high average research and development expenditure to sales ratios in the full sample we find no evidence of sustained increase in ti industry and business performance instability nor any evidence of significant cross sectional differences in performance instability between ti and non ti industry businesses over these 20 years for a small segment of very high performing businesses from ti industries however we do uncover evidence of declining performance stability and cross sectional differences in performance stability we conclude that assumptions of widespread long term increase in dynamic competition lack robust evidentiary support it is premature to embrace and apply broadly new theoretical perspectives management practices and public policies to ti industry competitive dynamics that may be slightly changed since the late 1970s yet there may be increasing dynamic competition among very high performing ti industry businesses in that small realm careful application of new perspectives practices and policies may lead to deeper insight on business behavior and performance in ti industries

estimating the performance effects of business groups in emerging markets business groups confederations of legally independent firms are ubiquitous in emerging economies yet very little is known about their effects on the performance of affiliated firms we conceive of business groups as responses to market failures and high transaction costs in doing so we develop hypotheses about the effects of group affiliation on firm profitability affiliation could either boost or depress firm profitability and members of a group are likely to earn rates of return similar to other members of the same group using a unique data set compiled largely from local sources we test for these effects in 14 emerging markets argentina brazil chile india indonesia israel mexico peru the philippines south africa south korea taiwan thailand and turkey we find evidence that business groups indeed affect the broad patterns of economic performance in 12 of the markets we examine group affiliation appears to have as profound an effect on profitability as does industry membership yet strategy scholars have a much clearer grasp of industries than of groups moreover membership in a group raises the profitability of the average group member in several of the markets we examine this runs contrary to the wisdom conventional in advanced economies that unrelated diversification depresses profitability overall our findings suggest that the roots of sustained differences in profitability may vary across institutional contexts conclusions drawn in one context may well not apply to another copyright 2001 john wiley sons ltd

innovation diffusion in the presence of supply restrictions innovation diffusion models are developed to represent the spread of a new product from its manufacturers to its ultimate users in the marketplace however the growth of a new product can be retarded by supply restrictions such as the unavailability of the product due to limitations on the production capacity or difficulties encountered in setting up distribution systems in the presence of supply restrictions diffusion models must be developed to capture the dynamics of supply restrictions and to allow management to evaluate the impact of such supply restrictions on the growth of a new product in the market place based on the bass innovation diffusion model the objective of this paper is to suggest a parsimonious diffusion model that integrates the demand side dynamics with the supply side restrictions the sensitivity of innovation diffusion patterns in the presence of supply restrictions is examined an application examining the diffusion of new telephones in israel is documented to illustrate the usefulness of the proposed model

