competition cooperation and innovation organizational arrangements for regimes of rapid technological progress abstract discussions of the link between firm size and innovation are outmoded because the boundaries of the firm have become fuzzy in recent decades strategic alliances constellations of bilateral agreements among firms are increasingly necessary to support innovative activities such alliances can facilitate complex coordination beyond what the price system can accomplish while avoiding the dysfunctional properties sometimes associated with hierarchy antitrust law and competition policy need to recognize that these new organizational forms are often the functional antithesis of cartels though they may have certain structural similarities a more complete understanding of bilateral contracts and agreements ought to reveal when and how cooperation can support rather than impede innovation and competition

creation adoption and diffusion of innovations by subsidiaries of multinational corporations this paper reports some of the findings of a multi phased and multi method study on the organizational attributes that facilitate creation adoption and diffusion of innovations by subsidiaries of multinational companies comparison of results obtained through case research in nine companies multiple respondent questionnaire surveys in three companies and a single respondent survey in 66 north american and european multinationals reveal unambiguous and positive impacts of normative integration through organizational socialization and dense intra and inter unit communication on an mnc subsidiary s ability to contribute to the different innovation tasks the findings are less consistent with regard to the effects of local resources and autonomy and it appears that the influences of these two attributes are strongly mediated by the levels of normative integration and organizational communication

urban influence on costs of production in the corn belt this article determines the relative technical efficiency of rural and urban influenced crop livestock enterprises in the corn belt farmers in urban influenced locations are less technically efficient than farmers in rural locations during 1998 2000 stochastic production frontier procedures indicate that a 10 increase in urban influence leads to a close to 4 decrease in technical efficiency the most successful urban influenced farms have controlled costs as effectively as rural farms they have tended to de emphasize that nondairy livestock activities particularly beef and hogs do not rely extensively on off farm income and have relatively large less residential lifestyle operations compared to less successful urban influenced farmers however our statistical analysis clearly bears out the refrain in popular literature that urban proximity raises the cost for and decreases the viability of traditional farms

urban sprawl and farmland prices a theoretical model of farmland valuation is developed to explicitly account for three effects of urban sprawl conversion of farmland to urban uses effect on agricultural returns and speculative effect as represented by farmland conversion risk this model is estimated using county level data in the continental united states evidence is found for all three effects of urban sprawl on farmland values counties more accessible to major urban centers have higher net agricultural returns subsidiary evidence supports that the latter effect may be attributed to survival of or conversion to high valued agriculture around urban centers

entry mode organizational learning and r d in foreign affiliates evidence from japanese firms this paper develops hypotheses concerning the role of entry mode and experience based organizational learning as determinants of the r d intensity of foreign affiliates and tests these hypotheses on a sample of 420 japanese manufacturing affiliates abroad entry mode has a major impact on r d activities the r d intensities of acquired affiliates substantially exceed those in wholly owned greenfield affiliates while the r d intensities of minority owned ventures are higher if japanese parent firms lack strong r d capabilities at home for greenfield operations support is found for an incremental growth pattern of foreign r d as a function of organizational learning and affiliate capability building the results are consistent with the view that part of the explanation for japanese firms relative lack of involvement in overseas r d must be sought in their status as latecomers in the establishment of overseas manufacturing networks at the same time a number of japanese firms have actively used foreign acquisitions and joint ventures to gain access to overseas technology and to establish overseas r d capabilities at a faster pace copyright 2002 john wiley sons ltd

the management of multinational r d a neglected topic in international business research despite the growing involvement of multinational firms in foreign based r d during the past fifteen years little research has been done on why and how firms internationalize their r d and what effects it might have on firm competitiveness the present paper calls attention to this neglect and seeks to advance the management of multinational r d as an area of study for international business scholars to this end the paper first examines the key contributing factors to increased foreign r d investments among multinationals it then reviews the research literature to find out what we presently know about the management of multinational r d finally a research agenda is proposed to provide a foundation and stimulus for future investigations seven research directions are recommended with an emphasis on interdisciplinary inquiry and a focus on issues that have both theoretical and practical significance

