A property rights approach to strategy

This article is about how resources can be conceptualized as bundles of attributes for which one can assign economic property rights. Strategic considerations are deliberately incorporated into the analysis through the assessment of the activities of capture and protection of property rights, along with the examination of the institutional environment. These basic elements combine in order to design an approach to strategy. In developing this approach, the authors identify four key questions for structuring the strategy formulation process of the firm. The analytical framework is illustrated through a particular case: the collection of royalties on the genetically modified (GM) technology in soybean seeds.

A NEO-KALECKIAN MODEL OF PROFIT SHARING, CAPACITY UTILIZATION AND ECONOMIC GROWTH

This paper sets forth a Neo-Kaleckian model of capacity utilization and growth with distribution featuring a profit-sharing arrangement. While a given proportion of firms compensate workers with only a base wage, the remaining proportion do so with a base wage and a share of profits. Consistent with the empirical evidence, workers hired by profit-sharing firms have a higher productivity than their counterparts in base-wage firms. While a higher profit-sharing coefficient raises capacity utilization and growth irrespective of the distribution of compensation strategies across firms, a higher frequency of profit-sharing firms does likewise only if the profit-sharing coefficient is sufficiently high.