nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒07‒28
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Linking Entrepreneurial Strategy and Firm Growth By J. BRUNEEL; B. CLARYSSE; M. WRIGHT
  2. Supply Chain Information Flow Strategies: an empirical taxonomy By E. VANPOUCKE; K. BOYER; A. VEREECKE
  3. Innovation and productivity in SMEs. Empirical evidence for Italy By Bronwyn H. Hall; Francesca Lotti; Jacques Mairesse
  4. Conceptualizing clusters through the lens of networks: a critical synthesis By Joana Almodovar; Aurora A.C. Teixeira
  5. Firm growth, European industry dynamics and domestic business cycles By Harald Oberhofer
  7. The influence of international human capital and international network relationships on the cross-border investment behaviour of private equity firms By S. DE PRIJCKER; S. MANIGART; M. WRIGHT; W. DE MAESENEIRE
  8. Operational Practices and Performance: An Empirical Analysis of Brazilian Manufacturing Companies By Duarte, André Luís de C. Moura; DiSerio, Luiz Carlos; Brito, Luiz Artur L.
  9. Data Augmentation by Predicting Spending Pleasure Using Commercially Available External Data By P. BAECKE; D. VAN DEN POEL
  10. Competitiveness of Nepalese ready-made garments after expiry of the Agreements on Textiles and Clothing By Anil Belbase; Paras Kharel
  11. Endogenous Technology Sharing in R&D Intensive Industries By Clark, Derek J.; Sand, Jan Yngve
  12. Alteração estrutural e crescimento: que competitividade para a indústria transformadora Portuguesa? By Natércia Godinho Mira
  13. Entrepreneurial intentions: The influence of organizational and individual factors By Lee, Lena; Wong, Poh Kam; Foo, Maw Der; Leung, Aegean
  14. Exports and Logistics By Alberto Behar; Phil Manners; Benjamin D. Nelson

    Abstract: The growth of young, technology-based firms has received considerable attention in the literature given their importance for the generation and creation of economic wealth. Taking a strategic management perspective, we link the entrepreneurial strategy deployed by young, technology-based firms with firm growth. In line with recent research, we consider both revenue and employment growth as they reflect different underlying value creation processes. Using a unique European dataset of research-based spin-offs, we find that firms emphasizing a product and hybrid strategy are positively associated with growth in revenues. The latter strategy also has a positive influence on the creation of additional employment. Contrary to expectation, however, we find that firms pursuing a technology strategy do not grow fast in employment. Our study sheds new light on the relationship between entrepreneurial strategy and firm growth in revenues and employment.
    Date: 2009–04
    Abstract: Purpose - The paper identifies different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to contextual factors and the impact on performance. <br>Design/methodology/approach – The paper examines empirical data gathered from 56 manufacturing companies, describing 112 supply chain relationships. An empirical taxonomy is created based on cluster analysis. <br>Findings - Based on a parsimonious description of inter-firm information flows in the literature and our empirical findings, we identify 3 types of alliances: Silent, Communicative and IT intensive alliances. While Silent alliances have the poorest overall performance, substantial similarities are found between Communicative and IT intensive alliances. In particular, the analysis suggests that IT intensive alliances, albeit performing better on operational capabilities, are not performing better on relationship satisfaction compared to Communicative alliances. Additional analyses indicate that partners of an IT intensive alliance are substantially more interdependent and larger in size. <br>Research limitations/implications – This research presents a taxonomy of information flow strategies in a supply chain context. This research is not describing causality, since our data is not longitudinal in nature. <br>Practical implications – Managers need to selectively invest in IT according to an overall supply chain integration strategy, which also takes softer, less technological forms of integration into consideration. <br>Originality/value – This research provides insight into inter-firm information flows from a contingency perspective, recognizing heterogeneity of firms and supply chain practices.
    Keywords: - Integration, Information flow, IT supply chain applications, Strategic alliances
    Date: 2009–03
  3. By: Bronwyn H. Hall (Department of Economics, University of California at Berkeley); Francesca Lotti (Bank of Italy); Jacques Mairesse (CREST (ENSAE, Paris))
    Abstract: Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation which incorporates information on innovation success from firm surveys along with the usual R&D expenditures and productivity measures. We then apply the model to data on Italian SMEs from the &#x201C;Survey on Manufacturing Firms&#x201D; conducted by Mediocredito-Capitalia covering the period 1995-2003. The model is estimated in steps, following the logic of firms&#x2019; decisions and outcomes. We find that international competition fosters R&D intensity, especially for high-tech firms. Firm size, R&D intensity, along with investment in equipment enhances the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on firm&#x2019;s productivity, especially process innovation. Among SMEs, larger and older firms seem to be less productive.
