Modernizing small manufacturers in Japan: The role of local public technology centers

Japan's hundreds of thousands of small manufacturing enterprises not only provide high-quality inputs to large Japanese companies, but also are becoming innovators and growth generators in their own right. In addition to help from larger customers, small Japanese companies can call upon an array of public support mechanisms, including about 170 local Kohsetsushi examination and technology centers which provide research, testing, training, and guidance for firms with under 300 employees. With their intensive geographical coverage, broad range of technical services, and nominal fees, these centers offer small Japanese firms a readily available and effective source of assistance to improve their manufacturing operations, technology, and products. After reviewing the changing context for small manufacturers in Japan, the article examines the role of local Kohsetsushi centers in small firm modernization. This article considers the history, organization, and services of the Kohsetsushi system, explores the operation of five case study centers, and discusses how small Japanese firms benefit from Kohsetsushi services. Finally, there is an assessment of the strengths and weaknesses of the Kohsetsushi system.     

Political Brand Communities as Social Network Clusters: Winning and Trailing Candidates in the GOP 2016 Primary Elections

This study integrates a brand community theoretical framework and a social networks approach to the study of political marketing on social media. It analyzes Twitter activity by and about all Republican candidates during the month of January 2016 prior to the Iowa primary caucus. Specifically, it identifies key patterns of information flow and political brand community emergence surrounding each candidate as well as brand social mediators who play influential roles in content flow. Findings detect network clusters - subgroups of siloed users - who converse to exchange information with one another rather than with disconnected others in any given political brand community. We classify these clusters in two groups: direct communities that surround a brand – here, a candidate – and indirect communities that consist of users who talk about the political brands but are not directly connected to the brand. Within this fragmented community structure, brand social mediators have the power to bridge direct and indirect brand communities across the network. Among the winning and trailing brand communities, different sets of brand social mediators, patterns of information flow, and network structures emerge. The findings suggest that the more successful a political brand is in voter polls, the weaker the social ties and relationships are within the brand communities. The interactions between political brands and their direct vs. indirect communities also exhibit different patterns of information flow. While direct brand communities demonstrate a higher level of reciprocity, indirect brand communities show a higher level of density. Implications and directions for future research are discussed.     

Coordinating industrial modernization services: Impacts and insights from the U.S. Manufacturing Extension Partnership

This study examines how programs sponsored through the National Institute of Standards and Technology's Manufacturing Extension Partnership (MEP) have influenced the organization and delivery of industrial modernization services to small and medium-sized manufacturers in regions in the United States. The study found that increased service coordination has occurred and that this, in turn, has mostly improved the quality and comprehensiveness of assistance delivered to firms. But there are also some costs and drawbacks associated with multi-partner service delivery approaches. The study identifies and examines best practices that can help MEP centers increase the effectiveness of service coordination. This paper draws upon research supported by the U.S. Department of Commerce, National Institute of Standards and Technology under award 50SBNBC8305. The views expressed are the authors' and do not necessarily reflect those of the research sponsor.     

Entrepreneurship in the Policy Process: Linking Behavior and Context through a Systematic Review of the Policy Entrepreneurship Literature

How do different policy environments influence the choice of policy entrepreneurship (PE) strategies? Using data collected from a systematic review of the PE literature, the authors identify subcomponents of the three streams of the policy process and empirically test the relationship between dominance of each stream and PE strategies. Findings show that when the political and policy streams dominate, policy entrepreneurs focus on policy formation and policy implementation strategies and not on problem identification and policy evaluation strategies. Surprisingly, there is no correlation between dominance of the problem stream and PE strategies. This should lead to the normative claim that PE is not necessarily a positive phenomenon. The article concludes with suggestions for future research.     

The Controlling Shareholder Enforcement Gap

The regulation of controlling shareholder related‐party transactions is one of corporate law's animating concerns. A recent Chancery Court decision extends the double approval framework endorsed by the Delaware Supreme Court—independent director committees and a majority of the minority shareholders—to non‐freezeout transactions. This article explains why the Chancery Court's innovation does not decrease the risk faced by minority shareholders. Subjecting a transaction to the double approval framework is a voluntary decision. Transaction planners will willingly traverse this path if the benefits outweigh the loss in deal certainty and attendant costs. When almost every freezeout is challenged in court, the voluntary application of this framework is the logical outcome. The calculus in the non‐freezeout context leads to a different result. Non‐freezeouts must be challenged by a derivative lawsuit. The procedural hurdles inherent in the derivative mechanism affect both the demand for the ratification framework and the incentive to comply. Without a tangible threat of a lawsuit to coax voluntary compliance in the non‐freezeout setting, transaction planners have nothing to gain by subjecting the deal to the double approval gauntlet. This article's analysis reveals a large gap in the enforcement of self‐dealing transactions. Recent high‐profile litigation exposes questionable adherence to the double approval framework for obviously conflicted non‐freezeout transactions. The paucity of derivative lawsuits foretells a troubling fate for similar transactions at less enticing litigation targets. Worse yet, the superficial step toward improved minority shareholder protection stifles the discussion on additional reform.     

Technological diversity,scientific excellence and the location of inventive activities abroad: the case of nanotechnology

Our contribution to the expanding literature on the globalization of research and innovation is to investigate the extent to which sector-specific developments in an emerging technology (such as increasing interdisciplinarity and complexity) affect inventive activities developed abroad. We look at how technological diversity and scientific excellence of host countries in the field of nanotechnology affect the development of inventive activities by US multinational companies (MNCs). We identify the most active US-based MNCs in nanotechnology-related patenting and examine location decisions of these companies and their international subsidiaries. Econometric results confirm our hypothesis that the technological breadth of host countries positively influences the expected number of inventions developed abroad by US MNCs. Science capabilities of countries also have a positive impact on the decision to invent abroad, while the influence of market specific factors is less clear. We interpret these results as suggesting that host country science capabilities are important to attract innovative activities by MNCs, but as the interdisciplinary and convergent nature of nanotechnology evolves, access to a broadly diversified knowledge base becomes important in increasing the relative attractiveness of host locations.