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on Economics of Strategic Management |
| By: | G. Buenstorf |
| Abstract: | Considerable debate surrounds the concept of entrepreneurial opportunities. This paper contributes to the discussion by bringing in concepts and findings from evolutionary economics. It makes three points. First, adopting an evolutionary market process perspective sheds new light on the nature of opportunities. Second, not only the pursuit of entrepreneurial opportunities, but also the further development of the entrepreneurial venture is dependent on subjective opportunity perception and interpretation. Third, findings on industry evolution help understand how opportunities, as well as agents’ ability and willingness to pursue them, change over time. Effects of pre-entry experience on opportunity recognition and firm performance are also discussed. |
| Keywords: | opportunities, market process, business conceptions, industry evolution, spin-offs |
| JEL: | B25 D21 M13 L10 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2006-01&r=cse |
| By: | Beck, Thorsten |
| Abstract: | Financial sector development fosters economic growth and reduces poverty by widening and broadening access to finance and allocating society ' s savings more efficiently. The author first discusses three pillars on which sound and efficient financial systems are built: macroeconomic stability and effective and reliable contractual and informational frameworks. He then describes three different approaches to government involvement in the financia l sector: the laissez-faire view, the market-failure view and the market-enabling view. Finally, the author analyzes the sequencing of financial sector reforms and discusses the benefits and challenges that emerging markets face when opening their financial systems to international capital markets. |
| Keywords: | Banks & Banking Reform,Financial Intermediation,Financial Crisis Management & Restructuring,Economic Theory & Research,Insurance & Risk Mitigation |
| Date: | 2006–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:3856&r=cse |
| By: | Stéphane Lhuillery (Chaire en Economie et Management de l'Innovation, Ecole Polytechnique Fédérale de Lausanne); Fabrice Galia (ERMES – FRE 2887 – CNRS, Université Panthéon-Assas Paris II) |
| Abstract: | This paper studies failure to R&D cooperation embracing all research ties, those carried out with research organizations (universities, laboratories and research centers) and/or industrial partners, controlling for firms’ characteristics and sample selection thanks to the French Community Innovation Survey. Using a cross-section model on 2375 innovating firms, we address two questions that are still of interest thanks to the scarcity of empirical evidences: the first one is with whom an R&D cooperation failure is more likely to occur. Secondly, is there any learning effect emerging from previous collaboration? Findings show that failures are more likely to occur when partners are customers, public research organizations or competitors. The likelihood to fail is high and similar for R&D partnerships with competitors or PROs. Further investigation suggests that foreign partners are harder to deals with than national ones and those difficulties are centered on R&D cooperation with foreign universities. Regarding learning to cooperate, our results suggest that former R&D links do not lower the probability to fail with a category of partner even if it boosts the likelihood to cooperate. A stronger appropriation regime influences the likelihood to R&D cooperate but also the probability not to fail. We also provide evidences that large firms, especially belonging to groups, and R&D intensive firms are more likely not to encounter a failure in their R&D alliances. Government support is also found negatively correlated with failure likelihood. Finally, we show that cooperation failures cannot be considered independent from the decision to collaborate in R&D. |
| Keywords: | R&D cooperation, Strategic alliances, Failure, success, universities, CIS |
| JEL: | O32 L21 C35 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:cmi:wpaper:cemi-report-2006-005&r=cse |
| By: | Oburai Prathap; Baker Michael J |
| Abstract: | The marketing discipline is evolving and so is its agenda with the advent of relationship marketing, networks and other related sub-fields. Till recently, business literature focused largely on competition, and cooperation, its counter part, has received insufficient attention. With a view to redress the situation, this research article investigates the phenomenon of customer supplier alliances and partnerships and aims to make fundamental theoretical contributions in the sub-field of business-to-business relations and cooperation. Eclectic and wide-ranging enquiry is a main research tool employed and hence the character of this research is interdisciplinary. An extensive literature review of a number of related disciplines is undertaken in order to capture the essence of relationship strategies and their implications. The ideas and alternative research processes were exposed to critical scrutiny by a few marketing scholars to increase feedback and validity of ideas. In addition, a qualitative exploratory survey was carried out in order to understand the strategic issues concerning alliances and partnerships. The research findings were combined with theoretical ideas to derive a Routines-Relationships-Resources (3Rs) model. This 3Rs model is made up of three cores that underlie all business strategies including those designed to generate competitive advantage through the route of cooperative alliances and partnerships. |
| Date: | 2006–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-02-05&r=cse |
| By: | Ralph Paprzycki |
| Abstract: | Having historically received very little foreign direct investment, Japan has experienced a substantial increase in such inflows in recent years. This paper analyzes the impact of the growing presence of foreign firms on the Japanese economy through detailed case studies on the automobile, finance, and health care industries. The wholesale & retail and the telecommunications sector are also briefly examined. The case studies show that in the sectors considered, foreign firms in one way or another are contributing to a greater degree of competition, are exposing domestic firms to global best practice, and are increasing the range of products and services available in Japan. In many of the sectors, they are also contributing to changes in industry structure and employment practices. The case studies thus illustrate that foreign direct investment - even at its present levels, which, although large by Japanese standards, are still low in international comparison - can be an important catalyst for change and hence help to reinvigorate the Japanese economy. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:hst:hstdps:d05-141&r=cse |
