nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒06‒21
nine papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The impact of strategic resource seeking and market seeking strategies on foreign entry modes under institutional pressures By Manuel Portugal Ferreira; Fernando A. Ribeiro Serra
  2. Agency, strategic entrepreneurship and the performance of private equity backed buyouts By Meuleman,M.; Amess, K.; Wright, M.; Scholes, L.
  3. Open and closed industry clusters: The social structure of innovation By Manuel Portugal Ferreira; Fernando A. Ribeiro Serra
  4. Portrait of an Odd-Eyed Cat: Cultural Crossing as a Trademark for a Dutch-Thai Strategic Alliance By Kwanjai, Nantawan Noi; Hertog, J. Friso den
  5. Leadership in online knowledge networks : challenges and coping strategies in a network of practice By Agterberg, M.; Huysman, M.; Hooff, B. van den
  6. Competitiveness in the Southern Euro Area: France, Greece, Italy, Portugal, and Spain By Yuan Xiao; Marialuz Moreno-Badia; Werner Schule; Herman Z. Bennett; Julio Escolano; Stefania Fabrizio; Eva Gutierrez; Bogdan Lissovolik; Stephen Tokarick; Iryna V. Ivaschenko
  7. Experimentation with Strategy and the Evolution of Dynamic Capability in the Indian Pharmaceutical Sector By Athreye, Suma; Kale, Dinar; Ramani, Shyama V.
  8. Does the Chinese Banking System Promote the Growth of Firms? By Panicaos Demetriades; Jun Du; Sourafel Girma; Chenggang Xu
  9. Cooperative games in Strategic Form By Sergiu Hart; Andreu Mas-Colell

  1. By: Manuel Portugal Ferreira (Instituto Politécnico de Leiria); Fernando A. Ribeiro Serra (UNISUL Business School)
    Abstract: Multinational corporations (MNCs) are subject to the various dimensions of the external institutional environments where they operate. Institutional theory suggests that MNCs need to conform to the prevailing rules, norms and procedures of the locations where they operate in order to survive and grow. This means that MNCs need to develop the best possible configuration of strategy-structure for their worldwide operations. Previous research has noted that in these conditions firms may simply seek to follow a referent other. However, MNCs? specific strategy for a focal foreign operation is likely to determine the entry mode for each host country. That is, in certain circumstances it may be whether MNCs are pursuing a market-seeking strategy or a strategic resource seeking strategy that shapes the entry mode in face of the prevailing institutional pressures. We contribute to the understanding of entry modes into foreign markets as a reflection of a strategic choice that is bound by institutional constraints.
    Keywords: strategic resource seeking, market seeking, institutional environment, foreign entry modes
    JEL: M0 M1
    Date: 2008–06–09
  2. By: Meuleman,M.; Amess, K.; Wright, M.; Scholes, L. (Vlerick Leuven Gent Management School)
    Abstract: Agency theory has focused on buyouts as a governance and control device to increase profitability, organizational efficiency and limited attention to growth. A strategic entrepreneurship view of buyouts incorporates upside incentives for value creation associated with growth as well as efficiency gains. In this paper, we develop the complementarity between agency theory and strategic entrepreneurship perspectives to examine the performance implications for different types of buyouts. Further, we study how the involvement of private equity firms is related to the performance of the post-buyout firm. These issues are examined for a sample of 238 private equity backed buyouts in the UK between 1993 and 2003. Implications for theory and practice are suggested.
    Date: 2008–06–03
  3. By: Manuel Portugal Ferreira (Instituto Politécnico de Leiria); Fernando A. Ribeiro Serra (UNISUL Business School)
    Abstract: In this paper we discuss knowledge and innovation in clusters and the benefits of clustering from a knowledge-based perspective. Knowledge-based resources and innovations are important sources of competitive advantage for firms. Aware of the importance of continuously seeking new knowledge firms increasingly seek knowledge-rich locations such as specific industry clusters across the world. These are locations characterized by the concentration of firms operating in related and supporting activities, a specialized work force and a specialized institutional environment that nurtures the industry. However, it is not likely that these clusters are always locations from which the firms will be able to draw the intended knowledge benefits. The social structure of the relationships between individuals and firms determines the extent to which knowledge will be created, will flow between co-located firms and bounds the knowledge benefits the firms may capture. We finish with a discussion of the need of further examination of the network dynamics involved in an industry cluster to obtain a clearer identification of the actual positive externalities that may accrue to co-locating firms.
