deregulation technology imports and in house r d efforts an analysis of the indian experience abstract this paper analyses the effects of the deregulation policy introduced in india in the mid 1980s on the relationship between technology imports and in house r d efforts using appropriate statistical techniques it examines the interactions between policy regime economic environment and the determinants of inter industry variation in technology imports in indian manufacturing in doing so it introduces r d efforts as one of the main determinants literature suggests that there is simultaneity in the relationship between technology imports and r d efforts to tackle this problem lagged r d expenditure intensity is adopted as a proxy for in house r d efforts the empirical results reveal that technology imports were only weakly related with the past in house r d efforts in the protective regime deregulation promoted complementarity between technology imports and r d efforts significantly the results also suggest that after deregulation the impact of product differentiation demand conditions and technology related factors increased significantly in determining the inter industry patterns of technology imports thus unlike in a regulated regime where technology imports are viewed important for filling gaps in domestic technological capabilities in a deregulated regime technology upgradation seems to be the major role of technology imports

organizational identities and the hazard of change industrial and corporate change volume 15 number 5 pp 755 784 doi 10 1093 icc dtl020 advance access published august 8 2006 organizational identities and the hazard of change michael t hannan james n baron greta hsu and ozgecan kocak we examine how the life chances and financial performance of nascent high technology firms were affected by two kinds of organizational changes altering founders blueprints for the employment relation and replacing a founder chief executive officer ceo by an outsider we argue that both events destabilize organizations but that changes in employment blueprints are tied more tightly to the organization s identity and thus are more destabilizing we analyze three dimensions of organizational performance among a sample of young high technology companies in california s silicon valley survival versus failure launching an initial public offering ipo and changes in financial valuations among organi zations that underwent an ipo as predicted changing the employment blueprint increased the hazard of failure and diminished growth in market value appoint ing an outsider as ceo did not affect the hazard of failure appreciably but did depress the rate of growth in market capitalization the implications of these results for ecological and institutional perspectives on organizations are discussed 1 imprinting identity and disruptive change the proposition advanced by hannan and freeman 1984 that altering an organiza tion s core features is hazardous has been the focus of much theorizing and empirical research barnett and carroll 1995 carroll and hannan 2000 this research has generally emphasized one side of the inertia story the disruption entailed in reorgan izing routines and architectures the other side of the story that changes in core fea tures might be viewed as violations of deep seated taken for granted expectations by key organizational constituents has received less attention this article attempts to redress the balance by developing an identity based notion of an organization s core and testing the proposition that changing such core features is especially destabilizing notions of identity played an important part in shaping the original inertia argu ment for instance hannan and freeman 1984 155 156 motivated their argument with the example of the university although some features such as textbooks con stantly change in an adaptive way changing a curriculum from liberal arts to voca tional training would be extraordinarily difficult the curriculum is difficult to the author 2006 published by oxford university press on behalf of associazione icc all rights reserved

international technology transfer and the technology gap abstract we build a quality ladders product cycle model that explores how the quality of technology transferred through foreign direct investment fdi is linked to innovation and imitation when the absorptive capacity of ldcs is limited successful imitation of low quality levels makes fdi involving high quality levels possible through reduction of the technology gap a subsidy to imitation or a tax on low quality fdi production encourages imitation relative to innovation thus releasing the constraint faced by foreign firms seeking to produce in the south these forces that stimulate high quality fdi raise southern welfare through lower prices faster innovation and higher wages

intraindustry structure and the ease of strategic change there has been considerable recent work in industrial organization emphasizing the importance of group stratification within industries the thrust of this literature is that in empirical work and in particular in investigating public policy problems differences across firms within an industry may be crucial this paper is intended as a contribution to the empirical literature of group structures in this paper i examine patterns of strategic group membership in a number of industries and analyze changes in the strategies used by firms in particular i provide a series of rather simple exploratory tests of the importance of intraindustry strategic differences in a number of industries

the role of corporate social responsibility in consumer evaluation of nutrition information disclosure by retail restaurants research examining consumer responses to the provision of nutritional information as part of restaurant menus has produced mixed results in light of pending legislation requiring the provision of nutritional information the authors examine the how corporate social responsibility csr impacts consumer service evaluation of restaurants findings from three studies demonstrate that the relationship between consumer attitudes toward the disclosure of nutrition information and their subsequent evaluation of the food provider is impacted by csr related initiatives studies one and two find that consumer evaluations are enhanced when the firm has an existing reputation for csr and when the firm includes healthy product options as part of the introduction of the nutritional information study 3 finds these effects are particularly strong with fast food restaurants overall the findings suggest that for some firms the introduction of the legislation provides an opportunity to strengthen relationships with customers and gain advantage over some competitors

