nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒04‒21
nine papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Impact of bank competition on the interest rate pass-through in the euro area By M. van Leuvensteijn; C. Kok Sørensen; J.A. Bikker; A.A.R.J.M. van Rixtel
  2. Firm heterogeneity within industries: How important is “industry” to innovation? By Tommy Clausen
  3. Serving low-income markets: Rethinking Multinational Corporations’ Strategies By SadreGhazi, Shuan; Duysters, Geert
  4. Innovation,Flexibility, Change-Premises of Organizational Development By Todorut, Amalia Venera
  5. Empirical Evidence on Growth and Volatility By Michael Stastny; Martin Zagler
  6. Value based information systems for small and medium enterprises By Moga, Liliana Mihaela; Virlanuta, Florina Oana; Buhociu, Florin Marian
  7. EVOLUÇÃO DA PESQUISA BRASILEIRA EM RESOURCE-BASED VIEW (RBV): ESTUDO DOS ENANPAD NA ÁREA DE ESTRATÉGIA ENTRE 1997 - 2006 By Fernando A. Ribeiro Serra; Manuel Portugal Ferreira; Maurício Fernandes Pereira; Juliano Lissoni
  8. Strategic Partitioning of Emissions Allowances. Under the EU Emission Trading Scheme By Christoph Böhringer and Knut Einar Rosendahl
  9. A Model of Vertical Oligopolistic Competition By Reisinger, Markus; Schnitzer, Monika

  1. By: M. van Leuvensteijn; C. Kok Sørensen; J.A. Bikker; A.A.R.J.M. van Rixtel
    Abstract: This paper analyses the impact of loan market competition on the interest rates applied by euro area banks to loans and deposits during the 1994-2004 period, using a novel measure of competition called the Boone indicator. We find evidence that stronger competition implies significantly lower spreads between bank and market interest rates for most loan market products, in line with expectations. Using an error correction model (ECM) approach to measure the effect of competition on the pass-through of market rates to bank interest rates, we likewise find that banks tend to price their loans more in accordance with the market in countries where competitive pressures are stronger. Further, where loan market competition is stronger, we observe larger bank spreads (implying lower bank interest rates) on current account and time deposits. This would suggest that the competitive pressure is heavier in the loan market than in the deposit markets, so that banks under competition compensate for their reduction in loan market income by lowering their deposit rates. We observe also that bank interest rates in more competitive markets respond more strongly to changes in market interest rates. These findings have important monetary policy implications, as they suggest that measures to enhance competition in the European banking sector will tend to render the monetary policy transmission mechanism more effective.
    Keywords: Monetary transmission, banks, retail rates, competition, panel data
    JEL: D4 E50 G21 L10
    Date: 2008–03
  2. By: Tommy Clausen (Nordland Research Institute, Bodø)
    Abstract: In this paper we assess how important “industry” is to innovation. Our empirical estimates suggest that “industry factors” matter little to how firms’ search for new innovations. These results offer empirical support to recent evolutionary theory where firms have heterogeneous capabilities and pursue different approaches to innovation. Structural variables at the industry level do however have a substantial influence on the firm level propensity to innovate. This result supports “sectoral innovation system” approaches where firms are “constrained” by technological regimes underlying industry evolution. Hence, the driving forces behind technological evolution are found at both the firm and industry level.
    Date: 2008–04
  3. By: SadreGhazi, Shuan (UNU-MERIT); Duysters, Geert (UNU-MERIT)
    Abstract: In recent years a new debate is emerging about market-based approaches to serve lowincome communities, opportunities in such markets and the role of multinational corporations. This paper aims at providing an overview of low-income markets thereby analyzing challenges that multinational corporations face in addressing such markets. Various examples of low-income market approaches are examined and different firm strategies regarding R&D, production and distribution in such markets have been illustrated and discussed. It is argued why specific strategies, many of them new to multinationals, are to be devised when it comes to serving low-income communities.
    Keywords: Multinational corporations, Low-income markets, Bottom of the Pyramid, Business strategy
    JEL: F23 M19 O32 O19
    Date: 2008
  4. By: Todorut, Amalia Venera
    Abstract: The features of innovation, flexibility and change mutually influence one another. Provided that change is perceived as a feature leading to innovation, flexibility is the feature that enables it. Innovation cannot exist without change but nonetheless each and every change leads to innovation. Flexibility is a necessary condition but not sufficient for the innovation since it is influenced by change and balanced by flexibility. This fact suggests that the flexible companies lead to a more significant innovation comparatively to those inflexible. The innovations are more likely to develop when the organizational conditions allow flexibility. Concerning innovation, two types of flexibilities have been identified. The first type creates a routine allowing to companies to take advantage of opportunities leading to increasing the input capacity. The second type avoids the existent routine with the aim of creating new opportunities leading to high innovation. The type of innovation requested and that of flexibility are determined by the stability of the organization change and its environment.