mixing behavior in cross country diffusion diffusion models represent one of the key successes in marketing science we understand a great deal about what influences and shapes within country diffusion patterns however we understand far less about what influences and shapes cross country or inter country diffusion patterns clearly for firms operating in a truly global environment understanding to what extent prior adoption in one country affects current and consequently future adoption in another country can be an important consideration further understanding how the pattern of interaction across countries impacts the diffusion process can have profound implications for product launch strategies for new durable products in this paper we address the extent to which prior adoption of a new product in one country affects adoption in other countries in particular we investigate the importance of the pattern of interaction what we call mixing across countries in the context of a new product diffusion model more specifically mixing refers to the pattern of communication within and across countries for example do italians communicate only with other italians or do they influence consumers in other countries understanding and empirically estimating how these mixing patterns across countries influence the subsequent diffusion process is the central research objective of this paper while previous research in marketing addressing cross country diffusion has assumed very specific forms of cross country interaction the present study develops and estimates a flexible form of mixing that allows for the simultaneous estimation of mixing patterns across multiple countries in particular we examine the effect of mixing behavior across populations on new product adoption viewing mixing as occurring across a continuum with segregation no mixing at one end and random mixing at the other intermediate forms of mixing lie along this continuum and are called bernoulli mixing in order to produce generalizable results we obtained sales data on four product categories in the european community ec nations vcrs from 1977 1990 microwave ovens 1975 1990 compact disc players 1984 1993 and home computers 1981 1991 for each product data were collected for 10 ec nations great britain germany france italy spain belgium denmark netherlands sweden and austria a diffusion model that incorporates cross country prior adoption cross country mixing patterns and individual country covariates was estimated simultaneously across the 10 countries for each of the four products on the basis of the empirical results we conclude that mixing behavior across segments is an important consideration in new product diffusion specifically the observed pattern of mixing and the strength of cross segment influences are important considerations in allocating the marketing mix during product introduction stages the practical implication of mixing behavior is that if one wishes to understand diffusion in belgium for example it is important to not only know the diffusion parameters in belgium but also those in other ec nations accordingly these results should be of interest to managers responsible for coordinating new product launches across countries and to researchers interested in investigating cross country diffusion issues as an example of the strategic implications of the results we note that under bernoulli mixing future country launches will benefit not only from prior adoption in countries with high overall contact rates but in particular from countries with high rates of contact with other countries although there is some variance across products in general germany france italy and spain are the most gregarious as measured by the rate of contact the results suggest that a strategy of first focusing on germany france italy and spain will maximize adoption in subsequent countries each of these countries tends to have a higher percentage of its contacts with individuals internal to its borders as well as with other countries this suggests that these countries would have relatively quick adoption internally while having a strong influence externally further for countries such as denmark netherlands austria and sweden a higher percentage of their contacts are derived from outside their borders thus seeding the diffusion process by introducing first in germany france italy and spain would benefit later adoption in countries such as denmark netherlands austria and sweden although the strength of the individual country influence varies from product to product this result is generally consistent across the four products

social contagion and income heterogeneity in new product diffusion a meta analytic test standard diffusion models capture social contagion only coarsely and do not allow one to operationalize different contagion mechanisms moreover there is increasing skepticism about the importance of contagion and as has long been known s shaped diffusion curves can also result from heterogeneity in the propensity to adopt we present hypotheses about conditions under which specific contagion mechanisms and income heterogeneity are more pronounced and test these hypotheses using a meta analysis of the q p ratio in applications of the bass diffusion model the ratio is positively associated with the gini index of income inequality in a country supporting the heterogeneity in thresholds interpretation the ratio also varies as predicted by the gamma shifted gompertz diffusion model but the evidence vanishes after controlling for national culture as to contagion the q p ratio varies with the four hofstede dimensions of national culture for three of them in a direction consistent with the social contagion interpretation furthermore products with competing standards have a higher q p ratio which is again consistent with the social contagion interpretation finally we find effects of national culture only for products without competing standards suggesting that technological effects and culturally moderated social contagion effects might not operate independently from each other

global takeoff of new products culture wealth or vanishing differences the authors study the takeoff of 16 new products across 31 countries 430 categories to analyze how and why takeoff varies across products and countries they test the effect of 12 hypothesized drivers of takeoff using a parametric hazard model the authors find that the average time to takeoff varies substantially between developed and developing countries between work and fun products across cultural clusters and over calendar time products take off fastest in japan and norway followed by other nordic countries the united states and some countries of midwestern europe takeoff is driven by culture and wealth plus product class product vintage and prior takeoff most importantly time to takeoff is shortening over time and takeoff is converging across countries the authors discuss the implications of these findings

regional impact of changes in disposable income on spanish electricity demand a spatial econometric analysis this paper presents an empirical analysis of residential electricity demand considering the existence of spatial effects this analysis has been performed using aggregate panel data at the province level for 46 spanish provinces for the period from 2001 to 2010 for this purpose we estimated a log log demand equation using a spatial autoregressive model with autoregressive disturbances sarar the purpose of this empirical analysis is to determine the influence of price income and spatial spillovers on residential electricity demand in spain we are particularly interested in analyzing the impact of household disposable income variation across provinces observed during the economic crisis period 2009 2010 the estimation results show relatively low income elasticity and an inelastic demand to prices furthermore the results show the presence of spatial effects in spanish residential electricity consumption

