new blood as an elixir of youth effects of human capital tenure on the explorative capability of aging firms the relationship between firm age and innovation has been an enduring topic of interest we contribute to this research by studying how the effect of firm age on the quality of explorative and exploitative innovations is affected by the firm specific and industry tenure of the talent resources employees that the firm utilizes we start with the baseline predictions that firm age is related to the development of better exploitative innovations and worse explorative innovations however the tenure of employees intervenes in these relationships by way of bringing in new knowledge mental models and beliefs we predict that longer firm specific and industry tenure of employees enhances the positive effect of firm age on the quality of exploitative innovations while amplifying the negative effect of firm age on the quality of explorative innovations in addition for both the baseline and the moderating effect we also formulate a prediction comparing the quality of explorative innovations with those of

resource partitioning revisited evidence from italian television broadcasting the theory of resource partitioning proposes that competition among generalists in the center of a market can trigger a process of resource release that engenders a proliferation of specialist producers outside the center previous research has generally examined the relationship between this proliferation and market concentration a correlate of competitive intensity in the center of the market in this paper we extend the theory by arguing that resource release also occurs as the degree of competitive overlap among producers in the center intensifies even when concentration or other structural features do not vary we expand its implications by demonstrating that increased competitive overlap in the market center can enhance the viability of producers positioned near the center more than those in the periphery and we enrich and complete it by specifying the additional assumptions needed to extend the theory of resource partitioning to entry processes consistent with our expectations an empirical examination of the italian broadcast television industry from 1992 to 2003 finds that the failure rates of both near center and peripheral stations decline with greater competitive overlap in the programming of the national broadcasters with the failure rates of the near center stations falling more than those of peripheral stations greater competitive overlap similarly stimulates the entry of near center stations more than peripheral ones copyright 2013 the author 2012 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

dynamics of niche width and resource partitioning this article examines the effects of crowding in a market center on rates of change in organizational niche width and on organizational mortality it proposes that although firms with wide niches benefit from risk spreading and economies of scale they are simultaneously exposed to intense competition an analysis of organizational dynamics in automobile manufacturing firms in france germany and great britain shows that competitive pressure not only increases the hazard of disbanding but also prompts organizational transformations that give rise to processes of resource partitioning emphasizing the content process distinction in conceptualizing organizational change the article finds that the process effect of changes in niche width and position increases mortality hazards we discuss our findings in light of the processes investigated by the ecological theories of density dependence resource partitioning and structural inertia and point to the theoretical links that help to integrate these theories

measuring entrepreneurship over time abstract this article is a review of three measurement issues that impact the study of entrepreneurship over time 1 level of analysis difference between firms and individuals 2 differences between rate and stock measures and 3 the effects of choosing particular time frames on subsequent analytical results based on theory that views entrepreneurship as depending on ownership rights hawley 1907 this article develops a longitudinal measure of entrepreneurship in the united states the number of organizations per capita the problems and advantages of using a measure based on organizations per capita as an indicator of entrepreneurship is examined understanding how and what is being measured in studies of changes in entrepreneurship over time is an important issue for academic researchers and public policy makers measurement of changes in entrepreneurship over time can shed light on important research questions and public policy issues about entrepreneurship for example is entrepreneurship increasing in the united states if entrepreneurship is increasing is this trend comparable to any previous time periods or is the current increase in entrepreneurship a new or unique social phenomenon what influences changes in entrepreneurship over time the choice of certain measures of entrepreneurship is likely to influence the answers to these questions for example the measures used in an entrepreneurship study are an implicit specification of one s views of entrepreneurship e g entrepreneurship as self employment or firm creation and few measures of entrepreneurship reflect critical changes in important environmental influences e g technological change because of short measurement time frames therefore determining the contribution of entrepreneurship to the well being of an economy is dependent on understanding what measures of entrepreneurship are utilized for making these evaluations and the time frame used for these measures we review three measurement issues that impact the study of entrepreneurship over time 1 level of analysis differences between firms and individuals 2 differences between rate and stock measures and 3 the effects of choosing particular time frames on subsequent analytical results based on theory that views entrepreneurship as depending on ownership rights hawley 1907 this article develops a longitudinal measure of entrepreneurship in the united states the number of organizations per capita studies of entrepreneurship focus on either individual level activity e g self employment or on firm level activity e g new incorporations self employment research focuses on individuals who employ themselves that is individuals who report wages but not wages paid to them by other individuals or organizations in most studies of the self employed firm founders would therefore be classified as wage earners and not as entrepreneurs new firm research focuses on the rate of new firm entrants typically measured as new incorporations so such businesses as proprietorships or partnerships will not be counted a rate is a change from one state to another e g the number of people who become self employed for a specific year or the number of new firms created for a specific year whereas a stock specifies a particular level e g much like a stock of inventory such as the number of self employed or a particular number of firms for a specific time period it is important to recognize that entry into business does not necessarily guarantee remaining in business for example although the number of people who become self employed may increase for a specific year the number of people who remain self employed may actually decrease if more of the self employed fail to remain in business than those that enter the stock of the self employed can decrease if the outflow of self employed is greater than the inflow for those persons interested in whether entrepreneurial activity results in wealth creation either individually or societally the realization that entry into business may not lead to a sustainable business and therefore no creation of wealth should be a signal that measuring rates of business formation and rates of self employment may not be appropriate for this type of research the factors that drive changes in the rate of entrepreneurship are not likely to be manifest over short timeperiods changes in values attitudes technology government regulations and world economic and social changes have a significant influence on changes in entrepreneurship over time studies that have measured entrepreneurship over recent time periods are therefore likely to miss the influence of these variables we introduce a measure of entrepreneurship organizations per capita based on a theory of entrepreneurship as ownership this measure shows the stock of organizations in the u s economy over time from 1857 to 1992 the problems and advantages of using a measure based on organizations per capita as an indicator of entrepreneurship is examined we conclude with some suggestions for improving entrepreneurship research by recognizing the limitations of particular longitudinal entrepreneurship measures and by challenging the field to seek convergent validity among measures

