nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒03‒20
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Control by proximity: evidence from Aerospace Valley competitiveness cluster (In French) By Rachel LEVY (LEREPS); Damien TALBOT (GREThA UMR CNRS 5113)
  2. The effect of R&D intensity on corporate social responsibility By Padgett, Robert C.; Galán Zazo, José Ignacio
  3. Effects of user's cooperation and location on innovation activity of firms: an input-output approach. By Sánchez González, Gloria; Herrera, Liliana
  4. A Sectoral Approach to the Diffusion of ICT:Empirical Evidence on Italian Firms By Davide Arduini; Leopoldo Nascia; Antonello Zanfei
  6. Trade Liberalization, Competition and Growth By Omar Licandro; Antonio Navas Ruiz
  7. Learning Clusters as Drivers - A perspective on knowledge generation and learning processes within clusters By Bode, Alexander; Talmon l'Armee, Tobias
  8. Subsidy and networking: The effects of direct and indirect support programs in the cluster policy By Nishimura, Junichi; Okamuro, Hiroyuki
  9. Geographic clustering and network evolution of innovative activities: Evidence from China’s patents By Martha Prevezer; Pietro Panzarasa; Tore Opsahl
  10. RURAL DEVELOPMENT NETWORK AND TERRITORIAL COMPETITIVENESS By Popovic, Vesna; Katic, Branko; Zivanovic Miljkovic, Jelena
  11. The impact of technological regimes on patterns of sustained and sporadic innovation activities in UK industries By Marion Frenz; Martha Prevezer
  12. Multinational Strategies and Developing Countries in Historical Perspective By Geoffrey Jones
  15. Strategic Behavior across Gender: A Comparison of Female and Male Expert Chess Players By Gerdes, Christer; Gränsmark, Patrik

  1. By: Rachel LEVY (LEREPS); Damien TALBOT (GREThA UMR CNRS 5113)
    Abstract: The objective of this paper is to determine how the proximity in its various dimensions (geographical and organisational in particular) supports the relations of control between actors. Based on an empirical analysis of the network of collaboration of the competitiveness cluster Aerospace Valley, we propose indicators allowing to clarify this control. This analysis enables us to identify the actors in position to exert this control in the cluster. By using centrality indicators of the actors within the network, we could observe the position of control of certain establishments and groups in the cluster. We show that the historically central actors preserve the control of the relations within the cluster, characterized by a geographical proximity between the partners. We also show that major suppliers, such as Safran or Thales, exert a control more targeted through a strategic management of the collaborations portfolio of their establishments. Lastly, the public laboratories and the universities occupy a place of intermediary in the network of innovation.
    Keywords: proximities, control, competitiveness cluster, network, aeronautics
    JEL: L14 R38
    Date: 2010
  2. By: Padgett, Robert C. (Departamento de Administración y Economía de la Empresa, Facultad de Economía y Empresa, Universidad de Salamanca); Galán Zazo, José Ignacio (Departamento de Administración y Economía de la Empresa, Facultad de Economía y Empresa, Universidad de Salamanca)
    Abstract: This study examines the impact that Research and Development (R&D) intensity has on Corporate Social Responsibility (CSR). We base our research on the Resource Based View (RBV) theory, which contributes to our analysis of R&D intensity and CSR because this perspective explicitly recognizes the importance of intangible resources. Both R&D and CSR activities can create assets that provide firms with competitive advantage. Furthermore, the employment of such activities can improve the welfare of the community and satisfy stakeholder expectations, which might vary according to their prevailing environment. As expressions of CSR and R&D vary throughout industries, we extend our research by analyzing the impact that R&D intensity has on CSR across both manufacturing and non-manufacturing industries. Our results show that R&D intensity positively affects CSR and that this relationship is significant in manufacturing industries, while a non-significant result was obtained in non-manufacturing industries.
