scholarly journals Drivers for vertical integration in the rail sector – using wagons as “relationship specific assets”

2016 ◽  
Vol 27 (2) ◽  
pp. 533-551 ◽  
Author(s):  
Jason Monios ◽  
Rickard Bergqvist
Keyword(s):  
Vertical Integration ◽  
Transaction Cost Economics ◽  
Content Type ◽  
Collaborative Environment ◽  
Case Comparison ◽  
Resource Characteristics ◽  
Vertical Cooperation ◽  
As Relationship ◽  
The Empirical Analysis

Purpose – The purpose of this paper is to analyse vertical integration in the rail sector using a combination of transaction cost economics (TCE), the resource-based view (RBV) and the relational view, through which rail wagons are viewed as “relationship specific assets”. Design/methodology/approach – The empirical analysis is based on a cross-case comparison of four case studies of intermodal operators in Europe, each exhibiting different levels of collaboration and integration between terminals, operators and sub-contractors. Findings – Viewing rail wagons as relationship specific assets rather than merely transaction specific (TCE) or firm specific (RBV) demonstrates that wagon ownership is not only a good indicator of the level of vertical cooperation but of the existence of trust and learning within a collaborative environment. Practical implications – The organisational setup is not derived purely from transaction or resource characteristics, but by the integration of processes through the purchase of assets that will be used to produce a service, with the expected levels of trust and commitment. In this sense, the role of the wagon as a relationship specific asset is a microcosm of the key elements of a successful intermodal transport system. Originality/value – As one of the key operational aspects of the rail sector is the use of expensive equipment and the relative responsibility for fixed and moveable assets, an analysis of the use of rail wagons as relationship specific assets allows a more dynamic understanding of vertical integration in the rail sector than currently provided by TCE or RBV alone.

Cooperative behaviour and place branding: a longitudinal case study in Italy

2016 ◽  
Vol 19 (2) ◽  
pp. 156-172 ◽  
Author(s):  
Chiara Rinaldi ◽  
Alessio Cavicchi
Keyword(s):  
Geographical Area ◽  
Place Branding ◽  
Cooperative Behaviour ◽  
Longitudinal Case Study ◽  
Case Study Methodology ◽  
Content Type ◽  
Study Methodology ◽  
As Relationship

Purpose This paper aims to understand the motivations driving cooperative behaviour between heterogeneous stakeholders in place-branding activities, focusing on contract-based and relation-based cooperation constructs. Design/methodology/approach The longitudinal case study method is used to help understanding how the investigated network has evolved over four years from an attempt to build a regional umbrella-brand to a network contract between 13 enterprises. Findings The findings suggest that the relationships of trust and shared values among stakeholders are essential to foster cooperation, but also that contract-based governance complements a relation-based governance, enhancing the performance of the alliance. Research limitations/implications The main limitation is related to the case study methodology, as results are strongly dependent on the specific characteristics of the stakeholders and the geographical area analysed. Social implications The role of stakeholders in building a place brand is increasingly important. When analysing cooperative behaviour drivers, more attention should be paid to such intangible assets as social, human, relational and organisational capital. Originality/value This longitudinal case study emphasises that for success in place-branding activities, contract-based cooperation can be particularly useful at the beginning of a network alliance, while relation-based cooperation ensures the strength and continuity of the partnership but it takes time to develop. Responsible leaders, working as relationship facilitators/enablers, are important to keep network members engaged, by creating trust and favouring mutual beneficial relationships between stakeholders.

Patenting or not? The dilemma of academic spin-off founders

2019 ◽  
Vol 25 (1) ◽  
pp. 84-103 ◽  
Author(s):  
Salvatore Ferri ◽  
Raffaele Fiorentino ◽  
Adele Parmentola ◽  
Alessandro Sapio
Keyword(s):  
Knowledge Transfer ◽  
Organizational Performance ◽  
Explicit Knowledge ◽  
Content Type ◽  
Econometric Methods ◽  
Parent University ◽  
Unexpected Findings ◽  
The Impact ◽  
The Empirical Analysis

