nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2008‒08‒14
eight papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Entrepreneurship and Competitiveness Dynamics in Latin America. By Zoltan J. Acs; Jose Ernesto Amoros
  2. Competitiveness of India's Manufacturing Sector: An Assessment of Related Issues By L, lakshmanan; S, Chinngaihlian; Raj, Rajesh
  3. Value Chain Dynamics and Growth of Local Firms:The Case of Motorcycle Industry in Vietnam By Fujita, Mai
  4. Stimulating Strategically Aligned Behaviour among Employees By Riel, C.B.M. van; Berens, G.A.J.M.; Dijkstra, M.
  5. India’s Growth Pattern and Obstacles to Higher Growth By Sean Dougherty; Richard Herd; Thomas Chalaux; Abdul Erumban
  6. How did the Turkish Industry Respond to Increased Competitive Pressures, 1998-2007? By Gokhan Yilmaz; Rauf Gonenc
  7. Innovation and Knowledge Sourcing in the Vienna ICT Manufacturing Sector By Lukas Lengauer; Eva Nussmüller; Michaela Trippl; Franz Tödtling
  8. NEW SMALL FIRMS AND DIMENSIONS OF ECONOMIC PERFORMANCE By Sherrill Shaffer; Iftekhar Hasan; Mingming Zhou

  1. By: Zoltan J. Acs (George Mason University; Max Planck Institute of Economics); Jose Ernesto Amoros (Universidad del Desarrollo)
    Abstract: This study analyses the relationship between entrepreneurial dynamics and the level of competitiveness in Latin American countries. Based on a stage of economic development model we demonstrate that Latin American countries under the model followed different paths related to competitiveness. These different paths can explain the effect of specific competitiveness conditions on entrepreneurial dynamics in Latin America.
    Keywords: Entrepreneurship, Competitivness, Development, Latin America
    JEL: L26 M13 O54
    Date: 2008–08–12
  2. By: L, lakshmanan; S, Chinngaihlian; Raj, Rajesh
    Abstract: This paper provides an analytical abstract of various parameters of manufacturing competitiveness of the Indian economy. India's manufacturing exports have risen impressively in the past decade or so and found to be directly linked to the world GDP and inversely related to real effective exchange rate (REER). Indian manufacturing industries have certain inherent strengths and advantages in having a relatively inexpensive, adequate and skilled labour force, cost-effective and competitive prices of goods produced, large manufacturing base and proximity to fast growing Asian markets. India is one of the leading producers and exporters in a number of commodities and enjoys significant advantages in terms of lower labour costs as compared to other economies. Nevertheless, India's competitiveness is lost on account of lower labour productivity and higher input and material costs. To improve the competitiveness of the Indian manufacturing goods, issues like further diversification of export basket, upgradation of export quality, improvement in productivity, increased technology intensity in production, enhanced R&D activity, encouraging business environment, less cumbersome regulatory environment, flexible labour laws, removal of infrastructural bottlenecks and SME related issues need attention of all concerned.
    Keywords: Manufacturing sector; Competitiveness
    JEL: F14 L52 O57 L60
    Date: 2007–01–07
  3. By: Fujita, Mai
    Abstract: Vietnam’s burgeoning market for motorcycles has attracted global industry eaders,players from developing countries, and local firms. This has led to a dynamic evolution of value chains. This paper presents an explanation of the varieties of the growth patterns xperienced by the local suppliers, focusing on the roles of customer and local supplier strategies. Case studies showed that while the role of customers may be important, strategies of suppliers to improve the ompetitive edge in the production of otorcycle components and to diversify into other products account for important ariations of growth trajectories among local suppliers. Findings presented in this paper suggest the need to direct more attention to strategy that local firms use to boost their competitive edge in business.