    Keywords: Competitive Advantage, Corporate Social Responsibility, Industry, Resource Based View Theory, Research and Development.
    Date: 2009–12
  3. By: Sánchez González, Gloria (Departamento de Dirección y Economía de la Empresa, Facultad de Ciencias Económicas y Empresariales, Universidad de León); Herrera, Liliana (Departamento de Dirección y Economía de la Empresa, Facultad de Ciencias Económicas y Empresariales, Universidad de León)
    Abstract: The present study analyses the profile of firms cooperating with users and estimates the effect of this cooperation on firms’ innovation activities. This issue is particular novel and important as users provide information that will be very useful for generating new products and making the innovation process more efficient. The findings confirm that cooperation with users is a tool for progress and development as it has a positive influence on both input and output of firms’ innovation process. This paper makes three important contributions to the literature. First, we analyse the effect of cooperation with users on how firms distribute their R&D expenditures (basic research, applied research and technological development) in order to make clear how this tool can affect the different strategies for generating knowledge. Second, we also study the impact of this kind of cooperation on the degree of novelty of new products, with the aim of explaining how it affects the productivity of R&D activities. Third, to estimate these effects, the study analyses these relationships and explore the role of proximity in the cooperation with users taking into account the location of this agent (domestic versus international users). Results confirm that cooperation with users increases investments in activities that generate knowledge with a specific practical objective and which are near to firms’ technological domain (applied research and technological development). Independently of user’s location, firms increase their investment in technological development to act quickly in the market and to obtain profits. The study also concludes that cooperation with users has positive effects on innovation outputs and its degree of novelty (radical versus incremental innovations). Nonetheless, these effects are different according to user’s location. Cooperation with domestic users stimulates the sales of radical innovations and cooperation with international users increase sales of incremental innovations.
    Keywords: Cooperation with users, basic research, applied research, technological development, degree of novelty, location.
    Date: 2009–05
  4. By: Davide Arduini (Dipartimento di Economia e Metodi Quantitativi, Università di Urbino (Italy)); Leopoldo Nascia (National Bureau of Statistics, Italy); Antonello Zanfei (Dipartimento di Economia e Metodi Quantitativi, Università di Urbino (Italy))
    Abstract: It is suggested that our understanding of ICT adoption in the Italian economy can benefit from complementary insights derived from some of the most important theoretical approaches to sectorial diffusion of innovation (epidemic, probit and systemic). As regards the epidemic models the key variables are firms’ market performance indicators. Probit models call our attention to the size of user firms, their ability to utilize technology and the degree of industrial concentration. Systemic models emphasise the role played by the public sector, which is viewed as catalyst and stimulator of innovative activities in the industrial system, and by the evolution of the technological and infrastructural context in which users are active. We utilize a composite indicator, which describes the use of ICT in a sample of 1947 Italian firms in 2004 and 2005, as the dependent variable for an econometric exercise which allows to assess the importance of factors identified in the different approaches emerging from the existing literature.
    Keywords: Truncated and Censored Models, Market structure and Size distribution of firms, Diffusion processes and Technology adoption.
    JEL: C34 L11 O33
    Date: 2010
  5. By: Nabradi, Andras
    Keywords: Innovation, knowledge, infrastructure, institutions, Agribusiness, Labor and Human Capital,
    Date: 2009–12
  6. By: Omar Licandro; Antonio Navas Ruiz
    Abstract: Increasing evidence support the claim that international trade enhances innovation and productivity growth through an increase in competition. This paper develops a two-country endogenous growth model, with firm specific R&D and a continuum of oligopolistic sectors under Cournot competition to provide a theoretical support to this claim. Since countries are assumed to produce the same set of varieties, trade openness makes markets more competitive, reducing prices and increasing quantities. Under Cournot competition, trade is pro-competitive. Since firms undertake cost reducing innovations, the increase in production induced by a more competitive market push firms to innovate more. Consequently, a reduction on trade barriers enhances growth by reducing domestic firm's market power.
