Abstract The aim of the paper is to analyze the dynamic model of the Cournot duopoly game with bounded rationality associated to two firms. We consider the cost function of the first firm as nonlinear and for the second firm as linear. The players do not have a complete knowledge of the market and they follow a bounded rationality adjustment process based on the estimation of the marginal profit. Also, the distributed time delay is introduced, because the decisions at the current time depend on the average past decisions. The mathematical model is described by a distributed delay differential system with two nonlinear equations. The study for the local stability of the Nash equilibrium point is carried out in the case of two types of kernels: weak (exponential) and Dirac. A change in local stability of the equilibrium point, from stable to unstable, implies a Hopf bifurcation. The delays are considered as bifurcation parameters. In some conditions of the parameters of the model, we have proved that a family of periodic solutions bifurcates from the equilibrium point when the bifurcation parameter passes through a critical value. Numerical simulations are performed to illustrate the effectiveness of our results. Finally, conclusions and future researches are provided.
{"title":"Analysis of a Dynamical Cournot Duopoly Game with Distributed Time Delay","authors":"N. Sîrghi, M. Neamţu, Petru C. Străin","doi":"10.1515/tjeb-2015-0001","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0001","url":null,"abstract":"Abstract The aim of the paper is to analyze the dynamic model of the Cournot duopoly game with bounded rationality associated to two firms. We consider the cost function of the first firm as nonlinear and for the second firm as linear. The players do not have a complete knowledge of the market and they follow a bounded rationality adjustment process based on the estimation of the marginal profit. Also, the distributed time delay is introduced, because the decisions at the current time depend on the average past decisions. The mathematical model is described by a distributed delay differential system with two nonlinear equations. The study for the local stability of the Nash equilibrium point is carried out in the case of two types of kernels: weak (exponential) and Dirac. A change in local stability of the equilibrium point, from stable to unstable, implies a Hopf bifurcation. The delays are considered as bifurcation parameters. In some conditions of the parameters of the model, we have proved that a family of periodic solutions bifurcates from the equilibrium point when the bifurcation parameter passes through a critical value. Numerical simulations are performed to illustrate the effectiveness of our results. Finally, conclusions and future researches are provided.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"8 1","pages":"1 - 13"},"PeriodicalIF":0.0,"publicationDate":"2015-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0001","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Nowadays social media has a radical impact on the business world, becoming a great customer service tool across many industries. And banking is no exception. Thus, banks managers need to identify ways to make profitable use of the social media. By accepting the benefits and developing their presence in social media, banks will be closer to customers. The objective of our research is to study social media usage in the banking industry and to obtain a managerial view concerning barriers and challenges in the social media implementation process. From the research of the literature in the field, we observed that Social media was studied a lot from the customers’ point of view, but there are not many studies on social media from a managerial point of view. This article presents a part of our research results regarding social media usage in banking in different regions of the world, specifically, the Mexican banking sector. We conducted a qualitative research based on interviews carried on among 20 banks from Mexico. The goal was to see how the decision factors in banks perceive the social media usage for their institution and for the banking industry, in general. The study focuses on the barriers and challenges raised by the existence and usage of social media platforms. The findings revealed an important presence of the Mexican bank industry in social media areas, but with a lot of room for extending the banks’ presence in new Social Media platforms, and different degrees regarding the perception of barriers and challenges in adopting Social Media tools.
