nep-bec New Economics Papers
on Business Economics
Issue of 2007‒02‒17
thirty papers chosen by
Christian Calmes
University of Quebec in Otawa

  1. Searching the heffalump: using traits and cognitive styles to predict entrepreneurial orientation By Cools, E.; Van den Broeck, H.
  2. Beyond economic criteria: A humanistic approach to organizational survival By Rosanas, Josep M.
  3. Managing with style: a qualitative study on how cognitive styles influence managerial behaviour By Cools, E.; Van den Broeck, H.
  4. Corporate Skills as an Ex-Ante Incentive to R&D Investment By Mariacristina Piva; Marco Vivarelli
  5. Firm Competitive Strategies and the Likelihood of Survival. The Spanish Case By Raquel Ortega-Argilés; Rosina Moreno
  6. Firms, nonprofits, and cooperatives: a theory of organizational choice By Herbst,Patrick; Pruefer,Jens
  7. Intellectual evolution of strategic management and its relationship with ethics and social responsibility By Melé, Domenec; Guillen, Manuel
  8. The role of culture in coping with uncertainty By Nardon, L.
  9. Entrepreneurship Capital: A Regional, Organizational, Team, and Individual Phenomenon By David Audretsch; Erik Monsen
  10. The Temporal Dimension of Wage Contracts in Oligopoly with Spillovers By Vasileios Zikos
  11. Afterlife – Who Takes Heart for Restart? By Metzger, Georg
  12. Technological and Organizational Changes, and Labor Flows: Evidence on French Establishments By Philippe Askenazy; Eva Moreno-Galbis
  13. Trends in Hours and Economic Growth By L. Rachel Ngai; Christopher A. Pissarides
  14. Why and where do headquarters move? By Strauss-Kahn, Vanessa; Vives, Xavier
  15. Corporate governance and board effectiveness : beyond formalism By Levrau, A.; Van den Berghe, L.A.A.
  16. Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions By Heinze, Anja; Wolf, Elke
  17. Testing the Strength of the Iron Cage: A Meta-Analysis of Neo-Institutional Theory By Heugens, P.P.M.A.R.; Lander, M.W.
  18. The Effect of Match Quality and Specific Experience on Career Decisions By Shintaro Yamaguchi
  19. Housing Market Cycles and Duration Dependence in the United States and Canada By Rose Cunningham; Ilan Kolet
  20. Investment-Specific Technology Shocks and Labor Market Frictions By Reinout De Bock
  21. Innovative work practices, information technologies and working conditions: evidence for France By Philippe Askenazy; Eve Caroli
  22. Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis By Kuckulenz, Anja
  23. Organization, evolution, cognition and dynamic capabilities By Nooteboom,Bart
  24. Determinants of Business Success: An Examination of Asian-Owned Businesses in the United States By Alicia M. Robb; Robert W. Fairlie
  25. Do Employment Protections Reduce Productivity? Evidence from U.S. States By David H. Autor; William R. Kerr; Adriana D. Kugler
  26. Market structure and business cycles: Do nominal rigidities influence the importance of real shocks? By Dave, Chetan; Dressler, Scott
  27. Managerial learning from on-the-job experiences: an integrative framework to guide future research By Wouters, K.; Buyens, D.
  28. A scatter search procedure for maximizing the net present value of a project under renewable resource constraints By Vanhoucke, M.
  29. Leadership Behaviour and Upward Feedback: Findings from a Longitudinal Intervention By Dierendonck, D. van; Haynes, C.; Borrill, C.; Stride, C.
  30. The Changing Nature of Manufacturing in OECD Economies By Dirk Pilat; Agnès Cimper; Karsten Bjerring Olsen; Colin Webb

  1. By: Cools, E.; Van den Broeck, H.
    Abstract: The aim of this study was to get more insight into what typifies Flemish entrepreneurs. We compared entrepreneurs with non-entrepreneurs for five traits (tolerance for ambiguity, self-efficacy, proactive personality, locus of control, need for achievement) and for cognitive styles. Additionally, we used these trait and cognitive characteristics to predict variances in entrepreneurial orientation (EO). Whereas the link between EO and organizational performance has been studied intensively, the examination of possible antecedents of EO remains a white space. We found that entrepreneurs (N = 177) score significantly higher on all traits than non-entrepreneurs (N = 60). For the cognitive styles (measured with the Cognitive Style Indicator), we found that non-entrepreneurs score higher on the knowing and planning style. No differences were found for the creating style. With regard to the link between the entrepreneur’s profile and EO, we found a significant contribution of tolerance for ambiguity and proactive personality to EO.