foreign influence control and indirect ownership implications for productivity spillovers how does the presence of controlled foreign firms affect the productivity of domestic firms in the same industry we revisit the historical distinction between control and influence by the foreign owner and define controlled foreign firms as those with a foreign ultimate owner holding 50 or more of voting shares connecting insights from new internalization theory with knowledge based views of the mne we posit that controlled foreign firms will generate larger productivity spillovers than non controlled foreign firms we use a firm level panel dataset of 575 844 manufacturing firms 2 343 495 observations across 20 european countries to test our proposition we pay careful attention to how firms are categorized as foreign taking into account both direct and indirect ownership links allowing for indirect ownership turns out to be pivotal there are just as many indirectly controlled foreign firms as foreign firms captured with direct ownership data we find positive horizontal spillovers from controlled foreign firms and zero spillovers from non controlled foreign firms interestingly the strongest positive spillovers come from the indirectly controlled foreign firms the implications of our study extend beyond productivity spillovers to areas such as cross border m as joint ventures mne strategies of legitimation and corporate groups

housing market bust and farmland values identifying the changing influence of proximity to urban centers this article estimates the impact of the 2007 2008 residential housing market bust on farmland values using parcel level farmland sales data from 2001 2010 for a 50 county region under urbanization pressure in western ohio hedonic model estimates reveal that farmland was not immune to the residential housing bust the portion of farmland value attributable to proximity to urban areas was almost cut in half shortly after the bust in 2009 2010 nonetheless total farmland prices remained relatively stable in the 2000s likely due to increased demand for agricultural commodities our results are robust to different assumptions about the structure of the unobserved spatial correlation

the effects of potential land development on agricultural land prices abstract we conduct a national scale analysis of the determinants of agricultural land values the theoretical basis for the study is a spatial city model with stochastic returns to future land development the empirical model of agricultural land prices is estimated with a cross section on approximately three thousand counties in the contiguous us the results provide evidence that option values associated with irreversible and uncertain land development are capitalized into current farmland values for each county we decompose the current agricultural land value into components measuring rents from agricultural production and rents from future land development

the fischler reform of the common agricultural policy and agricultural land prices based on 7 300 agricultural land sales transactions we estimate the effect of the 2003 reform of the e u common agricultural policy on land prices as opposed to the main body of the literature on agricultural land values we do not start from a demand oriented net present value approach or hedonic pricing method but derive our reduced form pricing equation from a spatial land sales market model our empirical model accounts for spatial dependence and endogeneity of explanatory variables a reduction of payments by 50 ha would decrease land sales prices by 445 ha before and by 984 ha after the reform jel q15 q18

the impact of order and mode of market entry on profitability and market share market share performance and profitability of overseas business activities has long been an important issue in international business in this study we explore the impact of order and mode of market entry into an overseas market we find that early entrants have significantly higher market shares and profitability than late followers we also find that equity joint ventures have a higher profitability than either wholly owned operations or contractual joint ventures a significant interaction exists between order and mode of market entry as expected firm efficiency and size affect the performance of firms these results are based on the business activities of a sample of 14 466 foreign firms in china in 1995

partner contributions as predictors of equity share in international joint ventures the type of expertise that a company contributes to a joint venture may affect the amount of equity that it owns this research observes the ownership patterns associated with four common combinations of partner expertise in international joint ventures the results rank company assets with respect to the contributor s ability to negotiate majority ownership in the original joint venture contract and that company s tendency to buy up equity from the partner later on

accounting for endogeneity when assessing strategy performance does entry mode choice affect fdi survival firms choose strategies based on their attributes and industry conditions therefore strategy choice is endogenous and self selected empirical models that do not account for this and regress performance measures on strategy choice variables are potentially misspecified and their conclusions incorrect i highlight how self selection on hard to measure or unobservable characteristics can bias strategy performance estimates and recommend an econometric technique that has been developed to account for this effect although this concern applies to a wide range of strategy questions to demonstrate its effect i empirically examine if entry mode choice acquisition versus greenfield influences foreign direct investment survival in specifications that do not account for self selection i find that greenfield entries have survival advantages compared to acquisitions this confirms previous findings however the significance of this effect disappears once i account for self selection of entry mode in the empirical estimates the results confirm that estimates from models that do not account for self selection of strategy choice can lead to incorrect or misleading conclusions

