dynamic analysis of innovation and international transfer of technology through licensing abstract this paper develops a quality ladder type dynamic general equilibrium model with endogenous innovation and technology licensing as a major source of international technology transfer in developing countries examining the dynamic characteristics of the model fully we explore the short and long run effects of both an improvement in the probability of reaching a licensing agreement with a given effort and an increase in the license fee rate the model shows that the former promotes innovation and technology transfers in both the long and short run while the latter discourages them

r d internationalization and growth of newly listed firms european evidence the initial public offering ipo is an important stage in the life cycle of privately held and entrepreneurial firms for innovative firms eager to capitalize on their technological advances an ipo represents a springboard for a rapid international expansion of sales however there is little research on the longer term post ipo strategic evolution of newly listed companies including their internationalization we build on international entrepreneurship and dynamic capabilities perspectives and examine interrelationships between r d exporting and growth of newly listed firms in the uk germany italy and france using panel data for 1110 ipos during the period 1985 2004 we found that r d intensity is an important antecedent factor for internationalization of sales both r d and export intensities have a positive effect on the sales growth of newly listed firms however r d intensity is path dependent and is determined by levels of accumulated intangible assets and debt in terms of time dynamics the growth of ipo firms is at its highest level just after the float whereas export intensity increases as ipo firms mature we conclude that managers and ipo investors need to take into account not only growth opportunities but also past innovation strategies and financial constraints on managers strategic choices

internationalize to live a study of the post internationalization survival of new ventures despite a growing number of studies on the survival of new ventures who pursue an international entry strategy research in this area is not yet conclusive one line of argument tells a story of unprepared novices making a risky move and thus predicts negative consequences another line of argument tells a story of prepared entrepreneurs making a strategic decision and thus predicts positive consequences the problem of estimating the true effect involves an important endogeneity problem that can only be overcome by accounting for the fact that new ventures self select into internationalization the goal of this research is to add to the post internationalization survival literature by accounting for this self selection using an endogenous switching model in a potential outcomes or counterfactual inference approach leveraging a panel of us new ventures from the kauffman firm survey our results paint a picture more in line with the preparedness logic of new venture internationalization after controlling for this self selection we find a positive average treatment effect of internationalization on survival and we find evidence that early internationalization is better for post internationalization survival than late internationalization we argue that these results suggest that the new theories of new venture internationalization needs to be further unchained from the process theories of internationalization

commercial branch performance evaluation and results communication in a canadian bank a dea application abstract in this paper we focus on evaluating the performance of the commercial branches of a large canadian bank using data envelopment analysis two production models are considered in this country wide evaluation one model looking directly at resource usage is most useful to the branch manager the other model incorporating financial results is more geared towards senior management we introduce non discretionary factors to reflect specific aspects of the environment a branch is operating in such as risk and economic growth rate of the region both input and output multipliers are constrained by incorporating market prices as well as managerial preferences in order to get effectiveness measures the cost minimisation study led to valuable results pertaining to the performance of individual branches notable is the methodology introduced here that shows how to present graphical and numeric outcomes to managers gap maps pie charts and target tables are produced for each branch to provide performance goals for the managers useful information has also been obtained at the district level output oriented models were analysed to reflect the bank s recent emphasis towards growth in some areas

firm specific assets multinationality and financial performance a meta analytic review and theoretical integration through a meta analysis of 120 independent samples reported in 111 studies we test the predictions of internalization theory in the context of the multinationality performance relationship findin

measuring overall efficiency and effectiveness using dea this paper presents a framework where data envelopment analysis dea is used to measure overall efficiency and show how to apply this framework to assess effectiveness for more general behavioral goals the relationships between various cone ratio dea models and models to measure overall efficiency are clarified specifically it is shown that as multiplier cones tighten the cone ratio dea models converge to measures of overall efficiency furthermore it is argued that multiplier cone and cone ratio model selection must be consistent with the behavioral goals assigned or assumed for purposes of analysis consistent with this reasoning two new models are introduced to measure effectiveness when value measures are represented by separable or linked cones where the latter can be used to analyze profit maximizing effectiveness

the survival of international new ventures international new ventures invs are a popular mode of entry into foreign markets invs those companies that enter foreign markets at inception often suffer the two liabilities of newness and foreignness which may increase the odds of their failure this paper empirically examines the survival of invs by comparing them with other sequential modes of international operations e g acquisitions data from 275 british firms show that invs have lower unconditional survival probabilities than other modes of foreign market entry our analyses also show that differences in survival probabilities disappear when the firms competitive strategies are considered

intellectual property rights licensing and innovation in an endogenous product cycle model abstract we develop a dynamic general equilibrium model of the product cycle to study the effects of stronger intellectual property rights iprs in the south on the incentives of firms in the north to innovate and to license advanced technologies innovation and licensing are random processes requiring resources stronger iprs increase the licensor s share of rents and reduce the costs of licensing contracts thus the returns to both licensing and innovation would rise while additional resources would be available for r d in consequence innovation and technology transfer would rise however the effect of stronger iprs on relative wages between regions is ambiguous

inner and outer approximations of technology a data envelopment analysis approach this paper discusses inner and outer approximation to a technology given by a data set of prices and quantities

product cycles endogenous skill acquisition and wage inequality this paper presents an endogenous product cycle overlapping generations model where the supply of skilled labour is endogenously determined this is used to examine how production shifts through imitation by developing countries affect the do mestic wage differential and supply of skilled labour in developed countries in the model production shifts increase the demand for researchers in developed countries and cause higher relative wages for skilled labour this leads to more individuals acquiring the skills as a consequence the model helps to explain the simultaneous increase in the domes tic wage gap and in the supply of skilled labour observed in developed countries jel classification f16 j31

efficiency effectiveness and productivity of marketing in services abstract how can a service firm right size marketing expenses and yet strive to maximize revenue this paper represents the first attempt to model these efficiency and effectiveness issues using a 49 unit asia pacific hotel chain as illustration we employ a triangular dea model with total expenses controlling for number of rooms as the raw input marketing expenses as intermediate output input and revenues from room rentals and f b as final outputs we infer that efficiency tails off when more than 12 of the budget is expended on marketing activities in terms of effectiveness we find that all the units rated as relatively inefficient can accrue increasing returns to scale in revenues from marketing activities by contrast in the productivity stage linking the raw inputs to the revenues we observe mostly decreasing returns to scale our results highlight the crucial role of marketing in service organizations

do young firms owned by recent immigrants outperform other young firms this study compares the performance of new businesses owned by recent immigrants with that of other new firms it addresses an on going unresolved discussion in the academic and professional literatures by drawing on a large sample of canadian business owners whose firms began trading between 2000 and 2004 and using taxation data to track 2004 to 2008 performance the results provide empirical evidence that young immigrant owned exporter firms outperformed young domestically founded firms whether or not they exported however immigrant owned young enterprises that did not export underperformed other young firms owner level factors such as gender growth intentions and experience also influenced growth performance among young smes the results provide evidence that suggests that immigrants have resources such as access to international networks that provide competitive advantage over non immigrant owners that export or aspire to export not all immigrant business owners however are able to lever such advantages the implications of the findings for research and policy are discussed