strategy research governance and competence perspectives business strategy is a complex subject and is usefully examined from several perspectives this paper applies the lenses of governance and competence to the study of strategy both the governance and the competence perspectives have had the benefit of distinguished antecedents they have also had to deal with tautological reputations i begin with the governance perspective with emphasis on the six key moves through which it has been operationalized i then examine the competence perspective in these same six respects governance challenges the competence perspective to apply itself more assiduously to operationalization including the need to choose and give definition to one or more units of analysis of which the routine is a promising candidate the research challenges posed by competence to which governance can and should respond include dynamic transaction costs learning and the need to push beyond generic governance to address strategy issues faced by particular firms with their distinctive strengths and disabilities a lively research future for these two perspectives individually and in combination is projected copyright 1999 john wiley sons ltd business strategy is an expansive enterprise not only do all of the functional areas in the business school relate but strategy is by nature interdisciplinary all of the social sciences especially economics and organization theory plus contract law are implicated indeed in the high technology arena where some of the most difficult strategy issues reside engineering and the law on intellectual property rights also have a bearing of the various approaches to the study of strategy this paper focuses on the governance and competence perspectives both perspectives combine economic reasoning with organization theory as between these two the governance

different shades of green global oil and gas companies and renewable energy abstract the long term energy transition from fossil fuels to renewable energy raises critical questions about the future of oil and gas firms this study asks why some oil and gas firms are committed to renewable energy while others continue to maintain a distinct fossil fuels focus with little or no investment in renewable energy the analysis reveals that there is a wide range in the degree to which oil and gas firms have invested in renewable energy some firms have no investments and others have investments in multiple renewable energy technologies across many countries we examine a combination of country based institutional factors and firm based knowledge and experience factors that could impact oil and gas firms decisions to invest in renewable energy activity regulative and normative pressures impacted renewable energy investments as did environmental citizenship and the degree of internationalization the study s integration of country level factors with firm level experiences provides insights into how firms are dealing with the energy transition by examining areas such as sustainability and regulatory policy the paper sheds light on the ways in which scholars can tap into measures and methods that can extend traditional ib research

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

capital accumulation and deposit pricing in mutual financial institutions this paper presents a multiperiod model of a deposit type mutual financial institution and analyzes the manager s capital accumulation and deposit pricing decisions under uncertainty the model is meant to describe a mutual savings and loan assoeiation sla or a credit union in which there are no stockholders

contingency fit institutional fit and firm performance a metafit approach to organization environment relationships in this paper we attempt to reconcile contingency and institutional fit approaches concerning the organization environment relationship whereas prior scholarly research has examined both theories and compared their impacts on organizational fit and performance we lay the groundwork for a metafit approach by investigating how contingency and institutional fit interact to influence firm performance we test our theoretical framework using a data set of 3 259 respondents from 1 904 companies examining task environmental demands and institutional demands on organizational design across a broad range of industries and firm size classes our results show that contingency and institutional fit provide complementary and interdependent explanations of firm performance importantly our findings indicate that for firms under conditions of quasi fit rather than perfect contingency fit or optimal institutional fit improvements in contingency and or institutional fit will result in better performance however firms with high contingency fit are less vulnerable to deviation from institutional fit in the formation of firm performance whereas firms with perfect institutional fit will slightly decrease their performance when they strive to achieve contingency fit

governance form and organizational adaptation lessons from the savings and loan industry in the 1980s this paper explores how governance form affects the organizational capacity for adaptation we make a general case about the importance of governance in adaptation and we identify three mechanisms through which governance form may affect organizations ability to manage the competency and failure traps that often frustrate the process we look for evidence of these mechanisms through a study of the u s savings and loan s l industry in the 1980s this is an apt context because s ls were confronted by severe environmental changes that suggested a need for change of a relatively radical sort during this decade and because the industry contains a mix of governance forms stock form firms and mutual associations we examine whether mutuals and stocks differed in their propensity to move away from their traditional business and mission of residential mortgage lending in response to the challenges of the 1980s we also consider whether stocks and mutuals differed in their performance outcomes during this decade results indicate that mutuals were slightly less prone toward change but were in no sense inertial they also show that mutuals performed better overall and appeared to change more successfully than did stock firms the overall pattern of results suggests that mutual governance was a resource that allowed s ls to better balance exploration and exploitation in the face of a changing and ambiguous environment we consider the broader implications of these findings for research on organizational adaptation governance form and governance more generally

