Showing papers by "IE University published in 2000"

Hierarchies and the Organization of Knowledge in Production

Abstract: This paper studies how communication allows for the specialized acquisition of knowledge. It shows that a knowledge-based hierarchy is a natural way to organize the acquisition of knowledge when matching problems with those who know how to solve them is costly. In such an organization, production workers acquire knowledge about the most common or easiest problems confronted, and specialized problem solvers deal with the more exceptional or harder problems. The paper shows that the model is consistent with stylized facts in the theory of organizations and uses it to analyze the impact of changes in production and information technology on organizational design.

Is It Ethical to Use Ethics as Strategy

Abstract: Increasingly research in the field of business and society suggests that ethics and corporate social responsibility can be profitable. Yet this work raises a troubling question: Is it ethical to use ethics and social responsibility in a strategic way? Is it possible to be ethical or socially responsible for the wrong reason? In this article, we define a strategy concept in order to situate the different approaches to the strategic use of ethics and social responsibility found in the current literature. We then analyze the ethics of such approaches using both utilitarianism and deontology and end by defining limits to the strategic use of ethics.

The Effects of Business-to-Business E-Commerce on Transaction Costs

Abstract: In this paper, we study the changes in transaction costs from the introduction of the Internet in transactions between firms (i.e., business-to-business (B2B) e-commerce). We begin with a conceptual framework to organize the changes in transaction costs that are likely to result when a transaction is transferred from a physical marketplace to an Internet-based one. Following Milgrom and Roberts (1992), we differentiate between the impact on coordination costs and motivation costs. We argue that it is likely that B2B e-commerce reduces coordination costs and increases efficiency. We classify these efficiencies into three broad categories (1) process improvements; (2) marketplace benefits; and (3) indirect improvements. At the same time, B2B e-commerce affects incentive costs. In particular, we discuss the impact of the introduction of e-commerce on informational asymmetries. We implement this framework by analyzing detailed internal data from one Internet-based firm to measure process improvements, marketplace benefits, and motivation costs. We present less detailed data and analyses for one other firm. Our results suggest that process improvements and marketplace benefits are potentially large. We find little evidence that informational asymmetries are more important in the electronic marketplace we study than the existing physical ones.

A regional study of quality management infrastructure practices in USA and Mexico

Abstract: Presents the results of a study on quality management infrastructure practices and quality performance in manufacturing companies located in the North and Central regions of Mexico and the US Midwest region. Seven quality management infrastructure practices – top management support, strategic quality planning, quality information availability, employee training, supplier quality, customer focus, and quality citizenship – were assessed and compared. The research covered 372 manufacturing companies in both countries. Our findings show significant differences between the three regions. Companies located in the North region of Mexico exhibit significantly better levels of quality management infrastructure practices than companies located in the US Midwest and Central Mexico regions. Implications for decision‐makers for location, outsourcing, and joint ventures are discussed.

Internal and external integration of assembly manufacturing activities

Abstract: This analysis deals with the integration activities of leading Spanish assembly manufacturing firms. It is based on data from the second International Manufacturing Strategy Survey (or IMSS‐II). Results show that: there is a greater correlation between strategic goals and internal integration programs than between strategic goals and external integration programs; forward and backward external integration programs are of similar importance; and logistical integration programs do provide a competitive and economic advantage although still at a low‐potential level.

Small Firm Financial Contracting and Immigrant Entrepreneurship

Abstract: This chapter examines the financial management and contracting problems associated with starting and successfully operating a business. We focus on the areas where financial management theory appears to be helpful in analysing the particular distribution, character and problems experienced by immigrant owner-managed businesses in the developed market economies of Europe and the United States. Financial management is a discipline that uses economic reasoning to develop decision models to estimate, evaluate and manage the financial consequences of corporate investment, operating and financing activities. Creating and maintaining successful exchange relationships with other contracting agents (both inside and outside the business) are central to the achievement of corporate objectives. The structure of explicit and implicit contracts, which specify the duties and allocate the risks and returns accruing to each party involved in a transaction, governs economic activity and is a major determinant of economic possibilities and financial outcomes.

Disclosure Interactions: Accounting Policy Choice and Voluntary Disclosure Effects on the Cost of Capital

Abstract: In this research we consider how disclosure of accounting policy interacts with subsequent choice over voluntary disclosure of a non-financial performance metric. We compare and contrast regimes. In the first, firms are free to choose between a conservative or an aggressive accounting policy before they decide whether to make additional voluntary disclosures. In the other regime, all firms either voluntarily or via mandation use the same accounting policy. We then investigate the cost of capital for firms under the two regimes. We show that communication via voluntary disclosure need not be a simple substitute for communication via accounting policy choice. Key Words: Voluntary disclosure; Accounting policy choice; Cost of capital

An investigation of public and private r&d partnerships.

Abstract: The seldom studied intersectoral research and development relationship between government, universities and private organizations has a number of implications for each of these partners. In this pa...