an overall measure of technical inefficiency at the firm and at the industry level the lost profit on outlay abstract as a measure of overall technical inefficiency the directional distance function ddf introduced by chambers chung and fare ties the potential output expansion and input contraction together through a single parameter by duality the ddf is related to a measure of profit inefficiency which is calculated as the normalized deviation between optimal and actual profit at market prices as we show in the most usual case the associated normalization represents the sum of the actual revenue and the actual cost of the assessed firm consequently the corresponding profit inefficiency measure associated with the ddf has no obvious economic interpretation in contrast in this paper we allow outputs to expand and inputs to contract by different proportions this results in a modified ddf that retains most of the properties of the original ddf the corresponding dual problem has a much simpler interpretation as the lost profit on average outlay that can be decomposed into a technical and an allocative inefficiency component in addition an overall measure of technical inefficiency at the industry level is introduced resorting to the direction corresponding to the average input output bundle

the internationalization of new and small firms a resource based view abstract this paper seeks to enhance understanding of the internationalization of small and medium sized enterprises smes the study focuses upon the following issues can the characteristics of principal founders businesses and the external environment at one point in time be used to explain at a later date whether a firm is still an exporter or a nonexporter whether exporting firms are larger in size than nonexporting firms whether exporting firms report superior performance than nonexporting firms and whether exporting firms are more likely to survive than nonexporting firms to address these questions this study draws upon a sample of 621 manufacturing construction and services businesses located in twelve contrasting environments in great britain surveyed first in 1990 91 and then re interviewed in 1997 a resource based view is reviewed to identify the range of factors encouraging some owner managed smes to enter export markets four categories of human and financial capital are examined general human capital resources the principal founder s management know how the principal founder s specific industry know how and a principal founder s ability to obtain financial resources that can act as a buffer against random shocks variables relating to resource availability in the external environment were also collected and considered control variables previous studies have highlighted substantial industry differences in the propensity for businesses to enter export markets as well as to survive the principal industrial activity of each business in 1990 91 was therefore considered a control variable variables collected during the 1990 91 survey were selected to explain variations in the propensity to export reported by surviving independent firms in 1997 after elimination of missing values the working sample was reduced to 116 independent firms for this study 86 nonexporters and 30 exporters in 1997 in addition the 21 variables were selected to explain variations in business size in 1997 profit performance relative to competitors reported in 1997 changes in employment over the 1990 91 to 1997 period and business survival over the 1990 91 to 1997 period 213 survivors and 395 nonsurvivors multivariate statistical analysis confirmed that previous experience of selling goods or services abroad is a key influence encouraging firms to export businesses with older principal founders with more resources denser information and contact networks and considerable management know how are significantly more likely to be exporters further businesses with principal founders that had considerable industry specific knowledge are markedly more likely to be exporters businesses principally engaged in the service sectors and those located in urban areas are significantly less likely to be exporters a key finding of this study is that the explanatory variables significantly associated with the propensity to export sales abroad are not the same as those significantly associated with selected size and performance measures the resource based explanatory variables selected fail to significantly detect employment growing firms over the 1990 91 to 1997 period they also fail to significantly distinguish surviving independent firms from nonsurviving firms results from this study will provide policy makers and practitioners with additional insights into the key resource based factors associated with the decision by new and small independent firms to export sales abroad practitioners and policy makers can focus upon the characteristics of principal founders businesses and the external environment to predict the subsequent propensity of an independent firm to be an exporter policy makers and practitioners who want more new and small firms to export outside their local areas may prefer to target their resources and assistance to the relatively smaller proportion of firms that have the business and principal founder profiles that are significantly associated with a firm being an exporter

explaining the formation of international new ventures the limits of theories from international business research abstract international new ventures invs represent a growing and important type of start up an inv is defined as a business organization that from inception seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries oviatt and mcdougall 1994 their increasing prevalence and important role in international competition indicates a need for greater understanding of these new ventures oviatt and mcdougall 1994 logitech as described in a case study by alahuhta 1990 is a vivid example of an inv its founders were from two different countries and had a global vision for the company from its inception the venture which produces peripheral devices for personal computers established headquarters in both switzerland and the u s manufacturing and r d were split between the u s and switzerland and then quickly spread to taiwan and ireland the venture s first commercial contract was with a japanese company using 24 case studies of invs we found that their formation process is not explained by existing theories from the field of international business specifically neither monopolistic advantage theory product cycle theory stage theory of internationalization oligopolistic reaction theory nor internalization theory can explain the formation process of invs these theories fail because they assume that firms become international long after they have been formed and they therefore highlight large mature firms they also focus too much on the firm level and largely ignore the individual and small group level of analysis i e the entrepreneur and his or her network of business alliances we propose that an explanation for the formation process of invs must answer three questions 1 who are the founders of invs 2 why do these entrepreneurs choose to compete internationally rather than just in their home countries and 3 what form do their international business activities take who are the founders of invs we argue that founders of invs are individuals who see opportunities from establishing ventures that operate across national borders they are alert to the possibilities of combining resources from different national markets because of the competencies networks knowledge and background that they have developed from their earlier activities following the logic of the resource based view of the firm we argue that the possession of these competencies is not matched by other entrepreneurs only the entrepreneur possessing these competencies is able to combine a particular set of resources across national borders and form a given inv why do these entrepreneurs choose to compete internationally rather than just in their home countries the founders of invs recognize they must create international business competencies from the time of venture formation otherwise the venture may become path dependent on the development of domestic competencies and the entrepreneur will find it difficult to change strategic direction when international expansion eventually becomes necessary as the founder of one inv explained the advantage of starting internationally is that you establish an international spirit from the very beginning mamis 1989 38 what form do their international business activities take founders of invs prefer to use hybrid structures i e strategic alliances and networks for their international activities as a way to overcome the usual poverty of resources at the time of start up this study has important implications for the practice of management in financing decisions relating to invs venture capitalists and other venture financiers should look for entrepreneurs who have a global vision international business competence and an established international network when entrepreneurs start invs they should create hybrid structures to preserve scarce resources finally given the path dependence of competence development founders of new ventures should consider whether establishing a domestic new venture with plans to later internationalize will be as successful a strategy as establishing a new venture that is international from inception

international protection of intellectual property we study the incentives that governments have to protect intellectual property in a trading world economy we consider a world economy with ongoing innovation in two countries that differ in market size and in their capacities for innovation after describing the determination of national patent policies in a non cooperative regime of patent protection we ask why is intellectual property better protected in the north than in the south we also study international patent agreements by deriving the properties of an efficient global regime of patent protection and asking whether harmonization of patent policies is necessary or sufficient for global efficiency jel o34 f13 during the 1980 s and early 1990 s the united states and several european countries expressed strong dissatisfaction with what they deemed to be inadequate protection of intellectual property in many developing countries the developed countries made the upgrading of intellectual property rights iprs one of their highest priorities for the uruguay round of trade talks their efforts bore fruit in the agreement on traderelated aspects of intellectual property rights trips which was approved as part of the final act of the uruguay round trips establishes minimum standards of protection for several categories of intellectual property for example in the area of new technology it essentially harmonizes