PurposeThe purpose of this paper is to analyze the impact of patenting on the performance of academic spin-off firms (ASOs) in the post-creation stage. Specifically, our study analyses how the combination of knowledge transfer mechanisms by ASOs and patents can foster ASOs’ early growth performance.Design/methodology/approachThe authors explored the relations between patenting processes and spin-off performance through econometric methods applied to a broad sample of Italian ASOs. The research adopts a deductive approach, and the hypotheses are tested using panel data models by considering the sales growth rate as the dependent variable regressed over measures of patenting activity and quality and assuming that firm-specific unobservable drivers of growth are captured by random effects.FindingsThe empirical analysis shows that the incorporation of knowledge transferred by the parent university and academic founders through patents affects the performance of ASOs. Specifically, the authors find that the number of patents is a positive driver of ASOs’ performance, whilst patent age does not have a significant impact on growth. Moreover, spin-offs with a larger endowment of patents obtained before foundation, surprisingly, grow less on average.Practical implicationsThe findings have implications for ASO founders by suggesting that patenting processes reap benefits. However, in the trade-off of external knowledge access vs internal knowledge protection, it may be better to begin patenting after the foundation of ASOs.Originality/valueThe authors enrich the on-going debate about the connections between knowledge transfer and organizational performance. This paper combines the concepts of patents and ASOs by providing evidence on the role of patenting processes as a transfer mechanism of explicit knowledge in ASOs. Furthermore, the authors contribute to the literature on costs and benefits of patents by hinting at unexpected findings.

Style and substance: a case study of the expansion of mature business-to-business relationships in the Italian clothing industry

2017 ◽  
Vol 32 (1) ◽  
pp. 153-166 ◽  
Author(s):  
Mariachiara Colucci ◽  
Marco Visentin
Keyword(s):  
Demand Uncertainty ◽  
Clothing Industry ◽  
Business Relationships ◽  
Social Dimensions ◽  
Content Type ◽  
Relational Continuity ◽  
Business To Business ◽  
The Empirical Analysis

Purpose This paper aims to propose a model of the determinants of the expansion of mature business-to-business relationships in the downstream channel of the Italian clothing industry. The authors investigate the role of both economic and social determinants of retail buyers’ intentions to expand their relationships with a seller. Design/methodology/approach The empirical analysis is based on surveys of more than 150 retail buyers in mature relationships with a major clothing company. This context offers a unique opportunity to explore the interplay between the need for stable relationships and the need to continuously innovate to satisfy consumer demand, given rapidly changing tastes and styles, which can inhibit relationship expansion. Findings Buyers’ intentions to expand relationships are primarily determined by the absence of a formal agreement with the seller. Perceptions of a seller’s goodwill seem to overshadow the detrimental effects of two likely sources of opportunism in the clothing industry: demand uncertainty and the availability of alternative suppliers. Findings also provide evidence of a substitutive effect of formal control and trust in mature business relationships. Originality/value The authors provide insights into the dynamics of mature business relationships with a focus on expansion, rather than just the propensity for relational continuity, and they show how the interplay of transaction costs and social dimensions leads to this expansion. The authors also provide empirical evidence of a context, the clothing industry, where downstream relationships represent an important source of competitive advantage.

IP, openness, and innovation performance: an empirical study

2017 ◽  
Vol 55 (6) ◽  
pp. 1307-1327 ◽  
Author(s):  
Davide Aloini ◽  
Valentina Lazzarotti ◽  
Raffaella Manzini ◽  
Luisa Pellegrini
Keyword(s):  
Design Methodology ◽  
Innovation Performance ◽  
Content Type ◽  
Know How ◽  
Protection Mechanisms ◽  
Great Relevance ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

Purpose Intellectual property protection mechanisms (IPPMs) include a variety of methods suitable for protecting valuable intangible assets of companies, and it is of great relevance to study how companies use these mechanisms to ensure the appropriability of innovation, in a context in which innovation is increasingly open. Indeed, there is a tension between the aim to share knowledge with external partners and the need to protect valuable know-how. The purpose of this paper is to investigate the relationship among the use of IPPMs, open innovation (OI), and the innovation performance of companies. Design/methodology/approach The study is based upon a survey conducted on 477 firms from Finland, Italy, Sweden, and UK in 2012. Findings The study shows that IPPMs have an indirect impact on innovation performance, mediated by the degree of openness. More precisely, IPPMs positively influence the level of openness, which, in turn, positively influences the innovation performance. Originality/value The empirical analysis contributes on two issues widely debated in the literature: the impact of IPPMs on innovation performance and the role of IPPMs as enablers or disablers of OI.

What drives the disintegration of the loan origination value chain in the banking business

2015 ◽  
Vol 21 (2) ◽  
pp. 288-311
Author(s):  
Enzo Scannella
Keyword(s):  
Vertical Integration ◽  
Value Chain ◽  
Business Models ◽  
Transaction Cost Economics ◽  
Bank Lending ◽  
Bank Loan ◽  
Resource Based View ◽  
Content Type ◽  
Vertical Disintegration ◽  
Banking Business

Purpose – The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the perspective of the bank’s decision to vertically disintegrate the loan origination value chain. The main aim is to identify the relevant drivers of the decision to vertically disintegrate the credit assessment phase in the lending business. Design/methodology/approach – Transaction cost economics and information asymmetry are the typical perspectives of analysis of the vertical scope of business value chains. Findings – This paper argues that in order to capture the drivers underlying the dynamic evolution of the vertical scope of bank loan origination business models, the above perspectives must be combined and integrated further with a resource-based view and the modularity perspective. Combining managerial and financial perspectives, this paper offers an examination of the drivers of vertical disintegration in the lending value chain and, specifically, in the credit assessment phase. Originality/value – Although the existence of substantial research on value chain vertical integration/disintegration in the literature, none has directly focussed on the credit assessment value chain. It leaves a gap that the paper aims to overcome. The value chain disintegration has deep managerial and financial implications at firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive business model configurations in the bank lending industry.