licensee technological potential and exclusive rights in international licensing a multilevel model granting of exclusive rights is an important consideration for firms using licensing as a mode of entry into foreign markets as exclusive contracts reduce licensors flexibility in a given market during the term of the agreement by granting exclusivity to a licensee with greater technological potential the exchange partners can increase the potential transactional value of the licensing agreement at the same time a licensee with strong technological potential will increase the threat of transactional hazards due to underinvestment and rent appropriation in this paper we develop and empirically test a model that evaluates the balancing of transactional value and transaction costs in exclusive licensing in particular we identify the conditions under which exclusive contracts are likely to be granted to foreign licensees with strong technological potential empirical results from a multilevel model based on 375 international licensing agreements of us firms in high technology industries during 1995 2008 show that licensees with a stronger technological potential are more likely to be granted exclusive rights in countries with strong intellectual property rights protection and in industries with a high rate of technological change but are less likely to be granted exclusive rights when there is a high degree of overlap between licensor and licensee products

explaining ijv survival in a transitional economy through social exchange and knowledge based perspectives in this study we combine social exchange and knowledge based perspectives to develop a general path model of ijv survival we further refine our expectations by considering the transitional economic context of our study and the somewhat unique managerial values resulting from the legacy of marxist ideology results from structural equation modeling suggest that an imbalance in the management control structure between the parents leads to parental conflict and an increased likelihood of ijv failure an imbalance in the ownership control structure however had no influence on conflict or survival in general support from the foreign parent is positively related to ijv learning and ijv survival however higher levels of technical support provided by the foreign parent to the ijv reduced the level of parental conflict whereas management support had no effect on conflict our results suggest some dilemmas for firms pursuing ijvs in transitional economies although the foreign parent often contributes critical resources to the ijv providing it with bargaining power and a high level of influence an imbalance in management control between the partners may ultimately be detrimental to ijv survival copyright 2000 john wiley sons ltd

the impact of r d investment on productivity new evidence using linked r d lrd data the impact of r d investment on productivity new evidence using linked r d lrd data this paper uses confidential census longitudinal microdata to examine the association between r d and productivity for the period 1972 1985 these data allow for significant improvements in measurement and model specification yielding more precise estimates of the returns to r d our results confirm the findings of existing studies 1 positive returns to r d investment 2 higher returns to company financed research 3 a productivity premium on basic research these results are robust to adjustments for influential outliers also our evidence suggests that the return to company financed r d is an increasing function of firm size i introduction robert solow s studies in the late 1950s dramatically changed perceptions of the sources of economic growth until this time the commonly held view was that improvements in economic welfare were achieved primarily through the use of more inputs in particular capital input however solow 1957 reported that only 10 percent of the twofold rise in u s per capita output during the years 1909 1949 was due to growth in the capital labor ratio the remainder was attributed to more efficient use of inputs or technological change solow also established a framework for estimating technological change a productivity residual or a measure of changes in output that could not be explained by changes in input use the solow residual in modified form has become virtually synonymous with the measurement of total factor productivity tfp growth jorgenson and griliches 1967 demonstrated that under the assumptions of constant returns to scale and competitive factor pricing changes in total factor productivity measure shifts in a production function rather than treat technological change as exogenous or manna from heaven many economists have explored its determinants r d investment is generally regarded as having a strong impact on productivity growth empirical analysis of the r d productivity connection has often been based on estimation of reduced form equations derived from the r d capital stock model griliches 1979 which extends the solow model to include the stock of technical knowledge or knowledge capital as a factor of production in addition to the standard factors of production physical capital labor intermediate materials and energy if the rate of depreciation of knowledge capital is assumed to be negligible tfp growth dtfp is a function of the intensity of r d investment rdint which is usually measured as the ratio of r d expenditure to sales 1 dtf p sub t alpha beta rdin t sub t u sub t where u sub t is a classical disturbance term the coefficient on r d intensity beta is interpreted as both the marginal product of knowledge capital and the rate of return to r d investment 1 estimates of beta at the company or line of business level are interpreted as measures of the private rate of return to r d or those that accrue to the firm or its investors due to incomplete appropriability or other factors this return may not equal the social return to this activity most empirical studies especially those based on aggregate and sectoral data have found evidence of a strong positive correlation between tfp growth and r d investment however results using firm level data have been mixed the finding that these two variables are uncorrelated is cause for concern because it implies that firms may not be able to earn significant returns on their investment in r d making them less likely to undertake this investment in the future even if it is socially desirable for them to do so we believe that it is important to reestimate this relationship because it is highly likely that existing firm level studies have been based on measures of tfp that are crude imprecise and unrepresentative

