nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒01‒31
sixteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Rivalry and Learning Among Clustered and Isolated Firms By Boari, Cristina; Fioretti, Guido; Odorici, Vincenza
  2. Product innovation and renewal: foreign firms and clusters in Belgium By Filip De Beule; Ilke Van Beveren
  3. Competition, innovation and distance to frontier. By Bruno Amable; Lilas Demmou; Ivan Ledezma
  4. Managing Strategic Buyers By Johannes Horner; Larry Samuelson
  5. Market Power and Vertical and Horizontal Integration in the Maritime Shipping and Port Industry By Eddy van de Voorde; Thierry Vanelslander
  6. Firm size, managerial practices and innovativeness: some evidence from Finnish manufacturing By Heli Koski; Luigi Marengo; Iiro Mäkinen
  7. Emerging innovation modes and (regional) innovation systems in the Czech Republic By Pavla Zizalova
  8. Cost Competitiveness of Chinese and Finnish Chemical Industries By Enjing Li; Paavo Suni; Yanyun Zhao
  9. Optimal Strategies for Automated Traders in a Producer-Consumer Futures Market By Laib, Fodil; Radjef, MS
  10. Product Differentiation and Profitability in German Manufacturing Firms By Nils Braakmann; Joachim Wagner
  11. The Italian Art Market and the importance of communication strategies: from fairs to auction houses’ best practices By BESANA, ANGELA
  12. The European Microsoft case at the crossroads of competition policy and innovation By Larouche, P.
  13. Recent French Export Performance: Is There a Competitiveness Problem? By Alain N. Kabundi; Francisco Nadal-De Simone
  14. Choice of the Exchange Policies in the Developments Countries: Study of the Competitiveness of Tunisia By Hend Sfaxi Benahji
  15. Evolutionary Dynamics of Globalization By Naci Canpolat; Hüseyin Özel
  16. The Role of Economic Information in Determining the Intensity and Efficiency of Work – Theoretical Approach to the Elaboration of Management Strategies By Stegaroiu, Carina-Elena

  1. By: Boari, Cristina; Fioretti, Guido; Odorici, Vincenza
    Abstract: In this paper explore the relationships between rivalry and geographical proximity at the very level of contacts between individual firms. In particular, we wish to highlight the influence of geographical proximity on rival identification, on the comparison of their knowledge, and on the consequent elaboration of a strategy. In order to reproduce the interactions between firms, we made use of an agent-based model (ABM) where the strategic choices of rival firms are derived from general assumptions on competitive behavior and learning processes. Aim of the model is to investigate the co-evolution of firms' knowledge, strategies and performances. Substantial empirical evidences claim that firms located in geographical clusters are more likely to learn and innovate than isolated firms.
    Keywords: Industrial Clusters; Industrial Districts; Knowledge Development; Rivalry
    JEL: L25 R19 R39
    Date: 2008–12–31
  2. By: Filip De Beule; Ilke Van Beveren
    Abstract: Using the cluster definitions of the European Cluster Observatory, this paper investigates the link between cluster membership and firm-level product innovation and renewal,using data from the Community Innovation Survey for Belgium. Clustered firms account for 71 percent of total product renewal generated in 2004 and for 53 percent of product innovators; compared to 29 and 47 percent for non-clustered firms, respectivily. Furthermore, cluster membership is shown to be conducive to firm-level product innovation and renewal once firm size, export intensity and reseach inputs are taken into account. Foreign firms are not more prone to carry out product innovation, except for subsidiaries in clusters.
    Keywords: Product Innovation, Clusters, Community Innovation Survey, Multinational Firms
    JEL: D21 F23 O31 O33
    Date: 2008
  3. By: Bruno Amable (Centre d'Economie de la Sorbonne); Lilas Demmou (Ministère des Fiances - DGTPE); Ivan Ledezma (Centre d'Economie de la Sorbonne)
    Abstract: According to a recent literature, the positive effect of competition is supposed to be growing with the proximity to the technological frontier. Using a variety of indicators, the paper tests the effect of competition and regulation on innovative activity measured by patenting. The sample consists of a panel of 15 industries for 17 OECD countries over the period 1979-2003. Results show no evidence of a positive effect of competition growing with the proximity to the frontier. Two main configurations emerge. First, regulation has a positive effect whatever the distance to the frontier and the magnitude of its impact is higher the closer the industry is to the frontier. Second, the effect of regulation is negative far from the frontier and becomes positive (or non significant) when the technology gap decreases. These results contradict the belief in the innovation-boosting effect of product market deregulation such as taken into account in the Lisbon Strategy.
    Keywords: Innovation, competition, distance to frontier.