getting ppp right identifying mean reverting real exchange rates in panels abstract recent advances in testing for the validity of purchasing power parity ppp focus on the time series properties of real exchange rates in panel frameworks one weakness of such tests however is that they fail to inform the researcher as to which cross section units are stationary as a consequence a reservation for ppp analyses based on such tests is that a small number of real exchange rates in a given panel may drive the results in this paper we examine the ppp hypothesis focusing on the stationarity of the real exchange rates in up to 25 oecd countries we introduce a methodology that when applied to a set of established panel unit root tests allows the identification of the real exchange rates that are stationary our results reveal evidence of mean reversion that is significantly stronger as compared to that obtained by the existing literature strengthening the case for ppp

the great appreciation the great depreciation and the purchasing power parity hypothesis abstract although there has been much recent work on purchasing power parity ppp neither univariate nor panel methods have produced strong rejections of unit roots in us dollar real exchange rates for industrialized countries during the post 1973 period we investigate the hypothesis that these non rejections can be explained by one episode the large appreciation and depreciation of the dollar in the 1980s by developing unit root tests which account for this event and maintain long run ppp using panel methods we can strongly reject the unit root null for those countries that adhere to the typical pattern of the dollar s rise and fall

balancing act learning from organizing practices in cultural industries the dilemmas experienced by managers in cultural industries are also to be found in a growing number of other industries where knowledge and creativity are key to sustaining competitive advantage firms that compete in cultural industries must deal with a combination of ambiguity and dynamism both of which are intrinsic to goods that serve an aesthetic or expressive rather than a utilitarian purpose managers involved with the creation production marketing and distribution of cultural goods must navigate tensions that arise from opposing imperatives that result from these industry characteristics in this paper we outline five polarities that are shaping organizational practices in cultural industries first managers must reconcile expression of artistic values with the economics of mass entertainment second they must seek novelty that differentiates their products without making them fundamentally different in nature from others in the same category third they must analyse and address existing demand while at the same time using their imagination to extend and transform the market fourth they must balance the advantages of vertically integrating diverse activities under one roof against the need to maintain creative vitality through flexible specialization and finally they must build creative systems to support and market cultural products but not allow the system to suppress individual inspiration which is ultimately at the root of creating value in cultural industries

performance feedback competitive repertoire simplicity and technological evolution in a televised design contest abstract research suggests that in industries where firms compete primarily on the relative merits of their designs performance feedback from repeated episodes of competitive rivalry often leads firms to focus their resources on progressively fewer design features applying miller and chen 1996a miller and chen 1996b concept of competitive repertoire simplicity we argue that the shift from broad to narrow set of technological options marking technological evolution is the product of multi level interaction between competitive design decisions made at the individual firm level and technological knowledge that accumulates at the industry level taking advantage of an elimination tournament called robot wars where competition is transparent regulated and is marked by repeat participation we examine repertoire simplicity and its escalation over iterative episodes of dyadic rivalry using a data set of 296 robotic designs over 4 episodes of this design contest we find evidence for a escalating repertoire simplicity causing convergence in design configurations and b hypothesized but rarely tested links between competition at the individual team level and technological evolution at the population level

why the microbrewery movement organizational dynamics of resource partitioning in the u s brewing industry1 the number of small specialty brewers in the u s beer brewing industry has increased dramatically in recent decades even as the market for beer became increasingly dominated by mass production brewing companies using the resource partitioning model of organizational ecology this article shows that these two apparently contradictory trends are fundamentally interrelated hypotheses developed here refine the way scale competition among generalist organizations is modeled and improve the theoretical development of the sociological bases for the appeal of specialist organizations products especially those related to organizational identity evidence drawn from qualitative and quantitative research provides strong support for the theory the article offers a brief discussion of the theoretical and substantive issues involved in application of the model to other industries and to other cultures