    Keywords: traits; cognitive styles; entrepreneurial orientation; entrepreneurs versus non-entrepreneurs
    Date: 2006–10–04
  2. By: Rosanas, Josep M. (IESE Business School)
    Abstract: There are many, often mutually inconsistent, theories about organizations that explain organizational phenomena to the same, limited extent. Most of them ignore the ethical dimension completely. In this paper we propose the basic principles for a theory of decision-making in organizations that has ethics at its core. This theory is based on the work of Juan Antonio Pérez López (1991, 1993) and is essentially a humanistic view of the interrelationships between people and their implications for organizational decision-making. First, we show how, in any interrelationship between two people, what each person learns is crucial to the future of the relationship. We then consider the different aspects of what each person learns. Second, we apply the preceding analysis to the organizational context, as a guide to organizational decision making, and show how any decision in an organization needs to be analyzed in terms of three criteria: short-run effectiveness, development of distinctive competence, and unity and identification of employees with the organization.
    Keywords: business ethics; ethical foundations of organization; trust; management theory; learning;
    Date: 2006–10–13
  3. By: Cools, E.; Van den Broeck, H.
    Abstract: Our study aims to contribute to an enhanced understanding of how cognitive styles, being individual preferences for perceiving and processing information, influence managerial behaviour using a qualitative approach. Based on content analysis of written testimonies of 100 managers, we found interesting differences between managers with a knowing, planning, and creating style with regard to both task-oriented behaviour (decision making) and people-oriented behaviour (conflict management, interpersonal relationships). Although the tasks of different managers are largely the same, our study demonstrates that not all managers execute their job in the same way. Our results complement previous quantitative research on the link between cognitive styles and managerial behaviour. Although there is a wide theoretical and empirical interest in cognitive styles, qualitative studies that might provide further support to the practical relevance of cognitive styles for organisations is currently lacking. Because of the pivotal role of strong management and executive leadership on employee attitudes and financial performance, it is important to better understand the manager’s characteristics. Our results may contribute to increased managerial self-awareness about the impact of their individual preferences on their management style.
    Keywords: cognitive styles; managerial job; qualitative study
    Date: 2006–10–04
  4. By: Mariacristina Piva (Università Cattolica Piacenza); Marco Vivarelli (Università Cattolica Piacenza, CSGR Warwick, Max Planck Institute of Economics Jena, and IZA)
    Abstract: Using a balanced panel of 215 Italian manufacturing firms over the 1995-2000 period, this paper investigates the determinants of R&D investment at the level of the firm. While finding further support for the well-established technology-push and demand-pull hypotheses, this study also tests the role of skill endowment in increasing a firm’s R&D investment. Consistently with the related managerial and economic literature, our basic result is that current skill endowment may significantly and positively influence a firm’s current R&D decision. These microeconometric results have been obtained using a Least Squares Dummy Variable Corrected (LSDVC) estimator, a recently-proposed panel data technique particularly suitable for small samples.
    Keywords: skills and innovation, R&D expenditures, endogenous skill bias, demand-pull, LSDVC estimator
    JEL: O31
    Date: 2007–01
  5. By: Raquel Ortega-Argilés; Rosina Moreno
    Abstract: This paper analyses the impact that some managerial competitive strategies followed by a firm may have on its survival. We have not only considered the classic strategies related to the passive learning process defined by Jovanovic (e.g., R&D or advertisement expenses), but we have also taken into account the active learning process ideas given by Ericson and Pakes. This way, we study the effect of product and process innovative strategies, with a detailed desegregation of their functions, on firm’s survival likelihood. Several non-parametric, semi-parametric and parametric techniques are computed to check the effect of the active learning theory on business survival in a set of Spanish manufacturing firms (1990-2001).
    Keywords: firm survival, active learning theory, duration analysis.
