Working papers

CIBS publishes a working paper series of original research. Full paper downloads are available, as well as online abstracts.

We also have some of the working papers from the (now discontinued) European Institute of the South Bank Business School available for downloading. The Institute was directed by Professor Ian Begg.

  • No. 1-14 Mikko Arevuo "Epistemic objects in collective decision-making: a practice perspective on the use of causal maps as situated material artifacts"
  • No. 1-13 Helen Sakho "International Migration: From Deepening Inequality to Stark Polarisation - The Case of the UK"
  • No. 1-12 Mike Rigby and Miguel Angel Garcia Calavia "Extra-judicial systems of collective conflict resolution and the limits to their autonomy; the Spanish experience"

    Extra-judicial systems of collective conflict resolution and the limits to their autonomy: the Spanish experience
    Mike Rigby (London South Bank University) Miguel Angel Garcia Calavia (University of Valencia)  
    In the last decade there has been less interest in the role of third party intervention in collective labour conflict in the Anglo Saxon World as the number of days lost through strike action has declined. In contract an increasing tendency to introduce new systems of third party intervention has been noted in Southern European countries where traditionally the judicial system has had the primary role in resolving collective conflicts.
    These new systems have been seen as offering a number of advantages (e.g. greater flexibility and speed of settlement) but it has been suggested that their development has been complicated not least because they often co-exist with traditional systems of conflict resolution, judicial and governmental (Brown ,2004).
    This paper considers the development of a new system of extra-judicial intervention in Spain established by social partner agreement in 1996. The Spanish employment relations context provided a particularly challenging environment for third party intervention: between 1990 and 1999 Spain lost significantly more working days per 1000 employees as a result of industrial action than any other EU country (Labour Market Trends, 2001).
    The paper examines the record of the new Spanish system and, in particular, its degree of success in establishing an autonomous role. The paper uses two sources of data:
    i)             Secondary data on the performance of national and regional systems
    ii)            Primary data from interviews with actors in the extra judicial system  
    The data provide evidence for the effectiveness of the new systems for resolving disputes, at both national and regional level. Their establishment has coincided with a decline in industrial action from 316 days per 1000 employers (1990-99) to 48(2000-2009). However the systems have a hybrid character, appearing to function as agencies independent of the judicial process in providing mediation facilities where strikes have been called but acting as less effective but still significant adjuncts to the judicial system by providing a compulsory pre-court mediation stage for rights issues.    

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  • No. 2-11 Leslie Gadman, Agnieszka Salajczyk,and Roger Williams "Commitment and Identity: An Exploration into the Integrative, Interactive, and Emergent Nature of Community Led Policy Making and Implementation."

    Social networking is changing the world of international government, finance and business. Amongst other things members of social networks are demanding greater transparency in corporate and government institutions. Research shows that there is a change in the balance of power in decision making and this in turn is leading to more innovative and sustainable solutions. Community led (bottom – up) innovation projects using social networking technology are emerging as a leading source of creative power engaging the wisdom of crowds as opposed to the single - mindedness of policy makers. Research shows that transparency, shared commitment, empathy and trust play an essential role in their success. Consequently, for community led networks to be effective, their members must be competent in building and maintaining excellent inter; intra; and extra - personal relationships. Analyzing data from multiple sources participating in the European Commission’s “Digital Agenda 2020” programme, the paper concludes that the success of this and programmes like it will depend on the desire of members to acquire history - making identities by maintaining identity defining commitments across the network. Implications for theory and research are discussed.
    Key words: Knowledge economy; innovation diffusion; trust and commitment.

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  • No. 1-11 Professor Grazia Iettto-Gillies, Emeritus Professor of Applied Economics,London South Bank University "Locational strategies of the world's largest transnationals. An empirical analysis of the network of affiliates in 1997."

    This paper considers the location strategies of companies and analyses the profile of the world's largest 664 transnationals, in terms of the locational structure of their foreign affiliates. The full list of companies as well as several empirical tables on them is given in the appendix. Following a discussion on the theoretical underpinnings of locational strategies, three basic indices are developed a) an internationalisation index which assesses the foreign projection of the company by the percentage of affiliates located abroad in relation to the total number of comapny's affiliates b) a network Spread index which assesses the extent to which companies spread their activities in various countries of the world c)a Herfindahl indiexs which assesses the concentration of affiliates in the various foreign countries in which the companies operate. When possible and when suitable, the empirical results on these indices are compared to relevant data on the macro-economy. The locational profile is analysed for the year 1997 and in relation to: size of the firms, the country of origin of the transnationals and the industries in which the companies operate. On the whole the study shows low tendency toward agglomeration.

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  • No. 2-10 Emiliano Cantoni, Kenneth D'Silva,and Martin Isaacs " The Determinants of Audit Fees. Further Evidence from the UK Charity Sector"

    Given the lack of literature and the ever growing relevance of charities, the present paper investigates the determinants of audit fees in the UK charity sector. It proposes a theoretical framework to determine the audit fee, which is empirically tested on a dataset of 119 “largest” charities. The paper also investigates the presence of a fee premium associated with (now) Big4 audit firms and expertise in charity auditing, and compares the results with those of a leading study in the UK context (Beattie et al., 2001). Our findings basically confirm those of Beattie et al. (2001). The evidence shows that size, risk, and fees for Non-Audit Services (NAS) are the main determinants of audit fee determination, while, contrary to research in the private sector, the organisational complexity of the charity does not seem to have significant influence on audit fees. The results also show a positive association between audit fees and NAS fees, the presence of an audit fee premium between Big4 and non-Big4 auditors, as well as significant higher remuneration for the auditors’ expertise.

    Keywords: audit fee determinants, charity sector, audit fee models, audit fee premium.

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  • No. 1-10 Inoue, H. "Several Characteristics of Service Multinational Corporations."

