nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒10‒10
twelve papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Product and Process Innovation and the Decision to Export: Firm-level Evidence for Belgium By Ilke Van Beveren; Hylke Vandenbussche
  2. The antecedents and innovation consequences of organizational search: empirical evidence for Spain By Abel Lucena
  3. The Role of Flagship Firms, External Actors and Support Institutions in the Emergence of Successful Export Activities in Brazil: Two Industrial Cluster Studies By Angela da Rocha; Beatriz Kury; Joana Monteiro
  4. Make or Buy in a mature industry? Models of client-supplier relationships under TCT and RBV perspectives By Manuel Portugal Ferreira; Fernando A. Ribeiro Serra
  5. Condições econômicas e institucionais do processo de inovação: proposta de um modelo sistêmico de investigação do progresso tecnológico e o desenvolvimento de inovações na indústria By Ronivaldo Steingraber; Flávio Gonçalves
  6. Does Excellence in Academic Research Attract Foreign R&D? By Rene Belderbos; Bart Leten; Shinya Suzuki
  7. Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry By Raff, Horst; Wagner, Joachim
  8. Localised Spillovers and Knowledge Flows: A Study on the Effects of Proximity and Labour Mobility on Plant Performance By Rikard H. Eriksson
  9. Competitiveness in Central-Europe: What Has Happened Since EU Accession? By Céline Allard
  10. Determinant factors of structural similarity at the regional level: evidence from Portugal By Nuno Crespo; Maria Paula Fontoura
  11. The evolution of the literature on entrepreneurship. Uncovering some under researched themes By Cristina Santos; Aurora A.C. Teixeira
  12. Competitive Effects of Vertical Integration with Downstream Oligopsony and Oligopoly By Simon Loertscher; Markus Reisinger

  1. By: Ilke Van Beveren; Hylke Vandenbussche
    Abstract: Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm¡¯s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.
    Keywords: Exports, Product innovation, Process innovation, Self-selection, Firm heterogeneity
    JEL: D24 F14 L25 O31 O33
    Date: 2009
  2. By: Abel Lucena (CREB and Department of Business Administration, University of the Balearic Islands, Spain)
    Abstract: This paper examines the antecedents and innovation consequences of the methods firms adopt in organizing their search strategies. From a theoretical perspective, organizational search is described using a typology that shows how firms implement exploration and exploitation search activities that span their organizational boundaries. This typology includes three models of implementation: ambidextrous, specialized, and diversified implementation. From an empirical perspective, the paper examines the performance consequences when applying these models, and compares their capacity to produce complementarities. Additionally, since firms’ choices in matters of organizational search are viewed as endogenous variables, the paper examines the drivers affecting them and identifies the importance of firms’ absorptive capacity and diversified technological opportunities in determining these choices. The empirical design of the paper draws on new data for manufacturing firms in Spain, surveyed between 2003 and 2006.
    Keywords: exploration-exploitation search, absorptive capacity, technological opportunities, complementarities, firm performance.
    JEL: D21 L21 O32
    Date: 2009–10
  3. By: Angela da Rocha; Beatriz Kury; Joana Monteiro
    Abstract: This paper examines the process by which firms in a cluster start to export based on systemic interactions and the process of diffusion of exporting as a business strategy within the cluster. Two Brazilian manufacturing industries are studied, and within each one a geographic cluster was identified as the origin of dynamic export growth. Players in each industrial cluster, as well as other significant players, were interviewed or identified using secondary sources, and extensive secondary data research was undertaken to study clusters’ historical development. Detailed analysis and a comparison of the two experiences made it possible to draw some general conclusions concerning the similarities and differences between the two clusters in terms of the adoption and diffusion of exporting.