    Keywords: Local suppliers, Value chains, Vietnam, Motorcycle industry, Southeast Asia
    JEL: L22 L62 O33
    Date: 2008–07
  4. By: Riel, C.B.M. van; Berens, G.A.J.M.; Dijkstra, M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Strategically aligned behaviour (SAB), i.e., employee action that is consistent with the company’s strategy, is of vital importance to companies. This study provides insights into the way managers can promote such behaviour among employees by stimulating employee motivation and by informing employees, and by stimulating the development of their capabilities. The results of surveys conducted in three organisations suggest that, first, efforts by management aimed at motivating and informing employees (both managers and non-managers), and at developing their capabilities, each have an influence on SAB. Second, among the efforts to stimulate motivation among employees, providing a rationale for the strategy and an open communication climate have a stronger effect than participation in decision making and supportiveness. Third, the perceptions of the different types of managerial efforts influence each other. For this reason, the efforts have direct as well as indirect effects on SAB. Fourth, each of the efforts acts as a necessary condition for SAB to occur. Finally, the effect of informing efforts appears to be stronger for managerial employees than for non-managerial employees, and also for employees who have a better understanding of the organisation’s strategy.
    Keywords: capability development;employee behaviour;information;motivation;strategic alignment;strategic change
    Date: 2008–08–01
  5. By: Sean Dougherty; Richard Herd; Thomas Chalaux; Abdul Erumban
    Abstract: India’s growth performance has improved significantly over the past 20 years, but has been uneven across industries and states. While some service industries, notably in the information and communications technology sector, have become highly competitive in world markets – yielding considerable gains for employees and investors – manufacturing industries have lagged and improved their performance only recently. A divergence in performance has taken place, with firms in those states and sectors with the best institutions gaining, and those in the more tightly regulated states and sectors falling further behind. As a result, the competitive landscape is uneven across sectors and states and a high degree of concentration continues to prevail in different industries. While this is partly the result of the legacy of licensing, change has been politically difficult, making it harder for the manufacturing sector than for the service sector to expand. The need for further institutional reforms is urgent, focusing on product and labour market regulations at the central and state levels. This working Paper relates to the 2007 Economic Survey of India ( <P>Profil de croissance de l’Inde et obstacles à une accélération de la croissance <BR>La croissance en Inde s’est sensiblement améliorée depuis une vingtaine d’années, mais les performances sont inégales d’un secteur ou d’un État à l’autre. Si certaines industries de services, notamment dans le secteur des technologies de l’information et des communications, sont désormais très compétitives sur les marchés mondiaux – à l’origine de gains considérables pour les salariés et les investisseurs – les industries manufacturières restent à la traîne et n’ont commencé que récemment à améliorer leur performance. Les écarts se sont creusés, les entreprises des États et secteurs dotés des institutions les plus efficaces allant de l’avant, tandis que celles des États et secteurs plus strictement réglementés accusaient plus encore leur retard. D’où un paysage concurrentiel fort dissemblable d’un secteur ou d’un État à l’autre, et une forte concentration, notamment aux mains de la puissance publique, dans plusieurs secteurs d’activité. S’il faut y voir pour une part un héritage du système des autorisations administratives, les évolutions ont été politiquement délicates, rendant plus difficile l’expansion du secteur manufacturier que celle du secteur des services. Il est impératif de poursuivre les réformes institutionnelles, en privilégiant la réglementation des marchés de produits et du travail, aux niveaux aussi bien de l’administration centrale que des États. Ce document de travail se rapporte à l’Étude économique de l’Inde 2007 (
    Keywords: productivity, productivité, réglementation, regulation, specialisation, spécialisation, firm microdata, micro-données d'entreprise, regional concentration, concentration régionale, manufacturing development, développement industriel
    JEL: D4 F15 L11 O12
    Date: 2008–08–04
  6. By: Gokhan Yilmaz; Rauf Gonenc
    Date: 2008
  7. By: Lukas Lengauer; Eva Nussmüller; Michaela Trippl; Franz Tödtling
    Date: 2008
  8. By: Sherrill Shaffer; Iftekhar Hasan; Mingming Zhou
    Abstract: Using data from metropolitan U.S. labor market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities, and growth rates of several income and employment variables. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects of entry in metropolitan markets than previously documented, and point to several potential tradeoffs associated with entry by small firms.
    JEL: O1 J23 M13
    Date: 2008–07

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