nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒07‒17
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Firms’ Innovative Performance: The Mediating Role of Innovative Collaborations By Lee, Lena; Wong, Poh Kam
  2. Strategic Coopetition of Global Brands: A Game Theory Approach to ‘Nike + iPod Sport Kit’ Co-branding By Rodrigues, Flávio; Souza, Victória; Leitão, João
  3. PRODUCTIVITY SPILLOVERS IN INDIAN MANUFACTURING FIRMS By Mita Bhattacharya; Jong-Rong Chen; V. Pradeep Author-X-Name- V
  4. Who captures who? Long-lasting bank relationships and growth of firms By Alessandro GAMBINI; Alberto ZAZZARO
  5. Entrepreneurial orientation, organizational learning capability and performance in the ceramic tiles industry By Joaquín Alegre; Ricardo Chiva
  6. Why Might a Country Want to Develop its Comparative Disadvantage Industries? By Wenli Cheng; Dingsheng Zhang
  7. Productivity and Characteristics of Firms: An application of a bootstrapped data envelopment analysis to Japanese firm-level data By KATO Atsuyuki
  8. Input specificity and product differentiation By Noriaki Matsushima; Tomomichi Mizuno
  9. Convergence of firm-level productivity, globalisation, information technology, and competition: evidence from France. By Chevalier, P-A.; Lecat, R.; Oulton, N.
  10. The Employment Potential of Labor Intensive Industries in India's Organized Manufacturing By Deb Kusum Das
  12. THE INDIAN GROWTH MIRACLE AND ENDOGENOUS GROWTH By Jakob Madsen; Shishir Saxena; James Ang

  1. By: Lee, Lena; Wong, Poh Kam
    Abstract: While existing studies have provided many insightful discussions on the antecedents to innovative collaborations and the benefits of collaborative behavior, few studies have focused on the mediating role of innovative collaborations in enhancing the firm’s technological innovative performance. In this paper, we investigate the mediating role of the firm’s innovative collaborations in the relation between government innovation support and the firm’s product and process innovation intensities. As a mediating factor in the innovation process, innovative collaborations form part of the innovative inputs that contribute to the firm’s product and process innovation intensities. Using arguments derived from the resource-based theory, we found that while receipts of government innovation support help increase the firm’s level of innovative inputs as observed in its collaboration intensity, it is equally important for firms to internalize management practices that encourage maximum leverage of government innovation support for pursuits of innovative collaborations. In a similar vein, while innovative collaborations are necessary for realizing innovative outputs including product and process innovations, it is not a sufficient condition for achieving strong innovative performance. The firm’s internal capabilities as observed in its learning, R&D, resource allocation, manufacturing, marketing, organizing, and strategic planning abilities have a positive influence on the relationship between innovative collaborations and innovative outputs.
    Keywords: Innovative Performance; Innovative Collaboration; Firm’s Contextual Factors
    JEL: D23 M1 O32
    Date: 2009–06–19
  2. By: Rodrigues, Flávio; Souza, Victória; Leitão, João
    Abstract: Co-branding can be implemented by establishing an agreement of strategic coopetition that allows companies to compete and cooperate simultaneously in order to obtain competitive advantages through operational synergy. With this type of agreement, brands enter markets sharing loyal customers they would be unlikely to reach individually. The main advantages associated with implementation of this form of strategic coopetition are the possibility of jointly communicating brand image, reputation and credibility in a global market where consumers tend to have homogeneous preferences and convergent lifestyles. The strategic coopetition between two global brands, Apple and Nike, through development of the ‘Nike+iPod Sport Kit’ product, serves as a benchmark to illustrate the benefits associated with implementation of coopetitive cooperation agreements. From application of the game theory, simulation of a game of strategic coopetition provided results that confirm global brands obtain benefits, albeit not in equal measure, in terms of adding value to the brand image at a world level.
    Keywords: Co-branding; Coopetition; Global brands; Growth of brand value.
