nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒04‒05
thirteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Technological Diffusion and Dynamic Gains from Trade By Eleonora Cavallaro; Marcella Mulino
  2. The Age Effect in Entrepreneurship: Founder's Tenure, Firm;Performance, and the Economic Environment By Marco Cucculelli; Giacinto Micucci
  3. How does Tacit Knowledge Transfer Influence Innovation Speed? The Case of Science Based Entrepreneurial Firms By M. KNOCKAERT; D. UCBASARAN; M. WRIGHT; B. CLARYSSE
  5. Quality Management System an ace in the sleeve of the SME to gain competitiveness on the international markets By Hmelnitchi, Carmen; Neamtu, Ion
  6. Team Vision in Product Development: How Knowledge Strategy Matters? By ELENA REVILLA
  7. Capacidades y prácticas empresariales como mecanismo de aprendizaje organizacional y su aplicación a la gestión del Personal: Caso Multinacionales By Cerna, Luis Guillermo
  8. Environmental policy without costs? A review of the Porter hypothesis By Brännlund, Runar; Lundgren, Tommy
  9. Revisiting Strategic versus Non-strategic Cooperation By Reuben, E.; Suetens, S.
  10. General Purpose Technologies and their Implications for Schumpeterian Growth and Trade By Petsas, Iordanis
  11. The Italian port system: a survey on competitiveness and development factors By Enrico Beretta; Alessandra Dalle Vacche; Andrea Migliardi
  12. Working with Distant Researchers – distance and content in university-industry interaction By Broström, Anders
  13. Entry barriers, competition, and technology adoption By Lei Fang

  1. By: Eleonora Cavallaro; Marcella Mulino
    Abstract: We consider a technologically backward country and analyse the implications on competitiveness and long-run growth of the quality content of traded goods. We build an endogenous growth model where quality improvements stem from research activity taking place in the R&D sector, and where the relative quality content of goods matter for export and import demand functions. We show that the possibility of an optimal growth with a balanced current account and no adverse terms-of-trade effects is closely related to the evolution of the country’s technological distance with respect to the trade partner: with an unfavourable quality-dynamics the country cannot engage successfully in “non-price” competition. Thus, long-run growth is coupled with an adverse export to import ratio, and a balanced trade requires a continuous offsetting fall in relative prices, either through devaluations or wage deflations. We then allow for international knowledge spillovers that increase the productivity of labour resources devoted to research in a way which is proportional to the technological distance between the countries. We show that the greater the country’s ability to absorb foreign knowledge and improve upon foreign technologies, the greater the gains in competitiveness, and the benefits to long-run growth. A numerical simulation confirms our findings.
    Keywords: Vertical innovation; Technological change and catching up; Economic growth of open economies
    JEL: O33 F43
    Date: 2009–02
  2. By: Marco Cucculelli (Universit… Politecnica delle Marche, Department of Management and Insutrial Organization); Giacinto Micucci (Banf of Italy)
    Abstract: This paper tests the effect of founder's tenure on firm performance by taking into account the impact of the changes occurring in the economic environment. We use a large dataset of founder-run firms that includes, in addition to financial data, company data directly collected through a survey of about 2,000 Italian firms. Unlike the negative relationship reported in most empirical papers, we found an inverted U-shaped relationship between founder-CEO tenure and firm performance. This relationship is strongly influenced by the characteristics of the environment in which the company competes: while experience plays a key role in fostering performance in less innovative and less competitive sectors, a dynamic environment makes the performance of the firm less responsive to the benefits of founder tenure. From the viewpoint of policy, growing environment dynamism calls for greater efficiency of the market for corporate control, in order to assure a continued match between skills of CEOs and the external environment.
    Keywords: ageing, changing environment, entrepreneurship, founder-run firms
    JEL: G34 J24 L25
    Date: 2009–03
    Abstract: The increased pressure put on public research institutes to commercialize their research results has given rise to an increased academic interest in technology transfer in general and science based entrepreneurial firms specifically. By building on innovation speed and knowledge literatures, this paper aims to improve understanding of how tacit knowledge can be effectively transferred from the research institute to the science based entrepreneurial firm. More specifically, we assess under which conditions tacit knowledge contributes to the generation of innovation speed, which is a crucial success parameter for technology based ventures. Using an inductive case study approach, we show that tacit knowledge can only be transferred effectively when a substantial part of the original research team joins the new venture as founders. Our analysis also reveals that the mere transfer of tacit knowledge is insufficient to ensure the successful commercialization of technology. Commercial expertise is also required on the condition that the cognitive distance between the scientific researchers and the person responsible for market interaction is not too large. Our findings have implications for science based entrepreneurs, technology transfer officers, venture capitalists, policy makers and the academic community.
