This paper presents a simple profitability based decision model to show how synergistic gains generated by the joint adoption of complementary innovations may influence the firm’s adoption decision. For this purpose a weighted index of intra-firm diffusion is built to investigate empirically...

In this paper we explore the state of adoption of four sets of management practices in the UK. A simple decision model illustrates how the existence of synergistic gains can influence their adoption decision, while an index of intra firm diffusion summarises the intensity of their use and the...

Purpose- This paper aims to contribute to the debate on the drivers of the productivity gap that exists between the UK and its major international competitors. Design/methodology/approach- From the macro perspective the paper explores the quantitative evidence on the productivity differentials...

This paper studies whether the monotonicity condition of the investment-cash flow sensitivity is satisfied empirically. We show that if this condition holds, then the point of sample separation does not affect the monotonic relationship between the sensitivities of any two complementary classes...

We model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large panel of Italian firms. Empirical results show that...