    Keywords: R&D, innovation, productivity, SMEs, Italy
    JEL: L60 O31 O33
    Date: 2009–06
  4. By: Joana Almodovar (MIoIR, Manchester Business School, U.K); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto)
    Abstract: Clusters, as spatial concentrations of economic activity, constitute an important form of coordination with significant repercussions in the configuration of firm and territorial strategies. They are recognized, both by academics and policymakers, as a territorial pattern of economy yielding critical issues in terms of competitive advantage, innovation, and economic growth. Despite that, a rigorous and clear-cut definition of cluster is still far from being reached. In the present paper, resorting to a critical synthesis of the literature on networks and clusters, we propose a unified, encompassing, and less blurred definition of cluster.
    Keywords: Clusters, Networks, Concepts
    JEL: R10 B52
    Date: 2009–07
  5. By: Harald Oberhofer
    Abstract: Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single market program (SMP) the EU 27 member states share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behavior at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of Multinational Enterprises (MNEs) constitute the most stable firm cohort throughout the observed business cycle.
    Keywords: Firm growth, industry dynamics, domestic business cycle, multinational enterprises, two-part model
    JEL: L11 L16 L25
    Date: 2009–07
    Abstract: An ongoing discussion in strategic management concerns the relative impact of specific strategic decisions on firm performance. In this tradition, this research analyzes the relative impact of business domain choices on firm performance. More specific, the paper at hand (a) discusses a method to assess the relative impact of firm and business definition effects on firm performance within a specific industry, and (b) demonstrates the value of this method by measuring the effect of business definition on performance within the context of a specific SME-dominated industry, namely the Belgian electrical whole sale sector. The results indicate that firm effects explain most of the variance in four performance variables but that the impact of business definition on performance could be underestimated. It turns out, according to our findings, that business membership (and thus differences in business definition) explains about 8 percent of the variance in performance between firms within the examined industry. Consequently, managers should carefully monitor and examine the business domain they are in as it directly related with the firm’s level of performance.
    Keywords: Business definition, domain choice, electrical wholesale sector, performance differences, variance decomposition
    JEL: C00 C13 D21 L10
    Date: 2009–04
    Abstract: This paper studies the international investment behavior of private equity (PE) firms. Perspectives from international service management are integrated with human capital and network theory to test the value of international human capital and international network relationships. Using a sample of 110 private equity firms from five European countries, we demonstrate the positive influence of international human capital and show that the intensity of the foreign network decreases the likelihood to be international. Our results also stress the larger influence of international human capital and network relationships on the likelihood of cross-border investing than on the number of international investments.
    Date: 2009–06
  8. By: Duarte, André Luís de C. Moura; DiSerio, Luiz Carlos; Brito, Luiz Artur L.
    Date: 2009–10
    Abstract: Since customer relationship management (CRM) plays an increasingly important role in a company’s marketing strategy, the database of the company can be considered as a valuable asset to compete with others. Consequently, companies constantly try to augment their database through data collection themselves, as well as through the acquisition of commercially available external data. Until now, little research has been done on the usefulness of these commercially available external databases for CRM. This study will present a methodology for such external data vendors based on random forests predictive modeling techniques to create commercial variables that solve the shortcomings of a classic transactional database. Eventually, we predicted spending pleasure variables, a composite measure of purchase behavior and attitude, in 26 product categories for more than 3 million respondents. Enhancing a company’s transactional database with these variables can significantly improve the predictive performance of existing CRM models. This has been demonstrated in a case study with a magazine publisher for which prospects needed to be identified for new customer acquisition.
    Keywords: customer relationship management (CRM), data augmentation, commercially available external data, new customer acquisition, random forests, purchase behavior, attitude, spending pleasure
    Date: 2009–06
  10. By: Anil Belbase; Paras Kharel (Institute for Policy Research and Development (IPRAD))
    Abstract: The study examines what has been the export performance of the RMG industry in Nepal in the post-ATC period with a focus on the United States market? and how has the expiry of the ATC impacted Nepal's competitiveness in RMG exports in the United States market?
