|
on Economics of Strategic Management |
|
Issue of 2007‒11‒24
sixteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Manuel Portugal Ferreira (Instituto Politécnico de Leiria, Portugal); Dan Li (Indiana University, USA); Yong Suk Jang (Korea University, Korea) |
| Abstract: | In this paper we develop a comprehensive model of MNEs' foreign entry strategies and theorize how and how much the entry strategy is likely to be determined in the interface between internal and external pressures for both conformity and legitimacy. We develop an adaptation argument, in contrast to a selection rationale, through which we enhance our understanding of the various facets of the institutional environment and the constraints international managers encounter in their internationalization strategies. |
| Keywords: | foreign entry strategies, adaptation, multinational firms, institutional environments |
| JEL: | M1 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:pil:wpaper:3&r=cse |
| By: | Dan Li (Indiana University, EUA); Manuel Portugal Ferreira (Instituto Politécnico de Leiria, Portugal); Fernando Serra (UNISUL Business School, Brasil) |
| Abstract: | Much theory and research that seeks to explain why and how technology transfers occur within multinational enterprises (MNEs) actually addresses the question of how these transfers occur among cooperative subsidiaries, and relies on the assumption of inter-subsidiary cooperation. However, subsidiaries do not always cooperate. We suggest that the success of technology transfer among subsidiaries depends on the extent to which the relationships among an MNE's subsidiaries (i.e. inter-subsidiary) are competitive or cooperative. Inter-subsidiary cooperation is determined by the MNE's international strategy, organizational structure, and the social relationships among subsidiaries. Both hierarchical and social relational factors drive the potential for inter-subsidiary multimarket competition that originates from the overlap on the subsidiaries' products, technologies, and market portfolios. |
| Keywords: | technology transfer, subsidiaries, competition and cooperation, international strategy |
| JEL: | M1 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:pil:wpaper:1&r=cse |
| By: | Keld Laursen; Francesca Masciarelli; Andrea Prencipe |
| Abstract: | To introduce new products and processes, firms often acquire knowledge from other organizations. Drawing on social capital and transaction cost theory, we argue that not only is the impact of such acquisitions on the successful development of product and product innovations dependent on strategic and economic variables, it may also be contingent on the “knowledge characteristics” of the geographical area in which the firm is located. Combining data on social capital at the level of 21 regions with a large scale data set on innovative activities by a representative sample of 2464 Italian manufacturing firms, we find — after controlling for a large set of firm and regional characteristics — that being located in regions characterized by high levels of social interaction leads to a higher propensity to innovate. In addition, being located in an area characterized by a high degree of social interaction positively moderates the effectiveness of externally acquired R&D on innovation inclination. |
| Keywords: | Social capital; external acquisition; process innovation; product innovation |
| JEL: | L23 O31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:07-20&r=cse |
| By: | Manuel Portugal Ferreira (Instituto Politécnico de Leiria, Portugal); Sungu Armagan (Florida International University, USA); Dan Li (Indiana University, USA) |
| Abstract: | Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and mediumsized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges. |
| Keywords: | strategic outsourcing, vertical integration, internationalization, case study |
| JEL: | M1 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:pil:wpaper:4&r=cse |
| By: | David B. Audretsch (Max Planck Institute of Economics and Indiana University); Erik E. Lehmann (University of Augsburg and Max Planck Institute of Economics); Lawrence A. Plummer (Clemson University and Max Planck Institute of Economics) |
| Abstract: | An important literature has made a fundamental link between corporate governance and corporate strategy. According to agency theory, assigning managers stock options aligns their interests with the interests of the owners of the firm. This paper suggests that this may not apply in the context of new ventures. Instead, an alternative perspective offered in this paper suggests that if contracts are incomplete, then managerial stock ownership not only provides a mechanism to align managerial incentives with the owners' goals, as agency theory predicts, it also grants top managers residual control rights to be used in subsequent negotiations with the owners. The ability to exercise residual control rights improves the ex post bargaining position of the CEO as an asset owner, thereby increasing her incentive to make relationship-specific investments that are specific to the new venture. Thus, in the context of new venture strategy assigning asset ownership to those who have the most important relationship-specific resources or who have indispensable human capital is a crucial source of subsequent competitive advantage. This theory of entrepreneurial governance is tested using patent ownership as a proxy for both relationship-specific investments and indispensable human capital of the CEO of the new venture. The empirical results support the main hypothesis posited by the entrepreneurial governance model. |
| Keywords: | managerial equity ownership, new ventures, property rights, governance, knowledge, innovation |
| JEL: | M13 L R30 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-086&r=cse |
| By: | Argentino Pessoa (Faculdade de Economia, Universidade do Porto) |
