Showing papers by "Copenhagen Business School published in 2000"

Organizational Identity, Image, and Adaptive Instability

Abstract: Organizational identity usually is portrayed as that which is core, distinctive, and enduring about the character of an organization. We argue that because of the reciprocal interrelationships between identity and image, organizational identity, rather than enduring, is better viewed as a relatively fluid and unstable concept. We further argue that instead of destabilizing an organization, this instability in identity is actually adaptive in accomplishing change. The analysis leads to some provocative, but nonetheless constructive, implications for theory, research, and practice.

Ownership structure and economic performance in the largest european companies

Abstract: The paper examines the impact of ownership structure on company economic performance in 435 of the largest European companies. Controlling for industry, capital structure and nation effects we find a positive effect of ownership concentration on shareholder value (market -to- book value of equity) and profitability (asset returns), but the effect levels off for high ownership shares. Furthermore we propose and support the hypothesis that the identity of large owners—family, bank, institutional investor, government, and other companies—has important implications for corporate strategy and performance. For example, compared to other owner identities, financial investor ownership is found to be associated with higher shareholder value and profitability, but lower sales growth. The effect of ownership concentration is also found to depend on owner identity.

Is Information Risk a Determinant of Asset Returns

Abstract: In this research we investigate the role of information-based trading in affecting asset returns. Our premise is that in a dynamic market asset prices are continually adjusting to new information. This evolution dictates that the process by which asset prices become informationally efficient cannot be separated from the process generating asset returns. Using the structure of a sequential trade market microstructure model, we derive an explicit measure of the probability of information-based trading for an individual stock, and we estimate this measure using high-frequency data for NYSE-listed stocks for the period 1983-1998. The resulting estimates are a time-series of individual stock probabilities of information-based trading for a very large cross section of stocks. We investigate whether these information probabilities affect asset returns by incorporating our estimates into a Fama-French [1992] asset pricing framework. Our main result is that information does affect asset prices: stocks with higher probabilities of information-based trading require higher rates of return. Indeed, we find that a difference of 10 percentage points in the probability of information-based trading between two stocks leads to a difference in their expected returns of 2.5% per year. We interpret our results as providing strong support for the premise that information affects asset pricing fundamentals.

Third party logistics – from an interorganizational point of view

Abstract: The adoption of third party logistics is becoming widespread in the industry. Discusses various definitions of third party logistics and the theoretical background for the development of third party arrangements, including both transaction cost theory and network theory. A theoretical framework is then developed to explain the role and motivation for this development. Transaction cost analysis (TCA) explains the conditions under which third party agreements become preferable to the classical choice between market and hierarchy. Network theory explains the dynamics in third party cooperations. Three specific cases of third party logistics are included and analyzed on the bases of the theoretical framework. Concludes that third party logistics are not merely a means to cost efficiency, but also as a strategic tool for creating competitive advantage through increased service and flexibility. Furthermore, the discussion points to the importance of investment in human resources and change in attitudes as part of the success of third party arrangements.

The Emergence and Impact of MNC Centres of Excellence: A Subsidiary Perspective

Abstract: INTRODUCTION AND OVERVIEW PART 1: THE CENTRES OF EXCELLENCE PROJECT The Centres of Excellence Project: Methods and Some Empirical Findings PART 2: DETERMINANTS AND BASIC FEATURES OF CENTRES OF EXCELLENCE Development of MNC Centres of Excellence Subsidiary Influence and Corporate Learning: Centres of Excellence in Danish Foreign-Owned Firms The Impact from Business Networks on MNC Competence Development: A Case Study PART 3: DEVELOPMENT OF SUBSIDIARY COMPETENCE Industrial Clusters and Foreign Companies Centres of Excellence in Norway Multinational Research Subsidiaries in Denmark R & D Centres of Excellence in Canada The Competence of Formally Appointed Centres of Excellence in the UK Competence Creation and Recognition: A Case Study PART IV: USE AND INTEGRATION OF SUBSIDIARY COMPETENCE WITHIN THE MNC Mergers and Acquisitions as Establishment Modes for Centres of Excellence: The Case of Italian Subsidiaries Characteristics of R & D Centres of Excellence in MNCs The Impact of Centres of Excellence on MNC Performance The Dilemma of Developing a Centre of Excellence: The Case of ABB Generation

Customer satisfaction measurement at Post Denmark: results of application of the European Customer Satisfaction Index methodology

Abstract: In this article the ideas behind the European Customer Satisfaction Index are introduced. The methodology is explained and various methods of estimation are discussed. The practical use of the index is shown on a data set collected for Post Denmark and the results for both the private and the business-to-business markets are shown. Special emphasis is put on the idea of combining the generic measurement of customer satisfaction with specific measurements chosen specifically for Post Denmark. Various ways of approaching this problem are discussed and a number of suggestions are given.

