bluuebunny/crossref_metadata_2025 huggingface dataset:
STRATEGIC DECISIONS MADE BY TOP EXECUTIVES AND MIDDLE MANAGERS WITH DATA AND PROCESS DOMINANT STYLES
Authors: Nutt Paul C.
Published: May 2007

The influence of a manager's decision style in strategic decision‐making is explored using simulations. The Jungian style classification is extended to identify ‘data and process dominant’ styles of decision‐making. Managers with process dominant styles can use several types of data and managers with data dominant styles can apply various modes of data processing. Both the expanded and the traditional definitions of style are used as factors to explain how 79 top executives and 89 middle managers rated project simulations. Decision style is found to be a key factor in explaining the likelihood of taking strategic action and the risk seen in this action. Decisions made by top executives are more style dependent than those of middle managers. The extended definition of style reveals more about the preferences of top executives than traditional style categories.
ADOPTION, DISCONTINUATION AND RETENTION OF A CAPITAL GOOD INNOVATION
Authors: Mascarenhas Briance
Published: May 2007

An analysis of post‐innovation adoption behaviour revealed that over a third of adopters subsequently discontinued a capital good innovation. Innovation non‐adopters, discontinuers, and retainers exhibited sharp differences with respect to size, age, and multinationality. Paradoxically, while favourable economic conditions discouraged innovation adoption, organizations that adopted the innovation under these conditions were more likely to retain it.
DETERMINANTS OF STRATEGIC PLANNING SYSTEMS IN LARGE ORGANIZATIONS: A CONTINGENCY APPROACH*
Authors: Kukalis Sal
Published: May 2007

This study investigates the relationship among four design parameters of planning systems and five different firm and environmental characteristics. The impact of this multivariate relationship on organizational effectiveness is then examined using a sample of 115 large manufacturing firms. The findings show general support for the proposition that, in order to be effective, a strategic planning system should be designed in such a way that the specific situational setting of the firm is reflected in the design. The analysis also indicates that firms adopt a more flexible planning system ‐ captured here by two key variables, planning horizon, and frequency of plan reviews ‐ as the level of environmental complexity increases. Implications for future research are discussed.
CHAMPIONS OF CHANGE AND STRATEGIC SHIFTS: THE ROLE OF INTERNAL AND EXTERNAL CHANGE ADVOCATES*
Authors: Ginsberg Ari , Abrahamson Eric
Published: May 2007

Change advocates who participate in the process of strategy‐making can play an important role in enabling organizational adaptation. To examine the nature of this role, this article investigates the influence on strategic shifts of two such participants ‐ new members of the top management team and management consultants. Empirical findings suggest that managers see these two types of change agents as having two different kinds of influence on strategic shifts. Specifically, the change agent role of management consultants is viewed as one that creates pressure for change by helping to shape new managerial perspectives of the environment. In contrast, the change agent role of new members of the top management team is viewed as one that counteracts inertial forces that may block the implementation of change. These results suggest that management consultants may be much more useful in stimulating changes in the ways executives think about their environment than they are in implementing radical strategic changes. To overcome institutional resistance to extreme strategic shifts, organizations may need to resort to stronger political and symbolic actions, such as promoting or hiring new top executives in key leadership roles.
A LONGITUDINAL COMPARATIVE STUDY OF TWO JOINT VENTURES
Authors: Kent David H. , Hellriegel Don
Published: May 2007

A longitudinal comparative study of two joint ventures in the oil transportation industry illustrates the importance of organizational leadership, networking, and proactive strategies in the face of an increasingly hostile operating environment. Secondarily, this article represents a methodological approach based on grounded theory that effectively examines the complexities associated with large‐scale organizational dynamics.
A TEST OF PERFORMANCE SIMILARITY AMONG STRATEGIC GROUP MEMBERS IN CONFORMING AND NON‐CONFORMING INDUSTRY STRUCTURES
Authors: Lawless Michael W. , Tegarden Linda Finch
Published: May 2007

Empirical tests have produced mixed support for a membership‐performance link in strategic groups, perhaps due to incomplete treatment of industry forces. We argue that strategic group concept is more useful for explaining performance differences among firms in some industries (where conditions favour conformity in firm conduct) than others. Using three industry structure constructs as criteria, 47 four‐digit SIC industries are classified into ‘conforming’ or ‘non‐conforming’ industry samples. Firms are then clustered into strategic groups in a separate treatment for each sample. Performance differences among groups are tested under conforming and non‐conforming industry conditions. Tests confirm membership effects on ROA and ROE are significantly stronger in ‘conforming’ industries, where stronger regression relationships between conduct variables and performance also obtain.
TOWARDS A COMPREHENSIVE SYSTEM OF STRATEGIC CONTROL*
Authors: Preble John F.
Published: May 2007