    JEL: M31 O32 M13
    Date: 2009–07–07
  3. By: Mita Bhattacharya; Jong-Rong Chen; V. Pradeep Author-X-Name- V
    Abstract: Indian economic reform since early 1990s aims at improving productivity and competitiveness of major industries. The paper examines spillovers from foreign direct investment (FDI), research and development (R&D) and exporting activities on productivity both for foreign and domestic manufacturing firms. The data is obtained from the PROWESS database provided by the Centre for Monitoring Indian Economy (CMIE). Balanced panel of over 1,000 manufacturing firms in India between 1994 and 2006 are considered for our empirical analysis. Findings indicate that foreign presence has a significant spillover effect on the productivity of the Indian manufacturing firms compared to the alternative spillovers such as from R&D and export initiatives.
    Keywords: Productivity, Spillovers, Indian manufacturing, FDI.
    JEL: F21 O47 O53
    Date: 2009–06
  4. By: Alessandro GAMBINI (Universita' Politecnica delle Marche, Dipartimento di Economia); Alberto ZAZZARO (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: The theoretical literature has identified potential benefits and costs of close bank-firm relationships for both parties, suggesting possible reasons for firms being captured by banks and vice versa. In this paper we empirically explore the effects of long-lasting credit relationships on employment and asset growth of a large sample of Italian manufacturing firms in the period 1998-2003. The main findings are that relationship lending hampers the efforts of small firms to increase their size (especially in terms of employees), while it mitigates the negative growth of troubled, medium-large enterprises, thus supporting the hypothesis that small firms are captured by banks which, in turn, are captured by large firms.
    Keywords: Capture effetcs, Firms' growth, Relationship lending
    JEL: G21 G34
    Date: 2009–07
  5. By: Joaquín Alegre (Universitat de València); Ricardo Chiva (Universitat Jaume I)
    Abstract: La orientación emprendedora es susceptible de tener un impacto positivo sobre el desempeño de la empresa. Sin embargo, empíricamente esta relación directa no es completamente consistente. Proponemos el desempeño innovador como una variable intermedia y, además, argumentamos que la relación entre orientación emprendedora y desempeño innovador no es incondicional, sino dependiente de la capacidad de aprendizaje organizativo. Utilizamos modelos de ecuaciones estructurales para contrastar nuestras hipótesis sobre la industria cerámica italiana y española. Los resultados sugieren que (1) el desempeño innovador actúa como una variable mediadora entre la orientación emprendedora y el desempeño de la empresa; (2) la orientación emprendedora puede ser considerada como un antecedente de la capacidad de aprendizaje organizativo; y (3) la capacidad de aprendizaje organizativo juega un papel importante en la determinación de los efectos de la orientación emprendedora sobre el desempeño. Finalmente, señalamos las limitaciones del estudio y proponemos futuras líneas de investigación. Entrepreneurial orientation is considered to have a positive impact on firm performance. However, this direct relationship does not seem to be empirically conclusive. In our research we consider innovation performance as an intermediate variable, and explain that the relationship between entrepreneurial orientation and innovation performance is not unconditional, but subject to organizational learning capability. Structural equation modeling has been used to test our research hypotheses on a data set from the Italian and Spanish ceramic tile industry. Results suggest that (1) innovation performance acts as a mediating variable between entrepreneurial orientation and firm performance; (2) entrepreneurial orientation can be considered as an antecedent of organizational learning capability; and (3) organizational learning capability plays a significant role in determining the effects of entrepreneurial orientation on innovation performance. Finally, we highlight our study¿s limitations and we posit avenues for future research.
    Keywords: Entrepreneurial orientation, organizational learning capability, performance. Orientación emprendedora, capacidad de aprendizaje organizativo, desempeño.
    JEL: L26 L61
    Date: 2009–07
  6. By: Wenli Cheng; Dingsheng Zhang
    Abstract: This paper develops a general equilibrium 2x2 Ricardian model that demonstrates the possibility of immiserizing growth as a result of a productivity improvement in a country’s export industry. The model also shows that immiserizing growth can be avoided by improving the productivity of the country’s comparative disadvantage industry. However this strategy may inflict harm on its trading partner. In comparison, a balanced growth strategy can improve welfare of the growing country without hurting its trading partner.
