nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒02‒16
eight papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Trade Liberalization, Competition and Growth By Omar Licandro; Antonio Navas-Ruiz
  2. Plural-entrepreneurial activity for a single start-up: a case study. By Thierry BURGER-HELMCHEN
  3. A Citation-Based Ranking of Strategic Management Journals By Azar, Ofer H.; Brock, David M.
  6. Gazelles as Job Creators – A Survey and Interpretation of the Evidence By Henrekson, Magnus; Johansson, Dan
  7. Risk aversion and the dynamics of optimal liquidation strategies in illiquid markets By Schied, Alexander; Schoeneborn, Torsten
  8. Inter-DRG resource allocation in a prospective payment system: A Stochastic Kernel Approach By Anurag Sharma

  1. By: Omar Licandro; Antonio Navas-Ruiz
    Abstract: The aim of this paper is to understand whether international trade may enhance innovation and growth through an increase in competition. We develop a two-country endogenous growth model, both countries producing the same set of goods, with firm speciffic R&D and a continuum of oligopolistic sectors under Cournot competition. Since countries produce the same setof goods, trade openness makes markets more competitive, reducing prices and raising the incentives to innovate. More general, a reduction on trade barriers enhances growth by reducing domestic firms' market power.
    Date: 2008–01
  2. By: Thierry BURGER-HELMCHEN
    Abstract: Based on a longitudinal case study of a high tech start-up, this paper explores how different forms of entrepreneurship coexist and interplay to create a firm’s innovative dynamics. A particular focus is given to knowledge-based entrepreneurship linked to technological innovation and exploitation, service entrepreneurship, and organizational-marketing entrepreneurship. Findings suggest that firms can realize performance benefits when their members divide those entrepreneurial activities between themselves during the launching phase of the firm, and then adapt the configuration of the activities, and their behaviours into a managerial form during the expansion phase of the firm. Our work offers a dynamic view of the conditions a firm has to fulfil to survive in a knowledge-based environment and we analyse the process that produces a good integration of plural-entrepreneurship behaviours.
    Date: 2008
  3. By: Azar, Ofer H.; Brock, David M.
    Abstract: Rankings of strategy journals are important for authors, readers, and promotion and tenure committees. We present several rankings, based either on the number of articles that cited the journal or the per-article impact. Our analyses cover various periods between 1991 and 2006, for most of which the Strategic Management Journal was in first place and Journal of Economics & Management Strategy (JEMS) second, although JEMS ranked first in certain instances. Long Range Planning and Technology Analysis & Strategic Management also achieve a top position. Strategic Organization makes an impressive entry and achieves a top position in 2003-2006.
    Keywords: Journal rankings; Citation analysis; Strategic Management; Academic impact; Strategy
    JEL: L0 M0 M1 A12 M2
    Date: 2007
  4. By: Andreas Bausch (Friedrich-Schiller-Universität Jena, Germany); Duc Linh Van Tri (Jacobs University Bremen, Germany)
    Abstract: After its economic opening in 1978, China has become more and more attractive for foreign direct investments and has developed into a strong internationalization target for other countries. This study analyzes the internationalization-performance relationship of German companies entering the Chinese market. The analysis is carried out for a sample of 257 announcements of the internationalization of German firms into China between 1978 and 2005. The event study methodology is used to measure the German stock market reaction to this event in order to enable a conclusion on the creation or destruction of share-holder value of German firms internationalizing into China.
