Foreign direct investments in manufacturing by district firms: evidence from the Italian chair district

Manufacturing internationalisation is a phenomenon that currently involves several industrial districts. While the literature on industrial districts is wide, few works analyse the (manufacturing) internationalisation dynamics. This study tries to fill this lack by analysing forms, motivation, obstacles and results of the foreign direct investments carried out in one of the most important Italian districts. The research shows how some of the district leading firms have recently combined local presence with a strategy of internationalisation that also involves manufacturing activities through foreign direct investments. The readers can comprehend the main features of the international manufacturing path that is involving one of the most important Italian industrial districts, i.e. the chair district. The research offers a contribution to an area rather neglected in literature – the district (manufacturing) internationalisation dynamics.     

Genesis of a research field: district,network, strategic network

This article summarizes the changes since the beginning of the 1980s in the scholarly approach to organizational and economic research on Italian firms. Beginning with the study of industrial districts, which sparked a major reconsideration of the conventional wisdom, most scholars focused primarily on the significance of firm geographical proximity while marginalizing issues related to firm structure and strategy. Nevertheless, industrial district research eventually led to the question of firm networks, in particular how to manage relational capabilities and cooperation, both of which affect a firm’s competitive position. This new analytical framework no longer dependent on either the single firm or an industrial sector has opened up new research perspectives that promise rich insights into socio-economic studies.     

On How Firms Located in an Industrial District Profit from Knowledge Spillovers: Adoption of an Organic Structure and Innovation Capabilities

The canonical approach argues that firms located in industrial districts enjoy advantages for both innovation and performance as a consequence of the exceptionally strong knowledge spillovers that flow freely and spontaneously within them. However, diffusion of shared competences is not as easy and free as postulated in the literature. Using the resource‐based view, we study whether clustered firms perform better than non‐clustered firms, by providing empirical evidence that location of firms in an industrial district does not directly create innovation capabilities or economic rents. This research question is important because it enables us to better understand how firms benefit from this external knowledge flow, both to create advantages in technological innovation and to obtain superior organizational performance. To stand out in capabilities that are often localized at the centre of the same industrial district, a firm needs to develop a learning internal micro‐environment capable of better absorbing localized knowledge spillovers. In particular, the organic form is revealed as a configuration well suited to combining structural flexibility with the productive flexibility offered by the district and to strengthening technological innovation capabilities, thus improving organizational performance.     

Knowledge Creation within Industrial Systems

Intangible resources are the source of competitive advantage in theknowledge economy. Knowledge and intellectual capital within firms havegathered worldwide attention; theories and methods for knowledgecreation management have been developed for organizations and alliances.Economic reality shows the importance of industrial districts becausesocial systems in districts provide dynamic contexts of multifacetedrelationships. These dynamic contexts or district ba (Japanesefor place) enable firms to create and harness knowledge that resides innetwork relationships.The paper develops a theoretical frame of four kinds of district ba thatsupport four knowledge processes. Organizational networks within andbetween different district ba are conceptualized. The creationof knowledge within district ba is used to analyze differentlevels of interaction between firms in the same or different districtsand in the same or different industries. The case study of the JETROlocal-to-local program between Ishikawa prefecture in Japan and Como andVarese in Italy is used to illustrate the theoretical concepts. Districtba are used to analyze the knowledge creation dynamics withinand between districts and to identify possible strategies for districtgovernance.     

Modeling corporate citizenship and turnover intention: social identity and expectancy theories

Drawing upon the expectancy theory and social identity theory, this study proposes a model that explains how perceived corporate citizenship influences turnover intention. In the proposed model, perceived economic and legal citizenships affect turnover intention indirectly via the full mediation of career development expectation, while perceived economic, legal, ethical, and philanthropic citizenships impact turnover intention indirectly via the full mediation of organizational identification. The hypotheses of this study were empirically tested by conducting a survey on employees in the tourism industry. The empirical findings show that a firm’s corporate citizenship can provide a competitive advantage in retaining its employees by simultaneously boosting their career development expectation and organizational identification. Lastly, managerial implications and limitations of this study based on empirical results are presented for in-depth discussion.

