If a product has two dimensions of quality, one observable and one not, a firm can use observable quality as a signal of unobservable quality. The correlation between consumers' valuation of high quality in each dimension is a key determinant of the feasibility of such signaling. A firm may use...

The authors reexamine the Schmalensee effect from a dynamic perspective. Schmalsensee’s argument suggesting that high quality can be signaled by high prices is based on the assumption that higher quality necessarily incurs higher production cost. In this paper, the authors argue that firms...

The objective of this study is to identify the determinants of a firm's foreign entry mode choice and the relationship between mode selection and firm performance for the specific case of R&D-a topic not yet investigated in entry mode research. Separate estimates of a Heckman selection model for...

The study aims at providing new evidence with respect to the still unresolved question, whether the innovation behaviour of firms reflects industry-specific characteristics (“technological regime approach”), or whether it is the outcome of firm-specific strategies to gaining a competitive...

This paper discusses the diversity of mechanisms which firms can deploy to link to science and how science links are associated with their innovation performance. Using a sample of Flemish firms, we show that there exists considerable heterogeneity in the type of links to science at the firm...