nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒05‒16
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Technological Diversity and Future Product Diversity in the Drug Industry By Uwe Cantner; Tatiana Plotnikova
  2. Managerial incentive and the firms' propensity to invest in product and process innovation By R. Cellini; L. Lambertini; A. Sterlacchini
  3. In search of excellence - Innovation contests to foster innovation and entrepreneurship in Portugal By Adão Carvalho
  4. Competitive Innovation with Codified And Tacit Knowledge By Tetsugen Haruyama
  5. Competition for Access: Spectrum Rights and Downstream Access in Wireless Telecommunications By Michiel J. Bijlsma; Gijsbert T.J. Zwart
  6. The Impact of Aid on Growth Revisited: Do Donor Motives Matter? By Kilby, Christopher; Axel Dreher
  7. Entry, Ownership Form, and Spatial Location: An Analysis of the Hotel Industry By Helmers, Claes Gustav; Connor, John M.; Florax, Raymond J.G.M.; Vroom, Govert
  8. Institutional Determinants of New Firm Entry in Russia: A Cross Regional Analysis By R. L. Bruno; M. Bytchkova; S. Estrin
  9. Effects of Supply Chain Management for Food and Grocery Companies By Dooley, Frank J.; Martens, Bobby J.; Blomeke, Phillip
  10. A Global Network and its Local Ties. Restructuring of the Benetton Group By Giuseppe Tattara; Paolo Crestanello
  11. Influence of integration of Czech Republic into EU on form and protection of economic competition By Pellešová, Pavlína
  12. Competitiveness of Colombian Departments observed from an Economic geography Perspective By Lotero Contreras, Jorge; Posada Duque, Héctor Mauricio; Valderrama, Daniel

  1. By: Uwe Cantner (Friedrich-Schiller-University, Jena, Department of Economics, Chair of Economics); Tatiana Plotnikova (Friedrich-Schiller-University, Jena, GSBC-EIC The Economics of Innovative Change)
    Abstract: This paper deals with the topic of related R&D and innovation strategies of large firms. We ask what determines the diversity of a firm's product portfolio. More specifically, we try to explain large firms' expansion into new product markets driven by the characteristics of their technological knowledge. Empirically, we study firms in the pharmaceutical and biotech industries, using relevant data on product development and technological knowledge. We find a positive relationship between the diversity of a firm's future product portfolio and the diversity of its stock of technological knowledge. This relationship becomes weaker when the breadth of technological knowledge increases.
    Keywords: Product diversity, technological diversity, product relatedness, technological relatedness, coherence
    JEL: O32 L25 L65
    Date: 2009–05–05
  2. By: R. Cellini; L. Lambertini; A. Sterlacchini
    Date: 2009–02
  3. By: Adão Carvalho (Universidade de Evora, Departamento de Economia, CEFAGE-UE)
    Abstract: Numerous initiatives of different nature have taken place in Portugal over the recent years aiming at raising consciousness of the importance and advantages of innovation and entrepreneurship, persuading businesspeople to place innovation as strategic intent and encouraging would-be entrepreneurs to come forward with novel businesses ideas. Innovation contests are but one of such initiatives. From sporadic events before 2000, the phenomenon gained unprecedented dimension and growing sophistication at several levels, including the number of innovation contests launched annually, number and kind of organizations involved, volume and kind of prizes and support in business plan construction. Today, this is a popular means that a range of different organizations use to uncovering novel business ideas and promoting innovation and entrepreneurship. Based on a large data base purposefully built for this research by the author, this paper aims to describe the phenomenon of innovation contests in Portugal and characterize its evolution over the period 2000-2008. Findings show a general use of contests as instruments to promote and prize innovation across a range of target audiences going from high school students to established businesses; an increasing trend in the number of innovation contests launched annually in Portugal; high rates of rotation of the innovation contests launched annually over the period under analysis; a growing diversification in the type of promoters which is particularly clear from 2004 onwards; and that private firms, higher education institutions and business associations appear to be gaining a prominent role as promoters of innovation contests.
    Keywords: Innovation contest, innovation, entrepreneurship, Portugal.
    JEL: O31 L26
    Date: 2009
  4. By: Tetsugen Haruyama (Graduate School of Economics, Kobe University)
    Abstract: R&D-based models of endogenous technical progress rest on a premise that technical progress is driven by profit-seeking entrepreneurs. This literature led to a dominant view that endogenous technical advance is not consistent with perfect competition with constant returns to scale. Departing from this dominant perspective, we demonstrate that technical progress endogenously occurs in a perfectly competitive economy under constant returns to scale in rivalrous inputs. Our result is based on a hypothesis that R&D creates codified and tacit knowledge as joint products. Empirical and case studies are discussed to support the hypothesis. Using the model, we demonstrate that stronger patent protection can encourage or discourage R&D, depending on the size of an economy.
    Date: 2009–04
  5. By: Michiel J. Bijlsma; Gijsbert T.J. Zwart
    Abstract: In the market for wireless telecommunications, radio spectrum is an essential input. We study downstream entry and capacity choice in this market, where licenses to use radio spectrum are owned by vertically integrated duopolists. Prior to network construction, these incumbents may offer contracts for capacity to an entrant, granting service-based access on the network they will construct. Alternatively, when spectrum trading is allowed, they may sell part of their license, allowing the entrant to build its own network and enter as an infrastructure player. We find that in this Cournot setting, access is generally provided, as incumbents compete to appropriate the profits of serving a differentiated market through the entrant. Although selling spectrum rights instead of network capacity leads to a loss of economies of scale in infrastructure construction, infrastructure-based entry may dominate as a result of a strategic effect. By delegating capacity choice to the entrant, the access providing incumbent can commit to compete more aggressively, causing its rival incumbent to reduce capacity. A lower aggregate capacity will increase prices and thereby profits.