    JEL: L11 M13
    Date: 2007–02
  6. By: Herbst,Patrick; Pruefer,Jens (Tilburg University, Center for Economic Research)
    Abstract: This paper formalizes the difference between firms, nonprofits, and cooperatives and identifies optimal organizational choice. In a model of quality provision, we find a clear ranking of quality produced: Firms provide lowest and nonprofits highest levels of quality. Efficiency, however, depends on the competitive environment, the decision making process and technology. Cooperatives are optimal when decision making costs are low. Else, cooperatives are increasingly dominated by either nonprofits or firms (depending on the incremental costs of quality production). Finally, changes in the competitive environment affect organizational choice: Increased competition induces a shift towards firm organization and away from nonprofits.
    Keywords: theory of the firm;cooperatives;nonprofits;organizational choice; organizational change
    JEL: L21 L31 D23
    Date: 2007
  7. By: Melé, Domenec (IESE Business School); Guillen, Manuel (University of Valencia)
    Abstract: The main purpose here is to present an overview of the historical development of strategic management, through a critical review of the most relevant theoretical proposals, and to consider its links to ethics and corporate social responsibilities. From the very beginning of strategic management thought attempts have been made to fuse ethical aspects such as values of senior management or social values or social expectations to strategic management. More recently the stakeholder view of the firm has permitted the introduction of ethical theories into strategic management, and the resources-based view of the firm has lead to the consideration of competences, including moral virtues. Here it is argued that in spite of some advances, the integration of ethics into strategic management is not yet entirely satisfactory. Thus, it is suggested that new directions to focus the integration of ethics and strategic management are necessary.
    Keywords: Strategic management; Integrating ethics in management; Business ethics; Corporate social responsibility;
    Date: 2006–10–15
  8. By: Nardon, L.
    Abstract: This paper builds on prior cross-cultural research to explore the role of national culture in providing mechanisms to cope with uncertainty. The concept of uncertainty is critical to organization and management theories, and has been central in explaining the relationship between organizations and their environment. The cross-cultural literature suggests that people perceive and deal with uncertainty differently across cultures. This paper extends this literature by empirically testing the role of culture in providing managers with mechanisms to cope with uncertainty in Brazil and the United States. Results suggest that beliefs about control over the environment and rule orientation influence the choice of coping mechanisms employed across countries. Implications for theory and practice are discussed.
    Keywords: uncertainty, coping with uncertainty, uncertainty avoidance, national culture, content analysis, cross-cultural management
    Date: 2006–10–04
  9. By: David Audretsch; Erik Monsen
    Abstract: We review the role entrepreneurship capital in regional economic performance and extend it to explain the economic and entrepreneurial performance of organizations, teams, and individuals. Drawing on entrepreneurship and social capital research, we demonstrate that researchers at different level of analysis are in fact modeling the same underlying multi-level concept: entrepreneurship capital. We identify elements of entrepreneurship capital at and across the levels. Where there are gaps, we suggest new directions for research, public policy, and management practice that focus on enhancing organizational, interpersonal, and personal factors which promote entrepreneurial action at and across regional, organizational, team, and individual levels.
    Keywords: Entrepreneurship, Social Capital, Multilevel
    Date: 2007–02
  10. By: Vasileios Zikos (Dept of Economics, Loughborough University)
    Abstract: This paper examines how the duration of wage contracts influences innovation incentives, wages and employment. We find that wages are non-monotone in the duration of wage contracts. Furthermore, a positive and one-to-one relation between innovation and union utility exists and both attain their highest value under a long-term contract. Profits may vary depending on the extent of R&D spillovers and the associated raising rivals' cost incentive, although they are highest when union/firms engage in a long-term contractual relation. Testable predictions to discriminate between short-term and long-term contracts are also discussed.
    Keywords: Wage contracts; R&D; Spillovers; Raising rivals' cost.
    JEL: J41 J51 L13 O31
    Date: 2007–02
  11. By: Metzger, Georg
    Abstract: The performance of young and newly founded firms depends largely to the human capital of the firm owner. The entrepreneur is therefore one of the main success factors for the firm. Yet entrepreneurs differ considerably in their background and characteristics. Particularly, founders’ individual entrepreneurial experience is a property that might be crucial for firm development, though it is part of the firm’s human capital, too. Business failures, namely bankruptcies, may trigger the transition from being a novice entrepreneur to becoming an entrepreneur who is entrepreneurially experienced. About 3 percent of novice entrepreneurs who file for bankruptcy reestablish afterwards. On average, slightly more than 15 months will elapse until such ‘fallen’ entrepreneurs venture out anew. They differ from entrepreneurs not willing or able to take a second chance in several respects.
