nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒01‒12
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Deeper, wider and more competitive? Monetary integration, eastern enlargement and competitiveness in the European Union By Gianmarco Ottaviano; Daria Taglioni; Filippo di Mauro
  2. Driving Forces for Research and Development Strategies : An Empirical Analysis Based on Firm-level Panel Data By Martin Woerter
  3. Business strategy and firm performance: the British corporate economy, 1949-1984 By Antcliff, V.; Higgins, David; Toms, Steven; Wilson, J.F.
  4. Public Servants: a Competitive Advantage for Public Firms? By FRIEBEL, Guido; MAGNAC, Thierry
  5. Services trade and growth By Mattoo, Aaditya; Hoekman, Bernard
  6. Policy and Product Differentiations Encourage the International Transfer of Environmental Technologies By Hattori, Keisuke
  7. Growth of the Firm and Economic Backwardness: A Case Study and Analysis of China's Mobile Handset Industry By Kimura, Koichiro
  8. The Effects of Corporate Governance and Institutional Environments on Export Behaviour: Evidence from Chinese Listed Firms By Lu, Jiangyong; Xu, Bin; Liu, Xiaohui
  9. A Model for Industrial Development of the Federal Region of Kurdistan: Science and Technology Policy, Instruments and Institutions By Almas Heshmati
  10. Political, social and economic determinants of corporate social disclosure by multi-national firms in environmentally sensitive industries. By Toms, Steven; Hasseldine, J.; Massoud, H.
  11. Tax Enforcement for SMEs: Lessons from the Italian Experience? By Giampaolo Arachi and Alessandro Santoro

  1. By: Gianmarco Ottaviano (University of Bologna, Via Zamboni 33, 40126 Bologna, Italy.); Daria Taglioni (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Filippo di Mauro (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
    Abstract: What determines a country’s ability to compete in international markets? What fosters the global competitiveness of its firms? And in the European context, have key elements of the EU strategy such as EMU and enlargement helped or hindered domestic firms’ competitiveness in local and global markets? We address these questions by calibrating and simulating a conceptual framework that, based on Melitz and Ottaviano (2005), predicts that tougher and more transparent international competition forces less productive firms out the market, thereby increasing average productivity as well as reducing average prices and mark-ups. The model also predicts a parallel reduction of price dispersion within sectors. Our conceptual framework allows us to disentangle the effects of technology and freeness of entry from those of accessibility. On the one hand, by controlling for the impact of trade frictions, we are able to construct an index of ‘revealed competitiveness’, which would drive the relative performance of countries in an ideal world in which all faced the same barriers to international transactions. On the other hand, by focusing on the role of accessibility while keeping ‘revealed competitiveness’ as given, we are able to evaluate the impacts of EMU and enlargement on the competitiveness of European firms. We find that EMU positively affects the competitiveness of firms located in participating economies. Enlargement has, instead, two contrasting effects. It improves the accessibility of EU members but it also increases substantially the relative importance of unproductive competitors from Eastern Europe. JEL Classification: F12, R13.
    Keywords: European integration, gains from trade, competitiveness, firm-level data, total factor productivity.
    Date: 2007–12
  2. By: Martin Woerter (KOF Swiss Economic Institute, ETH Zurich)
    Abstract: This paper investigates empirically different ways to organise R&D within Swiss firms. Based on a longitudinal data set comprising three cross sections (1999, 2002, and 2005) of the Swiss innovation survey, four different types of R&D strategies could have been separated; firms combine in-house R&D with R&D co-operations (coop), or in-house R&D with external R&D (buy), or they conduct in-house R&D, external R&D and R&D co-operations (mixed), or they exclusively rely on in-house R&D (make). It is the aim of this paper to understand what drives firms to go for different strategies. Based on econometric estimations controlling for correlations between the dependent variables and endogeneity among the independent variables it was found that concepts related to the absorptive capacity, incoming spillovers and appropriability, the importance of different knowledge resources, the competitive environment, costs and skill aspects as well as technological uncertainty are essential factors to determine firm’s decision to choose a specific way to organise R&D.
