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This book is devoted to government failures, which imply that the government cannot fulfil its key obligations related to formulating rules. Representing the interests of society, the government establishes rules as frameworks within which market actors should act. However, while market failures have been discussed intensively in the economic literature, government failures are often neglected by scholars. In this book, the author tries to fill this gap through detailed consideration of the meanings of and reasons for government failures. The Journal of Economic Sociology publishes the first chapter, "Introducing Government Failure", and the second chapter, "How Market and Society Relate". In the first chapter, the author formulates the research problem and describes the structure of the book. The second chapter investigates how market and society are interrelated from three theoretical perspectives, as follows: society and markets as separate entities, markets embedded in society, and society within the market. The author also explores how markets and governments may contribute to social welfare. The case of healthcare reforms is used for this purpose.

The distance between actors in an organization affects how they interact with each other, and particularly whether they will exchange (innovative) knowledge with each other. Actors in each other's proximity have fewer conflicts, more trust towards each other, for example, and are thus more involved in knowledge transfer. Actors close to others thus are believed to perform better: by being more innovative, for instance. This theory of propinquity's claim resonates widely in the literature and has intuitive appeal: 'people are most likely to be attracted towards those in closest contact with them' (Newcomb, Th. (1956). American Psychologist, 11, p. 575). Knowledge that a focal actor receives from alters who are close is more readily accessed, better understood and more readily useable. At the same time, however, and in contrast to the what the theory of propinquity suggests, knowledge that a focal actor receives from alters who are at a greater distance may be more diverse, offer unexpected and valuable insights, and therefore give rise to innovation. In order to understand these opposing expectations, scholars have indicated that distance must be conceived of as multifaceted: individuals can be close to each other in one way, while at the same time distant in another. No prior paper has extensively studied the effects of distance as a multifaceted concept, however. This study offers two distinct contributions. It argues, first, why some instances of distance affect the opportunity to interact with alters, potentially lowering an actor's performance, while other instances of distance affect the expected benefits from interaction. The latter would increase an actor's performance. Secondly, this paper is the first study to test empirically the expectations about how seven different measures of distance affect an actor's innovative performance. Innovative performance is measured as both creative contribution and contribution to knowledge that has immediate commercial use (patents). In the setting of a large research lab, it is found, contrary to expectations, that distance does not hurt individual innovative performance and sometimes helps it in unexpected ways.

Social networks are an important driver for successful innovation, both at the individual level as well as the organizational level. Recent research has also shaped that networks within teams can enhance performance. Innovative project teams are embedded in an organizational context, however, and teams typically consist of people with expertise from diverse backgrounds, and from different units. Team members may have ties to other teams, business units, and hierarchical levels. Although it seems clear that such ties can influence team performance, remarkably little research has focused on what is here referred to as vertical and horizontal cross‐ties. Previous research may have ignored the possibility that vertical and horizontal bridging ties may have different performance outcomes. Although the literature suggests that diversity of input, or horizontal cross‐unit ties will benefit team performance and innovativeness, there is reason to believe that ties to higher levels in the organization might have an effect on project team performance and innovativeness too. This article in particular studies the role of vertical cross‐hierarchy ties. In an exploratory analysis combining quantitative and qualitative results, it is distinguished between horizontal cross‐unit and vertical cross‐hierarchy ties and their contribution to new business development (NBD) project performance, thereby making a substantial contribution to both academic literature and managerial practice. Our study is based on a multiple case‐study approach of several NBD project teams in a large European financial service provider. Our results show that successful innovation project teams are characterized by a large number of cross‐unit ties in combination with a large number of cross‐hierarchical ties compared with less successful project teams. Additionally, proof is found that vertical cross‐hierarchy ties should be concentrated rather than scattered across project members.