instability in indian agriculture a challenge to the green revolution technology abstract the green revolution technology succeeded in transforming india from a large food importer and large recipient of food aid in the 1950s and 1960s to a food secure country indeed during periods of the 1980s and 1990s india could occasionally export food however the green revolution technology may not have reduced the instability of agriculture during the last two decades this paper examines the factors responsible for instability in area yield and production for major crops in india from 1950 1951 to 2001 2002 this period is divided into a pre green revolution and post green revolution with each period analyzed separately as well as jointly further a similar analysis is done for rice yields for the top five producing states the results show that the sources of growth of crop production have been achieved primarily from yield increases especially since the introduction of the green revolution technology area cultivated did expand but this expansion was not rapid enough to generate the realized production changes results for the green revolution technology impact on instability are somewhat mixed the purest measure of crop instability coefficient of variation shows a decrease in production instability for wheat total cereals sugarcane and total pulses for all of india the remaining 10 crops and crop groups show an increase in production instability measures of dispersion for crop instability show similar results but the interpretation of these results is less transparent because these measures involve covariances between area and yields and other interactions effects overall many of the problems associated with production instability continue to persist and the challenge to find increased stability continues

the pervasive effects of family on entrepreneurship toward a family embeddedness perspective families and businesses have often been treated as naturally separate institutions whereas we argue that they are inextricably intertwined long term changes in family composition and in the roles and relations of family members have produced families in north america that are growing smaller and losing many of their previous role relationships such transformations in the institution of the family have implications for the emergence of new business opportunities opportunity recognition business start up decisions and the resource mobilization process we suggest that entrepreneurship scholars would benefit from a family embeddedness perspective on new venture creation d 2003 elsevier science inc all rights reserved

purchasing power parity and unit root tests using panel data abstract this paper reports the results of unit root tests for real exchange rates using a panel framework this panel approach provides greatly improved power compared to conventional univariate time series unit root tests we obtain evidence supporting ppp over the recent flexible exchange rate period for g 6 and oecd countries we show explicitly that failure to find such evidence in previous research was due to the low power of the tests

world cereal price instability and a market based instrument for ldc food import risk management abstract the paper reviews the types of responses of low income food deficit country lifdc agents to food related shocks it suggests that lifdcs would probably benefit from internationally provided insurance the paper then argues that the world cereal markets do not appear to have become more unstable despite recent liberalisation and declines in world stocks the paper proposes the institution of a fund aimed at providing option like contracts to the lifdcs to insure that they would not incur excessive food import costs in times of need the premiums of such contract could be subsidised by developed countries as part of their overall aid while such a fund would not provide full insurance against excessive food import bills it would go part of the way toward such a goal simulations of the proposal suggest that the cost to developed and developing countries alike would seem to be smaller than the cost of current arrangements and the benefits would seem larger

smooth breaks and non linear mean reversion post bretton woods real exchange rates the recent literature on purchasing power parity ppp has emphasized the role of two phenomena that may lead to the rejection of the ppp hypothesis structural breaks and non linear adjustment induced by transaction costs these two hypotheses are analyzed separately in the literature we develop tests for unit roots that account jointly for structural breaks and non linear adjustment structural breaks are modeled by means of a fourier function that allows for infrequent smooth temporary mean changes and is hence compatible with long run ppp nonlinear adjustment is modeled by means of an estar model our tests present good finite sample properties the tests are applied to a set of 15 oecd countries rers and are able to reject the null of a unit root in 14 cases the breaks are usually associated with the great appreciation and later depreciation of the dollar in the 1980s and the estar adjustment appears to play an important role

resource partitioning the founding of specialist firms and innovation the american feature film industry 1912 1929 past research has established that large bureaucratic firms are less innovative than other firms this reduced innovativeness is likely to be exacerbated when large firms engage in market control in cultural industries the effects can be especially pernicious resulting in the failure to provide audiences with artistic quality or product diversity we investigate the population dynamics of one cultural industry the early american feature film industry specifically we examine the hypothesis that concentration among large generalist firms will be associated with higher rates of foundings of specialist producers and specialist distributors we also investigate the question of whether these specialists are more innovative specifically we examine the hypothesis that specialists were more active than were generalists in the creation of new film genres in the early years of the american film industry we find that increased concentration among generalists had a positive effect on foundings of specialist producers and specialist distributors and that the specialists were more active in the creation of new film genres implications of these findings for future research both on cultural industries and on the population dynamics of the founding of specialist firms are discussed

