nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒08‒08
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  2. Corporate Social Responsibility, Product Differentiation Strategy and Export Performance By BOEHE, Dirk Michael
  3. Linked versus Nonâ€linked Firms in Innovation: The Effects of Economies of Network in Agglomeration in East Asia By Machikita, Tomohiro; Ueki, Yasushi
  5. Duality in an Industry with Fluctuating Demand By Waka Cheung; Yew-Kwang Ng
  6. Regional Effects on Cooperative Innovation Activities and the Related Variety of Regional Knowledge Bases By Uwe Cantner; Andreas Meder
  7. Does Competition Favor Delegation? By Christian Alejandro Ruzzier
  8. A sociological perspective on measuring social norms by means of strategy method experiments By Heiko Rauhut; Fabian Winter
  9. The Flocking Strategy and Vertical Disintegration By Waka Cheung; Yew-Kwang Ng
  10. THE INDIAN GROWTH MIRACLE AND ENDOGENOUS GROWTH By Jakob B. Madsen; Shishir Saxena; James B. Ang
  11. Policies and Strategies for Radioactive Waste Management By International Atomic Energy Agency IAEA
  12. R&D Intensity, Technology Transfer and Absorptive Capacity By Md. Rabiul Islam

  1. By: Jaakko Simonen; Philip McCann
    Abstract: This paper investigates the role played by the sectoral and geographical mobility of labour in the promotion of industrial innovations. Knowledge can be transferred between firms by inter-firm interactions and interfirm cooperation. In addition, knowledge can also be transferred between firms by labour mobility. In order to examine these issues we employ a unique innovation dataset from Finland which combines firm specific information about the innovation performance of the firms along with their individual characteristics, as well as firm specific information regarding the sectoral and geographical origins of their recent labour acquisitions. Analyzing this data allows us to identify the different roles which the geography of knowledge spillovers and exchanges and the geography of labour markets play in the innovation process.
    Keywords: innovation; labour; mobility; R&D; cooperation
    JEL: O31 J60 R30
    Date: 2009–08
  2. By: BOEHE, Dirk Michael
    Date: 2009–10
  3. By: Machikita, Tomohiro; Ueki, Yasushi
    Abstract: This paper proposes a new mechanism linking innovation and network in developing economies to detect explicit production and information linkages and investigates the testable implications of these linkages using survey data gathered from manufacturing firms in East Asia. We found that firms with more information linkages tend to innovate more, have a higher probability of introducing new goods, introducing new goods to new markets using new technologies, and finding new partners located in remote areas. We also found that firms that dispatched engineers to customers achieved more innovations than firms that did not. These findings support the hypothesis that production linkages and faceâ€toâ€face communication encourage product and process innovation.
    Keywords: Southeast Asia, East Asia, Technological innovations, Network, Communication, Business enterprises, Engineer Mobility, Innovation, Linkages
    JEL: D83 L25 O31 O32 O33 R12
    Date: 2009–03
  4. By: Mita Bhattacharya; Michael Olive
    Abstract: In India, manufacturing plays a significant role in economic development, growth and as a source of employment. This paper analyses the pricing behaviour in Indian manufacturing sector considering both domestic and external variables. Price adjustment models are developed based on Industrial Organization literature and are examined with 28 manufacturing industries at the 3-digit level over the period from 1963 to 2001. Domestic structural factors are found to be important in determining speed of price adjustment.
    Keywords: Speed of price adjustment; Competitiveness; Indian manufacturing
    JEL: D21 L11 L13 L16 L60
    Date: 2009–08
  5. By: Waka Cheung; Yew-Kwang Ng
    Abstract: A perfect-competition model is developed to analyze duality in specialization and technology such as in the men’s clothing industry, an industry with highly seasonal nature of the business cycle. We show that when the market fluctuation is large enough, some firms will specialize in one good with the advantage of static efficiency, while other firms will generalize in multi-variety production as a means of self- insurance. The specialized firms mainly satisfy the stable component of market demand, while the generalized firms satisfy only the variable components of demands. Relative to the specialized firms, the generalized firms have a smaller firm size and a lower degree of vertical division of labor within the firm, and use the technology with more flexible specialization but less capital-labor ratio.
    Keywords: flexible specialization, vertical specialization, duality, mechanization,
    JEL: D23 D41 L22 L25
    Date: 2009–08
  6. By: Uwe Cantner (Friedrich-Schiller-University, School of Economics and Business Administration, Jena); Andreas Meder (Thuringian Ministry of Economic Affairs, Erfurt)
    Abstract: The literature on "Innovation Systems" is divided into several directories. Dif- ferences occur through the definition of the system's borders. This paper intro- duces a methodology how to differentiate between regional and technological effects of cooperative innovation activities and analyzes furthermore how dif- ferent dimensions of regional knowledge affect the regional effects on coopera- tive innovation activities. We find evidence that the related variety of knowl- edge available within a region and its combination with a proxy of the amount of knowledge foster regional effects of cooperative innovation activities. Addi- tionally, we find that the development of German regions fits with the sugges- tions of the Regional Innovation System (RIS) approach.