From Silicon Valley to Singapore: Location and Competitive Advantage in the Hard Disk Drive Industry

Abstract: List of figures List of tables List of disk drive related abbreviations Acknowledgments Part I Introduction: 1 Why location matters 2 Industry background: technology, competition, and geographic reach Part II Location and Competitive Advantage: 3 A theory of industry evolution, location, and competitive advantage 4 Alternative explanations for industry advangage 5 Global shift and competitiveness in hard disk drives 6 Leveraging locations: American industry and its southeast Asian production system Part III Case Studies: 7 Singapore With Poh Kam Wong 8 Thailand 9 Malaysia Part IV Implications: 10 Policy, politics, and location in developing countries 11 Globalization and industrial leadership Appendixes Notes References Index

Tax Policy, Venture Capital and Entrepreneurship

Abstract: The Paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high-risk project each but have no own resources. Financiers provide equity finance. They must structure the entrepreneur’s profit share and base salary to assure their incentives for full effort. In addition to providing equity finance, venture capitalists assist with valuable business advice to enhance survival rates. Within a general equilibrium framework with a traditional and an entrepreneurial sector, the Paper investigates the effects of taxes on the equilibrium level of entrepreneurship and managerial advice. It considers differential wage and capital income taxes, a comprehensive income tax, incomplete loss offset, and progressive taxation, as well as investment and output subsidies to the entrepreneurial sector.

European logistics beyond 2000

Abstract: European companies are facing new challenges in the next millennium. Seven trends in international logistics are outlined. These are supply chain management, globalisation of the supply chain, virtual enterprises, e‐business, green logistics, strategic partnerships and new management principles. The implications for European companies are discussed and illustrated by examples from advanced companies. Asserts that it is employees and not the systems and processes that will ensure solutions to the logitstics tasks and provide companies with the necessary competitiveness.

The financial effects of ISO 9000 registration for Danish companies

Abstract: This paper presents some of the most important findings of a study of the financial consequences of ISO 9000 registration for Danish companies, based on data from annual accounts available to the public. The purpose of the article is, firstly, to present the results from a survey of the conduct of all Danish registered companies in order to assess the financial effects of registration and, secondly, to discuss the findings in the light of previous research within the area.

Do export and technological specialisation patterns co-evolve in terms of convergence or divergence? Evidence from 19 OECD countries, 1971-1991

Abstract: Several researchers looking at the development of international export specialisation patterns have shown that there is a weak tendency for OECD countries to exhibit decreased levels of specialisation. This finding is in contrast to findings made by other authors, who found increasing technological specialisation. The first aim of this paper is to investigate whether these contradictory findings are due to a `real world' phenomenon, or whether the explanation is purely technical, by comparing the development of export specialisation to specialisation in terms of US patents, using the same methodology and level of aggregation. The second aim is to analyse the extent to which countries and sectors display stable specialisation patterns over time, also both in terms of exports and in terms of technology. The paper confirms that the OECD countries tend in general to become less specialised in terms of exports. The evidence is less conclusive with regard to technological specialisation, as the results are mixed in the sense that just about half of the countries tend to exhibit increased levels of specialisation, while the other half tend to exhibit lower levels of specialisation. In terms of country and sectoral stability of specialisation patterns, it can be concluded that both trade specialisation and technological specialisation patterns are path-dependent. In comparison, however, trade specialisation patterns are more stable than are technological specialisation patterns.

The Importance of Technology-Based Intersectoral Linkages for Market Share Dynamics.

Abstract: The Importance of Technology-Based Intersectoral Linkages for Market Share Dynamics. — The paper introduces technology-based intersectoral linkages (or technological spillovers) in an empirical model of international market share dynamics. The Pavitt taxonomy is applied as a yardstick for interpreting the empirical results. Overall, the results appear to be broadly consistent with the criteria behind the taxonomy, on the relative importance of the different factors of competitiveness in the different sectors. In particular, unit labour costs appear to play the largest role in supplier-dominated industries, ‘own sector’ technological activity plays the largest role in science-based industries, upstream linkages in scale-intensive and downstream linkages in specialized-supplier types of industries.