    Keywords: Bankruptcy, Business Failure, Restart, Second Chance
    JEL: G33 J23 M13
    Date: 2006
  12. By: Philippe Askenazy (Paris Sciences Economiques and IZA); Eva Moreno-Galbis (Université du Mans)
    Abstract: This paper investigates the effects of organizational and technological changes on job stability of different occupational categories in France. We conduct an empirical analysis in which we make extensive use of a unique data set on a representative sample of French establishments. Working with various indicators of labor flows (gross labor flows, hiring rate, firing rate, net labor flows and churning flows), we find that the use of new technology seems to have a positive effect on aggregate job turnover and, more specifically, turnover among manual workers. In contrast, innovative workplace organizational practices are related to lower turnover among clerical workers and intermediate professionals and have a positive effect on churning among managers.
    Keywords: labor flows, information and communication technologies, organizational change
    JEL: J23 J41 J63 L23 O33
    Date: 2007–01
  13. By: L. Rachel Ngai (CEP, London School of Economics and CEPR); Christopher A. Pissarides (CEP, London School of Economics, CEPR and IZA)
    Abstract: We study long-run trends in market hours of work and employment shifts across economic sectors driven by uneven TFP growth in market and home production. We focus on the substitutions between market and home production and on the structural transformation between agriculture, manufacturing and services. The model can rationalize the observed falling or U-shaped pattern for aggregate hours, the complete marketization of agriculture and manufacturing, and the shift from agriculture to services without violating balanced aggregate growth. We find support for the model’s predictions in long-run US data.
    Keywords: hours of work, labour supply, structural transformation, home production, marketization, balanced growth
    JEL: J21 J22 O14 O41
    Date: 2007–01
  14. By: Strauss-Kahn, Vanessa (INSEAD); Vives, Xavier (IESE Business School)
    Abstract: This paper analyzes decisions regarding the location of headquarters in the U.S. for the period 1996-2001. Using a unique firm-level database of about 30,000 U.S. headquarters, we study the firm and location-specific characteristics of headquarters that relocated over that period. Headquarters are increasingly concentrated in medium-sized service-oriented metropolitan areas, and the rate of relocation is significant (5% a year). Larger (in terms of sales) and younger headquarters tend to relocate more often, as do larger (in terms of the number of headquarters) and foreign firms, and firms that are the outcome of a merger. Headquarters relocate to metropolitan areas with good airport facilities with a dramatic impact, low corporate taxes, low average wages, high level of business services, same industry specialization, and agglomeration of headquarters in the same sector of activity, with all agglomeration variables having an important and significant impact.
    Keywords: Agglomeration externalities; business services; communication costs; congestion; corporate history; mergers; nested logit;
    Date: 2006–02–09
  15. By: Levrau, A.; Van den Berghe, L.A.A.
    Abstract: Mainstream research on boards of directors has been focusing on a direct relationship between board characteristics and firm performance, but up till now the results are inconclusive. Different reasons are put forward to explain this inconsistency, but it can be argued that ‘traditional’ board research has been neglecting potential intervening variables. In this paper we present a process-oriented model for board effectiveness by relying on the corporate governance literature and the literature on group effectiveness. We follow the input-process-output approach to extract the significant variables from literature and integrate them into a research framework for studying board effectiveness. In particular, we identify three intervening variables (cohesiveness, debate and conflict norms) which we believe mediate the effects of board characteristics on board performance. The rationale for including these ‘process’ variables is the belief that the interactions and relationships among board members determine to a large extent the collective outcomes of the board of directors. In this respect, the model goes beyond the traditional structural attributes of boards of directors to include behavioural or attitudinal measures of board effectiveness. It also highlights the need for a multi-disciplinary approach in empirical research on boards of directors.