the ppp debate price matters abstract we implement panel unit root ppp tests that allow for cross sectional dependence between 15 oecd economies 1973 03 1998 12 the main variation in the results stems from using the cpi or ppi indexes rather than from ignoring or allowing for cross sectional dependence

mapping the university technology transfer process abstract transfer of technologies from the universities to the private sector is increasingly regarded as playing a significant role in new business starts growth of existing businesses and new job creation further there are monerous models describing the process of technology transfer some of the existing models represent this process as a linear progression of steps from idea generation and technology development at the university to patenting the technology and then establishing a university private firm link through a formal search process the process culminates in patent rights transfer other models describe technology transfer in terms of networking arrangements and emphasize not so much formal search as the role of long term relationships between the two parties still other studies indicate that it is possible to combine the two approaches formal search and informal networking arrangements to ensure successful transfer business firms involved in transfer also may be classified into several groups transfer could occur between the university and an established firm between the university and a recently created new venture or transfer could result in the creation of a new company technology for example could be transferred to a large company that uses the transferred technology as a basis for just one of many product lines or to a small firm that makes the transferred technology a cornerstone of its product strategy are there any differences among the transfer processes used when large or small firms are involved or when technology is transferred to an existing company or results in the creation of a new firm to address these questions we mapped the technology transfer processes of 23 different technologies developed at the university of minnesota from 1983 to 1993 more than half of the technologies studied went to large companies and were used either to upgrade existing products or to extend existing product lines in eight cases technologies were transferred to small firms in three cases technologies were transferred to venture capital firms or intermediaries and had not been commercialized at the time the study was completed in the rest of the cases new firms were created by the inventors university scientists themselves and served as vehicles for marketing their inventions none of the firms of the latter group have grown beyond a part time employment opportunity for the inventors and only one firm provided evidence that additional hiring would be necessary in the near future only four cases involved transfers of technologies that have been developed and patented by the university to firms that did not have any relationships with the university prior to the transfer in these four cases the firms used some form of search strategy to find a needed technology however there is no evidence that any of the firms had a well developed formal search procedure in the overwhelming majority of cases some form of relationship existed between the university or individual inventors and the private firm prior to the transfer these relationships ranged from long term friendships and or cooperation to such less involved forms as interaction at research seminars and university sponsored events further in four cases the technologies were initially developed by private companies whereas the university s role was to assist in refinement or testing of the technology the research yielded a number of additional findings that deserve further investigation and discussion specifically the study did not provide any evidence that the successfully completed technology transfers made any substantial contribution to either new business creation or the generation of new jobs this finding suggests that scholars and policy makers should proceed with caution before accepting a notion that new or high technology firms will have any direct economic impact the study findings hold specific implications for entrepreneurial behavior and public policy the formal search and shopping for a technology model suggests that both business and academic government laboratories publicize respectively their requirements and offerings and that opportunities for creative brokerage ought to exist we found that in the majority of cases technology was transferred not through formal search but through some prior relationships among individuals this observation suggests that the ability to build extended networks of relationships not only within the business world but also with the university community is an important skill that owners and managers of the technology based businesses need to possess entrepreneurs seeking to start businesses based on new technologies may need to reevaluate how much of their limited time to allocate to build and maintain networks and cooperative relationships and how much time to shop for new technologies through formal channels further public policy and the efforts of the university transfer agencies intended to facilitate transfer may need to shift their emphasis from facilitating shopping by organizing and or paying for publicity which is currently the major emphasis to providing assistance in network building and relationship marketing efforts

are real exchange rates nonstationary evidence from a panel data test it is well documented that real exchange rates between the united states and many industrialized countries in the post bretton woods period are integrated this result implies that purchasing power parity ppp does not hold even as a long run relationship this paper demonstrates that the failure to reject the unit root hypothesis may result from the low power of existing univariate test procedures i test for unit roots in real exchange rates by employing a more powerful panel based procedure using both cpi and wpi real dollar exchange rate data i strongly reject the null hypothesis of a unit root my results provide overwhelming support for the long run ppp under the current float copyright 1996 by ohio state university press

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

a community level analysis of sources and rates of technological variation in the microprocessor market this research sought to identify the sources and rates of technological variation in an industry using a community level framework using data on all merchant producers of microprocessors from 1971