a theory of rational addiction we develop a theory of rational addiction in which rationality means a consistent plan to maximize utility over time strong addiction to a good requires a big effect of past consumption of the good on current consumption such powerful complementarities cause some steady states to be unstable they are an important part of our analysis because even small deviations from the consumption at an unstable steady state can lead to large cumulative rises over time in addictive consumption or to rapid falls in consumption to abstention our theory also implies that cold turkey is used to end strong addictions that addicts often go on binges that addicts respond more to permanent than to temporary changes in prices of addictive goods and that anxiety and tensions can precipitate an addiction

the effect of domestic uncertainty on the real options value of international investments scholars have noted that international investments have the potential to provide firms with real options value under uncertainty to assess this issue prior studies have tended to focus primarily on exchange rate volatility although multinational firms face other types of uncertainty as well including those stemming from their domestic operating environment the role of such uncertainty for firms flexibility needs has not been previously considered in this study we compare the influence of both domestic economic uncertainty and exchange rate uncertainty on the real option value of international investments of korean firms over 16 years of varying uncertainty we find evidence that an international investment network characterized by greater breadth and lower depth is associated with higher firm value under domestic economic uncertainty exchange rate uncertainty however was not found to play a role in firms need for flexibility the results suggest that firms are able to hedge exchange rate uncertainty by using mechanisms such as forward contracts or derivatives thus potentially reducing the impact of this type of uncertainty on their operations

fdi spillovers over time in an emerging market the roles of entry tenure and barriers to imitation in this study we examine how foreign direct investment fdi spillovers to domestic firms in an emerging market occur over time from the organizational learning perspective we propose that as entry tenure of foreign firms in an industry increases domestic firms can learn from the foreign firms over time and improve their productivity we further build upon the competitor imitation argument to propose that this effect will be stronger when barriers to imitation faced by the domestic firms are lower based upon a comprehensive panel dataset on manufacturing firms in china in 1998 2007 our findings strongly support these arguments we find that entry tenure of foreign firms in an industry has a positive relationship with the productivity of individual domestic firms in the same industry albeit at a diminishing rate we also find that this positive relationship is stronger when the foreign firms have lower export intensity lower intangible asset intensity and have followed a more rhythmic i e less irregular entry pattern situations characterizing lower barriers to imitation

control and performance in international joint ventures the authors examine the meaning of control in international joint ventures ijvs and the relationships of potential means of control in such organizations to the performance satisfaction of the foreign partner they propose a conceptual model that provides both a traditional ownership focused internalization perspective on those issues and an integrated approach combining a broader transaction cost interpretation of control with a resource input based bargaining power model a set of simultaneous structural equations with endogenous explanatory variables provides multiple possible paths from various resource and power inputs through different means of control to perceived performance satisfaction in such a model intermediate variables act both as dependent and independent variables thus the complex theoretical interactions of the variables are modeled more comprehensively and realistically than in single equation models to test the model and compare the theoretical relationships the authors used dat

urban spatial development with durable but replaceable capital the theory of urban spatial development until recently has been primarily a static theory of economic equilibrium the models of alonso l mills 6 and muth 7 determine a complete spatial equilibrium between the supply and demand for urban land the study of growth or change in such models therefore has been limited exclusively to comparative statics wheaton 8 it should be clear that the central and in many respects unrealistic assumption of such models is that housing capital is neither physically nor economically durable without durability there is no opportunity cost to old capital no barrier to change and no history to an urban area within such a framework a common set of conclusions emerges regarding urban spatial structure residential density and the price per unit of land decline monotonically from the location of employment a greater population results in higher density at all locations while increases in income or decreases in the cost of travel create a more steeply sloped density and price gradient in the last few years there has been a growing awareness that the equilibrium portrayed by such models does not correctly reflect the process of urban development theoretical papers by anas 2 31 and brueckner 4 and an empirical model by harrison and kain 5 develop an alternative theory of urban spatial development in which the process of growth is explicitly modeled and in which capital is completely durable in their models the spatial development of cities occurs incrementally over time in successive rings from the center of employment outwards the development of each ring is done with myopic foresight and is therefore determined exclusively by market conditions at the time of development once built

factors influencing illinois farmland values a hedonic model of illinois farmland values is estimated using county level cross section time series data explanatory variables include land productivity parcel size improvements distances to chicago and other large cities an urban rural index livestock production through swine operation scale and farm density measures population density income and inflation the inclusion of spatial and serial correlation components substantially improves the model fit farmland values decline with parcel size ruralness distance to chicago and large cities and swine farm density and increase with soil productivity population density and personal income