    This paper aims to explain the central importance of characteristics specific to service trade and service MNCs. It is composed of three main issues; the first is the theoretical relationships between international trade and local sales of services by service MNCs. It is impossible to apply traditional trade theory to local sales of services by service MNCs, which are classified in mode 3 of service trade by GATS. In this case, the probability of exporting the service depends not on the comparative advantage but on the competitive advantage of the service producing company. The second is the actual conditions of services FDI. The growth of services FDI is caused by the global deregulation and liberalization in service markets and by the tradability revolution through the development of information technology. The third is the general characteristics of service MNCs compared with that of manufacturing MNCs. The competitive advantages of service MNCs are different from those of manufacturing MNCs. In addition, non-equity forms of penetration are important in a number of service industries. Furthermore, the share of local sales in total sales by foreign affiliates of most service MNCs is remarkably high. However, they are classified into three types of industries from the detailed analysis of sales of services by foreign affiliates of U.S. MNCs.

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  • No. 1-09 Grimwade, N. "Anti-dumping Policy: An Overview of the Research."

    Over the last thirty years, interest in anti-dumping has grown as the number of countries involved in anti-dumping has increased. This has been reflected in a huge increase in the amount of research undertaken on antidumping and in the volume of research published on the topic. This paper seeks to provide a brief summary of the work done and the conclusions that can be drawn from it. It concludes with some pointers to new avenues of research.

    The paper reviews four areas of research on anti-dumping - namely, the theory of dumping, the measurement of anti-dumping activity, the determinants of anti dumping and the effects. The basic theory of dumping is now pretty well established, although important new work has been done on the effects of demand uncertainty and wage rigidity on the occurrence of dumping.

    A lot of work has also been done to refine the measurement of anti-dumping activity and to gage its intensity over time using the extensive data that is now available on anti dumping. However, it remains unclear whether or not the degree of activity is on a rising trend. Econometric studies of the determinants of anti-dumping point to a complex set of micro- and macro-economic factors that affect the trend of anti-dumping activity over time. There is some suggestion that the factors determining the use of anti-dumping may not be the same for developed as for developing countries.

    Finally, analytical studies of the effects of anti-dumping generally support the concerns that anti-dumping has harmful effects on competition and distort patterns of trade. Changes to the WTO anti-dumping code such as the introduction of a sunset clause have done something to limit these effects. However, the case for further revisions to the code remains a strong one.

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  • No. 2-08 Hack-Polay, D. "Missed opportunity - The underutilisation of forced migrants in the British economy."

    This paper looks at the work experiences of forced migrants in the country of origin and the host country. It builds on interviews with forced migrants from three different nationalities, Congo (DRC), Kosovo and Somalia to contrast their experience of work in the labour market in the United Kingdom. The research found that the place the migrants occupy in the host labour market is not often commensurate with their qualifications and professional baggage from the country of origin. The forced migrants often landed in menial, unskilled or semi-skilled jobs and the ethnicity or racial origin had little impact on the degree of success in the host labour market. The paper concludes that the professional demise of the forced migrants is not only a loss to them but that the host economy might be missing out on valuable human resources, given the high skills that the migrants harbour.

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  • No. 1-08 Ietto-Gillies, G. "A scholarly interaction and evaluation infrastructure for the XXI century."

    The paper starts with a brief review of some criticisms of the Peer Review system - labelled ex-ante top-down PR system - for the evaluation of academic works. The critiques are grouped into efficiency and effectiveness criteria. It then goes on to analyse the roles of Peer Review and how good the system is at fulfilling those roles. The paper then proposes an alternative system for evaluation of academic works: an Open Access system - labelled ex-post bottom-up Peer Comments system - that takes full advantage of the technologies of information and communication to secure a speedy and efficient dissemination and evaluation process; moreover, one that enhances the research interaction within the academic community.

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  • No. 2-07 Gadman, L. "History Making in User Innovation Networks."

    In today's knowledge economy, strategic outsourcing is an integral part of a company's value delivery and supply chain activity. Business drivers include increased speed to market, access to world class technology, focus on core competence and total cost savings and balance sheet improvement (Sveiby and Roland 2002, Savage 1996, Gadman 1996). However, for companies whose core competence is the discovery and commercialisation of innovative products and services, the perceived loss of control and leakage of intellectual property makes them less willing to commit to organisational models that are more nuanced and pluralistic (Hock 1999, von Hippel 2002). This paper considers the challenges associated with knowledge disclosure, diffusion and utilisation (Snowdon 2002, Spinosa, Flores and Dreyfus 2001) across user innovation networks and concludes that while successful examples exist in "Free" and "open source" software projects (Raymond 1999) commercialisation of innovation becomes more challenging when increasing levels of personal and financial commitment are required (Mauer, Rai and Sali 2004). Current research into core commitment structures of virtual communities has not been well established. By analyzing data from multiple sources on the Tropical Disease Initiative (TDI) the paper concludes that the success of user innovation networks depends on the desire of participants to acquire history-making identities (Gauntlett 2002, Spinosa et al., 1997) by maintaining identity-defining commitments across the network. Implications for theory and research are discussed.

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  • No. 1-07 Hack-Polay, D. "Expatriates and Homesickness."

    This paper addresses a forgotten issue in the area of international human resource management, that of homesickness. The paper argues the importance of addressing homesickness as an illness. It uses psychological and sociological literature to highlight the negative effects of homesickness on migrant workers and possibly on expatriates. These effects range from psychological disruptions to physical manifestations which affect the health and welfare of the individuals, and could ultimately impact on their performance in the expatriate assignment. The paper concludes that given the significant amount of evidence found to substantiate the argument that homesickness is an illness and detrimental to psychological and social well-being of displaced people, it is crucial that further research is undertaken in this area as affecting expatriates because the size of the investment in expatriate assignment commands that the risks of failure are minimised.

