nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒09‒11
eleven papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. "Territorial innovation dynamics: a knowledge based perspective" By Karine Roux; Rani Jeanne Dang; Catherine Thomas; Christian Longhi; D. Talbot
  2. Digging into exploration processes within established firms: Insights from two entities dedicated to enhancing radical innovation to support existing business By Sihem Ben Mahmoud-Jouini; Florence Charue-Duboc; Sylvain Lenfle; Christophe Midler
  3. Territorial Capital and Regional Growth: Increasing Returns in Cognitive Knowledge Use By Roberta Capello; Andrea Caragliu; Peter Nijkamp
  4. Developing Innovative Competences in an Emerging Business System: New Private Enterprises in Hangzhou’s Software Industry By Greeven, M.J.; Xiaodong, Z.
  5. Crossing innovation and product projects management: comparative analysis in the automotive industry. By Romain Beaume; Rémi Maniak; Christophe Midler
  6. Relative Performance and R&D Competition By Toshihiro Matsumura; Noriaki Matsushima; Susumu Cato
  7. Does the logistics sector gain from manufacturing internationalisation? An empirical investigation on the Italian case By Elia, Stefano; Maggi, Elena; Mariotti, Ilaria
  8. Constructing Epistemic Landscapes: Methods of GIS-Based Mapping By Evers, Hans-Dieter; Genschick, Sven; Schraven, Benjamin
  9. Tourism Specialization and Economic Development: Evidence from the UNESCO World Heritage List By Arezki, Rabah; Cherif, Reda; Piotrowski, John
  10. Privatizing Public Services and Strategic Behavior: The Impact of Incentives to Reduce Workers’ Compensation Claim Duration By Melissa P. McInerney
  11. Culture Values Entrepreneurship and Growth By Jellal, Mohamed

  1. By: Karine Roux (CEREFIGE - Institut National Polytechnique de Lorraine - INPL); Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); D. Talbot (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV)
    Abstract: A great deal of studies has focused on the role played by geographical location on the emergence and the building of localised learning capacities (Maskell, Malmberg, 1999). In this perspective, empirical studies have demonstrated that innovation dynamics of clusters results from the quality of interactions and coordination inside the cluster as well as interactions with external, often global, networks. In this context, knowledge exchange between firms and institutions are claimed to be the main drivers of spatial agglomeration (Canals et al, 2008). Hence, cluster policies have followed the main idea that geographic proximity facilitates collective innovation in so far as firms can capture knowledge externalities more easily. This idea is in fact very attractive but contains some limits (Suire et Vicente, 2007): if some clusters are successful others seem to decline. Therefore, in order to understand the territorial dynamics of clusters, the analysis of the specific nature of knowledge and information flows within a cluster is crucial. The objective of the paper is to enhance the analysis of the role of cognitive and relational dimensions of interactions on territorial dynamics of innovation. We focus on the key sub process of innovation: knowledge creation, which is above all a social process based on two key complex social mechanisms: the exchange and the combination of knowledge (Nahapiet and Goshal, 1996). We suggest building a theoretical framework that hinges on these two key mechanisms. In this perspective, we mobilise Boisot's I-Space model (Boisot, 1998) for the diffusion and exchange of knowledge and suggest completing the model by introducing the concept of architectural knowledge (Henderson and Clark, 1990) so as to take the complexity of the combination process into consideration. This analysis is conducted through the illustrative analysis of three different case studies. We will draw upon the case of Aerospace Valley Pole of Competitiveness (PoC), The Secured Communicating Solutions PoC, and Fabelor Competence Cluster. The cases show that the existence of architectural knowledge is pivotal to territorial innovation.
