nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒07‒20
six papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Formal and Strategic Appropriability Strategies of Multinational Firms: A Cross Country Comparison By Faria, Pedro; Sofka, Wolfgang
  2. Considerations about the Influence Factors on the Competitiveness of SME’s from Western Region of Romania By BIBU, Nicolae Aurelian; SALA, Diana; PANTEA, Marius; BIZOI, Gabriel
  3. La orientación al mercado como determinante de la internacionalización de las nuevas empresas By Andreu Blesa; Diego Monferrer Tirado; María Ripolles Meliá
  4. Towards an Evolutionary Model of the Entrepreneurial Financing Process: Insights from Biotechnology Startups By T. VANACKER; S. MANIGART; M. MEULEMAN
  5. The implications of latent technology regimes for competition and efficiency in banking By Koetter, Michael; Poghosyan, Tigran
  6. Are Antitrust Fines Friendly to Competition? An Endogenous Coalition Formation Approach to Collusive Cartels By Alberto ZAZZARO; David BARTOLINI

  1. By: Faria, Pedro; Sofka, Wolfgang
    Abstract: International knowledge spillovers, especially through multinational companies (MNCs), have recently been a major topic of discussion among academics and practitioners. Most research in this field focuses on knowledge sharing activities of MNC subsidiaries. Relatively little is known about their capabilities for protecting valuable knowledge from spilling over to host country competitors. We extend this stream of research by investigating MNC appropriability strategies that go beyond formal methods (patents, copyrights, trademarks) to include strategic ones (secrecy, lead time, complex design). We conceptualize the breadth and depth of a firm’s knowledge protection strategies and relate them to the particular situation of MNC subsidiaries. Moreover, we argue that their approaches differ with regard to host country challenges and opportunities. We address these issues empirically, based on a harmonized survey of innovation activities of more than 1,800 firms located in Portugal and Germany. We find that MNCs prefer broader sets of appropriability strategies in host countries with fewer opportunities for knowledge sourcing. However, munificent host country environments require targeted sets of appropriability strategies instead. We deduce that these results are due to a need for reciprocity to benefit fully from promising host country knowledge flows.
    Keywords: Appropriability, Multinational Companies, Patenting
    JEL: D83 F23 O31 O32
    Date: 2008
  2. By: BIBU, Nicolae Aurelian; SALA, Diana; PANTEA, Marius; BIZOI, Gabriel
    Abstract: There are many ways in which the firm competitiveness can be understood in the related literature. The purpose of this research is to undertake a better understanding of expectations and concerns of small and medium sized enterprises from Romanian Western region, in term of competitiveness. This study presents preliminary results of a finished grant focused on SME’s competitiveness. There are some positive and negative factors in our research which are influencing firms’ competitiveness. This study has confirmed our hypothesis. The external environment influence on the competitiveness of SME’s is strong and contributes decisively to their performance.
    Keywords: SME’s; competitiveness; growth; external factors; Romania
    JEL: O18 L20 M13
    Date: 2008–05–30
  3. By: Andreu Blesa (Universitat Jaume I); Diego Monferrer Tirado (Universitat Jaume I); María Ripolles Meliá (Universitat Jaume I)
    Abstract: The main aim of this study is to analyze the factors that can favor the international performance of new companies. Specifically, the paper studies the influence of market orientation on the generation of marketing capabilities, as well as the role of these capabilities in the international performance of international new ventures through the choice of high investment entry modes and geographical dispersion. The relationship of these variables to international performance is also analyzed. This model of influence has been confirmed in a sample of Spanish international new ventures by means of structural equations models. The results allow us to affirm a positive relationship between market orientation and marketing capabilities, and moreover, that these capabilities contribute to the choice of high investment entry modes. Finally, the analysis also presents a positive relationship between entry modes and the international performance of new companies. El principal objetivo de este trabajo es analizar los factores que favorecen el resultado internacional de las nuevas empresas. Se analiza la influencia de la orientación al mercado en la generación de capacidades de marketing. Asimismo se estudia el efecto de dichas capacidades en la elección del método de entrada y en la dispersión geográfica de los mercados. También se analiza la relación de estas variables en el resultado internacional. Dicho modelo de influencia ha sido contrastado en una muestra de nuevas empresas internacionales españolas mediante modelos de ecuaciones estructurales. Los resultados permiten afirmar que existe una relación positiva entre la orientación al mercado y las capacidades de marketing, y que dichas capacidades contribuyen a la elección de modos de entrada de alto compromiso de recursos y control. Finalmente, el análisis también presenta una relación positiva entre estos modos de entrada y el resultado internacional de las nuevas empresas.
