nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒06‒17
thirteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The competitive repositioning of automotive firms in Turin: innovation, internationalisation and the role of ICT By Cristina CASTELLI; Massimo FLORIO; Anna GIUNTA
  2. The Natuzzi group and the Bari -Matera (Italy) upholstered furniture district: a case study of internationalisation in a traditional industry By Giovanni BELGIOJOSO; Cristina CASTELLI; Sara COLAUTTI; Massimo FLORIO
  3. Strategia ed ecologie tra risorse, fiducia e relazioni nell’impresa-network By Luciano PILOTTI
  4. The internationalisation of the automotive supply chain: empirical evidence from Italian firms By Emanuele BACCHIOCCHI; Massimo FLORIO; Anna GIUNTA
  5. Regulatory strategies By Ojo, Marianne
  6. Integrated Political Strategy By John M. de Figueiredo
  7. Benchmarking for SMEs: toward a competitive rating system By Ivan DE NONI; Luigi ORSI; Diego TAVECCHIA
  8. Tourism and economic dimension in Italy By Adalberto ALBERICI
  10. Channels of transmission of inequality to growth: A survey of the theory and evidence from a Portuguese perspective By Adelaide Duarte; Marta Simões
  11. Tourism and growth in a cross-section of countries By Paolo Figini; Laura Vici;
  12. Endogenous Cost-Effectiveness Analysis in Health Care Technology Adoption By Anupam Jena; Tomas Philipson
  13. Effecting Cooperation By Olivier Compte; Andrew Postlewaite

  1. By: Cristina CASTELLI; Massimo FLORIO; Anna GIUNTA
    Abstract: Following the increasing competitive pressure and the emergence of new industrial poles within the auto industry, Italian firms have been the protagonists of an intense reorganisation, which is still ongoing. This case-study involves 13 supplier firms, operating in the automotive industry, localised in Turin, that have adopted a series of strategies aimed at improving their international competitiveness. The empirical findings show that there is a particularly strong innovative drive for the interviewed firms to position themselves in activities with greater added value and to undertake internationalisation strategies, from the “lighter” to the more “complex” forms, coupled with a use of information and communication technologies.
    Keywords: Innovation, internationalisation, ICT, Automotive Industry
    JEL: O31 L62 L63 F23
    Date: 2008–12–18
  2. By: Giovanni BELGIOJOSO; Cristina CASTELLI; Sara COLAUTTI; Massimo FLORIO
    Abstract: The case-study focuses on the strategies adopted by the Natuzzi Group, world leader of the upholstered furniture sector, located in the Bari-Matera district (Southern Italy), to face increasing global competition and on their effects. In particular we consider the modes and determinants of productive internationalisation, carried out since 2000 by Natuzzi in China, Brazil and Romania to produce middle-low end products. By improving the competitiveness of the price-sensitive segment, the strategy contributed to the successful expansion of the Group until 2002. However, high range products, manufactured in Italy, record decreasing sales especially on the US market, despite the company’s efforts in R&D and marketing and its investments in information technology. Moreover, due to Natuzzi’s considerable weight in the district, the Group’s performance impacts on the network of subcontracting firms, where a restructuring process is underway, raising questions about the evolution of the district.
    Keywords: Internationalisation, industrial district, subcontracting
    JEL: F20 R32 L14
    Date: 2008–12–18
  3. By: Luciano PILOTTI
    Abstract: In that work we explore the ability to learning-by-learning of the SME-network as relational capital of sustainable advantage. The nature of the most of those abilities connect resources and competences useful to realize successful of the firm in the long run in the form of intangibles and circulation between tacit and codified resources. This happens “mobilizing creatively” the chain relationship between best practices and standard of management procedure, innovation and communication of it in a diffuse promotion of human creative resources, by both level individuals and community, realizing the interests of all stakeholders (internal and external ones). In this perspective is important to develop and expand the value of identity as intangible resource of visibility and attractor of the most creative resources from environment (real and virtual, close or far). The strategy of the firm assumes a relational form as able to connect the most creative resources and attracting new ones. Sme-network of firms becomes more able to adaptability to the environment in a co-evolutionary trajectory and transformation of it. Interaction learning-by-learning is the key to build and rebuild a sustainable competitive advantage in the long run as an ecological connecting bridge with the future potential knowledge resources.