cost allocation and convex data envelopment abstract this paper considers allocation rules first we demonstrate that costs allocated by the aumann shapley and the friedman moulin cost allocation rules are easy to determine in practice using convex envelopment of registered cost data and parametric programming second from the linear programming problems involved it becomes clear that the allocation rules technically speaking allocate the non zero value of the dual variable for a convexity constraint on to the output vector hence the allocation rules can also be used to allocate inefficiencies in non parametric efficiency measurement models such as data envelopment analysis dea the convexity constraint of the bcc model introduces a non zero slack in the objective function of the multiplier problem and we show that the cost allocation rules discussed in this paper can be used as candidates to allocate this slack value on to the input or output variables and hence enable a full allocation of the inefficiency on to the input or output variables as in the ccr model

efficiency analysis for exogenously fixed inputs and outputs we evaluate by means of mathematical programming formulations the relative technical and scale efficiencies of decision making units dmus when some of the inputs or outputs are exogenously fixed and beyond the discretionary control of dmu managers this approach further develops the work on efficiency evaluation and on estimation of efficient production frontiers known as data envelopment analysis dea we also employ the model to provide efficient input and output targets for dmu managers in a way that specifically accounts for the fixed nature of some of the inputs or outputs we illustrate the approach using real data for a network of fast food restaurants

some models for estimating technical and scale inefficiencies in data envelopment analysis in management contexts mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best in this capacity mathematical programming serves as a planning aid to management data envelopment analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments however they may have been planned or executed mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities the ccr ratio form introduced by charnes cooper and rhodes as part of their data envelopment analysis approach comprehends both technical and scale inefficiencies via the optimal value of the ratio form as obtained directly from the data without requiring a priori specification of weights and or explicit delineation of assumed functional forms of relations between inputs and outputs a separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of dea directly on observational data technical inefficiencies are identified with failures to achieve best possible output levels and or usage of excessive amounts of inputs methods for identifying and correcting the magnitudes of these inefficiencies as supplied in prior work are illustrated in the present paper a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing constant or decreasing returns to scale in multiple input and multiple output situations the results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with contestable market theories

a welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment abstract this paper constructs a north south quality ladder model in which foreign direct investment fdi is determined by the endogenous location choice of firms and examines analytically how strengthening patent protection in the south affects welfare in the south strengthening patent protection increases the south s welfare by enhancing innovation and fdi but it also allows the firms with patents to charge higher prices for their goods which decreases welfare however the model shows that the former positive welfare effect outweighs the latter negative effect moreover introducing the strictest form of patent protection in the south that is harmonizing patent protection in the south with that in the north may maximize welfare in the south as well as in the north further a similar result can also be obtained in a nonscale effect model

on nonparametric supply response analysis in this paper we explore the usefulness of nonparametric methods in the investigation of production behavior and the estimation of price elasticities of output supply and input demand functions the approach can handle the situation where some data points are not consistent with production theory the method is illustrated by estimating supply demand elasticities of outputs and inputs in u s agriculture

applied cost allocation the dea aumann shapley approach this paper deals with empirical computation of aumann shapley cost shares for joint production we show that if one uses a mathematical programing approach with its non parametric estimation of the cost function there may be observations in the data set for which we have multiple aumann shapley prices we suggest to overcome such problems by using lexicographic goal programing techniques moreover cost allocation based on the cost function is unable to account for differences between efficient and actual cost we suggest to employ the notion of rational inefficiency in order to supply a set of assumptions concerning firm behavior these assumptions enable us to connect inefficient with efficient production and thereby provide consistent ways of allocating the costs arising from inefficiency

hyperbolic efficiency and return to the dollar abstract this paper after establishing the relations between hyperbolic graph measure of technical efficiency and the radial measures of technical efficiency shows that the dual cost and revenue interpretation of the hyperbolic efficiency measure is related to georgescu roegen s notion of return to the dollar n georgescu roegen in koopmans t ed activity analysis of production and allocation wiley new york 1951 pp 98 115 once this relation is established it leads to a derivation of an allocative efficiency index which measures the price distortions using data on observed costs and revenues without requiring information on prices

resource dependency and institutional theory perspectives on direct and indirect export choices this article develops and tests resource dependency and institutional theory arguments to explain two choices facing sme owner managers 1 the decision whether to export or not and 2 if the firm exports the choice between a direct to customers abroad and an indirect using another firm as intermediary export mode binomial logistic regressions on our sample of 871 dutch smes suggest that institutional theory perspectives owner managers perception of the increased international presence of their domestic competitors customers and suppliers and perceptions of increased use of foreign suppliers explain the decision to export while resource dependency theory arguments owner managers perception of the favorability of access to knowledge and technology of production costs and of access to capital in the home market guide the choice between direct and indirect export modes

non parametric productivity analysis with undesirable outputs an application to the canadian pulp and paper industry this article extends the chavas cox approach to non parametric analysis by incorporating undesirable outputs to provide a more complete representation of the production technology inner and outer non parametric technology bounds are constructed the methods are illustrated with application to time series data for the canadian pulp and paper industry conventional measures that ignore changes in pollutant outputs underestimate true productivity growth further there is a large gap between estimates generated with reference to inner and outer bounds to the technology suggesting that researchers need to be aware of the limitations of results derived from analyses relying only on dea methods copyright 2001 oxford university press

offshore outsourcing as a source of international competitiveness for smes scholars typically view offshore outsourcing as a means of reducing the cost of manufacturing activities for large corporations yet offshore outsourcing may entail administrative and technical services and may include activities outsourced by small and medium sized enterprises smes drawing on research in international entrepreneurship and services we hypothesize and find evidence that offshore outsourcing of administrative and technical services by smes is associated with greater extent and scope of internationalization of sales offshore outsourcing enhances international competitiveness by enabling smes to reduce costs expand relational ties serve customers more effectively free up scarce resources and leverage capabilities of foreign partners

non parametric analysis of multi output production with joint inputs we focus on analysing cost minimising production behaviour in multi output settings we distinguish between two approaches for modelling the use of joint inputs the cooperative approach assumes cost minimisation at the aggregate firm level while the non cooperative approach assumes cost minimisation at the level of the individual output division our framework extends the existing non parametric framework for analysing single output production an empirical application to the english and welsh drinking water and sewerage sector shows the practical usefulness of our framework specifically we compare the empirical validity of the cooperative and non cooperative models for describing the observed production behaviour

