nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2007‒04‒21
ten papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Ownership concentration & firm performance: Evidence from an emerging market By Irena Grosfeld
  2. An Ascending Auction for Interdependent Values: Uniqueness and Robustness to Strategic Uncertainty By Bergemann Dirk; Morris Stephen
  3. DOWNSTREAM MERGERS AND UPSTREAM INVESTMENT By Ramón Faulí-Oller; Joel Sandonís; Juana Santamaria-Garcia
  4. Source of output growth in small and medium scale enterprises in Malaysia By Jajri, Idris; Ismail, Rahmah
  5. Sequencing strategies in large, competitive, ascending price automobile auctions: An experimental examination By Grether, David M.; Plott, Charles R.
  6. Competition Between Informed Venture Capitalists for the Financing of Entrepreneurs By CASAMATTA, Catherine; HARITCHABALET, Carole
  7. Alternative Strategies for Fighting Unemployment: Lessons from the European Experience By SAINT-PAUL, Gilles
  8. Logistics Systems from the Regional Perspective By Enno Lend
  9. The Innovative Performance of Foreign-owned Enterprises in Small Open Economies By Dachs, Bernhard; Ebersberger, Bernd; Lööf, Hans
  10. Economic Recognition of Innovation By Rao, Balkrishna

  1. By: Irena Grosfeld
    Abstract: The initial view of the advantages of ownership concentration in joint stock companies was determined by the concern about the opportunistic managerial behavior. The growing importance of knowledge and human capital in the operation of firms shifts the focus of concern: excessive ownership concentration may stifle managerial initiative. This may be particularly true, and the results obtained in this paper support this hypothesis, in firms with high share of knowledge related activities. I explore the determinants of ownership concentration and the relationship between ownership structure and firm value in the context of a transition economy, i.e. an economy undergoing important changes in its legal and regulatory framework, in macroeconomic policy and most of all, in its property rights allocation. I focus on all non-financial companies traded on the Warsaw Stock Exchange since its inception in 1991 and up to 2003. We can observe that ownership of companies becomes more dispersed with the number of years of listing. The results reported in this paper suggest that firm adjust their ownership structure to firm specific characteristics and that firms belonging to the sector of high technology tend to have lower ownership concentration. However, the positive impact of ownership concentration on firm value detected in OLS regressions becomes even stronger when we control for the endogeneity of ownership.
    Keywords: Ownership structure, corporate governance, firm behaviour, uncertainty, knowledge economy
    JEL: D21 G32 P2 P34
    Date: 2006–06–01
  2. By: Bergemann Dirk; Morris Stephen
    Date: 2007–04–13
  3. By: Ramón Faulí-Oller (Universidad de Alicante); Joel Sandonís (Universidad de Alicante); Juana Santamaria-Garcia (Universidad de Alicante)
    Abstract: In this paper, we show that downstream mergers increase the incentives of an up-stream firm to invest in cost-reducing R&D. The upstream firm revenues increase with industry profits, which in turn increase with concentration downstream and this explains the positive link between concentration and investment. This effect is so important that it outweights the negative effect on prices due to lower competition. Therefore, in our context, horizontal mergers are pro-competitive.
    Keywords: downstream mergers, upstream innovation, competition
    Date: 2007–04
  4. By: Jajri, Idris; Ismail, Rahmah
    Abstract: Small and medium scale enterprises (SMEs) play an important role in the Malaysian industrial development. SMEs comprise of more than 90 per cent of the total manufacturing establishments, contributing about 40 per cent of the total employments and 30 per cent of the total fixed assets in this sector. However, SMEs’ value added is very much lower than that of the large scale. A low productivity of physical inputs or factors efficiency may be attributed to low level of value added. In general the benefit gained from technological advancement and human resource development varies for different size and types of industry. Consequently, this leads to productivity differences of their physical inputs and quality of inputs. This paper aims to address this issue using data from the Manufacturing Industries Survey conducted by the Department of Statistics of Malaysia. The analysis will look at the source of output growth in different types of SMEs sub-industries.
    Keywords: Growth; total factor productivity; manufacturing sector
    JEL: O30
    Date: 2007–01
  5. By: Grether, David M.; Plott, Charles R.
  6. By: CASAMATTA, Catherine; HARITCHABALET, Carole
    JEL: G2 D8 G3
    Date: 2006–11
  7. By: SAINT-PAUL, Gilles
    Date: 2007
  8. By: Enno Lend (Tallinn University of Technology)
    Abstract: Regional development depends on the complex approach to the business environment, where the logistics system can either promote or restrict the economic development at the same time. Logistics and transport system can simultaneously be a promotional factor of the innovation in the regions and it can be itself the subject to technological and process innovation as well. The logistics system of the islands in Western Estonia is an integral business environment re-integrating institutions with particular functions into a coherent entity reacting flexibly to the changes on the market. The main goals of these entities is to ensure time and spatial profitability of the goods and to increase supplementary value and customer satisfaction. The interaction between the economic development and transportation is quite complex. Transportation improvements may result in the growth in the other sectors, ultimately leading to economic growth, but transportation improvements can also have a negative impact. The aim of the present article is to provide a survey of the regional economic considerations and accessibility factors, as well as an empirical case study involving specific Estonian islands. The transport connections between the island and the mainland play a significant role in the sustainable development of the economies on Saaremaa and Hiiumaa. In this paper I would also like to underline the importance of the role played by technology and the personnel.
    Keywords: logistics system, transport connection, accessibility, mobility, interaction.
    JEL: L91 R40
    Date: 2006
  9. By: Dachs, Bernhard (Austrian Research Centers, Vienna, Austria); Ebersberger, Bernd (Management Center Innsbruck, Innsbruck, Austria); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises
    Keywords: Austria; Denmark; Finland; Norway; Sweden; Innovation; Multinational Enterprises; Foreign-owned Enterprises; CIS
    JEL: F23 O31
    Date: 2007–04–16
  10. By: Rao, Balkrishna
    Abstract: Globalization has benefited the economies of member countries of the Organization for Economic Cooperation and Development (OECD) by helping their businesses stay profitable through cost-effective outsourcing of mostly garden-variety tasks and some knowledge-based activities. With time, the latter will account for the lion’s share of work outsourced and emerging export houses will also tend to cater more to their own domestic markets because of their expanding infrastructure and growing manpower possessing advanced skills. This will result in a leveled playing field coaxing developed countries to adopt widespread innovations to maintain their high perch in the economic pecking order. Such large-scale creativity can be managed better if it could be gauged with an appropriate measure. This work propounds a new economic measure called the Gross Domestic Innovation (GDI) to quantify innovations in OECD countries. It will supplement universal measures such as the Gross Domestic Product (GDP), productivity and numbers concerning employment. Apart from the methodology for its estimation, the impact of GDI on the various facets of a vibrant economy is discussed and inter alia, the role of GDI in fighting inflation and alleviating the negative influences of globalization is stressed. Also, a tentative analysis on the economies of U.S., Japan, Germany and China is presented to illustrate the concept.
    Keywords: Innovation; GDI; GDP; OECD; Globalization; Patents
    JEL: O38 O32 O34
    Date: 2006–03

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