    Keywords: Cluster, Exports, Innovation, Brazil
    JEL: L11 L67 L68
    Date: 2009–09
  4. By: Manuel Portugal Ferreira (Escola Superior de Tecnologia e Gestão - Instituto Politécnico de Leiria); Fernando A. Ribeiro Serra (UNISUL ? Universidade do Sul de Santa Catarina)
    Abstract: In this paper, we use the transaction cost theory (TCT) and the resource-based view (RBV) to discuss three propositions on the models of client-supplier relationships in mature industries. The two theories seem to advance different organizational forms of the client-supplier relationships, and in some instances contradictory. How should firms organize to prosper and grow, namely in the international markets? Through the case study of three Portuguese packaging firms, with primary (interviews) and secondary data, we discuss how the three firms deploy three distinct strategic organization models in a mature industry. One firm utilizes market-based governance mechanisms, and concentrates its production in a few selected locations. Another firm vertically integrates almost the entire value chain of the product to provide full service to its clients. The third firm operates in a model of integrated outsourcing, with the installation "wall to wall" to its clients. The models client-supplier assumed by these firms are based on efficient, stable, and trustworthy relationships, that permit the focus on their core competences and the reduction of the transaction costs. Firms? superior performance requires a proper alignment of hierarchical and relational governance taking in consideration the dimensions of the transactions.
    Keywords: Client-supplier relationship models; Outsourcing; TCT; RBV; Strategic Governance
    JEL: M0 M1
    Date: 2009–09–10
  5. By: Ronivaldo Steingraber; Flávio Gonçalves
    Abstract: This paper analyzes the dynamics of innovation in the economy. Thus, it examines the economic and social conditions involved in the technological progress and promotion of innovations. The economic structure is seen in front of the company's innovative features and the accumulation of capabilities dedicated to the innovation. The social conditions are considered in respect of the role of institutions in the innovation process. The relationship between economic and social environments shape the social capital, responsible for the generation, dissemination and use of technologies that shape the innovation process. The analysis of these conditions for the promotion of innovation is built by means of systemic models of innovation. These models capture innovation in four environments, the national, sectoral, regional and technological. Stylized facts are verified in the literature and confirm the conditions microeconomic, sectoral, regional and institutional into the development of innovations. The artice proposes that the study of innovation incorporates these differences in their theoretical and empirical body.
    Date: 2009
  6. By: Rene Belderbos; Bart Leten; Shinya Suzuki
    Abstract: We examine the role of host countries' academic research strengths in global R&D location decisions by multinational firms. While we expect that a firm's propensity to perform R&D in a host country increases with the strength of local academic research, firms are expected to be heterogeneously positioned to benefit from academic research strengths due to differences in the capacity to absorb and utilize scientific knowledge. We find support for these conjectures in an analysis of foreign R&D activities in 40 host countries and 30 technology fields by 176 leading European, US and Japanese firms during the periods 1995-1998 and 1999-2002. Controlling for a wide range of host country factors, the number of relevant ISI publications by scientists based in the host country has a substantial positive impact on the propensity to conduct foreign R&D. The effect of academic research is significantly larger for firms with a stronger science orientation in R&D - as indicated by citations to scientific literature in prior patents. For host countries with a strong relevant science base, this greater responsiveness of science oriented firms more than offsets a generally greater inclination to concentrate R&D at home. The findings appear robust across a variety of specifications.
    Keywords: R&D internationalization, Knowledge sourcing, Absorptive capacity, Industry-science links
    Date: 2009–08
  7. By: Raff, Horst (Kiel Institute for the World Economy); Wagner, Joachim (Leuphana University Lüneburg)
    Abstract: This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the average productivity of survivors increases. These pro-competitive effects of import penetration on the domestic industry disappear in the long run. The predictions for the short run are confirmed in an empirical study of the German clothing industry.
    Keywords: international trade, firm heterogeneity, productivity, clothing industry
    JEL: F12 F15
    Date: 2009–09
  8. By: Rikard H. Eriksson
    Abstract: This paper aims to shed some light on the influence of geographical proximity on both intra- and inter-industry spillovers by elaborating on the geographical dimension of both localised spillovers and inter-firm knowledge flows. By means of a unique longitudinal micro-database with information on all plants and employees in Sweden, both plant-specific agglomeration measurements and labour markets at various distances from each of the 8,313 plants in the sample were created. OLS-regressions were run to account for what type of co-located activities that is most beneficial to productivity growth of plants between 2001 and 2003; how different types of knowledge flows – in and out from the plant – affect performance, and finally; how geographical proximity influences the effects of both localised spillovers and knowledge flows. The empirical results indicate that it is not possible to establish whether either intra- or inter-industry spillovers are most beneficial unless the geographical dimension is considered. This is because neither too much nor too little proximity (measured as both geographical and cognitive proximity) between co-located activities is likely to produce significant localised spillovers. This seems also to be the case when assessing more directly the impacts of inter-plant knowledge flows via labour mobility – only knowledge flows that are complementary to the existing knowledge base of plants, and neither characterised by too much nor too little geographical proximity, affect plant performance positively. Concerning the outflows of skills, the results indicate that it is less harmful for the dispatching plant if the former employee remains within the local milieu as compared to leaving for a job in another part of the economy.