international versus domestic entrepreneurship new venture strategic behavior and industry structure abstract international entrepreneurship is defined in this study as the development of international new ventures or start ups that from their inception engage in international business thus viewing their operating domain as international from the initial stages of the firm s operation one hundred and eighty eight new venture firms in the computer and communications equipment manufacturing industries are classified according to the percentage of their sales in the international market ventures with no sales derived from international activities are considered domestic new ventures and ventures with sales from international activities comprising greater than 5 of total sales are considered international new ventures the strategy and industry structure profiles of international new ventures are significantly different from domestic new ventures the internationals pursue much broader market based strategies seeking a strategy of broad market coverage through developing and controlling numerous distribution channels serving numerous customers in diverse market segments and developing high market or product visibility the internationals also emphasize a more aggressive entry strategy building on outside financial and production resources to enter numerous geographical markets on a large scale securing patent technology is also an important component of their strategy this suggests that the internationals compete by entering the industry on a large scale seeking to penetrate multiple markets with the recognition that external resources are necessary to support such an entry whereas both the domestics and the internationals characterize domestic competition as being relatively intense the international new ventures compete in industries with higher levels of international competition it is not clear from this research whether the new venture selects an industry with a high degree of international competition and therefore responds with an international orientation or because the new venture has an international orientation it perceives or recognizes a higher degree of international competition another industry structure difference is the internationals perceived higher degree of restrictiveness due to government regulation it is unclear whether this restrictiveness motivates new ventures to seek less regulated international environments or if it indicates that when competing internationally the new venture is confronted with increased regulatory requirements domestic new ventures are distinguished by their emphasis on a production expansion strategy and customer specialization strategy the production specialization strategy consists of focusing on limited geographical markets maintaining excess capacity and pursuing forward integration the customer specialization strategy incorporates the production of a specialty product that is purchased infrequently thus for both of the domestic strategies a consistent closeness between the producer and consumer is implied this may be an important basis underlining the new venture s decision to compete in an exclusive domestic context this study offers initial support for the notion of international entrepreneurship by its findings that there are significant differences between new venture firms competing domestically and new ventures choosing to also enter international markets

three methods to share joint costs or surplus abstract we study cost sharing methods with variable demands of heterogeneous goods additive in the cost function and meeting the dummy axiom we consider four axioms scale invariance si demand monotonicity dm upper bound for homogeneous goods ubh placing a natural cap on cost shares when goods are homogeneous average cost pricing for homogeneous goods acph the random order values based on stand alone costs are characterized by si and dm serial costsharing by dm and ub the aumann shapley pricing method by si and acph no other combination of the four axioms is compatible with additivity and dummy journal of economic literature classification numbers c71 d62 d63

u k smes decision to discontinue exporting an exploratory investigation into practices within the clothing industry abstract although the decision to internationalise has been viewed in certain studies as an entrepreneurial act research has also indicated that some firms may be better served in concentrating on their domestic market depending on a number of internal and external considerations associated with the profitable exploitation of identified opportunities this investigation reports on first reasons why a sample of executives from small firms discontinued export activities and second perceptions towards policy assistance that may motivate them to recommence overseas activities in the future analysis in this study establishes that differences exist between two distinct groups of firms namely those indicating their discontinuation of exporting was a short term measure compared with those that viewed the decision as longer term entrepreneurial learning was found to be present in firms that influenced some managers to overcome identified obstacles and engage in alternative modes of international activity to the export route whereas others decided to pursue domestic opportunities the study provides recommendations for policymakers in the provision of trade assistance programs

a generalized distance function and the analysis of production efficiency a generalization of shephard s distance functions is proposed extending the usefulness of distance functions in economic analysis applications to efficiency measurements and productivity analysis are presented new indexes of productivity and technical allocative and scale efficiency are proposed and analyzed interpretation of these indexes in terms of ray average cost ray average revenue and cost to revenue ratio is discussed

a comparative application of data envelopment analysis and translog methods an illustrative study of hospital production this paper compares inferences about hospital cost and production correspondences from two different estimation models 1 the econometric modeling of the translog cost function and 2 the application of data envelopment analysis dea while there are numerous examples of the application of each approach to empirical data this paper provides insights into the relative strengths of the estimation methods by applying both models to the same data the translog results suggest that constant reruns are operant whereas the dea results suggest that both increasing and decreasing returns to scale may be observed in different segments of the production correspondence in turn suggesting that the translog model may be averaging diametrically opposite behavior on the other hand by examining the rate of output transformation both models agree that patient days devoted to care of children are more resource intensive than those devoted to adults or to the elderly in addition we compare estimates of technical efficiencies of individual hospitals obtained from the two methods the dea estimates are found to be highly related to the capacity utilization but no such relationship was found for the translog estimates this comparative application of different estimation models to the same data to obtain inferences about the nature of underlying cost and production correspondences sheds interesting light on the strengths of each approach and suggests the need for additional research comparing estimation models using real as well as simulated data

resources of the firm russian high technology startups and firm growth abstract russia possessed many world class technologies prior to the break up of the soviet union entrepreneurial endeavors resulted from this technological ability as market forces encouraged individuals to leave the large state enterprises that produced those technologies founding characteristics of the firm impact the resources that are available to the startup firm this study investigates the extent to which founding factors in russia help high technology firms to prosper it was found that the team establishing the business mitigated the liability of newness however in contrast to the us the culture of russia does not produce negative results if the founding team grows very large additionally it was shown that firms that pursued more technological products and enter the market later performed best

an investigation into the overseas expansion of small asian owned u k firms this paper contributes to the growing body of knowledge in international entrepreneurship by reporting on a qualitative empirical investigation into the overseas expansion processes of small asian originating from the indian sub continent owned firms operating in the u k clothing industry the key decision makers within these firms frequently identified themselves as an active and important influence upon the actual activities of their firms as international operators for some firms though a more passive approach to internationalisation could be identified whereby the receipt of unsolicited orders had an effect on some firms timing of overseas market entry the balance between the nature of opportunities that frequently derived from cultural networks and the constraints of a limited resource base with which to exploit those opportunities also had a major impact on the direction and pace of certain firms overseas expansion the findings suggest a general tendency to adopt an incremental approach to internationalisation within this mature trade sector the cultural and business experience of managers however was found to have an effect on the pace and direction of the overseas expansion recommendations on the likely efficacy and effectiveness of public private sector interaction within the area of international entrepreneurship involving entrepreneurs from asian backgrounds are offered

corporate ventures into industrial markets dynamics of aggressive entry abstract this article reports a study of the effect of aggressive entry by firms venturing into new industrial markets there are three main sets of results first there is a significant correlation between the competitive attractiveness of the target industry and the initial share objective set by the corporation venturing into that industry second the downstream share objective set at the launch of the venture is significantly correlated with several key marketing strategy and investment strategy options made by the firm at the start of operations third if most of these key strategy decisions are made under the assumption that a high share position will rapidly be achieved their resulting performance in terms of both market share and roi is superior to firms which enter with less aggressive share aspirations these results are particularly appealing to the large established firm which has the resources and thus can both afford to absorb the cost of failure and afford to make significant front end investments in aggressive initial marketing expenses and investments in initial plant capacity for such firms a feasible strategy for a new venture into an industrial market could be to if possible but not essential seek industries markets to enter which are less likely to provoke rivalrous responses set aggressive market share targets invest aggressively in initial plant capacity develop aggressive sales force sales promotion advertising service quality and or pricing programs relative to competitors as appropriate to the particular industry being entered the reason we suggest that the programs be aggressive as appropriate is that different strategic options are likely to be more effective in one industry than another for instance aggressive advertising and sales promotions could be more effective for consumables while aggressive sales calling programs and superior service delivery could be the more effective route for capital goods businesses