    Keywords: Networks, SME, relational capabilities, innovation, ecologies
    JEL: M21 M13 M14
    Date: 2008–06–01
  4. By: Emanuele BACCHIOCCHI; Massimo FLORIO; Anna GIUNTA
    Abstract: The aim of this paper is to study the characteristics of the internationalisation process and to identify its determinants in a representative sample of 786 firms in the Italian automotive chain. We carried out a a multinomial logit and an ordered probit analyses. The main findings of the econometric analyses based on the available micro-evidence are that: a) the firms in the Italian supply chain engage in complex modes of internationalisation; b) the individual firm’s characteristics play a significant role in the probability of internalization; c) the firms located in the province of Turin have a clear localisation advantage, because of an “industrial district” effect. We also observe that internationalisation is negatively correlated to the share of Fiat, the Italian dominant car maker, in the supplier’s sales
    Keywords: Internationalisation, Firm Behaviour, Auto Industry, Qualitative Choice Models
    JEL: D21 L62 F23 C25
    Date: 2008–10–13
  5. By: Ojo, Marianne
    Abstract: Over the years, there has been a shift from a wide command-and-control style of supervision whereby the regulator imposes detailed rules with which regulators supervise to one which consists of risk based regulatory strategies. ‘Enforced Self Regulation’, a regulatory strategy whereby negotiation takes places between the State and the individual firms, lies between the command-and-control style of supervision and meta risk regulation in that firms are still required to regulate but according to their own models. It differs from the traditional command-and-control style of bank supervision in that firms and not the regulator, are required to regulate. It is similar to meta-risk regulation in that the individual firm’s model is taken into consideration in regulating such firms. Whilst the merits and disadvantages of the individual regulatory strategies are considered, this paper concludes that all regulatory strategies should take into consideration the importance of management responsibilities – both on individual and corporate levels.
    Keywords: command;control;regulation;meta;risk
    JEL: K2
    Date: 2008–09
  6. By: John M. de Figueiredo
    Abstract: This paper reviews the literature on corporate political strategy and identifies a number of open research questions and streams for potential investigation. The paper develops a framework to explain why, when, and how a firm will pursue multi-forum political action as part of its non-market and integrated strategy.
    JEL: K23 P16
    Date: 2009–06
  7. By: Ivan DE NONI; Luigi ORSI; Diego TAVECCHIA
    Abstract: The main aim of this paper is to develop a qualitative and quantitative Benchmarking model for SMEs. The Benchmarking is a methodology base on a comparison among performances born in some international industrial groups to answer to the strong competitive dynamics on the 70s. This approach to a model of territorial benchmarking for SME is based on a research project developed by “CNA Emilia Romagna”, “Ecipar” and “CNA Innovazione” with the scientific supervision of the University of Milan and the Association Benchmarking for Success (Italy) in the perspective to support competitiveness, innovation and development of SMEs’ businesses. The purpose of this project is to develop an integrated model of territorial benchmarking that allows estimating the value of the interaction processes that are developed in a specific territory and that help defining the potential business and the dynamic capability of a firm. The database with all budget data of the SMEs is offered by CNA itself. This database includes more or less 30,000 enterprises divided by firms with ordinary accounting (with data about economic account and statement of assets and liability) and with simplified accounting (with data about economic accou
    Keywords: SMEs, Benchmarking, Rating Model, Performance Evaluation.
    JEL: M10
    Date: 2007–11–19
  8. By: Adalberto ALBERICI
    Abstract: The peculiarity of the tourist sector requires the recognition of the strategic significance of training and development of human resources, as an authentic and inescapable investment for the future. In this respect, both operative (for a direct relationship with the customer), professional (for the proposal and development of the new tourist supply, their management and organization), and managerial resources are critical
    Keywords: Location, Tourism, Network, Tourism industry, Territory
    JEL: Q5
    Date: 2007–10–11
  9. By: Alfirevic, Niksa (University of Split); Pavicic, Jurica (University of Zagreb); Znidar, Kresimir (Valicon plc)
    Abstract: In this paper, authors apply the 'sense-and-respond' model to understanding and modeling reactions of customers in the wider South-East European (SEE) region to the actual economic crisis. As results of the previous research indicate that the role of contemporary knowledgebased tools can serve as a complement, rather as a replacement for the 'traditional' research methodology, the role of universities and other knowledge providers to the business community in responding to the economic crisis is also critically examined. The paper suggests that development and the use of a modified 'sense-and-response' model at the industry/cluster level could assist all economic and social actors in relieving the consequences of the economic crisis/recession, as well as affirm the role of the university in the process.