New strategic initiatives often take several years to execute fully and relatively few succeed. Unfortunately, classical control processes have contributed to this situation because they have been designed as feedback systems that detect problems and deviations from planned results only after they have already occurred, and because the standards to which measurements are compared are assumed to be correct or good. Recent conceptual contributors to the strategic control literature have argued for anticipatory feedforward controls, that recognize a rapidly changing and uncertain external environment. These new systems are designed to operate on a continuous basis, checking and critically evaluating assumptions, strategies, and results. This article adds to these conceptual developments by providing and explicit strategic control component to deal with low probability, high impact threatening events, namely, special alert control. In an effort to make all the latest strategic control components operationally useful, mechanisms, methods, and approaches to their efficient implementation are presented and then summarized in tabular form. An overall strategic control process diagram is provided to act as a guide for future strategic control systems. The result is a more comprehensive and workable system of strategic control.
BOARD COMPOSITION FROM A STRATEGIC CONTINGENCY PERSPECTIVE
Authors: Pearce John A. , Zahra Shaker A.
Published: May 2007

This study examined the association between corporations’environments, strategies, and past performance and the composition of their boards of directors as measured by size and outside director representation. The environment, strategy and past performance were viewed as posing a strategic contingency; each of these sets could determine the success or failure of the company. Data on 119 Fortune 500 industrial companies for the 1983‐9 period were used. Canonical analysis showed that increased uncertainty of a firm's environment, use of external growth and diversification; reliance on leverage as a means of finance, and poor past financial performance were associated with large board size and increased outside representation in subsequent years. Most important, board composition was positively associated with future measurements of corporate financial performance.
ORGANIZATIONAL DECISION‐MAKING AS HIERARCHICAL LEVELS OF DRAMA*
Authors: Kriger Mark P. , Barnes Louis B.
Published: May 2007

In conducting a longitudinal examination of eight long‐term complex decision processes in two Fortune 500 heavy manufacturing companies the authors developed a six‐level framework of decision complexity. The levels range from: (1) instantaneous decision choices to (2) decision actions (3) decision events (4) mini‐decision processes (5) decision processes and (6) decision theatres. They vary in time, numbers of participants, and in the integrative effort required to formulate and implement them. Thus, one problem with the word ‘decision’is that it is used to mean many different things in organizational settings. Each lower level of ‘decision’was found to combine with ‘decisions’of the same level and to be embedded within higher levels, resulting in a nested hierarchy of simultaneously occurring processes.
STRATEGIC DECISIONS IN ORGANIZATIONS: RATIONAL AND BEHAVIOURAL VIEWS
Authors: Schoemaker Paul J. H.
Published: May 2007

Various models or lenses have been used to predict and understand strategic decisions in organizations. This article examines four classes: (1) the unitary rational; (2) the organizational; (3) the political; and (4) the contextual. They are conceptualized as stemming from different assumptions about goal congruency and co‐ordinative efficiency. the contextual view is especially highlighted, as it is a relatively new perspective, both organizationally and cognitively.

A brief discussion is offered of disciplines and findings that either support or refute some of these models. Possible syntheses and reconciliations of the four views are explored, focusing on: (1) assumptional fit; (2) level of analysis; (3) cost of fashioning collective rationality; (4) information processing limits in organizational design; and (5) the role of adaptation lags and disequilibrium. the article concludes with a call for a meta‐theory that places the various perspectives in a larger framework.
MANAGING FOR AUTONOMY IN JOINT VENTURES: A LONGITUDINAL STUDY OF UPWARD INFLUENCE*
Authors: Lyles Marjorie A. , Reger Rhonda K.
Published: May 2007

This article explores the relationships among influence, autonomy and control in a joint venture setting. It addresses the mechanisms available to joint venture (JV) managers to influence and gain compliance from parent firms. Control categories derived primarily from research on unified structures are explored in a new domain, an international joint venture. the beginning of new theory specific to relationships in joint ventures is developed based on causal maps of managerial perceptions. the results suggest that the use of upward influence to gain autonomy in a joint venture is different and more complex than in unified structures or among independent organizations.
ASSESSING PORTER'S (1980) MODEL IN TERMS OF ITS GENERALIZABILITY, ACCURACY AND SIMPLICITY
Authors: Miller A. , Dess G. G.
Published: May 2007

The Porter (1980) model of generic strategies is evaluated in terms of simplicity, accuracy (i.e., predictive and explanatory power), and generalizability, through an empirical analysis of PIMS data. Results lead to the following conclusions: (1) the simplicity of Porter's model captures much of the complexity inherent in strategic gestalts; (2) Porter's framework could be improved by viewing it as providing three important dimensions of strategic positioning rather than three (or four) distinct strategies; (3) performance norms vary significantly across strategic types, though Porter's predictions of performance are not entirely accurate; (4) strategies such as those described by Porter are possibly more contingent than generic, thus limiting the generalizability of some prescriptions implicit in the model.
FIRST‐MOVER ADVANTAGE: THE OPPORTUNITY CURVE
Authors: Patterson William C.
Published: May 2007

