exposed venture capital competitor ties and entrepreneurial innovation this study investigates the impact of early relationships on innovation at entrepreneurial firms prior research has largely focused on the benefits of network ties documenting the many advantages that accrue to firms embedded in a rich network of interorganizational relationships in contrast we build on research emphasizing potential drawbacks to examine how competitive exposure enabled by powerful intermediaries can inhibit innovation we develop the concept of competitive information leakage which occurs when firms are indirectly tied to their competitors via shared intermediary organizations to test our theory we examine every relationship between entrepreneurial firms and their venture capital investors in the minimally invasive surgical device segment of the medical device industry over a 22 year period we find that indirect ties to competitors impede innovation and that this effect is moderated by several factors related to the intermediary s opportunities and motivation to leak important information

the demand for lotto the role of conscious selection this article presents estimates of the elasticity of demand for lottery tickets using time series data in which there is variation in the expected value of a lottery ticket induced by rollovers an important feature of our data is that there are far more rollovers than expected given the lottery design we find strong evidence that individuals do not choose their lottery numbers uniformly from a uniform distribution that is conscious selection we use our estimates to derive the inverse supply function for the industry and this enables us to identify the demand elasticity we find the price elasticity to be close to unity which implies that the operator is revenue maximizing which is the regulator s objective

how firms respond to financial restatement ceo successors and external reactions although past studies have paid considerable attention to firms reputations few have investigated the actions that firms take following a reputation damaging event we identify firms involved in financial earnings restatements and examine whether naming a successor ceo with specific qualities serves to signal the seriousness of a firm s efforts to restore its reputation using theories of market signaling we argue that attributes of successor ceos significantly influence the reactions of key external constituencies in particular firms with more severe restatement tend to name successors who have prior ceo or turnaround experience and a more elite education the naming of such successors results in more positive reactions from the stock market financial analysts and mass media we argue that these attributes send messages to stakeholders and the broader public about the ceo s credibility and the firm s efforts

strategic alliances venture capital and exit decisions in early stage high tech firms abstract we study the trade offs that biotech start ups face in the private equity market when they choose between raising firm level capital from venture capitalists or project level capital from strategic alliance partners increased alliance activity makes future alliances more likely but future vc activity less likely in contrast venture capital vc activity makes both future alliance and future vc activity more likely both types of private capital raise the hazard of going public acquisition as an alternative to initial public offering is made more likely by increased vc activity but the link between acquisition probabilities and alliance activity is less clear cut these results highlight both the importance of alliance partners in resolving asymmetric information problems in the capital acquisition process and the potential conflict of interest between different sources of private equity

who appropriates centrality rents the role of institutions in regulating social networks in the global islamic finance industry this study explains and tests the effects of country level institutions on the distribution of centrality rents between two sets of actors in an interorganizational network building on the literature on corporate elites we propose that a cohesive elite following organizational logics other than profit maximization diverts centrality rents and induces costs on firms and that macro institutions act as external governance mechanisms to shape this relationship we develop our theory in the emerging islamic finance industry where shariah scholars connect firms and constitute a religious corporate elite while central scholars in this network create legitimacy for firms they also shirk and cause information leakage suggesting a negative centrality performance relationship for the firms country level institutions such as government regulation and democracy we argue ameliorate these effects by influencing this religious elite s institutional logic and restraining their actions while institutions developed from within the industry strengthen the power of the elite testing our theory in a network of 367 scholars and 396 institutions over 31 countries using multi level methods we indeed find a negative centrality performance relationship that is ameliorated by stronger government regulation but exacerbated by better developed industry specific institutions as well as a negative relationship between democratic and regulatory institutions and centrality

inequality of opportunity in energy consumption in china abstract this paper proposes an empirical implementation of the concept of inequality of opportunity in energy consumption expenditure and applies this to data from chinese general social survey cgss we examine the role played by circumstances beyond the control of individuals for instance gender hukou status family background and region of birth in generating inequality in energy consumption expenditure in china this study shows that the relative share of inequality of opportunity ior in energy consumption expenditure in china is 10 02 for the entire sample ior turns out to be larger for the older cohort peaking at 14 40 for the 1955 64 cohort a shapley value decomposition presents that hukou status and region of birth are the two largest contributors to inequality of opportunity across birth cohorts a heterogeneity analysis further shows that more disadvantaged groups for instance female individuals born in the west of rural china with worse family backgrounds are facing more unequal opportunities in energy consumption in china these results suggest that energy policies focused on zero discrimination in opportunities should be encouraged

shrinking ageing population and other drivers of energy consumption and co2 emission in the residential sector a case from eastern europe energy use and the resulting environmental impacts are interrelated with socioeconomic development of a certain region what is more the residential sector plays an important role as a major consumer of the energy thus it is important to identify the underlying patterns of energy consumption and the resulting co2 emission amidst the external shocks this paper focuses on the case of residential energy consumption and co2 emission in lithuania over 2004 2016 this example is important given the context of shifts in the size and structure of population economy and energy transformation in lithuania that occurred over the period covered the analysis relies on the index decomposition analysis and factorizes the changes in co2 emission into the effects of population size household size dwelling area energy intensity and carbon factor the results indicate that decline in energy intensity and population played the most important role in pushing the co2 emission down yet these effects were offset by the changes in the lifestyle of the population i e household size and dwelling area along with increasing carbon factor these findings are contrasted to the corresponding findings form the earlier studies around the world and the resulting policy implications are delivered

u s household energy consumption and intensity trends a decomposition approach concerns over impacts from u s energy use on the environment the economy and the national security warrant an understanding of the key drivers of energy consumption this paper focuses on decomposing u s household energy consumption changes into several factors that have affected its growth the interval analyzed is based on household surveys conducted by the u s energy information administration from 1980 through 2005 drivers of total household energy consumption total household electricity consumption and natural gas use for space heating are analyzed and contrasted while not definitive sub period analyses split at 1990 show greater reductions in energy intensity in the later sub period and provide prima fascia evidence of the efficacy of u s efforts to promote energy efficiency through various standards and programs

a status based model of market competition this article explores the significance of status processes for generating and reproducing hierarchy among producers in a market it develops a conception of a market as a status order in which each

home country networks and foreign expansion evidence from the venture capital industry we propose that home country network advantages shape firms foreign expansion we argue that a social status advantage is transferable from one market to another as a signal of quality but that a