discontinuance among new firms in retail the influence of initial resources strategy and gender abstract women owned businesses represent one of the fastest growing segments of the u s economy their rate has increased more than six fold since 1970 despite this growth rate the number of firms owned by women still lags behind that of men and the sales and income of women owned firms are significantly lower than those of men owned firms the discrepancy between the number of businesses owned by women and men and their economic success has been a popular theme among researchers some have suggested that performance differentials result from disparate structural positions women and men occupy in work and society whereas others attribute the differences to deep rooted interpersonal orientations this study examines whether the performance differences can be explained by variations in initial resources and founding strategy we test whether women have fewer start up resources and if they do whether they can compensate for these deficiencies through their founding strategy recent work in social psychology argues that strategic choice is shaped by experiences to which individuals have been subjected and that women and men have fundamentally different socialization experiences we test the assumption that if the strategy that women owners adopt exploits the unique capabilities they derive from their socialization they can improve the performance of their firms and ward off discontinuance we examine the discontinuance pattern of 203 new firms in the retail industry this industry was selected because women entrepreneurs often choose to operate in this industry giving us a basis for comparing women owned and men owned firms we classify the firms into six strategy archetypes the arche types range from a broad focus where founders emphasize multiple strategic foci simultaneously to narrowly targeted differentiation strategies we assume that the experiential base of women entrepreneurs limits their successfully executing pricing strategies we hypothesize that women led firms decrease the odds of discontinuing by adopting one of two strategy types 1 narrow differentiation strategies that seek to satisfy a narrow segment of the market and that do not rely on pricing or 2 broad generalists strategies that emphasize service and quality but not pricing and take advantage of women s capability for handling multiple stakeholders simultaneously the results offer support for using an integrative model to explain the performance of women owned firms women owned firms have higher odds of discontinuing than men owned firms and women appear to have fewer resources to start their businesses women owners were less likely to have instrumental experience from working in the retail industry and start their businesses on a smaller scale then men but were no less likely then their male counterparts to have access to credit from formal financial institutions or to be disadvantaged by starting fewer other new businesses despite some apparent situational disadvantage resource deficiencies do not appear to affect the odds of women owned businesses discontinuing as much as they do men owned initiatives the findings indicate support for the supposition that women owners can use founding strategy to decrease the odds of discontinuing business a broad generalists strategy that represents a multi focused approach was found to benefit women owned businesses most overall the results suggest that men use prior business experience and human capital to affect the survival status of their businesses women appear to find strategic choice more beneficial future research is recommended to further elaborate the integrative model special attention should be given to developing alternatives to measures traditionally used in gender research many researchers charge that those typically used reflect male derived measures similarly greater attention should be given to understanding why the scale of women owned businesses at start up is substantially smaller than that of men since scale has been shown to be related to subsequent growth and survival

sources of increased instability in indian and u s cereal production recent growth in indian and u s cereal production has been accompanied by a more than proportional increase in the standard deviation of production this study applies variance decomposition procedures to state data on crop production to analyze the sources of this increased instability it is found that production has become significantly more covariate between states and crops largely because of increased yield variability and a loss in offsetting patterns of variation between crop yields in different states these changes may be associated with more variable prices with higher yielding technologies and with a narrowing of the genetic base

the development of an infrastructure for entrepreneurship abstract this paper takes a macroperspective of entrepreneurship and focuses on the issues and events involved in constructing an industrial infrastructure that facilitates and constrains entrepreneurship this infrastructure includes 1 institutional arrangements to legitimate regulate and standardize a new technology 2 public resource endowments of basic scientific knowledge financing mechanisms and a pool of competent labor as well as 3 proprietary rd numerous entrepreneurial actors in the public and not for profit sectors play crucial roles it motivates one to examine the different roles played by these actors and how their joint contributions interact to develop and commercialize a new technology this in turn makes it possible to understand how the risk time and cost to an individual entrepreneur are significantly influenced by developments in the overall infrastructure for entrepreneurship it also explains why the entrepreneurs who run in packs will be more successful than those that go it alone to develop their innovations

recombinant property in east european capitalism recombinant property is a form of organizational hedging in which actors respond to uncertainty by deversifying assets redefining and recombining resources it is an attempt to hold resources that can be justified by more than one legitimating principle property tansformation in postsocialist hungary involves the decentralized reorganization of assets and the centralized management of liabilities together they blur the boundaries of public and private the boundaries of enterprises and the boundedness of justificatory principles enterprise level field research data on the ownership structure of hungary s 220 largest enterprises and banks and an examination of the government s recent debt consolidation programs suggest the emergence of a distinctively east european capitalism that will differ as much from west european capitalism as do contemporary east asian variants

the choice of numeraire currency in panel tests of purchasing power parity we investigate the implications of the choice of numeraire currency on panel tests of purchasing power parity under the current regime of flexible exchange rates by conducting panel unit root tests with twenty one different base currencies we show that the conditions necessary for numeraire irrelevancy are not supported empirically and that the choice of numeraire currency can and does matter for ppp the evidence of ppp is stronger for european than for non european base currencies distance between the countries and volatility of the exchange rates are the most important determinants of the results