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  • No. 2-06 Rigby, M., O'Brien Smith, F. and Contrepois, S. "The Establishment of Enterprise Works Councils: Process and Problems."

    Works Councils have been an important avenue of collective representation in most Western European countries. They have facilitated the involvement of trade union movements, often with relatively low levels of membership density, in employment relations at enterprise level. However, recently doubts has begun to be expressed about the resilience of the institution, given its lower coverage in expanding areas of employment such as the small firms and private services sectors. In this article we examine qualitative data on the experience of establishing and consolidating works councils in these sectors in three countries, France, Germany and Spain. The comparative data suggests that the possibility of successfully extending the establishment of works councils in these difficult sectors is very much dependent on: establishing clarity about their role; strengthening the legislative context; deepening the engagement of trade unions external to the enterprise in their development; and ensuring the realism of actor expectations within the enterprise.

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  • No. 1-06 Frenz, M. and Ietto-Gillies, G. "The impact of internal and external networks on innovation performance. Evidence from the UK Community Innovation Survey."

    The paper is developed at the interface between innovation studies, the organization of the firm and internationalization. Specifically the paper explores the impact of internal and external networks on the innovation performance of enterprises operating in the UK. It uses information from the UK Community Innovation Surveys 3 and 2. The national and international dimensions of the networks are explored and tested for their impact on innovation performance. We find that both internal and external networks are positively associated with innovation performance and that the effects are greatest when an enterprise belongs to an international internal network.

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  • No. 2-05 Trif, A. "Change and continuity in the role of industrial relations actors in Romania: case study evidence"

    The process of accession of the former communist countries into the EU was expected to facilitate the emergence of industrial relations (IR) actors with roles similar to those of their counterparts in continental Western Europe. Examining the role of the state, employers (and their representatives) and trade unions, this paper shows the extent to which such comparable functions among IR actors can be observed in Romania. It also explores whether or not privatization has led to deeper changes in the role of IR actors at the company level. The paper focuses on the functions of the IR actors in four large chemical companies (two private and two state-owned enterprises) and investigates the impact of IR practices at higher levels of developments at the company level. In order to highlight and contrast the developments in the Romanian cases, brief comparisons with other Eastern European countries are presented. The findings indicate that while the three main actors have started to function similarly to their Western European counterparts, there is considerable continuity from pre-1989 era, indicating that institutional changes are path dependent. Overall, evidence does not show substantial differences between private companies and state-owned firms. This paper contributes towards a deeper understanding of the role of endogenous actors during the transformation from a centrally planned economy towards a market-based economy.

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  • No. 1-05 Cox, H. and Mowatt, S. "Networks, Relational Assets and the Internationalisation of Consumer Magazine Publishing"

    This paper uses theories of business networks to explore the changes that have arisen in the consumer magazine industry as a result of the ICT revolution, with particular reference to its international structure. The advent of desktop publishing systems helped to free magazine publishing companies from the restrictive working practices of the printing industry and led in the 1990s to a burst of innovative new titles being launched by, in many cases, new entrants. As a result, it can be demonstrated that the structure of the magazine print publishing industry in the UK was transformed into a more networked (neo-industrial) form. At the same time, various aspects of the communications revolution encouraged the industry's leading firms to adopt a stronger international profile. The paper shows that this international expansion has taken two distinct forms. On the one hand multi-media groups such as AOL Time Warner and Vivendi Universal have sought to generate economies of scale and scope based around joint venture alliances and foreign direct investments. More recently, magazine publishers have begun to utilise licensing to facilitate the export of their titles electronically to a range of other countries. It is suggested that the virtual networks of magazine publishers created through international licensing represents a particularly apposite example of how the ICT revolution is able to link together previously disconnected pools of location-specific knowledge. In this way firms within the industry are able to produce many versions of a given magazine title that reflect the tastes of local consumers without creating a formal organisational structure of bureaucratic management. Thus, such firms' foreign activities are being developed mainly through the utilisation of relational assets.

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  • No. 4-04 Brian Ardy and Gaby Umbach "The European Employment Strategy and employment policy in the UK and Germany "

    The Amsterdam Treaty of 1997 provided for an employment policy for the European Union. This policy could not operate by the normal EU method of common harmonized legislation. The sensitivity of employment policy and the very substantial policy differences, reflecting different traditions and philosophies, made this impossible. So the European Employment Strategy (EES) pioneered a new method of policy making, the Open Method of Coordination (OMC). This paper explains the nature of the OMC, as it applies to the EES, and considers the impact the policy has had on the employment policies of Germany and the UK. A comparison of the UK and Germany is of particular interest with regard to the EES, because it sheds light on how two countries, with very different institutional settings, are adapting to EU policy under the OMC. There is little evidence of an impact of the policy on employment policy. Until recently employment policy changed more in the UK, despite its very flexible labour market. German employment policy is now being modified, but in response to domestic unemployment and budgetary policies, rather than as a result of the EES. The EES has only been in operation for a limited time (since 1998) and its impact is perhaps more subtle. Rather than influencing policy directly, it is probably more important in shaping the attitudes of policy makers and advisers.

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  • No. 3-04 Antonello Zanfei "Multinational growth, innovation strategies and technology spillovers"

    Further developed and published as...
    Zanfei, A. (2005), 'Globalization at bay? Multinational growth and technology spill over' Critical Perspectives on International Business, 1,1: 5-17

    It will be argued that the nature and characteristics of international production are changing and new opportunities for technological spillovers to host economies are associated to this change. However the available evidence on the actual impact of the ongoing globalisation is shaky and contradictory. This seems to have led to a sort of deadlock in the current debate, which is much too often blocked in a sterile juxtaposition between pro-global and anti-global views based on rather weak empirical grounds. The fact that there is limited uncontroversial evidence of positive effects of international production may have to do with the lack of institutional tools available to govern the globalisation process. In other words, what is missing is a set of rules and institutions enabling the economies involved in international production activities to capture and share the potential benefits associated to it. From this perspective, the paper singles out the areas wherein new institutions are needed, and provides a few insights on some of the issues these institutions should address.