r d support programs in developing countries the turkish experience in this study the determinants of private r d investment are examined at the level of firms in the turkish manufacturing industry we focus our attention on the effect of public r d support programs our findings indicate that public r d support significantly and positively affects private r d investment there seems to be even an acceleration effect on firm financed r d expenditures smaller r d performers benefit more from r d support and perform more r d in addition technology transfer from abroad and domestic r d activity show up as complementary processes given the scarcity of studies on r d support in technologically weaker economies our hope is that the less developed countries can exploit these findings in constructing socially beneficial technology policies

a sectoral accounting approach to national savings applied to korea abstract this paper presents a sectoral accounting approach to the determination of the national savings ratio starting with the process of sectoral savings determination and showing the sectoral interactions this approach offers an acceptable empirical framework for aggregate savings studies the model estimated with the korean data is used to run simulations to evaluate its predictive capacity to decompose past savings performance by major factors and to assess the savings effect of policy changes and other exogenous shocks the results indicate that income variables have been the most important determinants although interest rate and tax policies have also played some role

identity and the economics of organizations on plebes first day at west point called r day they strip down to their underwear their hair is cut off they are put in uniform they then must address an older cadet with the proper salute and with the statement sir new cadet doe reports to the cadet in the red sash for the first time as ordered plebes must stand and salute and repeat and stand and salute and repeat until they get it exactly right all the while being reprimanded for every tiny mistake in the summary of david lipsky 2003 pp 145 154 who spent four years tracking a company of cadets at west point on r day you surrender your old self in stages but r day is just the beginning of the training and personal re engineering that is to come so that west point graduates emerge four years later as loyal officers in the u s army lipsky shows that despite some failure this tough program is remarkably successful in creating officers with the will to lead in battle economists current picture of organizations and work incentives has no place for the west point program and the motivations it seeks to inculcate in recruits in a standard economic model an individual s preferences are fixed and utility depends only on pecuniary variables the army s aim at west point is to change cadets preferences they wish to inculcate non economic motives in the cadets so that they have the same goals as the u s army alternatively stated the goal of west point is to change the identity of the cadets so they will think of themselves above all else as officers in the u s army they will feel bad about themselves they will lose utility if they fall short of the ideals of such an officer this change in identity

expense preference behavior in the savings and loan industry neoclassical microeconomic theory traditionally has assumed that the decision process in the firm is guided by the objective of profit maximization a number of economists have suggested however that managers may pursue goals which maximize personal utility rather than firm profitability 1 10 11 23 24 conditions under which managerial discretion may be substituted for profit maximization include weak competition in the product or service market a high degree of regulation and the separation of ownership and control under these conditions managers have greater opportunity to indulge in discretionary expenditures and the pursuit of managerial emoluments that is managers may seek to achieve a higher level of personal utility via higher salaries additional staff and other perquisites for which they have positive preferences in general this results in an expansion of expenditures beyond the profit maximizing level and a suboptimal x inefficient use of resources within the firm the expense preference theory of the firm recently received considerable support by the work of edwards 3 in which he developed a test to distinguish between expense preference and profit maximizing behavior upon application of this test to the banking industry edwards found that the number of employees and bank expenditures on wages and salaries are higher in noncompetitive banking markets

modeling the dynamics of strategic fit a normative approach to strategic change this study develops and tests a dynamic perspective on strategic fit drawing from contingency and resource based arguments in the strategy and organizational theory literatures we propose a distinctive analytical approach to identify environmental and organizational contingencies that should predict changes in a firm s strategy and the performance implications of such changes we test our model using extensive longitudinal data from over 4000 u s savings and loan institutions during a period when many s ls considered changing strategic direction the findings support our model of dynamic strategic fit specifically we find that 1 the timing direction and magnitude of strategic changes can be logically predicted based on differences in specific environmental forces and organizational resources and 2 organizations that deviated from our model s prediction of dynamic strategic fit i e changed more or changed less than our model prescribed experienced negative performance consequences we conclude by discussing the implications of our approach and findings for future research on strategic fit and strategic change copyright 2000 john wiley sons ltd

