List of issues

Contents of issue 4/2005

Jacek Miroński - The Role of the Agency Theory in the Theory of the Firm, abstract, article

Andrzej Cieślik - The Influence of Multinational Companies on the Host Country’s Labor Market, abstract, article

Hanna Mizgalska - The Use of the Internet in Managing Small and Medium-Sized Enterprises in the Wielkopolska Region, abstract, article

Anna Ząbkowicz - Structural Adjustment Policy in Japan, abstract, article


Arkadiusz M. Kowalski - The Regional Policy of the European Union in Ireland, abstract, article


The 80th Birthday of Prof. Zdzisław Sadowski - Tadeusz Smuga

Book Review: Elżbieta Duliniec, Marketing międzynarodowy (International Marketing), PWE, Warsaw 2004, 300 pp. - reviewed by Marcin K. Nowakowski, Marianna Strzyżewska

The Polish Higher Education Market: Competition or Partnership - Stanisław Macioł

Jacek Miroński - The Role of the Agency Theory in the Theory of the Firm

The article is dedicated to the role of the agency theory in the development of an interdisciplinary theory of the firm. The agency theory is presented as a model that may incorporate findings from other disciplines. An expanded agency theory could contribute to a holistic theory of the firm, yet it is uncertain if such a theory could be developed at all. The first part of the article offers a comprehensive description of the agency theory, its assumptions and conclusions. The author analyzes the relationship between a principal and an agent of the principal. He also describes the sources of asymmetry of information-in the form of moral hazard and adverse selection-along with a presentation of monitoring strategies and incentives used by principals. Finally, the limitations of the agency theory are discussed. The second part of the paper deals with the challenge of expanding the agency theory to include a theory of power in the firm. This approach is applied to analyze power relations in the agency relationship. The sources of the principal’s and the agent’s powers are traced in terms of their development over time. The role of ideology in the agency relationship is also considered. The article concludes with a summary of the results of combining the agency theory with the theory of power.

Article: PDF

Andrzej Cieślik - The Influence of Multinational Companies on the Host Country’s Labor Market

The article analyses the effects of multinational business operations in a host economy under both rigid and flexible real wages. The analysis covers two sectors, domestic and foreign, and features three factors of production in a small open economy: labor, capital and knowledge. The analysis takes into account three effects of multinational operations: transfer of foreign knowledge and related technological changes, diffusion of know-how among local entrepreneurs and the inflow of foreign capital. Under both rigid and flexible wages, the transfer of foreign knowledge to the international business sector leads to its increased productivity and greater use of factors of production. This results in higher production in foreign companies at the expense of limited employment and production in local companies. On the other hand, the diffusion of foreign knowledge in the host economy and the influx of foreign capital counteract a reduced share of the domestic sector. With rigid real wages, the use of labor in the domestic sector, overall employment and national income either decrease or remain unchanged. In some cases, they grow depending on the effects of knowledge diffusion and foreign capital inflow. Labor benefits remain unchanged, while capital benefits either grow or continue at the same level. Under flexible real wages, the use of labor in the domestic sector decreases, but its overall use in the economy does not change. It always remains at a level equivalent to full employment. National income never shrinks in this case. It depends on the effectiveness of foreign knowledge diffusion among local entrepreneurs. Changes in labor and capital benefits depend on differences in the use of capital per unit of labor between the domestic and international sectors. They also depend on the intensity of foreign knowledge diffusion in the host economy and the inflow of foreign capital.

Article: PDF

Hanna Mizgalska - The Use of the Internet in Managing Small and Medium-Sized Enterprises in the Wielkopolska Region

The subject of the paper is the use of computers and Internet services by small and medium-sized enterprises in Wielkopolska. The author examines the relationship between Internet use and the size of the company, its level of innovation and the educational standards and gender of the company manager/owner. The author identifies factors unfavorable to e-business and recommends moves to accelerate the development of modern information technology in the SME sector. The paper discusses the findings of a 2002 survey among 106 SMEs in Wielkopolska. To show the state of computerization and Internet use by Polish SMEs, the author presents the results of a Demoskop poll commissioned by the Polish Foundation for the Promotion and Development of Small and Medium-Sized Enterprises. The surveys indicate that SME computerization and Internet use in Wielkopolska are at a relatively high level compared with other regions of Poland. At the same time, computerization and Internet use grow with the size of the company and the educational standards of its owner/manager. Moreover, companies well established on the market tend to use computers and the Internet more often than those with a short market presence. Companies run by men display a similar level of computerization to those run by women. Finally, companies using the Internet are generally characterized by a higher level of innovation.

Article: PDF

Anna Ząbkowicz - Structural Adjustment Policy in Japan

The article, inspired by the ideas of the “public choice” movement, refers to the experiences of Japan from the late 1950s until the early ‘70s. The author describes a network of natural and institutional limitations that contributed to the unprecedented socioeconomic advancement of this country in the first decades after World War II. The article stresses the importance of institutions regulating the relationship between the economic administration and large businesses. In Japan, these contacts contributed to an impressive increase in production, making the country a standout example of constructive cooperation between the government and business. Cooperation between the business community and the government administration was promoted by the state’s control of foreign currency and savings deposits after the war. Communication between key economic ministries and business executives took place through a well-developed system of official institutions including mediation and various informal procedures, with a limited use of legal instruments. This helped prevent widespread corruption and state intervention, which usually spoil the market mechanism and negatively affect the allocation of resources. Limitations imposed on the behavior of Japanese businesspeople and officials by personal ties, shared values and responsibility also played an important role.

Article: PDF

Arkadiusz M. Kowalski - The Regional Policy of the European Union in Ireland

Until the early 1990s, Ireland was one of the least developed member states of the European Union. It was beset with major structural problems, high unemployment, low exports, a huge budget deficit and foreign debt. In the second half of the decade, the country’s macroeconomic indicators improved markedly and Ireland became one of the fastest growing economies in the world. This was due to a combination of several factors, including the country’s skillful use of EU funds and pro-growth government policy, which encouraged increased business activity and foreign direct investment. The main goal of the EU’s regional policy in Ireland was external convergence based on equalizing economic growth and incomes between Ireland and the rest of the EU. In connection with that approach, the economic boom deepened socioeconomic differences between individual regions of the country.
Today, Irish politicians face two basic priorities. They are hard pressed to maintain their country’s fast economic growth of the late ‘90s and bring about greater convergence in regional incomes. In connection with this, experts recommend that the main goal of regional policy in Ireland should be to improve the competitiveness of regional economies, and thus keep the country on a sustainable growth path.

Article: PDF

Copyright © Szkoła Główna Handlowa w Warszawie 1931-2018 ISSN 2300-5238