The effect of power use on specific investments: the moderating role of interdependence structure

PurposePower use widely exists in buyer–supplier relationships (BSRs). Different directions of power use (i.e. buyer's power use and supplier's power use) intertwining with different types of power (i.e. coercive and noncoercive power) make it insufficient to regard power use as a single construct when examining its effect on a firm's following response. Besides, interdependence structure characterized by joint dependence and dependence asymmetry may influence the effect of a specific power use by shaping the firm's interpretation and cognition toward the relationship. Specifically, this study examines how four types of power use a buyer facing and an interdependence structure with its supplier affect its specific investments to the supplier.Design/methodology/approachThis study tests the proposed relationships using regression analysis, based on data from 240 manufacturing firms in China on their perceived relationships with their major suppliers.FindingsResults show that buyer's coercive power use (BCP) negatively affects buyer's specific investments while noncoercive power use (BNP) does not play a significant role. Both supplier's coercive power use (SCP) and noncoercive power use (SNP) are positively related to buyer's specific investments. Joint dependence positively moderates the effect of BNP and dependence asymmetry negatively moderates the effects of BCP and SNP on buyer's specific investments.Originality/valueThis study contributes to the literature on power use by identifying different types of power use and their different roles in influencing buyer's specific investments. The study also contributes to the literature on interdependence structure by demonstrating the different roles of joint dependence and dependence asymmetry.

How specific investments influence NPD performance: exploring the roles of supplier involvement and IT implementation

PurposeThe impact of specific investments to performance has mixed arguments. This paper aims to clarify how and under what conditions specific investments made by manufacturer tailored to supplier affect the new product development (NPD) performance of the manufacturer itself.Design/methodology/approachThis study develops a moderated mediation model, testing the roles of supplier involvement and information technology (IT) implementation by regression and bootstrap analyses from 378 NPD projects.FindingsThe results show both physical and human specific investments positively affect NPD performance. IT implementation strengthens the mediated role of supplier involvement, i.e. the mediator role of supplier involvement between specific investments and NPD performance link is significantly weaker while IT implementation is lower.Originality/valueThe findings contribute to identify IT implementation and supplier involvement as two important constructs, together demonstrating how and when specific investments affect NPD performance.

Support for Restricting the Possibility of African Swine Fever (ASF) Spread Under the Rural Development Programme 2014-2020

Of the many measures under Polish Rural Development Programme (RDP) 2014–2020, the aid instrument entitled “Support for investments in preventive measures aimed at reducing the effects of probable natural disasters, adverse climatic phenomena and catastrophes” is the focus of this publication. This mechanism is intended to support, inter alia, agricultural producers at risk of damage caused by natural disasters such as African swine fever (ASF). The aim of the article is to attempt to analyse whether, and to what extent, this form of support ensures the sustainability of an agricultural producer’s business by restricting the possibility of African swine fever spread. The author focuses on an analysis of normative solutions contained in the instrument to support investments aimed at preventing the destruction of agricultural productive potential, offered by RDP 2014–2020. The aid form concerned encourages agricultural producers to initiate preventive measures arising from the biosecurity programme aimed at restricting the spread of African swine fever. These are preventive in nature and enable making specific investments to prevent the destruction of agricultural productive potential due to the emergence of specific epizootic events.

Slavery versus Labor

Slavery has been a long-lasting and often endemic problem across time and space, and has commonly coexisted with a free-labor market. To understand (and possibly eradicate) slavery, one needs to unpack its relationship with free labor. Under what conditions would a principal choose to buy a slave rather than to hire a free worker? First, slaves cannot leave at will, which reduces turnover costs; second, slaves can be subjected to physical punishments, which reduces enforcement costs. In complex tasks, relation-specific investments are responsible for high turnover costs, which makes principals prefer slaves over workers. At the other end of the spectrum, in simple tasks, the threat of physical punishment is a relatively cheap way to produce incentives as compared to rewards, because effort is easy to monitor, which again makes slaves the cheaper alternative. The resulting equilibrium price in the market for slaves affects demand in the labor market and induces principals to hire workers for tasks of intermediate complexity. The available historical evidence is consistent with this pattern. Our analysis sheds light on cross-society differences in the use of slaves, on diachronic trends, and on the effects of current anti-slavery policies.

