nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒02‒02
eight papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Location and R&D alliances in the European ICT industry By Rajneesh Narula; Grazia D. Santangelo
  3. Innovation and the geographical and functional dimensions of outsourcing: An empirical investigation based on Italian firm level data. By Lucia Cusmano; Maria Luisa Mancusi; Andrea Morrison
  4. What networks do to firms and what firms do to networks: Evolution of alliance portfolios in networked markets By Ozcan, Pinar
  5. Coevolutionary Competence in the Realm of Corporate Longevity: How Long-lived Firms Strategically Renew Themselves By Kwee, Z.; Bosch, F.A.J. van den; Volberda, H.W.
  6. Creating Successful collaborative relationships By E. VANPOUCKE; A. VEREECKE
  7. Re-Inventing the Wheel: Knowledge Integration in Fast-changing Environments. By Stefano Brusoni; Lorenzo Cassi
  8. Discovering the Dynamics of Smart Business Networks By Pau, L-F.

  1. By: Rajneesh Narula (Department of Economics, University of Reading Business School); Grazia D. Santangelo (Facoltà di Scienze Politiche, Università degli Studi di Catania)
    Abstract: This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.
    Keywords: Alliances, R&D location, strategy, co-location, knowledge flows
    JEL: D23 F23 O18 O32 R3
    Date: 2007
  2. By: Azevedo, Susana; Ferreira, João
    Abstract: The main objective of this paper is to analyze the competitiveness of the main maritime Port sited in Portugal - Port of Sines. This paper is developed under the Resource-based view approach. A literature review about the Resource-based view is presented with a special highlight on the contribution of organizations owns’ resources to the competitiveness. With this paper we intend to emphasize the applicability of a management theory to a different type of organizations which only recently start to be preoccupied with its competitiveness. A case study methodology is used in order to collect all the information needed about its main resources and capabilities of Port and also its competitiveness. The resources analysed in this paper are: the infrastructures, the accessibilities, the Port operations and also the information systems used on it. Also, a set of performance data is analysed as the main indicators of competitiveness. After that, a conceptual model is presented in order to systematise the main resources and capabilities under which the competitiveness of the Port of Sines is built on.
    Keywords: Competitiveness, sea Port, Resource-based view, case study
    JEL: L10 M10 A10 M20 L80
    Date: 2008–01–23
  3. By: Lucia Cusmano (Insubria University, Varese and CESPRI - Bocconi University, Milan, Italy.); Maria Luisa Mancusi (CESPRI - Bocconi University, Milan, Italy.); Andrea Morrison (URU - Utrecht University, Utrecht, The Netherlands and CESPRI - Bocconi University, Milan, Italy)
    Abstract: The paper investigates the diversified patterns of outsourcing in the Lombardy region and relates them to the probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes are strongly regionally embedded and that offshoring is still a limited phenomenon. Outsourcing strategies are shown to have a positive impact on firms’ innovation. In particular, the outsourcing of service activities contributes the most to innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that both geographical and organizational proximity matter. Indeed, the positive association of services with innovation is strongly related to their regional dimension, which points toward the importance of local user-producer relationships. When outsourcing crosses national borders, keeping the outsourced activities at least loosely connected to the firm appears critical, as offshoring to non affiliated firms has a clear negative impact on innovation.
    Keywords: Product Innovation, Process Innovation, Outsourcing, Offshoring.
    JEL: D21 F23 L22 L23 O31 O32 O33
    Date: 2007–12
  4. By: Ozcan, Pinar (IESE Business School)
    Abstract: This study explores the question of how alliance portfolios change over time. In the setting of the U.S. wireless gaming market, I collected real-time and longitudinal data on entrepreneurial game publishers over two and a half years. This process revealed that alliance portfolios of firms can grow or deteriorate rapidly through virtuous or vicious cycles, depending on their starting position in a networked market. Those firms in a virtuous cycle have the additional advantage that they can use resource-dependence strategies to fuel the virtuous cycle. Finally, I find that changes in a firm's alliance portfolio occur simultaneously with other firm-level changes, such as physical growth, new rounds of financing, public offering and game coverage. The findings have potential contributions to literature at the firm, portfolio, and network levels. Overall, the picture provided is one that advocates multi-level and longitudinal analysis for the understanding of firm, portfolio, and network-level outcomes deriving from firm-level interactions and portfolio strategies.