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  • No. 2-04 Inmaculada Martinez-Zarzoso and Celestino Suarez-Burguet "Transport Costs and Trade. Empirical Evidence for Latinoamerican Imports from the European Union"

    This paper aims to investigate the relationship between trade and transport costs. In previous studies the cost of transport was considered as an exogenous variable. However, an expanding volume of trade also reduces the unit cost of transport and therefore, the causal relationship between trade and transport costs may be operating in both directions. A transport-costs equation is estimated using data on transportation costs from the International Transport Data Base (BTI). The relationship between transport costs and trade is then analysed by applying a gravity model for sectoral imports for five South-American Countries from the European Union. We investigate the endogeneity of the trade and transport cost variables by estimating simultaneously both equations. Our results show that, while higher distance and poor importer's infrastructure notably increase transport costs, a higher volume of trade have the opposite effect, lowering transport costs. Moreover, trade is significantly deterred by higher transport costs and fostered by cultural similarities.

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  • No. 1-04 Manuel Cantavella, Ana Cuadros, Ismael Fernandez and Celestino Suarez "A Comparative Analysis of Elasticities in the European Union External Trade with Mercosur and Nafta"

    This paper aims to testing for long- and short-run differences in the elasticities of aggregate demand of Mercosur and Nafta for European Union exports during the 1967-1999 period. Based on the imperfect substitutes model proposed by Goldstein and Khan (1985), the long-run results provide consistently enough evidence about the existence of differences in the size of both income and price elasticities with respect to Mercosur and Nafta. The error correction model appears to predict the adjustment of variables to long-run equilibrium reasonably well.

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  • No. 28-03 Marion Frenz, Claudia Girardone and Grazia Ietto-Gillies "Foreign Ownership and Multinationality in Innovation. An Analysis of the Community Innovation Survey 2 for the UK Financial Services"

    Further developed and published as...
    Frenz, M. Girardone, C. and Ietto-Gillies, G. (2005) Multinationality matters in Innovation. The case of the UK Financial services' Industry and Innovation, 12, 1: 65-92

    The paper starts by highlighting a change of emphasis in the internationalisation literature from the nationality of ownership of the investor to the degree of multinationality of the company. This shift has implications for our understanding of innovation activities and their diffusion. It is in this context that the research sets out to test the hypothesis that multinationality is a more relevant characteristic than nationality of ownership in the interpretation of the results from the UK Community Innovation Survey (CIS). The study is confined to data from the CIS 2 for financial services, a sector where both innovation and internationalisation have been very significant in the 1990s. Following a discussion of methodology and data sources, the results are presented and analysed in sections four and five. They show that belonging to a group and multinationality are more significant characteristics than the nationality of ownership in a variety of innovation variables in financial services from the UK CIS 2. The innovation variables considered fall within the following elements: innovation propensity; levels of innovation; sources of innovations; innovation-related performance; aims of innovation. It is concluded that a full understanding of innovation activities within the enterprise may need to take account of some characteristics of the company to which the enterprise belongs and in particular its degree of multinationality and its size. It is suggested that: (a) future models explaining innovation from CIS data should allow for the multinationality of the company; and (b) that the CIS provides some information on the companies’ characteristics as well as those of the enterprises and specifically on multinationality and size.

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  • No. 27-02 Cox, H. and Mowatt, S. "Technology and Industrial Change: the Shift from Production to Knowledge-Based Business in the Magazine Print Publishing Industry"

    In attempting to explain the recent changes in the economic activity undertaken by firms, Alfred Chandler (2000) has embraced the concept of 'the Information Age', contrasting with his earlier periodisation of the 'Second Industrial Revolution'. The 'Information Age' is characterised as the contemporary period where the advent of information communications technologies (ICTs) has made possible changes in the organisation of economic activity undertaken by firms, such as the increasing use of networks rather than hierarchies as forms of co-ordination. Whereas integrated firms depended on ownership of mass-production technologies and managerial functions to be able to exploit both economies of scale and scope, firms are increasingly able to control and co-ordinate activity outside of their ownership boundaries, and are able to dissociate the knowledge of the value-creation process from manufacturing. This papers constructs a detailed analysis of the change in technology and organisation in the UK magazine print publishing industry from 1970 to 2000, as an example of an industry which has undergone a transformation to an Information Age industry.

    The paper is based on a review of public sources of information on the print publishing industry. Extensive use was made of holdings of the St. Bride's Printing Library and the archives of the Periodical Publisher's Association. A survey was made of available primary (ABC data, Price Commission reports, Company reports, and trade union materials) and secondary data (British Rates and Data (BRAD) data, Willing's Press Guides, marketing reports, and the database of the Printing Industries and Reprographics Association (PIRA)). In addition to this, supplementary interviews with actors within the industry inform the understanding of recent changes in print publishing and the operation of network forms of organisation.

    Magazine Print Publishers in the 1960s and 1970s typically adopted integrated forms of organisation, producing standardised mass-production products, such as weekly general interest magazines. The paper charts the changes in production technologies that resulted in the disintegration of the industry, and the entry of new actors in the market. The change in the firms within the market (and the relationships between them) was mirrored in internal changes to the incumbent firms, as the new ICT technologies allowed different arrangements both with the firms employees, and increasingly with external actors. The paper examines the shift to higher value-added specialised monthly magazines, and the subsequent move to a more consumer-driven focus. With the recent commercialisation of the internet and digital technologies, the paper examines how the magazine industry has moved from a production-driven basis to knowledge-seeking firms providing services, driven by increasingly close links with consumers. The magazine print publishing industry is one which illustrates the ICT-driven organisational changes made possible in the information age, as magazine publishers have moved from being information providers to mass markets, to seeking detailed knowledge of narrow-interest markets for which they are then able to develop products and services.