getting off to a good start the effects of upper echelon affiliations on underwriter prestige the initial public offering ipo is one of the most critical events in the lifetime of a young firm prior research has shown that firms tend to have successful ipos if they go public with the endorsement of a prestigious lead underwriter this paper examines the antecedents to receiving endorsement by a prestigious underwriter and links this to the experience base of a firm s upper echelon we theorize that the amount and type of upper echelon experience serve as important symbols of a young firm s legitimacy to critical outsiders we introduce a typology of upper echelon experience that distinguishes between upper echelon upstream horizontal and downstream employment based affiliations and suggest that these different types of upper echelon affiliations allay different types of endorser concerns regarding firm legitimacy affecting the endorsement process further we theorize that the relationships between upper echelon experience and investment bank prestige will be moderated by technological uncertainty we test our assertions on a comprehensive sample of public and private biotechnology firms that were founded between 1961 and 1994 and that went public between 1979 and 1996 analyses of the five year career histories of the over 3 200 executives and directors that make up the upper echelons of these firms show that firms with upper echelons with affiliations with prominent downstream organizations i e pharmaceutical and or healthcare companies and with prominent horizontal organizations i e biotechnology companies are more likely to attract the endorsement of a prestigious investment bank we also find that the greater the range of upper echelon affiliations across the categories of upstream horizontal and downstream affiliations the more prestigious the firm s lead underwriter we also find that these latter results are moderated by technological uncertainty the present research has implications for the study of organizational legitimacy interorganizational endorsements and entrepreneurship

when being in the minority pays off relationships among sellers and price setting in the champagne industry economic sociologists have studied how social relationships shape market prices by focusing mostly on vertical interactions between buyers and sellers in this article we examine instead the price consequences of horizontal relationships that arise from intergroup processes among sellers our setting is the market for champagne grapes using proprietary transaction level data we find that female grape growers a minority in the growers community charge systematically higher prices than do male grape growers we argue that the underlying mechanism for this unexpected pattern of results involves the relationships developed and maintained by minority members specifically in depth fieldwork reveals that female growers get together to compensate for their isolation from the majority this behavior enables them to overcome local constraints on the availability of price relevant information constraints that stem from prevailing norms of market behavior individualism and secrecy we discuss the implications

against naive materialism culture consumption and the causes of inequality economie orthodoxy is narrowly materialistic in that it largely neglects the cultural significance of commodities taking as its starting point sen s work on capabilities the paper examines modern consumer theory and argues that consumption is an inherently complex activity that requires considerable knowledge and expertise and which cannot be adequately understood from an individualist point of view it is argued that interpersonal comparisons are consequently more complicated than is suggested in sen s work on capabilities and that an inquiry into the cultural aspects of consumption encourages a reappraisal of the role of preferences and sheds light on the deeper causes of inequality

the conditional nature of embeddedness a study of borrowing by large u s firms 1973 1994 economic and organizational sociologists have increasingly demonstrated that the actions of individuals and firms are affected by the social networks within which they are embedded in recent years scholars have begun to recognize that the effects of these social networks may vary across populations or types of relations this article examines the extent to which the effects of interfirm networks on the behavior of firms are historically contingent focusing on the level of debt financing among approximately 140 large u s corporations over a 22 year period the authors show that the extent to which the firms use of debt was influenced by those with which they were tied through director interlocks declined over time the authors argue that this decline in the network effect reflected a shift in the institutional environment within which the firms operated and that it was driven by three processes the professionalization of the finance function within the firm the internalization of financial decision

does urbanization lead to more direct and indirect household carbon dioxide emissions evidence from china during 1996 2012 china is experiencing a stage of rapid urban development the energy consumption and related carbon dioxide emissions of households continue to increase this paper calculates direct and indirect carbon dioxide emissions of households based on the input output method in china from 1996 to 2012 the results reveal that there were more total carbon dioxide emissions from urban households than from rural households far more indirect emissions from urban households than from rural households slightly more direct emissions from urban households than from rural households and differences in direct carbon dioxide emissions from various fuels and in indirect emissions from various sectors between urban and rural households to examine the causal relationship between urbanization and the carbon dioxide emissions of households cointegration and granger causality tests are applied a unidirectional causal relation was found running from urbanization to both direct and indirect household carbon dioxide emissions and the direct and indirect carbon dioxide emissions of households would increase 2 9 and 1 1 respectively for every increase of one percent in urbanization we discuss the reasons of why the development of urbanization will lead to more household direct and indirect carbon dioxide emissions and suggest certain policy implications for urbanization and carbon dioxide emissions based on the results of this study

decomposition analysis of gas consumption in the residential sector in ireland abstract to date decomposition analysis has been widely used at the macro economic level and for in depth analyses of the industry and transport sectors however its application in the residential sector has been rare this paper uses the log mean divisia index i lmdi i methodology to decompose gas consumption trends in the gas connected residential sector in ireland from 1990 to 2008 which despite an increasing number of energy efficiency policies experienced total final consumption growth of 470 the analysis decomposes this change in gas consumption into a number of effects examining the impact over time of market factors such as a growing customer base varying mix of dwelling types changing share of vacant dwellings changing size of new dwellings the impact of building regulations policy and other factors such as the weather the analysis finds the most significant effects are changing customer numbers and changing intensity the analysis also quantifies the impact of building regulations and compares it with other effects such as changing size of new dwellings by comparing the historical impact on gas consumption of policy factors and non policy factors this paper highlights the challenge for policy makers in achieving overall energy consumption reduction

decomposition analysis of the variations in residential electricity consumption in brazil for the 1980 2007 period measuring the activity intensity and structure effects abstract introduced at the end of the 1970s to study the impacts of structural changes on electricity consumption by industry index decomposition analysis techniques have been extended to various other areas to help in the formulation of energy policies notably in developed countries however few authors have applied these techniques to study the evolution of energy consumption in developing countries in brazil the few available studies have focused only on the industrial sector in this article we apply the decomposition technique called the logarithmic mean divisia index lmdi to electricity consumption of the brazilian residential sector to explain its evolution in terms of the activity structure and intensity affects over the period from 1980 to 2007 the technique is sufficiently robust and flexible to perform this analysis by disaggregating residential consumers by consumption classes and regions of the country among the main results is measurement of the impact of government programs for income transfer and universal service on variations in residential consumption typical of developing countries

shrewd crude or simply deluded comovement and the internet stock phenomenon we show that i return comovement among internet stocks during the late 1990s and early 2000 was not exceedingly high ii there was substantial consistency in the manner by which investors distinguished among internet stocks and iii high comovement is most common during periods of price erosion these results cast doubt on the view that the extraordinary appreciation of internet stocks was due to the crude classification of all such stocks as members of a hot category

how much prestige is enough assessing the value of multiple types of high status affiliates for young firms abstract young unproven firms can signal their worthiness or potential through affiliations with various types of prestigious parties drawing from signaling theory we present a formal consideration of the implications of multiple numbers and types of prestigious affiliates for ipo valuations we argue that different types of prestigious affiliates prestigious executives directors venture capital firms and underwriters convey different signals of ipo worth depending on the extent to which they provide certification or substantive benefits based on a sample of 257 software ipos we find considerable support for our expectations the benefits of prestigious executives and directors accumulate in a linear more is better fashion in contrast the payoffs from vc and underwriter prestige accumulate in a curvilinear fashion we discuss the theoretical implications of these findings and propose an agenda for future research

