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on Economics of Strategic Management |
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Issue of 2009‒07‒11
eleven papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Donald Siegel (School of Business University at Albany, SUNY) |
| Abstract: | This essay was written in response to the theme of this years Academy of Management Meeting, Green Management Matters. I assert that firms should adopt green management practices only if such activities complement the organizations business and corporate-level strategies and ultimately, enhance profitability or shareholder wealth. To illustrate this, I outline an economic/strategic perspective on green management practices, focusing on the strategic benefits and competitive dynamics associated with this activity. I also identify specific tactics firms can employ to achieve such strategic goals, as well as the functional areas affected by these decisions. |
| Keywords: | Green Management, Corporate-level Strategies, Profitability, Shareholder Wealth |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:jms:wpaper:8&r=cse |
| By: | Filip De Beule; Ilke Van Beveren |
| Abstract: | This paper analyzes the drivers of multinational affiliates' R&D intensity, using a unique dataset based on the fourth Community Innovation Survey for Belgium. Specifically, we investigate the role of foreign affiliates' local (host country) embeddedness and of host country spillovers on foreign affiliates' research efforts. Our findings show that foreign affiliates who are able to tap into local knowledge sources demonstrate a higher research intensity, compared to firms lacking such access. Links to clients and public research institutions, in particular, have a powerful impetus on the research effort by foreign subsidiaries. Our findings suggest a complementary relationship between foreign firms' R&D intensity and the internal research efforts of their competitors as a result of demonstration effects, while the use of external R&D by competitors has a negative impact on the research effort of foreign affiliates as a result of technological spillovers. Our findings have important policy implications, especially in terms of the high dependency of the Belgian economy on foreign R&D. One way to attain the R&D intensity put forward by the Lisbon agenda would be to increase public expenditure on research and development, which would also indirectly increase the research intensity of (foreign) firms. |
| Keywords: | R&D intensity, multinational ownership, knowledge sources, spillovers |
| JEL: | F23 L23 O31 O33 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:24209&r=cse |
| By: | Yusuf , Shahid; Nabeshima, Kaoru |
| Abstract: | How can Penang upgrade and diversify its economy? This paper addresses this question using a number of methodologies that have been developed for assessing competitiveness and identifying the direction of future industrial evolution. The results show that although Penang was successful in attracting foreign direct investment to the electronics industry, this has not translated into a deepening of industrial capabilities or the nurturing of innovation capacity in Penang. No large Malaysian firms in Penang have taken the lead in innovation and there is little new entry by local firms, despite incentives provided by local and national governments are generous. Universiti Sains Malaysia, the principal university in Penang, is contributing through provision of skills, and it is beginning to multiply university industry linkages. However, the university’s research activities are too limited and too diffuse to significantly initiate innovation by local industry. Under the current circumstances, and given its relatively small size, Penang will have to try much harder to strengthen its competitive advantage in its most important industry -electronics- through actions that build research capital. It will also have to increase its efforts to develop the potential of other value-adding activities, such as medical services and tourism. A strategy focused on localization economies is likely to be the most feasible option. |
| Keywords: | Technology Industry,Tertiary Education,E-Business,ICT Policy and Strategies,Agricultural Knowledge&Information Systems |
| Date: | 2009–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4971&r=cse |
| By: | Luciana Lazzeretti (Department of Bussines Economics, University of Florence); Francesco Capone (Department of Bussines Economics, University of Florence) |
| Abstract: | The aim of the present work is to investigate innovative processes within a geographical cluster, and thus contribute to the debate on the effects of industrial clusters on innovation capacity. In particular, we would like to ascertain whether the advantages of industrial districts in promoting innovation, as already revealed by literature (diffusion of knowledge, social capital and trust, efficient networking), are also keys to success in the Tuscan shipbuilding industry of pleasure and sporting boats. First, we verify the existence of clusters of shipbuilding in Tuscany, using a specific methodology. Next, in the identified clusters, we analyse three innovative networks financed in a policy to support innovation, and examine whether the typical features of a cluster for promoting innovation are at work, using a questionnaire administered to 71 actors. Finally, we develop a performance analysis of the cluster firms and ascertain whether their different behaviours also lead to different performances. The analysis results show that our case records effects of industrial clustering on innovation capacity, such as the important role given to trust and social capital, the significant worth put in interfirm relations and in each partner’s specific competencies, or even the distinctive performance of firms belonging to a cluster. |
| Keywords: | geographical clusters, industrial districts, innovation, technological transfer, shipbuilding industry. |
| JEL: | L22 O32 L62 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:esg:wpierm:0903&r=cse |
| By: | William Griffiths (Intellectual Property Research Institute of Australia, The University of Melbourne and Department of Economics, The University of Melbourne); Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) |
| Abstract: | Two parallel streams of research investigating the determinants of corporate R&D exist: one from economics and the other from management. The economists’ variables tend to reflect the firm’s external environment while the explanatory variables used by management scientists are commonly internal to the firm. This paper combines both approaches to test for the relative importance of each type of factor using firm-level data on large Australian companies from 1990 to 2005. Our evidence suggests that most of a firm’s R&D activity can be explained by time-invariant factors which we believe relate to internal and specific characteristics such as the firm’s managerial style, competitive strategy and how it communicates with employees. Of the remaining time-varying portion, we find that past profits, the rate of growth of the industry and the level of R&D activity over the firm’s industry is pertinent. These results are suggestive since we cannot clearly identify the extent to which the firm’s internal behaviour is conditioned by its external environment. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2009n13&r=cse |
