scholarly journals Editorial

2018 ◽  
Vol 34 (60) ◽  
Author(s):  
Carlos Hernán González-Campo
Keyword(s):  
International Trade ◽  
Strategic Alliances ◽  
Local Development ◽  
Adjustment Costs ◽  
Formal Structure ◽  
Quintana Roo ◽  
Quality Analysis ◽  
Scientific Development ◽  
Adjustment Cost ◽  
Business Competitiveness

The 60th number of the Cuadernos de   Administración journal is the first one of 2018, a year in which we are consolidating this means of scientific dissemination, with the entry into several databases, the consolidation of our Editorial and Scientific committees and the process of internationalization of this publishing effort, which has promoted the dissemination of knowledge in Administration sciences throughout 42 years. On this occasion, the first paper entitled "Citizen participation through ICTs in the design of public policy in Colombia", presents the research results of a completed project, using data from 2013 and 2014, collected through surveys and interviews, to actors from different sectors in the department of Tolima, to assess the digitization strategy of the public sector. Opportunity strategies related to business competitiveness in restaurants in Mexico. Case: microenterprises in the municipality of Othón Payo. Blanco, Quintana Roo", is the second paper in this volume, wherein Mexican researchers analyze the relationship between organizational management and the business competitiveness of microenterprises in the restaurant sector in the municipality of Othón Payo Blanco, Quintana Roo. Among their main findings, they obtain that the business competitiveness in this region of Mexico is oriented towards technology and organizational culture, where strategic alliances are one of the strategies for achieving competitiveness within the sector. The third article is entitled "Quality Analysis of hotels service in Medellín through perceptual maps", is the result of a research wherefrom the perception of national and international guests staying in different hotels in Medellín, registered in the platform TripAdvisor, 57 hotels between 2005 and 2010 show that the factors most valued by guests are cleanliness, quality of rest and service above the location, price and comfort of the rooms, among others. "Sectorial adjustment costs induced by the Colombian pattern of international trade, 1991-2015", is the title of the fourth paper, wherein the authors analyze the adjustment costs induced by the Colombian international trade pattern for the 1991-2015 period; they calculate marginal intra-industrial trade indexes, adjustment costs and the use of the International Adjustment Cost Space and present different types of results. The fifth article, entitled "Craftsmanship and champeta: cultural industries and local development in the municipalities of Clemencia and María la Baja in the department of Bolívar", seeks to highlight the production process of cultural goods and services within the champeta manifestations and handicrafts in the municipalities of Clemencia and María la Baja in the department of Bolívar, where they are able to demonstrate local capacities for the creative production of goods. Finally, "Multi-business companies: The Leonisa case" is the name of the sixth paper in this volume, which presents the study of the joint management of multi-business companies, in an exploratory manner in the case study of the company Leonisa, a Colombian multi-business company in the textile sector. Among the relevant findings are the company not having a corporate center (CC) with a formal structure, but a multi-divisional structure from which to manage the business as a whole. It is important to remember that the content of each of these six papers is their authors' absolute liability and does not compromise the Universidad del Valle, nor the Faculty of Administration Sciences, and their dissemination is carried out for academic purposes, as a contribution to the scientific development of the area and to encourage debate on each of these issues. We thank each of the authors, the professional work of the referees who accompanied us in this issue, and especially you, our readers, for thinking of this means of dissemination as an option for consultation in the academic work you do. We hope to have publications from all members of this extended scientific community that we are trying to build and consolidate.

scholarly journals Opportunity Strategies related to Business Competitiveness in Restaurants in Mexico. Case: Micro-enterprises in the Municipality of Othon P. Blanco, State of Quintana Roo

2018 ◽  
Vol 34 (60) ◽  
Author(s):  
María Teresa Arana Soberanes ◽  
Rosa Amalia Gómez Ortiz ◽  
María Antonieta Andrade Vallejo
Keyword(s):  
Organizational Culture ◽  
Sample Size ◽  
Strategic Alliances ◽  
Research Method ◽  
Organizational Management ◽  
Quintana Roo ◽  
Nominal Level ◽  
Business Competitiveness ◽  
The Relationship ◽  
Micro Enterprises

The purpose was to analyze the relationship between organizational management and business competitiveness of microenterprises of restaurant sector in the municipality of Othón Payo Blanco, Quintana Roo. This research method relied on analysis and deduction with a non-experimental quantitative approach. The survey scope was a correlational. The instrument was a Likert-type questionnaire with 20 nominal level items that was applied in restaurants with less than 10 employees. A sample size was 17 microenterprises. Among the results, it was found that microenterprises implement organizing and controlling functions. Their business competitiveness is oriented to technology and organizational culture. The main conclusion was that the opportunity strategy to generate competitiveness is strategic alliances, furthermore, the need of implementing a strategic-focused planning and leading.