preentry contacts and the generation of nascent networks in organizations this paper investigates the impact of individuals social ties at organizational entry on the formation of intraorganizational networks when individuals enter organizations with one or more preentry relationships in place i argue they form more extensive networks post entry than their untied counterparts however it is also suggested that under some conditions i e when quality is more certain the relationship between pre and postentry social structure is contingent on individuals quality attributes i test and find support for these hypotheses in a study of new business and law professionals the results indicate that individuals with an initial advantage in social ties form more extensive networks post entry than those without such an advantage and that when certainty about quality is high this effect depends on the quality attributes of the new entrants implications of this study for research on social networks resource accumulation and inequality are discussed

probability of purchase amount of purchase and the demographic incidence of the lottery tax abstract when consumers indifference curves are discontinuous at zero perhaps due to stigma or fixed costs of purchase then factors influencing the amount purchased will have a different effect on the probability of purchase estimation of the demand for a commodity like lottery tickets requires a procedure that accounts for this tobit estimation commonly used in this literature does not allow for this generalization we investigate individual lottery ticket purchases using data from a survey of households our results are quite disparate from earlier studies regarding the effects of many demographic variables on probability of play level of play and expected lottery ticket purchases and imply a different demographic incidence of the lottery tax than previous studies suggest

can expected utility theory explain gambling we investigate the ability of expected utility theory to account for simultaneous gambling and insurance contrary to a previous claim that borrowing and lending in perfect capital markets rules out a demand for gambles we show that expected utility theory with non concave utility functions can still explain gambling when the rates of interest and time preference are equal agents will seek to gamble unless income falls in a finite set of exceptional values when these rates differ there will be a range of incomes for which gambles are desired in both cases repeated gambling is not explained but market imperfections such as different borrowing and lending rates can account for persistent gambling provided the rates span the rate of time preference

domestic alliance network to attract foreign partners evidence from international joint ventures in china partner selection is a critical issue in building international joint ventures ijvs we argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network we frame structural advantages as two network position traits centrality and brokerage specifically network centrality acts as a stronger network trait than brokerage in attracting foreign ijv partners however such a relationship may be moderated by foreign firms local experience and perceived capabilities we contend that when foreign firms have a high level of local market experience and perceived capabilities they may prefer a local broker over a centrally located local firm data on the domestic alliance network in china s electronics and information technology it industries largely support our hypotheses we conclude that as foreign investors become strategic insiders they may not only seek a local partner s capability attributes but also more critically pay attention to a local partner s domestic network

counting and multidimensional poverty measurement this paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method k that extends the traditional intersection and union approaches and a class of poverty measures m our identification step employs two forms of cutoff one within each dimension to determine whether a person is deprived in that dimension and a second across dimensions that identifies the poor by counting the dimensions in which a person is deprived the aggregation step employs the fgt measures appropriately adjusted to account for multidimensionality the axioms are presented as joint restrictions on identification and the measures and the methodology satisfies a range of desirable properties including decomposability the identification method is particularly well suited for use with ordinal data as is the first of our measures the adjusted headcount ratio we present some dominance results and an interpretation of the adjusted headcount ratio as a measure of unfreedom examples from the us and indonesia illustrate our methodology

market constraints as a rationale for the friedman savage utility function since the classic paper by friedman and savage 1948 it has generally been accepted that the observed fact that individuals or firms participate in unfair lotteries and other forms of unfair risk taking may be explained by a section in the individual s utility function in which the individual shows risk preference rather than risk aversion in their model friedman and savage specify a utility function which is in turn concave convex and concave thus allowing for simultaneous purchase of insurance risk aversion and participation in lotteries risk preference however while their specified utility function is indeed capable of explaining observed behavior it does seem to be rather unsatisfactory in that it is an ad hoc specification it is the purpose of this paper to suggest a set of circumstances which give rise to a friedmansavage type utility function in particular it is shown that when certain capital market imperfections exist the utility function defined over intermediate wealth should be distinguished from and may have different properties than the one defined on final wealth then even if we accept the common assumption made in the literature that individuals are risk averse that is that their utility function is concave over final wealth it is still possible that they participate in unfair gambling and of course may also purchase insurance

after the break up the relational and reputational consequences of withdrawals from venture capital syndicates organizational theorists are increasingly interested in the antecedents of terminating interorganizational relationships but have paid little attention to the disruptive consequences of such termi

a theory of buyer seller networks this paper introduces a new model of exchange networks rather than markets of buyers and sellers it begins with the empirically motivated premise that a buyer and seller must have a relationship a link to exchange goods networks buyers sellers and the pattern of links connecting them are common exchange environments this paper develops a methodology to study network structures and explains why agents may form networks in a model that captures characteristics of a variety of industries the paper shows that buyers and sellers acting strategically in their own self interests can form the network structures that maximize overall welfare

labor market advantages of organizational status a study of lateral partner hiring by large u s law firms prior research demonstrates product market advantages of organizational status but largely neglects factor market advantages we propose that status is advantageous in labor markets because individuals generally consider employer status a nonpecuniary employment benefit dyadic analyses of lateral partner hiring by large u s law firms demonstrate two status based advantages in employee hiring and retention first high status firms are more likely than low status ones to hire an employee from a more profitable competitor second high status firms are most likely to lose an employee to a lower status competitor when the competitor is atypically more profitable we discuss implications of these findings for individual and organizational status attainment and for the stability of industry status hierarchies

the impact of urbanization on residential energy consumption in china an aggregated and disaggregated analysis abstract although the relationship among urbanization energy consumption and co2 emissions has been extensively studied in recent years little attention has been paid to the effect of urbanization on residential energy consumption china as the largest developing country still has tremendous potential for urbanization in the future and this paper thus explores the effect of urbanization on the changes of residential energy consumption during 1996 2012 for china both from aggregated and disaggregated perspectives using the divisia decomposition method the findings on aggregated energy show that the urbanization contributes 15 4 to the increase of residential energy consumption during 1996 2012 but with a diminishing trend over time meanwhile from the disaggregated perspective the urbanization process contributes to an improvement of residential energy consumption structure specifically 1 of increase in urbanization rate may result in a decrease of 420 thousand million tonnes of residential coal consumption and an increase of 301 thousand tonnes of oil consumption

the lmdi approach to decomposition analysis a practical guide in a recent study ang energy policy 32 2004 compared various index decomposition analysis methods and concluded that the logarithmic mean divisia index method is the preferred method since the literature on the method tends to be either too technical or specific for most potential users this paper provides a practical guide that includes the general formulation process summary tables for easy reference and examples