how national institutions influence technology policies and firms knowledge building strategies a study of fuel cell innovation across industrialized countries abstract the central thesis advanced in this study is that firms knowledge building strategies can be usefully explained by the variations in their national institutional contexts using an inductive approach a study of fuel cell innovation across the u s france japan and norway demonstrates how countries socio political institutions characterized by their levels of statism and corporatism contribute to variations in technology policies pertaining to investment collaboration internationalization and diversity these technology policies are sources of advantages and disadvantages for firms with implications for their knowledge building strategies the proposed theoretical framework is especially relevant in the context of industry emergence and r d internationalization

dominance by birthright entry of prior radio producers and competitive ramifications in the u s television receiver industry the u s television receiver industry evolved to be an oligopoly dominated by firms that produced radios prior to tvs data on the experience of all u s radio manufacturers and on the length of survival and rate of innovation of all u s tv entrants are collected to analyze how radio experience influenced entry firm performance and the evolution of market structure in the tv industry consistent with a model of the evolution of an oligopolistic industry more experienced radio firms were more likely to enter tv manufacturing had higher innovation rates and in turn had greater market shares and longer survival suggesting that firm capabilities and the evolution of the tv industry s market structure were critically shaped by firms experience prior to entry copyright 2000 john wiley sons ltd

grades of membership and legitimacy spillovers foreign banks in shanghai 1847 1935 in this study we formulated and tested a theory about how heterogeneity among subpopulations affects the degree to which organizations in these subpopulations contribute to and benefit from the overall population s legitimacy historical data on banking in shanghai were used firms in subpopulations with a higher grade of membership were found to contribute strongly to the legitimacy of the general population firms in subpopulations with a lower grade of membership benefited most from legitimacy spillovers the concepts of fuzzy density contrast and public acceptance were applied to measuring legitimacy

more powerful panel data unit root tests with an application to mean reversion in real exchange rates unit root tests seeking mean or trend reversion are frequently applied to panel data we show that more powerful variants of commonly applied tests are readily available moreover power gains persist when the modifications are applied to bootstrap procedures that may be employed when cross correlation of a rather general sort among individual panel members is suspected copyright 2004 john wiley sons ltd

density dependence in the evolution of populations of newspaper organizations a model of density dependence is proposed to explain regularities in the growth and decline of organizational populations density the number of organizations is assumed to be a function of the social processes of legitimation and competition at low density the model predicts that the legitimation process will dominate and will lead to high organizational founding rates and low organizational mortality rates at high levels of density competition will dominate and consequently founding rates will decline and mortality rates will rise the model is tested with hazard function models using data from nine newspaper populations spanning the 19th and 20th centuries and covering over 5200 newspapers analysis offounding rates provides strong empirical support for the model analysis of mortality rates reveals that the model holds for large populations

the ppp debate multiple breaks and cross sectional dependence abstract this study implements panel unit root ppp tests accommodating level and trend breaks and cross sectional dependence in the presence of breaks there is evidence of a currency and price index effect additionally accounting for cross sectional dependence overturns support for ppp

new firm survival industry strategy and location abstract how important is the physical location of a new firm for its chances of survival location of a new firm whether in urban metro or rural vicinities can have important impacts on performance outcomes urban locations often contain a wealth of diverse resources but may also have a greater number of competitors rural locations may lack diversity but can enable the firm to exploit a niche with limited competition we suggest that a simple examination of new firm location will not adequately predict survival chances rather the impact on location of the new firm will be influenced by the industry in which the new firm operates and by the strategy the new firm pursues the industry of the new firm is examined by focusing on where the new firm is located in the value chain we predict that a new firm upstream in the industry value chain will have better chances of survival than new firms downstream in the industry value chain new firms with broadly focused strategies are hypothesized to have greater survival chances than new firms strategically positioned to exploit a narrow market focus and we predict that new firms in urban locations will have greater chances for survival than new firms in rural locations

long term evolutionary change in organizational populations theory models and empirical findings in industrial demography organizational ecology is a theoretical perspective on organizations that attempts to explain long term social evolution especially the rise and fall of organizational populations this artist review the most sustained demographic research program of the perspective one based on the density dependent model of legitimation and competition it discusses the theoretical model and evidence from industrial demography that has been offered in its support as well as criticisms that have been registered unresolved research problems of the program are identified and three major models in progress attempting to address these open questions are discussed and compared copyright 1997 by oxford university press

uncovering the influence of social venture creation on commercial venture creation a population ecology perspective abstract this study takes a population ecology perspective to uncover the influence that social venture creation exerts on commercial venture creation data from 88 ohio counties during 2003 2007 uncovered a negative relationship suggesting that social ventures compete for resources with commercial ventures at the time of founding additionally we found that income levels in the county affected the inter population dynamics between social and commercial ventures specifically lower income levels exacerbated the competitive relationship between social and commercial ventures low levels of government spending on welfare were found to suppress commercial start up rates