understanding farmland price changes this paper develops a structural model of land prices which includes the multidimensional effects of inflation on capital erosion savings return erosion and real debt reduction as well as the effect of changes in the opportunity cost of capital the results show that inflation and changes in the real returns on capital are major explanatory factors in farmland price swings in addition to returns to farming additionally the effects of credit market constraints and expectations schemes are considered explicitly in the analytical model

land price volatility in a geographically dispersed market historical evidence and theory lead to a hypothesis that land price variation increases with distance to market this hypothesis is tested with county data from five cornbelt states during the period 1969 to 1987 when price changes were unusually large our data support the hypothesis in the 70s prices increased more in the western cornbelt than in the eastern cornbelt in the 80s the western cornbelt experienced the more precipitous price declines our hypothesis explains why great plains farmers have experienced greater financial problems during times of stress than have many other farmers

learning and protection of proprietary assets in strategic alliances building relational capital one of the main reasons that firms participate in alliances is to learn know how and capabilities from their alliance partners at the same time firms want to protect themselves from the opportunistic behavior of their partner to retain their own core proprietary assets most research has generally viewed the achievement of these objectives as mutually exclusive in contrast we provide empirical evidence using large sample survey data to show that when firms build relational capital in conjunction with an integrative approach to managing conflict they are able to achieve both objectives simultaneously relational capital based on mutual trust and interaction at the individual level between alliance partners creates a basis for learning and know how transfer across the exchange interface at the same time it curbs opportunistic behavior of alliance partners thus preventing the leakage of critical know how between them copyright 2000 john wiley sons ltd

fads versus fundamentals in farmland prices we develop an approach to decompose farmland price time series into three uncorrelated components permanent fundamental component temporary fundamental component and nonfundamental component this decomposition is useful for studying the importance of fundamental versus nonfundamental factors in explaining farmland price behavior and the dynamic response of farmland prices to shocks to each of these components the approach is applied to annual iowa farmland prices over the 1922 94 sample period we find that fads and overreactions play important roles in explaining short run price behavior while long run price movements are explainable by permanent fundamental shocks

game theoretic models of wage bargaining this paper aims at being a tool to help apply game theoretic bargaining models to wage negotiations in this perspective we review a number of articles which explicitly deal with wage determination as well as purely game theoretical models which we believe can be fruitfully extended to account for specific features of labour markets we discuss some common shortcomings in the wage negotiation literature and suggest possible lines of research worth pursuing to deal with such weaknesses

perspectives on multinational enterprises in emerging economies multinational enterprises mnes play a pivotal role in the development of many emerging economies in consequence they became the focus of scholarly research by economists and policy analysts in contrast international business scholars have been comparatively uninterested in analysing this role of mnes yet they could make important contributions to these debates first studies taking the individual firms as starting point would enhance understanding of the interaction between mnes and the local environment second theories and research methodologies developed in international business research could provide new insights into the dynamics of mnes in emerging economies the objective of this paper is to motivate more international business scholars to engage in research on positive and negative spillovers from foreign direct investment fdi in emerging economy societies to advance this research agenda scholars need to analyse the specific activities and capabilities of the firms involved and the impact of fdi on the broader social and environmental context for management this agenda raises the ethical question to what extent ought businesses to care about their local stakeholders

r d activities in affiliates of swedish multinational enterprises the fact that multinational enterprises mnes do not undertake all their research and development r d activities at home has become a matter of recent concern both in the home and host countries of these companies some empirical work has been done on the question of why mnes decentralize their rd see mansfield et al 1979 lall 1979 h akansson 1980 and hirschey and caves 1981 to the best of my knowledge the study by hwkansson 1980 is the only one that deals with the determinants of the r d intensity of mne affiliates but it is confined to subsidiaries that carry out r d while foreign affiliates that do not are excluded 2 furthermore the analysis does not take into account the characteristics of the mne to which the affiliates belong our study investigates the factors that explain the r d intensity of foreign subsidiaries of swedish mnes using data for 1978 following haikansson 1980 we concentrate on the technological capabilities developed at the subsidiary level but in contrast to him we take into account both affiliate host country and parent company characteristics furthermore our sample includes those foreign affiliates that do not perform r d which leads us to use a tobit model the study proceeds as follows section ii focuses on some factors of importance in determining the amount of research activity carried out by foreign affiliates in section iii we present the data and describe the model and method of estimation used the empirical results are presented in section iv we draw the main conclusions in section v

