nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2009‒12‒05
ten papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Innovation, Productivity and Export: the case of Hungary By László Halpern; Balázs Muraközy
  2. Foreign Competition and Small-Firm Entry in US Manufacturing By Robert M. Feinberg
  3. Productivity effects of innovation modes By Polder, Michael; Leeuwen, George van; Mohnen, Pierre; Raymond, Wladimir
  4. Competitiveness and Growth of the Mexican Economy. By Daniel Chiquiar; Manuel Ramos Francia
  5. Exporting and Product Innovation at the Firm Level By Bratti , Massimiliano; Felice, Giulia
  6. Micro and macro indicators of competition: comparison and relation with productivity change By Polder, Michael; Veldhuizen, Erik; Bergen, Dirk van den; Pijll, Eugène van der
  7. Changes in the productivity of labour and vertically integrated sectors — an empirical study for Italy By Garbellini, Nadia; Wirkierman, Ariel
  8. Interrelationships between human capital and social capital in small and medium sized firms: The effect of age and sector of activity By J. Augusto Felicio; Eduardo Couto; Jorge Caiado
  9. A knowledge based approach to collaboration in basic research By Caminati, Mauro
  10. Textile manufacturing in eight developing countries:How far does the business environment explain firms' productive inefficiency? By Tidiane KINDA; Patrick PLANE; Mohamed CHAFFAI

  1. By: László Halpern; Balázs Muraközy
    Abstract: This paper estimates the relationship between innovation and firm performance by using Community Innovation Survey data for Hungary. It exploits the possibility of linking the innovation data to ownership and disaggregated trade data. Innovative firms are more productive, more likely to trade and export into more countries. Foreign firms are more likely to innovate compared to similar domestic firms, but the amount of R&D is a weaker predictor of the innovative output of foreign firms.
    Date: 2009–12–02
  2. By: Robert M. Feinberg
    Abstract: In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for 86 4-digit NAICS industries on establishment -- plant-level -- births by small firms in several size categories. The major finding is that international pressures, in the form of import share weighted exchange rate appreciation, seem to lead to reduced rates of smallest-firm entry in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed (and there is the suggestion that dollar appreciation may actually benefit small firm entry through access to cheaper inputs where the final product import threat is weak).
    Keywords: small firms, entry, foreign competition, exchange rates
    Date: 2009–03
  3. By: Polder, Michael; Leeuwen, George van; Mohnen, Pierre; Raymond, Wladimir
    Abstract: Many empirical studies have confirmed the positive impact of innovation on productivity at the firm level. The focus tends to be either on R&D driven techno-logical innovation on the one hand, or on organisational changes complemented by ICT on the other. To investigate the effect of different types of innovations on produc-tivity, we propose a model with two innovation input equations (R&D and ICT) that feed into a knowledge production function consisting of a system of three innovation output equations (product innovation, process innovation and organisational innova-tion), which ultimately feeds into a productivity equation. We find that ICT is an im-portant driver of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. Organisational innova-tion has the strongest productivity effects. We only find positive effects of product and process innovation when combined with an organisational innovation.
    Keywords: technological innovation; non-technological innovation; ICT; R&D; productivity; trivariate probit; CDM model;
    JEL: O30 D24
    Date: 2009
  4. By: Daniel Chiquiar; Manuel Ramos Francia
    Abstract: We address the role that deep, structural factors may have as determinants of Mexico’s economic growth. We argue that Mexico’s poor growth performance appears to be associated not only with shorter-run events such as the "lost decade" of the eighties, but also with supply-side features of the economy that have been present for at least four decades. Mexico’s low competitiveness and poor growth potential seem to reflect an institutional framework that tends to support rigid, non-competitive market structures, and incentives that promote the allocation of resources towards unproductive rent-seeking activities relatively more than into investment, production, productivity, and adoption of superior technologies. We present examples of input markets where we believe these issues are central. We conclude that solving this situation requires microeconomic policies that lead to fundamental changes in the incentive structure of the economy.
    Keywords: Competitiveness and growth, productivity, efficiency, comparative advantage.
    JEL: O31 O43 O12
    Date: 2009–11
  5. By: Bratti , Massimiliano; Felice, Giulia
    Abstract: Past research showed that exporters perform better than non-exporters in several domains, micro-level empirical evidence on the innovation-enhancing effect of export is, however, very scant. In this paper, we analyze the relationship between a firm's export status and its product innovation activity by using a rich firm-level survey on Italian manufacturing. First, we find that the positive effect of exporting on product innovativeness is robust to controlling for many sources of firm's observable heterogeneity and to allowing export activity to be endogenous. Second, we report evidence that the effect of exporting on product innovation is likely to be demand-driven, that is to originate from the interaction between domestic firms and foreign customers.