A model depicting first‐mover dynamics is proposed wherein certain types of strategic barriers activated by the first‐mover strategy figure prominently in preserving benefits in the time dimension. Strategic barriers conferring singularity (i.e. one‐time benefit) are considered to be the most effective preservers of first‐mover advantage. the theoretical model is tested empirically in a study of six major industries. Benefits operationalized as industry share and profit share were found to decline consistently with industry age according to an exponential function designated the opportunity curve.
STRATEGIC PLANNING AND FINANCIAL PERFORMANCE: MORE EVIDENCE*
Authors: Capon Noel , Farley John U. , Hulbert James M.
Published: May 2007

A recently published meta‐analysis of the impact of strategic planning on financial performance omitted a major study of corporate planning practice in Fortune 500 manufacturing firms. This article briefly reviews that study in light of the results of the meta‐analysis. Additional analysis examines performance and firm survival over a longer time period than in the original work. the overall conclusion is that a small but positive relationship between strategic planning and performance exists, and persists.
TOP MANAGEMENT TURNOVER AND CEO SUCCESSION: AN INVESTIGATION OF THE EFFECTS OF TURNOVER ON PERFORMANCE
Authors: Kesner Idalene F. , Dalton Dan R.
Published: May 2007

One strategic action which is often taken by firms in need of a turnaround is to bring in a new chief executive officer (CEO). Many observers argue, however, that having done this the new CEO must replace large numbers of top managers in order to effect a change in the firm's interactions and subsequent performance. Critics of this perspective insist that just the opposite is true. Substantial levels of turnover may only serve to further disrupt the organization decreasing performance still more. This controversy is addressed in the following study using a sample of 84 firms all of which experienced CEO succession during the year 1980. Analyses rely on a three‐year‐period pre‐succession and three‐year period post‐succession. Three hypotheses are proposed. First, poor performance prior to CEO succession leads to greater turnover afterward. Second, that turnover is curvilinearly related to performance after the succession. And, finally, that successor type (i.e. whether the CEO was an inside or outside candidate) is related to the level of turnover in upper level management positions in the post‐succession period. the results from tests of these hypotheses are presented, and the implications of these findings are discussed.
THE IRON FIST IN THE VELVET GLOVE: MANAGEMENT AND ORGANIZATION IN JAPANESE MANUFACTURING TRANSPLANTS IN WALES
Authors: Wilkinson Barry , Morris Jon , Munday Max
Published: May 2007

This paper assesses the transferability of a Japanese form of manufacturing organization to an alien institutional environment ‐ the Principality of Wales in the UK. After characterizing what we mean by a ‘Japanese form of manufacturing organization’ and the arrival of Japanese companies in Wales, we describe the forms of organization, day‐to‐day management and working practices which have been established. Our conclusion is that the Japanese form of manufacturing organization has been re‐created on Welsh soil, and that any ‘adaptations’ are not such as to alter the fundamental features of the new organizational form.
STRATEGY UNDER THE MICROSCOPE: STRATEGIC MANAGEMENT AND IT IN FINANCIAL SERVICES*
Authors: Knights David , Morgan Glenn
Published: May 2007

This article subjects the organizational theory literature on corporate strategy to critical scrutiny, arguing that both the ‘rational’and ‘processual’approaches to strategy generate analyses that are ahistorical and theoretically undeveloped. In their place, but focusing specifically on the financial services, we offer an alternative genealogically informed analysis. This indicates how the historical development of strategy discourses and practices are discontinuous and uneven across countries, sectors, companies and specialist spheres. In addition it suggests that corporate strategy has considerable impact on inter‐organizational relations and both ‘internal’(i.e. management and employees) and ‘external’(i.e. consumers) members of the organization. the article seeks to illustrate its arguments both at the sectoral level by examining the development of strategic discourse in banks and insurance companies and at the organizational level by providing some case study material on IT strategy in a life insurance company.
FORMS OF MARKET ORIENTATION IN UK COMPANIES
Authors: Greenley Gordon E.
Published: May 2007

Despite the importance of market orientation in the marketing and strategic management literature, it has been the subject of few conceptual and empirical studies. Also, the latter have addressed only the degree of market orientation and not its nature or form. the empirical study reported in this article focuses on the form of market orientation. Five different forms of market orientation were identified, along with three factors that discriminate between them. Although there are some performance differences between the forms of market orientation, the market environments that they are associated with are not significantly different. As well as providing additional empirical evidence, the results provide empirical support to, and extensions of, the conceptualization of market orientation given in the literature.
SECTOR‐SPECIFIC PATTERNS OF ORGANIZATIONAL DESIGN CHANGE*
Authors: Kikulis Lisa M. , Slack Trevor , Hinings C. R.
Published: May 2007