temporal regulation and intertemporal substitution the effect of banning alcohol at college football games a wide variety of consumption goods and activities are regulated and in a wide variety of ways excise taxes are levied on the consumption of tobacco products alcoholic beverages playing cards and gasoline consumption of certain narcotics pesticides and unsafe products are quantity controlled even prohibited in some cases driving a car getting married gambling in a legal casino and drinking alcoholic beverages are regulated on the basis of age of the consumer smoking is often restricted to designated smoking areas so called blue laws regulate the hours and days that retail businesses can operate hunting and fishing are restricted to specific locations and specific times of the year this paper is concerned with the regulation of time and place of consumption or temporal regulation for some goods temporal regulation can be rationalized on the basis of controlling negative externalities the induced substitution of consumption into other periods and locations presumably reduces the magnitude of the externality cigarette smoking hunting and fishing fit into that category confining smoking to certain times and locations may not reduce total smoking output but it may reduce the amount of the tobacco smoke externality 1 restricting hunting and fishing to certain times of the year reduces the impact of the common pool problem on the steady state stock of animals and fish in these cases increased consumption in other periods is not a policy problem alcohol however is a different story regulation of the consumption of alcohol is usually rationalized as a way of

spatial patterns of residential development abstract a simple dynamic model of residential development with durable housing where all households are identical and all developers have perfect foresight is studied it is shown that unlike the case of static models it is quite possible that house size decreases and thus population density increases with distance from the city center and that the house rent curve has positive gradient in certain area

taxing to control social costs the case of alcohol whether taxation of alcoholic beverages is an appropriate means of reducing social costs of alcohol consumption is a continuing public policy issue some argue that the public health costs and other external costs associated with the consumption of alcoholic beverages are so significant as to justify substantial excise taxes on those beverages others counter that a tax on alcohol would reduce consumption indiscriminately and therefore reduce the satisfaction experienced by millions of sensible drinkers without necessarily reducing the harm caused by a few excessive drinkers 2 this paper presents and applies a framework for evaluating these two views of the efficiency welfare effects of alcohol taxes determining the efficiency implications of alcohol taxes is complicated by the question of whether and how much abusers especially alcoholics benefit from alcohol consumption standard welfare theory assumes that all consumers of alcohol enjoy positive net benefits consumer surplus however it is possible that alcoholics over consume in the sense that consumer surplus from their

strategic alignment and performance of market seeking mncs in china this study explores the environment strategy performance relation of foreign firms especially those with a market seeking mandate in china the results indicate that the analyzer orientation is best suited to the turbulent chinese market which has been undergoing an economic transition in recent years there is also a significant difference in financial performance among market seeking mncs depending on strategic orientations with the analyzer orientation producing the highest performance the prospector and the defender orientations lead to poor financial performance because of the mismatch with china s market which is highly dynamic and complex our findings reiterate the importance of understanding local market traits and opportunities and developing proper strategic configurations for market seeking mnc subsidiaries especially in an emerging economy like china copyright 2001 john wiley sons ltd

financial performance and survival of multinational corporations in china this study investigates the impact of entry timing mode of entry market focus and location advantages on the financial performance and survival of multinational corporations mncs in china three major results were found first mncs that entered china in an earlier year had a higher level of profit than those that entered in a later year second equity joint ventures ejvs had a higher profit level than cooperative operations or wholly foreign owned subsidiaries third mncs that utilized well the location advantages in china had a higher profit we also found that ejvs were more likely to survive compared to cooperative operations while wholly owned subsidiaries did not differ from ejvs the findings are based on a 2 year study of about 1000 mnc operations in china copyright 1999 john wiley sons ltd

partnering with leviathan the politics of innovation in foreign host state joint ventures forming international joint ventures ijvs with political institutions in emerging economies involves both benefits and risks for multinational enterprises mnes while political partners can provide ijvs with various resources their political status equips them with a strong position to appropriate rents in ijvs we address this tension by examining how host state ownership affects both innovation inputs and outputs in china based ijvs over 2008 2013 despite the potential government opportunism we find more r d investment innovation inputs made in ijvs with state partners than in those with private ones thus r d investment can be politically motivated and symbolically managed to ensure continued resource exchanges with the host state this political pressure is mitigated when foreign parents directly transfer home country based technology to ijvs when the host market dependence of ijv is weak and when ijvs are located in a deregulated region moreover we find foreign host state jvs deliver fewer innovation outputs measured by patent data than foreign private jvs which implies the failure of state partners to adequately absorb foreign technologies these findings highlight both the state partners powerfulness to boost ijv innovation investment and their limits in shaping ijv innovation outcomes and bear rich implications for the management of mne host government relationships