    Keywords: Orientación al Mercado, Nuevas Empresas Internacionales, Creación de Empresas, Internacionalización Market Orientation, International New Ventures, Entrepreneurship, Internationalizatio
    Date: 2008–03
    Abstract: Using multiple longitudinal case studies of young biotechnology firms, we study differences in the financing process between high and low performing firms. Findings suggest that initial differences in the specialization of the investors with whom entrepreneurs affiliate early on, affect the ease with which firms attract (specialized) follow-on financing and firm performance. We demonstrate the role of the social context in shaping initial financing outcomes, as entrepreneurs limit their search for financing to one or a few investors with whom they have pre-existing ties. Additionally, our research provides a dynamic view of the financing process. We identify isolating mechanisms, including entrepreneurial learning and homophily and network considerations in investor syndication, which limit entrepreneurs when trying to adopt successful financing strategies implemented by competitors later on. A core contribution is that we theorize on evolutionary processes in the financing process. This new perspective advances our knowledge on dynamics in the financing process and opens multiple avenues for future research.
    Keywords: entrepreneurship; new venture finance; financing process; venture capital; performance
    Date: 2008–07
  5. By: Koetter, Michael; Poghosyan, Tigran
    Abstract: Banks continue to differ in many ways, for instance with respect to business models, growth strategies, or nancial health. Neglecting these differences confuses inefficiency with heterogeneity while sub-sample estimation prohibits efficiency comparisons across different samples. We use a latent class stochastic frontier model to estimate simultaneously multiple technology regimes and group membership probabilities. The latter are conditioned on six bank traits of German banks and we identify four signifficantly different technology regimes. Only small, retail focused banks exhibit cost inefficiencies, which are 5.4% on average and thus substantially lower compared to previous studies. We use technology regime specific cost parameters to measure competition with Lerner indices. Large, national universal banks and the smallest, most specialized banks exhibit the lowest level of competition. In turn, medium sized universal banks are both efficient and exhibit the lowest Lerner margins between 1994 and 2004. Das deutsche Bankwesen wird oft als Drei-Säulen-System bezeichnet, welches aus Sparkassen, Geschäfts-, und Genossenschaftsbanken besteht. Diese Systematik wird oft als geradezu natürliche Marktsegmentierung verstanden. Banken können sich jedoch auch zwischen und innerhalb der drei Säulen hinsichtlich anderer Kriterien unterscheiden, zum BeispielWachstumsstrategien, Stabilitätseigenschaften oder Geschäftsmodellen. Viele vergleichenden Studien definieren oftmals vorab Teilstichproben, um diese Unterschiede zu berücksichtigen. Jede Bildung von Bankengruppen beinhaltet jedoch unweigerlich eine zum Teil willkürliche Komponente und verhindert außerdem den Vergleich relativer Effizienzmaße zwischen Teilstichproben. In dieser Studie benutzen wir ein latent class frontier model (LCFM), um unterschiedliche Technologiegruppen empirisch zu schätzen anstatt sie zu definieren. Wir ermitteln die Wahrscheinlichkeit der Gruppenzugehörigkeit (GZW) je Bank in Abhängigkeit von sechs individuellen Charakteristika. Für jede Technologiegruppe leiten wir Wettbewerbsmaÿe ab und untersuchen deren Entwicklung zwischen 1994 und 2004.
    Keywords: Banks, competition, efficiency, latent class frontier, strategy
    JEL: G21 L1
    Date: 2008
  6. By: Alberto ZAZZARO (Universita' Politecnica delle Marche, Dipartimento di Economia); David BARTOLINI ([n.a.])
    Abstract: A well-established result of the theory of antitrust policy is that it might be optimal to tolerate some degree of collusion among firms if the Authority in charge is constrained by limited resources and imperfect information. However, few doubts are cast on the common opinion by which stricter enforcement of antitrust laws definitely makes market structure more competitive and prices lower. In this paper we challenge this presumption of effectiveness and show that the introduction of a positive (expected) antitrust fine may drive firms from partial cartels to a monopolistic cartel. Moreover, introducing uncertainty on market demand, we show that the social optimal competition policy can call for a finite or even zero antitrust penalty even if there are no enforcement costs. We first show our results in a Cournot industry with five symmetric firms and equilibrium binding agreements. Then we extend the analysis to the case of n symmetric firms and a generic rule of coalition formation. Finally, we consider the case of asymmetric firms and show that our results still hold for an industry populated by one Stackelberg leader and two followers.
    Keywords: antitrust policy, coalition formation, collusive cartels
    JEL: C70 L40 L41
    Date: 2008–07

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