A longitudinal study of prisoners on remand: psychiatric prevalence, incidence and psychopathology in solitary vs.non-solitary confinement

Abstract: Objective: To compare two levels of stress (solitary confinement (SC) and non-SC) among remand prisoners as to incidence of psychiatric disorders in relation to prevalent disorders. Method: Longitudinal repeated assessments were carried out from the start and during the remand phase of imprisonment. Both interview-based and self-reported measures were applied to 133 remand prisoners in SC and 95 remand prisoners in non-SC randomly selected in a parallel study design. Results: Incidence of psychiatric disorders developed in the prison was significantly higher in SC prisoners (28%) than in non-SC prisoners (15%). Most disorders were adjustment disorders, with depressive disorders coming next. Incident psychotic disorders were rare. The difference regarding incidence was primarily explained by level of stress (i.e. prison form) rather than confounding factors. Quantitative measures of psychopathology (Hamilton Scales and General Health Questionnaire) were significantly higher in subjects with prevalent and incident disorders compared to non-disordered subjects. Conclusion: Different levels of stress give rise to different incidence of psychiatric morbidity among remand prisoners. The surplus of incident disorders among SC prisoners is related to SC, which may act as a mental health hazard.

Applying and adjusting a software process improvement model in practice: the use of the IDEAL model in a small software enterprise

Abstract: Software process improvement is a demanding and complex undertaking. To support the constitution and implementation of software process improvement schemes the Software Engineering Institute (SEI) proposes a framework, the so-called IDEAL model. This model is based on experiences from large organizations. The aim of the research described here was to investigate the suitability of the model for small software enterprises. It has therefore been deployed and adjusted for successful use in a small Danish software company. The course of the project and the application of the model are presented and the case is reflected on the background of current knowledge about managing software process improvement as organizational change.

Diffusion theory and practice: Disseminating quality management and software process improvement innovations

Abstract: This article analyzes a European‐wide dissemination project which aimed at spreading quality management and software process improvement approaches among organizations in the IT sector and beyond to organizations which produce software as part of their primary product. The research presented investigates to what extent that mission has been accomplished and what lessons can be learned for similar actions in the future. For the analysis Rogers’ well‐known model of the diffusion of innovations is used. A secondary outcome of the study therefore is an appraisal of the suitability of the model to plan and perform large‐scale diffusion actions.

International Production Networks and Enterprise Transformation in Central Europe

Abstract: Foreign investors influence the transition in Central and Eastern Europe in particular through their impact on the enterprise restructuring in the region. In addition to corporate governance and financial and managerial resources, they bring Central European firms into the networks of international business. This article focuses on the evolution of the supplier network of VW-Skoda and the worldwide trends in the car industry. Relationships within the networks, like that led by VW, are growing increasingly complex, and thus create mutual dependencies. This creates difficult challenges for firms aiming at supplying major multinational manufacturers.

Governmentality, globalization and local practice: Transformations of a hegemonic discourse

Abstract: Since the 1980s, local governments in many parts of the world have undergone major institutional reforms. Shaped by a wide range of economic, political, and social trends, these changes have been driven by a particular blend of global and local dynamics. On the one hand, they have been contingent upon a globally dominant discourse that has tirelessly pointed out the devastating consequences of public-sector growth. On the other hand, the particular tracks that this discourse has followed, as well as the modes of local appropriation of its core messages, have varied and we believe will continue to vary from case to case. This article sets out to explore the correlation between governmentality, globalization, and local practice from the vantage point of the institution of local government as it is being reshaped by the global discourse known as New Public Management (NPM). Evolved from modest beginnings among international administrative experts working for the United Nations, taken up by the Carter administration, and then processed and refined by the OECD, NPM has arguably acquired the status of a hegemonic discourse: since the 1980s, most contemporary discourses in the field of public administration and management have positioned themselves in relation to elements of NPM. Though not a coherent set of values and notions and therefore not readily definable, NPM can nevertheless be distinguished despite its multiple guises and applications by (1) its clear emphasis on business-management practices, and (2) its reliance on individual rationalities and market

