The Economic Optimality of Sanction Mechanisms in Interorganizational Ego Networks – A Game Theoretical Analysis –
Muhamed Kudic, Marc Banaszak
IWH Discussion Papers,
No. 15,
2009
Abstract
Even though small- and medium-sized firms (SMEs) were believed not to proceed beyond exporting in their internationalization routes, we can observe new types of co-operation intensive entrepreneurial firms – so-called “micromultinational enterprises” (mMNEs) – entering the global landscape. These firms face the challenge to manage and control a portfolio of national and international alliances simultaneously (ego network). The aim of this paper is to provide game theoretically consolidated conditions in order to analyze the effectiveness and efficiency of interorganizational sanction mechanisms in an alliance portfolio setting. A game theoretical framework is developed over three stages with increasing complexity. Results show that two out of six analyzed sanction mechanisms do not fulfill the game theoretical condition for effectiveness. The efficiency analysis sensibilizes for discretionary elements in governance structures and demonstrates that not one single sanction mechanism but rather the right choice and combination of different types of sanction mechanisms leads to efficient results. We contribute to the international business, alliance, and network literature in several ways by focusing on alliance portfolios held by mMNEs. In doing so, we move beyond the dyadic level and analyze sanction mechanisms from an ego network perspective, a still widely under-emphasized topic in the literature.
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Barriers to Internationalization: Firm-Level Evidence from Germany
Claudia M. Buch
IAW Discussion Paper No. 52,
2009
Abstract
Exporters and multinationals are larger and more productive than their domestic
counterparts. In addition to productivity, financial constraints and labor market
constraints might constitute barriers to entry into foreign markets. We present new
empirical evidence on the extensive and intensive margin of exports and FDI based on detailed micro-level data of German firms. Our paper has three main findings. First, in line with earlier literature, we find a positive impact of firm size and productivity on firms’ international activities. Second, small firms suffer more frequently from financial constraints than bigger firms, but financial conditions have no strong effect on internationalization. Third, labor market constraints constitute a more severe barrier to foreign activities than financial constraints. Being covered by collective bargaining particularly impedes international activities.
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Die Identifikation horizontaler und vertikaler industrieller Clusterstrukturen in Deutschland – Ein neues Verfahren und erste empirische Ergebnisse
Mirko Titze, Matthias Brachert, Alexander Kubis
Raumforschung und Raumordnung,
/6
2009
Abstract
. If regional development agencies assume the cluster concept to be an adequate framework to promote regional growth and competitiveness, it is necessary to identify industrial clusters in a comprehensive manner. Previous studies used a diversity of methods starting with specific regional case studies, input-output methods and different concentration measures. This article presents a new instrument in empirical cluster research – the Qualitative Input-Output Analysis –, which offers the possibility to identify industrial cluster in conjunction with concentration measures. Especially, this method allows the combination of an identified critical mass of regional firms with the necessity of interaction of these firms within an input-output framework. Applying this method to Germany’s “Arbeitsmarktregionen” we find that 103 “Arbeitsmarkregionen“ show first signs of horizontal industrial clusters, while only 28 regions are able to attract vertical industrial clusters. 139 “Arbeitsmarktregionen” did not show signs of industrial clusters according to the research design.
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Ende der 'Gemischtwarenläden': Spezialisierung von Technologie- und Gründerzentren als Option kommunaler Wirtschaftsförderung
Michael Schwartz, Christoph Hornych
List Forum für Wirtschafts- und Finanzpolitik,
2009
Abstract
In the context of policy measures that focus on the promotion of entrepreneurship and innovative start-ups on the level of cities and municipalities, since the beginning of the 21st century, there is an explicit tendency to establish a new type of business incubators and technology centers. These support facilities focus their support infrastructure and processes on firms from one specific sector and its particular needs. In Germany, since 1999, nearly one-third of all new business incubators opened with a sector-specific focus. Despite the continuously increasing importance of such specialized business incubators in local and regional development strategies, there is no analysis of these support facilities. On the basis of the key principles of business incubation functionality, supplemented by recent findings of incubator/ incubation research, this article investigates the evolution of this incubator concept in Germany, its regional distribution and describes the benefits to firms of being part of a specialized incubator. Moreover, this article details what are the general conditions and requirements for the long-term success of specialized business incubation initiatives.
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The Formation of Photovoltaic Clusters in Eastern Germany
Matthias Brachert, Christoph Hornych
Wirtschaft im Wandel,
No. 2,
2009
Abstract
One of the weaknesses of the East German economy is the relative lack of management functions and headquarters along with the relatively low research and developing efforts of the companies. With the emergence of new industries, there is a chance to respond to these weaknesses. Against this background, the article examines the emergence and development of the photovoltaic industry in Eastern Germany. The strong production and sales growth of the industry in the recent years is a result of central government funding programs. But up to now, East German regions have profited disproportionately from the growth of the sector. In 2008, we find about 14 000 direct industry employees in this sector in Eastern Germany.
Based on the Window of Locational Opportunity concept (WLO) by Storper and Walker – a stage model of industrial development –, this article describes the reasons of the development of the industry in Eastern Germany from 1996 until 2008. In spite of persistent growth processes and the foundation of new companies within the photovoltaic industry, a concentration on some certain locations, linked with the process of the formation of industrial clusters, becomes apparent. In a first result of the emergence of clusters, the regions of Bitterfeld-Wolfen, Dresden/Freiberg, Erfurt/Arnstadt, Frankfurt (Oder) and Berlin build leading sites in Eastern Germany.