the economics of formal business networks abstract this paper analyzes the under researched issue of formal business networks comprising voluntary groupings of entrepreneurs who share knowledge and experiences between themselves economic analysis is used to show how formal business networks which enable entrepreneurs to share good and bad practice can improve efficiency and social welfare the paper also derives conditions for the existence and equilibrium size of formal business networks two principles of network design are proposed to promote their stability and to avoid their collapse

the entrepreneurial m form strategic integration in global media firms many researchers believe that bounded rationality prevents ceos in large complex multidivisional m form corporations from personally formulating division level strategies instead ceos are seen as guiding a bottom up process whereby division managers propose strategies for review and approval by the corporate office contrary to this view we argue that ceos in global media firms frequently drive strategy in a top down manner especially when their firms seek to expand by integrating the activities of two or more existing divisions we refer to such firms as entrepreneurial m forms and maintain that their reliance on an activist ceo offers benefits 1 in turbulent environments when the use of slow bottom up planning processes risks forfeiting first mover advantages and 2 when expansion entails major capital commitments and division managers may be reluctant to accept the career risks associated with sponsorship of bet the company projects

the competitive dynamics of status and niche width us investment banking 1920 1949 by integrating the status based model of market competition and the resource partitioning model this paper develops the resource status space imagery of markets and two propositions first the paper argues that the benefit that an organization derives from an increment in status is not independent of the organization s niche width second the paper considers the implications of status based stratification for the resource partitioning model s specification of the effects of increasing market concentration using the resource status space imagery this paper posits that if expanding generalists are reluctant to lower their status or are unable to increase their status they will expand within their current status level the expanding generalists will thus encroach on the niches of similar status generalists and specialists rather than expand into the niches of generalists across the whole status spectrum we discuss implications for the sociology of markets copyright 2000 by oxford university press

balancing the tensions between rationalization and creativity in the video games industry this paper investigates the forces that influence creativity in the video games industry we adopt a qualitative approach to guide the development of grounded theory across multiple levels of analysis including the industry consisting of multiple actors organizational and individual creator levels our study shows that business and production interests currently drive the rationalization of video game production there is a maturing trend with product designs becoming well established as genres and consumers and publishers desiring incrementally innovative games this leads publishers to focus on acquiring intellectual property and publishers and studios alike to make incrementally innovative sequels the increasing complexity of products leads to further rationalization in their development however the need to satisfy consumers continually evolving tastes and game developers inclinations to be creative also creates tensions with these rational forces different actors balance these tensions differently studios may seek to balance these by shifting between more and less innovative products by creating original intellectual property to increase their bargaining power with publishers and by iterating and repositioning products during development to adapt them to the market publishers may enhance their portfolio by hiring highly creative designers into their stable new products are created through combinative creativity that is the recombination of existing ideas from different sources into new products the connection of combinative mechanisms with the balancing behavior at the firm level provides a means for understanding the evolution of innovative products and therefore industries

mobility and innovation a cross country comparison in the video games industry open labour markets are often seen as a precondition for innovation particularly for new industries however this view ignores two core findings of the economic systems literature first that mobility patterns are institutional microsystems that need to be complementary to other institutions in the labour market and second that new industries may be characterised by incremental and complex innovation based on these considerations we ask how mobility affects innovation in the video games industry in the us and japan we find that inter firm mobility is beneficial for innovation in the us but has negative effects in japan we further find that inter functional mobility is beneficial for innovation in both countries our analysis is based on career histories from the video games industry in the us and japan we present an empirical study based on the game development of 815 video games and the careers of 28 426 video game developers who were involved in the development of games released between 1999 and 2009

the changing structure of the world rice market 1950 2000 abstract the world rice market has been unstable for much of its post world war ii history with prices volatile and the availability of supplies uncertain these characteristics exemplified by the world food crisis of the mid 1970s influenced domestic price and production policies in a number of asian countries however the structure of the world rice market has evolved and changed during the past 50 years this paper identifies three distinct phases in the history of the market based on trends in the level and stability of production and the trade orientation of major exporters the level and stability of production increased steadily over the entire period exporters have generally been active in the world market with the period 1965 1981 being an important exception since the mid 1980s prices have been low and quite stable and the patterns identified in the paper suggest that prices will remain so in the future the policy implication is that asian rice importers can afford to rely more on the world market than was warranted in the past

global gatekeeping representation and network structure a longitudinal analysis of regional and global knowledge diffusion networks this paper argues that structural characteristics of knowledge diffusion networks such as density levels centralization levels and the presence of global knowledge brokers contribute to the emergence of dominant designs and the competitiveness of countries firms and industries it further suggests that national institutional structures and firm specific attributes influence the development of these knowledge diffusion networks six propositions developed from examination of one industry s networks and previous scholarly literature specify these arguments