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  • No. 26-02 Cox, H. and Frenz, M. "Innovation and Performance in British-based Manufacturing Industries: Shaping the Policy Agenda "

    Further developed and published as...
    "Innovation and Performance in British-based Manufacturing Industries: shaping the policy agenda", The Business Economist, vol.33, no.2, pp.24-33

    This paper analyses the relationship between business performance, R&D expenditures and innovation output. It utilises the second Community Innovation Survey (CIS2), a large-scale survey into firms' innovation activities conducted in the UK by the DTI. We matched up CIS2 with performance data derived from the FAME database, using the four year period after the survey.

    We find that many enterprises who claim to have produced innovation output, did not register any expenditures on formal R&D. Moreover, we find evidence that it is innovation output, the introduction of new or improved products and processes, which is correlated to productivity growth, not a high expenditure on R&D.

    The UK's policy to support innovation via subsidising R&D expenditure may on the one hand fail to effectively target many firms who are successful innovators and on the other reward firms that engage in levels of R&D spending beyond the point where marginal social cost equals marginal social benefit. Our evidence strongly suggests that the key to supporting productivity growth in the economy as a whole is to develop policy initiatives that are able to facilitate product innovation directly.

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  • No. 25-02 Tan, M. "Managing Aviation Fuel Risk: Emerging Market's Airline Companies Perspective On The International Arena "

    An empirical analysis reveals two main directions for hedging. The first is to cross hedge jet fuel using other underlying futures contracts, which are highly correlated. The second method entails cross hedging emerging market currencies using major currencies futures contracts. In the oil market, empirical results imply that OLS estimators are superior to IV estimators in all cases. Cross hedging using the IV estimators would add more risk when compared to an unhedged position. The results reveal that jet fuel is best cross hedged with crude oil futures. As in the currency markets, only China, Singapore and Taiwan are able to effectively cross hedge. The performances of the estimators are mixed. Generally, the models using IV estimators have to be revised in most cases. Only in the case of Singapore and Taiwan were the findings consistent with results from other studies. However, in the case of China, OLS estimators outperform.

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  • No. 24-00 Ietto-Gillies, G. "Globalisation: An Analysis of Theorectical Perspectives and Dominant Causes "

    Further developed and published as...
    Ietto-Gillies, G. (2002), Transnational Corporations. Fragmentation amidst Integration. Routledge, Ch 9: 161-75

    The paper aims to give an analysis of globalisation in terms of its theoretical perspectives, root causes and general policy implications. Following the presentation of some definitions and of the specific character of globalisation, the paper considers the role of the technological environment and of transnational companies in the process. It then analyses the main theoretical approaches or theses on globalisation: hyperglobalism; scepticism and transformationalism. The subsequent analysis of causation starts with a distinction between driving forces and dominant forces – or causae causantes – of globalisation. The dominant causes are seen as a subset of the driving ones and are identified with those innovative elements in the technological and or organisational spheres which contribute to the development of the productive forces. Conclusions and policy implications follow.

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  • No. 23-00 Hayden, A. and Edwards, T. "The Erosion of the Country Of Origin Effect: A Case Study of a Swedish Multinational Company "

    Over the last two decades Swedish capital has undergone a rapid internationalisation. This has presented a significant challenge to the distinctive nature of the Swedish economy in general and its employment relations system in particular. A key question arising is: to what extent, and in what ways, are Swedish multinationals influenced by the distinctiveness of the country of origin in the way they manage their international work-forces? We investigate these issues through examination of data gathered from a case study of a large Swedish multinational. We show how the firm has adopted practices experienced in its foreign operations and deployed these throughout the corporation. This process has eroded, though not removed, the influence of the Swedish system on employment relations in the multinational, with the British and American systems appearing to exert a growing influence. We explain the findings with reference to managerial perceptions of the strengths and weaknesses of different 'national business systems'.

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  • No. 22-00 Cox, H., and Chan, K.Y. "The Changing Nature of Sino-Foreign Business Relationships, 1842-1941"

    Further developed and published as...
    Cox, H. and Kai Yiu Chan (2000), "The Changing Nature of Sino-Foreign Business Relationships, 1842-1941", Asia Pacific Business Review, vol.7, no.2, pp.93-110

    This paper uses material from two detailed case studies of western business in China to consider the changing role of compradors as economic intermediaries, particularly after the revolution of 1911. Western manufacturing and mining firms, such as British-American Tobacco and Kailan Mining Administration who both invested in Chinese production facilitlies around the turn of the century, needed to develop marketing and distribution systems within China to support their direct investments. Our paper shows how each of these firms developed an institutional framework based on joint-ventures that transformed the position of Chinese intermediaries from contracted employees to equity-based partnerships, helping to overcome the agency problems experienced in the operation of the earlier compradoric system. Thus economic factors, as well as the process of political upheaval, served to undermine the significance of the copradors in twentieth century China.

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  • No. 21-00 Mowatt, S. "The Changing Role of Women in Management and International Business: The Spanish Example"

    This paper seeks to describe the management experience for women in Spain, concentrating on the broad picture, then examining the individual experiences of managers in the workplace. The paper examines the cultural and sector specific barriers to female managers in Spain. The study examines the potential opportunities afforded to female managers by MNCs. An understanding of the role and experience of female managers in the Spain not only gives us a greater understanding as to the domestic Spanish business economy, but is of interest to international business management and to those interested in the position of women in management in general.

