Markets-as-networks theory: a review

This paper exposes the development of markets-as-networks theory from formal inception in the mid-1970s until 2010 state-of-the-art, en route presenting its historical roots. This largely European-based theory challenges the conventional, dichotomous view of the business world as including firms and markets, arguing for the existence of relational governance structures (the so-called ‘‘interfirm cooperation’’) in addition to hierarchical and transactional ones.

The Role of networks in the internationalization process of Finnish design companies

Finnish design has attracted global attention lately and companies within the industry have potential in international markets. Because networks have been found to be extremely helpful in a firm’s international business operations and usefulness of networks is not fully exploited, their role in Finnish design companies is investigated. Accordingly, this study concentrates on understanding the role of networks in the internationalization process of Finnish design companies. This was investigated through describing the internationalization process of Finnish design companies, analyzing what kind of networks are related to internationalization process of Finnish design companies, and analyzing how networks are utilized in the internationalization process of Finnish design companies. The theoretical framework explores the Finnish design industry, internationalization process and networks. The Finnish design industry is introduced in general and the concept of design is defined to refer to the industries of textiles, furniture, clothing, and lighting equipment in the research. The theories of internationalization process, the Uppsala model and Luostarinen’s operation modes, are explored in detail. The Born Global theory, which is a contrary view to stage models, is also discussed. The concept of network is investigated, networks are classified into business and social networks, and network approach to internationalization is discussed. The research is conducted empirically and the research method is a descriptive case study. In this study, four case companies are investigated: the interior decoration unit of L-Fashion Group, Globe Hope, Klo Design, and Melaja Ltd. Data is collected by semi-structured interviews and the analysis is done in the following way: the case companies are introduced, their internationalization processes and networks are described and, finally, the comparison of the case companies is done in a form of cross-case analysis. This research showed that cooperation with social networks, such as locals or employees who have experience from the target market can be extremely helpful in the beginning of a Finnish design company’s internationalization process. This study also indicated that public organizations do not necessarily enhance the internationalization process in a design company point-of-view. In addition, the research showed that there is cooperation between small Finnish design companies whereas large design companies are not as open to cooperation with competitors.

Thanatos Empresarial : evolución del Sector de la construcción en Colombia.

Esta investigación está orientada hacia la identificación de características de la internacionalización de la economía colombiana, específicamente en el sector de la construcción, los cuales han logrado otorgarle un especial dinamismo durante esta última década. En el desarrollo del documento se evalúan los modelos de internacionalización basados principalmente en tres temas fundamentales; el primero es la teoría económica, el segundo es la teoría como proceso, y por último la teoría de redes. Cada uno de estos modelos basados en su respectiva teoría, enseñan conceptos de cómo podrían las empresas implementar planes para entrar a otros mercados, empezando por países similares tanto en aspectos sociales, económicos, culturales, y políticos, logrando así de esta manera una posición aventajada frente a sus competidores. Al lograr este posicionamiento pueden empezar su expansión a países más lejanos puesto que ya han conocido y fortalecido sus ventajas competitivas, obteniendo una mayor experiencia de adaptación a nuevos mercados, con esto alcanzando captar mayores recursos económicos, de conocimiento y de otras índoles que ayudan a disminuir el riesgo de inversión que realizan las organizaciones en diferentes naciones.

Profundización, apertura y cierre de mercados de exportación a nivel sectorial en Colombia : una estimación de los márgenes del comercio y su relación con el ciclo económico

En este trabajo se explora, desde el punto de vista empírico, el comportamiento de la profundización, apertura y cierre de mercados de exportación a nivel sectorial para Colombia durante el periodo 1997- 2010, con énfasis en los dos periodos de recesión que presenta la economía durante el mismo. Para ello se emplea una metodología de descomposición de los cambios registrados por el comercio, en sus márgenes intensivo y extensivo, que permite la identificación de estos fenómenos y su observación tanto a lo largo del tiempo como a nivel transversal. Los resultados indican que, en el corto plazo, el margen intensivo del comercio explica la mayor parte de las variaciones en las exportaciones, en tanto que en el mediano plazo se encuentra una importante contribución del margen extensivo a éstas. Adicionalmente, desde el punto de vista sectorial, la crisis de 1997-1999 no presenta un patrón homogéneo en términos del comportamiento de los márgenes del comercio, en tanto que la de 2008- 2009 se caracteriza por presentar un patrón más homogéneo a través de los distintos sectores de la actividad económica.

Anatomy of relationship significance: a critical realist exploration

Markets-as-networks (MAN) theorists contend, at least tacitly, the significance of business relationships to the firm – that is, business relationships contribute somewhat to corporate survival or growth. One does not deny the existence of significant business relationships but sustain, in contrast to the consensus within the MAN theory, that relationship significance should not be a self-evident assumption. For significance cannot be a taken-for-granted property of each and every one of the firm’s business relationships. The authors adopt explicitly a critical realist metatheoretical position in this conceptual paper and claim that relationship significance is an event of the business world, whose causes remain yet largely unidentified. Where the powers and liabilities of business relationships (i.e., relationship functions and dysfunctions) are put to work, inevitably under certain contingencies (namely the surrounding networks and markets), relationship effects ensue for the firm (often benefits in excess of sacrifices, i.e., relationship value) and as a consequence relationship significance is likely to be brought about. In addition, relationship significance can result from the dual impact that business relationships may have on the structure and powers and liabilities of the firm, that is, on corporate nature and scope, respectively.