Recent approaches to understanding change in organizations have moved beyond just looking at structure and have focused on the role of values in defining the manner in which organizations change. This article integrates the concepts of design archetypes, tracks and high impact systems in an effort to understand the patterns of change for an institutionally specific set of organizations. the sample used for the study was a set of Canadian national sport organizations undergoing institutional change. Three design archetypes (Kitchen Table, Boardroom and Executive Office) that represent institutionally specific coherent value‐structure relationships were used to show that patterns of change are determined by the extent to which the coherence of organizational design elements shift over time. Using these design archetypes as a model for change, tracks were identified that provided an indication of the degree and direction of change and the extent to which design coherence was maintained. This paper shows that there is variety in organizational design coherence and that this is related to patterns of change. In addition, reorientations to a new design are signalled by changes in structures or systems that are central to the organization's purpose and as such can have a high impact on moving the organization to a new design.
STRATEGY AND ORGANIZATION THEORIES: COMMON FORMS OF DISCOURSE*
Authors: Rouleau Linda , Séguin Francine
Published: May 2007

Attempts at developing a taxonomic classification scheme for knowledge in the area of strategy contain major shortcomings. With the aim of breaking through the limitations inherent in these classification efforts, this article rejects the idea that strategic discourse is autonomous, and proposes instead that organization theories be considered, since these allow for the development of discursive forms in the field of strategy. Four types of strategic discourse are identified; these are the classical, contingency, socio‐political and socio‐cognitive forms. the authors also stress the importance of developing a critical form of discourse in this area of study.
The Relevance of Strategy Research: Practitioner and Academic Viewpoints*
Authors: Gopinath C. , Hoffman Richard C.
Published: May 2007

It is important for strategy research to have practical relevance given its professional orientation. the differing perspectives of academics and managers and the rapid development of the field of strategic management suggests a need to address the field's future direction. In this paper, a practitioners' agenda for the field is developed based on a survey of chief executive officers (CEOs) of major US corporations. A comparison of this agenda with one generated by academics highlights the differences between the two constituencies concerning issues of relevance for the future. Compared to academics, CEOs emphasize operating issues; disagree on the priority of strategic issues; and are generally unfamiliar with research‐based journals. the two agendas should be viewed as complementary. Some implications for the field are discussed and suggestions made for dealing with the issue of relevance in future research and communicating the results to managers.
MANAGING DYSFUNCTIONAL EMOTIONS IN ORGANIZATIONS
Authors: Ostell Alistair
Published: May 2007

Although much has been written about the different skills of managing people in work organizations there is a paucity of research and theorizing regarding a particular activity managers are often required to perform: that of dealing with the emotional behaviour of others. This paper aims to integrate research from clinical, social and occupational psychology with personal experience as a psychotherapist and management consultant to develop a framework of principles, strategies and tactics concerning how dysfunctional emotional behaviour of others can be managed effectively at work. the meaning of the term emotional behaviour is discussed and the issue of how emotional behaviour can be recognized is addressed. Five principles for managing dysfunctional emotional behaviour are outlined and strategies for the management of three common emotions (anger, anxiety, depression) are proposed, as well as consideration given to some specific tactics which illustrate how these principles and strategies can be implemented. Finally, guidelines concerning the management of different kinds of emotional reactions and the impact of organizational culture and emotional climate upon emotional behaviour are discussed along with the training implications of this framework.
The Cognitive Style Index: A Measure of Intuition‐Analysis For Organizational Research
Authors: Allinson Christopher W. , Hayes John
Published: May 2007

Almost 1000 adults participated in the development of the Cognitive Style Index (CSI), a new measure designed specifically for use with managerial and professional groups. the objectives of the study were, first, to produce a psychome‐trically sound instrument suitable for application in large‐scale organizational studies, and second, through its development, to confirm empirically the generic intuition‐analysis dimension of cognitive style. Findings suggest that each objective was largely fulfilled. At a time when there is a burgeoning interest in intuition as a basis for decision making and problem solving in organizations, the CSI would appear to be a notable addition to the small collection of measures appropriate for survey research.
The Role of ‘Good Conversation’ In Strategic Control
Authors: Quinn John J.
Published: May 2007

Most current writers on strategic control, whether from the rational planning or processual schools, agree on the importance of dialogue and debate between the interested parties to the control process. This is particularly so when strategic control is regarded in a ‘warning bell’ sense, responding to a signal that all is not going according to plan, rather than as a behavioural constraint or as an element of agency theory practice. This paper advances a normative framework for ensuring the effectiveness of such discussions based on Bird's notion of a ‘good conversation’. Bird argued that the discussion of business ethical problems should be vocal, reciprocating, issues‐oriented, rational, imaginative, and honest. It is argued here that these characteristics should also apply to the discussions within the strategic control process if the process is not to be dysfunctional.
Technological Expansion: the Interaction Between Diversification Strategy and Organizational Capability
Authors: Chen Rongxin
Published: May 2007

This study analyses technological expansion by examining the interaction between firms' diversification strategy and internal capabilities. We argue that when new technologies emerge, firms that were actively pursuing diversification do not have equal intention to adopt the technologies. For firms that possess internal capabilities similar or relevant to the new technologies, their diversification strategy facilitates technological expansion, otherwise diversification strategy negatively affects technological adoption. This study improves our understanding on technological expansion. Existing studies try to identify organizational characteristics that facilitate or impede firm entry into new technological fields. This research reveals that the same organizational characteristic (e.g. diversification strategy) can exhibit different effects on technological adoption. It facilitates technological expansion if firms' existing capabilities can be applied to new technologies, otherwise it impedes new technological adoption.
RELATIVE CONCENTRATION CURVE: FUNCTIONAL FORM AND MEASURES OF NON‐PROPORTIONALITY
Authors: Pfähler Wilhelm
Published: May 2007