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

firm capabilities technological dynamism and the internationalisation of innovation a behavioural approach we develop a behavioural framework of bounded rational decision making under uncertainty to analyse the role of technological dynamism in the firm s environment for its decision to internationalise innovation applying prospect theory we argue that technological uncertainty in the firm s environment affects its risk preferences differently depending on its technological capabilities a key prediction is that firms with low capabilities will internationalise innovation when faced by technological uncertainty while firms with high capabilities will concentrate their innovation at the home base we also argue that our behavioural approach based on prospect theory is not a stand alone programme but benefits from the integration with traditional concepts in ib in particular we make a case that organisational measures fostering absorptive capacity such as intensive personnel exchange between headquarters and subsidiaries can help to attenuate the high capability firms tendency to concentrate innovation at the home base when faced by high uncertainty we corroborate the predictions of our framework based on data from the german part of the community innovation survey

the s l debacle public policy lessons for bank and thrift regulation this book describes the period of failures of savings and loan associations and sets out a program of policies to prevent future debacles it explains the regulatory actions and inactions that created the incentives for large numbers of thrifts to make excessively risky and ill conceived and in some cases fraudulent and criminal investments it describes the failure of the accounting system to provide adequate information to regulators and in many cases even to the managers of the thrifts themselves concerning the health and riskiness of individual thrifts it also discusses how the regulatory system that had been conceived in an earlier and highly regulated era was overwhelmed in the deregulated environment of the early 1980s it shows how the reforms that were made in response to the growing crisis were too little and too late and finally it offers a set of policy reforms that could prevent future crises in the savings and loan industry this work should be of interest to political and financial economists

income distribution and growth in east asia it is widely believed that the east asian economies performed exceptionally well not only in generating growth but also in keeping inequality low this study tries to answer the questions raised by the claims of exceptionality of income distribution in east asia central findings are that only japan korea and taiwan have legitimate claims to low inequality that the east asian economies distinguished themselves by their ability to translate high profit shares into high savings and investment rates and that low inequality and high profit shares coexisted primarily due to the unusually even distribution of wealth

a portfolio model of korean household saving behavior 1962 1976 in his recent paper on korea s saving and capital accumulation experience over the 1962 76 period williamson challenges development economists to improve on the simplistic models of saving behavior that have come to characterize studies of surplus mobilization in less developed countries he warns that we can no longer be satisfied with single equation ordinary least squares estimated models that ignore the simultaneous nature of the saving investment decision he further suggests that saving studies have been overly concerned with modeling total domestic saving flows and have consequently bypassed important issues relating to changes in sectoral saving patterns and within sectors changes in the composition of saving others have had similar criticisms mikesell and zinser and leff and sato complain that the specifications of total and sectoral saving functions in ldc macro studies have been unimaginative and not well grounded in theory 2 they acknowledge those household saving studies that have utilized theoretically appealing specifications based on wealth stock adjustment and life cycle saving models but they suggest that many studies have been ad hoc in nature and have tended to place excessive emphasis on current disposable income nia definition as the leading and in some cases the only explanatory variable preoccupation with simplistic keynesian saving models that emphasize current nia income is unfortunate since from a purely theoretical standpoint permanent and or capital gains adjusted income measures would be more appropriate explanatory variables to use along with expected real rate of return variables in household wealth accumulation studies indeed studies that have used permanent income and life cycle variables have yielded interesting results 3 mikesell and zinser and williamson point out that measuring the effect on saving of changes in interest rates has been handled in a

entrepreneurial orientation and small business performance a configurational approach the strategy and entrepreneurship literatures suggest that an entrepreneurial orientation eo improves firm performance but the empirical results are mixed in this article we investigate the eo of small businesses and find that a main effects only analysis provides an incomplete picture of performance access to capital and the dynamism of the environment are important to small businesses and we find that when combined with eo a three way interaction model the configurational approach explains variance in performance over and above a contingency model two way interactions and a main effects only model