the joint influence of agricultural and nonfarm factors on real estate values an application to the mid atlantic region county level farmland and residential housing values are estimated for the mid atlantic region as a function of farm returns developed land values household incomes population densities and location results are based on the hypothesis that farmland owners anticipate land development and that nonfarm factors are important determinants of farmland prices response of farmland prices to change in farm returns is found to be inelastic and relatively uniform in rural and urban counties response to nonfarm factors is found to be more elastic and substantially greater in rural counties copyright 2001 oxford university press

innovation in multinational corporations control and communication patterns in international r d operations this paper addresses issues of global innovation in multinational corporations by examining the patterns of communication and control in international rd 2 local and international adaptors both focus their communication on their internal corporate network and 3 international creators have strong internally and externally oriented networks of relationships the implications for the management of global innovation are discussed 1998 john wiley sons ltd

can a firm find the balance between openness and secrecy towards a theory of an optimum level of disclosure the purpose of this article is not merely to counter assertions about technology leakage spillovers being innocuous or benevolent but to go further and illuminate an under researched question how can companies seek the optimum balance between conscious disclosure and secrecy the article works towards a theory of optimum disclosure by identifying possible benefits and costs of disclosure or openness in paradigm 1 most companies find the net benefits of disclosure openness to be negative in paradigm 2 applicable to a few highly networked or open source mnes there could be net benefits over a limited range and up to an optimum point

the drivers of foreign direct investment into research and development an empirical investigation this paper examines the determinants of foreign direct investment fdi in research and development laboratories by 32 multinational enterprises in the pharmaceutical and electronics industries the paper applies a dichotomous set of motives for fdi results from an econometric analysis of 136 laboratory investments show that relative market size and relative strength of a country s science base determine whether fdi in research and development is carried out in order to exploit existing firm specific advantages or in order to build up new firm specific advantages this holds true in similar form for japanese european and u s firms and across the two industries

human capital in multinational enterprises does strategic alignment matter this research proposes a strategic human capital alignment framework to examine whether the alignment between subsidiary strategy i e export oriented vs local market oriented strategy and human capital i e parent firm vs local specific human capital is positively related to subsidiary performance in multinational enterprises mnes we further explore two important exogenous i e foreign exchange rate change and endogenous i e mne international experience boundary conditions since they may adjust the positive effect of strategic human capital alignment on performance the analysis based on 5604 subsidiary observations of 423 mnes from 1990 to 2012 confirms the positive synergic effect of aligning subsidiary strategy and human capital and shows the moderating effects of foreign exchange rate change and mne international experience by presenting the importance of subsidiary strategy global staffing alignment and the roles of external economic environments and internal organizational capabilities as boundary conditions the strategic human capital alignment framework suggests that what makes human capital valuable for the firm is its alignment with strategic orientation thus managers should carefully deploy the appropriate type of human capital to fulfill the requisite organizational strategy and take into account changing external and internal contextual conditions in applying the framework

sequencing the expansion of geographic scope and foreign operations by born global firms born global firms are not actually born global but rather internationalize rapidly from their inception by expanding their geographic scope and extent of foreign operations however it remains unclear whether such firms 1 simultaneously expand along both dimensions 2 focus on expanding along a single dimension at a given time and switch interchangeably between expanding geographic scope and extent of foreign operations in subsequent periods or 3 stick solely to a specific internationalization path over several subsequent periods this study theorizes and empirically demonstrates that born global firms stick to a dominant internationalization path over subsequent periods arguably this phenomenon reflects managerial efforts to reduce the perceived risk of internationalization and their preference to develop and leverage capabilities that are specific to either of the internationalization paths until the economies of further expanding this path are exhausted