| Abstract: | This paper deals with the relationship between innovation and economic growth in the context of developed world. After examining the correlation between economic growth and R&D (research and development) intensity, and given that the impact of R&D on economic growth is mediated by the rate of growth of technology, we proceed trying to assess the linkage between R&D outlays and economic growth, through the use of the condition of free entry into R&D. Confronted with data, our argumentation shows that the optimism of the endogenous technological change models is not confirmed for countries situated below the technological frontier. Next, based on other economic and technological indicators, a succinct comparison between the Irish and Swedish cases is made. This comparison reveals the importance of investments not classified as R&D, particularly the ones that enhance the external competitiveness of the economy. We conclude that innovation policy must always consider the complexity of the economic growth process and the other ways, besides the ones based on formal R&D indicators, in which technology has an impact on growth. |
| Keywords: | R&D, economic growth, technological change, innovation policy. |
| JEL: | O30 O32 O33 O38 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:254&r=cse |
| By: | Lutz, Clemens; Kemp, Ron; Dijkstra, S. Gerhard (Groningen University) |
| Abstract: | Abstract Extant literature discusses a large number of different entry barriers that may hamper market efficiency or entrepreneurial activity. In practice several of these barriers cohere and stem from the same root. Factor analysis is used to identify the underlying dimensions of these barriers. 7 generic factors have been found that drive the system. In the literature a debate exists between scholars that stress the importance of structural and/or strategic barriers. This paper shows that in the perception of firms both types of barriers are important and argues that the effectiveness of strategic barriers depends on attributes of the market structure. Based on the seven generic factors, a conjoint analysis is carried out to identify the most important factors perceived by firms. The conjoint analysis shows that in particular the barriers rooted in three underlying dimensions require attention of market authorities as they may refrain new entrants from entry: finance, access to distribution channels and strategic action. Remarkably, government rules and regulations, product differentiation, R&D and advertising constitute a minor entry problem according to the firms. |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:rugsom:07009&r=cse |
| By: | Uwe Cantner (Friedrich-Schiller-University Jena, Department of Economics. Chair of Economics / Mircroeconomics); Holger Graf (Friedrich-Schiller-University Jena, Department of Economics. Chair of Economics / Mircroeconomics) |
| Abstract: | We attempt to extend the static analysis of innovator networks by providing case study based insights into the dynamic, developmental or evolutionary pattern of such networks. In the theoretical part, we develop some building blocs that are considered central to a theory of network evolution. Especially, we focus on the growth of innovator networks and their structural change over time, i.e. how new relationships come into existence and existing ties are cut, how new actors join the system, and other actors leave it. The factors shaping these structural properties, can explain how coherence might increase in some periods while it might decrease in others. We exemplify these patterns for the case of the Jena network of innovators during the period 1995-2001. |
| Keywords: | Innovator network, internal/external relationships, network entry and exit |
| JEL: | O31 L14 R11 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-090&r=cse |
| By: | T. Ciarli; R. Leoncini; S. Montresor; M. Valente |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:609&r=cse |
| By: | Mika Maliranta; Rita Asplund |
| Abstract: | ABSTRACT : We study how upgrading the skills of the personnel affects a firm’s performance. Two different strategies are examined : 1) providing formal training and 2) strategic recruitment and separation policy. The use of register-based longitudinal employer-employee data supplemented with a survey on vocational training provides an opportunity to shed fresh light on the issue and allows us to address the usual econometric problems. We find that internally (but not externally) organized training stimulates subsequent growth of performance but only when combined with the implementation of new process or product technology. Hiring highly skilled workers is initially costly to firms but is productivity-enhancing in the long run. |
| Keywords: | productivity, profitability, training, education, hiring |
| JEL: | J24 M5 O3 D2 |
| Date: | 2007–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1105&r=cse |
| By: | Ricardo Paes Mamede (GEE, Ministério da Economia e da Inovação; Faculdade de Economia, Instituto Universitário de Lisboa - ISCTE); Daniel Mota (Instituto Nacional de Estatística); Manuel Mira Godinho (Instituto Superior de Economia e Gestão, Universidade Técnica de Lisboa) |
| Abstract: | The concept of «knowledge-based industries» (KBIs) has been widely used both in the academy and in policy-making over the last decade, due to the increasing role those industries play – both in terms of value added and employment – in contemporary, advanced economies. In this paper we discuss the extent to which KBIs differ from other industries in what concerns some of the stylised facts and regularities of industry dynamics usually found in the literature. In particular, we analyse the patterns and the determinants of firm entry and post-entry performance (measured in terms of survival of new firms), comparing KBIs groups with the remaining industries, using data for the Portuguese economy in the second half of the 1990s. We find that KBIs and the firms within them show some signs of distinctiveness in their dynamics as compared to the general case. In particular, on average, KBIs firms have higher survival chances, and entry within the KBIs groups is less responsive to incentives. |