    Date: 2006–10–04
  16. By: Heinze, Anja; Wolf, Elke
    Abstract: Most existing analyses on the gender wage gap (GWG) have neglected the establishment as a place where inequality between male and female employees arises and is maintained. The use of linked employee-employer data permits us to move beyond the individual and consider the importance of the workplace to explain gender pay differentials. That is, we first provide a comprehensive study on the effects of various firm characteristics and the institutional framework on the GWG in Germany. The innovation of our research is that we do not just compare average male and female wages (of specific groups of employees), but look at within-firm gender wage differentials. Our results indicate that the mean GWG within firms is smaller than the average overall GWG. Furthermore, we can show that firms with formalized co-determination (works council) and those covered by collective wage agreements are more likely to have smaller GWG. It is also interesting to note that the wage differential between men and women decreases with firm size and increases with the wage level.
    Keywords: gender wage gap, unions, works councils, discrimination, within-firms wage differentials
    JEL: J16 J31
    Date: 2006
  17. By: Heugens, P.P.M.A.R.; Lander, M.W. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In this study, we use meta-analytical techniques to quantitatively synthesize and evaluate the sizeable body of empirical work that has been conducted under the banner of neo-institutional theory. We find strong support for the influence of mimetic pressures on organizational isomorphism, but support for the predicted roles of normative and coercive factors is mixed. Similarly, we find that the strategic isomorphism, the homogenous application of corporate policies, tends to translate into symbolic but not substantive performance effects. In combination with additional moderator analyses, these findings suggest new directions for future research.
    Keywords: Meta-analysis;Neo-Institutional Organization Theory;Isomorphism;Corporate Performance;Artefact Corrections;Moderator Analysis;
    Date: 2007–01–25
  18. By: Shintaro Yamaguchi
    Abstract: This paper evaluates the effect of match quality and specific experiences on career decisions using NLSY79. I construct a dynamic career decision model which departs from the previous work in two respects. First, it deals with heterogeneous agents. Second, the returns to tenure and career specific experiences are taken into account. I show that match qualities have significant effect on job and career turnover decisions. In particular, career match quality has a greater effect on career decisions than employer match quality. However, I find that returns to tenure and career specific experience have little effect on job and career turnovers.
    Keywords: Specific Human Capital, Occupational Choice, Matching
    JEL: J24 J31 J41 J62
    Date: 2007–02
  19. By: Rose Cunningham; Ilan Kolet
    Abstract: Housing wealth is a large component of total wealth and plays an important role in aggregate business cycles. In this paper, we explore data on real house price cycles at the aggregate level and city level for the United States and Canada. Using a panel of 137 cities, we examine the duration, size, and correlations of housing market cycles in North America. We find that North American housing cycles are long, averaging five years of expansion and four years of contraction, and there is a fairly high degree of correlation in house price cycles between U.S. and Canadian cities. We estimate a discrete time survival model with a probit specification for house price expansions and contractions. This model allows us to test for duration dependence. We find that housing market expansions have positive duration dependence since their exit probabilities increase with duration, while contractions seem to have no duration dependence. Standard determinants of house prices (interest rates, income and population growth) are included as controls.
    Keywords: Business fluctuations and cycles; Econometric and statistical methods
    JEL: E32 R21 C41
    Date: 2007
  20. By: Reinout De Bock (Northwestern University, Department of Economics)
    Abstract: This paper studies the implications of technical progress through investment-specific technical change in a business cycle model with search and matching frictions and endogenous job destruction. The interaction between the capital formation needed to reap the benefits of an investment-specific technology shock and gradual labor-market matching, generates hump-shaped, persistent responses in output, vacancies, and unemployment. The endogenous job destruction decision also leads to small but persistent endogenous fluctuations in total factor productivity. Simulations suggest a limited role for investment-specific technology shocks as a source of business cycle fluctuations compared to a standard real business cycle model.
    Keywords: LaborMarket Frictions, Investment-specific Technology Shocks, Business Cycles
    JEL: E24 E32 J64
    Date: 2007–01
  21. By: Philippe Askenazy; Eve Caroli
    Abstract: We investigate the impact of new work practices and information and communication technologies (ICT) on working conditions in France. We use a unique French dataset providing information on individual workers for the year 1998. New work practices include the use of quality norms, job rotation, collective discussions on work organization and working time flexibility. Working conditions are captured by occupational injuries as well as indicators of mental strain. We find that workers involved in the new practices face working conditions that are significantly worse than those of workers in non innovative work practices. But, the picture is mixed for ICT that seem to make the workplace safer and less risky.