    Keywords: Competitivenss, Reagy-made garments, Agreements on Textiles and Clothing, Nepal
    JEL: F1
    Date: 2009–07
  11. By: Clark, Derek J.; Sand, Jan Yngve
    Abstract: This paper analyses the endogenous formation of technology sharing coalitions with asymmetric firms. Coalition partners produce complementary technology advancements, although each firm determines its R&D investment level non-cooperatively and there is no co-operation in the product market. We show that the equilibrium coalition outcome is either one between the two most efficient firms, or a coalition with all three firms. The two-firm coalition is the preferred outcome of a welfare maximising authority if ex ante marginal cost is sufficiently high, and the three-firm coalition is preferred otherwise. Furthermore, we show that the equilibrium outcomes result in the lowest total R&D investment of all possible outcomes. Aircraft engine manufacturing provides a case study, and indicates the importance of anti-trust issues as an addition to the theory.
    Keywords: R&D, endogenous coalitions, asymmetric firms
    JEL: L11 L13
    Date: 2009
  12. By: Natércia Godinho Mira (Department of Economics, University of Évora; CEFAGE-UE)
    Abstract: Tendo em conta que a teoria económica nos permitir encontrar argumentos explicativos para a existência de uma relação em ambos os sentidos, entre a alteração estrutural e o crescimento, o que procurámos avaliar, no caso da indústria transformadora Portuguesa, foi a forma como evoluiu a velocidade de alteração estrutural, e como essa indústria cresceu de 1996 até 2004, depois de um crescimento, que na década de noventa e segundo a Comissão Europeia, foi dos maiores registados na Europa, e que apesar disso, não se revelou suficiente para promover os necessários ganhos de produtividade. Com esta análise, acabámos por concluir, que com um crescimento e uma velocidade de alteração estrutural bastante inferiores aos dos anos noventa, e com indústrias que, até mesmo de entre as mais qualificadas do ponto de vista da qualificação das competências laborais tiveram uma evolução diferenciada, será difícil à indústria transformadora Portuguesa contribuir no curto prazo de forma significativa para melhorar a competitividade da economia portuguesa, face a algumas deficiências de carácter estrutural que procurámos identificar.
    Keywords: Alteração Estrutural, Crescimento, Competitividade, Produtividade
    JEL: L16 L60 O10
    Date: 2009
  13. By: Lee, Lena; Wong, Poh Kam; Foo, Maw Der; Leung, Aegean
    Abstract: An individual's intent to pursue an entrepreneurial career can result from the work environment and from personal factors. Drawing on the entrepreneurial intentions and the person–environment (P–E) fit literatures, and applying a multilevel perspective, we examine why individuals intend to leave their jobs to start business ventures. Findings, using a sample of 4192 IT professionals in Singapore, suggest that work environments with an unfavorable innovation climate and/or lack of technical excellence incentives influence entrepreneurial intentions, through low job satisfaction. Moderating effects suggest that an individual's innovation orientation strengthens the work-environment to job-satisfaction relationship; selfefficacy strengthens the job-satisfaction to entrepreneurial intentions relationship.
    Keywords: Entrepreneurial intentions Job satisfaction Self-efficacy
    JEL: L26 M13
    Date: 2009
  14. By: Alberto Behar; Phil Manners; Benjamin D. Nelson
    Abstract: Do better trade logistics reduce trade costs, raising a country’s exports? Yes, but the magnitude of the effect depends on country size. Applying a new gravity model to a comprehensive logistics index, we find that an average-sized country would raise exports by about 46% after a one-standard deviation improvement in logistics. Most countries are much smaller than average however, so the typical effect is only 6%. This difference is chiefly due to multilateral resistance, which stresses that bilateral trade costs relative to multilateral trade costs matter for bilateral exports. Our method also distinguishes between the effects of logistics on the intensive margin (exports per firm) and the extensive margin (the number of exporting firms) of trade.
    Keywords: Logistics, Trade facilitation, Gravity, Firm heterogeneity, Multilateral resistance
    JEL: F10 F13 F14 F17 O24
    Date: 2009

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