{"title":"Social Media in Banking. A Managerial Perception from Mexico","authors":"Doina Danaiata, Camelia Margea, Kristine Kirakosyan, Ana-Maria Negovan","doi":"10.1515/tjeb-2015-0009","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0009","url":null,"abstract":"Abstract Nowadays social media has a radical impact on the business world, becoming a great customer service tool across many industries. And banking is no exception. Thus, banks managers need to identify ways to make profitable use of the social media. By accepting the benefits and developing their presence in social media, banks will be closer to customers. The objective of our research is to study social media usage in the banking industry and to obtain a managerial view concerning barriers and challenges in the social media implementation process. From the research of the literature in the field, we observed that Social media was studied a lot from the customers’ point of view, but there are not many studies on social media from a managerial point of view. This article presents a part of our research results regarding social media usage in banking in different regions of the world, specifically, the Mexican banking sector. We conducted a qualitative research based on interviews carried on among 20 banks from Mexico. The goal was to see how the decision factors in banks perceive the social media usage for their institution and for the banking industry, in general. The study focuses on the barriers and challenges raised by the existence and usage of social media platforms. The findings revealed an important presence of the Mexican bank industry in social media areas, but with a lot of room for extending the banks’ presence in new Social Media platforms, and different degrees regarding the perception of barriers and challenges in adopting Social Media tools.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"147 - 174"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0009","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364957","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The main aim of this paper is to improve some results obtained by Smith. We provide here a closed-form solution for the Ramsey model. We prove that if the inverse of the constant elasticity of intertemporal substitution is different to the elasticity of output with respect to physical capital, then the economy described by this model reaches the unique steady-state equilibrium, for any starting values of per-capita consumption. The advantage of the paper over the existing paper is that the arguments here are not local, that is, our hypotheses are most generally possible. Consequently, we can obtain almost all other results as particular cases of our solution. Our approach clarifies why different starting values of per-capita consumption generates the same steady-state equilibrium, but of different periods of time. We also clarifiy some of previous result obtained by other authors as for example Luca Guerrini.
{"title":"Some Properties of The Solution of The Ramsey Model","authors":"I. Viașu","doi":"10.1515/tjeb-2015-0006","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0006","url":null,"abstract":"Abstract The main aim of this paper is to improve some results obtained by Smith. We provide here a closed-form solution for the Ramsey model. We prove that if the inverse of the constant elasticity of intertemporal substitution is different to the elasticity of output with respect to physical capital, then the economy described by this model reaches the unique steady-state equilibrium, for any starting values of per-capita consumption. The advantage of the paper over the existing paper is that the arguments here are not local, that is, our hypotheses are most generally possible. Consequently, we can obtain almost all other results as particular cases of our solution. Our approach clarifies why different starting values of per-capita consumption generates the same steady-state equilibrium, but of different periods of time. We also clarifiy some of previous result obtained by other authors as for example Luca Guerrini.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"113 - 122"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364601","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We investigate banking efficiency in Baltic countries over the period 2007 - 2011 during one of the biggest financial crisis. The global economic crisis began in December 2007 with the loss of investor confidence in the U.S. securitized mortgages that led to a liquidity crisis that prompted a substantial injection of capital into financial markets by the U.S. Federal Reserve, the Bank of England and European Central Bank. Baltic countries joined the EU in 2004, during the largest wave of accession. Estonia is a member of the eurozone since 2011, Latvia since 2014 and Lithuania adopted euro in 2015. We use Data Envelopment Analysis (DEA) - a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision-making units (or DMUs) for a sample of banks in a highly concentrated banking system. The aim of the paper is to show the evolution of the banking efficiency in the Baltic countries over the period 2007 - 2011 by using Malmquist index. Our goal is to highlight the evolution of efficiency and we want to answer the research question “How banking efficiency evolved after the financial crisis?” Results show a slight improvement in banking efficiency over the period 2010 - 2011 due to improved management of the inputs, but further research is needed to gain a clearer picture of the phenomenon.