anticipated vs actual synergy in merger partner selection and post merger innovation past research has primarily focused on what happens after a merger this research attempts to determine whether anticipated benefits from the merger actually accrue we characterize the effects of observed variables on whether pairs of firms merge vis a vis roommate matching and then link these factors to post merger innovation i e number of patents we jointly estimate the two models using markov chain monte carlo methods with a unique panel data set of 1 979 mergers between 4 444 firms across industries and countries from 1992 to 2008 we find that similarity in national culture and technical knowledge has a positive effect on partner selection and post merger innovation anticipated synergy from subindustry similarity however is not realized in post merger innovation furthermore some key synergy sources are unanticipated when selecting a merger partner for example financial synergy from higher total assets and complementarity in total assets and debt leverage as well as knowledge synergy fr

residential demand for fuelwood this is the first national microbased study of residential demand for wood as fuel the data are from the us department of energy residential energy consumption survey the model employs a somewhat unique interaction dummy for price that allows the simultaneity problem to be adjusted for in a 2sls format and then the interaction term to be calculated and entered in the second stage results are compared with elasticity estimates derived from the same data set for the four other main residential fuels wood has a price elasticity of 0 421 for main users

modeling multinational diffusion patterns an efficient methodology the objective of this study is to develop an econometric model for the diffusion of innovations at the individual country level but which also allows the parameters of the process to differ systematically across countries the conceptualization rests on behavioral and spatial theories of diffusion and extends the domain to international markets the cross national model of innovation diffusion which is developed highlights substantive differences and similarities among international markets it also provides estimates for the diffusion parameters even for countries where sales data are not available thereby yielding some insights into the nature of the expected diffusion pattern in these countries prior to market entry

demand for space heating in apartment blocks measuring effects of policy measures aiming at reducing energy consumption abstract panel data covering the period 1984 1995 on energy consumption and technical characteristics of apartment blocks from denmark are analysed in order to measure effects of policy measures aimed at reducing the consumption of energy for space heating results indicate that building regulations have been important in reducing energy consumption in new buildings furthermore conditional price responses are estimated to be relatively small or non existent indicating small short run effects of fuel taxes on energy consumption in apartment blocks finally a consultancy scheme implemented with the purpose of improving knowledge about the potential for energy savings is found to have had moderate effects

corporate and industry effects on business unit competitive position we partition the variances of market shares which we use as surrogates for competitive position of the business units of all public manufacturing companies available in the trinet data base into industry factors corporate parent specific factors and business unit specific factors our results differ somewhat from rumelt s 1991 which decomposed variances in profitability we find that corporate parent effects on market share are considerably greater than zero when lines of business are defined more narrowly when small business units are included and when firms are medium sized our results suggest that the relative importance of corporate industry and business unit effects depends on the types of criteria such as the level of industry aggregation whether small business units are included and firm size that are used to construct samples copyright 2000 john wiley sons ltd

dynamic capabilities what are they this paper focuses on dynamic capabilities and more generally the resource based view of the firm we argue that dynamic capabilities are a set of specific and identifiable processes such as product development strategic decision making and alliancing they are neither vague nor tautological although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence they have significant commonalities across firms popularly termed best practice this suggests that they are more homogeneous fungible equifinal and substitutable than is usually assumed in moderately dynamic markets dynamic capabilities resemble the traditional conception of routines they are detailed analytic stable processes with predictable outcomes in contrast in high velocity markets they are simple highly experiential and fragile processes with unpredictable outcomes finally well known learning mechanisms guide the evolution of dynamic capabilities in moderately dynamic markets the evolutionary emphasis is on variation in high velocity markets it is on selection at the level of rbv we conclude that traditional rbv misidentifies the locus of long term competitive advantage in dynamic markets overemphasizes the strategic logic of leverage and reaches a boundary condition in high velocity markets copyright 2000 john wiley sons ltd

