The Role of Knowledge Bases in Complex Product Systems: Some Empirical Evidence from the Aero Engine Industry

In this paper we argue that the virtual corporation as understood in current management literature does not hold as a universal model throughout various industrial sectors. Complex product systems industries show peculiar features in terms of product characteristics, innovation dynamics and strategic and management options that may render the virtual corporation model inapplicable.The paper begins with a contrast between the simplistic neoclassical approach to the interpretation of the concept of knowledge and the more in-depth evolutionary view. The former understands knowledge as information and its production process and outcomes as easily decomposable. Based on this, advocates of virtual corporation claim the viability of outsourcing strategies based on simple economic factors. The evolutionary approach, on the other hand, considers knowledge as a system of processes deeply rooted in their contexts of production. Tacitness and non-decomposability of the knowledge production processes are highly emphasised in this view. In the light of this contrast and relying on a study of the aero engine industry we reinterpret the notion of virtual corporation showing its limits.     

Shaping the digital transformation of the retail banking industry. Empirical evidence from Italy

Although numerous studies have investigated the determinants of users’ acceptance of online channels, little attention has been paid to the continuous usage of a direct bank. To address this research gap, we analysed data collected via semi-structured interviews and a survey questionnaire distributed in 2017 to a sample of Italian bank customers. Responses were evaluated using a different statistical methodology based on the Shapley Value regression analysis. In brief, user-friendliness and economic advantages appear to be more decisive at an early stage of adoption. Moreover, structural assurance mechanisms (e.g. clarifying security policies and guarantees) have a robust impact on keeping customers online and loyal to electronic channels. Surprisingly, accessibility and compatibility do not seem to be determinant factors.     

Technological and Output Complementarities, and Inter-Firm Cooperation in Information Technology Ventures

Firms whose profiles of technologicalcompetence are complementary to one another are morelikely to enter into technology-based cooperativeagreements, and a broad level of technologicalcomplementarity is necessary for these agreements toextend as far as a mutual coordination of learningprocesses (combined research ventures). Using data onagreements between the world's largest firms in thearea of information technology (IT) and the patternsof technological specialization of these firms in theIT fields as revealed by their corporate patenting inthe US, we show that the technologicalco-specialization of firms helps to explain allianceformation, over and above the effects of anyco-specialization in IT products. While firms whosetechnological efforts are less complementary are lesslikely to cooperate for technology purposes, if theydo cooperate it is to exploit the differences in theirfields of expertise, and hence they are likely to usequasi-market organizational forms such as licensing,while the purpose of the alliance is restricted to anexchange of knowledge without any joint coordinationof learning (research). Instead, equity jointventures are likeliest when at a broad level ofaggregation the profiles of technologicalspecialization of partners are complementary, but ata more detailed level of disaggregation there is agreater distance between them, such that thecoordination of learning efforts is feasible, butrequires a stronger organizational commitment.     

Where are you from? Cultural differences in public good experiments

We study the effect of cultural differences on contributions in a public good experiment, analysing real-time interactions between Italian and British subjects in their home countries. In the first treatment, subjects play in nationally homogeneous groups. In the second treatment, Italian and British subjects play in heterogeneous groups, knowing the nationality of the group members. In the third treatment, we control for a possible “country effect” by giving players no information on nationality. The data suggest that, in homogeneous groups, British subjects contribute significantly more to the public good; contributions are lower in heterogeneous groups; there is no country effect.     

A segmented regression model for event history data: an application to the fertility patterns in Italy

We propose a segmented discrete-time model for the analysis of event history data in demographic research. Through a unified regression framework, the model provides estimates of the effects of explanatory variables and jointly accommodates flexibly non-proportional differences via segmented relationships. The main appeal relies on ready availability of parameters, changepoints, and slopes, which may provide meaningful and intuitive information on the topic. Furthermore, specific linear constraints on the slopes may also be set to investigate particular patterns. We investigate the intervals between cohabitation and first childbirth and from first to second childbirth using individual data for Italian women from the Second National Survey on Fertility. The model provides insights into dramatic decrease of fertility experienced in Italy, in that it detects a ‘common’ tendency in delaying the onset of childbearing for the more recent cohorts and a ‘specific’ postponement strictly depending on the educational level and age at cohabitation.     

On the cardinal utility equivalence of biseparable preferences

We establish a simple condition, based on the willingness to bet on events, under which two biseparable preferences have cardinally equivalent utilities

     

Hierarchical clustering and matrix completion for the reconstruction of world input–output tables

Multi-regional input–output (I/O) matrices provide the networks of within- and cross-country economic relations. In the context of I/O analysis, the methodology adopted by national statistical offices in data collection raises the issue of obtaining reliable data in a timely fashion and it makes the reconstruction of (parts of) the I/O matrices of particular interest. In this work, we propose a method combining hierarchical clustering and matrix completion with a LASSO-like nuclear norm penalty, to predict missing entries of a partially unknown I/O matrix. Through analyses based on both real-world and synthetic I/O matrices, we study the effectiveness of the proposed method to predict missing values from both previous years data and current data related to countries similar to the one for which current data are obscured. To show the usefulness of our method, an application based on World Input–Output Database (WIOD) tables—which are an example of industry-by-industry I/O tables—is provided. Strong similarities in structure between WIOD and other I/O tables are also found, which make the proposed approach easily generalizable to them.

     

MODEL UNCERTAINTY

We study decision problems in which consequences of the various alternative actions depend on states determined by a generative mechanism representing some natural or social phenomenon. Model uncertainty arises because decision makers may not know this mechanism. Two types of uncertainty result, a state uncertainty within models and a model uncertainty across them. We discuss some two‐stage static decision criteria proposed in the literature that address state uncertainty in the first stage and model uncertainty in the second (by considering subjective probabilities over models). We consider two approaches to the Ellsberg‐type phenomena characteristic of such decision problems: a Bayesian approach based on the distinction between subjective attitudes toward the two kinds of uncertainty; and a non‐Bayesian approach that permits multiple subjective probabilities. Several applications are used to illustrate concepts as they are introduced.     

A Subjective Spin on Roulette Wheels

We provide a simple behavioral definition of ‘subjective mixture’ of acts for a large class of (not necessarily expected‐utility) preferences. Subjective mixtures enjoy the same algebraic properties as the ‘objective mixtures’ used to great advantage in the decision setting introduced by Anscombe and Aumann (1963). This makes it possible to formulate mixture‐space axioms in a fully subjective setting. For illustration, we present simple subjective axiomatizations of some models of choice under uncertainty, including Bewley's model of choice with incomplete preferences (2002).