    Keywords: Architectural Knowledge, I-Space Model, Territorial Innovation, Geographical Clusters, Knowledge Management
    Date: 2009–07–06
  2. By: Sihem Ben Mahmoud-Jouini (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X); Florence Charue-Duboc (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X); Sylvain Lenfle (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X); Christophe Midler (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X)
    Abstract: Since the seminal work of J. March (1991), balancing exploration and exploitation activities is an important topic in management research. Though the literature is abundant on the management of exploitation activities, exploration activities remain a much less studied area. How should be compared and contrasted: exploration activity, R&D, new product development project and advance engineering? This is central to understand the specificities of exploration processes. In this paper we propose to dig into the exploration process based on the comparison between two case study researches. These longitudinal researches were conducted in two different firms in the automotive industry, one in a first tier supplier company (Ben Mahmoud-Jouini, Charue-Duboc and Fourcade2007), the second in an OEM company (Lenfle and Midler 2003). These two companies created an entity specifically in charge of exploring novel innovative opportunities in a specified but broad field. The mission of these entities was to identify novel opportunities that could support the existing business in changing or expanding their scope but not in creating an entirely new business. In order to dig into exploration processes, we propose to delineate more precisely the specificities of these exploratory entities. We stress three dimensions: (i) five characteristics of the “situation” the team of the exploratory entities face (the strategic issues raised, the purpose of the exploration, the type of results expected, the time span, the approach) (ii) five activities undertaken within the entities (creativity processes, external communication, interactions with the customer, formulation of a technological strategy, analysis of acquisition targets) (iii) and the organizational design that supported these activities. Based on these cases, we highlight an interplay between exploration and exploitation activities. Hence, on the one hand the exploratory entity relies largely on the competences and expertise located in the existing business of the firm on the other hand the entity develops new knowledge either on technology new to the company or on market that are useful for the established divisions of the company and used by them. We raise the question of the evolution of the boundaries between exploratory entities and the rest of the firm across time, which remains open in the literature. Hence, exploratory entities are not necessarily designed to develop innovative products up to their commercialization. Rather the latest phases of new product development can be transferred to more exploitative entities.
    Keywords: creativity, Automotive Industry, Innovation Management, exploration
    Date: 2009–06
  3. By: Roberta Capello (Politecnico di Milano, Italy); Andrea Caragliu (Politecnico di Milano, Italy, VU University Amsterdam, The Netherlands); Peter Nijkamp (VU University Amsterdam, The Netherlands)
    Abstract: Knowledge drives the growth of nations and regions in a competitive space-economy. Hence, we would expect a strong correlation between investments in R&D, knowledge and learning processes, on the one hand, and productivity increases, on the other. However, the empirical evidence shows consistent discrepancies between knowledge inputs and economic performance across geographical units. This paper addresses this intriguing issue at the regional level, by highlighting both theoretically and empirically the strategic importance played by cognitive elements as part of “territorial capital” in mediating between knowledge production and regional growth. The main proposition of the paper, subject to empirical testing, is that cognitive elements as part of territorial capital magnify the contribution of knowledge by determining the formation of increasing returns to knowledge exploitation.
    Keywords: territorial; capital; regional growth; cognitive; knowledge; rivalry; R&D
    JEL: R11 R15 R58
    Date: 2009–07–28
  4. By: Greeven, M.J.; Xiaodong, Z. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: What kind of innovative competences are credibly developed by private entrepreneurs in China’s transition economy? On the basis of original empirical fieldwork in 45 software enterprises in Hangzhou, Zhejiang Province, we propose a working theory of innovative competence development in an emerging private sector. Combining resource-based and institutional perspectives we argue that Chinese private enterprises in Hangzhou were able to develop unique innovative competences to overcome resource constraints and manage technical - and market risks while respecting the location and sector-specific constraints. The findings suggest that private software enterprises in Hangzhou developed five innovative competences: organizational integration, financial commitment, external knowledge transformation, reputation development and strategic flexibility. The analysis further allows to propose three implications: 1) These five competences form a ‘configuration’ or coherent set of competences in this particular institutional setting; 2) Technological – and institutional regimes shape the potential range of innovative competences firms credibly develop depending on the available resources of the firm; 3) Innovative competences can be functional equivalents of institutions in the absence of well-developed, mature formal institutions.
    Keywords: private entrepreneurs;innovation;China;software industry;institutions;competences;business system
    Date: 2009–08–08
  5. By: Romain Beaume (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X); Rémi Maniak (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X); Christophe Midler (CRG - Centre de recherche en gestion - CNRS : UMR7655 - Polytechnique - X)
    Abstract: Projectification and platform approaches have been two main transformation trends implemented by industrial firms during the1990s. For those firms, innovation management no longer deals with introducing radically and totally new products, but rather withapplying innovative features within a regular stream of products and platforms. This paper proposes an analytical framework thatcan address the resulting interplay between innovative features and new products. This framework relies on the concept of innovationlife-cycle management (ILCM). The paper presents the early results from the comparison of five case studies from three OEMs.
    Keywords: Organizational learning; New product projects portfolio; Innovation management; Automotive industry; Comparative analysis.