    Keywords: Exporting; Firms; Italy; Manufacturing; Product Innovation
    JEL: F1 O31
    Date: 2009–11–29
  6. By: Polder, Michael; Veldhuizen, Erik; Bergen, Dirk van den; Pijll, Eugène van der
    Abstract: This paper investigates competition in the Dutch manufacturing sector. We look at various indicators that have been used throughout the literature and relate these to productivity growth. Moreover, where possible, the indicators and productivity growth are calculated at both the firm and industry level. This enables us to investigate differences in competition and in its relation with productivity for both aggregation levels. Our results indicate that contemporaneous competition is associated with lower productivity, while lagged competition is positively associated with productivity. This finding is consistent between micro and macro, and robust over the various indicators and industries. The results are consistent with the idea that firms first experience negative effects of changes in competition and need time to adjust, while in the period after adjustment productivity rises again.
    Keywords: competition; productivity change; growth accounts; Production Statistics; micro-macro
    JEL: O47 D24 D4
    Date: 2009
  7. By: Garbellini, Nadia; Wirkierman, Ariel
    Abstract: The object of this paper is to derive measures for the changes in physical labour productivity and to apply them to the case of Italy during the 1995-2000 period. Firstly, section 1, introduces the historical development of selected literature on labour productivity measurement using the notion of vertically integrated sectors and derives measures computable from actual data. In the second place,section 2 describes the series utilised and presents the computation of the previously derived measures. Thirdly, section 3 presents the main results, introducing a typology according to which characterize the determinants behind changes in physical labour productivity, and draws implications for the particular case under study. Some final comments are given in section 4.
    Keywords: Labour productivity measurement; Vertically integrated sectors; Input-Output analysis.
    JEL: B51 O41 C67
    Date: 2009–11–26
  8. By: J. Augusto Felicio (School of Economics and Management (ISEG), Technical University of Lisbon); Eduardo Couto (School of Economics and Management (ISEG), Technical University of Lisbon); Jorge Caiado (CEMAPRE, School of Economics and Management (ISEG), Technical University of Lisbon)
    Abstract: This study explores the interconnection between human factors and social factors and analyses the relations influenced by the specific activity and age of firms. A statistical approach is implemented which applies factor analysis techniques, based on a sample of small and medium sized firms from four sectors of activity which are between four and fifteen years old, and are split into three time periods. It is found that there are interconnected groups of human capital and social capital factors, although a sizeable proportion of the literature conceptually separates these factors and deals with them individually. It is also ascertained that this relationship is influenced by the field of activity and the age of the firms.
    Keywords: Entrepreneurship, Factor analysis, Human capital, Management, Social capital
    JEL: M10
    Date: 2009–11
  9. By: Caminati, Mauro
    Abstract: This paper suggests a knowledge based approach to the formation of collaboration networks in basic research. Though mainly focused on foundations, it provides the example of a knowledge distribution supporting pairwise equilibrium outcomes which correspond to a star-like collaboration network.
    Keywords: ideas; knowledge endowment; modularity; collaboration game; pairwise equilibrium; star network.
    JEL: O30 D85
    Date: 2009–11–25
  10. By: Tidiane KINDA (Fonds Monétaire International); Patrick PLANE (Centre d'Etudes et de Recherches sur le Développement International); Mohamed CHAFFAI (Université Sfax)
    Abstract: Production frontiers and inefficiency determinants are estimated by using stochastic models. Textile manufacturing is considered for a sample of eight developing countries encompassing about one thousand firms. We find that the most influential individual inefficiency determinants relate to in-house organization. Both access to financing and infrastructural services (e.g. power supply, modern information technologies…) also matter. Information about determinants is then regrouped into three broad categories (e.g. managerial organization, economic environment, institutions) by using principal component analyses. Results do not reject the hypothesis that managerial know-how and the quality of institutions are the most important determinants. The impact of the external economic environment is of less importance although statistically significant. Sector-based simulations are then proposed in order to assess productivity gains which would occur if firms had the opportunity to evolve in most favorable environments within the sample. Domestic and international production contexts are considered, respectively. When referring to domestic benchmarks, the contribution of in-house organization prevails as the main source of gains for the eight countries. The role of institutions proves dominant for Egypt and India when focusing on international simulations.
    Keywords: Technical efficiency, external economic environment, firms, institutions, one step stochastic frontier method, organizational know-how, productivity, textile
    Date: 2009

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