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  • No. 20-00 Mowatt, S. "The Economic Function of Trade Journals:Evidence from the processed Foods Sector"

    Trade journals have received relatively little academic study despite their importance to trade and industry. This paper attempts to define trade journals, as part of the larger business to business press, and to develop some approaches to developing an understanding of their economic function. Trade journals are examined with reference to the economic theory of clubs, transaction cost theory, the theory of market signalling, and within the framework of economic networks. The paper develops a conception of trade journals as a class of good exhibiting many features of a club good, fulfilling an important signalling role to industry, and lowering communication costs. The function of trade journals is facilitated by the complex network of linkages which is managed by the journal as a public good on behalf of its subscribers. As increasing internationalisation was a feature of the processed food industry during the period 1984-1994, the interaction between trade journals and this process was examined to throw light on the functioning of the above relationships.

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  • No. 19-99 McCallum, C. "Globalisation, Developments and Trends in the Changing New International Division of Labour"

    The purpose of this paper is to analyse the major changes in the patterns of the New International Division of Labour that have occurred during the past two decades.
    The paper takes as its starting point the seminal study of Frobel (1980) and his colleagues.
    The paper identifies three categories of changes to the NIDL: the changing spatial patterns of the division of labour over the past two decades, changes to the nature of the production patterns of Transnational Corporations and changes to the location and nature of NIDL labour processes. The paper examines how the concepts of 'core' and 'periphery' can also be applied within specific global industries. The paper seeks to identify some of the effects of these changing patterns upon the working lives of 'workers in an integrating world' (World Bank, 1995).
    The paper finds both that Frobel's work is deficient in certain respects, and that aspects of the work are still relevant today.

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  • No. 18-99 Cox, H., Mowatt, S. and Prevezer, M. "From Frozen Fishfingers to Chilled Chicken Tikka: Organisational Responses to Technological Change in the Late Twentieth Century"

    Further developed and published as...
    Cox, H., Mowatt, S. and Prevezer, M. (2002) 'The Firm in the Information Age: organizational responses to technological change in the processed foods sector' Industrial and Corporate Change, vol.11, no.1, pp.135-158

    This paper examines organisational response to technological change, using historical perspective to examine the changing impetus in new product development. The processed food sector is used as an example of the shift from integrated production-led firms, to consumer driven retailers as the focus of innovation. The limitations of a transactions cost-based explanation are addressed, and the paper highlights the centrality of information and intermediation to the theory of the firm.

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  • No. 17-99 Saad-Filho, A. and R. Mollo, M de L. "Inflation, Currency Fragmentation and Stabilisation in Brazil: A Political Economy Analysis "

    Further developed and published as...
    Saad Filho, A. and Mollo, R. 'Inflation and Stabilisation in Brazil: a Political Economy Analysis', Review of Radical Political Economics, 34 (2), 2002, pp.109-135

    This paper makes a political economy analysis of the Brazilian economy, focusing on the period of high inflation and on the 'Real' stabilisation plan (implemented in 1994). It explains the distributive and monetary aspects of inflation, analyses the reasons for the gradual fragmentation of the currency, and discusses the most important aspects of the Real plan: the de-indexation of the economy, and its rapid liberalisation and internationalisation. Finally, the paper demonstrates that, in spite of its success in reducing inflation, the Real plan remains vulnerable in several important respects. These weaknesses were responsible for the currency crisis of January 1999.

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  • No. 16-99 Cox, H., Mowatt, S. and Prevezer, M. "The Management of Subcontracted Networks as an Alternative to Internalisation: The Shift from the Standardised to the Specialised in Frozen and Chilled Foods"

    Further developed and published as...
    Cox, H., Mowatt, S. and Prevezer, M. (1999), "The Management of Subcontracted Networks as an Alternative to Internalisation: the shift from the standardised to the specialised in frozen and chilled foods", Global Business and Economics Review, vol.1, no.2, pp.119-38

    This paper is to highlight the management of subcontracted networks as an alternative to internalisation. The contrasting examples of the frozen food sector and the chilled ready meals sector are employed to examine the different economic relationships. The paper draws upon transaction costs economics, interdisciplinary literature from organisation studies, network theory, and sociology to contextualise the functioning of network relationships.
    The paper examines the shift in the role of the firm from producer, to the firm as co-ordinator of information flows. In contrast to the vertically integrated frozen food sector, the chilled food industry manifests plural organisational forms, with close-knit trust based inter-organisational networks and arms-length subcontracting.

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  • No. 15-99 Sakho, H. "The Role of Expatriate Managers in Global Economic Restructuring: Some Key Components and Constraints"

    Further developed and published as...
    Sakho, H. (2001), "The role of expatriate managers in global economic restructuring: some key components and constraints", in Hughes and Taggart (eds), International Business: European Dimensions, London: Macmillan, Ch. 4: 38-51

    This paper is about the role, place and function of senior expatriate managers in the "globalisation" process. Senior expatriate managers are considered by Transnational Corporations (TNCs) to possess high levels of technical and business expertise and are rewarded accordingly. They form the upper echelons of the core workforces of TNCs and are dispatched to foreign geographies to implement corporate globalisation strategies. The paper is also about some aspects of the impact of new technology and how this may affect expatriate managers, and expatriation policies of TNCs. It reflects dimensions of recently completed research, and presents findings and some preliminary suggestions. The paper points to a conceptual necessity to deconstruct the notion of "expertise" in order to understand the specific contribution of expatriate managers to globalisation; and to the possibility that these global managers may be playing an "indispensable" role in the management of the new phase of capitalist development.

    The paper hopes to demonstrate that the expatriation of senior executives attached to TNCs cannot be fully explained without an understanding of the nature of the role that these managers are playing in the globalisation process, and what components of this role are open to change.

