nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒02‒22
thirteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Strategic Choice between Process and Product Innovation under Different Competitive Regimes By Luigi Filippini; Gianmaria Martini
  2. Supply chain information flow strategies: an empirical taxonomy By Vanpoucke, E.; Boyer, K.; Vereecke, A.
  3. Best performance-best practice nelle imprese manifatturiere italiane By Calabrese Giuseppe
  4. Human Resource challenges for growing SMEs. How Flemish entrepreneurs attract, develop and retain employees By Van Bruystegem, K.; Van De Woestyne, M.; Dewettinck, K.
  5. Competitiveness and Specialisation of the Austrian Export Sector. A Constant-Market-Shares Analysis By Skriner, Edith
  6. Cost Copmetitiveness of Chinese and Finnish Fabricated Metal Industries Chemical Indurties By Enjing Li; Paavo Suni; Yanyun Zhao
  8. What we know about relationship between training and firm performance: a review of literature By Thang, N.; Buyens, D.
  9. EXPORTING, PRODUCTIVITY AND MARKET INTEGRATON: Italian manufacturing firms within the European context By Michele Imbruno
  10. Managerial Power, Stock-Based Compensation, and Firm Performance: Theory and Evidence By Choe, Chongwoo; Tian, Gloria; Yin, Xiangkang
  11. A Hipótese do Investment Development Path: Uma Abordagem por Dados em Painel. Os Casos de Portugal e Espanha By Miguel Fonseca; António Mendonça; José Passos
  12. Factores determinantes de la reputación del CEO: Un análisis sectorial entre las principales empresas españolas By Susaeta, Lourdes; Pin, Jose R.; Belizon, M. Jesus
  13. Social Preferences and Strategic Uncertainty: An Experiment on Markets and Contracts By Antonio Cabrales; Raffaele Miniaci; Marco Piovesan; Giovanni Ponti

  1. By: Luigi Filippini (DISCE, Università Cattolica di Milano); Gianmaria Martini (Università di Bergamo)
    Abstract: This paper investigates the strategic choice between introducing a process or a product innovation in a duopoly model with vertical differentiation, comparing the outcomes in case of Bertrand and Cournot competition. It is shown that under both competitive regimes three equilibria in innovation adoption may arise: two symmetric equilibria, where firms select the same innovation type, and one asymmetric equilibrium. The competitive regime has an impact on the features of the asymmetric equilibrium, since in case of Bertrand competition, the high (low) quality firm chooses a product (process) innovation, while firms make the opposite choices in case of Cournot competition. The presence of a leapfrogging effect (only in the Cournot competitors tend to favor the introduction of a new product in comparison with the Bertrand competitors.
    Keywords: vertical differentiation, innovation adoption, process and product innovation, competitive regime.
    JEL: D43 L15 O33
    Date: 2009–01
  2. By: Vanpoucke, E.; Boyer, K.; Vereecke, A. (Vlerick Leuven Gent Management School)
    Abstract: Purpose - The paper identifies different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to contextual factors and the impact on performance. Design/methodology/approach – The paper examines empirical data gathered from 56 manufacturing companies, describing 112 supply chain relationships. An empirical taxonomy is created based on cluster analysis. Findings - Based on a parsimonious description of inter-firm information flows in the literature and our empirical findings, we identify 3 types of alliances: Silent, Communicative and IT intensive alliances. While Silent alliances have the poorest overall performance, substantial similarities are found between Communicative and IT intensive alliances. In particular, the analysis suggests that IT intensive alliances, albeit performing better on operational capabilities, are not performing better on relationship satisfaction compared to Communicative alliances. Additional analyses indicate that partners of an IT intensive alliance are substantially more interdependent and larger in size. Research limitations/implications – This research presents a taxonomy of information flow strategies in a supply chain context. This research is not describing causality, since our data is not longitudinal in nature. Practical implications – Managers need to selectively invest in IT according to an overall supply chain integration strategy, which also takes softer, less technological forms of integration into consideration. Originality/value – This research provides insight into inter-firm information flows from a contingency perspective, recognizing heterogeneity of firms and supply chain practices..
    Keywords: Integration, Information flow, IT supply chain applications, Strategic alliances
    Date: 2009–02–12
  3. By: Calabrese Giuseppe (Ceris - Institute for Economic Research on Firms and Growth, Moncalieri (Turin), Italy)
    Abstract: The aim of this working paper is to analyse the best practices of a sample of manufacturing firms that have carried out lasting best performance in terms of solvency, growth and profitability. Firstly, the paper analyses the factors that have favoured or hindered best performance, that is: size; ownership and corporate structure; product and production strategies; competitive and international position; human resources management; product and process development, and so on. Secondly, the paper analyses the correlation between size, qualitative and relational growth. By cluster analysis, three groups of firms have been defined with different levels of qualitative and relational contents. The clusters are the dependent variable of an ordered logit regression and the explanatory variables are the performance and structural variables. The research has been founded by the Piedmont Region and, consequently, is focused on the manufacturing companies located in this region.