drivers of urban and rural residential energy consumption in china from the perspectives of climate and economic effects abstract in this study we investigate the driving forces behind the changes in residential energy consumption rec in china s urban and rural areas over the 2001 2012 period based on the logarithmic mean divisia index method the rec changes are decomposed into seven driving forces which are climate change energy price energy expenditure mix energy cost share in total expenditure expenditure share in income per capita income and population effects according to the results climate effect due to increasing days with abnormal temperature energy cost share effect characterized by more expenditure to be paid for energy use income effect describing constant income growth in the residential sector definitely increase rec in both urban and rural areas in contrast energy prices and energy expenditure mix effects negatively contribute to the rec increase respectively because of the increase in energy prices and the transition from the low priced energy to high priced energy expenditure share and population effects play opposite roles in urban and rural areas and the reasons and implications are analysed in depth

unbundling the structure of inertia resource versus routine rigidity i work to unbundle the structure of inertia into two distinct categories resource rigidity failure to change resource investment patterns and routine rigidity failure to change organizational p

the role of dutch auctions and lotteries in shaping the art market s of 17th century holland abstract this article examines institution formation in the nascent art markets of 17th century amsterdam and haarlem in response to external and internal pressures on artists guilds in amsterdam poor quality imports often copies were touted as originals and sold in clandestine dutch auctions the deliberate confusion about quality imparted to the market features similar to those of akerlof s lemons model and a need for quality guarantees gave occasion to dealers in haarlem and other towns demand was viewed as fixed and guilds toughened restrictions on the supply side dissenters successfully used lotteries to show that demand can be engendered promotion was to become a key feature of later art markets

the new economics of organization over the last ten years or so an important new approach to the study of organizations has emerged within economics it is perhaps best characterized by three elements a contractual perspective on organizational relationships a theoretical focus on hierarchical control and formal analysis via principal agent models this paper provides political scientists with an overview of the new economics of organization and explores its implications for the study of public bureaucracy so far positive political theory has not contributed much to our understanding of public bureaucracy in part this is due to the unsympathetic treatment that rational modeling and most other modes of quantitative analysis have long received from students of public administration the other side of the coin however is that positive theorists have not made much of an effort to develop theories of bureaucracy their concerns have centered around two basic mechanisms of social choice voting and markets and they have devoted little systematic attention to a third mechanism that is clearly important for understanding how societies and other aggregates make collective decisions this third and relatively unexplored mechanism is hierarchy movement toward a positive theory of hierarchies would fill a serious gap in the social choice literature while at the same time making a theoretical contribution that strikes to the essence of public bureaucracy indeed of all organizations in fact significant steps toward a positive theory of hierarchies have very recently been taken but by economists not political scientists in small numbers of course economists made contributions to the study of public bureaucracy some time ago with the pioneering works of downs 1967 tullock 1965 and niskanen 1971 but this new wave of theoretical work is different it is already a large complex body of literature that is the focus of innovation and excitement among a growing number of economists and it reflects an unusual degree of theoretical coherence and cumulative effort work in this tradition tends to receive orientation from a distinctive economic approach to the analysis of organizations an approach perhaps best characterized by three elements a contractual perspective on organizational relationships a focus on hierarchical control and formal analysis via principal agent models this approach has emerged from recent attempts to move beyond the neoclassical theory of the firm which assumes away all organizational considerations to a theory of economic organizations that can explain why firms corporations and other enterprises behave as they do propo

dynamic inducements in r d investment market signals and network locations this research shows that alliance networks shape how firms respond to uncertainty reducing information generated outside a network product awards signal the potential commercial success of the awa

smart meter devices and the effect of feedback on residential electricity consumption evidence from a natural experiment in northern ireland abstract using a unique set of data and exploiting a large scale natural experiment we estimate the effect of real time usage information on residential electricity consumption in northern ireland starting in april 2002 the utility replaced prepayment meters with advanced meters that allow the consumer to track usage in real time we rely on this event account for the endogeneity of price and payment plan with consumption through a plan selection correction term and find that the provision of information is associated with a decline in electricity consumption of 11 17 we find that the reduction is robust to different specifications selection bias correction methods and subsamples of the original data the advanced metering program delivers reasonably cost effective reductions in carbon dioxide emissions even under the most conservative usage reduction scenarios

global connectedness and local innovation in industrial clusters in today s knowledge economy clusters are a key driver of a country s competitiveness yet a cluster s technological base is now more than ever influenced by constituent firms actions to tap into distant knowledge sources drawing on a social network perspective and distinguishing between horizontal versus vertical organization based linkages we explore the effects of a cluster s connectedness to foreign locations on its innovation performance we show that improvements in horizontal and vertical connectedness both stimulate a cluster s innovation performance but that their relative effects vary across cluster types innovation in knowledge intensive clusters disproportionately benefits from enhancements in their constituent firms horizontal connectedness to foreign knowledge hotspots innovation in labor intensive clusters mostly gains from stronger vertical connections by their firms to central value chain players abroad we discuss the implications of our findings for research on global knowledge sourcing and cluster upgrading

understanding global flows of venture capital human networks as the carrier wave of globalization industry participants and observers view venture capital as fundamentally a local business however recent data show an increasing share of us venture capital investments flowing overseas we suggest that cross border venture capital flows are associated with the formation of transnational technical communities ttcs groups of immigrants active in both home and host country technical networks our results highlight the role of human networks as a mechanism of industry globalization and support the view that ttcs are emerging economic actors in their own right

opportunities welfare and social justice a review of fishkin s bottlenecks in his bottlenecks a new theory of equal opportunity joseph fishkin claims he presents an entirely new way of thinking about equality of opportunity the core of the new theory is the call for opportunity pluralism which consists in enlarging the range of opportunities available to people at every stage in life in this essay we discuss how successful fishkin is at shaking the way economists think about equality of opportunity we identify two aspects of fishkin s theory that deeply conflict with economic theories of equality of opportunity those aspects have to do with the way economists interpret the ethical values of respect for preferences and responsibility we also argue that the way fishkin suggests to look at opportunities can help economists fill gaps in the way they define well being and social justice

who pays the price of brokerage transferring constraint through price setting in the staffing sector this article analyzes how a broker s ability to affect prices and extract superior value from its position has economic consequences for the actors tied to it i argue that intermediaries may exercise partial control in price setting by transferring the price constraints imposed on them by the actors on one side of the market to those on the other side in so doing they generate unequal returns for the brokered parties who then receive different prices due to the nature of the tie between the broker and its other exchange partners i investigate this argument using a novel mix of quantitative and qualitative data gathered from an intermediary in the staffing sector the results show that the broker is able to transfer discounts offered to valued buyers clients on to the sellers workers matched with them instead of reducing its own margins as a result actors with the same resource endowments receive different prices depending on the relationships among other exchange partners in a given triadic ne

