This paper provides the first in-depth study of the organization of knowledge in multinational firms. The paper develops a theoretical model that studies how firms optimally split knowledge between their headquarters and their production plants if communication costs impede the access of...

Hidden Champions (HCs) are firms unknown to the wider public, but global leaders in the niche markets they serve. This paper looks at distinctive features of these firms, focusing on their dynamic capabilities. Employing a unique data base on German firms, we identify a representative sample of...

The influence of environmental policy on innovative behaviour of companies has so far received little attention in scientific discourse. Based on recent literature, the paper analyses the impact of requirements, levies, permits, liability laws, and the EC-eco- audit regulation with respect to...

This paper analyses the effects of the creation or removal of borders on firms' profits and their optimal location in an autarkic region. A firm chooses a position close to a border if a crucial degree of openness is achieved. Furthermore, the positive effect of removal of borders decreases in...

This paper contributes to the literature on early warning indicators by applying a Bayesian model averaging approach. Our analysis, based on Austrian data, is carried out in two steps: First, we construct a quarterly financial stress index (AFSI) quantifying the level of stress in the Austrian...