scholarly journals Sectorial adjustment costs induced by the Colombian pattern of international trade, 1991-2015

2018 ◽  
Vol 34 (60) ◽  
Author(s):  
Edwin Arbey Hernandez Garcia ◽  
Leonardo Raffo López
Keyword(s):  
International Trade ◽  
Adjustment Costs ◽  
Wood Products ◽  
Added Value ◽  
Adjustment Cost ◽  
Standard Industrial Classification ◽  
Economic Sectors ◽  
Cost Index ◽  
Industry Trade ◽  
Graphical Tool

The objective of the paper is to analyze the adjustment costs induced by Colombia’s international trade pattern for the period 1991-2015. The methodology focuses on the calculation of marginal intra-industry trade indexes, the adjustment cost index and the use of the graphical tool known as the International Adjustment Cost Space. The data come from the Sistema Armonizado (Harmonized System) by the Departamento Administrativo Nacional de Estadística (National Administrative Department of Statistics), which reports the International Standard Industrial Classification at 4 digits. The main results are: (1) Economic sectors such as Substances and chemical products, plastic and rubber products, metal products, textiles and clothing, and wood products show lower adjustment costs, which is beneficial for Colombia because these are sectors with significant participation in the generation of employment and added value. (2) Trade in these sectors occupies important positions with countries with whom Colombia shares similar relative factor endowments such as Chile, Mexico, Brazil, Peru and Ecuador. Thus, increased intra-industry trade may lead to lower adjustment pressures on domestic factors of production.

scholarly journals Spinoffs’ alliance network growth beyond parental ties: performance diminishing, then performance enhancing

2022 ◽  
Author(s):  
Forough Zarea Fazlelahi ◽  
J. Henri Burgers ◽  
Martin Obschonka ◽  
Per Davidsson
Keyword(s):  
Strategic Alliances ◽  
Mining Industry ◽  
Adjustment Costs ◽  
Theory And Practice ◽  
Time Lags ◽  
Network Growth ◽  
Performance Effect ◽  
Alliance Networks ◽  
Alliance Network ◽  
Performance Effects

Abstract Spinoff firms are a common phenomenon in entrepreneurship where employees leave incumbent parent firms to found their own. Like other types of new firms, such new spinoffs face liabilities of newness and smallness. Previous research has emphasised the role of the initial endowments from their parent firm to overcome such liabilities. In this study, we argue and are the first to show, that, in addition to such endowments, growing an alliance network with firms other than their parents’ is also critical for spinoff performance. Specifically, we investigate the performance effect of alliance network growth in newly founded spinoffs using a longitudinal sample of 248 spinoffs and 3370 strategic alliances in the mining industry. Drawing on theory based on the resource adjustment costs of forming alliances, we posit and find a U-shaped relationship between the alliance network growth and spinoff performance, above and beyond the parent firm’s influence. We further hypothesise and find that performance effects become stronger with increased time lags between alliance network growth and spinoff performance, and when spinoffs delay growing their alliance networks. Implications for theory and practice are discussed.

scholarly journals Dynamic factor demand in the Japanese manufacturing industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sangho Kim
Keyword(s):  
Manufacturing Industry ◽  
Adjustment Costs ◽  
Dynamic Structure ◽  
Adjustment Cost ◽  
Dynamic Factor ◽  
Dynamic Learning ◽  
Content Type ◽  
Long Run ◽  
Factor Demand ◽  
Dynamic Factor Demand