     

The Consequences of Conflict: An Evaluation of Racial Disparity and Organizational Performance

The study of public administration is based primarily on two schools of thought; some theorists espousing political control with others supporting the inner check. Heretofore, studies have failed to examine the effects of goal conflict on relationships between political principals and bureaucratic agents. Using Texas school districts, this analysis demonstrates that goal conflict has significant effects on student performance. Goal conflict also influences relationships among school boards, teachers, and school district populations. Overall, this study advances the discipline in that it determines the ramifications of goal conflict for political principals, bureaucracies, and the public being served utilizing the most common form of bureaucracy, school districts. The arguments and implications embedded in this analysis speak to the age-old public administration question of how to reconcile bureaucracy with democracy.     

Using the CAUSE Model to Understand Public Communication about Water Risks: Perspectives from Texas Groundwater District Officials on Drought and Availability

Public communication about drought and water availability risks poses challenges to a potentially disinterested public. Water management professionals, though, have a responsibility to work with the public to engage in communication about water and environmental risks. Because limited research in water management examines organizational communication practices and perceptions, insights into research and practice can be gained through investigation of current applications of these risk communication efforts. Guided by the CAUSE model, which explains common goals in communicating risk information to the public (e.g., creating Confidence, generating Awareness, enhancing Understanding, gaining Satisfaction, and motivating Enactment), semistructured interviews of professionals (N = 25) employed by Texas groundwater conservation districts were conducted. The interviews examined how CAUSE model considerations factor in to communication about drought and water availability risks. These data suggest that many work to build constituents’ confidence in their districts. Although audiences and constituents living in drought‐prone areas were reported as being engaged with water availability risks and solutions, many district officials noted constituents’ lack of perceived risk and engagement. Some managers also indicated that public understanding was a secondary concern of their primary responsibilities and that the public often seemed apathetic about technical details related to water conservation risks. Overall, results suggest complicated dynamics between officials and the public regarding information access and motivation. The article also outlines extensions of the CAUSE model and implications for improving public communication about drought and water availability risks.     

中国股票市场行业与地区效应分析

根据国家行业分类,参照地区的远近和经济发达程度,把中国股票市场的股票划分为21个行业、12个地区。依据中国股票市场从1995年7月到2001年6月的股票回报率月数据,利用约束回归分析法对回报率的行业和地区效应进行了横截面和时间序列分析,表明中国股票市场具有明显的行业和地区效应,并且行业效应大于地区效应。     

The economic effects of large industrial undertakings on rual economies

This paper uses an adaptation of the input-output method to test the impact of large-scale industrial undertakings on comparatively small and sparsely-populated areas. It explains how, firstly, a model was built based upon a specimen rural area and including a series of vectors which allow local demand to change as incomes change. The model was then generalized so that data could be inserted to simulate any similar area. The paper then explains the results obtained from inserting a large-scale industrial activity into the model.     

Ownership Identity and Concentration: A Study of their Joint Impact on Corporate Diversification

This paper examines the impact of ownership on product and international diversification. While ownership concentration has received considerable attention from agency theorists we argue that a more nuanced analysis is necessary. We consider how the identity of owners moderates the impact of ownership concentration on diversification strategies. We develop a framework that explains how the combination of different motivations, resources and capabilities associated with different types of owners results in significantly variable relationships between ownership concentration and both product and international diversification. From a theoretical perspective this suggests a social contextualization and extension of the agency theoretic approach that characterizes the field. Based on a study of 222 European firms between 1994 and 2007 we show that family ownership concentration has a positive impact on product and a negative impact on international diversification while the impact of institutional and state ownership concentration is negative on product diversification and positive on international diversification compared with family ownership. This is the first study to provide a comprehensive framework explaining how ownership concentration and identity interact and affect both international and product diversification.     

