nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2006‒01‒29
twenty-two papers chosen by
Bernardo Batiz-Lazo
Bristol Business School

  1. Poland´s Enterprise Environment - A Polish View By Ewa Balcerowicz
  2. Clubs and Standards: The Role of Industry Consortia in Standardization of Wirelelss Telecommunications By Aija Leiponen
  3. The Role of Advertising in Commercial Banking By Örs, Evren
  4. The Circulation of Ideas: Firms Versus Markets By Hellmann, Thomas F; Perotti, Enrico C
  5. Impact de l’appréciation de l’euro sur le secteur du tourisme By Guillaume Chevillon; Xavier Timbeau
  6. When Do More Patents Reduce R&D? By Robert M. Hunt
  7. Top Research Productivity and its Persistence By Kelchtermans, Stijn; Veugelers, Reinhilde
  8. Managerial satisfaction with subsidiary performance; the influence of the parent MNE\'s capabilities and the subsidiary\'s environment By Dikova, Desislava; Witteloostuijn, Arjen van
  9. Speculative Contracts By Eliaz, Kfir; Spiegler, Ran
  10. Sudden Deaths: Taking Stock of Political Connections By Faccio, Mara; Parsley, David
  11. The Economic Impact of the Sterling and Francine Clark Art Institute By Stanley McMillen; Kathryn Parr; Xiumei Song
  12. Market Structure and Competitive Conditions in the Arab GCC Banking System By Al-Muharrami, Saeed; Matthews, Kent; Khabari, Yusuf
  13. A Model of Partial Regulation in the Maritime Ferry Industry By Angela S. Bergantino; Etienne Billette de Villemeur; Annalisa Vinella
  14. Intellectual Capital and Maintance of Work Ability - The Wellbeing Perspective. By Tomi Hussi
  15. The Provision and Effects of Company Training. A brief review of the literature By Rita Asplund
  16. The Global Dispersion of Innovative Activities - The Case of Finnish Multinationals By Christopher Palmberg; Mika Pajarinen
  17. The Finnish Telecom Sector Facing Next Generation Standards - Indigenous Capabilities Versus R&D Alliances By Christopher Palmberg; Olli Martikainen
  18. The Innovation System and Business Environment of Northwest Russia By Sergey Boltramovich; Pavel Filippov; Hannu Hernesniemi
  19. Determinants of Internationalisation through Strategic Alliances - Insights Based on New Data on Large Finnish Firms By Christopher Palmberg; Mika Pajarinen
  20. Russian Infrastructure Clusters : A Preliminary Study By Sergey Boltramovich; Vladislav Yurkovsky; Pavel Filippov; Hannu Hernesniemi
  21. Offshoring Software Development - Case of Indian Firms in Finland By Jyrki Ali-Yrkkö; Monika Jain
  22. Alliance Capitalism and the Internationalisation of Finnish Firms By Christopher Palmberg; Mika Pajarinen

  1. By: Ewa Balcerowicz
    Abstract: The paper briefly presents environment for business in Poland as of the end of the year 2005. A few comments, however, on its evolution in the course of the transition period are also made. The paper broaches administrative, legal and financial requirements to start and run business activities by both natural and legal persons. In addition, it presents government support schemes for investors. A brief description of the scope of the grey economy and corruption completes the picture of the business environment. The topic has been approached from the foreign investor’s perspective. Although foreign in-vestors are subject to the same laws as domestic (Polish) ones, in a limited number of cases they are treated differently than the latter. These cases, and specifically land purchase and employment of foreign citizens, are reviewed.
    Keywords: business climate, industrial policy, state aid, grey economy, Poland
    Date: 2006–01–10
  2. By: Aija Leiponen
    Keywords: standard setting, wireless telecommunication, cooperative arrangements
    Date: 2005–12–13
  3. By: Örs, Evren
    Abstract: I use a new Call Reports data item to revisit the role of advertising in US commercial banking. I examine how banks' advertising varies with the deposit market structure and whether bank profitability is influenced by advertising. My analysis addresses the endogeneity of market structure and advertising variables using instrumental variables. I find that banks advertise more with increasing market concentration, whereas banks with larger market shares and size advertise less. I also find that advertising has a positive and economically significant impact on bank profitability. These results suggest that advertising is an important aspect of bank competition.
