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on Economics of Strategic Management |
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Issue of 2008‒12‒14
ten papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Yuri, YATSENKO; Raouf, BOUCEKKINE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Natali, HRITONENKO |
| Abstract: | Several R&D-based models of endogenous economic growth are investigated under the Solow-like assumption of fixed allocation of resources across activities. We identify model parameters that lead to explosive dynamics and analyse various economic techniques to avoid it. The techniques include adding stricter constraints on model trajectories and limiting factors in technology equation. In particular, we demonstrate that our vintage version of the well-known R&D-based model of economic growth (Jones, 1955) exhibits the same balanced dynamics as the original model |
| Keywords: | Vintage capital models, Endogenous technological change, R&D investment, Explosive dynamics, Nonlinear Volterra integral equations |
| JEL: | E20 O40 C60 |
| Date: | 2008–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2008034&r=cse |
| By: | Gregor, ZOETTL |
| Abstract: | In this article we analyze firms investment incentives in liberalized electricity markets. Since electricity is economically non storable, it is optional for firms to invest in a differentiated portfolio of technologies in order to serve strongly fluctuating demand. Prior to the Liberalization of electricity markets, for regulated monopolists, optimal investment and pricing strategies have been analyzed in the peak load pricing literature (compare Crew and Kleindorder (1986)). In restructured electricity markets regulated monopolistic generators have often been replaced by competing and potentially strategic firms. This article aims to respond to the changed reality and model investment decisions of strategic firms in those markets. We derive equilibrium investment for strategic firms and compare to the benchmark cases of perfect competition and monopoly outcomes. We find that strategic firms have an incentive to overinvest in base-load technologies but choose total capacities too low from a welfare point of view. By fitting the framework to a specific electricity market (Germany) we are able to empirically analyze Investic choices of strategic firms, and quantifiy the potential for market power and its impact on generation portfolios in restructured electricity markets in the long run. |
| Date: | 2008–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2008029&r=cse |
| By: | Stephan, Andreas (Jönköping International Business School); Badunenko, Oleg (German Institute for Economic Research, DIW Berlin); Fritsch, Michael (Friedrich Schiller University Jena) |
| Abstract: | This paper investigates the factors that explain the level and dynamics of productive efficiency of a manufacturing firm. In our empirical analysis, we use a unique sample of about 39,000 firms in 256 industries from the German Cost Structure Census over the years 1992–2005. We estimate the efficiencies of the firms and relate them to firm-specific and environmental factors. <p> We find that (1) about half of the model’s explanatory power is due to industry effects, (2) that firm size accounts for another twenty percent, and (3) that the headquarters’ location explains approximately fifteen percent. <p> Interestingly, most other firm characteristics such as R&D intensity, outsourcing activities or the number of owners have an extremely small explanatory power. Surprisingly, our findings suggest that higher R&D intensity is associated with being less efficient, though higher R&D spending increases a firm’s efficiency over time. |
| Keywords: | Frontier analysis; determinants of efficiency; firm performance; industry effects; regional effects; firm size |
| JEL: | D24 L10 L25 |
| Date: | 2008–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hjiseg:0004&r=cse |
| By: | Pesämaa, Ossi (Jönköping International Business School); Hair Jr, Joseph F (Kennesaw State University); Haahti, Antti (University of Lapland) |
| Abstract: | How does the process of inter-organizational commitment develop between tourism firms? This paper proposes and tests a theoretical model of inter-organizational commitment. The model is based on six constructs and was tested on 99 small and medium sized firms. The model exhibits nomological, convergent and discriminant validity, as well as reliability. The contribution of the paper is related to measurement development as well as identifying a unique sequential order to the process of inter-organizational commitment. It also suggests policy implications for successful development of the tourism industry in remote geographical areas. |
| Keywords: | Inter-organizational commitment; Structural Equation Model; Cooperative motives; Partner selection; trust; reciprocity |
| JEL: | C12 C42 |
| Date: | 2008–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hjiseg:0002&r=cse |
| By: | Montserrat Vilalta-Bufi, Departament de Teoria Economica and CAEPS (Universitat de Barcelona) and; Departament d'Economia i Historia Economica (Universitat Autonoma de Barcelona) (Universitat de Barcelona) |