An intellectual capital ontology in an integrated reporting context

2019 ◽  
Vol 20 (1) ◽  
pp. 83-99 ◽  
Author(s):  
Riccardo Stacchezzini ◽  
Cristina Florio ◽  
Alice Francesca Sproviero ◽  
Silvano Corbella
Keyword(s):  
Intellectual Capital ◽  
Value Creation ◽  
Social Ontology ◽  
Integrated Reporting ◽  
Core Element ◽  
Content Type ◽  
Creation Story ◽  
Socially Constructed ◽  
The Empirical Analysis

Purpose The purpose of this paper is to investigate the intellectual capital (IC) ontology in an integrated reporting context to explore the function that integrated report (IR) preparers assign to IC elements and the role of integrated thinking in this process. Design/methodology/approach Social ontology theory helps elucidate how an energy-sector company socially constructed an IC ontology in which IC is a core element of the value creation story told in the IR. The empirical analysis benefited from in-depth interviews with the corporate staff. Findings The subjective nature of IC ontology emerges, in that IC’s function is defined during the very process of IR preparation. The intangible elements drive sustainability-oriented financial value creation according to the sustainability approach embraced by the company’s business model. Integrated thinking both facilitates this perspective on IC is shared among various departments of the company and provides a procedure for scrutinising what counts as IC in this integrated reporting context. Research limitations/implications The research scope is limited to the IR preparation process. Further research could explore IC ontologies beyond this process. Originality/value This study is the first to explore IC ontology empirically within an innovative integrated reporting context. It opens paths to further research on the relationships between IC and integrated thinking.

Do remotely piloted aerial vehicles make terrorism more costly for terrorists?

2016 ◽  
Vol 27 (4) ◽  
pp. 470-486 ◽  
Author(s):  
Ummad Mazhar
Keyword(s):  
Urban Areas ◽  
Spillover Effects ◽  
Data Set ◽  
Content Type ◽  
Aerial Vehicles ◽  
Cast Doubt ◽  
Economic Inquiry ◽  
Principal Finding ◽  
The Empirical Analysis

Purpose The use of remotely piloted aerial vehicles (RPVs) as a counterterrorism strategy is intensely debated on grounds of legitimacy, political feasibility and human rights. This study aims to contribute to the understanding of the link between RPVs’ strikes and terrorism through evidence-based analysis. Design/methodology/approach Using insights from economic analysis of counterterrorism, the study hypothesized possible channels through which RPVs may increase costs for terrorism. A novel data set is gathered to empirically test the theory-consistent prediction of a negative link between RPVs’ strikes and terrorism in a multivariate econometric framework. Findings Focusing on RPVs’ strikes in Pakistan over 2008 to 2013, the analysis yields important new insights. The principal finding suggests that RPVs reduce overall terrorism, while, without negating the negative spillover effects of RPVs use, there is no evidence of a positive feedback from civilian casualties to terrorism. These findings are not driven by extreme observations and satisfy a number of conventional diagnostic checks. Practical implications A well-constructed comparison and empirical evidence in this study implies that RPVs may yield net benefits in terms of greater security at regional and national levels. Social implications Moreover, as a proactive counterterrorism measure, RPVs can be an effective policing tool in crowded urban areas facing the greater threat of terrorism. Originality/value The study is the first to systematically analyze the link between RPV strikes and the magnitude of terrorism. The groundbreaking analysis thus extends the scope of economic inquiry to the role of RPVs as a counterterrorism strategy at national, regional and global levels. The findings of the study cast doubt on the validity of many popular notions about RPVs strikes, as they find little support in the empirical analysis.

scholarly journals How does contract completeness affect tacit knowledge acquisition?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Longwei Wang ◽  
Meige Song ◽  
Min Zhang ◽  
Li Wang
Keyword(s):  
Knowledge Acquisition ◽  
Tacit Knowledge ◽  
Transaction Cost Economics ◽  
Empirical Support ◽  
Survey Method ◽  
Content Type ◽  
Quantitative Design ◽  
Shared Goals ◽  
Positive Effect