pro market institutions and global strategy the pendulum of pro market reforms and reversals we review the literature analyzing the impact of pro market institutions on firms global strategy we propose that the ideological tension between whether the government or the market should drive economic development results in a pendulum of pro market reforms and reversals that drive changes in firm strategy and performance much progress has been made in the analyses of pro market reforms and their impact on firms international strategies and performance however there is a need to further learn about four areas 1 the concept of pro market institutions in particular the variety of institutional dimensions the measures and the influence of informal institutions on firm strategies 2 the drivers of changes in pro market institutions especially firms influences and the co evolution of firm strategies and institutional changes 3 the implications of changes in pro market reforms for the interactions among integration diversification and internationalization strategies the causality chains connecting institutions and strategies and the reconfiguration of activities globally and 4 the non traditional moderators that alter the impact of pro market institutional dynamics on firms strategies such as country level political systems industry level competitor reactions and individual level managerial capabilities and perceptions

following doctors orders organizational change as a response to human capital bargaining power organizational change is facilitated by both internal and external factors yet little is known about how they might be linked through a case study of one hospital s change from a nonprofit to a nonprofit for profit organizational structure we find that human capital bargaining power is a key mechanism that integrates internal and external drivers of change however a paradox surfaces whereby the strength of the bargaining power can force structural changes that may be counterproductive our results show that human capital bargaining power is a double edged sword shifting the governance structure to benefit those with power by providing additional rents but creating challenges for the ongoing management and retention of such valuable human capital our findings have implications for the long term survival of talent intensive organizations where human capital bargaining power is strong

structuring a theory of moral sentiments institutional and organizational coevolution in the early thrift industry the authors investigate the coevolution of organizations and institu tions they study how institutional definitions rules and expectations unfold in tandem with the organizational structures and processes that embody those institutions the research site is the early thrift industry changes in thrifts technical environment the rise of a transient and heterogeneous population and institutional environment the rise of progressivism propelled this coevolutionary process the coevolution of thrift organizations and institutions proceeded primarily through selection adaptation was constrained by both institutional factors it was difficult to adopt a novel institutional logic and technical factors early thrifts were generally small so entry and exit were easy

savings and loan ownership structure and expense preference abstract this paper studies the influence of ownership structure on managerial expense preference behavior the hypothesis is that the greater the diffusion of ownership the weaker is the monitoring by owners and the greater is the degree of expense preference behavior whereas expense preference behavior affects inputs particularly on the job consumption of managers well functioning managerial labor markets should resolve the problem by equating the total compensation of managers across firms of different ownership structures a more serious problem however is the potential impact of expense preference behavior on output evidence from the savings and loan industry is adduced indicating that the more diffuse ownership structures associated with mutuality exhibit greater agency costs through the expansion of inputs and outputs beyond profit maximizing levels

adaptation as information restriction the hot stove effect individuals and social systems are often portrayed as risk averse and resistant to change such propensities are characteristically attributed to individual organizational and cultural traits such as risk aversion uncertainty avoidance discounting and an unwillingness to change this paper explores an alternative interpretation of such phenomena we show how the reproduction of successful actions inherent in adaptive processes such as learning and competitive selection and reproduction results in a bias against alternatives that initially may appear to be worse than they actually are in particular learning and selection are biased against both risky and novel alternatives because the biases are products of the tendency to reproduce success that is inherent in the sequential sampling of adaptation they are reduced whenever the reproduction of success is attenuated in particular when adaptation is slowed made imprecise or recalled less reliably the propensity to engage in risky and new activities is increased these protections against the error of rejecting potentially good alternatives on inadequate experiential evidence are costly however they increase the likelihood of persisting with alternatives that are poor in the long run as well as in the short run

transaction costs technology transfer and in house r d a study of the indian private corporate sector abstract this paper deals with the determinants of in house r d and the impact of technology transfer on r d expenditures for a sample of firms belonging to the indian private corporate sector listed with the stock exchanges in india using the transactions costs frame work it considers two modes of technology transfer the first through the market namely armslength purchases against lump sum payments and the second through foreign direct investments the results indicate a complementary relationship between import of technology and r d

firm size opportunities for adaptation and in house r d activity in developing countries the case of indian manufacturing abstract this paper employs probit and tobit models to analyse the determinants of probability of undertaking r d activity and the intensity of r d expenditures for a sample of 291 indian manufacturing firms the empirical findings suggest that the probability of undertaking r d increases with the firm size only up to a certain level while r d intensity increases with it linearly competitive pressures export orientation and vertical integration influence the firms inclination to undertake r d favourably the technology imports r r relation is not dominated by either substitution or complementarity firms in chemicals and capital goods industries appear to attach greater importance to r d because of opportunities available to them for adaptation