    Keywords: Research and Development, R&D Co-operations, Empirical Analysis (Firm Panel), R&D Strategies
    JEL: O30
    Date: 2007–12
  3. By: Antcliff, V.; Higgins, David; Toms, Steven; Wilson, J.F.
    Abstract: There has been considerable and ongoing debate about the performance of the British economy since 1945. Empirical studies have concentrated on aggregate or industry level indicators. Few have examined individual firms’ financial performance. This study takes a sample of c.3000 firms in 19 industries and identifies Britain’s best performing companies over a period of 35 years. Successful companies are defined as a) those that survive as independent entities, b) that outperform peer group average return to capital for that industry, and c) that outperform other firms in the economy according to return on capital relative to industry average. Results are presented as league tables of success and some tentative explanations offered concerning the common strategies of successful firms. A broader research agenda for British business history is suggested.
    Date: 2007
  4. By: FRIEBEL, Guido; MAGNAC, Thierry
    Date: 2007–03
  5. By: Mattoo, Aaditya; Hoekman, Bernard
    Abstract: The competitiveness of firms in open economies is increasingly determined by access to low-cost and high-quality producer services - telecommunications, transport and distribution services, financial intermediation, etc. This paper discusses the role of services in economic growth, focusing in particular on channels through which openness to trade in services may increase productivity at the level of the economy as a whole, industries and the firm. The authors explore what recent empirical work suggests could be done to enhance comparative advantage in the production and export of services and how to design policy reforms to open services markets to greater foreign participation in a way that ensures not just greater efficiency but also greater equity in terms of access to services.
    Keywords: Economic Theory & Research,Banks & Banking Reform,Transport Economics Policy & Planning,ICT Policy and Strategies,Emerging Markets
    Date: 2008–01–01
  6. By: Hattori, Keisuke
    Abstract: This paper investigates the welfare effects of international transfers of environmental technologies in open economies with international oligopoly and transboundary pollution, and shows that policy differentiation between the donor and recipient countries and/or product differentiation between the donor and recipient firms play a critical role in obtaining a bilateral agreement on the transfer policy between nations. The results arise from the fact that policy differentiation weakens the strategic relationships in environmental policy setting between governments and that product differentiation weakens the strategic relationships in quantity choices between firms.
    Keywords: Technology Transfer; Environmental Tax; Oligopoly
    JEL: F18 H23
    Date: 2007–09–05
  7. By: Kimura, Koichiro
    Abstract: Economic backwardness often influences the growth of firms in developing countries. In this paper, we investigate the growth conditions and paths available for latecomers competing with first movers. Employing the concepts of boundaries of the firm and the disadvantage of backwardness, we present a case study of China's mobile handset industry and proceed to develop a simple model. We find that although significant disadvantage does not allow latecomers to grow, there are possibilities for changing the conditions of growth if latecomers can utilize outside resources and/or indigenous advantages.
    Keywords: Boundaries of the Firm, Backwardness, Mobile Handset, China, Telephone, Information services industry, Business enterprises
    JEL: D23 L63 O12 O53
    Date: 2007–12
  8. By: Lu, Jiangyong; Xu, Bin; Liu, Xiaohui
    Abstract: The impact of corporate governance on export decisions is an important yet under- explored research issue. This paper examines this issue with respect to Chinese listed firms. We adopt an analytical framework in which the effects of corporate governance on export decisions are associated with institutional environment. We test several hypotheses derived from this framework. The sample firm’s export propensity and export intensity are found to be positively impacted by CEO ownership share and independent director ratio, and negatively impacted by private/family control. The export-promoting effects of CEO ownership share and independent director ratio are found to be positively moderated by a well-established institutional environment.
    JEL: F0
    Date: 2007–12
  9. By: Almas Heshmati (University of Kurdistan Hawler, HIEPR and IZA)
    Abstract: This report introduces two of the most successful industrial development models of the modern time - the Japanese as a leader and the South Korean as its follower. The objective is to review the industrialization process in these two economies which have served as a model for development in many newly industrialized economies. The experience gained from a review of the two models is used to investigate the current industrial development in the Federal Kurdistan Region. In particular the focus is initially on the identification of the current policy and institutions in the region. The conditions, potential and pitfalls are investigated and the resources available in the region and those needed are quantified and the gap estimated. Based on experience gained and available information, the strategy for development is designed and an optimal model for industrialization of the Kurdistan region is proposed. Major steps to be taken during the industrialization process are identified and described in detail. Discussion of the of the possible industrial policy instruments to improve security and self-sufficiency is followed by a presentation of infrastructure organizations and their cooperation to implement the industrialization policy. Industrial policy here involves the regional government’s use of its authority and resources to administer policies that address the needs of specific sectors, industries or corporations with the aim of raising their survival, productivity and competitiveness.