    Keywords: Internationalization, market entry, China, financial performance
    Date: 2007–12–21
  5. By: Andreas Bausch (Friedrich Schiller University Jena, School of Management and Economics; Jacobs University Bremen); Frithjof Pils (Jacobs University Bremen)
    Abstract: Auf Basis meta-analytischer Integration von 82,742 empirischen Befunden aus 104 publizierten Studien testen wir die weitverbreitete Theorie, dass Produktdiversifikationsstrategien den finanziellen Erfolg von Unternehmen beeinflussen. Wir unterscheiden dabei explizit Korrelationen, die lediglich eine Assoziation suggerieren, von Korrelationen, die es erlauben, auf Kausalität zu schließen. Unsere Ergebnisse zeigen, dass die Sequenz der Variablenmessung sowie die Multidimensionalität der Variablenkonstrukte empirisch beobachtete Zusammenhänge zwischen Diversifikationsstrategien und Erfolg stark beeinflussen. Unter anderem zeigt die Analyse, dass verwandte und unverwandte Diversifikation lediglich mit simultan gemessenem- und nicht mit zeitlich verzögertem bilanz- und markt-basiertem Unternehmenserfolg signifikant korrelieren. Vor diesem Hintergrund stellt diese Studie vormalige metaanalytische Ergebnisse sowie Teile der vorherrschenden Theorie zu Erfolgseffekten von Diversifikationsstrategien in Frage. Des weiteren bietet unsere Studie wichtige Hinweise für das Design der Mess-Strategien zukünftiger Forschung in diesem Themenkreis.
    Keywords: Corporate Strategy, Financial Performance, Meta-Analysis, Product Diversification
    JEL: L25
    Date: 2007–12–21
  6. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Johansson, Dan (Ratio)
    Abstract: It is often claimed that small and young firms account for a disproportionately large share of net employment growth. We conduct a meta analysis of the empirical evidence regarding whether net employment growth rather is generated by a few rapidly growing firms – so-called Gazelles – that are not necessarily small and young. Gazelles are found to be outstanding job creators. They create all or a large share of new net jobs. On average, Gazelles are younger and smaller than other firms, but it is young age more than small size that is associated with rapid growth. Gazelles also seem to be overrepresented in services.
    Keywords: Entrepreneurship; Firm Growth; Flyers; Gazelles; High-growth Firms; Job Creation; Rapidly Growing Firms
    JEL: D21 L25 M13 O10 O40
    Date: 2008–02–08
  7. By: Schied, Alexander; Schoeneborn, Torsten
    Abstract: We consider the infinite-horizon optimal portfolio liquidation problem for a von Neumann-Morgenstern investor in the liquidity model of Almgren (2003). Using a stochastic control approach, we characterize the value function and the optimal strategy as classical solutions of nonlinear parabolic partial differential equations. We furthermore analyze the sensitivities of the value function and the optimal strategy with respect to the various model parameters. In particular, we find that the optimal strategy is aggressive or passive in-the-money, respectively, if and only if the utility function displays increasing or decreasing risk aversion. Surprisingly, only few further monotonicity relations exist with respect to the other parameters. We point out in particular that the speed by which the remaining asset position is sold can be decreasing in the size of the position but increasing in the liquidity price impact.
    Keywords: Liquidity; illiquid markets; optimal liquidation strategies; dynamic trading strategies; algorithmic trading; utility maximization
    JEL: G12 G33 G24 G10 G20
    Date: 2008–02–08
  8. By: Anurag Sharma (Centre for Health Economics, Monash University)
    Abstract: This paper empirically investigates the distribution dynamics of resource allocation decisions across Diagnosis Related Groups (DRGs), in a continuing Prospective Payment System (PPS). The theoretical literature suggests a PPS could lead to moral hazard effects, where hospitals have an incentive to change the intensity of services provided to a given set of patients, a selection effect whereby hospitals have an incentive to change the severity of patients they see, and thirdly hospitals could change their market share by specialization (practice style effect). The related econometric literature has mainly focussed on the impact of PPS on average Length of Stay (LOS) concluding that the average LOS has declined post PPS. There is little literature on distribution of this decline across DRGs, in a PPS. The present paper helps fill this gap. The paper models the evolution over time of the empirical distribution of LOS across DRGs. The empirical distributions are estimated using a non parametric “stochastic kernel approach” based on Markov Chain theory. The results suggest that relative prices of DRGs are one of the determinants in resource allocation across DRGs. In addition, a reduction in the high outlier episodes indicates existence of potential selection effect even in a continuing PPS.
    Keywords: Resource allocation, stochastic kernel, case-mix funding, prospective payment system, length of stay
    Date: 2007–10

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.