{"title":"Banking Integration and Efficiency Convergence in Baltic Countries in Post-Crisis Period","authors":"Mihăiță-Cosmin M. Popovici","doi":"10.1515/tjeb-2015-0008","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0008","url":null,"abstract":"Abstract We investigate banking efficiency in Baltic countries over the period 2007 - 2011 during one of the biggest financial crisis. The global economic crisis began in December 2007 with the loss of investor confidence in the U.S. securitized mortgages that led to a liquidity crisis that prompted a substantial injection of capital into financial markets by the U.S. Federal Reserve, the Bank of England and European Central Bank. Baltic countries joined the EU in 2004, during the largest wave of accession. Estonia is a member of the eurozone since 2011, Latvia since 2014 and Lithuania adopted euro in 2015. We use Data Envelopment Analysis (DEA) - a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision-making units (or DMUs) for a sample of banks in a highly concentrated banking system. The aim of the paper is to show the evolution of the banking efficiency in the Baltic countries over the period 2007 - 2011 by using Malmquist index. Our goal is to highlight the evolution of efficiency and we want to answer the research question “How banking efficiency evolved after the financial crisis?” Results show a slight improvement in banking efficiency over the period 2010 - 2011 due to improved management of the inputs, but further research is needed to gain a clearer picture of the phenomenon.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"134 - 146"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract In this study, the relationship between the foreign trade data and the exchange rate is tested using the monthly data for the period of 1992:01-2014:01 in Turkish Economy. The devaluation of local currency is expected to increase export while decreasing import rates, thus it will close the foreign trade deficit, theoretically. However, this effect is observed in varying degrees in the on both short and long terms. One of the most fundamental problems of the Turkish Economy is the foreign trade deficit, beside the Turkish Lira is a quite frequently fluctuating currency. The relationship between the foreign trade data and the exchange rate is an important topic to examine when the dependence of export to import is especially considered. In this study, the longterm relation between these two main variables and their causality are examined as using the time series analysis. Therefore, the tested hypothesis will be „there is a long term relationship between the exchange rate and the foreign trade in Turkish Economy“. It is was empirically observed that this hypothesis is correct as a result of the tests. It is also observed that there is Granger causality from the exchange rate to the exports, imports and net foreign trade in addition to the fact that the long term relationship exists between the foreign trade and the rate of exchange.
{"title":"Time Series Analysis About The Relationship Between Foreign Trade and Exchange Rate in Turkish Economy","authors":"Bilal Kargi","doi":"10.1515/tjeb-2015-0007","DOIUrl":"https://doi.org/10.1515/tjeb-2015-0007","url":null,"abstract":"Abstract In this study, the relationship between the foreign trade data and the exchange rate is tested using the monthly data for the period of 1992:01-2014:01 in Turkish Economy. The devaluation of local currency is expected to increase export while decreasing import rates, thus it will close the foreign trade deficit, theoretically. However, this effect is observed in varying degrees in the on both short and long terms. One of the most fundamental problems of the Turkish Economy is the foreign trade deficit, beside the Turkish Lira is a quite frequently fluctuating currency. The relationship between the foreign trade data and the exchange rate is an important topic to examine when the dependence of export to import is especially considered. In this study, the longterm relation between these two main variables and their causality are examined as using the time series analysis. Therefore, the tested hypothesis will be „there is a long term relationship between the exchange rate and the foreign trade in Turkish Economy“. It is was empirically observed that this hypothesis is correct as a result of the tests. It is also observed that there is Granger causality from the exchange rate to the exports, imports and net foreign trade in addition to the fact that the long term relationship exists between the foreign trade and the rate of exchange.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"123 - 133"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/tjeb-2015-0007","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67364694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Recently, the remarkable trend upon central bank independence and the efficient monetary policy were seriously highlighted in the monetary economics field. Starting from 1990s’ central bank independence was at the core of policy making and central banking problems, because of the widespread economical, political, personal and budgetary autonomy of the central bank. Nowadays, we can observe an increasing trend upon central bank transparency, for evaluating more accurate the central bank’s performances by the wide public, mass-media and financial markets. Consequently, a central bank must encompass a high degree of accountability and responsibility, because of the final liability in case of failure. In this paper we present, analyze and assess the construction of the most important indices regarding central bank independence, transparency and accountability in a chronological manner, presenting also the advantages and disadvantages of these indices related to actual practices of central banks. Moreover, we analyze the analytical results of the empirical testing of these indices with a considerable impact upon the developed and developing country group. In regard with the empirical results of different authors, we suggest the importance and the necessity for constructing an aggregate index for measuring central bank independence, transparency and accountability, based on de jure stipulations and the actual practices of the central banks.