top management s attention to discontinuous technological change corporate venture capital as an alert mechanism technological discontinuities pose serious challenges to top managers attention these discontinuities which often occur at the fringes of an industry are usually driven by innovative and often venture capital backed start ups creating new products and transforming existing industries in ways that are difficult for incumbent managers to understand against the backdrop of their existing cognitive schemata however failing to appreciate and embrace successful technological discontinuities might endanger incumbents very existence extending the attention based view we explore whether and how interorganizational relationships guide top managers attention either to or away from technological discontinuities we propose that homophilous relationships e g alliances with industry peers should exhibit a negative relationship with incumbents timely attention to technological discontinuities whereas heterophilous relationships e g with venture capitalists as a result of coinvestments should exhibit a positive relationship furthermore we hypothesize that the status of the partners strengthens the effect of homophilous and heterophilous relationships with the timely attention of top managers to technological discontinuities based on a longitudinal study of the incumbents in four information and communications technology industry sectors we find that heterophilous ties through corporate venture capital cvc coinvesting with high status venture capital firms exhibit a strong positive relationship with timely attention cvc when it connects senior management to high status venture capitalists through coinvestments has a special role in directing top managers attention to technological discontinuities and ensuing business opportunities implications for the understanding of the role of interorganizational ties as structural determinants of top managers attention are discussed

syndication institutionalization and lottery play1 why do people play the lottery since lottery tickets are assets with negative expected return lottery play challenges the basic assumptions of economic theory this article approaches lottery play from a networks perspective and focuses on syndicate play a comparison of the development of lottery markets in germany austria spain and portugal from the 17th century onward shows that lottery play declined with rising incomes except in countries in which syndicate play diffused widely namely spain and to a lesser extent portugal although syndicating originated among the relatively poor as a response to an increase in lottery prices it persisted even when individual play became affordable this article contends that syndicating endured because of an institutionalization process by which lottery tickets have transformed from purely economic assets into symbolic carriers of interpersonal ties that convey membership and status position in relevant social networks

children s resources in collective households identification estimation and an application to child poverty in malawi children s resources matter but they are hard to identify because consumption is typically mea sured at the household level modern collective household models permit some identication of indi vidual household member resources but these models typically either ignore children or treat them as attributes of adults we propose a collective household model in which children are people with their own utility functions possibly assigned to them by parents extending the frameworks of browning chiappori and lewbel 2007 and lewbel and pendakur 2008 we show identication of children s resource shares within households we invoke semiparametric restrictions on individual preferences and use data on the household level consumption of assignable private goods to achieve identication of each individual s resource share within the household we show this without being able to observe consumption by individual household members of goods that are partly or wholly shared goods within the household further we obtain identication using only engel curves and so do not require ob served price variation in the data we estimate our model using data from malawi andnd that as the number of children in a household grows women s resource shares fall and children s resource shares rise and men s resource shares are basically unchanged we alsond evidence of gender bias against girls and observe that the resource shares of mothers and children are increasing in the education level of the mother finally we use our estimates to construct poverty indices at the person level andnd that per capita poverty indices understate the incidence of child poverty in malawi

the rise and fall of small worlds exploring the dynamics of social structure this paper explores the interplay between social structure and economic action by examining some of the evolutionary dynamics of an emergent network that coalesces into a small world system the study highlights the small world system s evolutionary dynamics at both the macro level of the network and the micro level of an individual actor this dual analytical lens helps establish that in competitive and information intensive settings a small world system could be a highly dynamic structure that follows an inverted u shaped evolutionary pattern wherein an increase in the small worldliness of the system is followed by its later decline as a result of three factors 1 the recursive relationship between the evolving social structure and individual actors formation of bridging ties which eventually homogenizes the information space and decreases actors propensity to form bridging ties creating a globally separated network 2 self containment of the small world network or increasing homogenization of the social system which makes the small world less accepting of and less attractive to new actors thereby limiting formation of bridging ties to outside clusters and 3 fragmentation of the small world network or the small world system s inability to retain current clusters the study uses data on interorganizational tie formation in the global computer industry in the period from 1996 to 2005 to test the hypothesized relationships

residential energy consumption in urban china a decomposition analysis abstract residential energy consumption rec is the second largest energy use category 10 in china and urban residents account for 63 of the rec understanding the underlying drivers of variations of urban rec thus helps to identify challenges and opportunities and provide advices for future policy measures this paper applies the lmdi method to a decomposition of china s urban rec during the period of 1998 2007 at disaggregated product activity level using data collected from a wide range of sources our results have shown an extensive structure change towards a more energy intensive household consumption structure as well as an intensive structure change towards high quality and cleaner energy such as electricity oil and natural gas which reflects a changing lifestyle and consumption mode in pursuit of a higher level of comfort convenience and environmental protection we have also found that china s price reforms in the energy sector have contributed to a reduction of rec while scale factors including increased urban population and income levels have played a key role in the rapid growth of rec we suggest that further deregulation in energy prices and regulatory as well as voluntary energy efficiency and conservation policies in the residential sector should be promoted

getting known by the company you keep publicizing the qualifications and former associations of skilled employees when product quality cannot be ascertained in advance of purchase producers must convince relevant audiences that they are worthy of consideration as quality players we propose that quality oriented producers will selectively publicize information about their skilled employees in anticipation of signaling benefits which include the accrual of visibility and the projection of quality based identities we validate our perspective on publicizing affiliation information by analyzing how a sample of australian wine producers publicized specific career information about their skilled employees i e their winemakers including the names of certain former employers of these individuals copyright 2009 oxford university press

toward an aspiration level theory of open innovation although open innovation has become increasingly established in the management literature comprehensive theoretical explanations of what drives firms to be open are sparse taking the perspective of the behavioral theory of the firm we conceive of open innovation as a form of nonlocal search arguing that firms will turn to open innovation when substantially under or over performing relative to their aspirations we further enquire how this relationship is moderated by firm specific innovation related resources human capital research and development investment and patents employing a representative survey of uk firms we find some evidence of moderation allowing us to present explanations of search through open innovation and contribute to the behavioral theory of the firm itself

diplomatic and corporate networks bridges to foreign locations firms and governments operate in broad networks in which the home government and its diplomatic service are a critical node or a referral point between firms and potential partners in foreign locations thus diplomatic relations between countries matter for the choice of foreign investment location using a network perspective we argue that the extent to which good diplomatic relations induce firms to invest in friendly host countries depends on their political connections to home governments those with stronger ties to home governments can better access and leverage intergovernmental diplomatic connections thus benefiting potentially from enhanced access to information reduced political risks and increased legitimacy such ability of politically connected firms is more useful where weak institutional impartiality in the host country inhibits neutral treatment of foreign investors empirically using overseas investment location decisions by chinese firms we find that the types of home government ties i e whether they are organizational or personal and whether those relationships are with central or local goverments and the impartiality of host institutions are both important contingencies affecting firms utilization of diplomatic relations we discuss the implications of our study to research on network theory political ties and internationalization of emerging market firms