liberalization outward orientation and in house r d activity of multinational and local firms a quantitative exploration for indian manufacturing abstract in an increasingly globalizing and knowledge based world economy the declining importance of r d activity in india is a matter of concern this paper analyzes the determinants of r d behaviour of indian enterprises over the 1990s in the context of the reforms of 1991 and their impact on the r d behaviour of mne affiliates and local enterprises the analysis suggests that although average levels of spending have fallen increased competition due to liberalization seems to have pushed local firms to rationalize their r d activity and make it more efficient also r d spending seems to rise more than proportionally with firm size after a certain threshold level has been reached the analysis brings out differences in the nature of r d activity of mne affiliates and local firms local firms direct their r d activity primarily towards the assimilation of imported technology and to providing a backup to their outward expansion via exports and fdi mne affiliates on the other hand focus on exploiting the advantages of india as an r d platform for their parents the paper is concluded with some policy implications of the findings

developing countries imports of technology in house technological capabilities and efforts an analysis of the indian experience abstract this paper examines whether enterprises decisions to import technology are influenced by their in house technological capabilities and whether the imports subsequently lead to an increase in the r d intensities it is argued that in a competitive market situation these decisions could be linked in a sequential relationship but protectionist regulatory policies may make such a relationship quite unlikely empirical tests with data of indian enterprises in the electrical and electronic industries circa 1990 found results consistent with the predictions for the protected regulatory situation

ceo duality and firm performance what s the fuss rising shareholder activism following poor corporate performance and a subsequent drop in shareholder value at many major u s corporations had rekindled interest in duality and corporate governance despite limited empirical evidence duality chairman of the board and ceo are the same individual has been blamed in many cases for the poor performance and failure of firms to adapt to a changing environment in examining the relationship between duality and firm performance this study considers the announcement effects of changes in duality status accounting measures of operating performance for firms that have changed their duality structure and long term measures of performance for firms that have had a consistent history of a duality structure our results suggest that 1 the market is indifferent to changes in a firm s duality status 2 there is little evidence of operating performance changes around changes in duality status and 3 there is only weak evidence that duality status affects long term performance after controlling for other factors that might impact that performance

choosing among alternative technological strategies an empirical analysis of formal sources of innovation abstract this work aims to offer a detailed conceptual and empirical analysis of the inter firm differences in deciding the composition of their technological efforts using data for spanish firms in the period 1990 1996 the study begins with the standard analysis of the determinants of innovative investment then moves on to the less analysed question of the determinants of the generate versus import alternative and ends with a novel analysis of the characteristics which lead firms to organise research internally as compared to the possibility of contracting r d services externally in contrast to standard practice the econometric approach takes into account the existence of non linearities in the used data the results obtained support the conceptual ideas on which they are based

defending against rival innovation we analyze how an incumbent defends its competitive advantage with a focus on the under examined methods of actively defending against the threats posed by rival innovation we describe delineate and analyze the set of such defenses and their likely effects the set of such defenses differs substantially from many standard defenses such as those aimed at defeating the threat of imitation the further study of these pre emptive innovation defenses is important because these defenses are different and because they can substantially affect the sustainability of firm profits and the pace of different of types of innovation

being efficiently fickle a dynamic theory of organizational choice a central proposition in organization theory is that discrete organizational forms are matched to environmental conditions market strategies or exchange conditions this paper develops a contrary theoretical proposition we argue that efficiency may dictate modulating between discrete governance modes i e structural modulation in response to a stable set of exchange conditions if governance choices are discrete as much of organization theory argues then the consequent steady state functionality delivered by these organizational forms is itself discrete however if the desired functionality lies in between the steady state functionality delivered by two discrete choices then efficiency gains may be available by modulating between modes we develop an analytical model of structural modulation and examine factors that influence when modulation is ef ficiency enhancing as well as the optimal rate of modulation we conclude that under certain conditions structural modulation is efficiency enhancing further contrary to theories that highlight the potentially destructive consequences of inertia on organizational survival we identify important efficiencyyielding benefits of inertia