appropriating value from computerized reservation system ownership in the airline industry it is difficult for the firm competing through information technology resources to gain a sustainable advantage because systems are easy to imitate and substitute resources are often available to competitors the innovator may be unable to appropriate all of the benefits from information technology investments airlines have installed computerized reservations systems in travel agencies to appropriate the returns from their investments in information technology the airlines expected to obtain a number of benefits from this strategy including increased efficiency possible bias in favor of the computerized reservations systems owner on the part of the travel agent and fees from other airlines for making reservations for them the purpose of this paper is to evaluate the appropriation of value by computerized reservations systems owners from deploying systems in travel agencies these benefits beyond fees from travel agents should be seen in the vendor airline s market share between cities and in the overall performance of the airline at an industry level this paper models airline performance as a function of computerized reservations systems ownership at two levels for selected city pairs and at the overall level of the firm the city pair analysis employs a multinomial logit market share model that analyzes five years of data on 72 city pair routes the industry model uses longitudinal data for a panel of 10 airlines for 12 years the results of both analyses support hypotheses that computerized reservations systems ownership is positively related to airline performance it appears that strong airlines have appropriated the benefits of their computerized reservations systems turning them into highly specialized assets for further travel related innovation this work offers useful theoretical extensions and methodological approaches for the study of similar kinds of network technology innovations that are currently being deployed in association with electronic commerce on the internet

comparing specific and ad valorem pigouvian taxes and output quotas when the production or use of a good creates an external cost an unregulated market produces a socially inefficient quantity of output one remedy for this inefficiency is to impose a pigouvian tax equal to the marginal external damage associated with the good in many circumstances privately optimizing agents facing a pigouvian tax make decisions that are consistent with the maximization of social welfare

r d intensity and international joint venture performance in an emerging market moderating effects of market focus and ownership structure in this study we examine the contingent relationship between r d intensity and performance of international joint ventures ijvs in an emerging market context based on teece s 1986 arguments regarding the appropriability of innovation we identify two types of appropriability hazard related to ijvs r d activities in this context local market related and local partner related hazards we argue that a positive relationship between r d intensity and ijv performance is more likely to occur if these appropriability hazard can be mitigated results using a sample of manufacturing ijvs in china provide support for these arguments we find that r d intensity is positively related to performance in export market focused ijvs but not in local market focused ijvs in addition using a configuration approach we find that r d intensity is positively related to performance in ijvs that have an export market focus and in which the multinational companies mncs have a majority ownership but not in other market focus ownership structure configurations these findings contribute to our knowledge of r d activities of mncs overseas subsidiaries

reinventing strategies for emerging markets beyond the transnational model with established markets becoming saturated multinational corporations mncs have turned increasingly to emerging markets ems in the developing world such em strategies have been targeted almost exclusively at the wealthy elite at the top of the economic pyramid recently however a number of mncs have launched new initiatives that explore the untapped market potential at the base of the economic pyramid the largest and fastest growing segment of the world s population reaching the four billion people in these markets poses both tremendous opportunities and unique challenges to mncs as conventional wisdom about mnc global capabilities and subsidiary strategy in ems may not be appropriate how mncs can successfully enter these low income markets has not been effectively addressed in the literatures on global and em strategies an exploratory analysis involving interviews with mnc managers original case studies and archival material indicates that the transnational model of national responsiveness global efficiency and worldwide learning may not be sufficient results suggest that the success of initiatives targeting low income markets is enhanced by recognizing that western style patterns of economic development may not occur in these business environments business strategies that rely on leveraging the strengths of the existing market environment outperform those that focus on overcoming weaknesses these strategies include developing relationships with non traditional partners co inventing custom solutions and building local capacity together these successful strategies suggest the importance of mncs developing a global capability in social embeddedness

offshoring innovation to emerging markets organizational control and informal institutional distance the literature on innovation offshoring has focused on the dichotomous choice between two distinct investment strategies captive offshoring and outsourced offshoring we use the concept of organizational control to investigate how differences in the informal institutions that prevail in the home and host countries influence multinational enterprise mne strategy or the organizational control decision with respect to subsidiaries established to offshore innovation while the relationship between formal institutions and mne strategy has been the subject of considerable academic scrutiny less is known about the role of informal institutions we propose that the type of uncertainty precipitated by informal institutions is critical to understanding the strategic behavior of foreign investing mnes we hypothesize that an mne s organizational control over a subsidiary will be contingent upon the type of informal institutional uncertainty encountered by the subsidiary more specifically we disaggregate the informal institutions construct and develop three new more explicit latent constructs behaviorally oriented informal institutions boii technology oriented informal institutions toii and demand oriented informal institutions doii our theory posits that while an increase in boii distance will precipitate a preference for greater organizational control heightened toii and doii distances will induce the opposite outcome a preference for lower levels of organizational control