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In which Ways do Universities React to New Technologies? The Case of Photovoltaics
Peter Franz
Wirtschaft im Wandel,
No. 12,
2008
Abstract
Universities can be conceived as actors in regional innovative systems with the functions to make available new knowledge for a region, to contribute to the human capital formation by teaching, and to the extension of the knowledge by research. These functions are in particular important concerning the adaptation of new technologies, e.g. photovoltaics. 89 German universities – amongst them 65 universities of applied sciences – meanwhile offer 171 full-time study courses with a degree oriented to photovoltaics. Each federal state has at least one university location offering such degrees. A certain spatial concentration of courses can be shown for Saxony, for the Ruhr Area and for the Rhine Main Region. Almost 90% of the degrees are offered by faculties of engineering. 43% of the universities with degrees in photovoltaics have successfully applied for research grants from the photovoltaics research programs of the federal government. These numbers show a spatial concentration of research in the South whereas the photovoltaics industry is concentrated in the East of Germany. This distribution indicates that the research opportunities tied to the photovoltaics industry are not in the Eastern part of Germany. Further research will have to pay more attention to the role of research institutes.
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Firm Density in East Germany: Findings from the Business Register
Gerhard Heimpold
Wirtschaft im Wandel,
No. 10,
2008
Abstract
The contribution focuses on the business density in East Germany in comparison with West Germany. For the purpose of the investigation, a new information source was used – the so-called Business Register. Business density in East Germany is of relevance for two reasons: First, when the wall came down in 1989, the East German economy suffered from the lack of private firms. Second, after 2000, a gap in terms of work places is still existent. The empirical data on business density in East Germany do not reveal an unequivocal picture. Measuring business density by comparing the number of firms with the respective number of population reveals a gap in terms of the number of businesses per 10 000 inhabitants in East Germany. The gap is above average with respect to firms in the manufacturing sector, and it is particularly high regarding larger manufacturing firms. Measuring the business density as a quota of the number of firms and the volume of Gross Domestic Product (GDP) reveals a reverse picture: The business density in relation to GDP is on average higher in comparison with the respective value in West Germany. Maybe, the size of the East German market sets limits regarding the number of firms which may act there. However, the size of the domestic market is not so relevant for the firms belonging to the manufacturing sector and to the business-related services since they are expanding to a large extent due to their export activities. Though from the manufacturing sector, relativly positive development perspectives can be expected, the number of large firms per 10 000 inhabitants is relatively low in comparison with West Germany. Public support for strengthening the business landscape in the East German manufacturing sector remains on the agenda of economic policy in Germany.
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Specialization as Strategy for Business Incubators: An Assessment of the Central German Multimedia Center
Michael Schwartz, Christoph Hornych
Technovation,
No. 7,
2008
Abstract
The literature on business incubators (BIs) mainly discusses findings of incubators that do not restrict themselves to specific sectors (diversified incubators). There is a strong disregard of the possible benefits arising from the concept of a sector-specialized business incubator (SBI), although this concept has become more important in recent years. In Germany, about 19% of the incubators can be characterized as being specialized. Since 1999, nearly one-third of all new BIs in Germany opened with a sector-specific focus. This study attempts to approach this research question by examining the advantages and deficiencies of this concept and to address them with empirical observations from an SBI in the city of Halle (Germany), which has an explicit sector-focus on the media industry (MI). We identify key benefits arising from such an incubator concept: (1) high quality premises and equipment, (2) improvement of service and consultancy offerings and (3) image effects for the location. We also find deficiencies of an SBI especially regarding internal networking activities and promotion of linkages to universities. Furthermore a negative working climate impedes interaction. This study offers implications for firms, incubator managers and local policy-makers who are concerned with the instrument of an SBI.
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Eastern German Economy: No Catching-up in 2008 and 2009
Wirtschaft im Wandel,
No. 6,
2008
Abstract
In the New Lander, growth of production is characterized by two diverging developments. On the one hand, the manufacturing sector has expanded strongly while the public service sector as well as the retail sectors has considerably damped economic activity. On the other hand, those firms primarily bound to local markets have gained hardly any momentum, whereas others have been stimulated by external markets in Western Germany and abroad. These differences are mainly due to weak local demand in the wake of a low purchasing power and an ongoing reduction in the population. At the same time, export-oriented firms in the manufacturing sector have benefited from strong external demand, and they will further benefit from it, although somewhat less owing to the slowing world economy. However, as East German exporting firms are less exposed to those countries where the ongoing crisis in the real estate and the financial sector has unfolded its dampening effects the most, they are also less prone to it. Accordingly, gross domestic product will increase by 1,7% this year and 0,8% in 2009. This translates into further improvements on labor markets. Registered unemployment will fall below one million. In particular, manufacturing firms and the private business service sector will increase their demand for labor.
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Preventing Innovative Cooperations: The Legal Exemptions Unintended Side Effect
Christian Growitsch, Nicole Nulsch, Margarethe Rammerstorfer
IWH Discussion Papers,
No. 6,
2008
Abstract
In 2004, European competition law had been faced with considerable changes due to the introduction of the new Council Regulation No. 1/2003. One of the major renewals was the replacement of the centralized notification system for inter-company cooperations in favor of a so-called legal exemption system. We analyze the implications of this reform on the agreements firms implement. In contrast to previous research we focus on the reform’s impact on especially welfare enhancing, namely innovative agreements. We show that the law’s intention to reduce the incentive to establish illegal cartels will be reached. However, by the same mechanism, also highly innovative cooperations might be prevented. To avoid this unintended effect, we conclude that only fines but not the monitoring activities should be increased in order to deter illegal but not innovative agreements.
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