The Essence of Dynamic Capabilities and their Measurement

The growing popularity of explaining firm performance through dynamic capabilities has motivated plenty of conceptual development in the field. However, empirical approaches to measuring dynamic capabilities have so far not been under comprehensive scrutiny. The authors; purpose is to assess the extent to which different ways of measuring dynamic capabilities in quantitative studies correspond to the theoretical essence of the concept, and develop recommendations for future research. They find that four types of operationalizations have been used: (1) managers’ evaluations; (2) financial data; (3) company's experience, actions and performance; and (4) managers’ or employees’ experience, actions and performance. Based on their analysis, the authors provide eight recommendations for future research that relate to identifying ordinary and dynamic capabilities, avoiding common method bias, taking into account the quality and fitness rather than the quantity of dynamic capabilities, and acknowledging the cumulativeness of dynamic capabilities through the use of longitudinal data. They conclude that refining the dynamic capability operationalizations would help to formulate competing hypotheses and to increase the theoretical precision of the field.     

A pixel level evaluation of five multitemporal global gridded population datasets: a case study in Sweden, 1990–2015

Population and Environment - Human activity is a major driver of change and has contributed to many of the challenges we face today. Detailed information about human population distribution is...     

Decision-Making, Time Horizons, and Risk in the Very Long-Term Perspective

Some decisions made today have far-reaching consequences as exemplified by those concerning nuclear power and spent nuclear fuel. The investigation presented here uses a decision theoretic framework in which time horizons and the discounting of negative consequences play significant roles. The results indicated wide variations in the lengths of the planning horizons judged to be adequate not only across a number of activities, including nuclear waste management, but also across groups of subjects (e.g., engineering students, retired people, and nuclear fuel experts). The paper reports typical judgments and correlations between different variables for different groups of subjects. The differences across groups reflect potential sources of conflict, depending in part on different values and different perceptions of more or less uncertain facts. Discounting functions for negative consequences in the future were also established. A range in differences in the speed of discounting were found and illustrated. Furthermore, it was found that substantial proportions in all groups regarded negative consequences related to nuclear waste as nondiscountable. When asked about the effect of time until outcome on acceptable probability of a negative outcome, many subjects used the probability concept in an incoherent way, illustrating the great difficulty in communicating small probabilities in a long-term risk context.     

Efficient ascertainment schemes for maximum likelihood estimation

While well chosen sampling schemes may substantially increase efficiency of observational studies, some sampling schemes may instead decrease efficiency. Rules of thumb how to choose sampling schemes are only available for some special cases. In this paper we provide tools to compare efficiencies, and cost adjusted efficiencies, of different sampling schemes, in order to facilitate this choice. The method can be used for both categorical and continuous outcome variables. Some examples are presented, focusing on data from ascertainment sampling schemes. A Monte Carlo method is used to overcome computational issues wherever needed. The results are illustrated in graphs.     

The Social Policy Indicators (SPIN) database

The Social Policy Indicators (SPIN) database provides the foundations for new comparative and longitudinal research on the causes behind, and the consequences of, welfare states and social citizenship rights. The SPIN database is oriented towards analyses of institutions as manifested in social policy legislation. To date, SPIN covers 40 countries, of which several have data on core social policy programmes from 1930. There are currently six data modules in SPIN, covering different social policy areas. The following research note describes the theoretical and conceptual basis of the SPIN project, as well as the data it contains.     

RISK AVERSION RELATES TO COGNITIVE ABILITY: PREFERENCES OR NOISE?

Recent experimental studies suggest that risk aversion is negatively related to cognitive ability. In this paper we report evidence that this relation may be spurious. We recruit a large subject pool drawn from the general Danish population for our experiment. By presenting subjects with choice tasks that vary the bias induced by random choices, we are able to generate both negative and positive correlations between risk aversion and cognitive ability. Our results suggest that cognitive ability is related to random decision making rather than to risk preferences. (JEL: C81, C91, D12, D81)     

GRIND OR GAMBLE? AN EXPERIMENT ON EFFORT AND SPREAD SEEKING IN CONTESTS

We conduct a contest experiment to study if spread seeking and effort can be managed when participants can invest in increasing both the mean and the spread of an uncertain performance variable. Subjects are treated with different prize schemes and in accordance with theory, we observe higher investments in spread for the winner-take-all scheme. Both types of investments can be controlled with a three-level prize scheme. However, the control management is imperfect and behavior is characterized by inertia. We also explore the correlation between effort and spread across subjects and find that is robustly positive.     

Do norms matter for firm boundaries?

Even though norms have been integrated in the formal theory of the firm, we have not seen a clear-cut relationship between norms and firm boundaries. In a simple game of relationship specific investments, I show that the parties’ reputation for being trustworthy may be decisive for optimal asset ownership.     

The Accident Evolution and Barrier Function (AEB) Model Applied to Incident Analysis in the Processing Industries

This study develops a theoretical model for accident evolutions and how they can be arrested. The model describes the interaction between technical and human-organizational systems which may lead to an accident. The analytic tool provided by the model gives equal weight to both these types of systems and necessitates simultaneous and interactive accident analysis by engineers and human factors specialists. It can be used in predictive safety analyses as well as in post hoc incident analyses. To illustrate this, the AEB model is applied to an incident reported by the nuclear industry in Sweden. In general, application of the model will indicate where and how safety can be improved, and it also raises questions about issues such as the cost, feasibility, and effectiveness of different ways of increasing safety.