| By: | Gastón Llanes (Harvard Business School, Entrepreneurial Management Unit); Ramiro de Elejalde (Universidad Carlos III de Madrid) |
| Abstract: | We present a model of industry equilibrium to study the coexistence of Open Source (OS) and Proprietary (P) firms. Two novel aspects of the model are: (1) participation in OS arises as the optimal decision of profit-maximizing firms, and (2) OS and P firms may (or may not) coexist in equilibrium. Firms decide their type and investment in R&D, and sell packages composed of a primary good (like software) and a complementary private good. The only difference between both kinds of firms is that OS share their technological advances on the primary good, while P keep their innovations private. The main contribution of the paper is to determine conditions under which OS and P coexist in equilibrium. Interestingly, this equilibrium is characterized by an asymmetric market structure, with a few large P firms and many small OS firms. |
| Keywords: | Industry Equilibrium, Open Source, Innovation, Complementarity, Technology Sharing, Cooperation in R&D |
| JEL: | O31 L17 D43 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:09-0xx&r=cse |
| By: | Dostie, Benoit (HEC Montreal); Jayaraman, Rajshri (European School of Management and Technology (ESMT)) |
| Abstract: | This paper asks whether adversity spurs the introduction of process innovations and increases the use of managerial incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous variation in adversity arising from increased border security along the 49th parallel following 9/11. Our longitudinal difference-in-differences estimates indicate that firms responded to adversity by introducing new or improved processes, but did not change their use of managerial incentives. These results suggest that the threat of bankruptcy may provide impetus for improving efficiency. |
| Keywords: | process innovation, managerial incentives, efficiency, natural experiment |
| JEL: | L20 O31 M52 J33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4261&r=cse |
| By: | Krafft Jackie (GREDEG (Groupe de Recherche en Droit, Economie et Gestion)); Quatraro Francesco (University of Turin); Saviotti Paolo (Unité Mixte de Recherche GAEL (Laboratoire d'Economie Appliquée de Grenoble)) |
| Abstract: | This paper applies the methodological tools typical of social network analysis within an evolutionary framework, to investigate the dynamics of the knowledge base of the biotechnology sector. Knowledge is here considered a collective good represented as a co-relational and a retrieval-interpretative structure. The internal structure of knowledge is described as a network the nodes of which are small units within traces of knowledge, such as patent documents, connected by links determined by their joint utilisation. We used measures referring to the network, like density, and to its nodes, like degree, closeness and betweenness centrality, to provide a synthetic description of the structure of the knowledge base and of its evolution over time.Eventually, we compared such measures with more established properties of the knowledge base calculated on the basis of co-occurrences of technological classes within patent documents. Empirical results show the existence of interesting and meaningful relationships across the different measures, providing support for the use of social network analysis to study the evolution of the knowledge bases of industrial sectors and their lifecycles. |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200909&r=cse |
| By: | Matthias Buerger; Tom Broekel; Alex Coad |
| Abstract: | We investigate the lead-lag relationship between growth of patent applications, growth of R&D, and growth of total sectoral employment for 270 German labour market regions over the period 1999-2005. Our unique panel dataset includes information on four two-digit industries, namely Chemistry, Transport equipment, Medical & Optical Equipment as well as Electrics & Electronics. The results obtained from a vector autoregression model show that an increased innovative activity is associated with subsequent growth of employment in the Medical & Optical Equipment industry as well as in the Electrics & Electronics sector. With respect to the latter growth of patent applications is also associated with subsequent growth of R&D employees indicating either a ‘success-breeds-success’ story or benefits due to agglomeration economies at the level of the region. However we do not find those effects for the other industries due to their idiosyncratic innovation and patenting behaviour. |
| Keywords: | innovation, regional dynamics, r&d growth, employment growth, patent growth |
| JEL: | O18 R11 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0908&r=cse |
| By: | Yu, Li; Orazem, Peter; Jolly, Robert W. |
| Abstract: | Rural firms have a higher survival rate than urban firms. Over the first 13 years after firm entry, the hazard rate for firm exits is persistently higher for urban firms. While differences in firm attributes explain some of the rural-urban gap in firm survival, rural firms retain a survival advantage 18.5% greater than observationally equivalent urban firms. We argue that in competitive markets, the remaining survival advantage for rural firms must be attributable to unobserved factors that must be known at the time of entry. A plausible candidate for such a factor is thinner markets for the capital of failed rural firms. The implied lower salvage value of rural firms suggests that firms sorting into rural markets must have a higher probability of success in order to leave their expected profits equal to what they could earn in an urban market. |
| Keywords: | Rural, urban, entry, exit, survival, sorting , salvage value |
| JEL: | R0 |
| Date: | 2009–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:13085&r=cse |
| By: | Matthias Bürger (Friedrich-Schiller-University Jena, RTG 1411 - The Economics of Innovative Change); Tom Brökel (Utrecht University, Urban and Regional Research Centre Utrecht (URU)); Alex Coad (Max Planck Institute of Economics, Jena; Centre d'Economie de la Sorbonne, Univ. Paris 1) |
| Abstract: | We investigate the lead-lag relationship between growth of patent applications, growth of R&D, and growth of total sectoral employment for 270 German labour market regions over the period 1999-2005. Our unique panel dataset includes information on four two-digit industries, namely Chemistry, Transport equipment, Medical & Optical Equipment as well as Electrics & Electronics. The results obtained from a vector autoregression model show that an increased innovative activity is associated with subsequent growth of employment in the Medical & Optical Equipment industry as well as in the Electrics & Electronics sector. With respect to the latter growth of patent applications is also associated with subsequent growth of R&D employees indicating either a "success-breeds-success" story or benefits due to agglomeration economies at the level of the region. However we do not find those effects for the other industries due to their idiosyncratic innovation and patenting behaviour. |
| Keywords: | Innovation, Agglomeration, Employment |
| JEL: | O18 R11 |
| Date: | 2009–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-046&r=cse |