    Keywords: Alliance portfolios; firm evolution; strategy; resource dependence;
    Date: 2007–09–11
  5. By: Kwee, Z.; Bosch, F.A.J. van den; Volberda, H.W. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Understanding the phenomena of corporate longevity and self-renewing organizations has become an important topic in recent management literature. However, the majority of the research contributions focus on internal determinants of longevity and self-renewal. Using a co-evolutionary framework, the purpose of this paper is to address the dynamic interaction between organizations and environments in the realm of sustained strategic renewal, i.e. corporate longevity. To this end, we will focus on the competence of long-lived firms to coevolve due to the joint effect of managerial intentionality and environmental selection pressures. Building on coevolutionary framework, we develop a conceptual framework that highlights an organization’s coevolutionary competence. Two longitudinal case studies are presented illustrating the arguments.
    Keywords: competence-based management;coevolutionary competence;corporate longevity;strategic renewal;adaptive open systems
    Date: 2007–11–19
    Abstract: Stevens (1989) was among the first to stress the strategic importance of collaboration in the supply chain. On the other hand, some recent studies point out that supply chain collaboration is no guarantee for success (Van Wassenhove et al, 2003; Vereecke et al, 2004; Holweg et al, 2005) and that there is a need to investigate what makes a collaborative relationship successful. Building on the work of Mohr and Spekman (1994), Monczka (1998) and Solis (2004) and several other researchers (Bowersox (2000), Mentzer (2000), etc), we have identified three key antecedents of supply chain collaboration: collaboration attributes, systems & processes and conflict resolution techniques. To measure these antecedents and the link between the antecedents and the performance improvement of the relationship, we developed a survey to measure the least successful and the most successful strategic supplier-and customer-relationships. Based on a cluster analysis on the operational benefits of collaboration, we identified 4 types of collaborative relationships: stagnant, internally-focused, externally-focused and best-in-class collaborative relationships. We found that the characteristics of the relationships are different according to the type of collaborative relationship. Based on the differences in the antecedents of these clusters, we identified different paths to improve supply chain collaboration and we identified 4 types of capabilities to improve the performance of a relationship: cumulative, internal, external and progressive capabilities. This categorization helps management to highlight which aspects of the relationship require more attention, depending on the kind of benefits one wants to accomplish through the relationship.
    Date: 2007–11
  7. By: Stefano Brusoni (CESPRI - Bocconi University, Milan, Italy.); Lorenzo Cassi (ADIS, Université Paris Sud.)
    Abstract: The aim of this paper is to look at knowledge integration as an organizational capability which leaves traces in intra-organizational networks. To do so, this paper develops a methodology to identify and capture with quantitative data the key characteristics of those organizations that integrate knowledge to solve complex problems. We rely on a two year long project which has gathered extensive qualitative evidence on the micro-level processes which led to the introduction of a radical process innovation in tire manufacturing, i.e. a robotized, modular production process. On this strength, we compare the strategies of two of the world’s leading firms (Michelin and Pirelli) engaged in the effort of developing this breakthrough technology in the 1990s. We look at the evolving structure of their intraorganizational co-inventors’ networks in order to explain the different outcomes of their strategies.
    Keywords: knowledge integration, social network analysis, tire industry.
    JEL: O32 L23 L6
    Date: 2007–12
  8. By: Pau, L-F. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: In an earlier paper ,was discussed the necessary evolution from smart business networks, as based on process need satisfaction and governance, into business genetics [1] based on strategic bonds or decay and opportunistic complementarities. This paper will describe an approach and diffusion algorithms whereby to discover the dynamics of emergent smart business network structures and their performance in view of collaboration patterns over time. Some real life early analyses of dynamics are discussed based on cases and date from the high tech sector. Lessons learnt from such cases are also given on overall smart network dynamics with respect to local interaction strategies, as modelled like in business genetics by individual partner profiles, goals and constraints. It shows the weakness of static “business operating systemsâ€, as well as the possibly destabilizing clustering effects amongst nodes linked to filtering, evaluation and own preferences.
    Keywords: smart business networks;SBN;business genetics;network performance
    Date: 2007–12–03

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