    Keywords: depository institutions; market structure; non-price competition
    JEL: D40 G21 M37
    Date: 2006–01
  4. By: Hellmann, Thomas F; Perotti, Enrico C
    Abstract: We describe new ideas as incomplete concepts for which the innovator needs feedback from agents with complementary skills. Once shared, ideas may be stolen. We compare how different contractual environments support invention and implementation. Markets, as open exchange systems, are good for circulation and thus elaboration, but may fail to reward idea generation. Firms, as controlled idea exchange systems, can reward idea generation but can do so only by restricting their circulation. This identifies a basic trade-off between protecting the rights of invention and the best implementation of ideas. An environment that allows ideas to cross firm boundaries enhances the rate of innovation and creates a symbiotic relationship between markets and firms.
    Keywords: firms; ideas; innovation
    JEL: D83 L22 M13 O31
    Date: 2006–01
  5. By: Guillaume Chevillon (Observatoire Français des Conjonctures Économiques); Xavier Timbeau (Observatoire Français des Conjonctures Économiques)
    Date: 2005
  6. By: Robert M. Hunt
    Date: 2006–01–24
  7. By: Kelchtermans, Stijn; Veugelers, Reinhilde
    Abstract: The paper contributes to the debate on cumulative advantage effects in academic research by examining top performance in research and its persistence over time, using a panel dataset comprising the publications of biomedical and exact scientists at the KU Leuven in the period 1992-2001. We study the selection of researchers into productivity categories and analyse how they switch between these categories over time. About 25% achieves top performance at least once, while 5% is persistently top. Analysing the hazard to first and subsequent top performance shows strong support for an accumulative process. Rank, gender, hierarchical position and past performance are highly significant explanatory factors.
    Keywords: economics of science; hazard models; research productivity
    JEL: J24 L31 O31 O32
    Date: 2006–01
  8. By: Dikova, Desislava; Witteloostuijn, Arjen van (Groningen University)
    Abstract: Multinational enterprise performance is one of the most researched topics in the strategic management literature over the last thirty years. Despite the proliferation of studies, the dispute over the relation between firms? international investment activities and corporate performance has not yet reached a consensus. This paper?s contribution is threefold. First, we focus on entry by West European multinational enterprises into Central and East European countries. Second, we develop a multi-theory argument, combining insights from transaction cost, new institutional, behavioral, resource-based and international strategy theories. Third, we estimate the determinants of managerial satisfaction with subsidiary performance with questionnaire data for a sample of 198 subsidiaries.
    Date: 2005
  9. By: Eliaz, Kfir; Spiegler, Ran
    Abstract: We propose to view action-contingent contracts as bets, motivated by different prior beliefs between the contracting parties (rather than, say, as an instrument for overcoming moral hazard problems). Such differences in prior beliefs may arise from inherent biases such as over-optimism. Menus of contingent contracts that arise in principal-agent relationships are thus interpreted as a consequence of the principal's attempt to screen the agent's prior belief. Thus, an employer may offer his worker to choose between fixed-wage and profit-sharing schemes, in order to screen the worker's degree of optimism. We present a model of bilateral contracting which captures these ideas, characterize the optimal menu and apply it to a number of economic settings.
    Keywords: menus; non-common priors; speculative trade
    JEL: D42 D82 L12
    Date: 2006–01
  10. By: Faccio, Mara; Parsley, David
    Abstract: Many firms voluntarily incur the costs of attempting to influence politicians. However, estimates of the value of political connections have been made in only a few cases. We propose a new approach to valuing political ties that builds on these previous studies. We consider connected to a politician all companies headquartered in the politician's hometown, and use an event study approach to value these ties at their unexpected termination. Analysis of a large number of sudden deaths from around the world since 1973, yields a 2% decline in market value of connected companies. Our stronger results are likely due to the lack of a clear event in earlier studies, and lead us to conclude that previous estimates understate the value of political ties.
    Keywords: political connections; sudden deaths
    JEL: G3 H8
    Date: 2006–01
  11. By: Stanley McMillen; Kathryn Parr; Xiumei Song
    Abstract: This analysis of the Clark contributes to the collective effort to understand the economic impact of the arts in the Berkshires, and raises national consciousness about the economic contribution that arts organizations make to their communities.