    Keywords: Best performance, Best practice, Manufacturing firms, Size growth
    JEL: L60 M10
    Date: 2008–12
  4. By: Van Bruystegem, K.; Van De Woestyne, M.; Dewettinck, K. (Vlerick Leuven Gent Management School)
    Abstract: For Flemish entrepreneurs human resource management is one of the biggest challenges for further development and growth (Forum on Entrepreneurship, October 2006). Hence, this paper aims to shed light on how successful entrepreneurs in Flanders manage their human resources. Building on Greiner’s (1998) growth model and the model of Ulrich (1997), we conducted a qualitative study of various human resource practices within Flemish entrepreneurial firms in different sectors and stages of growth. We investigated the interplay between the focus of HRM and the growth phase of an SME. The main objective is to better understand the major challenges entrepreneurs experience when managing people during the first stages of company growth. Our findings suggest that HRM within growing SMEs shifts from an operational focus on people to a more strategic focus on procedures. Throughout the process of evolution entrepreneurs need to find the right balance of HR practices, paying attention to formalisation, delegation and coaching.
    Keywords: SME; HRM; small firms; growth phase
    Date: 2008–12–11
  5. By: Skriner, Edith (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)
    Abstract: This constant-market-shares (CMS) analysis shows the development of competitiveness, market and product structure of the Austrian merchandise exports from 1990 to 2006. The traditional CMS application was transformed to a dynamic model, such that the static indicators have been replaced by time series. This dynamic consideration of the CMS analysis helps to track all changes in the trade structure and competitiveness over time. The long-term trend of the indicators suggests that the Austrian foreign trade sector was able to maintain its market share in the global environment. While the Austrian foreign trade performance only slightly deviates from the pattern of the traditional industrialised countries, a strong structural change is observable in the external sector of the emerging markets. The disadvantages in competitiveness of the Austrian foreign sector have vanished, however, the market and product structure effects show negative trends after 2000, pointing to vulnerability in the Austrian export sector.
    Keywords: International economics, Trade, Countries and industry studies of trade, Index numbers and aggregation, Time series models
    JEL: F1 F14 C43 C22
    Date: 2009–02
  6. By: Enjing Li; Paavo Suni; Yanyun Zhao
    Abstract: ABSTRACT : This study focuses on the labour cost competitiveness of fabricated metal industry 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 paper and pulp and metal 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 fabricated metal industry grew by about 22 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 their 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 2 per cent in the fabricated metal industry. The ratio has even declined in early 2000s and has stayed relatively stable after that till 2007. Improving labour productivity in China had compensated for the effects of rapidly rising wages and an appreciating Renminbi. The outlook of the fabricated metal industry is clouded by the difficult global financial crisis, which strongly restricts export possibilities and dampens also the domestic markets of industry. On the other hand the stimulus packages of the government target especially the key demand sectors of the fabricated metal industry.
    Keywords: competitiveness, unit value ratio, UVR, fabricated metal industry, NACE 28
    Date: 2008–12–31
  7. By: Michele Imbruno
    Abstract: The ongoing process of international economic integration has induced several academic researchers and policy makers to deepen increasingly issues about the relationship between international trade and economic growth. More in particular, the attention is increasingly focusing on the link between exporting and firm performance, acknowledging the extreme relevance of 'firm heterogeneity'. This paper investigates empirically the exporting-productivity linkage in the Italian manufacturing sector, following a brief overview of recent literature. By using firm-level panel data for the years 2000 and 2003, we find that exporters are more productive than non-exporters and this productivity gap could be due to the self-selection mechanism – solely the high-performance firms are able to serve foreign markets – rather than post-entry effects.
    Keywords: Trade, Productivity, Heterogeneous firms, Self-selection, Learning-byexporting.
    JEL: D21 F14
    Date: 2008–12
  8. By: Thang, N.; Buyens, D. (Vlerick Leuven Gent Management School)
    Abstract: This paper reviews theory and empirical findings on the relationship between training and firm performance. We describe the various important theoretical approaches and proposed a framework for analyzing training and firm performance issues. Data from previous studies is used to assess the effects of training on firm performance. The research results show that training has a positive and significant impact on firm performance. Finally, we identify the limitations of these previous studies and directions for future research on this topic.