The note presents an explicit functional form in one equation of a relative concentration curve relating the first‐moment distributions of any pair of variables as well as two summary measures of non‐proportionality that can be visualized by distance and area properties of a relative concentration curve.
REVENUE MAXIMISING SALES TAXES IN OLIGOPOLISTIC EQUILIBRIUM WHEN COSTS VARY BETWEEN FIRMS
Authors: Clarke Roger
Published: May 2007

This paper considers taxation of firms in oligopolistic equilibrium. It shows that sales taxes which maximise government revenues will be differential and progressive when costs vary between firms.
ON THE CONSISTENT CONJECTURES EQUILIBRIUM OF EXPORT SUBSIDY GAME
Authors: Tanaka Yasuhito
Published: May 2007

This paper explores an export subsidy game in an international duopoly in which governments of countries as well as firms hold conjectures about the response of other governments. In the framework with linear demand/quadratic cost functions, a homogeneous good and no home consumption, I shall obtain the relations among the conjectural variation of firms, that of governments, and the optimal subsidies for countries. And I shall show that if and only if firms hold the consistent conjectures, Nash type behavior (zero conjectural variation) of governments is consistent.
CAN A MANUFACTURED GOOD CEASE TO BE A MANUFACTURED GOOD MERELY BY CROSSING A NATIONAL FRONTIER?
Authors: Yeats Alexander J.
Published: May 2007

While economists often stress the importance of increasing developing countries' production and exports of manufactures, there are major inconsistencies in the definitions of ‘manufactures’ employed by national and international agencies. Specifically, developed and developing countries' production data is generally compiled using a far broader definition of manufactures than is employed for trade statistics. This limits the analytical utility of the output and trade data since they are not on a comparable base. An additional problem is that international agencies also employ different definitions of manufactures when compiling trade statistics. For some countries these definitional changes produce major differences in the value and share of manufactures exports and imports.

This study attempts to assess the analytical implications of six alternative definitions by comparing results when each is used to tabulate the ‘manufactures’ exports of 72 developing countries. The results show that the different definitions result in a discrepancy of $60 billion in developing countries manufactures exports. Sensitivity tests show that five or six products are responsible for the major discrepancies, with the key item being refined petroleum (SITC 332). These items are included in the UNIDO (trade) and most agencies output definitions, but are excluded from the trade definition used by UNCTAD, World Bank, and GATT.

The influence of the alternative definitions on some established country classifications, including UNCTAD's ‘major exporters of manufactures’, are examined. The results show that this country classification is out of date due to major shifts in the relative importance of individual exporters in the 1980s. However, even with the most recent trade statistics there would be important differences in ‘major’ or ‘fast growing’ exporters under alternative definitions of manufactured goods.
THE EFFECT OF FORWARD MARKETS ON MULTINATIONAL FIRMS
Authors: Broll Udo
Published: May 2007

This paper presents a model of a risk averse multinational firm under exchange rate risk. The firm, which owns and controls assets in two countries, is engaged in production, sales and forward contracting whenever forward markets exist. First, we investigate the effects of exchange rate uncertainty without any risk sharing markets. It is shown that the firm internalizes missing hedging markets by increasing foreign production and lowering foreign sales. Therefore the firm hedges by repatriating foreign profits in the form of goods. Second, the implications of the existence of forward markets of global market decisions are discussed. It is shown that a separation theorem holds. This does not imply that the multinational firm shifts all the risk into the forward exchange market.
INEFFICIENT INFORMATION AGGREGATION AS A SOURCE OF ASSET PRICE BUBBLES
Authors: Friedman Daniel , Aoki Masanao
Published: May 2007

This paper presents a new theory of bubbles, or discrepancies between the market clearing price and the fundamental value of an asset. In our setting, Bayesian traders, oriented towards long‐term gains, receive private information (‘news’) and also make inferences from noisy price signals. Price exhibits higher variance than fundamental value (the latter defined as fully‐aggregated expected value) especially when news is informative but infrequent. The corresponding bubbles are self‐limiting but may exhibit momentum and overshooting. A parametric example, involving the exponential/gamma conjugate families, is provided.

We don't have any penetrating explanations of yesterday's stock market, but we certainly believe that stocks do not fall 86½ points for nothing.

The general case for a drop in the market after its recent record highs is clear enough. The Fed…,… the tax bill.

None of this, though, was any different on Thursday than it was with the market at its peak six sessions ago. News…and rumors yesterday…were certainly negative but scarcely dramatic.