residential energy demand additional empirical evidence by minority household type abstract in a number of recent studies household level data for specific urban areas or national household level micro data have been used to estimate price and income elasticities of energy demand none of this literature however provides us with elasticity estimates by minority majority household type the main focus of this paper is to measure the responsiveness of the quantity of electricity and total energy demanded for black hispanis and majority households to price and income price and income elasticities are compared among these groups over the short and long term a variable elasticity demand model is estimated the elasticities are allowed to vary with respect to non price and income variables the price elasticities of demand vary with heating and cooling degree days and the income elasticities with the number of household members mean estimates were calculated over the respective samples findings indicate that demand for electricity is relatively price inelastic irrespective of household group however blacks are more sensitive to variations in the short run to price than hispanic and majority households in the long run blacks are also more sensitive to price changes but the magnitude of the response to price changes in the long run relative to the short run is larger for hispanics and majority households respectively than for blacks

residential energy demand in the united states analysis using static and dynamic approaches abstract the residential sector is the main consumer of energy in the united states and reducing energy consumption is an important goal for policymakers in each state to know how reducing residential energy demand could be achieved this study develops a set of static and dynamic models to investigate and identify the impact of socio economic and demographic characteristics building age energy prices and weather conditions on residential energy demand at the state level from 2005 to 2013 next this study proposes two alternative scenarios to reduce residential energy demand based on the most precise model for every 10 000 dollars of per capita income in each state 1 increasing residential electricity price by 1 cent per kw h and 2 decreasing average building age by 1 in the first scenario the findings indicate that annual residential electricity demand would decrease by 7 3 on average with the highest reductions in washington 11 9 north dakota 10 9 and idaho 9 7 in the second scenario residential gas demand would decrease by an average of 15 8 annually with the highest reduction in connecticut 33 2 followed by new york 33 0 and massachusetts 30 7 these proposed scenarios assist policymakers in optimizing decisions and investments to reduce residential energy consumption

the role of risk and trust attitudes in explaining residential energy demand evidence from the united kingdom recent research into the determinants of household energy consumption has aimed to incorporate findings from economics sociology and psychology in order to obtain a more comprehensive understanding of the factors determining energy demand the current paper contributes to this nascent stream of literature by studying the relationship between risk attitudes trust propensity and energy consumption at the household level drawing on the british household panel survey a well known data set in the context of energy studies i show that trust is negatively correlated with household energy demand while higher risk tolerance leads to increases in residential energy use potential explanations for these findings are investigated suggesting that risk preferences may be related with overall appliance stock and the size of the rebound effect

environmental regulation of households an empirical review of economic and psychological factors abstract the literature on sustainable consumption and environmental regulation of household behavior is dominated by conceptual and normative approaches as a result many suggestions lack a firm empirical basis to overcome this deficiency econometric studies in three areas of environmentally relevant activities of households are reviewed residential use of energy generation of solid waste and recycling and residential use of water next to price and income elasticities attention is devoted to individual socio economic features and psychological factors such as attitudes knowledge perceptions and values potential psychological determinants and related insights are further examined by discussing a range of representative and illustrative statistical psychological studies of environmental behavior one important general finding is that there are very few empirical studies that systematically combine socio economic and psychological determinants a range of insights for environmental policy is derived and research recommendations are offered

a capability based view of competitive heterogeneity the question of how firms differ is paramount to strategy scholars this question has motivated empirical research on the factors influencing performance differences among close competitors it also has motivated work on factors that increase or decrease the mean performance of firms in an industry theories about resources and capabilities tend to dominate discussions of heterogeneity in performance and superior performance yet the strategy field lacks a cumulative body of empirical work showing how firms differ this article derives conclusions and questions from empirical work on capabilities we then discuss work that complements but lies beyond the boundaries of traditional capabilities research we conclude by suggesting approaches to and areas of future work