    Keywords: Training; Human resource outcomes; Firm performance
    Date: 2008–12–12
  9. By: Michele Imbruno
    Abstract: The potential linkage between international trade and economic growth is always at the core of large and intense debates amongst academic researchers and policy makers. Recently, the attention is increasingly moving towards the exporting-productivity relationship, acknowledging the important role played by the heterogeneous firms and the trade policy. After having provided an overview of the recent theoretical and empirical literature – by focusing especially on Meltiz-Ottaviano model (2008) – this paper is aimed at investigating empirically the link between exporting and firm productivity in Italy within the context of European integration. By using a panel of Italian manufacturing firms for the years 2000 and 2003, we document coherently with the theory that: firstly, exporters turn out to have a higher performance than firms solely oriented to the home market; and secondly, the average firm productivity is higher as the industry export propensity towards more integrated European markets is considered.
    Keywords: Exporting, Productivity, Heterogeneous firms, European integration.
    JEL: D21 F14 F15
    Date: 2008–12
  10. By: Choe, Chongwoo; Tian, Gloria; Yin, Xiangkang
    Abstract: We study theoretically and empirically the relation among CEO power, CEO pay and firm performance. Our theoretical model follows the rent extraction view of CEO compensation put forward by the managerial power theory. We test our theoretical findings using the sample of S&P1500 firms. The predicted relation between power and pay is largely supported. However, the relation between power and firm performance has mixed support, suggesting that, while the managerial power theory has relevance in explaining the relation between power and pay, the scope of power needs to be broadened for better understanding of how managerial power affects firm performance.
    Keywords: Managerial power; agency theory; stock-based compensation; firm performance; pay-performance sensitivity.
    JEL: D82 G30 J33
    Date: 2009–02
  11. By: Miguel Fonseca; António Mendonça; José Passos
    Abstract: Observando as transformações ocorridas na economia mundial no último quarto do século XX, como resultado do processo de liberalização, desregulamentação e abertura dos mercados, um dos traços mais significativos residiu na emergência de Empresas Multinacionais (EMN) em todos os sectores de actividade e países do mundo. Em consequência, os fluxos de investimento directo no estrangeiro (IDE) promovidos por estas EMN registaram no mesmo período um crescimento superior ao dos fluxos de comércio e da própria produção mundial, legitimando a necessidade de reformular o quadro teórico de compreensão do IDE. Neste contexto, a presente análise é baseada na hipótese do Investment Development Path (IDP), introduzida por dunning (1981, 1986) e desenvolvida por dunning e narula (1996) e durán e úbeda (2001), a qual associa a posição líquida de investimento directo no estrangeiro ou Net Outward Investment de um país com o seu nível de desenvolvimento económico expresso pelo Produto Interno Bruto per capita. Desta forma, procede-se no presente artigo à verificação desta hipótese em Portugal, na União Europeia, nos E.U.A. e no Japão, no horizonte temporal de 1990 a 2006, recorrendo ao modelo econométrico de dados em painel com efeitos fixos. Dedica-se igualmente uma particular atenção a Portugal e Espanha, com vista a enquadrar as economias vizinhas no padrão de evolução previsto pelo IDP, e assim retirar ilações quanto à capacidade competitiva dos dois países à escala internacional.
    Keywords: Empresas Multinacionais; Investimento Directo Estrangeiro; Investment Development Path; Portugal; Espanha
    JEL: F21 C23
    Date: 2009–01
  12. By: Susaeta, Lourdes (IESE Business School); Pin, Jose R. (IESE Business School); Belizon, M. Jesus (IESE Business School)
    Abstract: En este documento se lleva a cabo un estudio de tipo cuantitativo, con el objetivo de conocer, a través de la percepción de sus altos directivos, los distintos aspectos y factores que conforman la reputación del CEO, y analizar las diferencias que existen entre los diferentes sectores. El análisis empírico se basa en un estudio cuantitativo de los datos obtenidos en una encuesta realizada en marzo de 2007 en España. El documento concluye que las tres características más relevantes del perfil reputacional del CEO son: la credibilidad, la visión estratégica y la comunicación externa, constituyendo la mayor aportación de este trabajo, las características diferenciadoras y comunes entre unos sectores y otros.
    Keywords: reputación; análisis sectorial;
    Date: 2008–11–05
  13. By: Antonio Cabrales; Raffaele Miniaci; Marco Piovesan; Giovanni Ponti
    Abstract: This paper reports a 3-phase experiment on a stylized labor market. In the first two phases, agents face simple games, which we use to estimate subjects’ social and reciprocity concerns, together with their beliefs. In the last phase, four principals, who face four teams of two agents, compete by offering agents a contract from a fixed menu. Then, each agent selects one of the available contracts (i.e. he “chooses to work” for a principal). Production is determined by the outcome of a simple e ort game induced by the chosen contract. We find that (heterogeneous) social preferences are significant determinants of choices in all phases of the experiment. Since the available contracts display a trade-o between fairness and strategic uncertainty, we observe that the latter is a much stronger determinant of choices, for both principals and agents. Finally, we also see that social preferences explain, to a large extent, matching between principals and agents, since agents display a marked propensity to work for principals with similar social preferences.
    Date: 2009–02

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