The distance between actors in an organization affects how they interact with each other, and particularly whether they will exchange (innovative) knowledge with each other. Actors in each other's proximity have fewer conflicts, more trust towards each other, for example, and are thus more involved in knowledge transfer. Actors close to others thus are believed to perform better: by being more innovative, for instance. This theory of propinquity's claim resonates widely in the literature and has intuitive appeal: 'people are most likely to be attracted towards those in closest contact with them' (Newcomb, Th. (1956). American Psychologist, 11, p. 575). Knowledge that a focal actor receives from alters who are close is more readily accessed, better understood and more readily useable. At the same time, however, and in contrast to the what the theory of propinquity suggests, knowledge that a focal actor receives from alters who are at a greater distance may be more diverse, offer unexpected and valuable insights, and therefore give rise to innovation. In order to understand these opposing expectations, scholars have indicated that distance must be conceived of as multifaceted: individuals can be close to each other in one way, while at the same time distant in another. No prior paper has extensively studied the effects of distance as a multifaceted concept, however. This study offers two distinct contributions. It argues, first, why some instances of distance affect the opportunity to interact with alters, potentially lowering an actor's performance, while other instances of distance affect the expected benefits from interaction. The latter would increase an actor's performance. Secondly, this paper is the first study to test empirically the expectations about how seven different measures of distance affect an actor's innovative performance. Innovative performance is measured as both creative contribution and contribution to knowledge that has immediate commercial use (patents). In the setting of a large research lab, it is found, contrary to expectations, that distance does not hurt individual innovative performance and sometimes helps it in unexpected ways.

In this article we first provide a brief introduction into social network analysis, focusing on the measures and approaches that are used in the empirical contributions in this special issue. Second, we discuss the role of social networks in new product development. Social networks are inherently multilevel; we consider four "levels": networks inside a firm, networks that cross firm boundaries, networks between firms, and networks that reside outside of the firm. Third, we discuss these four levels and highlight some of the extant research. We summarize and position the eight papers in this special issue along these four levels. Together, we argue, these papers provide an interesting coverage of this burgeoning field.

Organizations are complex social systems that are not easy to understand, yet they must be managed if a company is to succeed. This book explains networks and how managers and organizations can navigate them to produce successful strategic innovation outcomes. Although managers are increasingly aware of the importance of social relations for the inner-workings of the organization, they often lack insights and tools to analyze, influence or even create these networks. This book draws on insights from social network theory; insights sharpened by research in a number of different empirical settings including production, engineering, financial services, consulting, food processing, and R&D/hi-tech organizations and alternates between offering critical real business examples and more rigorous analysis. This concise book is vital reading for students of business and management as well as managers and executives.

Social economics is a dynamic and growing field that emphasizes the key roles social values play in the economy and economic life. This second edition of the Elgar Companion to Social Economics revises all chapters from the first edition, and adds important new chapters to reflect the expansion and development of social economics. The expert contributions explain a wide range of recent developments across different subject areas and topics in the field, mapping out possible directions of future social economic research. Social economics treats the economy and economics as embedded in a web of social and ethical relationships. It considers economics and ethics as essentially connected, and adds values such as justice, fairness, dignity, well-being, freedom, and equality to the standard emphasis on efficiency. This book will be a leading resource and guide to social economics for many years to come.

Contains fulltext : 119313.pdf (Publisher’s version ) (Closed access) We show that contacts in formal, informal and especially multiplex networks explain transfer of innovative knowledge in an organization. The contribution of informal contacts has been much acknowledged, while that of formal contacts did not receive much attention in the literature in recent decades. No study thus far has included both these different kinds of contacts in a firm, let alone considered their combined effect. The exact overlap between formal as well as informal contacts between individuals, forming multiplex or what we call rich ties because of their contribution, especially drives the transfer of new, innovative knowledge in a firm. Studying two cases in very different settings suggests these rich ties have a particularly strong effect on knowledge transfer in an organization, even when controlling for the strength of ties. Some of the effects on knowledge transfer in an organization previously ascribed to either the formal network or the informal network may actually be due to their combined effect in a rich tie. 08 november 2013 16 p.