    Keywords: New work practices, technology, working conditions, occupational injuries.
    JEL: J28 L23
    Date: 2006
  22. By: Kuckulenz, Anja
    Abstract: Wage and productivity effects of training are compared to study how the training rent is shared between employers and employees. With panel data from 1996-2002, I analyse the impact of continuing training on wages and productivity in a Cobb-Douglas production framework. Using system GMM techniques allows me to account for endogeneity and time invariant unobserved factors. Results suggest that the training rent is shared between employer and employee due to a positive effect of continuing training on both wages and productivity. The effect on productivity is about three times higher than the one on wages. High skilled workers capture a larger share of the rent than low skilled workers.
    Keywords: continuing vocational training, system GMM estimation, wage effect, productivity effect, external effect
    JEL: C21 C23 J24 J31
    Date: 2006
  23. By: Nooteboom,Bart (Tilburg University, Center for Economic Research)
    Abstract: Using insights from 'embodied cognition' and a resulting 'cognitive theory of the firm', I aim to contribute to the further development of evolutionary theory of organizations, in the specification of organizations as 'interactors' that carry organizational competencies as 'replicators', within industries as 'populations'. Especially, I analyze how, if at all, 'dynamic capabilities' can be fitted into evolutionary theory. I propose that the prime purpose of an organization is to serve as a cognitive 'focusing device'. Here, cognition has a wide meaning, including perception, interpretation, sense making, and value judgements. I analyse how this yields organizations as cohesive wholes, and differences within and between industries. I propose the following sources of variation: replication in communication, novel combinations of existing knowledge, and a path of discovery by which exploitation leads to exploration. These yield a proposal for dynamic capabilities. I discuss in what sense, and to what extent these sources of variation are 'blind', as postulated in evolutionary theory.
    Keywords: evolutionary economics;organization;cognition;dynamic capabilities
    JEL: D21 L22 O31 B52
    Date: 2007
  24. By: Alicia M. Robb (University of California, Santa Cruz); Robert W. Fairlie (University of California, Santa Cruz, RAND and IZA)
    Abstract: Using confidential and restricted-access microdata from the U.S. Census Bureau, we find that Asian-owned businesses are 16.9 percent less likely to close, 20.6 percent more likely to have profits of at least $10,000, and 27.2 percent more likely to hire employees than whiteowned businesses in the United States. Asian firms also have mean annual sales that are roughly 60 percent higher than the mean sales of white firms. Using regression estimates and a special non-linear decomposition technique, we explore the role that class resources, such as financial capital and human capital, play in contributing to the relative success of Asian businesses. We find that Asian-owned businesses are more successful than whiteowned businesses for two main reasons - Asian owners have high levels of human capital and their businesses have substantial startup capital. Startup capital and education alone explain from 65 percent to the entire gap in business outcomes between Asians and whites. Using the detailed information on both the owner and the firm available in the CBO, we estimate the explanatory power of several additional factors.
    Keywords: Asians, entrepreneurship, startup capital, self-employment
    JEL: J15 L26
    Date: 2007–01
  25. By: David H. Autor (MIT, NBER and IZA); William R. Kerr (Harvard Business School); Adriana D. Kugler (University of Houston, NBER, CEPR and IZA)
    Abstract: Theory predicts that mandated employment protections may reduce productivity by distorting production choices. Firms facing (non-Coasean) worker dismissal costs will curtail hiring below efficient levels and retain unproductive workers, both of which should affect productivity. These theoretical predictions have rarely been tested. We use the adoption of wrongful-discharge protections by U.S. state courts over the last three decades to evaluate the link between dismissal costs and productivity. Drawing on establishment-level data from the Annual Survey of Manufacturers and the Longitudinal Business Database, our estimates suggest that wrongful-discharge protections reduce employment flows and firm entry rates. Moreover, analysis of plant-level data provides evidence of capital deepening and a decline in total factor productivity following the introduction of wrongful-discharge protections. This last result is potentially quite important, suggesting that mandated employment protections reduce productive efficiency as theory would suggest. However, our analysis also presents some puzzles including, most significantly, evidence of strong employment growth following adoption of dismissal protections. In light of these puzzles, we read our findings as suggestive but tentative.
