De La Salle University - Manila

Research Themes

Five Key Research Themes

The Institute will focus on five key research themes, namely: (1) Shared Partnership between Labor and Management; (2) Decentralized Governance; (3) Family Business and Enterprise Development; (4) Networks and Production Clusters; and (5) Openness, Structural Reforms and Sustainable Development.

I.Shared Partnership between Labor and Management

This theme has the perspective that Filipino management and workers compete against foreign (e.g, Thai, Indonesian, Malaysian, Chinese) management and workers, rather than compete against themselves. Thus, the importance of shared partnership between labor and management, one that is supported by a facilitative government. The shared-partnership ethos translates into a stronger and more harmonious industrial relations environment that can help facilitate the needed organizational and sectoral changes in firms and industries in the face of increased challenges from globalization. Underpinning the shared-partnership ethos is that properly motivated Filipino workers can be the foundation of international competitiveness of Filipino firms and industries. The key question: How can we foster the ethos of shared partnership to help improve productivity, efficiency, and workers' welfare? The Institute's research activities under this theme are the round table discussions on labor and management relations undertaken together with the Konrad Adenauer Foundation (KAF). The Institute hopes to have a continuing relationship with KAF, focusing primarily in this area. A research project being developed by the Institute for (hopefully) KAF funding is the compilation of case studies of corporate adjustments and the role of labor-management relations in the success or failure of such adjustments. An example of such success story is the case of Concepcion Industries, Inc., which has succeeded in transforming itself from a domestic-oriented air conditioner firm to a world-class exporter of air conditioners (Carrier and, in the near future, Toshiba) in the Asia Pacific region.

II.Decentralized Governance

Improved governance has become a popular call in order to generate more investments into the country. The focus of this theme is improved decentralized governance. This is because location decisions of firms and the possibilities of capturing economies from production networks necessitate better governance at the sub-national level. The presumption here is that effective industry clustering, which must necessarily have a locational dimension, is an important aspect of the country's adjustment for productivity, efficiency and competitiveness in the face of increased international competition. Efficient and effective local governments can be catalysts for strengthening the country's capacity to adapt to the challenges of openness and structural adjustment. Effective decentralized governance is not only for improved investment climate and efficient adjustment to economic openness. It is, in its own right, critical to ensuring that government programs best serve the country's people, by giving the latter more voice in the design and implementation of government programs. The Institute's anchor research project in this area is the Community Based Monitoring System (CBMS) Network. An effective CBMS can improve local budgeting, project design and implementation and deepen participation of the populace in local governance. The possible complementary research project would be case studies on local government's role in industrial adjustment and clustering.

III.Family Business and Enterprise Development Family businesses

Family businesses are very important to the nation's economy. While there are no official figures of the number of family businesses in the Philippines, it is acknowledged that they constitute a significant percentage of all businesses in the country. Since family businesses are the backbone of the economy, how can we make them more efficient and more competitive in the era of globalization? How can we make them more robust organizations so that they serve as the foundation for a dynamic economy? To answer these questions, it is imperative to understand the various issues facing family businesses, including issues concerning succession, family dynamics, and professionalization, among others. The priority of the newly established Family Business Studies Program of the Institute is the creation of a database of family businesses in the Philippines. This will hopefully pave the way for determining the characteristics of this type of business enterprise, enabling scholars to conduct more in-depth research dealing with the peculiar concerns of family businesses in the country.

IV.Networks and Production Clusters

A key ingredient in the economic dynamism, competitiveness and flexibility of the successful East Asian countries is the development of manufacturing and service clusters. The manufacturing clusters are mainly low-technology clusters and with a few high-technology clusters. The benefits of clusters are known: ".ready, flexible supply of labor, availability of specialized producers of goods and services, technological spillovers, business alliances and organizations, greater market penetration and distribution of infrastructure cost among a number of firms" (Yusuf, et. Al., 2003, p.232). The Philippines has a successful cluster in furniture making around Cebu City, and a stagnating cluster in shoe manufacturing around Marikina. The policy challenge is how to encourage the development of more of them in the country. Toward this, there is a need for greater understanding of the factors behind the growth and failures of clusters in the country as well as bottlenecks that hinder their development.

V.Openness, Sectoral Adjustment, Institutional Reforms and Sustainable Development

The theme is decidedly a broad one. It encompasses three foci of interest. The first one is the evaluation of the impact of developments in the international economy on the local economy, industry and business. The second related focus is on national level, largely sectoral structural adjustment and institutional reforms for sustained robust growth and greater equity in the face of globalization. The third focus addresses the concerns of better utilization of natural resources and lower pollution from economic activities. A number of largely demand-oriented researches of the Institute are under this theme. They highlight one of the overriding concerns of the Institute; that is, to help in the reform process in the country. Thus, for example, in agriculture, this involves a special concern for improving the research, development and extension system as well as the improvement of the quality of services of the agricultural bureaucracy. In addition, the key issue of improving the logistics system or agricultural distribution system in order to integrate the Philippine market. In education, the CHED Cost of Financing Higher Educational Institutions project is meant to catalyze the national budget reform for state universities and colleges (SUCs). The Institute's thrust on environmental concerns has just started with the involvement of three members of the Institute in a joint project with the Asian Institute of Management on environmental indicators for competitiveness of small and medium enterprises. This new project is funded by NEDA and UNDP. The project will utilize an innovative and comprehensive environmental indicator monitoring system for enterprises developed by German experts. The Institute's PASCN project on a macro-micro analysis of the impact and opportunities of financial liberalization and integration is along the first focus on the impact of international economic developments on the Philippine economy, industry and business. There are two areas under this focus that may require special attention in the next few years; namely, globalization and social security and the implications of the Doha round of negotiations in the World Trade Organization.