{"title":"Central Bank Independence, Transparency and Accountability Indexes: a Survey","authors":"F. Dumiter","doi":"10.2478/tjeb-2014-0002","DOIUrl":"https://doi.org/10.2478/tjeb-2014-0002","url":null,"abstract":"Abstract Recently, the remarkable trend upon central bank independence and the efficient monetary policy were seriously highlighted in the monetary economics field. Starting from 1990s’ central bank independence was at the core of policy making and central banking problems, because of the widespread economical, political, personal and budgetary autonomy of the central bank. Nowadays, we can observe an increasing trend upon central bank transparency, for evaluating more accurate the central bank’s performances by the wide public, mass-media and financial markets. Consequently, a central bank must encompass a high degree of accountability and responsibility, because of the final liability in case of failure. In this paper we present, analyze and assess the construction of the most important indices regarding central bank independence, transparency and accountability in a chronological manner, presenting also the advantages and disadvantages of these indices related to actual practices of central banks. Moreover, we analyze the analytical results of the empirical testing of these indices with a considerable impact upon the developed and developing country group. In regard with the empirical results of different authors, we suggest the importance and the necessity for constructing an aggregate index for measuring central bank independence, transparency and accountability, based on de jure stipulations and the actual practices of the central banks.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"35 - 54"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2478/tjeb-2014-0002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68922053","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract To forecast sales as reliably as possible is one of the most important issues in every business trade. Therefore, in recent years different models have been suggested to deal with this issue. One efficient model is the time series model. This study applies a multivariate time series model to forecast Urmia Gray Cement Factory's sales volume and more importantly, to propose an effective model to be used by other cement factories to predict their sales volume. The two independent variables of costs and revenues and the dependent variable of sales were used in the present study. Results of the study indicated the two independent variables had a positive and direct relationship with sales volume forecast.
{"title":"Application of the Varma Model for Sales Forecast: Case of Urmia Gray Cement Factory","authors":"R. B. Khodaparasti, Samad Moslehi","doi":"10.2478/tjeb-2014-0005","DOIUrl":"https://doi.org/10.2478/tjeb-2014-0005","url":null,"abstract":"Abstract To forecast sales as reliably as possible is one of the most important issues in every business trade. Therefore, in recent years different models have been suggested to deal with this issue. One efficient model is the time series model. This study applies a multivariate time series model to forecast Urmia Gray Cement Factory's sales volume and more importantly, to propose an effective model to be used by other cement factories to predict their sales volume. The two independent variables of costs and revenues and the dependent variable of sales were used in the present study. Results of the study indicated the two independent variables had a positive and direct relationship with sales volume forecast.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"101 - 89"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2478/tjeb-2014-0005","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68922085","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper is mainly concerned with relationships between economic growth and gender discrimination in labor markets and education. Although discrimination in different fields has well been addresses and modelled in the economic literature, there are only a few growth models with endogenous wealth and human capital accumulation, gender time distribution between work, leisure and education under gender (positive or negative) discrimination. The production and economic structures, human capital accumulation are based on the Uzawa-Lucas model, while the utility function and gender division of labor, leisure time and study time are based on the model by Zhang. The model takes account of learning by education in modeling human capital accumulation. We simulate the model to demonstrate the existence of equilibrium points and motion of the national economy. We also conduct a comparative dynamic analysis in regard to changes in discrimination in the education sector, women’s propensity to stay at home, women’s propensity to receive education, women’s knowledge utilization efficiency, and the propensity to save.
{"title":"Gender Discrimination, Education and Economic Growth in a Generalized Uzawa-Lucas Two-Sector Model","authors":"Wei-bin Zhang","doi":"10.2478/tjeb-2014-0001","DOIUrl":"https://doi.org/10.2478/tjeb-2014-0001","url":null,"abstract":"Abstract This paper is mainly concerned with relationships between economic growth and gender discrimination in labor markets and education. Although discrimination in different fields has well been addresses and modelled in the economic literature, there are only a few growth models with endogenous wealth and human capital accumulation, gender time distribution between work, leisure and education under gender (positive or negative) discrimination. The production and economic structures, human capital accumulation are based on the Uzawa-Lucas model, while the utility function and gender division of labor, leisure time and study time are based on the model by Zhang. The model takes account of learning by education in modeling human capital accumulation. We simulate the model to demonstrate the existence of equilibrium points and motion of the national economy. We also conduct a comparative dynamic analysis in regard to changes in discrimination in the education sector, women’s propensity to stay at home, women’s propensity to receive education, women’s knowledge utilization efficiency, and the propensity to save.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"1 - 34"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68922041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The paper examines the long run and short run relationships between inflation and the financial sector development in Nigeria over the period between 1970 and 2012. Three variables, namely; broad definition of money as ratio of GDP, quasi money as share of GDP and credit to private sector as share of GDP, were used to proxy financial sector development. Our findings suggest that inflation presented deleterious effects on financial development over the study period. The main implication of the results is that poor macroeconomic performance has deleterious effects to financial development - a variable that is important for affecting economic growth and income inequality. Moreover, we observed a negative effect of the measures of financial development on growth, suggesting that impact of inflation on the economic growth passes through financial sector. Therefore, low and stable prices, is a necessary first step to achieving a deeper and more active financial sector that will enhance growth as predicted by Schumpeter.