Purpose This study aims to empirically investigate the role of contracts in tacit knowledge acquisition in research and development (R&D) alliances. By combining the perspectives of sensemaking and transaction cost economics (TCE), this study proposes a model about the mechanisms through which shared goals and contract completeness jointly affect tacit knowledge acquisition. Design/methodology/approach This study adopted a quantitative design and used the questionnaire survey method to collect data. The authors finally collected data on 196 R&D alliance samples in China. Multiple regression analysis was used to test the hypotheses. Findings There is strong empirical support that contract completeness has a positive effect on shared goals and that shared goals have a positive effect on tacit knowledge acquisition. Meanwhile, contract completeness weakens the positive effect of shared goals on tacit knowledge acquisition. Therefore, this study reveals that contract completeness has an inverted U-shaped effect on tacit knowledge acquisition. Practical implications The findings suggest that managers should consider both the psychological and rational effects of contract governance simultaneously, thus recognizing the importance of a moderate level of contract completeness for tacit knowledge acquisition in R&D alliances. Originality/value This study enhances the current understanding of contract governance by integrating the sensemaking and TCE perspectives. The findings provide a possible explanation of how contracts affect tacit knowledge acquisition in R&D alliances. The authors expand the research on contract governance and alliance knowledge acquisition by revealing the inverted U-shaped relationship between contract governance and tacit knowledge acquisition.

Networking and developing collaborative relationships: evidence of the auto‐part industry of Brazil

2011 ◽  
Vol 26 (7) ◽  
pp. 514-523 ◽  
Author(s):  
Danny Pimentel Claro ◽  
Priscila Borin de Oliveira Claro
Keyword(s):  
Transaction Cost Economics ◽  
Dyadic Relationships ◽  
Collaborative Relationships ◽  
Content Type ◽  
Joint Actions ◽  
Specific Investments ◽  
Theoretical Support ◽  
Managerial Implications ◽  
Relational Behavior

PurposeThis study aims to assess the moderating effect of the business network on the effects of between relational behavior and the effects of transaction‐specific investments on joint actions.Design/methodology/approachThe study was a survey based field study designed using theoretical support from marketing channels, transaction cost economics and network perspectives.FindingsThe results show the importance of relational behavior and the network in coordinating joint actions, and this has relevant managerial implications for the coordination of a collaborative relationship. The characteristics of the relationship, its length as well as the size of each partner affect the collaborative efforts of the partners.Practical implicationsFirms and managers should understand not only the dyadic relationships they are in but also the network structure. Dyadic characteristics affect collaboration, while the network also has effects on the collaboration of partners in vulnerable positions.Originality/valueThe paper points out the role of the network as a countervailing safeguard for dyadic TSIs and network stability. Dyadic relationships are supported by the network.

Peloton’s ride to growth

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christopher Curtis Winchester ◽  
Erin Pleggenkuhle-Miles ◽  
Andrea Erin Bass
Keyword(s):  
Undergraduate Students ◽  
Vertical Integration ◽  
Theoretical Basis ◽  
Corporate Strategy ◽  
Transaction Cost Economics ◽  
Competitive Dynamics ◽  
Home Exercise ◽  
Content Type ◽  
First Mover Advantage ◽  
First Mover

Theoretical basis The theoretical basis for this case is a focus on vertical integration, first-mover advantage and competitive dynamics. Vertical integration is based on Williamson’s (1979) theory of transaction-cost economics as it relates to vertical integration; the discussion on first-mover advantage is built off of Suarez and Lanzolla’s (2005) dynamics of first-mover advantage; and the analyzes on competitive dynamics derives from the MacMillan et al. (1985) early empirical tests of interfirm rivalry dynamics. Research methodology The authors conducted extensive research using the following sources: IBISWorld, MergentOnline and academic journals, trade magazines and websites. Additionally, the authors successfully piloted the case on more than 350 undergraduate students enrolled in a business and corporate strategy course. Case overview/synopsis Peloton used vertical integration to control the creation of its own software, bikes, exercise classes and retail outlets. In doing so, Peloton was one of the first companies in the industry to have near full control of the production process (Gross and Caisman, 2019). Due to this integration, Peloton was one of the fitness equipment industry leaders. However, Peloton’s high level of vertical integration coupled with rapid growth led to lackluster profitability. Given the rise in popularity of in-home exercise equipment, Peloton had room to continue its growth, but the question remained whether it was strategically positioned to do so. Complexity academic level This case is best taught in undergraduate and graduate strategy courses. For undergraduate courses, it could be incorporated into lessons on competitive dynamics, internal analysis and first-mover advantage and strategic positioning. For graduate courses, it could be incorporated into lessons on vertical integration and delving more in-depth into the long-term sustainability of having a first-mover advantage.

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