    JEL: O30 L16
    Date: 2008–07
  4. By: Johannes Horner; Larry Samuelson
    Date: 2009–01–15
  5. By: Eddy van de Voorde; Thierry Vanelslander
    Abstract: The maritime sector is undergoing constant change, as is particularly apparent in the shift in competition that has unfolded in recent years. Whereas in the past shipowners and ports used to compete with one another, the competitive struggle is now increasingly unfolding at the level of logistics chains. Today, market players are selected not so much for their stand-alone competitiveness, but on the basis of whether or not they belong to a successful maritime logistics chain. This explains why certain market players are continuously trying to gain greater control over these chains, including through vertical and horizontal alliances, mergers and acquisitions. This contribution considers in greater detail these concerted efforts to increase market power through extensive integration. First, we deal with the competitive shifts that have occurred in the port and maritime arena. Subsequently, we look at the strategic behaviour exhibited by the main market players (shipowners, terminal operating companies, port authorities, logistics service providers, etc) and analyse their objectives. Finally, we assess the consequences of the strategies pursued in the context of the anticipated future scenarios.
    Date: 2009–01
  6. By: Heli Koski; Luigi Marengo; Iiro Mäkinen
    Abstract: In this study we use a survey data on 398 Finnish manufacturing firms for the years 2002 and 2005 to empirically explore whether and which organizational factors explain why certain firms produce larger innovative research output than others, and whether the incentives to innovate that certain organizational practices generate differ between small and large firms, and between those firms that are operating in low-tech and high-tech industries. Our study indicates that there appear to be vast differences in the organizational practices leading to more innovation both between small and large firms, and between the firms that operate in high- and low-tech industries. While innovation in small firms benefits from the practices that enhance employee participation in decision-making, large firms that have more decentralized decision-making patterns do not seem to innovate more than those with a more bureaucratic decision-making structure. The most efficient incentive for innovation among the sampled companies seems to be the ownership of a firm's stocks by employees and/or managers. Performance based wages also relates positively to innovation, but only when it is combined with a systematic monitoring of the firm's performance.
    Keywords: Innovation, firm size, organizational practices, HRM practices
    JEL: L25 M54 O31
    Date: 2009–01–26
  7. By: Pavla Zizalova (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: Innovation studies literature has put high importance to sectoral and regional patterns of innovations. This research effort is based upon the argument that industries as well as regions represent quite homogeneous entities with respect to firms’ innovation strategies. To the contrary, evolutionary approaches assign more importance to firms’ heterogeneity and hence look for groups of firms characterised by similar innovation strategies cutting across the traditional boundaries. The purpose of this paper is to characterize the innovation strategies of Czech firms using explanatory factor analysis and thus first contribute to a better understanding of innovative activities and second, explore whether the identified divergence in innovation patterns can be attributed to the localized conditions or whether it is rather firmspecific. Finally, the paper will discuss the implications of these findings for the literature on territorial systems of innovation, particularly the question how the systems should be delineated, as well as implications for (regional) innovation policy.
    Keywords: innovation, regional systems of innovation, factor analysis.
    Date: 2009–01
  8. By: Enjing Li; Paavo Suni; Yanyun Zhao
    Abstract: ABSTRACT : This study focuses on the labour cost competitiveness of the chemical industries in China and Finland in particular, using the corresponding German, the US and Estonian industries as a point of comparison in the early 2000s. This study deepens the analysis of the earlier study of the cost competitiveness of the manufacturing industries in the same group of countries. Separate studies focusing on the labour cost competitiveness are carried out in a parallel manner on the fabricated metal industries and paper industries. The results of these three sector studies deepen the knowledge about the change of competitiveness and its level. Large unit labour cost differences in a common currency were obviously a key factor behind exceptionally rapidly changing international production and trade structures in the late 1990s and early 2000s. The Chinese chemicals and chemical products and rubber and plastic products industries grew by 21 and 23 per cent per year in 2000-2007 as the average annual growth of the value added of world manufacturing volume was only 3 per cent in 2000-2006. Nominal wages as such do not imply good international competitiveness. Chinese wages are, however, low even if the Chinese low labour productivity is taken into account and costs per unit of production are compared in a common currency. The relative levels of the Chinese unit labour costs vis-à-vis Germany, using the unit value ratios (UVR) to make the production volumes comparable, were estimated to be about 6 and 2 per cent in the chemicals and chemical products and rubber and plastic products industries, respectively. In the case of the chemicals and chemical products industry, the ratio has even declined in the course of the 2000s, while in the rubber and plastic products industry it has been stable. Improving labour productivity in China had compensated for the effects of rapidly rising wages and an appreciating Renminbi Yuan in the case of the chemicals and chemical products industry and it had even more than compensated for it in the case of the rubber and plastic products industry.
    Date: 2008–12–31
  9. By: Laib, Fodil; Radjef, MS
    Abstract: The aim of this work is to show how automated traders can operate a futures market. First, we established some hypothesises on the properties of the ’correct’ price pattern which translates accurately the underlying moves in the supply/demand balance and the nominal price, then mathematical measures were derived allowing to estimate the efficiency of a given trading strategy. As a starting step, we applied our approach to a simplified market setup where only two automated traders, a producer and a consumer, can trade. They receive a stream of forecasts on supply and demand levels and they should react instantaneously by adjusting these forecasts, then issuing sale and buy orders. Later, we suggested a parameterized trading strategy for the two automatons. Finally, we obtained by simulation the optimal parameters of this strategy in some particular cases.