Some market pros believe this kind of a drop is merely the market catching up with what it already knew. We doubt it. Our hunch is that something changed between Wednesday and Thursday, and that eventually we'll learn what it was (Wall Street Journal Editorial, Friday, September 12, 1986).
TARIFF RETALIATION AND OUTPUT UNDER A FLEXIBLE EXCHANGE RATE
Authors: Smith C.E.
Published: May 2007

In a macroeconomic model with unemployment a tariff may raise output in the tariff‐imposing country, but if the foreign country retaliates output falls in both countries due to asset market factors which put downward pressure on prices and output.
A MODEL OF GENERAL TRAINING, BANKING, AND LABOR TURNOVER
Authors: Arvin B. Mak
Published: May 2007

Conventionally, models of general training assume perfect capital markets; as a result, workers smooth their consumption stream through borrowing. In these models general training has no effect on labor turnover. I develop a model of general training where workers have diminishing marginal utility from consumption, capital markets are imperfect, and a firm cannot monitor the match quality with another firm of a worker who quits. It is shown that in the absence of a surplus effect from training, raising the level of general training steepens the worker's wage profile for reasons associated with consumption smoothing and labor turnover. However, with the surplus effect, results may be ambiguous.
THE ROLE OF THE GOLD STANDARD IN THE GIBSON PARADOX
Authors: Sumner Scott
Published: May 2007

Recent papers by Lee and Petruzzi (1986) and Barsky and Summers (1988) provide rival theories of how the Gibson Paradox could result from the impact of changes in the interest rate on the real price of gold. This paper empirically tests each model and finds more support for the Lee‐Petruzzi approach than the Barsky‐Summers approach. The paper also suggests that Lee and Petruzzi may have used an inappropriate method to test their model, and that both papers employed inappropriate sample periods.
CREDIT, MONEY AND THE GOVERNMENT BUDGET CONSTRAINT
Authors: Hillier Brian , Ibrahimo M. V.
Published: May 2007

A credit market is introduced into an IS‐LM model with wealth effects and the government budget constraint explicitly considered, The model is able to handle issues such as a credit market shock that would be impossible to examine in standard models without a credit market. The analysis of more standard policies or shocks is enhanced by recognition of the role of the credit market, thus supporting the view that such recognition is both feasible and warranted.
INTEGER PRICING AND BERTRAND‐EDGEWORTH OLIGOPOLY WITH STRICTLY CONVEX COSTS: IS IT WORTH MORE THAN A PENNY?
Authors: Dixon Huw David
Published: May 2007

In this paper we analyse the implications of integer pricing for Bertrand Edgeworth oligopoly with strictly convex costs. When price is a continuous variable, there is a generic non‐existence of pure‐strategy equilibrium. In the case of integer pricing, this is not so. We characterize a set of possible single price equilibria around the competitive price, which if non‐empty will constitute the set of single price equilibria if the industry is large enough. Furthermore, we provide an example in which the highest equilibrium price can be arbitrarily far from the competitive price.
ASYMMETRIC INFORMATION AND MODELS OF CREDIT RATIONING
Authors: Hillier Brian , Ibrahimo M. V.
Published: May 2007

This paper outlines the development and exposits some of the central ideas and implications of asymmetric information in the credit market.
IMPLICIT CONTRACTS, TRADE UNIONS AND INVOLUNTARY UNEMPLOYMENT
Authors: Sumpson Anthony A.
Published: May 2007

Implicit contract theory is used to predict the nature of optimal wage‐employment contracts between a firm and a union with a utilitarian maximand, under an uncertain revenue product of labour. By allowing recruitment of outsiders in good states, and allowing unemployment of union members in bad states, a rich set of possible trajectories in wages and employment is achieved. Monotonicity of employment in prices is preserved, whereas monotonicity of wages is not.
THE MEASUREMENT OF PRODUCTIVITY AND MARKET STRUCTURE IN THE UK
Authors: Caporale Guglielmo Maria
Published: May 2007

This paper explains how the Solow residual should be adjusted to provide a correct measure of productivity when markets are not perfectly competitive. Although the null hypothesis of a unity markup coefficient can not be rejected, values greater than one also lie within the confidence interval. Hence the adjustment for imperfect competition should be carried out. The finding that the average mark‐up coefficient in the UK is lower than in the US might reflect the higher degree of intra‐EC import competition.
OLIGOPOLISTIC PRODUCT WITHHOLDING IN RICARDIAN MARKETS
Authors: Masson Robert T. , Mudambi Ram , Reynolds Robert J.
Published: May 2007

We consider strategic behaviour in the rental market for quality‐differentiated goods. In his classic analysis Ricardo showed that at the competitive equilibrium the price of the marginal unit is driven to zero. An oligopolistic market structure usually leads to a radically different equilibrium. Deliberate withholding of units often becomes part of a firm's best response, and whenever this occurs, a pure strategy equilibrium fails to exist. A necessary but not sufficient condition for a pure strategy equilibrium to exist is for one firm to own all the best quality units. A mixed strategy equilibrium always exists and the associated payoff is aiways greater than the competitive payoff.
ECONOMIC SYSTEMS, POLITICAL STRUCTURES AND HUMAN RIGHTS
Authors: Rao M. J. Manohar , Karnik Ajit V.
Published: May 2007