| Abstract: | We analyze an economy with two main features: labor mobility goes together with knowledge transfer and firm productivity increases with the exchange of ideas. Each firm develops some specific knowledge that will be transmitted to the rest of the industry through the mobility of workers. We study two labor market settings and use comparative statics to derive the implications of the model. They reveal how labor mobility depends on the variety and level of knowledge, the presence of mobility costs, the institutional environment, the absorptive capacity of the firms and the size of the industry. Results are robust to different labor market settings. |
| Keywords: | exchange of knowledge, inter-firm labor mobility, knowledge diffusion |
| JEL: | J61 J23 O33 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2008210&r=cse |
| By: | Markus Kitzmueller |
| Abstract: | Corporate Social Responsibility (CSR) is an important economic phenomenon with broad implications for .rms, employees, consumers, investors, governments and NGOs alike. This paper collects, structures and combines scattered pieces of economic theory and empirical evidence in novel ways that shed light on various fundamental economic questions related to CSR. The main conjecture presents individual preferences as the ultimate driving force behind any form of CSR. In the presence of social stakeholder preferences, firms may use strategic CSR to maximize profits, while not-for-profit CSR may satisfy shareholders. social ambitions. Only if managers take CSR beyond strategic levels or shareholder preferences, does CSR constitute moral hazard. Incentives and mechanisms underlying for-profit CSR will be outlined in greater detail. Six frameworks for the analysis of strategic CSR are proposed and analyzed. Finally, some empirical issues related to measurement and estimation of CSR are briefly discussed. |
| Keywords: | Corporate Social Responsibility, Public Goods Provision, Preferences, Strategic CSR |
| JEL: | D21 D6 H11 L21 L22 M14 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2008/37&r=cse |
| By: | Chaton, Corinne; Creti, Anna; Villeneuve, Bertrand |
| Abstract: | This paper analyzes the role of private storage in a market for a commodity (e.g. natural gas) whose supply is subject to the threat of an irreversible disruption. We focus on the medium term in which seasonality of demand and exhaustibility can be neglected. We characterize the price and inventory dynamics (accumulation, drainage and limit stocks) in a competitive equilibrium with rational expectations. We show the robustness of our results to alternative scenarios in which either a disruption has finite duration or the crisis is foreseen. During the crisis consumers may put pressure on the Government to intervene, but too severe antispeculative measures would inefficiently discourage storage. Practical solutions to this dilemma cause welfare losses that we characterize and quantify. |
| Keywords: | Storage; Dynamic models; Gas industry |
| JEL: | L95 Q48 L98 |
| Date: | 2008–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:11986&r=cse |
| By: | Elrod, Christopher P.; Robinson, John R.C.; Richardson, James W. |
| Abstract: | Three marketing strategies (selling a put option, cash sale at harvest, and cash sale in June) are simulated based on historical values and ranked based on certainty equivalents for a representative irrigated and dryland cotton farm Scenario analysis is also used to compare varying yield values. |
| Keywords: | Simulation, Marketing, Cotton, Risk, Marketing, Research Methods/ Statistical Methods, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6885&r=cse |
| By: | Amanor-Boadu, Vincent; Burns, Michael |
| Abstract: | With decreasing populations and declining resources, rural governments are finding it challenging determining how to make investments in their infrastructure. This paper defines the problem confronting rural governments and develops a process for making infrastructure decisions to maximize community welfare. |
| Keywords: | Infrastructure, Public Goods, Rural Development, Social Welfare Economics, Community/Rural/Urban Development, Public Economics, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6738&r=cse |
| By: | Whitacre, Brian; Fannin, J. Matthew; Barnes, James N. |
| Abstract: | As health information technology becomes more prevalent for most healthcare facilities, hospitals across the nation are choosing between performing this service in-house and outsourcing to a technology firm in the health industry. This paper examines factors affecting the information technology (IT) outsource decision for various hospitals. Using 2004 data from the American Hospital Association, logistic regression models find that governmental ownership and a proxy variable for hospitals that treat more severe injuries positively impact the probability of outsourcing for IT services. |
| Keywords: | Health Information Technology, Outsourcing, Hospital, Health Economics and Policy, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, I12, C140, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6393&r=cse |