Profiles of product innovators among large U.S. manufacturers
Article Abstract:
The effect of product and service innovation on the financial performance of 113 manufacturers, that are ranked among the Fortune 500 companies, is analyzed based on environmental, strategic and organizational factors in the corporate environment. The manufacturers were classified into four groups using 27 measures of innovation. The best long-range financial performance was observed in 42 firms that had highly financed R&D programs and a work environment that fostered innovation. Another group of 10 firms that chose to focus on acquisitions performed with almost the same extent of financial success despite minimal innovative efforts. A third group of 36 firms that concentrated innovative efforts on process research did poorly financially. The last group of 25 firms that did not undertake any innovation displayed average return on capital performance.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1992
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Efficient sourcing and debt financing in imperfect product markets
Article Abstract:
The 'hold-up' problem that arises in firm-supplier relations stems from the tendency of buyer firms to behave opportunistically. They try to exploit their buying power in various ways, such as forcing their costs onto their suppliers or reneging on their commitment to provide their suppliers with enough business. A model demonstrates how the financing choice of a firm can ease the hold-up problem. The existing literature on appropriate rents is extended by considering the impact of financial choice and the conflict of incentives between debtholders and equilibrium of the equity outcome. The inefficiencies that result from the absence of enforceable contracts to counter opportunism can be mitigated. The financing policy of the firm may be structured so that it mimics an optimal contract.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1998
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