The paper deals with the estimation of comparable human rights ratings (defined as a composite of political rights, civil liberties and state power indices) for 154 countries, excluding territories, of the world in 1983. It then develops a theory to gauge the sensitivity of these ratings to a specific disaggregation suggested by the theory of political economy and establishes the close nexus existing between economic systems, political structures and human rights. The results indicate that increasing government intervention, whether economic or political, unequivocally tends to worsen the human rights situation. Moreover, it is seen that affluence and income distribution are significant predictors of human rights ratings across countries.
UNEMPLOYMENT IN AN EQUILIBRIUM MODEL WITH BARGAINING*
Authors: Groenewold Nicolaas
Published: May 2007

This paper develops a model which embeds the Nash‐equilibrium version of McDonald and Solow's (1981) wage‐bargaining model into an otherwise standard static equilibrium macro model. Equilibrium unemployment is possible. Real shocks to demand result in pro‐cyclical employment and anti‐cyclical real wage movements while money shocks are neutral. This is in some contrast to the results obtained by McDonald and Solow.
DEPRECIATION, OBSOLESCENCE AND THE ROLE OF CAPITAL IN GROWTH ACCOUNTING
Authors: Oulton Nicholas
Published: May 2007

Maurice Scott has argued that the neoclassical production function and growth accounting are fundamentally flawed as tools for understanding the growth process. If the role of capital were correctly evaluated, then (he argues) the famous ‘residual’ of growth accounting would disappear. Contrary to these claims, this paper seeks to show that growth accounting gives correct answers to interesting questions, even when all technical progress is embodied in new capital goods and even when depreciation is entirely due to obsolescence.
INDUSTRIAL LICENSING, BRIBERY AND ALLOCATION EFFICIENCY*
Authors: Bose Pinaki
Published: May 2007

In less developed countries where an industrial licensing policy governs the entry of new firms, and when government officials awarding these licenses are corrupt, an incumbent firm may deter entry by bribing the official to deny the license. The paper demonstrates that such bribery can lead to the exclusion of more efficient firms from the market. This contradicts the established result that bribery does not affect allocation efficiency.
EMPIRICAL TESTS OF MEAN REVERSION IN REAL EXCHANGE RATES: A SURVEY
Authors: Bleaney Michael , Mizen Paul
Published: May 2007

Since the development of cointegration and unit root tests, these procedures have been applied widely to the relationship between nominal exchange rates and relative prices. The findings vary considerably for different time periods, exchange rate regimes and test procedures. These results have not previously been the subject of a comprehensive survey or evaluation. Suggestions are offered for the future development of research in this area.
BILATERALISM IN THE INTERWAR WORLD ECONOMY*
Authors: Kitson Michael , Solomou Solomos
Published: May 2007

Discriminatory protectionist policies in the 1930s are assumed to have led to a collapse of multilateral trading patterns. This paper examines the trends in bilateralism during the interwar period for a sample of ten countries. The findings show that, with the exception of Germany between 1934 and 1938, the level of bilateralism fluctuated but did not see a significant trend increase in the period of increased protectionism during the 1930s.
STRATEGIC TRADE POLICY WITH INTERNATIONALLY OWNED FIRMS*
Authors: Welzel Peter
Published: May 2007

The consequences of international firm ownership for strategic trade policy are examined both in a general and in a simple linear model of an international duopoly with two governments using production subsidies as policy instruments. At first sight, the case for strategic trade policy seems to be weakened, because international ownership reduces a government's incentive for rent‐shifting. Closer inspection shows, however, that there are ownership structures leading to optimal policies which induce the duopolists to behave more collusively. This tends to resolve the conflict between national and international rationality in a policy game with retaliation and makes strategic trade policy look more attractive.
INSIDER‐OUTSIDER EFFECTS IN WAGE FORMATION: AN EMPIRICAL SURVEY*
Authors: Lever Marcel H. C.
Published: May 2007

The paper provides a review of empirical work on insider‐outsider and duration effects in wage formation. It presents a theoretical model to investigate the relationship between previous employment and the wage rate. The impact of unemployment and long‐term unemployment is considered. Empirical results show that the effect of previous employment on the wage rate is generally insignificant. Both short‐term and long‐term unemployment appear to have a significant negative impact. Micro‐studies reveal that both firm‐specific and aggregate variables play a role in wage determination.
STATISTICAL INFERENCE AND DECOMPOSABLE POVERTY MEASURES
Authors: Bishop John A. , Chow K. Victor , Zheng Buhong
Published: May 2007

The paper develops simple statistical test procedures for generalized decomposable poverty measures. It is shown that the estimates of the decomposable poverty indices, including the overall and various subgroup poverty indices, have (asymptotic) jointly normal distributions. The full variance‐covariance structure is derived and can be estimated consistently without prior specification of the population density underlying the sample data. The (overall/decomposed) poverty indices can thus be used as tools for statistical inference instead of simply as descriptive statistics. We illustrate the test procedure by examining the contributions of whites and non‐whites to total US poverty in 1975 and 1985.
FACTOR‐INTENSITY REVERSALS UNDER MONOPOLISTIC COMPETITION*
Authors: Torstensson Johan
Published: May 2007