    Keywords: Strategy; Industry clusters; Innovation
    JEL: M0 M1
    Date: 2008–06–10
  4. By: Kwanjai, Nantawan Noi (UNU-MERIT); Hertog, J. Friso den (UNU-MERIT, University of Maastricht)
    Abstract: This chapter attempts a step forward in seeking a richer understanding of the dynamics of strategic alliances, specifically when viewed from a cross-cultural perspective. We report selected materials from a study designed to build a theory of culture and learning in organizations based on observations of and open-ended interviews with Dutch and Thai employees working for four selected Dutch firms in Thailand. Here we present one of those cases, a Dutch-Thai joint venture that thrived by weaving together the many intricate cultural webs to achieve a unique pattern of partnership which, metaphorically speaking, became its indispensible trademark. The case illustrates how the three levels of culture – national, organizational, and professional cultures – could all interlace in a real world setting and serve as an instrumental force of success amidst tension in one particular cross-border strategic alliance. First, we adopt a thick descriptive style of case narration to present the case of a Dutch- Thai joint venture, Chuchawal-De Weger Internationaal (CDW), painting a portrait of its origin, evolution and characteristics. Next, we turn to elaborate on the particular issue of cultural crossing, its exact theorized properties, dimensions and implications. Finally, we relate the case of CDW to the proposed theory and conclude with a reflection on how this case and our interpretation of it illuminate the complex role culture can play in the dynamics of strategic alliances.
    Keywords: cross-cultural management, culture, qualitative case study, strategic alliance, thick-description
    JEL: F23 L24 Z13
    Date: 2008
  5. By: Agterberg, M. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Huysman, M.; Hooff, B. van den
    Abstract: In this paper we explore the challenges and coping strategies for leading online intraorganizational Networks of Practice (NOPs). The research indicates that coordinating distributed knowledge in NOPs poses a leadership challenge that is not yet addressed in the literature on knowledge management in general and is unique when comparing intraorganizational NOPs to research on leadership in other types of online knowledge networks. This challenge entails creating and maintaining a balance between the interests of the formal organization and the interests of the informal network, and shows that coordinating informal knowledge sharing in a formal context involves a management dilemma thereby contributing to theory on coordinating distributed knowledge
    Keywords: distributed knowledge; knowledge coordination; leadership, management dilemma; networks of practice
    Date: 2008
  6. By: Yuan Xiao; Marialuz Moreno-Badia; Werner Schule; Herman Z. Bennett; Julio Escolano; Stefania Fabrizio; Eva Gutierrez; Bogdan Lissovolik; Stephen Tokarick; Iryna V. Ivaschenko
    Abstract: This collection of studies analyzes developments in nonprice external competitiveness of France, Greece, Italy, Portugal, and Spain. While France, Italy, and Portugal have experienced substantial export market share losses, Greece and Spain performed relatively well. Export market share losses appear associated with rigidities in resource allocation (sectoral, geographical, technological) relative to peers and lower productivity gains in high value-added sectors. Disaggregated analysis of goods and services export markets provides insights on aspects such as quality, market concentration, growth of destination markets, and geographical and sectoral diversification. Also, increased import penetration, offshoring and FDI could improve productivity and export performance.
    Keywords: Working Paper , France , Greece , Italy , Portugal , Spain , Competition , Exports , Markets , International trade , Foreign investment , Exchange rates , Productivity , Resource allocation ,
    Date: 2008–05–01
  7. By: Athreye, Suma (UNU-MERIT, and Brunel Business School); Kale, Dinar (Open University, and ESRC Innogen); Ramani, Shyama V. (Institut National de la Recherche Agronomique (INRA), and Ecole Polytechnique Paris)
    Abstract: This paper demonstrates that radical regulatory changes can be tantamount to technological revolutions by studying Indian pharmaceutical firms. It shows that radical regulatory changes such as the Indian Patent Act of 1970, the New Industrial Policy of 1991 and the signing of TRIPS (Trade Related Intellectual Property Rights System) in 1995 served to open up new economic opportunities and constraints in the wake of which the winners and losers were selected as a function of the dynamic firm capabilities most appropriate for the new market environment.
    Keywords: International Marketing, R&D Management, India, Pharmaceutical Sector, Corporate Strategy
    JEL: L11 L22 L51 L65 M31 O32 O34 O53
    Date: 2008
  8. By: Panicaos Demetriades (University of Leicester); Jun Du (Aston University); Sourafel Girma (University of Nottingham); Chenggang Xu (London School of Economics)
    Abstract: Using a large panel dataset of Chinese manufacturing enterprises during 1999-2005, which accounts for over 90% of China’s industrial output, and robust econometric procedures we show that the Chinese banking system has helped to support the growth of both firm value added and TFP. We find that access to bank loans is positively correlated with future value added and TFP growth. We also find that firms with access to bank loans tend to grow faster in regions with greater banking sector development. While the effects of bank loans on firm growth are more pronounced in the case of purely private-owned and foreign firms, they are positive and statistically significant even in the case of state-owned and collectively-owned firms. We show that excluding loss-making firms from the sample does not change the qualitative nature of our results.
    Keywords: Chinese banking system development, value added and TFP growth, panel dataset
    JEL: E44 O53
    Date: 2008–02
  9. By: Sergiu Hart; Andreu Mas-Colell
    Date: 2008–06–09

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