The Munich Feature Film Cluster: The Degree of Global Integration and Explanations for its Relative Success

In this paper we assess the role that a secondary feature film cluster can play in an industrial sector largely dominated by the major Hollywood studios. In order to do this we proceed in two steps. We first evaluate as to how Munich-based firms are integrated into the production, distribution, financing and technological development of globally successful feature films. Then we investigate the factors that explain the relative economic success of this regional industry. Here we argue that major corporate actors that established a core group within the cluster have turned the industry towards specialized niche products and have been significantly supported by public policy measures.     

Supplier network relocation in a capital-intensive context: a longitudinal case study

The problem of delocalisation has assumed enormous importance over the last years, given the ever increasing number of firms who turn to it in order to improve their competitive performance. This type of intervention has an impact that extends throughout the whole supplier network of those firms that delocalise. The originality of this research in comparison with the numerous studies on this subject lies in analysis of the supplier network relocation of a firm that has delocalised the production plant and operates in a capital-intensive context. The use of the action research method has enabled us to carry out fieldwork, by conducting a longitudinal case study, on what problems can occur, what solutions can be adopted, and what contingent factors are critical for the realisation of a supplier network delocalisation project in a particular context, such as a capital-intensive context.     

Learning and the sources of corporate growth

This paper explores the link between learning and corporategrowth by developing different models of learning and showingthat they produce observably different models of corporate growth.Using data on the growth of a number of firms in the US automobileindustry during the 20th century, we compare these differentmodels of growth in an effort to identify the major sourcesof learning which these firms seem to have relied on. Althoughthere are interesting differences between growth processes beforeand after the Second World War, the basic conclusion that weare drawn to is that learning in this sector is largely unsystematicand opportunistic.     

COMPETITIVE INTERFIRM DYNAMICS WITHIN AN INDUSTRIAL MARKET SYSTEM

Scholars concerned with economic processes in industrial economies have long been concerned with the dynamics of firms' adaptation to new circumstances. This article develops a conceptual framework within which industrial dynamics and competitive interfirm interactions can be analyzed in terms of adaptive responses to changes in the complex system of which the firms form part-rather than in terms of anomalies and exceptions, such as the 'market failures' and 'externalities'favored in mainstream microeconomics. In order to do so, a conceptual framework is introduced, dubbed an Industrial Market System (IMS), in which firms play a central role as actors, and where their resources, routines and relations with each other generate complex structures such as networks, consortia, and development blocks which mediate and shape the strategic responses made by firms. dynamism of the 'new economy' and the startup firms it generates. There have also been parallel developments such as the rising importance of corporate spinoffs (as counter-trend to mergers and acquisitions) whereby firms seek greater focus and entrepreneurial initiative through divesting parts of their operations as viable businesses.     

The Recent Growth Performance of US Firms in the Industrial Design Sector: An Exploratory Study

This paper assesses the competitive factors associated with company growth in the US industrial design sector. This small but technologically advanced sector delivers critical innovation inputs to firms that produce durable goods. Evidence from a survey of 85 US design companies suggests that competitive success hinges upon service diversity. Specifically, the most commercially buoyant companies have diversified their service offerings beyond product or component design. These firms have developed strategic competencies in fields such as contract research, prototype development, product testing, technological forecasting, market analysis and even advertising. Although most US design companies are small-to-medium-sized enterprises, successful firms do not differ from their less successful counterparts in terms of employment size, occupational structure, regional location or market focus (client sectors). Instead, the key differences lie in service diversity and the quality of human capital. The paper concludes with a brief discussion of the implications of the empirical findings for future research on the dynamics of the design industry.     

Contextual and mediation analysis between TQM critical factors and organisational results in the EFQM Excellence Model framework

Following a total quality management (TQM) approach and the EFQM Model framework, this contribution aims to study the influence of TQM social factors on organisational results, by considering the TQM technical factors as a mediating variable in this relationship. Moreover, the effect of size and type of business on the implementation of TQM and results is analysed, as well as determining which TQM practices have a more important effect on the operational results. The research questions and hypotheses proposed in this research model are tested on a sample of 116 Spanish firms. The results support the reliability, validity and the high-predictive power of the EFQM Excellence Model as a framework for the implementation of TQM. Moreover, our findings indicate that TQM social factors provide a cornerstone for the success of the quality system. Similarly, TQM technical factors partially mediate the relationship between TQM social factors and results. It was also found that TQM social factors and processes management are the main predictors of operational performance. Finally, significant differences were found in TQM implementation, and in the key results of companies, based on their size; however, these differences are not significant based on the sector activity.     

The relationship between corporate social responsibility and corporate performance: evidence from the US semiconductor industry

This study adopts a two-stage approach to explore the relationship between corporate social responsibility (CSR) and semiconductor companies’ performance during 2004–2008. In the first stage, dynamic data envelopment analysis is adopted to explore whether CSR affects US semiconductor firms’ performance, and the difference in performance between CSR firms and non-CSR firms is analysed; in the second stage, panel data regression is used to determine which quantitative indicators of CSR significantly affect the performance of US semiconductor firms. The empirical results show that social responsibility investment by US semiconductor firms has positive effects on their performance. This study thus suggests that the US semiconductor companies should pay more attention to the CSR quantitative indicators, including human rights, employee relationships, and environment issues in order to enhance their corporate efficiency.     

