The role of relationship scope in sustaining relational contracts in interfirm networks

2019 ◽  
Vol 41 (2) ◽  
pp. 222-245 ◽  
Author(s):  
Nicholas Argyres ◽  
Janet Bercovitz ◽  
Giorgio Zanarone
Keyword(s):  
Relational Contracts ◽  
Interfirm Networks

Learning and Learning Capability in the Fordist and Post-Fordist Age: An Integrative Framework

1998 ◽  
Vol 30 (7) ◽  
pp. 1255-1278 ◽  
Author(s):  
D J Jin ◽  
R R Stough
Keyword(s):  
International Competition ◽  
Learning Capability ◽  
Learning Agents ◽  
Interfirm Networks ◽  
Integrative Framework ◽  
The Social ◽  
Diamond Model ◽  
Trust And Reciprocity ◽  
Transactional Learning

In this paper we use the concept of ‘learning capability’ to integrate several frameworks regarding the changing nature of industrial organization and international competition. In doing so, we emphasize the primacy of learning and learning capability in the post-Fordist world of international competition, with a focus on analyzing Fordist and post-Fordist forms of learning at various levels and their differing impact on the learning capability of firms in a regional context. First, we examine the organizational arrangements that promote individual and organizational learning within the firm, with special reference to the Japanese practices of lean and flexible production. Second, we introduce the concept of transactional learning to delineate various forms of Fordist and post-Fordist learning that occur in the marketplace. After reinterpreting Porter's (1990) diamond model as a market structure for transactional learning, we extend his work by emphasizing the role of interfirm networks in facilitating learning and learning capability. The focus of this analysis is on the importance of trust and reciprocity in maintaining effective information flow and cooperation within these networks. In doing so, we discuss differences in the social construction of trust and networks and their corresponding impact on dominant forms of learning and learning capability. We further introduce the concept of spatial learning for analyzing the role of industrial districts as learning agents. We conclude the paper with an examination of the concept of learning infrastructure as a general construct for policymaking regarding regional development and international competition in the post-Fordist age.

Interfirm networks and search-transfer problem: the role of geographic proximity

2020 ◽  
Vol 120 (5) ◽  
pp. 923-940
Author(s):  
Dong Wu ◽  
Xiaobo Wu ◽  
Haojun Zhou ◽  
Mingu Kang
Keyword(s):  
Knowledge Transfer ◽  
Design Methodology ◽  
Transfer Problem ◽  
Manufacturing Firms ◽  
Geographic Proximity ◽  
Content Type ◽  
Interfirm Networks ◽  
Interfirm Network ◽  
Practical Implications

PurposeThis paper represents an empirical study of how geographic proximity influences the search advantage and the transfer problem of interfirm networks.Design/methodology/approachBy using the data collected from 226 Chinese manufacturing firms, this study examines the proposed hypotheses.FindingsThe authors’ findings suggest that (1) geographic proximity is an important antecedent for promoting knowledge transfer, whereas it lowers the degree of knowledge novelty; and (2) geographic proximity also moderates the effects of interfirm networks on knowledge novelty and knowledge transfer.Originality/valueThis study contributes the literature of interfirm network and provides practical implications by addressing the ways in which manufacturing firms can promote knowledge transfer and acquire novel knowledge.

Investment Management Contracts

2017 ◽  
Author(s):  
Gordon L. Clark ◽  
Ashby H. B. Monk
Keyword(s):  
Financial Management ◽  
Service Providers ◽  
Research Programme ◽  
Relational Contracts ◽  
Contractual Relationships ◽  
The Standard Model ◽  
And Performance ◽  
Geographical Scope ◽  
Management Contracts

Chapter 6 explores contractual relationships between financial institutions and their service providers. An explanation is given as to how and why these contracts are quite different from those that bind together firms and suppliers in commodity producing industries. Areas of financial management, how their geographical scope is sustained, and how they are governed in relation to the network of service providers within and across markets as vital topics in our research programme are discussed. The chapter provides further information about the standard model of contract, noting its underlying principles and the differences between discrete and relational contracts. In doing so, consideration is given to forms, functions, and performance and the role of jurisdiction in governing contractual relationships.