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  • No. 14-98 Antonioni, P. and Ietto-Gillies, G. "Location of Affiliates and Degree of Internationalisation: An Analysis of the World's Largest 664 TNCs"

    Further developed and published as...
    Ietto-Gillies, G. (2002), Transnational Corporations. Fragmentation amidst Integration. Routledge, Chs 4 and 5; also in: Ietto-Gillies, G. "How Internationalized are EU Transnationals", Journal of Interdisciplinary Economics, 13, 1,2,3 pp.13-49

    This paper analyses the profile of the world largest 664 transnational companies, in terms of the locational structure of their foreign affiliates. Two basic indices are used: (a) a Network Spread index which assesses the extent to which companies spread their activities in various countries of the world; (b) an Internationalisation index which assesses the foreign projection of the company by the percentage of affiliates located abroad in relation to the total number of company's affiliates. When possible and suitable, the results on these indices are compared to data on the macroeconomy. The analysis considers the locational profile in relation to: size of the firm, country of origin of the transnational and industry in which the companies operate.

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  • No. 13-98 Saad Filho, A. "Currency Stablisation under Conditions of International Capital Mobility: The Case of Brazil"

    This paper challenges conventional interpretations of the real plan in two different ways. First, it argues that the contractionary monetary and fiscal policies that adorned its launch were largely irrelevant. Inflation was reduced primarily by the elimination of inertia and the repression of the distributive conflict through the internationalisation and liberalisation of the economy. Second, it shows that the plan is inconsistent, because it relies heavily on permanently high domestic interest rates in order to attract foreign capital. However, they destabilise the balance of payments and worsen the fiscal deficit endogenously.

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  • No. 12-98 Todeva, E. "East European Business Networks: A Review of Dependencies and Strategies and their Influence on Company Success"

    Further developed and published as...
    Todeva, E. (2000) 'Comparative Business Networks in Eastern Europe', Journal of East-West Business, vol. 6, N. 2., pp. 95-129

    This paper discusses the enterprise behaviour that was observed in the economies in Central and Eastern Europe during the transition period. It analyses the factors that determine the company performance particularly relating to government policies, industrial structures and managerial strategies for survival.

    As a result of our comparative analysis of published cases, a classification of the firms responces is proposed. It includes three main groups: a) 'transformed business networks,' b) 'newly established business networks,' and c) 'firms unable to transform their business networks.' In addition, the companies' linkages are grouped into national and international networks following Stephen Young's classification of international modes of market entry.

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  • No. 11-98 Croppenstedt, A. and Meschi, M. "Assessing Wage Discrimination in Italy"

    In this paper we use a random-coefficient approach to estimate frontier earnings functions by gender, marital status and north-south location for Italy. The results are used to generate estimates of wage discrimination. Although the overall discrimination measure is ambiguous we find that this is due to the counter veiling effect of education and tenure. Most southern-married women with high school or university education are to be found in the public administration sector where they are relatively better paid. The results show that it is education that removes discrimination, rather than sector of activity. Our results also support the crowding-in hypothesis. Southern-married males earn less if they work in sectors in which there is heavier concentration of females.

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  • No. 10-98 Ietto-Gillies, G. and Meschi, M. "A Comparison of Merged Versus Non-Merged Business Establishments in Britain: What Can we Learn from the Workplace Industrial Relations Survey?"

    Further developed and published as...
    Meschi, M. and Ietto-Gillies, G. (1998), "The Characteristics, Performance and Strategic Behaviour of Merged versus Non-merged Business Establishments in Britain". Review of Industrial Organization,. 15,1: 1-24

    The paper compares the structural characteristics, market conditions, organizational features, strategic behaviour and performance of merged versus unmerged private business establishments in the UK. The results are based on the analysis of the 1990 Workplace Industrial Relations Survey. The following conclusions are reached: merged establishments tend to be rather old, of small to medium size, more likely to involve manufacturing than services business, and to be part of conglomerate businesses. They are more likely to have an international market and to operate in oligopolistic markets. Nonetheless, they are perceived to operate in competitive conditions just as much as non-merged establishments. The merged manufacturing establishments are more likely to have been involved in restructuring strategies and to have cut jobs and achieved productivity gains. More merged establishments declare a below-average financial performance.

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  • No. 9-98 Ietto-Gillies, G. "Earnings from Foreign Direct Investment: Possible Effects on Domestic Economies and Patterns in EU Countries"

    Further developed and published as...
    Chesnais, F. Ietto-Gillies, G. and Simonetti, R. (eds) (2000), European Integration and Corporate Business Strategies, Ch. 4: 71-91

    The paper deals with the flow of earnings from inward and outward foreign direct investment. The paper starts with a review of some works which stress the intertemporal effects on the balance of payments and from it on the real sector of the economy. This is designed to give an introduction to the possible effects of earnings. Patterns of direct investment and earnings in the EU as a whole and in each member country are analysed.. The EU countries show different patterns with regard to both the size and the underlying trends of net incomes from foreign direct investment. This is followed by a more detailed analysis of the UK earnings position with each country of the European Union.

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  • No. 8-98 Bougheas, S., Demetriades, P. and Morgenroth, E. "International Aspects of Public Infrastructure Management"

    Further developed and published as...
    Bougheas, S. Demetriades, P. and Morgenroth, E., International Aspects of Public Infrastructure Management, Canadian Journal of Economics, 2003, 36, (4), 884-910

    Modelling infrastructure as an international public good in a two country model of trade where each country's social planner behaves strategically, we show that the equilibrium levels of infrastructure are sub-optimal from a global perspective. Utilising an appropriate econometric framework and data from 14 countries over the period 1971-90, we find evidence that accords well with the main predictions of our theory. Thus, we are able to offer a plausible theoretical explanation why public capital may be under-supplied, as suggested by previous empirical literature.