Kenneth Boulding was a prolific writer across so many different fields that not only is he often much referred to and cited, he is considered a core member of many of these fields. Boulding is the quintessential interdisciplinary scholar. He died in 1993, but he has left a legacy in economics, conflict studies, systems theory, ecology, biology, communication studies, and ethics. As an economist proper he has tested and expanded the boundaries of that field without unduly “invading” and undermining the expertise and established knowledge of the other social sciences. This proposed volume will allow scholars who have worked or are starting to work in areas that Boulding has initiated, established and made a continued contribution to, to understand the links between these fields and other related ones. The volume will establish a source of inspiration for some time to come.

The first volume to explore mergers and acquisitions in the 21st century. The authors systematically introduce, characterize and evaluate these mergers, and discuss the methodologies that can be employed to measure them. They also consider a number of factors relevant to the performance of mergers and acquisitions.

PurposeThe purpose of this paper is to further the development of strategic thinking, relevant for both academics and practitioners, about a key asset in the knowledge economy: patents.Design/methodology/approachThis paper draws on existing insights on the strategic use of patents, presenting them in a coherent framework.FindingsThe paper discusses the different aspects to patent strategizing that need dedicated management attention, and discusses the key considerations to be taken into account. The paper also indicates at which levels in the organization patent strategizing needs to take place.Practical implicationsPractitioners will be much more aware of the strategic options for using patents to further a firm's competitive position.Originality/valueThe paper draws to some extent on existing knowledge about patents. Such knowledge has, however, been scattered across different domains. The strategic options for a firm of using patents have not been discussed at length or in the context of a comprehensive framework either in the academic literature or in that for practitioners.

'The emerging knowledge economy is prompting decisive changes in the organization of business firms. Corporate hierarchies flatten under the impact of ICT and the need to delegate decision rights. The boundaries of the firm shrink under the impact of outsourcing and viable relational contracting. However, we still know very little about the mechanics and manifestations of this process. Killian McCarthy, Maya Fiolet, and Wilfred Dolfsma's The Nature of the New Firm breaks new ground in our understanding of changing economic organization. It will appeal not only to theorists of the firm, but also to management scholars and sociologists interested in organization.' - Nicolai J. Foss, Copenhagen Business School, Denmark.

Arthur [1,2] provided a model to explain the circumstances that lead to technological lock-in into a specific trajectory. We contribute substantially to this area of research by investigating the circumstances under which technological development may break-out of a trajectory. We argue that for this to happen, a third selection mechanism--beyond those of the market and of technology--needs to upset the lock-in. We model the interaction, or mutual shaping among three selection mechanisms, and thus this paper also allows for a better understanding of when a technology will lock-in into a trajectory, when a technology may break-out of a lock-in, and when competing technologies may co-exist in a balance. As a system is conceptualized to gain a (third) degree of freedom, the possibility of bifurcation is introduced into the model. The equations, in which interactions between competition and selection mechanisms can be modeled, allow one to specify conditions for lock-in, competitive balance, and break-out.

This study makes a number of observations about the way in which the current crisis in particular, but economic crises more generally, are reported upon by the media. Considering terminology used to describe the financial crisis of 2007/2008 by employing a dataset of 956 articles from The Economist, we study what terms are used, why, and how they evolve. We consider how the frequency of negative emotional terms and the frequency of negative economic terms increase from the period of no-crisis to the period of the crisis. Increasing incidence lowers levels of consumer confidence. We predict that as the crisis evolves the nature of the terminology used to describe it will change, and that the present crisis will receive a special name, like the "Great Depression" of the 1930s. We explore a number of possibilities, and conclude that the preferred name will be the Credit Crunch.

The global economy is changing rapidly and multinational corporations (MNCs) are at the forefront of this transformation. This book provides novel and profound analyses of how MNCs and emerging economies are related, and how this relationship affects the dynamics of the global economy. In particular, the authors deal with the nexus between multinationals, emerging economies and innovation from a variety of different perspectives. Innovation is regarded as a core driving force in the global economy but the authors show how it can impede as well as encourage sustainability. The book brings together insights from business studies and economics, and combines concise theoretical discussion with empirical analyses of unique data.