    Keywords: science based entrepreneurial firms; tacit knowledge; technology transfer; innovation speed; cognitive distance
    Date: 2009–01
    Abstract: Industry specialization can be seen as a differentiation strategy of the auditor. Previous research demonstrates the advantages of such a strategy (e.g., DeFond et al., 2000; Balsam et al., 2003; Dunn and Mayhew, 2004). The literature uses two constructs to measure specialization, the market share of an auditor in a specific market, and a portfolio approach focusing on the major industries in the portfolio of clients of the auditor (e.g., Hogan and Jeter, 1999; Balsam et al., 2003; Neal and Riley, 2004).<br><br>The objective of this paper is to investigate whether auditor specialization is consistent across countries. Compared to competing auditors, an industry specialized auditor must have unique assets that result in clients in that specific industry systematically choosing the specialist auditor. Logically, this specialist knowledge can translate into an audit methodology that is specifically suited for this industry. Large audit firms make significant investments in developing tools to assist auditors in applying this methodology. As the specialized knowledge of auditors can be transferred from one country to another, we can expect that industry specialization is consistent across countries for international audit firms. If an audit approach, specifically designed for an industry, is transferred through manuals to another country, one can expect that the audit firm has the same competitive advantage in that other country. This would result in consistent patterns in international auditor specialization. If this can not be observed, it might mean that the audit firm does not have an audit methodology that results in competitive advantage or that this methodology is not transferred from one country to another. <br><br>We use data on 55 235 European companies to analyze auditor specialization and find a relative degree of consistency across countries. The paper starts with a review of the relevant literature, describes our data and presents the results of our analysis.
    Date: 2009–03
  5. By: Hmelnitchi, Carmen; Neamtu, Ion
    Abstract: After the adhering of Romania at European Union, the level of competition became very high, so, it is vitally important for entrepreneurs know what helps company to be successful on an international market. There are many factors which can lead to be successful in the business, but quality is the real arm in the „battle” for gaining of competitivness on international market. So that, obtaining quality products and services have to be the principal strategic objective and the SME have to do all the neccesary efforts for this. Implementing of one efficace quality management system compliant with ISO 9001 requirements is a true „ace in the sleeve of the SME” for gaining competitiveness.
    Keywords: SME;management
    JEL: D81 D2 F0
    Date: 2009–03–31
  6. By: ELENA REVILLA (Instituto de Empresa)
    Abstract: In today´s more complex multinational and technologically sophisticated environment, the group has re-emerged in importance as the project team. Work teams are important to organizations in general, but are especially critical in product development because they span many functional areas including engineering, marketing, manufacturing, finance, etc, and new product teams must frequently be composed of individuals from different backgrounds and perspectives. In these circumstances, this paper addresses the contingency role that knowledge strategy plays in explaining the relationship between team vision and product development performance. After studying the team vision on 78 new product deve
    Keywords: Product development , Team vision, Knowledge strategy
    Date: 2009–03
  7. By: Cerna, Luis Guillermo
    Abstract: The most important benefit of this investigation is the identification of the best capacities and managerial practices, used by multinational companies on the global economic market, in its application as a mechanism of learning and management of personnel. This study defines the spectrum of universal managerial practices and investigates the capacities that are related with the management of the business. The proposed models ([4cC] managerial management and [4cP] management of personnel) have been empirically validated under the theory of resources and capacities. The empirical multivariate analysis and the demonstration of the raised hypotheses, indicates that if these managerial practices are applied consistently with the resources and capacities of the organization (internal adjustment) and they are congruent to the strategy of the business (external adjustment), they create dynamics and interdependency with the capacity of management of personnel, through processes of continuous learning, resulting in positive organizational impacts.
    Keywords: Global market; multinationals; managerial universal practices; competitive advantage; resources and capacities theory.
    JEL: M14 M1 M5 M12
    Date: 2008–05–29
  8. By: Brännlund, Runar (Department of Economics, Umeå University); Lundgren, Tommy (Department of Forest Economics, Swedish University of Agricultural Sciences)
    Abstract: This paper reviews the theoretical and empirical literature connected to the so called Porter Hypothesis. That is, to review the literature connected to the discussion about the relation between environmental policy and competitiveness. According to the conventional wisdom environmental policy, aiming for improving the environment through for example emission reductions, do imply costs since scarce resources must be diverted from somewhere else. However, this conventional wisdom has been challenged and questioned recently through what has been denoted the “Porter hypothesis”. Those in the forefront of the Porter hypothesis challenge the conventional wisdom basically on the ground that resources are used inefficiently in the absence of the right kind of environmental regulations, and that the conventional neo-classical view is too static to take inefficiencies into account. The conclusions that can be made from this review is (1) that the theoretical literature can identify the circumstances and mechanisms that must exist for a Porter effect to occur, (2) that these circumstances are rather non-general, hence rejecting the Porter hypothesis in general, (3) that the empirical literature give no general support for the Porter hypothesis. Furthermore, a closer look at the “Swedish case” reveals no support for the Porter hypothesis in spite of the fact that Swedish environmental policy the last 15-20 years seems to be in line the prerequisites stated by the Porter hypothesis concerning environmental policy.