the microeconometric approach to modelling energy demand some results for uk households the paper is concerned with the empirical modeling of domestic demand for energy at the level of the individual household a model of household energy expenditures and energy using durable ownership is described estimation takes place using a pooled sample of households drawn from the repeated cross sections of the annual family expenditure survey fes price and income elasticities are found to be highly dependent on individual household characteristics type of house tenure energy using durable ownership and outside temperature finally the results are placed in a policy relevant context copyright 1991 by oxford university press

how much does subnational region matter to foreign subsidiary performance evidence from fortune global 500 corporations investment in china what explains the heterogeneity of foreign subsidiary performance previous studies have emphasized the importance of industry corporate parent and home country effects on the variation of foreign subsidiary performance building on recent international business and economic geography research this study examines the extent to which subnational region effects can also explain such performance variation we empirically decompose the variance of the performance of fortune global 500 corporations subsidiaries in china during 1998 2006 results show that not only are subnational region effects statistically significant in explaining the variation of subsidiary performance but their interactions with industry corporate parent and home country effects are also significant and economically important we further show that subnational region effects tend to be stronger in the period prior to china s wto accession and in the country s less developed subnational regions our findings highlight the importance of considering both the direct and indirect roles of subnational region in shaping firms strategy and performance in international business research

growing growing gone cascades diffusion and turning points in the product life cycle research on the product life cycle plc has focused primarily on the role of diffusion this study takes a broader theoretical perspective on the plc by incorporating informational cascades and developing and testing many new hypotheses based on this theory on average across 30 product categories the authors find that i new consumer durables have a typical pattern of rapid growth of 45 per year over 8 years ii this period of growth is followed by a slowdown when sales decline by 15 and stay below those of the previous peak for 5 years iii slowdown occurs at 34 population penetration and about 50 of ultimate market penetration iv products with large sales increases at takeoff tend to have larger sales declines at slowdown v leisure enhancing products tend to have higher growth rates and shorter growth stages than nonleisure enhancing products time saving products tend to have lower growth rates and longer growth stages than nontime saving products vi lower probability of slowdown is associated with steeper price reductions lower penetration and higher economic growth vii a hazard model can provide reasonable predictions of the slowdown as early as the takeoff the authors discuss the implications of these findings

do markets differ much this essay reports the results of a crosssection study of differences in accounting profitability that sheds light on some basic controversies in industrial economics most previous cross section studies in this field have been concerned with testing hypotheses about structural coefficients in models meant to apply to essentially all markets as we have learned more about the difficulties of constructing such general models and of performing tests on their structural parameters properly structural cross section analysis has fallen out of fashion in contrast to most of the cross section literature the analysis reported here is fundamentally descriptive it does not attempt directly to estimate or to test hypotheses about structural parameters i hope to show by example that one can perform illuminating analysis of cross section data without a host of controversial maintained hypotheses cross section data can yield interesting stylized facts to guide both general theorizing and empirical analysis of specific industries even if they cannot easily support full blown structural estimation one can view the sort of search for stylized facts conducted here as either a replacement for or an input to interindustry structural estimation depending on one s feeling about the long run potential of that research approach this study also departs from much of the cross section literature by being fundamentally concerned with the importance of various effects not just with coefficient signs and t statistics in particular this essay provides estimates of the relative importance of firm market and market share differences in the determination of business unit divisional profitability in u s manufacturing using 1975 data from the line of business program of the u s federal trade commission ftc i find support neither for the existence of firm effects nor for the importance of market share effects moreover while industry effects apparently exist and are important they appear to be negatively correlated with seller concentration in these data section i relates firm market and share effects to current issues and controversies in industrial economics and thus supplies the motivation for our empirical analysis the remainder of the essay treats the data and