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  • No. 7-97 Cox, H. and Metcalfe, S. "The Role of Networks in the Early Development of the Borneo Company Limited "

    Further developed and published as...
    Cox, H and Metcalfe, S (1998), "The Borneo Company Limited: Origins of a Nineteenth-century Networked Multinational", Asia Pacific Business Review, vol. 4, no. 4, pp.53-69

    This work provides an analysis of a British international business organisation of the nineteenth century. The contention is that this represents and excellent example of the use of networks in the development of foreign direct investments. The case presented is that of The Borneo Company Limited (BCL) and what is demonstrated is that in the absence of formal hierarchical structures, Britain was able to produce genuine multinational companies as early as the mid nineteenth century, using networks as the means of economic co-ordination.

    The evidence put forward shows that BCL co-ordinated the transfer of capital and technology from Britain to Asia, and that it took responsibility for the management of such capital and technology in the foreign locations to which this investment was directed. Thus, although BCL's origins are founded in the mercantile activities of trading groups such as Hendersons or McEwans, the company itself rapidly evolved into an investment group in its own right.

    The early history of BCL has been misunderstood in some respects, as certain activites that the company controlled have been ascribed to others, most notably Hendersons merchants. Therefore, this paper will go some way to setting the historical record straight. The search for theoretical explanations of the development of the company has uncovered a series of control networks that were extremely successful, however idiosyncratic.

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  • No. 6-97 Ietto-Gillies, G. with Seccombe-Hett, T. "What do Internationalisation Indices measure?"

    Further developed and published as...
    Ietto-Gillies, G. (1998), "Different Conceptual Frameworks in the Assessment of the Degree of Internationalization: Empirical Analysis of Various Indices for the Top 100 Transnational Corporations", Transnational Corporations, 7, 1:17- 39

    The paper analyses two different indicators of internationalisation. The transnationality index developed by the UNCTAD links the internationalisation process to the dichotomy home versus foreign production. The network spread index considers internationalisation in relation to the number of countries in which the companies have production facilities. Following an introduction to the two indicators, estimates are considered and comparisons made at the level of countries and industries. More detailed data are developed for nine of the largest UK TNCs on both indicators. An analysis of meaning and significance and of the relative advantages of the two indicators follows.

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  • No. 5-97 Meschi, M. "Analytical Perspectives on Mergers and Acquisitions. A Survey "

    The aim of this paper is to supply the reader with a survey of the most widely debated issues related to mergers and acquisitions. We review the existing theoretical and empirical literature on the causes and consequences of mergers. The bulk of the empirical evidence on the profitability of mergers and on the stock performance of the merging partners shows that mergers are usually unprofitable and that the only group who stand to profit from a merger are the shareholders of the acquired company. This evidence has prompted a variety of theoretical explanations to be put forward as to why mergers occur. We provide a systematic review of such theories. We also analyse the related issue of the consequences of mergers on economic welfare, and review both theories and the empirical work on this issue.

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  • No. 4-97 McCallum, C. and Barrett, M. "Globalization and the Employment Relationship: Towards an Explanatory Framework "

    A number of concerns now cluster around the study of globalization in business. Attempts to theorise and explain the diverse phenomena associated with globalization have tended to concentrate on financial changes and global markets. In the HRM/IR field, these attempts leave out some of the central variables of the subject area: most notably the actors in the field, their behaviour and the reshaping of their institutions. This paper suggests that a broader, socially based theory of globalization is necessary to explain and predict the processes and events surrounding the employment relationship. Using the main elements of Giddens' four dimensional theory of globalization, the paper traces a number of social links and relationships between transitions taking place in and around the employment relationship.
    It concludes that the use of such a multi-dimensional model of globalization greatly increases understanding of the interaction between globalization and the constituent elements of the employment relationship.

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  • No. 3-97 Perez-Yruela, M. "Trade Unions and Industrial Relations in Spain (1975-94): From Old to New Practices "

    This paper represents an attempt to understand the evolution of the industrial relations system in Spain, and the roles unions have played in it. It is divided into four parts: The first gives a broad outline of the structure of the union movement, its organisational characteristics and its main strategies. The second analyses the history of the relationships between employers' organisations, trade unions and the state. It concentrates especially on the history of social pacts, which constitute a very important aspect of industrial relations practices during this period. The third section examines the history of industrial relations legislation, and its reception by the unions. In the final part, some conclusions are put forward.

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  • No. 2-97 Giuli, M. "The Competitiveness of the European Textile Industry"

    Further developed and published as...
    Giuli, M. (1998), 'The Competitiveness of the European Textile Industry', The Business Economist, 29, 2:34-56

    This paper sets out to assess the ability of Europe's textile manufacturers to respond to the competitive challenge of low-cost producers from Eastern Europe and the Far East. In doing so it utilises Porter's framework of the competitive advantage of nations to analyse the changing conditions under which the industry operates. The paper highlights the differing structure of the textile industry in the UK and Italy in order to demonstrate that the impact of competition may vary across the EU market as a whole. The conclusion suggests that the ability of European producers to resist the threat from low cost producers of textiles will lie in their ability to extend the strategy of developing high value added products directed towards the top-end of the market to embrace the middle range of consumers and it argues that the industrial groupings which feature collaborative but independent clusters of firms are most likely to succeed in this objective.

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  • No. 1-97 Monye, S. O. "Transaction Costs and the Internationalisation of Business Franchising"

    The assumption in the theory of international production is that direct foreign investment offers the best alternative for exercising effective control over foreign operations. This is based on the belief that, by externalising company-specific advantages, firms will be unable to efficiently constrain the behaviour of the other parties, and will therefore incur high transaction costs. This paper argues that the costs of overseas operation may be higher in direct foreign investment than in franchising and that the latter is a form of organisation in which arms-length associates can be effectively monitored and controlled without the need for substantial direct investment.

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