the community dynamics of entrepreneurship the birth of the american film industry 1895 1929 the study of entrepreneurship has traditionally focused on the founders of new organizations especially those that emerge as leaders in the creation of new industries much of this work follows what gartner 1989 called the traits approach studies of this type posit a causal link between the founding and success of new organizations and the personal attributes of the entrepreneurs however more recent research has documented the many ways in which successful entrepreneurship requires more than just the right person a multitude of factors operating at both the organizational and evironmental levels of analysis also affect the success of entrepreneurial efforts examples include technological change shane 1996 changes in sources of firm capital cable and shane 1997 changes in strategic alliances eisenhardt and schoonhoven 1996 personal networks ostgaard and birley 1996 national environments shane and kolvereid 1995 location choice stearns carter reynolds and williams 1995 and national culture shane 1992

joining the pack or going solo a dynamic theory of new firm positioning abstract the question of new firm positioning in the marketplace and entrant s subsequent long term performance lies at the heart of strategic entrepreneurship we suggest a dynamic theory of new firm positioning that hinges on an important feature of the competitive environment industry level product diversity the key argument is that industry level product diversity drives imitation or differentiation at entry which in turn shapes the exit likelihood of new entrants so in our theory the extent of the new entrant s product portfolio overlap with all the industry s incumbents takes center stage support for our logic is obtained from the analysis of the life histories of 640 british motorcycle producers during the period 1899 1993

new panel unit root tests of ppp abstract we use the new panel unit root tests im k s pesaran m h shin y 1995 testing for unit roots in heterogenous panels wp 9526 dae university of cambridge revised march 1997 to analyse the stationarity of real exchange rates for the g10 economies and switzerland our results for monthly data 1973 96 indicate mean reversion in real exchange rates and a half life of under three years for one off shocks

the evolution of new technology ventures over 20 years patterns of failure merger and survival abstract relatively few studies of entrepreneurs have examined the evolution of business ventures over a long period of time this paper summarizes the fate of 250 technology based companies founded in northern california during the 1960s the three outcomes studied are failure merger and continued operation in addition interviews with a dozen founders of firms that survived the entire 20 year period shed light on the founders own interpretations of why they succeeded by 1988 50 of the firms in the sample had failed 32 had merged or been acquired and 18 had survived as independent businesses there was a steady and occasionally sharp erosion in the number of survivors throughout the period a striking finding was that fully 78 of the surviving firms in 1988 still had one or more of the original founders in place among the factors predicting failure were product market problems such as product timing difficulties problems of product design or inappropriate distribution channels financial difficulties such as initial undercapitalization or problems with the venture capital relationship and managerial key employee problems such as imbalance in the management team or succumbing to the trappings of success the firms in the data base which were subsequently merged or acquired exhibited a number of macro and micro characteristics from a macro point of view the merger acquisition rates seem to have been lower than the national rate in the late 1960s higher in the later 1970s and similar in the 1980s from a micro point of view discernible patterns existed among acquired firms such as size and year since founding interviews with surviving founders suggested that relations between founders banking and credit problems attempted takeovers and international expansion were among the key crises that had to be overcome by the surviving firms of particular interest was the diversity of motives for founding the business reported by the survivors in addition to the desire to achieve wealth or to be independent we heard mentioned loyalty to a product or technology which would otherwise disappear and commitment to satisfying a customer group also noted were founders who indicated that their career as an entrepreneur came about primarily by accident five themes emerging from the interviews were characterized by the surviving founders as business lessons learned 1 know yourself 2 love your product 3 honor your customer 4 treat your people well and 5 keep your integrity the interviews in conjunction with the data on surviving firms are useful in expanding our understanding of the type of person that starts a business and why some start ups succeed over the long term particularly noteworthy is the number affirms who survived without ever growing larger theories of long term entrepreneurial success may need to take risk aversion into account

firm entry and institutional lock in an organizational ecology analysis of the global fashion design industry few industries are more concentrated geographically than the global fashion design industry we analyze the geography and evolution of the fashion design industry by looking at the yearly entry rates at the city level in contrast to other industry studies we find that legitimation processes operate locally and competition processes globally this result points to the rapid turnover of ideas in the fashion design industry on the one hand and the global demand for fashion apparel on the other hand we attribute the decline of paris in the post war period to institutional lock in which prevented a ready to wear cluster to emerge despite the presence of the haute couture cluster an extended organizational ecology model provides empirical support for this claim

the overvaluation of purchasing power parity abstract recent panel studies of purchasing power parity have reported strong evidence of mean reversion in real exchange rates however these studies fail to control for cross sectional dependence in the data this failure has dramatic consequences raising the significance level of tests with a nominal size of 5 percent to as much as 50 percent it is shown in this paper that controlling for cross sectional dependence no evidence against the random walk null can be found in panels of up to 64 real exchange rates this finding cannot be attributed to low power as there is ample power in panels of this size to reject the unit root null