    Keywords: art museum, economic impact, cultural amenity
    JEL: Z11
    Date: 2005–10
  12. By: Al-Muharrami, Saeed; Matthews, Kent (Cardiff Business School); Khabari, Yusuf
    Abstract: This paper investigates the market structure of Arab GCC banking industry during the years of 1993 to 2002 using the most frequently applied measures of concentration k-bank concentration ratio (CRk) and Herfindahl-Hirschman Index (HHI) and evaluates the monopoly power of banks over the ten years period using the "H statistic" by Panzar and Rosse. The results show that Kuwait, Saudi Arabia and UAE have moderately concentrated markets and are moving to less concentrated positions. The measures of concentration also show that Qatar, Bahrain and Oman are highly concentrated markets. The Panzar-Rosse H-statistics suggest that banks in Kuwait, Saudi Arabia and the UAE operate under perfect competition; banks in Bahrain and Qatar operate under conditions of monopolistic competition; and we are unable to reject monopolistic competition for the banking market in Oman.
    Keywords: GCC countries; Concentration; Market structure; Competition; Panzar-Rosse model; k-bank concentration ratio (CR<i>k</i>) and Herfindahl-Hirschman Index (HHI)
    JEL: G21 L1 D40
    Date: 2006–01
  13. By: Angela S. Bergantino (University of Bari, Department of Economics, Via C. Rosalba, 53, 70124 Bari (Italy)); Etienne Billette de Villemeur (University of Toulouse, IDEI and GREMAQ, Manufacture des Tabacs, Aile Jean-Jacques Laffont); Annalisa Vinella (University of Toulouse, GREMAQ, Manufacture des Tabacs, Aile Jean-Jacques Laffont)
    Abstract: In this paper, we study how maritime ferry industries should be regulated. This is a fundamental issue in so far as maritime transport between islands and mainland is a service of general interest. We argue that the policy design crucially depends on the goals the collectivity pursues (pure e¢ ciency, fairness) as well as on the relevant industry structure (monopoly, oligopoly). We show that the regulator needs to prevent ine¢ cient crowding out, whenever room exists for access of new providers to former monopolies. By properly allocating tra¢ c across shippers, the regulated firm's budget constraint can then be relaxed. We subsequently shed light on the implications of adopting the territorial continuity principle to boost social fairness. We establish that the incumbent's public service obligations dump the entrant's incentives to provide connections in the low season; conversely, soft competition encourages the entrant to operate in the high season, when it pockets a net rent. As to customers, our model predicts that the islanders, whose consumption is partly subsidized by the non-residents, patronize the incumbent and that liberalization directly benefits the non-residents who switch to the entrant.
    Keywords: Maritime transport; Price and frequency; Partial regulation; Territorial
    JEL: L51 L92 R48
  14. By: Tomi Hussi
    Date: 2004–02–24
  15. By: Rita Asplund
    JEL: J24 J31 M53
    Date: 2004–05–18
  16. By: Christopher Palmberg; Mika Pajarinen
    Date: 2004–06–11
  17. By: Christopher Palmberg; Olli Martikainen
    Keywords: standards, Finnish telecom, diversification, R&D alliances
    Date: 2004–11–18
  18. By: Sergey Boltramovich; Pavel Filippov; Hannu Hernesniemi
    Keywords: Northwest Russia, innovation system, business environment, international cooperation
    Date: 2004–12–08
  19. By: Christopher Palmberg; Mika Pajarinen
    Keywords: internationalisation, large Finnish firms, uncertainty, strategic alliances
    Date: 2005–01–28
  20. By: Sergey Boltramovich; Vladislav Yurkovsky; Pavel Filippov; Hannu Hernesniemi
    Keywords: Russia, infrastructure, cluster, energy, ICT, logistics, construction
    Date: 2005–04–04
  21. By: Jyrki Ali-Yrkkö; Monika Jain
    Keywords: software, R&D, research and development, offshoring, outsourcing
    Date: 2005–03–08
  22. By: Christopher Palmberg; Mika Pajarinen
    Keywords: strategic alliances, internationalisation, Finnish firms
    Date: 2005–11–01

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