energy productivity growth in the dutch greenhouse industry profitability of dutch greenhouse firms is largely dependent on energy costs and policy makers focus on reducing the use of energy by these firms this article uses russell measures of te to develop indicators of energy productivity growth results show that energy productivity grew by 2 8 annually in the period 1976 95 with technical progress being the key factor driving the process of productivity growth from this we conclude that policies aiming at enhancing the adoption of technological innovations are more effective if due attention is paid to measures for improving te

licensing versus direct investment implications for economic growth we develop a symmetric two country model of foreign direct investment fdi that captures the internalization decision and its implications for both the rate and magnitude of innovations when mode choice licensing versus fdi is fixed a subsidy to multinational production increases the rate but decreases the size of innovations when mode can switch the rate and size of innovations both increase provided the subsidy is not too large although innovation size decreases for industries where firms already were choosing fdi innovation size increases for industries where firms switch from licensing to fdi because multinationals choose larger innovations than licensors 2002 elsevier science b v all rights reserved

non parametric production analysis in non competitive environments we extend the non parametric methodology for empirical production analysis to deal with endogenous prices as price endogeneity is often complemented by price uncertainty we consider both the case of certain prices and the case of uncertain prices the extensions are fully compatible with existing tools for eliciting and representing technology and price information and preserves the tractable mathematical programming structure of the original methodology an empirical application to the dutch electricity distribution sector illustrates our extension

a market performance comparison of u s firms active in domestic developed and developing countries direct foreign investment dfi may benefit investors through superior cash flows or lower risk relative to purely domestic firms this paper considers three groups of u s firms those without significant international operations those with international operations in developed countries and those with international operations in developing countries after performing risk return performance analysis on the three groups the findings show developing country dfi results in inferior performance but that there are no statistically significant differences in market performance among the three

effects of post privatization governance and strategies on export intensity in the former soviet union the fall of the soviet union brought new enterprise opportunities whose exploitation required the development of entirely new strategies simultaneously enterprises faced crucial constraints in their governance structures this paper analyzes the impact of governance structures of privatized firms on one key outcome of new strategies export intensity using a longitudinal multi industry dataset of privatized firms in russia ukraine and belarus we analyze how export intensity is mediated by strategies involving product development acquisitions and links with foreign partners

new venture internationalization strategic change and performance a follow up study abstract although many scholars business experts and government agencies enthusiastically advise all firms including new and small ventures to internationalize such advice does not appear to be based on empirical evidence few researchers have empirically examined the link between new venture performance and the internationalization of new ventures at best the evidence suggests that there is no significant relationship we used a sample of 62 u s new venture manufacturers in the computer and communications equipment industries during the late 1980s these industries were purportedly globalizing and may have been leading other industries into increased international operations we found that higher levels of internationalization percentage of foreign sales to total venture sales were associated with higher relative market share two years later however there was no significant direct relationship between percentage of international sales and subsequent return on investment roi perhaps international operations simply cost more than expected or perhaps as macmillan and day 1987 found in their study of corporate ventures over a 4 year time period increases in market share may be a prelude to higher roi as scale benefits translate into higher profitability however the 2 year time period of our study may simply not be long enough for investments in higher market shares to produce improved profits during the 2 year study period many of the ventures changed their level of internationalization of the 36 ventures who were domestic no international sales in the prior study 10 expanded into international markets over the 2 years of the 26 originally international ventures international sales of at least 5 half increased their percentage of international sales nine reduced it and four stayed the same whereas the average change in international sales percentage of the ventures was only 2 9 percentage points the large standard deviation of 13 0 percentage points and the leptokurtic distribution 9 2 reflected the dramatic changes made by some of the ventures using subgroup analysis we examined these changes in percentage of international sales in conjunction with changes in strategies and performance ventures that had increased international sales relative to those that had not exhibited more positive associations between the degree of strategic change and performance as measured in terms of both relative market share and roi increased international sales in technology based new ventures seems to require simultaneous strategic changes in order to positively impact venture performance this study is a follow up to mcdougall s 1989 finding that technology based new ventures that had sales in foreign markets had significantly different strategies than similar ventures that sold their products only domestically the current study enriches the previous findings by adding consideration of 1 changes in degree of internationalization 2 changes in strategy and 3 venture performance although we found no performance penalty associated with increasing international sales alone indiscriminant advice for new ventures to sell in foreign markets without other supporting strategic actions is inconsistent with our findings internationalization alone did not lead to increased profitability entrepreneurs of young technology based firms who are considering internationalization should take heed of our results internationalization of sales does not appear to be a simple matter of applying established strategies and procedures developed for a domestic arena successful internationalization appears to require changes in the venture s strategy as well

measuring economic efficiency with incomplete price information with an application to european commercial banks measuring economic efficiency requires complete price information while resorting to technical efficiency exclusively does not allow one to utilise any price information in most studies at least some information on the prices is available from theory or practical knowledge of the industry under evaluation in this paper we extend the theory of efficiency measurement to accommodate incomplete price information by deriving upper and lower bounds for farrell s overall economic efficiency the bounds typically give a better approximation for economic efficiency than technical efficiency measures that use no price data whatsoever from an operational point of view we derive new data envelopment analysis dea models for computing these bounds using standard linear programming the practical application of these estimators is illustrated with an empirical application to large european union commercial banks

some unsolved problems in data envelopment analysis a survey abstract the present study is a survey of a set of inherent characteristics and unsolved problems in current dea models we will focus on what types of local characteristics the dea estimated technology exhibits in relation to non jointness of a multi output multi input production no indicators are currently available telling the analysts whether or not the structure in data supports the existence of a joint technology if the estimated ccr technology has a sparse facet structure in the sense that few facets are active for output vectors in certain cones of the output space then the multi output multi input ccr technology is possibly locally non joint another important field of research relates to the inclusion of explicit distributional assumptions as part of the dea model specification and to the extension of the dea estimation from an estimation of a deterministic frontier towards an estimation of a stochastic frontier some recent results will be compared finally measures of scale economies from parametric models and dea models will be compared

international entrepreneurship in internet enabled markets abstract despite the increasing numbers of businesses that are already using the internet to pursue international opportunities and the latent potential for such activity from rising internet adoption levels the international entrepreneurship literature has paid limited attention to the phenomenon to address this gap we review past research in international entrepreneurship as well as the broader fields of entrepreneurship international business marketing management and management information systems to identify firm level resources that are associated with the successful pursuit of international opportunities in internet enabled markets we identify three such internet related firm level resources online reputation online technological capabilities and online brand communities we develop a propositional inventory of the expected relationships identify measures expected to be useful to future scholars in this area and present the implications of our review for future international entrepreneurship research