    Keywords: 2x2 Ricardian model, immiserizing growth, balanced growth
    JEL: F10 F11
    Date: 2009–05
  7. By: KATO Atsuyuki
    Abstract: This paper examines the relationships between productivity growth and characteristics of firms using Japanese firm-level data during the period 1995-2004. Applying a bootstrapped Malmquist index approach and weighted least squares (WLS) to two retail trade industries, we estimate the firm-level productivity growth rates and the effects of firms' characteristics on those growth rates. In addition, decomposing productivity growth into technical efficiency change and technical progress, we discuss mechanisms of productivity growth in detail. Our estimation reveals that productivity growth of department stores and supermarkets was stagnant during the sample period. It also indicates that positive technical efficiency changes are usually offset by technical regress and vice versa. Furthermore, effects of firms' characteristics on both productivity components are sometimes conflicting as well. In view of these findings, industrial policies should be carefully devised, based upon their efficiency distribution.
    Date: 2009–06
  8. By: Noriaki Matsushima; Tomomichi Mizuno
    Abstract: Using a simple product differentiation model with elastic demands, we investigate the relationship between differentiation strategies and vertical relations. Depending on the competitive structure in the upstream market, three differentiation patterns (maximum, minimum and partial differentiation) can appear in equilibrium even though each downstream firm freely determines the degree of product differentiation. When downstream firms must incur positive investment costs to differentiate their products, they tend to do so if the upstream market is competitive.
    Date: 2009–06
  9. By: Chevalier, P-A.; Lecat, R.; Oulton, N.
    Abstract: Studies of firm-level data have shown that there is a huge dispersion of productivity across firms even when industries are narrowly defined. So there is a significant opportunity for the least productive firms to catch up to the most productive. The formers’ convergence could therefore constitute an important part of productivity growth at the macroeconomic level. This article sheds light on this convergence process in the 1990s and the 2000s in France and on some of the factors which can explain it. Productivity convergence was stronger for labour productivity than for total factor productivity. But most importantly the speed of convergence has slowed during the course of the 1990s, a fact which is explained principally by the acceleration of the productivity of firms on the technological frontier. Three possible explanations of these stylised facts are considered: globalisation, information technology, and competition. Globalisation and information technology may have benefited the most productive firms more and the growth of competition may at the same time have stimulated the productivity of firms at the frontier while discouraging the convergence of the least productive firms.
    Keywords: Convergence ; productivity ; TFP ; globalisation ; ICT ; competition.
    JEL: D24 D40 F10 J24 L11 O33
    Date: 2009
  10. By: Deb Kusum Das
    Abstract: This paper attempts to identify and examine labor intensive industries in the organized manufacturing sector in India in order to understand their employment generation potential. Using the data from the Annual Survey of Industries (Government of India, various issues), the labor intensity for 97 industries at the 4-digit disaggregate level was computed for the period 1990-91 to 2003-04. The study identifies 31 industries as ‘labor intensive industries’ within India’s organized manufacturing sector. The paper briefly highlights the plausible factors that could have had an impact on labor intensity as well as on the performance of the organized manufacturing sector over the study period. [WP No. 236].
    Keywords: labor internsive industries, labour, employment, India, manufacturing, sector, elasticity, growth, productivity, capital, organized
    Date: 2009
  11. By: Yan Liu; Guangâ€Zhen Sun
    Abstract: We develop a framework, extending the conventional duopoly model by replacing the Hotelling line with a simplex in highâ€dimension spaces, to study the competition and access regulation of multiple networks. We first characterize the competitive equilibrium when the substitutabilities of the networks are not too high, or the access charges are nearly costâ€based. We then analyse how the equilibrium market shares respond to marginal variations in the access charges under various regimes of access regulation, and thereby examine the efficiency implications of such regulation regimes. In particular, we analyze the asymmetric scenario in which some networks are incumbent and some are entrants. It is shown that some existing results of the duopoly do not extend to a multiâ€firm setting, largely because regulation of multiple networks is structurally far richer.
    Keywords: Telecommunications, oligopoly, network competition, access regulation.
    JEL: L96 L51 D43
    Date: 2009–06
  12. By: Jakob Madsen; Shishir Saxena; James Ang
    Abstract: Using over half a century of R&D data for India, this paper examines the extent to which India’s recent growth experience can be explained by R&D, international R&D spillovers, catch-up to the technology frontier and financial liberalization. Furthermore, the paper also tests whether any of the competing second-generation endogenous growth theories can explain India’s growth experience. The findings provide support for Schumpeterian growth theory and indicate that the recent high growth rates in India are likely to continue well into the future.
    Keywords: Schumpeterian growth; semi-endogenous growth; R&D,
    JEL: O3 O4
    Date: 2009–06

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