    Keywords: Telecommunications; Vertical Integration; Vertical Foreclosure; Strategic Delegation
    JEL: L13 L42 L96
    Date: 2009–03
  6. By: Kilby, Christopher (Department of Economics and Statistics, Villanova School of Business, Villanova University); Axel Dreher (University of Goettingen)
    Abstract: The typical identification strategy in aid effectiveness studies assumes donor motives do not influence the impact of aid on growth. We call this homogeneity assumption into question, first constructing a model in which donor motives matter and then testing the assumption empirically.
    Keywords: Growth, Aid, Politics
    JEL: F35 O40
    Date: 2009–04
  7. By: Helmers, Claes Gustav; Connor, John M.; Florax, Raymond J.G.M.; Vroom, Govert
    Abstract: This paper analyses the impact of ownership type on the locating behavior and capacity choice of prospective entrant hotels. An important aspect which has often been neglected in the entry literature is the relevance of the ownership that defines an establishment. A hotel outlet can be company-owned, franchised, or independently owned. As this is an important driver of the incentive structure for a firm as well as a strategic indicator for its (prospective) competitors, this paper argues that ownership form is a necessary explanatory factor in market conduct analysis. We show using a spatial lag model that a disaggregated analysis provide a good understanding of market interaction among hotels.
    Keywords: Marketing,
    Date: 2009
  8. By: R. L. Bruno; M. Bytchkova; S. Estrin
    Date: 2008–10
  9. By: Dooley, Frank J.; Martens, Bobby J.; Blomeke, Phillip
    Abstract: Mass merchandisersâ entry into food retailing threatens traditional grocersâ market share. In response, traditional grocers and food manufacturers adopted Efficient Consumer Response (ECR) as an industry-wide set of supply chain management strategies that focused on cutting costs and improving product assortment, thereby improving inventory and financial performance levels. However, research findings and trade press reports question whether adopting supply chain management strategies will achieve these goals. The results of this analysis strongly support the proposition that the adoption of an ECR strategy pays off. However, the growth in profit does not appear to come from improved performance for traditional inventory measures. The driving force behind these improved financial measures can be attributed to the cash conversion cycle. Thus, the time spent in developing close relationships with buyers or suppliers and the investments in information technology have been justified. Size matters; ECR is more effective due to economies of scale and information technology. However, this may lead to more consolidations because all firms may not have sufficient capital to invest in ECR initiatives. In short, to remain competitive ECR strategies should strongly be considered by firms that are lagging in implementation.
    Keywords: Efficient Consumer Response, supply chain management, inventory, cash conversion cycles, financial performance, grocery, food manufacturing, Financial Economics, Industrial Organization,
    Date: 2009
  10. By: Giuseppe Tattara (Department of Economics, University Of Venice Cà Foscari); Paolo Crestanello (CEG, Treviso. University Of Venice Cà Foscari)
    Abstract: The paper investigates the change in strategy of the Benetton Group, since the mid nineties, in face of the severe intensive competition in the international fashion market. New competitors, in particular the European brands Zara, Mango and H&M, have challenged the Benetton position in the Italian and the European clothing market and have pushed the Group towards cost reduction through globalization of his suppliers. Benetton is a vertically integrated producer that controls (in different ways) the whole value chain from textile raw materials to the sales to the consumers. Till 2000 Benetton made part of its production in its own factories and through a wide network of domestic sub-contractors, mainly specialized in sewing. Now Benetton has drastically moved to a new strategy, abandoning Italy and organizing production around a dual supply chain: close locations (East Europe and North Africa) for quick production and far away locations (Asia) for more standardised products. The paper discusses also the redefinition of competences for the Treviso clothing district, where Benetton traditional sub-contractors have been in few years, drastically curtailed. Benetton restructuring marks the transition to a new network of competences between agents in the district.
    Keywords: Global value chains, Internationalization, Benetton, Apparel
    JEL: L22 L23 L67
    Date: 2009
  11. By: Pellešová, Pavlína
    Abstract: The article is focused on area of economic competition. The basic pre-requisite of economic competition is assuring of freedom of entrepreneurship, freedom of partners choice, possibility to enter in and secede from branches, functional value system which ensures transparency of market and informed ness of subjects. Policy of protection of economic competition is actively executed policy which contributes to maintenance of competitive environment, which eliminates obstacles that weaken competition. Within the frame of EU it is a coordinated policy. In Czech Republic economic competition is modified by economic competition law which is asserted by Board of protection of economic competition as central administrative authority. Authoress adverts to problems connected with protection of economic competition, e.g. in connection with verification of fusions, unfair competition, exploitation of dominating position in the market.
    Keywords: Economic competition; competition law; competition; competitive advantage; limitation of competition; market power; dominating position; fusion; unfair competition; Board of protection of economic competition.
    JEL: O11 O12
    Date: 2008–05–05
  12. By: Lotero Contreras, Jorge; Posada Duque, Héctor Mauricio; Valderrama, Daniel
    Abstract: Summary In this paper, we analyze the regional competitiveness concept and its measurement using the old and New Trade Theory and the New Economic Geography. The analysis shows that the competitiveness has no sense when is applied to the goods market, while has sense (however, not in all situations) when is applied to the productive factors market. Contrary to most approaches and measurements of the competitiveness of Colombian departments, we show that is possible to obtain simple measures which, in addition to being consistent with the conceptual framework of economic geography, are the product of the combination of a small number of variables
    Date: 2009–04–22

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