    Keywords: Environmental policy; the Porter hypothesis; productivity; profitability
    JEL: D20 H23 Q52 Q55 Q56
    Date: 2009–03–26
  9. By: Reuben, E.; Suetens, S. (Tilburg University, Center for Economic Research)
    Abstract: We use a novel experimental design to disentangle strategically- and non-strategically-motivated cooperation. By using contingent responses in a repeated sequential prisoners’ dilemma with a known probabilistic end, we differentiate end-game behavior from continuation behavior within individuals while controlling for expectations. This design allows us to determine the extent to which strategically-cooperating individuals are responsible for the so-called endgame effect. Experiments with two different subject pools indicate that the most common motive for cooperation in repeated games is strategic and that the extent to which endgame effects are driven by strategically-cooperating individuals depends on the profitability of cooperation.
    Keywords: reputation building;strong reciprocity;conditional cooperation;strategic cooperation
    JEL: C91 D01 D74
    Date: 2009
  10. By: Petsas, Iordanis
    Abstract: General purpose technologies (GPTs) are drastic innovations, such as electrification, the transistor, and the Internet, that are characterized by the pervasiveness in use, innovational complementarities, and technological dynamism. The model develops a two-country (Home and Foreign) dynamic general equilibrium framework and incorporates general purpose technology diffusion within Home that exhibits endogenous Schumpeterian growth. The model studies the effects of the diffusion of the general purpose technology on the pattern of trade and Home’s relative wage. Based on specific assumptions, the adoption of a GPT by a particular industry generates an increase in the productivity of manufacturing workers at Home. By assumption, the diffusion of a GPT across industries is governed by S-curve dynamics, and the diffusion of the GPT within an industry at Home is considered exogenous. The model analyzes the long-run and transitional dynamic effects of a new GPT on trade patterns, product cycles and (transitional) divergence in per-capita growth rates between the two countries.
    Keywords: General purpose technologies, Schumpeterian growth, comparative advantage, scale effects, R&D races.
    JEL: L2 F10 O3 O4 L1
    Date: 2009–03–15
  11. By: Enrico Beretta (Bank of Italy, Branch of Genoa, Research Office); Alessandra Dalle Vacche (Bank of Italy, Branch of Genoa, Research Office); Andrea Migliardi (Bank of Italy, Branch of Genoa, Research Office)
    Abstract: Between 2003 and 2007 the volume of container traffic handled by the national port system increased only slightly despite the strong growth of maritime traffic in the Mediterranean Sea. This was due both to national economic stagnation and to the inability of the ports to extend their operational area further afield because of the lack of good port and land infrastructure. This paper aims to investigate these issues on the basis of a survey of the national agents of the main global shipping companies. The main weaknesses in competitiveness regard land infrastructure; other problems involve inefficiencies in national ports&#x2019; activities and insufficient infrastructure. National logistics and the supply chain are fragmented compared with the integrated systems of other countries. In the opinion of the shipping agents, in addition to improvements in infrastructure, it is necessary to liberalize rail transportation and to modernize port governance, especially by reducing red tape and granting wider financial autonomy to the port authorities.
    Keywords: ports, logistics, transport infrastructure
    JEL: L92 R41 R48
    Date: 2009–02
  12. By: Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper studies the role of geographic proximity for interaction on R&D, by exploring the special case of university-industry contacts. While numerous studies find that geographic proximity facilitates spillover effects between university and industry by utilising evidence from e.g. patenting and publishing activities, the geographical dimension is largely understudied in studies that report evidence from direct interaction. To explore when geographical proximity matters for university-industry interaction, a series of interviews with R&D managers in Swedish engineering firms is conducted. These interviews suggest that linkages in geographical proximity are more likely to generate impulses to innovation and create significant learning effects at the firm. Similarly, geographic proximate interaction is more likely to successfully contribute to R&D projects with short time to market. For long-term R&D projects, geographic proximity is generally seen as a less critical factor. A survey to 425 R&D managers in Swedish engineering firms provides evidence that supports these hypotheses.
    Keywords: R&D collaboration; innovation collaboration; university; technology transfer
    JEL: L21 L23 O32
    Date: 2009–03–25
  13. By: Lei Fang
    Abstract: There are large differences in income per capita across countries. Growth accounting finds that a large part of the differences comes from the differences in total factor productivity (TFP). This paper explores whether barrier to entry is an important factor for the cross-country differences in TFP. The paper develops a new model to link entry barriers and technology adoption. In the model, higher barriers to entry effectively reduce entry threat, and lower entry threat leads to adoption of less productive technologies. The paper demonstrates that technology adopted in the economy with entry threats is at least as good as the technology adopted in the economy without entry threats. Moreover, the paper presents numerical simulations that suggest entry barriers could be a quantitatively important reason for cross-country differences in TFP and are more harmful to productivity in the countries with monopolists facing inelastic demand. incompl s
    Keywords: entry barriers, technology adoption, total factor productivity CL HG2567 A4A5
    Date: 2009

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.