    Keywords: Agglomerations; Knowledge Spillovers; Labour Mobility; Plant Performance; Geographical Pro
    JEL: R11 Q12 O18
    Date: 2009
  9. By: Céline Allard
    Abstract: Since EU accession, trade flows have exhibited strong dynamics in Central-Eastern Europe (CEE). During the period leading to the current global turmoil, the region has also experienced continuous exchange rate appreciation and rapid FDI inflows, both likely to have affected these countries' competitiveness. This paper describes how the determinants of exports and imports have evolved in CEE countries over 2002-07 and econometrically derives their contribution to trade, with a view to assessing competitiveness developments. The analysis reveals that the global and domestic upswings, along with rising trade market shares, go a long way toward accounting for trade developments in CEE countries until 2007, pointing to continuous nonprice competitiveness gains. It also finds that exchange rate appreciation did not unduly weigh on export and import growth, suggesting that most of it reflected an upward movement in its equilibrium value. While the region entered the current period of global slowdown from a strong competitiveness position, the crisis also exposed the vulnerability of its heavy reliance on global demand to a trade shock.
    Keywords: Central and Eastern Europe , Cross country analysis , Economic models , European Union , Exchange rate appreciation , Exports , Foreign direct investment , Global competitiveness , Imports , Trade ,
    Date: 2009–06–02
  10. By: Nuno Crespo; Maria Paula Fontoura
    Abstract: There is scant evidence on the determinant factors of structural similarity between geographical spaces; moreover, it has been produced considering only the national level. The present study provides evidence on this topic at the regional level, based on the analysis of 275 Portuguese counties. The results obtained confirm the importance of several explanatory factors, suggesting that the structural similarity between Portuguese counties increases with geographical proximity, the existence of a shared boundary, the similarity of factor endowments in terms of physical and human capital and the similarity in terms of economic centrality and market dimension. Key words: productive structure, Portugal, structural similarity, factor endowments, economic geography
    JEL: R11 R12 R30
    Date: 2009–09
  11. By: Cristina Santos (Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP,Faculdade de Economia, Universidade do Porto; INESC Porto)
    Abstract: Recently bibliometrics techniques are being widely used to complement traditional qualitative reviews of the literature in given scientific areas. The majority of these reviews are based in large databases of articles published in ISI indexed journals, overlooking the richness of studies that are being published in key handbooks and books. This is particularly true in the case of entrepreneurship field. In the present paper we provide a survey of the literature based on an in-depth analysis of major handbooks, books and scientific journals in the field, identifying its major topics, their evolution across time and the current trends. From this exercise, we found that entrepreneurship education emerges as a recent theme with most of the papers in the area focusing on entrepreneurial universities, productivity of technology transfer offices, new firm creation and the environmental context. The largest part of these studies analyse US universities or universities from highly developed European countries, such as Germany, Sweden and United Kingdom. The review of the literature performed highlights that the theme of (higher education) students’ entrepreneurial intents is under researched. Furthermore, it uncovers that the (potential) link between university entrepreneurial models and the propensity of students for new venture creation is likely to constitute an interesting and challenging path for future research.
    Keywords: entrepreneurship, bibliometrics; universities
    Date: 2009–09
  12. By: Simon Loertscher (University of Melbourne); Markus Reisinger (University of Munich)
    Abstract: We analyze the competitive effects of backward vertical integration by a partially vertically integrated firm that competes with non-integrated firms both upstream and downstream. We show that vertical integration is procompetitive under fairly general conditions. It can be anticompetitive only if the ex ante degree of integration is relatively large. Interestingly, vertical integration is more likely to be anticompetitive if the industry is less concentrated. These results are in line with recent empirical evidence. In addition, we show that even when vertical integration is procompetitive, it is not necessarily welfare enhancing.
    Keywords: Vertical Integration, Downstream Oligopsony, Downstream Oligopoly, Competition Policy, Capacity Choice
    JEL: D43 L41 L42
    Date: 2009–10

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