energy conservation and co2 emission reduction in china s 11th five year plan a performance evaluation in the 11th five year plan fyp 2005 2010 the chinese government initiated a series of energy saving and emission reduction policies in many key fields in response to environmental pollution and climate change this paper quantitatively evaluates the performance of energy conservation and co2 emission reduction in this period the impact of these policies and potentials by integrating the contributions of energy conversion efficiency and energy utilization efficiency improvement industrial restructuring fuel mix shift and renewable energy development in a unified framework as a first attempt to introduce energy conversion efficiency improvement into a decomposition approach comprehensive and specific policies are summarized as a policy list to be investigated the results show that energy intensity and conversion efficiency effects were mainly responsible for driving down energy consumption by 637 4 mtce and 85 4 mtce respectively and they reduced co2 emissions by 1345 3 mt and 243 8 mt respectively due to a significant improvement in the 11th fyp period most of the contributions made by the conversion efficiency effect 94 come from thermal power generation and the emission coefficient effect reduced co2 emissions by 17 4 mt through developing renewable energy economic growth is still the biggest driver of energy consumption and increasing emissions while industrial restructuring and fuel mix shift effects contributed relatively little developing renewable energy and promoting economic restructuring to limit the increase of energy intensive sectors are still the main challenges and the next policy focus to achieve the targets for energy saving and carbon emission reduction in the 12th five year plan

charting the territory recombination as a source of uncertainty for potential entrants in this paper we conceptualize categories as regions of a cognitive map that structure the market and guide the investment decisions of potential entrants i e of new and established organizations we advance that as a category appears altered via incumbents acts of recombination potential entrants face market specific uncertainty and are discouraged to invest in that category these negative effects of recombination on market entries are however mitigated at increasing values of category status we test our arguments in the market for electronic music the analyses of product and organizational entries in music styles between 1978 and 2011 lend support to our arguments

the dynamics of organizational status this paper examines the growth and decline of organizational status it is argued that an organization s status is determined by two factors past performance outcomes and the status of the organization s affiliates the better the past performance outcomes and the higher the status of the affiliates the greater the organization s growth in status this basic proposition is tested in an examination of status changes among investment banks in the non investment grade market between 1981 and 1987 implications and extensions are discussed in the conclusion copyright 1996 by oxford university press

anonymous market and group ties in international trade abstract history provides many examples of cohesive groups dispersed over several countries who exploit the ties between their members to gain entry into foreign markets the phenomenon is well established empirically and noteworthy because it suggests the importance of informational barriers in international transactions we present a simple model where output is produced through a joint venture and agents have complete information domestically but are unable to judge the quality of their match abroad a minority of individuals otherwise identical to all others can exploit complete information in international matches between group members if they so choose group ties increase aggregate trade and income but hurt the anonymous market because they deprive it disproportionately of the group s more productive members

the sociological approach to financial markets as a part of the renaissance and growth of economic sociology during the past two decades and in response to processes such as economic globalization financial markets have been increasingly scrutinized by sociologists their investigation is seen as relevant with respect to understanding the structure and dynamics of advanced societies the dynamics of social development as well as fundamental aspects of human behaviour this paper charts recent developments in the sociology of financial markets its starting point is the treatment of the concept of information within three sociological orientations the social structural approach sociological neo institutionalism and the newer social studies of finance by highlighting their different assumptions about information and market behaviour i discuss how these approaches conceptualize financial markets the methodological implications and the ways in which they contribute to the study of financial exchanges

magnification and correction of the acolyte effect initial benefits and ex post settling up in nfl coaching careers what are the long term consequences of initially beneficial high reputation workplace ties under uncertainty acolytes i e subordinates with work connections to high reputation industry leaders

the credibility of social climbing when does inter firm mobility not influence organizational status this paper examines when inter firm mobility influences organizational status whereas a low status firm can accumulate prestigious affiliations by hiring from a high status firm the status distance between these firms may influence whether the mobility event is perceived as credible if the mobility event lacks credibility meaning that market participants believe that the employee moved for a reason other than the new employer s quality then the hiring firm is less likely to improve its status position we also explore this effect s symmetry and find that a high status firm is less likely to experience status decline when the mobility event lacks credibility we assess these hypotheses in the context of the inter firm mobility of partners of the subsidiary offices of international law firms in hong kong from 1998 to 2008

network composition collaborative ties and upgrading in emerging market firms lessons from the argentine autoparts sector what types of relational and institutional mechanisms shape knowledge flows and the upgrading capabilities of emerging market firms in the face of economic liberalization we analyze the argentine autoparts sector to distinguish the relative impact of different types of network relationships on a firm s process and product upgrading a few social ties to international assemblers appear to be most beneficial for local suppliers although they may be insufficient to compensate fully for the negative effect of being located in a lower tier supplier customer relationships that are part of regular disciplined discussions for product and process improvements appear to be especially beneficial for upgrading

the decline of social entrenchment social network cohesion and board responsiveness to shareholder activism shareholder activism through corporate governance proposals is a prominent avenue for investors to voice their concerns in corporate governance matters however shareholder proposals have an uneven effect on corporate governance this paper contributes to research on shareholder activism by joining social movement approaches to activism with network theoretic approaches to corporate governance the paper examines how firms position within cohesive sections of the board interlock network termed social entrenchment predicts 1 the likelihood of being targeted by activist investors and 2 firms responsiveness to proposal demands first a firm s position in the board network serves as a salient network prism attracting activists attention this is especially true for activist investors who lack other backchannel avenues for engagement or seek to use public reputational penalties as part of their activism strategy second the board network traditionally served as an important collective infrastruc

organizing contests for status the matthew effect vs the mark effect what is the best way to design tournaments for status in which individuals labor primarily for the esteem of their peers what process in other words should organizers of status based contests impose upon those who covet peer recognition we propose a formal model of status based competition that contrasts two competing alternatives the first following merton is the matthew effect according to which a tournament s architect directs slack resources to elite actors and thus widens the distribution of rewards by favoring cumulative advantage the second is the mark effect under which a tournament s designer instead pushes slack resources to marginal actors and thus tightens the distribution of rewards our results suggest that although the mark effect is better for the social welfare of most tournaments the matthew effect is preferable in two distinct contexts in small tournaments where variation in underlying ability translates into acute advantages for the most capable contestants and in large tournaments whose contestants face constant rather than rising marginal costs a condition we relate to contestants perception of their work as intrinsically valuable our contributions are twofold we find counter to the thrust of merton s work that cumulative advantage is not invariably optimal for the functioning of status contests and we identify circumstances in which the production of superstars is likely to make contests for status better off in aggregate implications for future research on status and management are discussed this paper was accepted by olav sorenson organizations and social networks