estimation of profit functions when profit is not maximum this paper deals with derivation and implications of profit functions when profit is not maximum due to the presence of either technical inefficiency or allocative inefficiency or both we show that input demand and output supply elasticities and returns to scale are in general affected by these inefficiencies we also show that the overall profit efficiency is not necessarily the product of technical and allocative efficiencies meaning that technical and allocative inefficiencies are not necessarily independent estimation techniques are developed for both cross sectional and panel data models working of the model is illustrated using a panel of 60 salmon farms copyright 2001 oxford university press

frontier production functions and technical efficiency measures the concept of technical efficiency is central to measuring the firm performance the measurement of technical efficiency has proved difficult and complex and the literature provides a range of methodologies this paper reviews the various methodologies for measuring technical efficiency and offers a comparison between established methods of measurements the discussion is literary with less mathematical jargons and equations the objective of this paper is not to be exhaustive but to be up to date and to provide a significant discussion on some of the core methods of measuring technical efficiency

incomplete contracts and the product cycle the incomplete nature of contracts governing international transactions limits the extent to which the production process can be fragmented across borders in a dynamic general equilibrium ricardian model of north south trade the incompleteness of international contracts is shown to lead to the emergence of product cycles because of contractual frictions goods are initially manufactured in the north where product development takes place as the good matures and becomes more standardized the manufacturing stage of production is shifted to the south to benefit from lower wages following the property rights approach to the theory of the firm the same force that creates product cycles i e incomplete contracts opens the door to a parallel analysis of the determinants of the mode of organization the model gives rise to a new version of the product cycle in which manufacturing is shifted to the south first within firm boundaries and only at a later stage to independent firms in the south relative to a world with only arm s length transacting allowing for intrafirm production transfer by multinational fi rms is shown to accelerate the shift of production towards the south while having an ambiguous effect on relative wages the model delivers macroeconomic implications that complement the work of krugman 1979 as well as microeconomic implications consistent with the findings of the empirical literature on the product cycle

intellectual property rights and foreign direct investment abstract this paper develops a product cycle model with endogenous innovation imitation and foreign direct investment fdi we use this model to determine how stronger intellectual property rights ipr protection in the south affects innovation imitation and fdi we find that stronger ipr protection keeps multinationals safer from imitation but no more so than northern firms instead the increased difficulty of imitation generates resource wasting and imitation disincentive effects that reduce both fdi and innovation the greater resources absorbed in imitation crowd out fdi reduced fdi then transmits resource scarcity in the south back to the north and consequently contracts innovation

efficiency and productivity of french ski resorts abstract this paper analyses french ski resorts productivity with the luenberger productivity indicator lpi based on the directional distance function it permits the calculation of a productivity indicator that is decomposed into technical efficiency change and technological change the conclusions are that productivity decreased for the majority of french ski resorts which is almost always explained by technological change finally the mixed results do not establish a clear relationship between the ski resorts size and productivity therefore the kruskal wallis test is used to statistically verify this relationship managerial implications are derived from this study

undesirable outputs in efficiency valuations abstract efficiency measurement is usually based on the assumption that inputs have to be minimized and outputs have to be maximized in a growing number of applications however undesirable outputs are incorporated into the production model which have to be minimized in this paper various approaches for treating such outputs in the framework of data envelopment analysis dea are discussed and the resulting efficient frontiers are compared new radial measures are introduced which assume that any change of the output level will involve both undesirable and desirable outputs

estimating most productive scale size using data envelopment analysis abstract the relation between the most productive scale size mpss for paparticular input and output mixes and returns to scale for multiple inputs multiple outputs situations is explicitly developed this relation is then employed to extend the applications of data envelopment analysis dea introduced by charnes cooper and rhodes ccr to the estimation of most productive scale sizes for convex production possibility sets it is then shown that in addition to productive inefficiencies at the actual scale size the ccr efficiency measure also reflects any inefficiencies due to divergence from the most productive scale size two illustrations of the practical applications of these results to the estimation of most productive scale sizes and returns to scale for hospitals and stem electric generation plants are also provided emphasize the advantage of this method in examining specific segments of the efficient production surface

internationalization and the performance of born global smes the mediating role of social networks this paper offers a social network explanation for the purported relationship between internationalization and firm performance in the context of born global small and medium enterprises smes we argue that home based social networks play a mediating role in the relationship between inward and outward internationalization and firm performance the mediating mechanism is attributed to three information benefits of social networks 1 knowledge of foreign market opportunities 2 advice and experiential learning and 3 referral trust and solidarity using survey data from smes in the largest emerging economy of china we found some support for this mediating role of social networks in the form of guanxi the results imply that international business managers should consider social networks as an efficient means of helping internationally oriented smes to go international more rapidly and profitably

privatization of nippon telegraph and telephone was it a good policy decision nippon telegraph and telephone ntt corporation was privatized in 1985 under the economic assertion that a public enterprise is less efficient and less profitable than a private enterprise this assertion is referred to as the property right theory in economics and it is used as a theoretical rationale for privatizing publicly owned organizations this article empirically examines the economic assertion by comparing ntt s performance before and after its privatization data envelopment analysis dea is used as the research tool in this study which confirmed the economic assertion in terms of production based efficiency measures but it cannot find any major difference in its cost reducing corporate efforts thus this study presents serious management problems occurring within the ntt s partial privatization the partial privatization is now prevailing in the telecommunications industry all over the world this article also discusses the japanese business environment which makes ntt managerially ineffective under its public private joint ownership

the law of one price in data envelopment analysis restricting weight flexibility across firms abstract the law of one price loop states that all firms face the same prices for their inputs and outputs under market equilibrium taken here as a normative condition for efficiency prices this law has powerful implications for productive efficiency analysis which have remained unexploited thus far this paper shows how loop based weight restrictions can be incorporated in data envelopment analysis dea utilizing the relation between industry level and firm level cost efficiency measures we propose to apply a set of input prices that is common for all firms and that maximizes the cost efficiency of the industry our framework allows for firm specific output weights and for variable returns to scale and preserves the linear programming structure of the standard dea we apply the proposed methodology to the evaluation of the research efficiency of economics departments of dutch universities this application shows that the methodology is computationally tractable for practical efficiency analysis and that it helps in deepening the dea analysis

a household based nonparametric test of demand theory a nonparametric test of demand theory determining the consistency of price expenditure data with the generalized axiom of revealed preference is applied to household macroeconomic data for the first time the fraction of consumption bundle comparisons that violate the generalized axiom of revealed preference is proposed as a summary statistic to indicate the consistency of a data set with revealed preference axioms this violation rate is calculated among consumption pairs with similar expenditures to increase the power of the test the results suggest that similar households consumption choices and budget constraints are generally consistent with the joint hypotheses of optimizing behavior and common preferences copyright 1995 by mit press

characterizing an equitable allocation of shared costs a dea approach abstract in many applications to which dea could be applied there is often a fixed or common cost which is imposed on all decision making units this would be the case for example for branches of a bank which can be accessed via the numerous automatic teller machines scattered throughout the country a problem arises as to how this cost can be assigned in an equitable way to the various dmus in this paper we propose a dea approach to obtain this cost allocation which is based on two principles invariance and pareto minimality it is shown that the proposed method is a natural extension of the simple one dimensional problem to the general multiple input multiple output case