| By: | Rosemary J. Avery; Donald S. Kenkel; Dean R. Lillard; Alan D. Mathios |
| Abstract: | In this paper we investigate how direct-to-consumer (DTC) advertising of pharmaceutical products in affected by regulations of the Food and Drug Administration and by market conditions. We focus on a relatively under-studied segment of the pharmaceutical market -- the market for smoking cessation products. Because of their proven effectiveness, these products could be the key to meeting public health goals to reduce smoking. However, in many ways, smoking cessation products have been more heavily regulated than cigarettes. Our empirical analysis uses data on advertising expenditures and data from an archive of print advertisements. The archive includes all smoking cessation product advertisements that appeared in over 13,000 issues of 28 magazines between January 1985 and May 2002. Our study period begins shortly atfer the first nicotine replacement product was introduced, and covers the evolution of the market as new products are introduced while some of the older products move from prescription to over-the-counter (OTC) status. OTC status eases the disclosure requirements imposed on advertisements of prescription pharmaceuticals, substantially reducing the costs of a print advertisement. Our results suggest that OTC status is associated with an increase in advertising expenditures and the number and pages of magazine advertisements. A current proposal to reduce disclosure requirements on all DTC advertisements of prescription drugs could have similar effects. Our results also suggest that advertising increase with the introduction of new products and with market competition. |
| JEL: | I1 L5 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12001&r=cse |
| By: | Larry Chavis; Phillip Leslie |
| Abstract: | The French Opposition to the war in Iraq in early 2003, prompted calls for a boycott of French wine in the US. We measure the magnitude of consumers’ participation in the boycott, and look at basic evidence of who participates. Conservative estimates indicate that the boycott resulted in 26% lower weekly sales at its peak, and 13% lower sales over the six month period that we estimate the boycott lasted for. These findings suggest that business should be concerned that their actions may provoke a boycott which hurts their profits. We also find that neither political preferences or media attention are important determinants of boycott participation. |
| JEL: | L0 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11981&r=cse |
| By: | Shah, Manju Kedia; Biggs, Tyler |
| Abstract: | This paper examines the role of private support institutions in determining small and medium enterprise (SME) growth and performance in Sub-Saharan Africa (SSA). It finds that SMEs in SSA get around market failures and lack of formal institutions by creating private governance systems in the form of long-term business relationships and tight, ethnically-based, business networks. There are important links between these informal governance institutions and SME performance. Networks raise the performance of " insiders " and, in the sparse business environments of the SSA region, have attendant negative consequences for market participation of " outsiders, " such as indigenous African SMEs. This is indicated through the determinants of access to supplier credit. Policy interventions will be needed to improve the platform for relation-based governance mechanisms and to address the exclusionary effects of tight networks. |
| Keywords: | Economic Theory & Research,Banks & Banking Reform,Business in Development,Business Environment,Technology Industry |
| Date: | 2006–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:3855&r=cse |
| By: | Oburai Prathap; Baker Michael J |
| Abstract: | The marketing discipline is evolving and so is its agenda with the advent of relationship marketing, networks and other related sub-fields. Till recently, business literature focused largely on competition, and cooperation, its counter part, has received insufficient attention. With a view to redress the situation, this research article investigates the phenomenon of strategic marketing alliances, partnerships and networks, and aims to make fundamental theoretical contributions in the sub-field of business-to-business relations and cooperation. Eclectic and wide-ranging enquiry is a main research tool employed and hence the character of this research is interdisciplinary. An extensive literature review of a number of related disciplines is undertaken in order to capture the essence of cooperative strategies and implications for competitive advantage. In this paper, we examine the phenomenon of cooperation and its evolution over time, and highlight the advantages of cooperative strategies in the workplace and in economic organisation. Following an introductory section, we discuss in the second and third sections the evolution of cooperation and need for adaptation on the part entities in order to obtain favourable outcomes. Fourth section continues the discussion along the biological evolutionary lines and adds the crucial dimension of social organisation. Consequent changes that altered the ways in which societies and economies developed are captured in the fifth section. The final and concluding section is devoted to exploring avenues for building of theories that explain cooperative forms of organisation. |
| Keywords: | Business-Business Marketing, Marketing Strategy, Relationship Marketing |
| Date: | 2006–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-02-03&r=cse |
| By: | Beatriz Domínguez; Juan José Ganuza; Gerard Llobet |
| Abstract: | It is commonly argued that in recent years pharmaceutical companies have directed their R&D towards small improvements of existing compounds instead of more risky drastic innovations. In this paper we show that the proliferation of these small innovations is likely to be linked to the lack of market sensitivity of a part of the demand to changes in prices. Compared to their social contribution, small innovations are relatively more profitable than large ones because they are targeted to the smaller but more inelastic part of the demand. We also study the effect of regulatory instruments such as price ceilings, copayments and reference prices and extend the analysis to competition in research. |
| Keywords: | Health-care, pharmaceuticals, innovation |
| JEL: | I11 I18 L51 O31 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:936&r=cse |