PurposeThis study investigates the dynamic production structure of the Japanese manufacturing industry by using the adjustment cost approach. The study is to shed some light on the unique dynamic structure of the Japanese manufacturing industry. The study attempts to help design and predict industrial policies that are implemented to enhance domestic investments by the Japanese government.Design/methodology/approachThis study obtains a system of dynamic factor demand and output supply equations by applying the dual approach to the intertemporal value function as represented by the Hamilton–Jacobi equation. By using industrial panel data for 1973–2012 of the Japanese manufacturing industry, the study estimates the system of the behavioral equations and corresponding elasticities. The study uses hypothesis tests and dynamic elasticities to investigate the dynamic structure of the Japanese manufacturing industry.FindingsEstimation results show that labor and capital are quasi-fixed variables that adjust about 0.2 percent annually to the long-run optimum levels. Estimated adjustment rates are very slow as often presumed about the Japanese manufacturing industry, which uses lifetime employment practice and slow decision-making process in investment decisions. The results also show that output supply and factor demand elasticities vary greatly depending on time horizon. Factor demand increases when its own price increases in the short run, suggesting that factor adjustment is mostly determined factor prices in the past due to sluggish factor adjustment. However, factor demand becomes a normal downward-sloping curve in the long run as factor adjustment gets completed.Originality/valueJapanese manufacturing firms hire employees through lifetime contract to exploit the benefits of dynamic learning-by-doing and execute investments carefully considering all the possible impacts. Under the strategy, adjustment costs for changing workers and capital stock are minimized. Dynamic adjustment model is expected to shed some light on the unique dynamic structure of the Japanese manufacturing industry. However, researches regarding the dynamic factor adjustment of the Japanese manufacturing industry are hard to find. This study is expected to fill the research vacuum.

A Comment on the Economics of Labor Adjustment: Mind the Gap: Evidence from a Monte Carlo Experiment

2009 ◽  
Vol 99 (5) ◽  
pp. 2258-2266 ◽  
Author(s):  
Christian Bayer
Keyword(s):  
Cost Model ◽  
Simulated Data ◽  
Adjustment Costs ◽  
Adjustment Cost ◽  
Monte Carlo Experiment ◽  
Dynamic Adjustment ◽  
Employment Decisions ◽  
Firm Level ◽  
Labor Adjustment ◽  
Productivity Process

This comment addresses a point raised in Russell Cooper and Jonathan Willis (2003, 2004), which discusses whether the “gap approach” is appropriate to describe the adjustment of production factors. They show that this approach to labor adjustment as applied in Ricardo J. Caballero, Eduardo Engel, and John C. Haltiwanger (1997) and Caballero and Engel (1993) can falsely generate evidence in favor of nonconvex adjustment costs, even if costs are quadratic. Simulating a dynamic model of firm-level employment decisions with quadratic adjustment costs and estimating a gap model from the simulated data, they identify two factors producing this spurious evidence: approximating dynamic adjustment targets by static ones, and estimating the static targets themselves. This comment reassesses whether the first factor indeed leads to spurious evidence in favor of fixed adjustment costs. We show that the numerical approximation of the productivity process is pivotal for Cooper and Willis's finding. With more precise approximations of the productivity process, it becomes rare to falsely reject the quadratic adjustment cost model due to the approximation of dynamic targets by static ones. (JEL E24, J3)

Price Rigidity and Strategic Uncertainty

2011 ◽  
Vol 3 (4) ◽  
pp. 57-69
Author(s):  
Robert Somogyi ◽  
János Vincze
Keyword(s):  
Negative Relationship ◽  
Adjustment Costs ◽  
Real Data ◽  
Decision Makers ◽  
Adjustment Cost ◽  
Price Rigidity ◽  
Pricing Strategies ◽  
Strategic Uncertainty ◽  
Agent Based ◽  
Physical Adjustment

The phenomenon of infrequent price changes has troubled economists for decades. Intuitively one feels that for most price-setters there exists a range of inaction, i.e., a substantial measure of the states of the world, within which they do not wish to modify prevailing prices. Economists wishing to maintain rationality of price-setters resorted to fixed price adjustment costs as an explanation for price rigidity. This paper proposes an alternative explanation, without recourse to any sort of physical adjustment cost, by putting strategic interaction into the center-stage of the analysis. Price-making is treated as a repeated oligopoly game. The traditional analysis of these games cannot pinpoint any equilibrium as a reasonable “solution” of the strategic situation. Thus, decision-makers have a genuine strategic uncertainty about the strategies of other decision-makers. Hesitation may lead to inaction. To model this situation, the authors follow the style of agent-based models, by modeling firms that change their pricing strategies following an evolutionary algorithm. In addition to reproducing the known negative relationship between price rigidity and the level of general inflation, the model exhibits several features observed in real data. Moreover, most prices fall into the theoretical “range” without explicitly building this property into strategies.