performance following changes of international presence in domestic and transition industries we examine relationships between firm performance and changes in international presence in five medical sector industries between 1978 and 1989 conditioned on the international status of the industries and the market position of the firms international expansion was necessary for survival when foreign firms began to enter a domestic market but only firms with substantial market share and international experience gained prior to the industry transition could expand successfully operating only in the home market may permit a firm to survive in a primarily domestic industry but moderate international expansion often brings current benefits and provides a base for future success should the industry become more global however expansion carries the risk of failure firms that retrench after expanding internationally disappear

intellectual property rights and foreign direct investment a welfare analysis abstract this paper examines how intellectual property rights ipr protection affects innovation and foreign direct investment fdi using a north south quality ladder model incorporating the exogenous and costless imitation of technology and subsidy policies for both r d and fdi we show that for the interior steady state to be stable either r d or fdi subsidy rates must be positive our findings also indicate that strengthening ipr protection promotes both innovation and fdi moreover a strengthening of ipr protection can also improve welfare if the initial ipr protection in the south is weak and the r d subsidy rate is not too high

piecewise loglinear estimation of efficient production surfaces linear programming formulations for piecewise loglinear estimation of efficient production surfaces are derived from a set of basic properties postulated for the underlying production possibility sets unlike the piecewise linear model of banker charnes and cooper banker r d a charnes w w cooper 1984 models for the estimation of technical and scale inefficiencies in data envelopment analysis management sci 30 september 1078 1092 this approach permits the identification of increasing marginal products and estimation of the classical s shaped production functions methods are also provided for estimating technical inefficiencies and other production characteristics such as rates of substitution and transformation marginal products returns to scale and most productive scale sizes on the basis of observed production data the results of a simulation study are reported to illustrate the usefulness of this estimation method in empirical applications when there are a priori reasons to expect increasing marginal products in some regions of the production function a modified model is provided to extend this analysis to the situation of non competing outputs addressed by the bi extremal model of banker charnes cooper and schinnar banker r d a charnes w w cooper a schinnar 1981 a bi extremal principle for frontier estimation and efficiency evaluation management sci 27 december 1370 1382

a goal programming method of stochastic allocative data envelopment analysis abstract allocative data envelopment analysis adea is a version of data envelopment analysis dea which measures relative efficiency for a group of similar operating units with known input prices by using the actual input values adea provides information to managers on the minimum cost method of operation for each unit a major criticism of dea methods is that they are deterministic and have no means of allowing for uncertainty this paper applies the goal programming approach introduced by banker 1991 to allocative efficiency and develops the stochastic adea model a two stage solution method is introduced which is needed because of the existence of alternate optimal solutions regarding which units are found to be significantly inefficient we propose that identifying the significantly inefficient units is most useful to managers because it best facilitates improved efficiency the concept of a minimum frontier is introduced and used to define the significantly inefficient units we also show how bounds can be imposed which allow the ambiguity of the noise inefficiency trade off to be eliminated from the objective function the use of bounds also allows the identification of the significantly inefficient unit based on the amount of uncertainty present for each operating unit as a result of optimizing cost this method has the important advantage of being ideally suited for multiple outputs

a theory of international new ventures a decade of research oviatt and mcdougall s jibs article identified and defined international new ventures invs and their prominent role in the global marketplace the article spurred worldwide interest in invs by raising questions about the validity and efficacy of existing theory especially about the uppsala process model of internationalization the article also laid an important theoretical foundation for research into international entrepreneurship ie where younger and wellestablished companies use their entrepreneurial activities to create value as they internationalize their operations this paper reviews oviatt and mcdougall s original propositions highlighting their important contributions to the field the paper also highlights the progress made in research using oviatt and mcdougall s framework the major debates that persist about the nature and role of invs the source of their competitive advantages and the key issues to be explored in future research

patent protection innovation and technology transfer in a schumpeterian economy abstract this paper analyzes the cross country effects of intellectual property rights ipr protection on the relative wage innovation and technology transfer in a north south quality ladder model with innovative northern r d and adaptive southern r d the degree of ipr protection in two countries differs in terms of patent breadth which determines the markups of northern firms and their southern affiliates respectively in this model stronger ipr protection in the south leads to a permanent decrease in the north south wage gap a temporary increase in the northern innovation rate and a permanent increase in technology transfer by contrast stronger ipr protection in the north leads to a permanent increase in the north south wage gap ambiguous effects on the northern innovation rate and a permanent decrease in technology transfer finally we perform a quantitative analysis by calibrating the model to the us china data and the numerical results support these policy implications in addition to a welfare implication such that strengthening patent protection in one country leads to sizable welfare improvements in both countries

multinational corporations vs domestic corporations financial performance and characteristics the analysis in this paper is composed of two segments first the financial performance of a sample of multinational corporations mncs is compared with that derived for a control group of domestic corporations dmcs using market based performance measures then the paper presents a comparison of selected financial characteristics of the firms in the two groups the results suggest the dmcs appear to have a significantly superior risk adjusted market based performance are significantly less capitalized and have higher total risk as well as higher systematic risk the fact that mncs are substantially larger than dmcs is not found to be a significant factor in explaining the observed difference between the two groups performance

testing data for consistency with revealed preference the author develops a method of hypothesis testing for revealed preference tests this method is particularly well suited to tests of commonality of tastes or tests of preference stability he devises a metric based on an estimate of the fraction of expenditure wasted in maximizing utility if all consumers in the sample share the same utility function this metric increases in size with increases in the proportion of observations having different tastes and with increasing differences in tastes the author proposes bootstrap methods for estimating the distribution of the test statistic copyright 1995 by mit press

differential impact of korean banking system reforms on bank productivity abstract we study the impact of banking system reforms during a crisis following a period of undisciplined lending regulatory changes aimed at strengthening the banks capital structure and risk management practices do not have a uniform impact on bank productivity but rather favor financially sound or strategically privileged banks we present evidence documenting the differential impact of regulatory reforms on korean commercial bank productivity over the period 1995 2005 average technical efficiency of banks decreased during the financial crisis of 1997 1998 it improved following the subsequent bank restructuring and continued to improve through 2005 the capital adequacy ratio is positively associated with banks technical efficiency the non performing loans ratio is negatively associated with technical efficiency both relationships are accentuated during the crisis but attenuated after the reforms

the luenberger indicator and productivity growth a note on the european savings banks sector we employ the luenberger productivity indicator to estimate productivity growth and its decomposition into technical change and efficiency change components for savings banks sectors in 10 eu countries between 1996 and 2003 the luenberger indicator requires less restrictive assumptions than standard nonparametric productivity indexes and it allows the assumption of profit maximization to be made for sample firms we estimate average productivity growth in the savings banks sector to be 2 78 per annum and driven almost entirely by technical change whilst the general results confirm earlier findings this study is one of the earliest to identify cross border differences in productivity growth in the savings banks sector