the causes and costs of depository institution failures contributing authors 1 introduction a f cottrell et al 2 s l closures and survivors are there systematic differences in behavior j r barth et al 3 deregulation gone awry moral hazard in the savings and loan industry r a cole et al 4 underlying determinants of closed bank resolution costs w p osterberg j b thomson 5 federal reserve lending to banks that failed implications for the bank insurance fund r a gilbert 6 the savings and loan debacle moral hazard or market disaster g a lilly 7 what are the connections between deposit insurance and bank failures a f cottrell et al 8 bank failures as poisson variates a reappraisal n davutyan 9 a triggering mechanism of economywide bank runs sangkyun park 10 herd behavior or animal spirits a possible explanation of credit crunches and bubbles t s mondschean r a pecchenino index

how organizational resources affect strategic change and performance in turbulent environments theory and evidence this study examines how historical resource endowments and competencies affect strategic change and its outcomes amid environmental turbulence drawing from both behavioral and economics based literatures we develop four distinct perspectives regarding the likely effect of resources on strategic change these four perspectives offer alternative predictions about how and why resource endowments should affect the likelihood or magnitude of strategic change and how and why they should moderate the relation between strategic change and performance we examine the predictive power of these four alternative arguments using extensive longitudinal data from a single industry context characterized both by substantial resource heterogeneity and environmental turbulence results indicate that organizations possessing greater stocks of historically valuable resources were much less likely to engage in adaptive strategic change but also that this resource driven disinclination towards change tended to have a benign or even beneficial effect on performance we discuss the implications of our theory and findings for the strategic change literature and also for the literature on the resource based view of the firm

e business and manufacturing sector a study of small and medium sized enterprises in india it has been argued in the literature that the adoption of information and communication technologies icts allows a reduction in co ordination costs and leads to efficient electronic markets malone et al 1987 lee and clark 1997 several studies in pohjola 2001 have found significant returns on ict investments in developing as well as developed countries a partial survey of literature by bedi 1999 on role of icts in economic development suggests numerous benefits of its adoption these benefits range from employment to productivity gains consumer surplus and improvement in product quality etc in fact several nations started searching for alternatives to paper based methods of communication and storage of information in the last quarter of the twentieth century realizing the potential of icts in electronic business e business the united nations commission on international trade law uncitl adopted a model law in 1996 the un general assembly recommended to its members in january 1997 that they give due consideration to this model law when they enact their laws related to e business despite several advantages the growth of e business has been dismal particularly in developing countries the major impediments in the adoption of such technologies have been the validity and authenticity of information lack of proper cyber laws could also be held responsible for the slow changeover to e business

a note on savings and loan ownership structure and expense preference a re examination this study extends the work of akella and greenbaum journal of banking finance 12 1988 419 through the use of a much larger nationwide sample of us saving and loan associations and supports their original finding of significant expense preference behavior in mutual savings and loans during their original study period 1979 80 this study also provides evidence that over the time period of substantial deregulation and changes in the competitive environment in the us financial services industry expense preference behavior for savings and loans decreased the results are consistent with the idea that the removal of barriers that restrict competition should improve managerial efficiency in firms that survive 2003 elsevier b v all rights reserved

employing identities in organizational ecology this paper argues for greater attention to employment based organizational identities in ecological theory and research i define and explore three dimensions of particular relevance to labor market identities sharpness resonance focus and authenticity the paper offers some speculations regarding i when labor market identities are most decisive for organizations ii how product market and labor market identities interact iii how employment based organizational identities might be operationalized and iv how greater attention to such identities would illuminate key issues in organizational ecology copyright 2004 oxford university press

securities analysts and incumbent response to radical technological change evidence from digital photography and internet telephony a large body of research has explored the factors that impede established firms responses to radical technological changes while it is widely acknowledged that managers face pressures from financial markets to choose strategies that maximize shareholder value little work in the technological change literature has considered the possible influences of public equity markets and the securities analysts who mediate them on incumbent firms challenged with technological change in this paper i begin to address the topic by empirically exploring how securities analysts react to the different strategies undertaken by incumbent firms faced with radical technological change i study the question in two settings the shift to digital technology in photography and the advent of voice over internet protocol voip technology in wireline telecommunications i find evidence that analysts are more attentive and positive toward incumbents strategies that extend and preserve the existing technology than toward strategies that respond directly to the new technology in these settings analysts largely ignore incumbents strategies that directly incorporate the new technology for several years following the discontinuity this study provides insights into the nature and direction of analysts reactions to firms strategies in the context of technological change and is a first step toward better understanding of the potential role of analysts and financial markets in incumbent adaptation