Analysis of the Spanish scientific and technological output in the ICT sector

Summary This study presents a general view of the scientific and technological production in the ICT sector in Spain during the period 1990-2002 and its relative weight in the international production, as well as the identification of the main institutional actors and the performance patterns of the researchers in this scientific community through bibliometric techniques, with the aim of exploring the character of its outputs, both in terms of publications and patents. Indicators at macro-meso level are presented by: geographic regions, thematic areas at different aggregation levels, institutional sectors and research centres. Bibliometric indicators may help focus attention on the position and contribution of Spanish ICT science and technological capabilities.     

Applicability of lean production with VSM to the Rioja wine sector

Lean production arose as a step towards a new era in production systems. It is a working philosophy designed to produce better products using fewer resources to obtain greater benefits. It has been applied to a wide variety of sectors different from the original automotive industry, in which it was developed. However, its application to continuous manufacturing processes of continuous products has been less, especially to the wine-production sector. The wine sector differs greatly from the automobile sector in various fundamental aspects, but it also has common fundamental aspects in its production and logistics systems. An important part of this work has consisted in studying the wineries of the Rioja region. This article analyses the applicability of lean production in the La Rioja wine sector and the results that may be obtained from its application, using value stream mapping as the main tool to identify opportunities for improvement. This piece of research shows that most of the production problems in the wine sector can be tackled using a lean production system, making certain adjustments according to the type of production. It shows the main properties of wine production from the lean viewpoint, and it improves the production and logistics systems.     

The influence of manufacturing flexibility on the interplay between exploration and exploitation: the effects of organisational learning and the environment

This paper analyses whether the firm can combine exploration and exploitation and seeks to determine whether implementing manufacturing flexibility will facilitate the development of either of these two terms or both simultaneously. This relationship was measured in 231 Spanish production firms. The results obtained show that: (1) firms develop exploration of new knowledge at the same time as they exploit their abilities; (2) manufacturing flexibility encourages the development of both exploration and exploitation; (3) this relationship is even more significant if we take into account dynamism of the environment and organisational learning.     

Aggregate production process design in global manufacturing using a real options approach

A main source of competitive advantage is derived from the cost efficiency offered by firms’ manufacturing and logistics operations. Consequently, firms typically globalise their operations whereby they may exploit the comparative advantages—defined as production functions—of the nations in which they are present. Production process design thus arises as a significant issue. The research presented in this paper targets two fundamental questions attached to production process design that multinational companies face, namely: (i) should plants that are located in different countries but producing similar products use similar production processes?; and (ii) given that the firm's policy is to use similar production processes, how should the production processes be designed? Among others, the paper shows, by way of a numerical illustration of a binational manufacturing network, that the option of choosing freely upon production process design for the respective facilities in certain cases adds little to firm value. In fact, the value of this option tends to zero as the volatility rate increases when the exchange rate is modelled as a geometric Brownian motion without drift rate, implying that firms should employ similar production processes throughout their manufacturing networks. That is, a market value approach stands up for the so-called copy-exactly approach to production process design in these settings. We furthermore show the effects of economies of scale on the optimal production process design.     

On the Sequencing of Privatization in Transition Economies

This paper presents an empirical criterion for establishingprivatization priorities for state-owned enteiprises. The approachuses firm performance, defined as productive efficiency, asthe basis for deciding the sequence in which firms are privatized.Sequencing is relevant because the order in which state enterprisesare taken up for privatization has efficiency implications,and an appropriate sequence based on such efficiency considerationscan be beneficial. Privatizing inefficient enterprises beforeefficient ones is a superior first-best sequence as comparedto one which reverses this order, and the size of the firmsto be privatized is an important contingency. An improvementindex is constructed for individual firms, and the index makespossible a comparison of multiple firms, thus facilitating theconstruction of a priority schedule. This approach is demonstratedusing a sample of Indian service sector firms, and the approachcan aid policy-makers in transition economies as they undertakethe privatization of state-owned enterprises. There are, howeverseveral practical considerations, such as the political fall-outfrom privatizing large enterprises, which need to be taken intoaccount, and these are also discussed in detail.     

Modeling Government Subsidies and Project Risk for Financially Non-Viable Build-Operate-Transfer (BOT) Projects

Abstract:

Governments encourage private sector participation in building infrastructure through Build-Operate-Transfer (BOT) agreements. Large projects may be financially non-viable despite their net economic benefits for the host society. Host governments might subsidize initial private investments to create financial feasibility. Small-scale subsidies might not sufficiently reduce project risks to attract private investment; however, large percentage subsidies might result in loose profit structures, discouraging the pursuit of efficiency. This article applies Monte Carlo techniques to data from the Taiwanese West Corridor High-Speed Rail Project to assess the subsidy-risk trade-off relationship. The results provide guidance for public-private negotiations.     