driving forces of residential co2 emissions in urban and rural china an index decomposition analysis abstract there exist many differences between urban and rural china among which residential co 2 emissions arising from energy consumption is a major one in this paper we estimate and compare the energy related co 2 emissions from urban and rural residential energy consumption from 1991 to 2004 the logarithmic mean divisia index decomposition analysis is then applied to investigate the factors that may affect the changes of the co 2 emissions it is found that energy intensity and the income effects respectively contributed most to the decline and the increase of residential co 2 emissions for both urban and rural china in urban china the population effect was found to contribute to the increase of residential co 2 emissions with a rising tendency however in rural china the population effect for residential co 2 emissions kept decreasing since 1998

the comparison of multi dimensioned distributions of economic status the literature on inequality measurement has been largely concerned with single dimensioned indicators this paper explores some of the issues which arise when there are several dimensions to inequality and these are not readily reduced to a single index concentrating particularly on the two dimensioned case we make use of results on multi variate stochastic dominance in portfolio theory extending these and applying them to the measurement of inequality the use of the dominance conditions is illustrated by an application to the international distribution of income and life expectancy

a strategic model of social and economic networks we study the stability and efficiency of social and economic networks when self interested individuals can form or sever links first for two stylized models we characterize the stable and efficient networks there does not always exist a stable network that is efficient next we show that this tension persists generally to assure that there exists a stable network that is efficient one is forced to allocate resources to nodes that are not responsible for any of the production we characterize one such allocation rule the equal split rule and another rule that arises naturally from bargaining of the players

the economic analysis of lotteries lotteries determinants of ticket sales and the optimal payout rate this paper considers policy issues arising in the design regulation and taxation of lotteries focusing on the market for an on line lottery game demand determines who buys lottery tickets and in what quantities the design of lotteries affects the terms on which tickets are supplied uk data suggest that its lottery may be priced too high to maximize lottery revenue more revenue might be raised if the proportion of sales allocated to tax and other levies were smaller having established the positive economics of lotteries the paper then assesses their welfare implications pari mutuel lotteries enjoy scale economies and as natural monopolies are invariably run either by government agencies or a regulated licensee i estimate consumer surplus and identify the excess burden that arises from existing over taxation of lotteries the large price elasticity of demand implies that revenue raised from the lottery is raised very inefficiently moreover the demand for lottery tickets is inferior and there is some evidence that such games are contagious and addictive so using lotteries as a vehicle for raising revenue is extremely regressive finally i consider other policy implications induced effects on charitable giving and on other forms of gambling the impact on the government budget perceptions of risk and distributional considerations ian walker

the effects of social networks on employment and inequality we develop a model where agents obtain information about job opportunities through an explicitly modeled network of social contacts we show that employment is positively correlated across time and agents moreover unemployment exhibits duration dependence the probability of obtaining a job decreases in the length of time that an agent has been unemployed finally we examine inequality between two groups if staying in the labor market is costly and one group starts with a worse employment status then that group s drop out rate will be higher and their employment prospects will be persistently below that of the other group

identifying the influencing factors of the sustainable energy transitions in china abstract this paper aims to explore the influencing factors that facilitate sustainable energy transitions in china for this purpose this paper assumes that the impact of the energy transition is from three main factors energy technology innovations the energy market and socio technical regimes which can be subdivided into 11 subfactors to empirically test the proposed hypotheses questionnaire survey data collected from chinese energy enterprises are statistically analysed by structural equation models sems the results show that first energy technology innovations the energy market and socio technical regimes are the major forces in the transition to sustainable energy in china second the effects of the three main factors on the energy transition vary according to 11 different subfactors some subfactors i e innovation strategy innovation factors innovation policy innovation network and new energy competitiveness have very important positive effects on the energy transition some subfactors i e competitiveness of the coal industry customer habits and coal based infrastructure have negative effects on the transition to sustainable energy in china third the influence of the subfactors on the transition performance is diminished as a result of the joint intermediate effects of transition behaviours

network prominence bargaining power and the allocation of value capturing rights in high tech alliance contracts we suggest and provide empirical evidence that the bargaining power of alliance partners stemming from their prominence in alliance networks influences the ex ante allocation of value capturing rights in high tech alliance contracts network prominence can enhance the availability of alternative partners for a firm and thereby elevates the firm s bargaining power and enables the firm to receive i more value capturing rights vis a vis its partner i e more net value capturing rights and ii more rights to the unexpected outcomes vis a vis its partner we empirically investigate the content of research and development r d collaboration contracts between biotech and pharmaceutical firms and show that as the prominence of the client i e pharmaceutical firm increases it is able to attain i more net value capturing rights to outcomes within the area of collaboration and ii more rights to unexpected outcomes by contrast increased prominence of the r d firm i e biotech firm decreases both t

politicians luck of the draw evidence from the spanish christmas lottery incumbent politicians tend to receive more votes when economic conditions are good in this paper we explore the source of this correlation exploiting the exceptional evidence provided by the spanish christmas lottery because winning tickets are typically sold by one lottery outlet winners tend to be geographically clustered this allows us to study the impact of exogenous good economic conditions on voting behavior we find that incumbents receive significantly more votes in winning provinces the evidence is consistent with a temporary increase in happiness making voters more lenient toward the incumbent or with a stronger preference for the status quo

the curvilinear relationships between structural embeddedness and productive efficiency an exploratory study abstract existing network studies pay much attention to the benefits of structural embeddedness however uzzi 1996 points out the marginal benefits of structural embeddedness may follow a pattern of diminishing returns using major customer disclosure data from compustat this study investigates the curvilinear relationships between multiple aspects of structural embeddedness and productive efficiency applying both wang and ho 2010 and chen and lin 2009 stochastic frontier models we confirm the diminishing returns of eigenvector and betweenness centralities with a partial support for interconnectedness implications from our findings can help decision makers better understand the effects of structural embeddedness and help devise network structural change strategies for productive efficiency

r d subsidies external collaborative breadth differential gains and the role of collaboration experience abstract external collaboration breadth is important for firms to acquire the knowledge needed to innovate in this paper we combine cross sectional and longitudinal data from the spanish panel of technological innovation survey pitec to examine the indirect impact of r d subsidies on firm external collaboration breadth we contribute to understanding of the indirect impacts of r d subsidies by first providing strong evidence of an economically significant average positive impact of r d subsidies on firm external collaboration breadth second our results advance understanding of the differential impacts of r d subsidies by revealing the vast heterogeneity of the impact at the firm level where approximately only half of treated firms experience a positive collaboration impact from r d subsidies while the remainder experience no impact or a negative effect finally we advance understanding of the characteristics explaining the differential impact of r d subsidies on external collaboration breadth by utilising the organisational learning literature to demonstrate the important role of firm collaboration experience