stagflationary effects of monetary stabilization policies a quantitative analysis of south korea this paper presents a macro model of the korean economy that focuses on short run macro economic adjustment and more in particular on the transmission channels of monetary policy between the financial and the real sector of the economy in addition to the usual link between monetary policy and aggregate demand via investment the link between monetary policy and the supply side of the economy via the financing of working capital with borrowed funds is incorporated this link can potentially reverse the short run impact of tight money on inflation and aggregate the impact on output both export prices and domestic prices show a significant sensitivity to cost of financing working capital this credit supply side link gives a stagflationary bias to restrictive credit policies the empirical relevance of this phenomenon is strongly supported by the simulation results derived with the model structurally section 2 of the paper focuses on the real sector part of the model section 3 discusses the financial sector in section 4 different monetary stabilization packages are simulated using the model presented in sections 2 and 3 and alternative policy measures are discussed the simulation runs show strong short run stagflationary effects of tight money policies

technological acquisition and investment lessons from recent indian experience abstract most of the existing studies on investment functions ignore the role of technology acquisition in influencing investment decisions this study argues that technology acquisition will decisively influence investment behavior modernization and expansion plans of firms however capability of the firms to acquire technology differs considerably following the schumpeterian paradigm we maintain that the entrepreneur s decision to invest and expand would depend on the technological opportunities available the main role of the entrepreneur in the schumpeterian framework is to exploit an invention or new technology in introducing new processes and products the policy regime in india prior to 1985 did not permit the firms to take advantage of technological opportunities created abroad in introducing new technologies and expanding their capital base the reforms introduced since 1985 for the first time permitted the indian firms to expand their product range introduce new technologies and increase their capacities without obtaining prior official sanction this study therefore examines the role of technology acquisition in influencing investment decisions of private corporate firms in the aftermath of indian economic reforms introduced in 1985 using pooled cross section data for 1987 88 to 1989 90 on a sample of 325 large corporate firms from seven industries the present study examines the interfirm differences in investment behavior the focus is on the impact of the first phase of economic reforms introduced in india post 1985 the model specified in the study postulates that acquisition of new technology made possible by economic reforms brings down costs and boosts demand this increases the profit rate for firms using new technology technology acquisition per se takes place through technology imports via licensing or arms length purchase of technology through the market intrafirm transfer of technology by way of foreign direct investments and direct import of capital goods embodying new technology the process is facilitated by r d expenditures empirical tests of the model carried out for each industry separately indicate that interfirm differences in the investment rate at the firm level are due to a number of factors opportunities to import machinery and license technology through arms length purchase of technology influence the investment rate positively as these expenditures promote acquisition of technology in other words a government policy aimed at discouraging technology imports would also deter the growth of firms government policy before 1985 did hinder technology imports this was partly to protect indigenous technology and partly to conserve foreign exchange the results of the study further show that in house r d expenditures promote capacity expansion this is despite the fact that most sample firms had small r d budgets firms with r d units are better placed to locate new technology and adapt it to suit indian market conditions this facilitates exploitation of technological opportunity leading to expansion of capital stock however the ability of a firm to exploit technological opportunities depended to a considerable extent on the age of its plants and machinery this is because firms with older machinery and plants find the switch to new technology more difficult as most of their equipment and machinery are not suitable for modernization the results of the study show that firms with machinery of recent vintage modernize and expand their capital base using new technology since it is easier for them to make the change these empirical results have several policy implications for decision makers in both the public and private sectors the policymakers can draw inferences about the positive impact of the economic reforms on the capacity expansion and growth of firms this perhaps provides a justification for taking the reform process to its logical end because economic reforms facilitate technology acquisition and capacity expansion decision makers ought to initiate the reform process in other spheres where it is yet to commence furthermore modernization of plant and machinery and technology acquisition are a continuous process the cost of modernizing a plant with dated machinery will be very high as older outdated machinery is not compatible with the current vintage an upgrade therefore is difficult if not impossible interruption of a technological upgrade due to changes in government policy ranging from total ban on technology imports to liberal import policy would enhance the cost of technology acquisition the empirical results also indicate that even modest r d activities facilitate the identification location and importation of relevant technology thus firms with in house r d units grew faster in countries like india vigorous encouragement of r d ought to be on the policy agenda of both corporate and government policy framers though our sample deals with indian firms it has relevance for other countries because in most countries higher growth rates are being registered in industries that have been experiencing rapid technological development with better technological opportunities further in a given country firms that went in for acquisition of new technology invested more