    Keywords: regional development, regional effects of cooperative behavior, knowledge, related variety of knowledge
    JEL: C30 L14 O32
    Date: 2009–08–06
  7. By: Christian Alejandro Ruzzier (Harvard Business School)
    Abstract: This paper studies the consequences of product-market competition on firms' decisions to delegate more or fewer decision-making responsibilities to managers. By simultaneously addressing the choice of both competitive actions and organizational design, the paper makes an attempt at bringing economic theory and management strategy closer together. An increase in substitutability between the products of the different firms triggers a different response depending on the size of the firm: larger firms delegate more responsibility, whereas smaller firms centralize decision making. The increase in substitutability also causes some firms to exit the market, which pushes in the direction of reduced managerial autonomy. Stronger competition also leads to less discretion in markets in which the possibilities for product differentiation are important. For a given number of firms, an increase in market size increases centralization, as the owner of the firm finds it more costly to accept rent seeking by the managers. However, this increase in market size will lead to the entry of more firms, which calls for more decentralized decision making. Under reasonable conditions, the aggregate effect leads to a U-shaped relationship where firms in both small and large markets are characterized by high levels of discretion, while there is less discretion for intermediate market sizes. Finally, a reduction in entry barriers leads unambiguously to an increase in the level of discretion given to the agent, as it results in a larger number of firms entering the market and, for a given market size, in lower concentration or expected firm-level demand, which reduces the value of having control and pushes in the direction of increased autonomy.
    Keywords: product-market competition, delegation, authority, oligopoly, firm organization
    JEL: D43 L13 L22 M21
    Date: 2009–07
  8. By: Heiko Rauhut (ETH Zurich, Swiss Federal Institute of Technology); Fabian Winter (Max Planck Institute of Economics)
    Abstract: The measurement of social norms plays a pivotal role in many social sciences. While economists predominantly conduct experiments, sociologists rather employ (factorial) surveys. Both methods, however, suffer from distinct weaknesses. Experiments, on the one hand, often fall short in the measurement of more complex elements, such as the conditionality or the level of consensus of social norms. Surveys, on the other, lack the ability to measure actual behavior. This paper argues that the so-called "strategy method" compensates for these weaknesses by combining the observational characteristic of experiments with the conditionality of factorial surveys. We can demonstrate the applicability of the strategy method for the measure- ment of conditional bargaining norms in the case of ultimatum games. To substantiate our claim, we conduct a methodological experiment in which we compare results for the strategy ultimatum game with those from a "conventional" ultimatum game. The strategy method yields higher levels of normative compliance in terms of rejecting "unfair" offers. We conclude that the strategy method rather measures normative expectations whereas the "conventional" ultimatum game the willingness to sacrifice own profits to adhere to these expectations. Our results are consistent with previous comparative research between factorial surveys and observational data.
    Keywords: Social norms, measurement, ultimatum game, strategy method, factorial surveys
    JEL: Z13 D63 C91
    Date: 2009–08–06
  9. By: Waka Cheung; Yew-Kwang Ng
    Keywords: vertical disintegration, agglomeration effect, specialization, lighters, Wenzhou. Abstract: In the industry center of lighters in Wenzhou, China, lighters are produced by a large number of small, vertically specialized, and agglomerated firms. Some firms specialize in assembling lighters, while the others specialize in producing parts. A perfect-competition model is developed to analyze this phenomenon, and four related factors are revealed to be involved. First, compared with standard factories, household workshops have the cost advantage in producing the parts of lighters. Next, lighters are produced by firms owned mostly by those transferring from peasants and other occupations. Due to the difficulty in financing, each of them focus on a specific component part of the product. Last, a large extent of market and agglomeration lead to low transaction costs. This makes it beneficial for the specialized firms to coordinate the production through the market. In the presence of the agglomeration effect in lowering the transaction costs, a perfectly competitive industry may have multiple equilibria. The ability of the industry of lighters in Wenzhou to expand to the high-level equilibrium by capturing the world market helps to explain the huge decreases in prices.
    JEL: D23 D41 L22 L25
    Date: 2009–08
  10. By: Jakob B. Madsen; Shishir Saxena; James B. Ang
    Abstract: Using over half a century of R&D data for India, this paper tests whether the second-generation endogenous growth theories are consistent with India’s growth experience. Furthermore, the paper also examines the extent to which growth in India can be explained by R&D activity, international R&D spillovers, catch-up to the technology frontier and policy reforms. The empirical results show that the growth in India over the past five decades has been significantly driven by research intensity following the predictions of Schumpeterian growth theory.
    Keywords: Schumpeterian growth; semi-endogenous growth; R&D.
    JEL: O3 O4
    Date: 2009–08
  11. By: International Atomic Energy Agency IAEA
    Abstract: The spent fuel and radioactive waste management strategy sets out the means for achieving the goals and requirements set out in the national policy. It is normally established by the relevant waste owner or nuclear facility operator, or by government (institutional waste). A typical policy should include the following elements: defined safety and security objectives, arrangements for providing resources for spent fuel and radioactive waste management, identification of the main approaches for the management of the national spent fuel and radioactive waste categories, policy on export/import of radioactive waste, and provisions for public information and participation.
    Keywords: radioactive waste, policy, fuel management policy, national, strategy, atomic energy
    Date: 2009
  12. By: Md. Rabiul Islam
    Abstract: In the line of Schumpeterian fully endogenous growth theory, this study attempts to investigate whether differences in research intensity as well as absorptive capacity help to explain cross-country differences in productivity growth in a panel of 55 sample countries including 23 OECD and 32 developing economies over the period 1970 to 2004. Using several indicators of innovative activity and product variety empirical results from system GMM estimator confirm that research intensity has significant positive effect on productivity growth in both the OECD and developing countries. TFP growth is also found to be enhanced by the distance to technology frontier in both the group of countries. R&D based absorptive capacity seems to have significant positive impact on productivity growth in both the groups though strong in OECD countries. Human capital based technology transfer is found significant and robust in both the OECD and developing countries. Absorptive capacity appears to be sensitive to the model specification and measurement of innovative activity as well as product variety.
    Keywords: Schumpeterian growth theory, R&D intensity, TFP growth, technology transfer, human capital, absorptive capacity, system GMM, OECD, developing countries
    JEL: O10 O30 O47
    Date: 2009–08

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