This paper shows that it is impossible to rule out factor‐intensity reversals (FIRs) under monopolistic competition unless production functions are homothetic. We construct a simple example where the capital‐intensity at unchanged output is fixed, but where FIRs still can occur because equilibrium output and thus the average capital‐intensity depends on the wage‐rental ratio.
COMPUTATION OF NASH‐BARGAINED MODELS OF HOUSEHOLD LABOUR SUPPLY*
Authors: Barmby Tim
Published: May 2007

This paper explores a method of recovering the structural parameters of a Nash‐bargained model of household labour supply. It proceeds by computing the desired hours of labour supply numerically rather than analytically, thus circumventing the need for analytical tractability. This numerical procedure is then embedded in a conventional maximum‐likelihood estimation to obtain estimates of the structural preference parameters. An example using Family Expenditure Survey data is reported.
THEORIES OF THE BANKING FIRM: A REVIEW OF THE LITERATURE*
Authors: Swank Job
Published: May 2007

This paper reviews the theoretical literature on the banking firm. Apart from studies dealing purely with the reasons why banks exist, the survey is fairly comprehensive in that it covers the main categories of microeconomic models of bank behaviour. The emphasis is on recent work, which also includes modern, information‐based, theories of loan commitments, credit rationing, collateral and the bank‐client relationship.
‘Research on research’
Authors: Ritchie E.
Published: May 2007

Problem areas currently receiving attention in the literature are discussed. It is suggested that considerable effort will be needed before much of the theory will be translated into practice. In certain areas it is argued that methods which have been proposed in the past have not been based on adequate descriptions of the real problems. A plea is made for more research into the research process and for more empirical testing and validation of the methods and procedures which have been proposed as aids to research managers.
The state of the art in the study of technology transfer—a brief survey
Authors: Douds Charles F.
Published: May 2007

Abstract Technology transfer involvesthe movement of new concepts, processes or products from one area of science or engineering technology to another. The nature of the literature dealing with technology transfer is described. Discursive or ‘wisdom’ literature predominates indicating a great concern with the problem by industry and government. There are some case studies that provide insights into various aspects of the process, but there are very few empirically based field studies. Apart from research on the diffusion of innovation and studies in other allied areas, little theory building with accompanying field tests of propositions has been done. It is now appropriate to begin such studies to obtain information that will provide a more sound basis for government policy and industry investment in R&D.
Encouraging the technical entrepreneur
Authors: Watkins D. S.
Published: May 2007

Abstract. The series of conferences for scientists and technologists on 'Starting one's own Business' are part of a growing interest in this country in aiding the technical entrepreneur. What do such conferences offer their participants? What type of person attends them? and can we yet predict beforehand who is likely to become a successful technical entrepreneur? There follows a brief description of the first such conference and its participants.
Management by Objectives in R&D
Authors: Dunwell P. , Pitfield H. , Savill Mrs H. C.
Published: May 2007

Abstract. There is considerable confusion about the meaning of the term management by objectives and of the appropriateness to the R&D environment of the various procedures which many organizations have adopted under the general heading of MBO. This short paper reports on a pilot study of five organizations, carried out in order to obtain information about the use, or otherwise, of MBO.
The use of ranking formulae in R & D projects
Authors: Pearson A. W.
Published: May 2007

Abstract. Numerous ranking formulae have been proposed in the literature for use in the evaluation and selection of R& D projects, but their rate of adoption has been relatively slow. This situation appears to be changing in the U.K. and a considerable amount of effort is being expended to improve the methods of obtaining estimates for the variables which appear in the formulae. This paper argues that the most commonly quoted formulae do not adequately represent the practical situation and are likely to introduce bias into the system as well as tending to make estimating more difficult. A modified ranking index derived from a decision tree type of analysis is suggested as a more useful estimate of the worth of a project, but it is concluded that any such formulae will always have serious limitations because they must inevitably ignore important characteristics of the research process.
Criteria for selection of venture capital projects: reasons behind successes and failures in the past
Authors: Stevens H. A. R.
Published: May 2007

This paper looks at the area of venture management from the viewpoint of a company which is interested in providing financial support for new areas of activity. It discusses the problems associated with entering new markets and argues that many investments have not been the success that was hoped for because insufficient profit margin was obtainable or built in at the outset. However, by far the most crucial criterion for a venture capitalist is the calibre of the people who are to manage the risk funds, and the motivation of the entrepreneur or team wishing to establish the new enterprise.
Some concepts of technology transfer: adoption of innovations in organizational context
Authors: Chakrabarti A. K.
Published: May 2007

This paper is based on the review of literature on technology transfer and diffusion of innovations. Models and propositions developed by scholars in various disciplines were analyzed. The definitions and concepts frequently encountered in the literature were discussed to understand the process of technology transfer at various levels. Problems of inter‐organizational technology transfer were discussed at length.