    Keywords: innovation;flexibility;change; quality;strategy
    JEL: M11 D2
    Date: 2008–02
  5. By: Michael Stastny; Martin Zagler
    Abstract: This paper empirically investigates the relationship between long-run economic growth and output volatility. There is an emerging theoretical literature on the topic which is inconclusive on the size and direction of the relationship. We analyze this relationship empirically for the time series experience of 21 OECD countries between the years 1961 and 2005. After applying a pooled OLS estimator and a series of robustness checks we conclude that there is strong empirical evidence for a positive relationship between output variability and economic growth.
    Keywords: Growth, Volatility, Cycles, Innovation
    Date: 2007–09–28
  6. By: Moga, Liliana Mihaela; Virlanuta, Florina Oana; Buhociu, Florin Marian
    Abstract: The proposed paper intends to promote the knowledge in the field of small and medium enterprises information systems using a novel methodology based on Value Analyses principles, and particular on function analysis. Customer based software engineering could be a possible solution, as it has the capacity to connect the strategic decisions made in the process of software design with the beneficiary companies’ management objectives, which are affected by these decisions. The actual tendency in the evolution of soft approaches is the methodology elaborated by Hauser and Clausing, entitled: House of Quality. This approach is focused on the determining character of the clients' demands in the projection of information systems. In this tendency, the approach based on Value Analysis is also subscribed. Value analysis is the discipline that positions the consumer’s needs in the center of the methodology. It is known as a technical and economic design method which fundamentally differs from the classic cost reduction methods through the systematic and functional approach of the projected economic objects, taking into account the beneficiaries' concrete demands. Through this paper we intend to outline a methodology which will integrate the new discoveries made in the field of software architecture with the value analysis.
    Keywords: value; value analysis; information systems; function; SME
    JEL: C88 M13 B41
    Date: 2007–11–15
  7. By: Fernando A. Ribeiro Serra (UNISUL Business School); Manuel Portugal Ferreira (Instituto Politécnico de Leiria); Maurício Fernandes Pereira (Universidade Federal de Santa Catarina); Juliano Lissoni (UNISUL Business School)
    Abstract: O objetivo do presente trabalho foi verificar a contribuição brasileira nos estudos de estratégia o enfoque na RESOURCE-BASED VIEW ? RBV. O estudo visou expor e analisar a evolução da pesquisa em RBV no Brasil, a partir dos trabalhos selecionados e apresentados no ENANPAD. No levantamento preliminar para a análise dos artigos, considerando 10 anos de ENANPAD (1997 ? 2006), foram selecionados 57 artigos. A identificação e seleção dos artigos envolveram os seguintes critérios: avaliação dos títulos e resumos dos artigos apresentados na área de estratégia entre 1997 e 2006; busca complementar por palavras-chave tais como RBV, VBR, recursos, capacidades, competências, visão baseada em recursos e resource-based view, core competence e de dynamic capabilitiess na base de dados do ENANPAD. Procedemos também à análise das referências utilizadas nos artigos. Na primeira parte revemos brevemente aspectos fundamentais da RBV. Na segunda parte apresentamos a metodologia seguida na coleta dos dados e fazemos à análise dos resultados. Concluímos com uma discussão geral, propondo a partir da evolução dos trabalhos nacionais uma agenda que possa orientar pesquisas futuras.
    Keywords: RBV, estratégia, ENANPAD.
    JEL: M0 M1
    Date: 2008–03–15
  8. By: Christoph Böhringer and Knut Einar Rosendahl (Statistics Norway)
    Abstract: The EU Emission Trading Scheme (ETS) is breaking new ground in the experience with emission trading regimes across multiple jurisdictions. Since the EU ETS covers only some industries, it implies a hybrid emission control scheme where EU member states must apply complementary domestic emissions regulation for the non-trading sectors of their economies in order to comply with their national emission reduction targets. The EU ETS thus opens up for strategic partitioning of national emissions budgets by the member states between trading and non-trading sectors. In this paper we examine the potential effects of such strategic behavior on compliance cost and emissions prices. We show that concerns on efficiency losses from strategic partitioning are misplaced if all the member states behave in a Nash-Cournot manner. However, if a single country takes the official partitioning of the other countries as a reference point, there is substantial scope for exploiting market power.
    Keywords: Emissions Trading; Allocation of Quotas; Strategic Behavior
    JEL: C61 C72 Q25
    Date: 2008–04
  9. By: Reisinger, Markus; Schnitzer, Monika
    Abstract: This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the upstream conditions mainly affect the distribution of profits. We compare the welfare effects of upstream versus downstream deregulation policies and show that the impact of deregulation may be overvalued when ignoring feedback effects from the other market. Furthermore, we analyze how different forms of vertical restraints influence the endogenous market structure and show when they are welfare enhancing.
    Keywords: Deregulation; Free Entry; Price Competition; Product Differentiation; Successive Oligopolies; Two-Part Tariffs; Vertical Restraints
    JEL: L13 D43 L40 L50
    Date: 2008–04–09

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