{"title":"Inflation and Financial Sector Performance: The Case of Nigeria","authors":"R. S. Alimi","doi":"10.2478/tjeb-2014-0003","DOIUrl":"https://doi.org/10.2478/tjeb-2014-0003","url":null,"abstract":"Abstract The paper examines the long run and short run relationships between inflation and the financial sector development in Nigeria over the period between 1970 and 2012. Three variables, namely; broad definition of money as ratio of GDP, quasi money as share of GDP and credit to private sector as share of GDP, were used to proxy financial sector development. Our findings suggest that inflation presented deleterious effects on financial development over the study period. The main implication of the results is that poor macroeconomic performance has deleterious effects to financial development - a variable that is important for affecting economic growth and income inequality. Moreover, we observed a negative effect of the measures of financial development on growth, suggesting that impact of inflation on the economic growth passes through financial sector. Therefore, low and stable prices, is a necessary first step to achieving a deeper and more active financial sector that will enhance growth as predicted by Schumpeter.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"55 - 69"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68922062","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The aim of this paper is to study the process of symbolic value creation of human capital-intensive firms. Human capital is a critical resource for firms’ activities. Nevertheless, this dimension is often obscured by industrial economists. In the light of critical resource theory, we analyze how taking into account the inalienable and inimitable nature of specific human capital entails a reconsideration of the role and boundaries of the firm. We show that the firm seeks to coordinate the specialization of its key partners within the frame of its economic boundaries to ensure the long-term optimization of its potential of value. Therefore, the value of the firm depends on all the resources that the firm coordinates. Then we focus on the way HCIF can create different values. We suggest that the firm builds its competitive advantage on different forms of values, in particular the symbolic value incorporated in human capital. Finally, on the basis of these considerations, we identify the wealth included in the critical resources of the firm and to bring to light the process of symbolic value creation associated with it. We suggest that the firm is the value creating entity and the customer both recognizes and derives the value created from whatever it is that the firm provides. We propose a definition of this value and a schema of its creation process based on management works attempts. We conclude by proposing paths of research that could fruitfully be explored to further develop this new subject.
{"title":"Human Capital-Intensive Firms and Symbolic Value Creation","authors":"Cécile Cézanne, Laurence Saglietto","doi":"10.2478/tjeb-2014-0004","DOIUrl":"https://doi.org/10.2478/tjeb-2014-0004","url":null,"abstract":"Abstract The aim of this paper is to study the process of symbolic value creation of human capital-intensive firms. Human capital is a critical resource for firms’ activities. Nevertheless, this dimension is often obscured by industrial economists. In the light of critical resource theory, we analyze how taking into account the inalienable and inimitable nature of specific human capital entails a reconsideration of the role and boundaries of the firm. We show that the firm seeks to coordinate the specialization of its key partners within the frame of its economic boundaries to ensure the long-term optimization of its potential of value. Therefore, the value of the firm depends on all the resources that the firm coordinates. Then we focus on the way HCIF can create different values. We suggest that the firm builds its competitive advantage on different forms of values, in particular the symbolic value incorporated in human capital. Finally, on the basis of these considerations, we identify the wealth included in the critical resources of the firm and to bring to light the process of symbolic value creation associated with it. We suggest that the firm is the value creating entity and the customer both recognizes and derives the value created from whatever it is that the firm provides. We propose a definition of this value and a schema of its creation process based on management works attempts. We conclude by proposing paths of research that could fruitfully be explored to further develop this new subject.","PeriodicalId":30596,"journal":{"name":"Timisoara Journal of Economics and Business","volume":"7 1","pages":"70 - 88"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68922073","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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