    Keywords: industrial development, industrialization process, industrial policy, infrastructure, Kurdistan
    JEL: H54 L52 L78 O14 O20 O25
    Date: 2007–12
  10. By: Toms, Steven; Hasseldine, J.; Massoud, H.
    Abstract: Using examples from environmentally sensitive industries, the paper examines the determinants of corporate social disclosure (CSD). The paper moves beyond the traditional literature in two respects. First it is international in scope, examining the accounting disclosure responses of multi-national companies to the pressures implied by the nature and scope of their operations. Second, variables measuring political risk and social development are developed so that these pressures can be measured, thereby introducing new dimensions to the literature. In common with previous studies, financial risk, size and other control variables are included. The relationships are tested econometrically utilising regression techniques not previously applied in the CSD literature but nonetheless more generally appropriate when using count dependent variables. Results suggest that managers feel an unequal sense of responsibility to different constituencies and their disclosure priorities are determined by stock market accountability, lobbying power of their domestic audience and the political risk of their activities rather than the impact of their activities in countries of operation.
    Date: 2007–04
  11. By: Giampaolo Arachi and Alessandro Santoro
    Abstract: The paper aims to provide a detailed description and evaluation of the Italian experience in tax auditing and enforcement for SMEs which we believe may have some lessons for developing countries with similar sized shadow economies and large numbers of micro-enterprises. We focus on an audit strategy known as “Studi di settore”, which roughly translates as “business sector analyses”, which relies on statistical methods to select the taxpayers to be audited. We show how Studi di settore can be used as an audit rule or as a presumptive tax and we compare it with optimal audit rules and with alternative presumptive taxes on the basis of the available evidence for Italy. We discuss whether Studi di settore may be a useful policy tool for establishing presumptive taxation for SMEs in developing countries when resources for tax auditing are scarce. A presumptive regime may naturally evolve in a full-fledged audit selection mechanism following the development of the private and public sectors.
    Keywords: tax evasion, shadow economy, SMEs, audit strategies, presumptive taxation, Italy, developing countries
    Date: 2008–01–07
  12. By: Himanshu Sekhar, Rout; Prasant Kumar , Panda
    Abstract: Achieving Gender parity has become a great concern for the world today. It is considered as a part of development strategy in many countries. When all people- both men and women have equal access to services and resources, enjoy equal rights, and get equal opportunity to develop capabilities without any bias or preferences , then the development of the country would be faster. It strengthens countries' abilities to grow, to reduce poverty, and to govern effectively. Despite considerable efforts in advocacy, creation of awareness, different strategies and programmes, Gender discrimination remains pervasive in many dimensions of life-worldwide. Though the nature and magnitude of the discrimination vary from country to country, in no part of the world gender parity is completely achieved in legal, social and economic fronts. Gender gaps are widespread in access to and control of resources, in economic opportunities, in power, and political voice. Women are still exploited, discriminated, and subject to harassment and violence. Again in the current years the focus has been changed from women empowerment to gender development. The former is a mean but not all for gender parity. In this perspective an edited volume covering the various dimensions and strategies of gender development is highly imperative. Rural women are mainly employed in agriculture-its allied activities and agro-based enterprises. There exists a glaring gender bias in terms of ownership , nature of works assigned, wages payment ,freedom in choice of work. Though the women contribute a significant proportion of agricultural production, they are discriminated, ill-paid and their role is largely neglected. There is a need for an appropriate legal-institutional frame work, change of societal attitude, and supported mechanization of agriculture on the need of lessening drudgery activities and work-stress for women, in reducing gender disparity in agriculture sector and sustainable development. Similarly the women, nearly half of the total population, are lagging behind in access to the existing health care and educational opportunities in the country. A proper level of awareness and conducive environment need to be developed for this. Promotion of health, education and an appropriate level of awareness will largely contribute to women development and facilitate them to enjoy their right. More over provision of employment and economic empowerment of women can be considered as one of the important dimensions of gender development. Formation of Self Help Group among poor women those are unable to access market individually, on their own capacity and provision of micro credit financing to them are great support and help them to start income generating micro enterprises and get rid of poverty. This not only helps to empower women but also provides them economic and social justice. This is an initiative to address these issues and draw the attention of the policy makers and planners.
    Keywords: Women in Development; Gender and Development
    JEL: A3
    Date: 2007

This nep-cse issue is ©2008 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.