    Keywords: global economic crisis; knowledge based approach
    JEL: G28
    Date: 2009–06–01
  10. By: Adelaide Duarte (Faculty of Economics/GEMF, University of Coimbra); Marta Simões (Faculty of Economics/GEMF, University of Coimbra)
    Abstract: We review the theoretical and empirical literature on the relationship between inequality and economic growth from the perspective of the Portuguese economy in order to identify the correct (predicted) sign for the relationship in this particular country and the underlying mechanisms that explain it. Different mechanisms relating inequality and economic growth can be at stake explaining why different countries can experience different outcomes in the same period of time or why the same country experiences different outcomes in different periods of time. It is thus fundamental to correctly identify the channels of transmission of inequality to growth in the Portuguese economy. Ideally, all the mechanisms selected should be tested, but prior judgments should also lead us to produce a ranking of the mechanisms according to its relevance for the economy under analysis. This correct identification and ranking leads to more accurate policy recommendations as far as redistributive policies for the Portuguese economy are concerned.
    Keywords: Inequality; Growth; Portugal.
    JEL: O29 O52
    Date: 2009–07
  11. By: Paolo Figini (University of Bologna, Itlay and The Rimini Centre for Economic Analysis, Rimini, Italy); Laura Vici (University of Bologna, Itlay and The Rimini Centre for Economic Analysis, Rimini, Italy);
    Abstract: We provided an empirical assessment of the relationship between tourism specialisation and economic growth, by updating findings of previous papers written on this issue. We used data for more than 150 countries covering different time spans between 1980 and 2005. Contrary to previous findings (e.g., Brau et al., 2004 and 2007), tourism-based countries did not grow at a higher rate than non-tourism based countries, except for the 1980-1990 period for which, however, data on international tourism are not fully reliable.
    Keywords: tourism specialisation, economic growth, developing countries
    Date: 2009–01
  12. By: Anupam Jena; Tomas Philipson
    Abstract: As health care costs continue to rise, governments and private payers are being forced to make difficult coverage decisions about new health care treatments. Cost-effectiveness (CE) analysis is the main method used to prioritize this spending. The self-evident efficiency rationale for CE is that resources should be spent where they have the highest health impact. This has led to perhaps the largest field in health economics which attempts to provide better estimates of value through CE analysis. However, the costs invariably used in CE analysis are prices set by producers rather than resources used to produce treatments. Therefore, observed CE levels are endogenous because the pricing of new technologies is chosen to maximize profits. This is important because optimal prices, and hence observed CE levels, are affected by demand factors such as patient/doctor demand and payer adoption policies. This implies that traditional measures of “costs†reflect these demand-determined mark-ups rather than resource costs and moreover, CE-based reimbursement policies affect the endogenous CE levels payers observe. Reimbursement based on endogenous CE may therefore bear little relationship with efficient use of scarce medical resources. Using data from technology appraisals by the National Institute for Health and Clinical Excellence (NICE), we test for conditions under which adoption based on standard CE analysis may lead to adoption of more inefficient technologies in terms of resource use.
    JEL: I0 I1 I11 I18
    Date: 2009–06
  13. By: Olivier Compte (Paris School of Economics, Ecole Nationale des Ponts et Chaussées, CERAS); Andrew Postlewaite (Department of Economics, University of Pennsylvania)
    Abstract: There is a large repeated games literature illustrating how future interactions provide incentives for cooperation. Much of this literature assumes public monitoring: players always observe precisely the same thing. Even slight deviations from public monitoring to private monitoring that incorporate differences in players’ observations dramatically complicate coordination. Equilibria with private monitoring often seem unrealistically complex. We set out a model in which players accomplish cooperation in an intuitively plausible fashion. Players process information via a mental system — a set of psychological states and a transition function between states depending on observations. Players restrict attention to a relatively small set of simple strategies, and consequently, might learn which perform well.
    Keywords: Repeated games, private monitoring, bounded rationality, cooperation
    JEL: D01 D70
    Date: 2007–07–01

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