| Keywords: | knowledge-based industries; market entry; firm survival |
| JEL: | L29 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0003&r=cse |
| By: | Teresa da Silva Lopes; Mark Casson |
| Abstract: | This paper provides an account of how entrepreneurs have contributed to the development of successful global brands in consumer goods industries in the twentieth century and why so few independent brands survived the merger waves of the 1980s. The industries analysed are those where the promotion of the brand relies principally on advertising rather than the technology embodied in the product. Drawing on cross-industry and cross-country comparisons of brands in consumer goods, and using a ‘stretched’ definition of the entrepreneur, the paper highlights the entrepreneurial and innovative strategies pursued by brand managers. It emphasises the role of distinct types of entrepreneurs and marketing knowledge in the creation and development of brands in successful global businesses. |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:2&r=cse |
| By: | IRAWATI, DESSY |
| Abstract: | This paper is based on the conceptual and theoretical analysis regarding the triple helix model as the demand or a challenge for developing country, particularly the Indonesian case study under investigation. The paper will discuss the essential stages required to establish a robust synergy between three different actors: the university, the industry and the government alongside the local context in Indonesia, mainly the role of university in providing help for SMEs in Indonesia together with the government or other institutional developing agencies. This paper will also explore the promotion of SMEs by clustering approach as the fact that Indonesian SMEs are scattered across the region. Furthermore, this paper will analyse the potential strengths and weaknesses within Indonesian SMEs, of setting up appropriate strategic movements for the future of the triple helix paradigm itself. It will start with the lessons, learned from the implementation of the triple helix implementation in the developed countries then it will look at the local Indonesian context in order to bridge the gaps within the actors involved. |
| Keywords: | Triple Helix; Cluster Approach; SMEs (Small and Medium Sized Enterprises); University – Industry - Government Relations |
| JEL: | O5 |
| Date: | 2006–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5829&r=cse |
| By: | Agustí Segarra-Blasco (Grup de Recerca en Indústria i Territori(GRIT), Departament d'Economia, Universitat Rovira i Virgili.) |
| Abstract: | This paper analyses the performance of companies’ R&D and innovation and the effects of intra- and inter-industry R&D spillover on firms’ productivity in Catalonia. The paper deals simultaneously with the performance of manufacturing and service firms, with the aim of highlighting the growing role of knowledge-intensive services in promoting innovation and productivity gains. We find that intra-industry R&D spillovers have an important effect on the productivity level of manufacturing firms, and the inter-industrial R&D spillovers related to computer and software services also play an important role, especially in high-tech manufacturing industries. The main conclusion is that the traditional classification of manufactured goods and services no longer makes sense in the ‘knowledge economy’ and in Catalonia the regional policy makers will have to design policies that favour inter-industrial R&D flows, especially from high-tech services. |
| Keywords: | Innovation, R&D spillovers, KIS services, Productivity |
| JEL: | L10 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2007-12&r=cse |
| By: | Leitão, João; Ferreira, João |
| Abstract: | The paper aims to investigate the impact of the liberalization of European Telecommunications Markets, on the Business Ownership Rate, the Employment, the Gross Domestic Product, and the Investment in ICT, in two European countries: Germany and Portugal. For this purpose, a Cointegrated Vector Autoregressive (CVAR) approach is developed, in order to identify the impacts that are originated from the adoption of this kind of public policies. In the case of Germany, a surprising causality relationship is detected, in the sense that Gross Domestic Product precedes decreasing Business Ownership Rates. In the case of Portugal, the Business Ownership Rate pulls for additional investments in ICT. Besides, a creative entrepreneurial destruction is somehow ratified, since the Business Ownership Rate impacts, negatively, on the level of employment. |
| Keywords: | Entrepreneurship, Information and Communication Technologies, Cointegration, Vector Autoregressive Model. |
| JEL: | L96 L51 M13 |
| Date: | 2007–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5728&r=cse |
| By: | Frédéric Deroïan; Christian Milelli; Zouhaïer M’Chirgui |
| Abstract: | This paper describes inter-firm partnerships in three major high-tech industries over the 1985-2005 period. We found that the architecture of the respective networks had evolved toward a 'small world' in the early 1990s. We also found that the number of alliances collapsed in the late 1990s. This result roughly follows the number of patents granted in the respective industries and is correlated to an increase in market concentration, and to some extent to the rising number of mergers and acquisitions. |
| Keywords: | Innovation, R&D Partnerships, High-Tech Industries, Network Architecture |
| JEL: | L24 L6 O31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2007-24&r=cse |