Involuntary delisting in the Japanese stock market

2018 ◽  
Vol 44 (9) ◽  
pp. 1155-1171 ◽  
Author(s):  
Jinwoo Park ◽  
Kengo Shiroshita ◽  
Naili Sun ◽  
Yun W. Park
Keyword(s):  
Stock Market ◽  
Regression Models ◽  
Institutional Environment ◽  
Wealth Effect ◽  
Share Price ◽  
Relational Contracts ◽  
Legal Environment ◽  
Content Type ◽  
Japanese Firms

Purpose The purpose of this paper is to analyze the wealth effect of involuntary delisting and investigate insider opportunism and the role of corporate governance, liquidity and legal environment in involuntary delisting in Japan’s stock market. Design/methodology/approach The authors use a sample of 136 involuntarily delisted firms in Japan’s stock markets between 2002 and 2012. The authors examine ownership changes of inside shareholders prior to delisting and estimate regression models for the wealth effect of involuntary delisting. Findings Involuntary delisting is highly disruptive in Japan, and limited liquidity of delisted stocks appears to be an important cause. However, the ownership reduction of inside shareholders before delisting is limited, totaling 2–3 percent. For delisted firms with an insider bank, the decrease in share price leading up to a delisting announcement is much less, while the decrease in share price upon a delisting announcement is far greater. Originality/value The study investigates involuntary delisting in regard to the opportunistic behavior of inside shareholders and the role of institutional environment in Japan’s stock market. Insiders, especially insider banks, maintain ownership in a distressful context leading to the forcible delisting of a distressed firm. The authors find some evidence that suggests that the market believes the insider bank will try to prevent the ailing firm’s insolvency. The findings are consistent with the implicit relational contracts that characterize Japanese firms.

From Quiet to Noisy Politics: Transformations of Swiss Business Elites’ Power

2021 ◽  
Vol 49 (1) ◽  
pp. 17-41
Author(s):  
André Mach ◽  
Thomas David ◽  
Stéphanie Ginalski ◽  
Felix Bühlmann
Keyword(s):  
Twentieth Century ◽  
Market Economy ◽  
Informal Institutions ◽  
Direct Influence ◽  
Business Associations ◽  
Business Elites ◽  
Interfirm Networks ◽  
Socioeconomic Issues ◽  
Financial Capitalism

During most of the twentieth century, it was possible to consider Switzerland a coordinated market economy, characterized by dense interfirm networks and the strong role of business associations. Thanks to their cohesion and collective organization, in a context of quiet politics and informal institutions, business elites could largely self-regulate major socioeconomic issues in the shadow of politics. However, since the end of the twentieth century, Swiss business elites have undergone profound changes not only in their composition, but also in their coordinating capacity, their growing political divisions, and their connections to politics. This growing sociological and political fragmentation, combined with changes in the way of doing politics, through noisier and more formal politics, has weakened the instrumental power of Swiss business elites. To compensate for this loss of direct influence, business elites of the largest Swiss companies have developed new political strategies, relying on their growing structural power in a context of global and financial capitalism.

Firms as social actors

2010 ◽  
Vol 6 (3) ◽  
pp. 329-349 ◽  
Author(s):  
RICHARD ADELSTEIN
Keyword(s):  
Human Performance ◽  
Social Outcomes ◽  
Organizational Capabilities ◽  
Relational Contracts ◽  
Social Actors ◽  
Institutional Facts ◽  
The Creation ◽  
Future Work ◽  
Over Time

Abstract:This essay asks what firms are, whether they are ‘real’ social actors, and whether their actions can be traced without remainder to the actions of living people or whether there is some irreducible aspect of their existence or operation that must be attributed to the organization itself. It describes firms as ongoing, multilateral relational contracts from whose operation – that is, from performance over time by specific individuals in the roles and relationships defined by the contract – emerge the firm's idiosyncratic routines and capabilities. It emphasizes the role of entrepreneurs in the creation of firms and the close dependence of organizational capabilities on human performance, and argues that this account is consistent with a reasonable individualism that allows for social outcomes to be determined by the actions and interaction of individuals. It then proposes that firms are nonetheless institutional facts and thus ontologically subjective but epistemically objective components of reality, and concludes with directions for future work.

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