A system dynamics model: Transition to sustainable processes

Academics, firms, governments, and society, in general, are increasingly interested in studies and actions that help mitigate the effects of climate change. Therefore, this becomes an opportunity for firms in the manufacturing sector to carry out sustainable activities across their production areas. In this paper, we propose a model that seeks to analyze through computer modeling and simulation. These dynamics occur in the implementation of eco-innovation processes across organizations in the manufacturing sector. For developing the computer simulation model, we applied the system dynamics methodology (used to model policies and strategies) to understand better the interaction between the industrial sector, the environment, and society. Among the results, we highlight the importance of investing in training employees in sustainability matters and in more efficient equipment to reduce costs and energy consumption. Thus, we propose implementing this generic model in a real case study to test and adjust it and validate our findings. The proposed model can be used to examine various strategies to identify the most efficient ones for the process and answer questions about the results of long-term decisions regarding implementing sustainable processes within organizations.     

Exploring the relationship between types of family involvement and collaborative innovation in design-intensive firms: insights from two leading players in the furniture industry

ABSTRACT

Innovation in family firms has attracted considerable interest from scholars and practitioners in recent years. However, further theoretical and empirical research is needed to illuminate the intricate relationship between family involvement and innovation. This article studies the effect of different types of family involvement on the management of collaborative innovation. Based on empirical evidence from two leading Italian design-intensive firms in the furniture industry (B&B Italia and Cassina), this study illuminates how family involvement in control and management influences the way design-intensive firms collaborate with external designers to innovate their products. We use two indicators, design renewal and design identity, to capture differences in collaboration approaches through which design-intensive family firms involve external designers. Thus, our findings contribute to understanding how collaborative innovation is managed in family firms. This article also provides family firm owners and managers with insights on the forces that influence the collaborative innovation processes in design-intensive firms.     

Why corporate groups care about company standards

The role of company standards as a strategic tool for the optimisation of internal processes and governance of inter-firm relationships has only recently received researchers’ attention. This paper adds to the very limited body of literature by providing empirical evidence of the motives to implement company standards in general and their importance in corporate groups in particular. Using data on German companies active in standardisation, the empirical analysis confirms that companies that are part of a corporate group utilise a higher number of company standards than single firms. By codifying and transferring company-specific information, internal standardisation enhances legal security, productivity, and quality. In particular for corporate groups, internal standards additionally play a crucial role in the realisation of technical interoperability, which facilitates the development and management of internal platforms. The data, therefore, provides empirical evidence that standardisation can be used as a tool to improve efficiency and communication, and thereby facilitate global governance of multinational firms.     

Sourcing Knowledge and Innovation in a Low-Technology Industry

This paper investigates the relationship between knowledge sourcing and innovation in a select low- to medium-technology industry, the forest sector. It is based on data from the Statistics Canada Survey of Innovation 2005. Econometric models are developed and tested, specifically logistic regression analyses, in order to probe the relationship between select forms of embodied and disembodied knowledge and levels of innovation intensity. Differences between single establishment Canadian firms, multi-establishment Canadian firms, Canada–USA multi-establishment firms and establishments belonging to multinational firms are studied in terms of the relationship between innovation and sources of knowledge. Findings indicate that establishment innovative performance is related to knowledge sourcing strategies and furthermore that organization ownership/structure impacts significantly upon this relationship.     

Knowledge-intensive sectors and the role of collective performance-related pay

ABSTRACT

The main contribution of this study is showing that the efficiency effects of collective performance-related pay (CPRP) are more pronounced in knowledge-intensive service sectors (KISs) than in other sectors. The hypothesis is that human resource practices such as CPRP are particularly useful for enhancing firm performance when innovation-supporting knowledge is distributed among multiple skill sets and employee creativity, knowledge creation and knowledge sharing are key success factors for the firm. Cross-sectional estimates obtained for a national sample of approximately 3,800 Italian firms confirm this prediction. These results are validated by adopting a treatment effect approach to solve the self-selection problem.     

Effects of Project-Related and Organizational-Related Factors on Five Dimensions of Project Performance: A Study Across the Construction Sectors in Malaysia

Abstract

The objective of this research is to analyze the relationships of project-related and organizational-related factors with five dimensions of project performance across different sectors of the construction industry. Data collected from the project managers and directors of 360 construction firms in Malaysia were analyzed using multiple-regression technique with size of the organization as a control variable. The important finding is that the effects of project-related and organizational-related factors differ by sector type and by dimensions of project performance. The findings of this study can help project managers devise and implement appropriate strategies to support project success.     

Globalization of the Automobile Industry

ABSTRACT

The Japanese automobile industry has spearheaded a globalization drive that began before World War II with its use of foreign technology. This internationalization effort relied on the export of initially subcompact cars to the United States followed by capital investments in overseas manufacturing plants and the transfer of technology. A concerted move into the luxury car market has brought the Japanese into direct competition with European makers even as joint ventures and equity investments are made in Europe. In this article, corporate decisions to expand abroad are discussed along with how these moves were facilitated by the revolution in global finance and the concurrent growth of the Japanese financial sector.