Resisting Organizational Inertia: The Evolution of Industrial Districts

Industrial district success in Italy is often explained as a function oftraditional, homogenous communities, where close social ties and communityinstitutions supposedly create the trust necessary for collaborativeinter-firm relationships among small firms. However, such a functionalistapproach fails to explain why some districts prosper over time bydeveloping new process and product innovations, while others stagnatebecause they fail to respond to rapidly changing markets. We argue thatgreater attention to firm networks – both those internal and external to the district – and the role of key firms represents a more usefulanalytical method for understanding the evolution and formation ofindustrial districts.     

A Little Representation Goes a Long Way: Minority Teacher Representation and District Performance in a Highly Homogenous Context

In this article data from Wisconsin school districts is used to test and expand upon the theory of representative bureaucracy. The author first develops a metric measuring representativeness, and then uses three years of data to test the link between representativeness and school district performance. The analysis reveals that school districts with more representative teaching staffs exhibit higher levels of student performance. The results illustrate the link between representation and performance, the need for a broader conceptualization of minority when studying representation, and the potential benefits of representation for non-minority populations.

     

European industrial districts: Influence of geographic concentration on performance of the firm

This paper reviews ideas and insights from recent firm strategy literature. We argue that these perspectives can be usefully extended to explain the competitive advantage of the industrial district. Most of the empirical studies seeking evidence of the competitive advantage of the industrial district consisted of case studies. This paper attempts to offer a measurement of the performance of industrial district firms on a comparative basis by using the case of the Spanish ceramic tile industry.     

The Formation of Group Affect and Team Effectiveness: The Moderating Role of Identification

In the current research we use the social identity perspective to enhance our understanding of group affect (i.e. a collectively shared pattern of affective states among group members). Because higher identification (i.e. the extent to which group members define themselves in terms of their group membership) is related to higher attentiveness to fellow group members, we expected that group identification would foster affective convergence, and that the effects of group affective tone on team effectiveness would be stronger for higher identifying groups. A survey of teams (n=71 teams) confirmed our expectations. A scenario experiment (n=121 participants) added to our findings by showing that identification does indeed lead group members to affectively converge to their fellow group members and that this affective convergence, in turn, explains subsequent team‐oriented attitudes. Our study testifies to the notion that team managers may want to take notice of and manage affect in work groups, because, especially in higher identifying teams, affect may spread among team members and influence the team's effectiveness.     

Organizational identity in acculturation in cross-border acquisitions: Implications for HRD practitioners in global M&A

The purpose of this study is to explore the role of organizational identity in acculturation, or organizational culture development, between the acquired and the acquiring organizations during a cross-border acquisition. The goal is to identify how long-term and short-term employees identify with the acquired organization, and the implications for acculturation for both groups. It is also to help identify implications for Human Resource Development Practitioners in this process. The long-term employees (more than seven years) of the acquired organization identified more strongly with the organization than the short-term (three or less years) employees in this study. The short-term employees seemed to welcome the acquiring Multinational Company (MNC), and readily adapted to their multicultural identity, while long-term employees were more concerned with maintaining the reputation of the original organization. The study provides Human Resource Development (HRD) practitioners with a better understanding of how and why organizational identity is an important aspect to consider in the acculturation process in cross-border mergers and acquisitions. It also provides insight into how to work with organizational identity with acquired organizations in integration and adaptation to the new organization by understanding the differences in organizational identity of long-term and short-term employees in India.     

Nostalgia and the Narrativization of Identity: A Turkish Case Study

This paper offers an interpretation of the collective identity‐narrative of a Turkish faculty of vocational education. Particular attention is focused on the importance of nostalgia in acts of collective self‐authorship. Nostalgia, it is argued, is key to the understanding of the dynamics of individual and organizational identity‐construction in several ways: it can be a means of maintaining a collective sense of socio‐historic continuity, a source of resistance to hegemonic influence and a defence against anxiety. The research contribution of this paper is threefold. First, it illustrates how groups assemble shared storylines that subjectively constitute their collective identity. Second, it analyses the different ways in which acts of collective nostalgia can inform the stories by which individuals and groups understand their present circumstances, preserve self‐esteem, and react to perceived threats. Third, it theorises nostalgia as giving access to a shared heritage of apparently authentic and identity‐relevant values and beliefs, as an emotional support during periods of organizational change, and as a form of uniqueness claim central to processes of individual‐organization identification.     