    Date: 2009–02
  6. By: Toshihiro Matsumura; Noriaki Matsushima; Susumu Cato
    Abstract: This paper formulates a duopoly model in which firms care about relative profits as well as their own profits. Our purpose is to investigate the relationship between the weight of relative performance and R&D expenditure. We find a non-monotone relationship between the weight of relative performance in their objectives and their R&D levels. Both highly reciprocal (altruism) and negative reciprocal attitudes yield high levels of R&D, while the intermediate situations yield low levels of R&D.
    Date: 2009–08
  7. By: Elia, Stefano; Maggi, Elena; Mariotti, Ilaria
    Abstract: The present paper deals with the impact of manufacturing internationalisation, in the forms of international trade, cooperation agreement and FDI, on the logistics sector. Some descriptive statistics are provided for the Italian macro-areas and the logistics employment and an econometric analysis is carried out at the "regional-industry" level (20 NUTS2 regions and 11 logistics sub-sectors) with reference to the Italian case in the period 1996-2001. Results show that export and FDIs positively affect the logistics employment variation in 1996-2001, while import and cooperation agreements display a negative or not significant impact.
    Keywords: logistics, employment, internationalisation, trade, FDI, cooperation agreement.
    JEL: F23 L91 R12 R15
    Date: 2009–08–25
  8. By: Evers, Hans-Dieter; Genschick, Sven; Schraven, Benjamin
    Abstract: The construction of knowledge maps, demonstrated in this paper, is designed to show the epistemic landscape of cities, countries or regions. Knowledge assets, knowledge producing and disseminating organisations are referenced to spatial objects and integrated into GIS. They are further represented in thematic maps and in 3-D perspective graphs. Special attention is given to mapping and measuring knowledge clusters. Statistical procedures to measure the degree of knowledge clustering are discussed and ways are indicated to compare and determine the emergence of knowledge clusters. We conclude that the construction of knowledge maps showing the complexity of epistemic landscapes will enhance the chances of government agencies, companies and civic organisations to understand and use knowledge for development. This paper is in the first place meant as guideline for the related analysis.
    Keywords: Knowledge and development; knowledge maps; epistemic landscapes; knowledge clusters; Geographic Information System (GIS)
    JEL: N55 C82 C14 A1 C0 M19 O53 O2 B4 D8 O3 B41
    Date: 2009–08–02
  9. By: Arezki, Rabah; Cherif, Reda; Piotrowski, John
    Abstract: The present paper investigates whether tourism specialization is a viable strategy for development. We estimate standard growth equations augmented with a variable measuring tourism specialization using instrumental variables techniques for a large cross-section of countries for the period 1980–2002. We introduce an instrument for tourism based on the UNESCO World Heritage List. We find that there is a positive relationship between the extent of tourism specialization and economic growth. An increase of one standard deviation in the share of tourism in exports leads to about 0.5 percentage point in additional annual growth, everything else being constant. Our result holds against a large array of robustness checks.
    Keywords: Tourism; economic development and growth and instrumental variables
    JEL: O11 O41 C82 C21
    Date: 2009–08
  10. By: Melissa P. McInerney (Department of Economics, College of William and Mary)
    Abstract: During the 1990s, the state of Ohio contracted out Workers’ Compensation (WC) case management, incorporating a large bonus payment intended to reward reduced claim duration. The bonus is essentially a decreasing function of average days away from work, excluding claims longer than 15 months. In response, duration is predicted to decrease for minor claims and increase for some severe claims so that claimants miss more than 15 months of work and are excluded from the calculation. Contractor responses are consistent with these expected heterogeneous responses but inconsistent with state intentions, suggesting public entities should anticipate strategic behavior when crafting performance-based incentives.
    Keywords: Workers' Compensation, Contracting Out, Privatization
    JEL: H72 J28 L33
    Date: 2009–08–27
  11. By: Jellal, Mohamed
    Abstract: We integrate a social norm which associates status to accumulation of capital and consumption into a simple model of endogenous growth. We show that societies which place a greater weight of cultural values on stock of accumulated capital as opposed to consumption will experience fast growth. Our results are consistent with those obtained by Baumol (1990) in the context of entrepreneurship and by Fershtman and Weiss (1991).
    Keywords: Entrepreneurship;Culture Values;Social Status;Growth
    JEL: O1 A13 Z13
    Date: 2009–09–03

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