Institutional Voids,Economic Adversity and Inter‐firm Cooperation in an Emerging Market: The Mediating Role of Government R&D Support

This paper examines the mediating mechanism of the relationship between institutional voids (IVs) and inter‐firm cooperation and the moderating role of economic adversity in the context of small and medium‐sized enterprises (SMEs) based in emerging markets. The hypotheses are tested using time‐lagged survey data from 214 SMEs in Ghana. The findings provide support for the hypotheses by showing that: (1) IVs positively influence the use of government research and development (R&D) support; (2) the use of government R&D support mediates the relationship between IVs and inter‐firm cooperation; and (3) economic adversity positively moderates the relationship between IVs and the use of government R&D support. The findings contribute to understanding the role of IVs in inter‐firm cooperation. The wider implications for theory and practice are examined.     

Production strategy decisions a simulation model approach

Model building in physical, statistical, simulation or other form, is making an increasing contribution to the problem solving methodology in economics, industry, government, and technological development (1). More specifically, in the present context, simulation models can offer a distinctive and valuable contribution to the understanding by management of complex business systems, interactions and environment and indicate ways toward improvement, financial and otherwise (2). The advent of powerful computers in the last few years is the decisive factor which has decided the means of realizing the full potential of simulation models, hitherto unattainable because of the vast amount of data processing and calculation required. The purpose of this article is to indicate the approach to and scope of a computerized simulation model for long term production strategy decision making (3). While the model relates to the system and data of a specific production unit, manufacturing electronic components, the principles are widely applicable in any size and type of company. It is not a specifically large company technique.     

New venture development at Du Pont

New Products are the life blood of a growing company, but traditional methods of introducing new products are no longer adequate. Du Pont is using a new approach called Venture Management. A New Venture Development provides an ideal environment for making and carrying out decisions involved in introducing new technological developments. It combines the advantages in mobility and communications enjoyed by a small venture-orientated company with the strong technical and financial advantages of a large company.     

Organizing the corporate planning function

A survey of corporate Planning in Britain suggests that the way the process is organized varies with the need of the firm. There appear to be two types of needs which foster the development of the planning activity—strategy development and co-ordination. In capital intensive companies, threatened by technological or market change, there is a need for reappraisal of the firm's overall strategy. On the other hand, in a large diversified firm the requirement may be to co-ordinate the plans of different divisions and departments, particularly investment proposals. This article suggests a framework for the analysis of these planning needs.     

Redefining the board's role in fiscal planning

Board approval of an operating budget, a traditional exercise of board authority, can trivialize board leadership and stultify managerial prerogatives. Considered within a new governance paradigm, conventional budget approval is not only unnecessary, but dysfunctional. This article argues that boards should proactively establish policy for financial planning and then require administrative budgeting throughout the year to meet the policy criteria. The result is that boards stay focused on the bigger issues, particularly program priorities and goals, leaving managers the authority to create and adjust budgets within policy boundaries.