An Alternative Stability Pact for the European Union

Abstract: This paper proposes an alternative stability and growth pact among European Union (EU) governments that would underpin the introduction of a single currency and a "single market" within the EU. The alternative pact embraces a number of new aspects of integration within the EU that are based on a different monetary analysis (different from that of "new monetarism"), new objectives for economic policy (such as employment and growth), and new institutions to reduce various kinds of disparities across the EU. The paper begins by critically examining the Stability and Growth Pact, which accompanied the introduction of the euro in January 1999, but which has not received as much attention in the policy debates on the euro as some other aspects of it. This is followed by a discussion of the institutional underpinnings of the euro, with the argument made that the institutional arrangements have a number of weaknesses. An alternative pact governing monetary and fiscal policy, which contains the promotion of the objective of full employment and that requires the creation of new institutions, is proposed.

Modularization assessment of product architecture

Abstract: Modularization refers to the opportunity for mixing-and-matching of components in a modular product design in which the standard interfaces between components are specified to allow for a range of variation in components to be substituted in a product architecture. It is through mixing-and-matching of these components, and how these components interface with one another, that new systems are created. Consequently, the degree of modularization inherent in a system is highly dependent upon the components and the interface constraints shared among the components, modules, and sub-systems. In this paper, a mathematical model is derived for analyzing the degree of modularization in a given product architecture by taking into consideration the number of components, number of interfaces, the composition of new-to-the-firm (NTF) components, and substitutability of components. An analysis of Chrysler windshield wipers controller suggests that two product architectures may share similar interface constraints, but the opportunity for modularization of one module is significant higher than the other due to the higher substitutability of its components and lower composition of NTF components.

Competence, governance, and entrepreneurship : advances in economic strategy research

Abstract: Chapter 1: Introduction: Advancing Research on Competence, Governance, and Entrepreneurship PART I: FUNDAMENTAL PERSPECTIVES Chapter 2: Strategy Research: Competence and Governance Perspectives Chapter 3: The Knowledge-Based Approach and Organizational Economics: How much do they really Differ? And how does it Matter? Chapter 4: On the Tangled Discourse between Transaction Cost Economics and Competence-based Views of the Firm PART II: FIRM GROWTH AND ENTREPRENEURSHIP Chapter 5: Entrepreneurship as Element in an Evolutionary Theory of the Firm Chapter 6: An Entrepreneurial Theory of the Firm Chapter 7: Organizing for Firm Growth: The Interaction between Resource-Accumulating and Organizing Processes Chapter 8: The Growth of Firms in Theory and Practice Chapter 9: The Growth of Firms PART III: THE DYNAMICS OF GOVERNANCE Chapter 10: Organizing for Innovation: Co-ordinating Distributed Innovation Capabilities Chapter 11: The Role of Prior Commitment in Governance Choice Chapter 12: Knowledge Maturity, Modularity, and the Vertical Boundaries of the Firm Chapter 13: Inter-firm Collaboration: Contractual and Capabilities-Based Perspectives Chapter 14: Multiple Considerations in Making Governance Choices: Implications of Transaction Cost Economics, Real Options Theory, and Knowledge-Based Theories of the Firm Chapter 15: Demand Uncertainty and Asset Flexibility: Incorporating Strategic Options in the Theory of the Firm

Learning and getting to know: the case of knowledge workers

Abstract: In this paper it is argued that the terms, knowledge work, knowledge workers and knowledge-intensive firms point to emerging social structures and processes in organizations. This focus allows us to analyse organizations in ways that differ from the notions involving less dynamic forms of organizational configurations. It is further argued that the emphasis on knowledge in organizations raises a fundamental question of learning, i.e. how knowledge workersacquirerelevant knowledge. However, theanswerto this depends on how organizational life and work are understood and conceptualized. Three focuses are suggested: organizations viewed through their use of technology, the division of labour, and the social interactions in organizations. These three focuses relate to different understandings of learning, namely learning as cognition, as situated, and as the reconstruction of experiences. To illustrate both the emphasis on knowledgeand thedifferent perspectiveson learning, acasestudy will bepresented.