    Keywords: dismissal costs, employment fluctuations, entry and exit, labor productivity, TFP, entrepreneurship
    JEL: J11 J21 J31 J61
    Date: 2007–01
  26. By: Dave, Chetan; Dressler, Scott
    Abstract: This paper investigates the relative importance of shocks to total factor productivity (TFP) versus the marginal efficiency of investment (MEI) in explaining cyclical variations. The literature offers contrasting results: TFP shocks are important in neoclassical environments, while relatively unimportant in neo-Keynesian environments. A model with endogenous capital utilization captures both results depending upon the degree of nominal rigidity. In the model, MEI shocks create a wedge between the nominal returns on bonds and capital. Nominal rigidities activate this wedge and place the relative importance on MEI shocks, while TFP shocks dominate when prices are perfectly flexible.
    Keywords: Business Cycle Fluctuations; Nominal Rigidities; Exogenous Shocks
    JEL: E32 C51
    Date: 2007–02
  27. By: Wouters, K.; Buyens, D.
    Abstract: Both scholars and practitioners increasingly attest to the importance of developmental on-the-job (OTJ) experiences as the primary source of managerial learning. However, there is no single theory of managerial OTJ learning; several elements are missing in the conceptualization of the developmental OTJ experience construct, no comprehensive nomological network of the construct has been developed so far, and the underlying mechanisms explaining the relationship with relevant learning outcomes have not been examined in depth. In response to these shortcomings, current paper proposes an integrative framework of managerial learning from developmental OTJ experiences. First, we suggest developing a better understanding of the developmental OTJ experience construct by considering it from a scope beyond the managers’ job assignments, by also including more quantitative measures of OTJ experience and by looking further than the current job. Next, the central variable of interest is linked to individual and situational variables that influence directly the extent to which managers are confronted with developmental OTJ experiences as well as involve conditions that enhance or inhibit managerial learning (i.e. moderating mechanisms). Finally, our model emphasizes the importance to take into account relevant mediating mechanisms in order to fully understand the impact of OTJ experiences on managerial learning. Building on our model, we conclude with a discussion of promising avenues for future research.
    Date: 2006–10–04
  28. By: Vanhoucke, M.
    Abstract: In this paper, we present a meta-heuristic algorithm for the well-known resource-constrained project scheduling problem with discounted cash flows. This optimization procedure maximizes the net present value of project subject to the precedence and renewable resource constraints. The problem is known to be NP-hard. We investigate the use of a enhanced bi-directional generation scheme and a recursive forward/backward improvement method and embed them in a meta-heuristic scatter search framework. We generate a large dataset of project instances under a controlled design and report detailed computational results. The solutions and project instances can be downloaded from a website in order to facilitate comparison with future research attempts.
    Keywords: Resource-constrained project scheduling; Net present value; Scatter search
    Date: 2006–10–04
  29. By: Dierendonck, D. van; Haynes, C.; Borrill, C.; Stride, C. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: A sample of 48 managers and 308 staff members of a community health care organization took part in a study to investigate the influence of participating in an upward feedback program on leadership behaviour, both as indicated be self-ratings and subordinates? ratings. The research design consisted of three measurement points within one year. The intervention included managers receiving upward feedback and a management skills workshop. The results showed a negative effect of the program on leadership behaviour as rated by the staff. Furthermore, managers reduced their self-ratings in the condition where they participated in both a feedback session and an management skills workshop.
    Keywords: Leadership Behaviour;Upward Feedback;Management;Self-rating;
    Date: 2007–01–25
  30. By: Dirk Pilat; Agnès Cimper; Karsten Bjerring Olsen; Colin Webb
    Abstract: This paper provides empirical evidence on the changing nature of manufacturing in OECD countries, including the continued loss of employment in the manufacturing. It examines the extent to which manufacturing output and employment are declining in OECD countries and explores possible causes, including increased productivity, slow growth in demand for manufacturing products, loss of markets to imports, statistical and classification issues, and so on. The paper finds that the share of manufacturing in OECD economies is declining and argues that this is likely to continue. It also presents...
    Date: 2006–10–27

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