Price Rigidity and Strategic Uncertainty

2012 ◽  
pp. 207-219
Author(s):  
Robert Somogyi ◽  
János Vincze
Keyword(s):  
Negative Relationship ◽  
Adjustment Costs ◽  
Real Data ◽  
Decision Makers ◽  
Adjustment Cost ◽  
Price Rigidity ◽  
Strategic Uncertainty ◽  
Agent Based ◽  
The World ◽  
Physical Adjustment

The phenomenon of infrequent price changes has troubled economists for decades. Intuitively one feels that for most price-setters there exists a range of inaction, i.e., a substantial measure of the states of the world, within which they do not wish to modify prevailing prices. Economists wishing to maintain rationality of price-setters resorted to fixed price adjustment costs as an explanation for price rigidity. This paper proposes an alternative explanation, without recourse to any sort of physical adjustment cost, by putting strategic interaction into the center-stage of the analysis. Price-making is treated as a repeated oligopoly game. The traditional analysis of these games cannot pinpoint any equilibrium as a reasonable “solution” of the strategic situation. Thus, decision-makers have a genuine strategic uncertainty about the strategies of other decision-makers. Hesitation may lead to inaction. To model this situation, the authors follow the style of agent-based models, by modeling firms that change their pricing strategies following an evolutionary algorithm. In addition to reproducing the known negative relationship between price rigidity and the level of general inflation, the model exhibits several features observed in real data. Moreover, most prices fall into the theoretical “range” without explicitly building this property into strategies.

International Trade and Coordination

2017 ◽  
Vol 70 (1) ◽  
pp. 1-52 ◽  
Author(s):  
David B. Carter ◽  
H. E. Goemans
Keyword(s):  
International Trade ◽  
Institutional Design ◽  
Adjustment Costs ◽  
Institutional History ◽  
Institutional Perspective ◽  
Economic Networks ◽  
International Borders ◽  
Empirical Tests ◽  
International Boundaries

This article examines how the institutional design of borders affects international trade. The authors explore variation in the effects of borders by comparing new international borders that follow precedent and thus have a prior institutional history with new international borders that lack such an institutional history. The former minimally disrupt—or restore—previous economic networks, while the latter fundamentally disrupt existing economic networks. A variety of empirical tests show that, consistent with this institutional perspective on borders, new international boundaries that follow precedent are associated with significantly faster recovery and greater increase in subsequent trade flows. By contrast, when new international borders are truly new, they disrupt local economic networks, introduce new transaction costs, and impose higher adjustment costs on states, which the authors show to have long-term deleterious effects on trade.

scholarly journals Environmental Reporting and Speed of Adjustment to Target Leverage: Evidence from a Dynamic Regime Switching Model

Organizacija ◽  
2020 ◽  
Vol 53 (1) ◽  
pp. 21-35 ◽  
Author(s):  
Hafezali Iqbal Hussain ◽  
Sebastian Kot ◽  
Hassanudin Mohd Thas Thaker ◽  
Jason J Turner
Keyword(s):  
Regime Switching ◽  
Firm Value ◽  
Adjustment Costs ◽  
Adjustment Cost ◽  
External Financing ◽  
Environmental Reporting ◽  
Switching Model ◽  
Speed Of Adjustment ◽  
Target Leverage ◽  
The Impact

AbstractBackground and Purpose: This study investigates the impact of environmental reporting on speed of adjustment and adjustment costs which is evaluated based on the ability of firms to adjust to target leverage level for non-financial firms listed in the Malaysian Stock Exchange (Bursa Malaysia).Design/Methodology/ Approach: The study selects Malaysian firms based on the contracting and political cost of the economy which is seen as a relationship-based economy. This in turn influences a firm’s ability to obtain external financing and thus has an important impact on capital structure decisions. In addition, the method employed allows for a direct measure on adjustment cost for firms. The current study utilises a dynamic regime switching model based on the DPF estimator to estimate rate of adjustment to optimal target levels based on the distinction of environmental reporting of public listed firms. The approach allows statistical inferences to control for potential serial correlation, endogeneity and heterogeneity concerns which accounts for firm specific characteristics.Results: The empirical findings suggest voluntary disclosure on environmental reporting increases a firm’s ability to access external financing at a cheaper cost as evidenced by a more rapid rate of adjustment. The findings are consistent across differing endogenous and exogenous factors indicating that these firms tend to face lower adjustment costs.Conclusion: The current study provides a direct measure on the ability of firms to adjust to target levels via security issues and repurchases in the capital markets. This in turn is a reflection of perceived riskiness and value from the investors’ point of view in an emerging market. Prior studies have focused on environmental reporting and equity risk premiums and have not evaluated the direct impact on firm value given that the trade-off theory of capital structure predicts that firm value is maximised at target i.e. optimal levels of leverage. This study addresses the current gap in the literature by evaluating the impact on firms’ value, based on the adjustment cost.

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