Granger's Representation Theorem: A Closed-Form Expression for I(1) Processes

Abstract: The Granger representation theorem states that a cointegrated vector autoregressive process can be decomposed into four components: a random walk, a stationary process, a deterministic part, and a term that depends on the initial values In this paper, we present a new proof of the theorem This proof enables us to derive closed-form expressions of all terms of the representation and allows a unified treatment of models with different deterministic specifications The applicability of our results is illustrated by examples For example, the closed-form expressions are useful for impulse response analyses and facilitate the analysis of cointegration models with structural changes

Convergence in the ERM and Declining Numbers of Common Stochastic Trends

Abstract: In this paper, we use recursive and rolling cointegration methods to test for a system of several exchange rates being within the process of convergence. We use the methods to analyze how the convergence of five ERM exchange rates has developed during the ERM period. We find that the number of cointegration vectors in the system of ERM exchange rates increases as the sample period is extended, and interpret this as a sign of increased convergence of ERM exchange rates. In particular, we find no evidence of convergence in the first years of the ERM and strong evidence of convergence in the last years of the ERM. In the analyses we acknowledge that managed exchange rates, such as exchange rates in ERM target zones, can be misaligned at their observed values as compared to their fundamental free-float values. For this reason, we also study convergence of filtered shadow exchange rates. We use two filters to extract the shadow exchange rates: a linear filter and a non-linear filter.

Synergies in Strategic Alliances: Motivation and Outcomes of Complementary and Synergistic Knowledge Networks

Abstract: This paper aims at contributing to the research concerning alliance dynamics by combining elements from research considering motives for alliance formation and alliance outcomes. This paper draws on the resource-based view of the firm, suggesting that firms’ competitive advantages derive from their preferential access to idiosyncratic resources, especially tacit knowledge-related (based) resources. However, by integrating the resource-based view into the network perspective, the main arguments focus on the relationship between conditions for alliance formation and outcomes and the impact of learning on the dynamic evolution of alliances. The paper breaks with the traditional assumption of complementarity of resources (or resource-bases) as a necessity for successful collaboration, and proposes a different and more dynamic approach to alliance formation in the pursuit of what seems to be the ultimate goal of strategic alliances: Synergy. Ultimately, this paper identifies two different types of knowledge networks: Complementary Knowledge Networks and Synergistic Knowledge Networks, which, depending on the initial motivation and conditions, will lead to different outcomes in terms of learning and knowledge creation for the partners.

The effects of privatization on productive efficiency: evidence from the Baltic republics

Abstract: By using new and unusual data sets for large samples of firms in Estonia, Latvia and Lithuania we find that, since privatization, diverse patterns of enterprise ownership have emerged and ownership configurations are quite dynamic. To test competing theories on the productivity effects of alternative ownership structures, identical cross sectional production functions specifications are estimated for each country for varying years during 1993 1996. While the effects of private ownership upon productivity are found to vary considerably over time and across countries, productivity effects are always found to be either zero or positive, thus providing partial support for the hypothesis that state ownership is less efficient than private ownership. Findings are mixed concerning hypotheses on the effects of particular ownership structures. Often (e.g. for Lithuania) estimates indicate that all forms of private ownership have zero productivity effects. However, some estimates for Estonia provide support for the mainstream hypothesis that outside (and especially foreign) ownership is preferred to insider ownership. But in other estimates (again for Estonia) majority ownership by employees is found to deliver better business performance than majority ownership by managers (thus refuting the hypothesis that the preferred form of insider ownership is ownership by managers).

Austrian Economics and Game Theory: A Stocktaking and an Evaluation

Abstract: I discuss the merits and drawbacks of game theory in economics from the perspective of Austrian economics. I begin by arguing that Austrians have neglected game theory at their peril, and then suggest that game theoretic reasoning could be one way of modelling key Austrian insights. However, admittedly some aspects of game theory don't square easily with Austrian economics. Moreover, a major stumbling block for an Austrian acceptance of game theory may lie in the traditional Austrian resistance to formal methods.

Making sense of greening and organizational change

Abstract: This paper focuses on the greening of organizations as a process. It offers an account of how the environment is enacted within an organization, and explores how the personal and social meanings of ‘the environment’ arise in the context of behaviour. The paper presents a case study of the introduction of environmental reporting or green accounting in a public hospital in Denmark, and highlights how hospital managers made sense of this new task and made green accounting perform in the context of their everyday work situation. In doing so, emphasis is given to the emotional aspects of greening, and to how this shapes different actions. Greening is viewed as a sense-making process, in which the organizational members' individual and collective identity is gradually transformed. Based on case findings, the paper discusses how organizing for the environment cannot be separated from the emotional subtexts of the organizational members and the other currents of organizational life. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment