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This paper analyzes the measurement of effective protective rates when there is joint production. It shows that special attention is required when tradables are jointly produced with non‐tradables, and especially when there are significant changes in the prices of non‐tradables. Input‐output formulas for the Balassa and Corden methods are provided.

Focusing on the telecom manufacturing industry in China as a case, this paper contends that the existing literature needs to be expanded. Product cycle theory could be applied to explain multinational corporations’ strategies of importing and localizing their products in developing countries in order to take advantage of lower labor costs and to break barriers to the local markets. However, rapid technology changes have limited the power of traditional product cycle theory while favoring the “dynamic adding‐and‐dropping” product cycle. Meanwhile, the success of “Wintelism” and the maturity of cross‐national production networks in the global market have significant impacts on developing countries’ indigenous industries. Indigenous manufacturers start to take advantage of their strength in the distribution and production value‐chain and to outsource their weaknesses to Western corporations. This model of “reversed cross‐national production networks” represents a feasible industrialization path with great potential to enable indigenous manufacturers to emerge as competitors in advanced Western markets as well as less developed markets.

The evolution of interorganizational networks is shaped by micro and macro processes. At the micro level organizational dyads negotiate relationships in light of their own cost—benefit analysis. At the macro level resources flow through networks and are mobilized by coalitions. Current research is beginning to examine integrating mechanisms which link network dynamics to dyadic relationship formation. In this paper we examine interorganizational brokerage as an integrating mechanism linking micro and macro network processes. We focus on the formation of networks in the global television industry. The Children's Television Network (CTW) has licensed and co‐produced its flagship program “Sesame Street” in many countries around the globe. Recently, it has expanded beyond a strategy based on direct first‐order linkages to one of brokerage and interorganizational entrepreneurship, entailing the formation of second‐order linkages—linkages between organizations with which CTW has direct first‐order relationships. In the aftermath of the Oslo Peace Agreement, CTW acted as a broker and sponsor of a joint venture between Israeli and Palestinian broadcasters. The main challenge facing CTW was a high degree of distrust between the parties motivated by fears of opportunistic exploitation. Such fears typically result in high transaction costs, making joint venture formation difficult, if not impossible. In its capacity as broker, CTW worked to reduce transaction costs. This was done by providing resources where needed, and by facilitating interaction and trust building between the parties. We describe CTW's tactics during the formation of this joint venture, and we analyze the outcome of the joint venture from the point of view of CTW's overall strategy. We conclude by discussing CTW's network and brokerage strategy in the aftermath of the joint venture.

The purposes of this paper are to provide first a detailed description of the use of interfirm cooperation by a large sample of Dutch firms of different sizes and from different industries, and second, to examine the governance role of financial managers in the management of cooperative arrangements.

Research questions are developed based on a review of previous literature and data were collected using a questionnaire administered to a large sample of Dutch firms.

The paper finds that the sample firms are generally well engaged in various types of interfirm cooperation, in particular in outsourcing arrangements and joint ventures. In addition, larger firms are on average involved in more types of cooperation than smaller firms are, and different cooperative activities and forms are frequently used in combination. On average, financial managers report to be actively involved in the management of interfirm cooperation, which ranges from monitoring yearly results, providing advice, supervising performance, to managing daily operations of the cooperation. In this management role, they mostly use frequent detailed financial and non‐financial performance information, which often not only relates to their own firm, but also to the partner firm.

This research provides evidence of the extensive use of interfirm cooperation in practice and identifies an important governance role of financial managers in the management of interfirm cooperation. An analysis of differences in this role across different types of cooperation and functional levels of financial managers is provided.

The findings provide new insights into firms' use of a broad range of interfirm cooperative activities and into the governance role financial managers in these activities. Consistent with prior studies that document an increasing propensity of firms to engage in cooperative arrangements, the results support that interfirm cooperation constitutes an important area for research in accounting. This paper provides several suggestions for future research aimed at improving researchers' and practitioners' understanding of the management of interfirm cooperation.

A common argument is that organizations should adopt new organizational practices, in order to respond to the hyper‐competitive business environment. The assumption underlying this argument is that such adoption generally entails the replacement of traditional practices. We suggest, instead, that managers are more likely to be managing simultaneously both new and old organizational practices. We explore our position through an investigation of the use of remote collaboration technologies in film production. In our study of US, UK and Australian film production houses we identify seven organizational dualities which characterize remote collaborations: creative work/routines, freedom/constraint, trust/control, artistic excellence/cost effectiveness, collaboration/competition, emotional/rational and closeness/remoteness. One side of each relationship represents organizational practices commonly associated with traditional forms of organizing, while the other represents those practices commonly associated with new forms of organizing. The coexistence of these dualities suggests that new organizational forms are not replacing traditional forms but rather co‐exist with, and become incorporated into, remolded traditional forms.

Introduction One of the fresher breezes to rustle the leaves in the Black Forest of microeconomic theory has been fueled by the “new” consumer behavior theory, based on the household production function. The theory was developed in the early 1960s by Gary Becker, his colleagues and graduate students in the Labor Workshop at Columbia University. Becker's 1965 Economic Journal article, “A Theory of the Allocation of Time,” (1) is regarded as the seminal elucidation. But concurrently, other Workshop participants, such as Owen, Dean, Mincer, et al(2), did research on time allocation theoretics and applications, and credit for primal development of the new theory is also given to Lancaster for his 1966 paper, “A New Approach to Consumer Theory,” (3). However, one must go back to 1947 and Wassily Leontief's Econometrica article on the separability of functions (4) to find the clear Schumpeterian Vision necessary to evolution of the theory. Michael and Becker (5) have even claimed to find antecedents ranging back to 1789 and Jeremy Bentham's Principles of Legislation (6).

Strategic alliances have a variety of governance structures that can be broadly classified as joint ventures, minority equity alliances, and contractual alliances. This paper seeks to empirically examine the roles of four key determinants of governance structure choice, namely, joint R&D and joint marketing objectives, alliance management experience, and international partners.

Several hypotheses are developed regarding governance structure choice and are tested with data from 765 alliances. A multinomial logistic regression (logit) model is used for statistical analysis, with five control variables.

All hypotheses are supported, so that the roles of alliance objectives, alliance management experience, and international partners are demonstrated as being significant as determinants of governance structure choice in alliances.

Limitations stem from the data being from a single source, one that also relies on press announcements that may be biased toward larger alliances.

Briefly, alliance managers should find it useful to assess the relative presence of the four determinants of structural choice studied in this investigation in order to make an informed selection of the appropriate governance structure.

The study contributes to the knowledge of the key determinants of governance structure choice in strategic alliances by examining empirically, with a large sample of alliances from various industries, the significant roles of four factors, namely, joint R&D and joint marketing objectives, alliance management experience, and international partners.

The past decade has witnessed a trend toward unbundling of enterprises that were once highly integrated in vertical forms or horizontally as conglomerates. The economic forces behind these changes simultaneously enabled collaborative relationships that replaced command‐control coordination. While such change has been widespread, the food industry serves as an example of an industry where such strategies have been incompletely pursued. This paper aims to provide a microeconomic explanation of three bases for the emergence of collaboration and network formation: transaction costs, interdependence in value creation processes, and shared resources.

Within a setting of the food industry, a microeconomic theory of firm level choice of transactions is presented and extended to consider market level equilibrium in where persistent relationships are defined to compose an integrated economic network.

The paper presents a framework for identification of the optimal pattern of relationships across firms to compose networks that could enhance the competitive advantage and the economic performance of the food sector.

While performance of the food system has been the target of extensive public policy, that policy has typically viewed food enterprises as autonomous units operating through competitive markets. This paper provides a framework that highlights an economic rationale for collaboration across food enterprises that offers enhanced performance while maintaining essential aspects of competition.

The production and sale of counterfeit products is big business in the international economy. Nowhere is this more evident than in China. This paper aims to review the anti-counterfeiting strategies that have been identified in the literature on counterfeiting.

The paper takes the form of a literature review.

This paper reviews 11 anti-counterfeiting strategies that have been suggested by relevant literature and has identified some of the success conditions. It also finds that firms should seek to take a longer-term view and to protect their technology-based competitive advantage. This is already happening: Japanese blue chip companies have begun to relocate sensitive R&D and high-tech manufacturing away from risky locations and back to Japan.

The paper shows that the dominant legal enforcement (perspective) approach has been of limited success and explains the reasons for its failure.

The paper concludes that anti-counterfeiting strategies should be seen as complementary rather than as mutually exclusive and that in the long run, as countries get more technologically advanced, governments will develop a strong self-interest in tackling the counterfeit problem themselves.

The paper provides a systematic discussion of alternative anti-counterfeiting strategies that have been suggested by the literature and explores their success conditions in some detail.

Examines critically traditional economic paradigms as well as those given by Hayek and Buchanan on markets with constitutional contracts in order to contrast them with yet another view of market ‐ that endogeneity of various political and economic processes creates a global system of interlinkages among and between policy variables and socio‐economic variables. By invoking the methodology and epistemology of such a system develops a theory of globally interactive market processes. In such a globally interactive system, markets are seen to be induced by and to regenerate circularly endogenous preferences. Knowledge induction becomes epistemologically critical in such an evolutionary and interactive order. Hence, these globally knowledge‐induced interlinkages generated by policy‐market interactions are made to establish and explain what is termed here as a system of social contracts.