The Gig Economy and Independent Contractors

In recent years, a controversy has erupted over the distinction between employees and independent contractors. Commentators have argued that in the modern “gig economy,” many people traditionally classified as independent contractors are as vulnerable as employees and should be granted the legal protections that employees alone normally enjoy. However, the distinction between the two categories remains inescapable, and the theoretical basis for it has not been identified. A better approach derives the distinction from market structure. Employees are workers who, because they must make relationship-specific investments in a single firm, are subject to labor monopsony. Independent contractors do not make such relationship-specific investments, and hence normally operate in a competitive labor market. Employment and labor law may be explained as a method for protecting workers from labor monopsony; because independent contracts are not subject to labor monopsony, they do not require such protection.

INVESTIGATION OF QUALITATIVE INDICATORS OF FRONTALLY SUSPENDED HICK-COLLECTING MACHINE DURING OSCILLATIONS IN THE LONGITUDINAL-VERTICAL PLANE

Among the problems of mechanized harvesting of sugar beet, the most important is the cutting of the bud from the heads of root crops that are in the soil. Based on the analysis of numerous design developments and research, a two-phase method of performing this technological operation is promising at this time. Thus as a result of performance of the first phase the continuous copyless cut of all green massif of a top, its collecting and transportation is carried out and the following phase - clearing of heads of root crops of the remains of a top or additional pruning of heads. The effectiveness of this method of harvesting hyphae is obvious, because the cut green mass of sugar beet hyphae can be used as animal feed or to produce biogas. A rotary cutting device with a horizontal drive shaft can be used as a cutting device. The collection of the hitch from the entire width of the coverage of the hitch-harvesting machine can be effectively carried out by means of an auger conveyor, and the loading of the cut hitch into the vehicle - by means of a loading device of the throwing type. In the course of the research a new three-row hook-harvesting machine was developed, which implements the above principles of work. The hitch harvester is aggregated by frontal attachment to a wheeled tractor of traction class 1.4, equipped with a front PTO shaft. We conducted field experimental studies to determine the performance of this hitchhiking machine. For this purpose, a program and methodology for conducting such experimental studies were developed, the results of which were processed by statistical methods on a PC using the basic methods of regression and correlation analysis. As a result of the analysis of the obtained values it was found that the rational values of the speed of the hitch harvester are 1.5… 2.0 m ∙ s – 1 at the height of the cut of the hitch, which is equal to 0.02 m and the rotor speed of 1000 rpm-1. The operational indicators are obtained: productivity when aggregating with a wheeled tractor of class 1.4 - 2.15 ha • year – 1; specific fuel consumption - 3.02 kg • ha – 1; specific investments - UAH 291.33 • ha – 1; reduced operating costs - UAH 441.18 • ha – 1. The obtained results of researches of operational indicators of the developed three-row hook-harvesting machine turned out to be 1.5… 1.8 times better in comparison with serial hook-harvesting machines.

Wind energy in the Gulf Cooperation Council region: progress, challenges and strategies for development

PurposeUntil recently, the Gulf Cooperation Council (GCC) region, whose members consist of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain, has not significantly focused on the green transition. Specifically, wind energy development has made minimal progress relative to that of other regions.Design/methodology/approachThe abundance of cheap fossil fuels in the region has not incentivized renewable energy development, and where this has taken place solar technologies are often preferred.FindingsHowever, lower technology costs together with lost investment opportunities – also common elsewhere in the world, has increased the pressure on the GCC region from developers. This work qualitatively addresses the challenges and the strategies for the wind development in the area. It focuses on the analysis of different proposed type of investments – driven by a state-supported proposed fund – such as utility-scale investments, industry-specific investments, manufacturing investments and regional accelerators.Originality/valueThe work also suggests that Gulf sovereign wealth funds should act as the lead investors under new schemes, such as joint ventures, for wind development in the GCC, using their wealth to offering their populations with new sources of employment as well as energy that is sustainable.