    Keywords: Automated traders; optimal strategies; agent based
    JEL: C02 D40 C73
    Date: 2008–05–08
  10. By: Nils Braakmann (Institute of Economics, University of Lüneburg); Joachim Wagner (Institute of Economics, University of Lüneburg)
    Abstract: We use a unique rich newly built data set for German manufacturing enterprises to investigate the product differentiation – firm performance relationship. We find that an increase in the degree of product diversification has a negative impact on profitability when observed and unobserved firm characteristics are controlled for. The effects are statistically significant and large from an economic point of view. This helps to understand the – at least, at a first glance – surprising fact that nearly 40 percent of all manufacturing enterprises with at least 20 employees in Germany are singleproduct firms according to a detailed classification of products, and that multi-product enterprises with a large number of goods are a rare species.
    Keywords: Product differentiation, profitability. Germany
    JEL: D21 L60
    Date: 2009–01
    Abstract: The Italian cultural industry is now marching on an innovative supply chain, whose main pattern consists in a new utility perception and consumption behaviours on the demand side and a strong vocation to invest in communication and public relations on the supply side. The content of this paper is an attempt to justify the emerging relevance of marketing strategies and investments in the Italian art market, referring to new incubators like art fairs – as concerns 2004’s interviews with art galleries - and to a modern and consistent approach to communication instruments evaluation for key competitors like auction houses. Angela Besana
    Keywords: strategy;communication;art market;auction house
    JEL: L82 D21 M37 D10 L31 M30 L33
    Date: 2009–01–14
  12. By: Larouche, P. (Tilburg University, Tilburg Law and Economics Center)
    Date: 2008
  13. By: Alain N. Kabundi; Francisco Nadal-De Simone
    Abstract: Recently, the export performance of France relative to its own past and relative to a major trading partner, Germany, deteriorated. That deterioration seems related to the geographical destination and product composition of trend exports. Faced with an increase in unit labor costs or in its terms of trade, France adjusts relatively less via price and wage changes, and more via employment changes. Given that SMIC convergence resulted in a significant increase in unit labor costs, foreign sector difficulties might be structural. Trade flows relevance and euro area policy constraints highlight the importance of structural reforms that increase markets flexibility.
    Keywords: Export competitiveness , Performance indicators , Terms of trade , International trade , Exports , Trade models , Productivity , Euro Area ,
    Date: 2009–01–12
  14. By: Hend Sfaxi Benahji (Universit 0064e Nice-Sophia Antipolis, CEMAFI, France)
    Abstract: After the collapse of the Breton Woods system, the increased fluctuations of the exchange rates pushed the developing countries to adopt exchange rate policies to avoid rocking of the balance of payments. Since 1973, Tunisia adopted fixed or intermediary exchange rate policies to support or ameliorate her competitiveness and later to balance her current account. By calculating the real effective exchange rate misalignment, we showed that this country did not achieve her goals and that amelioration of competitiveness occurred only as from the moment when she softened her exchange policies. A policy of floating exchange rate is recommended for Tunisia especially why this country is more and more open.
    Keywords: Exchange policy, Real effective exchange rate misalignment, Competitiveness, Tunisia
    JEL: F31
    Date: 2008–02
  15. By: Naci Canpolat (Hacettepe University); Hüseyin Özel (Hacettepe University)
    Abstract: The expansion of markets –globalization– was reversed during early 20th century and unfettered markets gave in to the welfare state and central planning. But the markets have been striking back since the early 1980s. Governments are withdrawn from economic activities, and many structural market reforms are implemented. Now the question is: Can the forces that market expansion create again reverse this expansion? This paper seeks an answer to this question by constructing an evolutionary game theoretical framework in which market and “egalitarian” societies appear as evolutionarily stable states and shows that catastrophic events such as the Great Depression can indeed cause switch over between evolutionarily stable states.
    Keywords: globalization, evolutionary game theory, evolutionarily stable states, behavioural strategies
    JEL: B52 C73
    Date: 2008
  16. By: Stegaroiu, Carina-Elena
    Abstract: Economic information, such as interpersonal relationships, and lead are usually placed at the basis of the facts and circumstances must always be based on a economic theory well argued. Relations between employees and managers should provide related information in terms of social issues, organization, classification, distribution in time and space in the labor force and should be well grounded considering the factors that influence these relations.
    Keywords: economic labor efficiency; productivity; end product; profit; ability worker; the labor system regularly
    JEL: C02 A12 D60 C60 J50
    Date: 2008–12–05

This nep-cse issue is ©2009 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.