empirics on the long run effects of building energy codes in the housing market we study the effectiveness of building energy codes taking a long run perspective the focus is on regulation s impact on energy demand in both high and low quality residences in other words the diffusion and the entry of green buildings in the housing market we develop a measure for regulation intensity and apply this to a panel error correction regression model for energy requirements of a large sample of german apartment houses built between 1950 and 2005 we show that regulation is effective in saving energy in particular regulation pushes investors in the low quality housing market segment toward the technological frontier indirectly it also affects the high quality segment jel q41 r52

what do we learn about consumer demand patterns from micro data the aim of this paper is to assess the importance of using micro level data in the econometric analysis of consumer demand to do this we utilize a time series of repeated cross sections covering some 4 000 households in each of 15 years employing a number of different aggregation procedures we conclude that aggregate data alone are unlikely to produce reliable estimates of structural price and income coefficients however once certain aggregation factors as well as trend and seasonal components are included an aggregate model is not necessarily outperformed across all demand equations in terms of forecasting ability jel d12 c52 c31 the purpose of this paper is to develop a complete consumer demand system based on a time series of individual household data and to use it to measure the biases introduced into the study of consumer de mand behavior when aggregate data are used in place of the appropriate microeco nomic data we assess the suitability of ag gregate data through the impact on income and price elasticities and by evaluating the ability of both micro and aggregate based models to forecast aggregate consumer de mand the biases introduced by the use of aggregate data depend upon the way that household characteristics interact with in come and price effects and on departures of demand systems from linearity we explore the structure of microeconomic demand sys tems and the role of household characteris tics in the behavior of consumer demand both for the light this may shed on the pattern of future demands and for the im plications this behavior has for issues of aggregation consumer demand patterns typically found in micro data sets vary considerably across households with different household characteristics and with different levels of income we model this variability by making intercept and slope parameters in the budget share equations of our demand sys tem depend on household characteristics and by allowing for nonlinear total log expenditure terms in fact in theory consistent demand systems it is total ex penditure rather than disposable income that is allocated across goods we find that this general framework leads to a well specified data coherent demand system which is a quadratic extension of the popu lar almost ideal model of angus s deaton and john muellbauer 1980 the micro level estimates are shown to be sensitive to the treatment of endogeneity of total expen diture and to the specification of interaction terms with household characteristics in ad dition this specification is also shown to possess many attractive features for the evaluation of aggregate models

residential demand for liquid petroleum gas abstract this is the first micro based study of residential demand for liquid petroleum gas lpg the data are from doe s residential energy consumption survey results are compared with elasticity estimates derived from the same data set for the three other main residential fuels lpg has a price elasticity for space and water heating combined of 1 3 income elasticity is 0 207

patterns in residential gas and electricity consumption an econometric analysis in this article we investigate individual consumption data of natural gas and electricity using modified multiple regression techniques because a subset of households have zero gas consumption the purpose of the study is to ask two empirical questions 1 how can we quantify potential energy conservation from increasing gas availability 2 is it appropriate to estimate and compare electricity demands of gas users and nonusers by the same regression function we began our investigation based on the methodology of generalized tobit models our empirical results indicate that the probit equation for gas connection is exogenous to the amount of potential energy consumption to answer question 2 we obtain heteroscedasticity efficient estimates of the electricity demand equations by a nearest neighbor estimator to deal with heteroscedasticity of unknown form the prediction of energy conservation is that electricity demand could be reduced by 2 473 57 kilowatt hours a year per household if a gas connection

the relative influence of industry and corporation on business segment performance an alternative estimate rumelt s 1991 widely cited paper presents estimates of the relative influence of industry corporate business unit and other influences on business unit profitability he finds corporations explain almost none of the variability in business unit profitability using a simultaneous equation model we provide alternative estimates of the influence of industry and corporation on business unit performance we find that both corporations and industries influence business unit profitability but corporations have the larger influence copyright 1999 john wiley sons ltd