Should I Stay or Should I Go? Explaining Turnover Intentions with Organizational Identification and Job Satisfaction*

The social identity approach is a powerful theoretical framework for the understanding of individuals' behaviour. The main argument is that individuals think and act on behalf of the group they belong to because this group membership adds to their social identity, which partly determines one's self‐esteem. In the organizational world, social identity and self‐categorization theories state that a strong organizational identification is associated with low turnover intentions. Because identification is the more general perception of shared fate between employee and organization, we propose that the relationship between identification and turnover will be mediated by job satisfaction as the more specific evaluation of one's task and working conditions. In four samples we found organizational identification feeding into job satisfaction, which in turn predicts turnover intentions.     

Organizational identification as a mediator for the effects of psychological contract breaches on organizational citizenship behavior: Insights from the perspective of ethnic minority employees

This study examines the contribution of the psychological contract (PC) framework to the understanding of ethnic minority employees’ employment relationships. First, it tests the generalizability of PC types (transactional, relational, and balanced) observed in the general population to ethnic minority employees. Then, to further address the unique needs and motivators of minority employees, this study considers diversity-related PCs. It adopts social exchange theory to explain how transactional, relational, balanced, and diversity-related PC breaches predict organizational citizenship behavior (OCB). Moreover, it draws insights from social identity theory and examines the mediating role of organizational identification in the relationship between types of PC breach and OCB. Data from 361 Turkish employees working as ethnic minorities in Belgium indicate that relational and diversity-related PC breaches predict OCB partially via organizational identification while transactional and balanced PC breaches directly affect OCB.     

A Game Theory Approach for Assessment of Risk and Deployment of Police Patrols in Response to Criminal Activity in San Francisco

An efficient police patrol schedule must ensure the allocation of an appropriate number of officers sufficient to respond to the danger of criminal incidents, particularly in an urban environment, even when the available number of personnel is limited. This study proposes a framework that incorporates two game theory models designed for the allocation of police officers to patrol shifts. In the first step, the interactions of three factors between the criminal and the operation captain are modeled as a zero-sum, noncooperative game, after which a mixed strategy Nash equilibrium method is used to derive the risk value for each district to be patrolled. In the second step, the risk values are used to compute the Shapley value for all 10 districts, for three different threat levels. A fair allocation of police personnel based on the Shapley value is made with a minimum set of personnel deployment costs. The efficacy of the proposed method is verified using openly available data from the San Francisco City Police detailing incidents from the year 2016. The experimental results show that police planners can use this framework to quantitatively evaluate the criminal threat in each district when deciding upon the deployment of patrol officers for three shifts per day.     

Inside Out? Organizational Membership,Ambiguity and the Ambivalent Identity of the Internal Consultant

Changes in organizational structure, roles and technologies have led to an increasing appreciation of the complexities of organizational membership. While a growing literature has focused on this issue with regard to precarious and marginal employees, this paper explores how senior and middle managers in ambiguous roles make sense of their work identity and organizational membership. Based on extensive interviews with human resource and organizational development managers operating as 'internal consultants', it is argued that managers in such ambiguous roles seek to develop a preferred identity which balances both organizationally distinctive and inclusive elements. While potentially conflicting, this ambivalent position can also be a source of strength and differentiation, involving claims to structural autonomy and specialist expertise, aligned to an intimate understanding of organizational politics and personalities. Through analysis of the interview data, the paper highlights the boundary dimensions around which managers in internal consulting roles develop such an ambivalent organizational identification, the ways in which distinctive and inclusive aspects of identity are rationalized, and the constraints upon the achievement of a preferred identity as an internal consultant.