nonparametric analysis of technical and allocative efficiencies in production in this paper we extend varian s 1984 nonparametric production analysis to situations when the set of observed output input and price data is not consistent with profit maximization for at least one firm in such cases varian s results imply that no production possibility set containing all observations can rationalize the observed data we identify each firm whose performance given the prices faced by it may be found consistent with profit maximization relative to some production possibility set containing all observed output input vectors we show that the set 4 of all such firms can itself be weaklv rationalized in the sense that there exists a closed convex and monotone production possibility set that contains all the observations and relative to which the performance of all the firms in the set 8o is consistent with profit maximization given their respective prices by definition firms not included in this largest set d of efficient observations unambiguously deviate from profit maximizing behavior for any production possibility set containing all observations we follow farrell 1957 and analyze these deviations into technical and allocative efficiency measures considering as admissible all closed convex and monotone production possibility sets relative to which the performance of each firm in the set g remains consistent with profit maximization we then describe nonparametric methods for determining the tightest upper and lower bounds on the technical allocative and aggregate efficiency measures evaluated relative to all such admissible production possibility sets it is seen that the tightest upper bound on the technical efficiency measure is the same as the value computed by the nonparametric efficiency evaluation technique known as data envelopment analysis thus establishing a link between this literature in management science operations research and the nonparametric production analysis in economics

analysis of trends in technical and allocative efficiency an application to texas public school districts abstract we present a new dea based method to analyze efficiency trends over time and differences across subgroups in a panel data setting we employ a result that the aggregate technical and allocative inefficiency score equals the technical inefficiency when input quantities are aggregated into a single total input cost variable and develop test procedures to evaluate the presence of allocative inefficiency we apply these methods to test for the presence of allocative inefficiency in texas school districts over 1993 99 and analyze shifts and trends in both technical and allocative inefficiencies over time for different regions our empirical results indicate the existence of statistically significant allocative inefficiencies while technical inefficiency increased over the six year sample period allocative inefficiency remained relatively stable during this period these results for the full sample obtain also when we repeat the analysis for different regions

the knowledge network of international entrepreneurship theory and evidence the knowledge network associated with the young and emerging field of international entrepreneurship is defined through a bolean search progression of key words on the ssci data bases from 1992 to 2000 the knowledge network of an applied field portrays and usually follows the actual developmental path of its corresponding field some 287 articles document the early emergence of international entrepreneureship as a field of scholarly inquiry when a field is young and in need of theoretical foundations the knowledge networks of other fields may provide for those early needs this is the case of international entrepreneurship the rich theoretical foundations of the two fields of international business and entrepreneureship among others have nourished and accelerated the internationalization process of entrepreneurship a detailed analysis of 7 651 citations contained in the contributions of the 287 documents reported here traces international entrepreneurship s rich yet young developmental path this analysis reveals a wealth of information for example the lists of highly cited books articles authors and their affiliated institutions presented here

allocating fixed costs and resources via data envelopment analysis abstract in this paper we show that data envelopment analysis dea can be viewed as maximising the average efficiency of the decision making units dmus in an organisation building upon this we present dea based models for a allocating fixed costs to dmus and b allocating input resources to dmus simultaneous to allocating input resources output targets are also decided for each dmu numeric results are presented for a number of example problems taken from the literature

measuring economic efficiency with incomplete price information abstract this note identifies and corrects a technical error in t kuosmanen g t post eur j oper res 134 2001 43 58

firm and industry level profit efficiency analysis using absolute and uniform shadow prices we discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information two new insights are developed first we measure profit inefficiency in monetary terms using absolute shadow prices second we evaluate all firms using the same input output prices this allows us to aggregate firm level profit inefficiencies to the overall industry inefficiency besides the measurement of profit losses the presented approach enables one to recover absolute price information from quantity data we conduct a series of monte carlo simulations to study the performance of the proposed approach in controlled production environments

sme internationalization modes in the german biotechnology industry the influence of imitation network position and international experience in this article we reveal how network enabled imitation processes impact young small and medium sized enterprises smes internationalization and how a firm s network position as well as its experiential knowledge moderate imitative behavior in internationalization modes building on institutional network and organizational learning theory we suggest that firms imitate the internationalization modes of their peers in their network moreover we argue that a firm s imitation propensity depends on two important boundary conditions network position and past experience applying a longitudinal event history analysis to analyze the complete population of 977 german biotechnology firms between 1996 and 2012 largely supports our hypotheses our findings reveal that firms imitate the internationalization modes of their peers in a precise manner this implies that the imitation of others can initially serve as a presumably convenient low risk shortcut to a planned or experience driven internationalization process furthermore our results confirm that this imitation process is channeled through formal network relations and that central network positions that are associated with superior information access enhanced legitimacy and status may promote deviating behavior acknowledging the interplay of different learning sources our findings additionally show that initial internationalization mode choices of smes can have a lasting effect on subsequent internationalization behavior overall our study contributes to a more nuanced view of imitative behavior of internationalizing smes and its boundary conditions and highlights future research opportunities that exist for considering imitation and its implications in international business research

on the trade growth and welfare effects of intellectual property rights protection to examine how intellectual property rights protection affects trade growth and welfare i develop a two country r d based growth model in which final goods firms in both countries determine the range of imported varieties in the overall use of intermediate inputs i show that strengthening patent protection in either country increases the range of imported varieties of intermediate goods and stimulates economic growth in the country that strengthened patent protection moreover i also show that the nash equilibrium level of patent protection is stronger than the globally optimal level of patent protection i

alternative methods for environmentally adjusted productivity analysis abstract advances in the productivity with which food is produced around the world have been made possible through the intensive use of industrial inputs that have important environmental impacts like standard measures of macroeconomic performance however commonly used measures of agricultural efficiency and productivity account only for marketed commodities and inputs but ignore the environmental effects of these production processes a more complete analysis of trends in the sector s productivity requires the use of models that incorporate these environmental effects to provide better measures of the contributions of the sector from the social point of view this paper compares the conceptual merits and empirical performance of alternative approaches that can be employed for this purpose input distance functions output distance functions nonparametric methods and index number approaches each of the methods has relative strengths and weaknesses the methods are empirically illustrated using data from the canadian pulp and paper industry

economic efficiency and frontier techniques abstract most of the literature related to the measurement of economic efficiency has based its analysis either on parametric or on non parametric frontier methods the choice of estimation method has been an issue of debate with some researchers preferring the parametric and others the non parametric approach the aim of this paper is to provide a critical and detailed review of both core frontier methods in our opinion no approach is strictly preferable to any other moreover a careful consideration of their main advantages and disadvantages of the data set utilized and of the intrinsic characteristics of the framework under analysis will help us in the correct implementation of these techniques recent developments in frontier techniques and economic efficiency measurement such as bayesian techniques bootstrapping duality theory and the analysis of sampling asymptotic properties are also considered in this paper

stage dependent intellectual property rights inspired by the chinese experience we develop a schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment we show that optimal intellectual property rights ipr protection is stage dependent at an early stage of development the country implements weak ipr protection to facilitate imitation at a later stage of development the country implements strong ipr protection to encourage domestic innovation therefore the growth maximizing and welfare maximizing levels of patent strength increase as the country evolves towards the world technology frontier and this dynamic pattern is consistent with the actual evolution of patent strength in china