Agency services for the management of distributed energy networks using parallel auction markets

[ES]En las próximas décadas, el sistema de generación, transmisión y distribución de energía eléctrica afrontará los retos más importantes de su historia. La escasez de los recursos energéticos tradicionales, los efectos de los gases invernadero y el aumento imparable ,de la demanda llaman a transitar hacia un nuevo tipo de infraestructura capaz de explotar el potencial que ofrecen las nuevas fuentes de energía renovable, y de conceder autonomía y capacidad de decisión a los usuarios. Este nuevo modelo de red eléctrica es conocido como Smart Grid, y es habitualmente propuesto como una red distribuida, reactiva e inteligente.

Preference Mapping Of Dulce De Leche Commercialized In Brazilian Markets.

Dulce de leche samples available in the Brazilian market were submitted to sensory profiling by quantitative descriptive analysis and acceptance test, as well sensory evaluation using the just-about-right scale and purchase intent. External preference mapping and the ideal sensory characteristics of dulce de leche were determined. The results were also evaluated by principal component analysis, hierarchical cluster analysis, partial least squares regression, artificial neural networks, and logistic regression. Overall, significant product acceptance was related to intermediate scores of the sensory attributes in the descriptive test, and this trend was observed even after consumer segmentation. The results obtained by sensometric techniques showed that optimizing an ideal dulce de leche from the sensory standpoint is a multidimensional process, with necessary adjustments on the appearance, aroma, taste, and texture attributes of the product for better consumer acceptance and purchase. The optimum dulce de leche was characterized by high scores for the attributes sweet taste, caramel taste, brightness, color, and caramel aroma in accordance with the preference mapping findings. In industrial terms, this means changing the parameters used in the thermal treatment and quantitative changes in the ingredients used in formulations.

A hybrid planning method for transmission networks in a deregulated environment

The reconstruction of power industries has brought fundamental changes to both power system operation and planning. This paper presents a new planning method using multi-objective optimization (MOOP) technique, as well as human knowledge, to expand the transmission network in open access schemes. The method starts with a candidate pool of feasible expansion plans. Consequent selection of the best candidates is carried out through a MOOP approach, of which multiple objectives are tackled simultaneously, aiming at integrating the market operation and planning as one unified process in context of deregulated system. Human knowledge has been applied in both stages to ensure the selection with practical engineering and management concerns. The expansion plan from MOOP is assessed by reliability criteria before it is finalized. The proposed method has been tested with the IEEE 14-bus system and relevant analyses and discussions have been presented.

Knowledge and markets

An economy is a coordinated system of distributed knowledge. Economic evolution occurs as knowledge grows and the structure of the system changes. This paper is about the role of markets in this process. Traditionally, the theory of markets has not been a central feature of evolutionary economics. This seems to be due to the orthodox view of markets as information-processing mechanisms for finding equilibria. But in economic evolution markets are actually knowledge-structuring mechanisms. What then is the relation between knowledge, information, markets and mechanisms? I argue that an evolutionary theory of markets, in the manner of Loasby (1999), requires a clear formulation of these relations. I suggest that a conception of knowledge and markets in terms of a graphical theory of complex systems furnishes precisely this.

Electricity Markets Simulation: MASCEM Contributions to the Challenging Reality

Electricity Markets are not only a new reality but an evolving one as the involved players and rules change at a relatively high rate. Multi-agent simulation combined with Artificial Intelligence techniques may result in sophisticated tools very helpful under this context. Some simulation tools have already been developed, some of them very interesting. However, at the present state it is important to go a step forward in Electricity Markets simulators as this is crucial for facing changes in Power Systems. This paper explains the context and needs of electricity market simulation, describing the most important characteristics of available simulators. We present our work concerning MASCEM simulator, presenting its features as well as the improvements being made to accomplish the change and challenging reality of Electricity Markets.

VPP´s multi-level negotiation in smart grids and competitive electricity markets

The increase of distributed generation (DG) has brought about new challenges in electrical networks electricity markets and in DG units operation and management. Several approaches are being developed to manage the emerging potential of DG, such as Virtual Power Players (VPPs), which aggregate DG plants; and Smart Grids, an approach that views generation and associated loads as a subsystem. This paper presents a multi-level negotiation mechanism for Smart Grids optimal operation and negotiation in the electricity markets, considering the advantages of VPPs’ management. The proposed methodology is implemented and tested in MASCEM – a multiagent electricity market simulator, developed to allow deep studies of the interactions between the players that take part in the electricity market negotiations.

Electricity markets: transmission prices methods

In the context of electricity markets, transmission pricing is an important tool to achieve an efficient operation of the electricity system. The electricity market is influenced by several factors; however the transmission network management is one of the most important aspects, because the network is a natural monopoly. The transmission tariffs can help to regulate the market, for this reason transmission tariffs must follow strict criteria. This paper presents the following methods to tariff the use of transmission networks by electricity market players: Post-Stamp Method; MW-Mile Method Distribution Factors Methods; Tracing Methodology; Bialek’s Tracing Method and Locational Marginal Price. A nine bus transmission network is used to illustrate the application of the tariff methods.

Mixed integer non linear programming and artificial neural network based approach to ancillary services dispatch in competitive electricity markets

Ancillary services represent a good business opportunity that must be considered by market players. This paper presents a new methodology for ancillary services market dispatch. The method considers the bids submitted to the market and includes a market clearing mechanism based on deterministic optimization. An Artificial Neural Network is used for day-ahead prediction of Regulation Down, regulation-up, Spin Reserve and Non-Spin Reserve requirements. Two test cases based on California Independent System Operator data concerning dispatch of Regulation Down, Regulation Up, Spin Reserve and Non-Spin Reserve services are included in this paper to illustrate the application of the proposed method: (1) dispatch considering simple bids; (2) dispatch considering complex bids.