partners forever an empirical study of relational ties in two small firm clusters many researchers take as axiomatic the proposition that economic action in clusters is embedded in dense durable and trust based social networks it is suggested here that the bias towards high trust enduring relations obscures the competitive dynamics of networks even where co operation can be identified drawing attention to the competitive motives underlying the construction of social networks an investigation is made into the duration and brokering of dyadic relations in business owners advice networks the analysis of 668 dyadic ties in a population of 113 small business owners in two textile and clothing clusters in germany reveals considerable variation in the duration of social relations and the likelihood that they were formed through third party brokers many of whom were direct competitors creating more ephemeral links the findings suggest that marketless conceptions of social networks in clusters need to be balanced with a stronger concern for the role of competition in the social embe

lmdi decomposition approach a guide for implementation since it was first used by researchers to analyze industrial electricity consumption in the early 1980s index decomposition analysis ida has been widely adopted in energy and emission studies lately its use as the analytical component of accounting frameworks for tracking economy wide energy efficiency trends has attracted considerable attention and interest among policy makers the last comprehensive literature review of ida was reported in 2000 which is some years back after giving an update and presenting the key trends in the last 15 years this study focuses on the implementation issues of the logarithmic mean divisia index lmdi decomposition methods in view of their dominance in ida in recent years eight lmdi models are presented and their origin decomposition formulae and strengths and weaknesses are summarized guidelines on the choice among these models are provided to assist users in implementation

the marginal utility of income does not increase borrowing lending and friedman savage gambles there has been a great deal of discussion about whether the marginal utility of income rises with income most notably milton friedman and leonard j savage argued in their classic paper that the willingness to gamble implies that the marginal utility of income is rising over a range the discussions of rising marginal utility and of friedman savage gambles have proceeded independently of the literature on time preference although the issues are in fact related logically drawing on this logical relationship we shall show 1 that at least when intertemporal utility is separable the stable levels of consumption that are usually observed imply that the marginal utility of income decreases as income rises 2 even if the marginal utility of income does increase friedman savage gambles normally will not maximize utility saving and dissaving can attain the levels of consumption which generate the most utility per dollar of income at a lower cost than gambles unless imperfections in the capital market are severe 3 even when the utility function is not temporally separable repeated gambling cannot be a rational way of dealing with a rising marginal utility of income we therefore conclude that observed gambling is seldom if ever explained by the logic set out in friedman and savage s seminal paper in view particularly of the stability of consumption levels and the lack of friedmansavage gambles we conclude that marginal utility of income does not rise with income i a conceptual framework

a risk return model with risk and return measured as deviations from a target return two attribute risk and return models are very popular in the economics and finance literature for analyzing decisions under uncertainty their popularity stems primarily from the intuitive appeal of the dichotomy into risk and return and from the ease with which the concepts can be diagrammed in two dimensions the most commonly used risk return model is the mean variance model in which risk is measured as the variance and return by the mean of the probability distribution over outcomes the mean variance model has a number of shortcomings which are widely known but of particular concern here are the facts that 1 mean variance dominance is neither necessary nor sufficient for second degree stochastic dominance 2 unless the form of the probability distribution is restricted mean variance is consistent with von neumann morgenstern utility theory only if the utility function is quadratic and 3 as peter fishburn has noted

venture capitalists and cooperative start up commercialization strategy this paper examines the possible impact of venture capital vc backing on the commercialization direction of technology based start ups by asking to what extent if at all do vc funded start ups engage in cooperative commercialization strategies strategic alliances or technology licensing or both relative to a comparable set of start ups and with what consequences to address these questions i assemble a novel data set that matches firms receiving a federal research and development subsidy through the u s small business innovative research program to vc funded firms by observable characteristics in five technology intensive industries these data allow decoupling of cooperative activity resulting from start up development via the passage of calendar time from that due to association with vcs an analysis of the 696 start ups in the sample split by an external funding source suggests substantial boosts in both cooperative activity associated with vc backed firms and in the likelihood of an initial public offering

how do social defenses work a resource dependence lens on technology ventures venture capital investors and corporate relationships interorganizational relationships offer many potential benefits but they also expose firms to dangers such as misappropriation which pull partners apart this tension between collaboration and competition is central to tie formation especially for young technology firms that have both a high need for resources and high appropriability of their own resources prior work has examined legal and timing defenses that enable interorganizational ties by such low power firms we focus here on social defenses in a longitudinal study of equity tie formation between young firms and established corporate sharks spanning five technology based industries and 25 years we unpack the effects of social defenses and find intriguingly that centrally positioned third parties are a particularly powerful social defense and that third party social defenses are especially significant when more traditional defenses are unavailable we thus offer the insight that third party chaperones central venture capital investors play a key role in helping young firms to mitigate and navigate vulnerabilities while mobilizing resources

networks as the pipes and prisms of the market1 this article draws an analytical distinction between two types of market uncertainty egocentric which refers to a focal actor s uncertainty regarding the best way to convert a set of inputs to an output desired by a potential exchange partner and altercentric which denotes the uncertainty confronted by a focal actor s exchange partners regarding the quality of the output that the focal actor brings to the market given this distinction the article considers how the value of structural holes and market status vary with these two types of uncertainty the article proposes that the value of structural holes increases with egocentric uncertainty but not with altercentric uncertainty in contrast the value of status increases with altercentric uncertainty but declines with egocentric uncertainty thus actors with networks rich in structural holes should sort into markets or market segments that are high in egocentric uncertainty high status actors should sort into markets that are low in egocentric

isolating the symbolic implications of employee mobility price increases after hiring winemakers from prominent wineries when a firm hires a skilled employee from a prominent competitor an indirect affiliation between the two firms is created recent orga nizational research indicates that such affilia tions may influence the hiring firm s prices both substantively and symbolically e g joel m podolny 2001substantively product quality may be enhanced by the human capital the new employee transfers from their prior employer if so then the hiring firm s prices should increase symbolically because the prior employer was a prominent competitor the move signals to con sumers that the hiring firm s quality may be bet ter than previously believed accordingly prices should increase these substantive and symbolic effects are dif ficult to disentangle empirically consequently their independent effects are more theoretically advanced than empirically supported we leverage an idiosyncratic feature of wine markets to isolate the substance from symbol in the hiring of skilled winemakers because wines are aged before they are released evaluated and priced new winemakers start work as wines made by their predecessors enter the market assuming that winemakers exert little influence on the quality of wines that are already in the cellar an assumption we validate empirically then post hire pricing effects are primarily if not purely symbolic as such once we control for the propensity of wineries to hire new winemak ers we isolate signaling i e symbolic from human capital effects on wine prices following hiring events