    Keywords: Trade Openness, Growth, Competition
    JEL: F13 F43 O3
    Date: 2010–03–04
  7. By: Bode, Alexander; Talmon l'Armee, Tobias
    Date: 2009–10–13
  8. By: Nishimura, Junichi; Okamuro, Hiroyuki
    Abstract: Subsidy and networking: The effects of direct and indirect support programs in the cluster policy Industrial clusters have attracted considerable attention worldwide for regional innovation. Thus, policymakers in various countries have recently developed their specific cluster policies. However, there are few empirical studies yet on cluster policies. This paper empirically evaluates the “Industrial Cluster Project” (ICP) initiated by the Ministry of Economy, Trade and Industry (METI) in 2001, using original questionnaire data. We address two research questions on the effect of the ICP: if the participants of this project that exploit various support programs are more successful in alliance/network formation within the cluster than the others, and which kind of support program of the ICP contributes to firm performance. Different from similar preceding projects, the ICP aims at the autonomous development of regional industries and comprises both direct R&D support and indirect networking/coordination support. The main idea of public support of local firms clearly shifted toward networking and coordination for those who can help themselves. Thus, our special attention is paid to the differences between the direct R&D support and indirect networking/coordination support, which bring out the conditions necessary for the effective organization of cluster policies for improving firm performance. Our empirical evaluation is based on a sample of 511 firms from a recent original survey. We first employ the propensity score and the difference-in-differences (DID) estimation to analyze the degree of alliance/network formation before and after participating in the ICP. Then we use Heckman’s two-step procedure and the negative binomial model to examine the effects of support programs on firm performance. The estimation results suggest that cluster participants that exploit support programs (especially indirect support measures) expand industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance, thus firms should select the most effective program according to their aims. Indirect support programs have an extensive and strong impact on outputs, especially innovation outcomes, while direct R&D support has a weak effect except for R&D subsidy.
    Keywords: Cluster policy, industrial cluster, R&D support, subsidy, networking
    JEL: O25 O38 R11
    Date: 2009–12
  9. By: Martha Prevezer; Pietro Panzarasa; Tore Opsahl
    Abstract: This study examines the spatial distribution and social structure of processes of learning and knowledge creation within the context of the inventor network connecting Chinese patent teams. Results uncover mixed tendencies toward both geographic co-location and dispersion arising from combined processes of intra-cluster learning and extra-cluster networking. These processes unfold within a social network that becomes less fragmented over time: as a giant component emerges and increases in size, social distances among inventors become longer. The interplay between geographic and network proximity is assessed against China’s institutional environment. Implications of the findings are discussed for regional development and policy-making.
    Keywords: clusters; knowledge transfer; social networks; patenting
    JEL: L11 M13 O53 R12
    Date: 2010–03
  10. By: Popovic, Vesna; Katic, Branko; Zivanovic Miljkovic, Jelena
    Abstract: In this paper, as a case-study, the authors examine development potentials and capacity building of local actors in one of the future NUTS III regions of Serbia, functional region KolubaraâMaÄva-Podrinje, that encompass 14 municipalities of Kolubara and MaÄva districts. The results of the situation analysis, including SWOT matrix, indicate local actorsâ animation and its regional networking as one of the basic factors of territorial development.
    Keywords: Territorial competitiveness, Rural networking, Capacity of local actors, Rural development support, KolubaraâMaÄva-Podrinje region, Agribusiness, Community/Rural/Urban Development, International Development,
    Date: 2009–12
  11. By: Marion Frenz; Martha Prevezer
    Abstract: This paper brings together ideas about technological regimes and looks at their influence on patterns of sustained or persistent innovation across UK manufacturing and services industries using two waves of the UK Community Innovation Surveys. It builds a link between technological regimes and Schumpeterian patterns of innovation, and tests these on the CIS databases. It creates a model using the variables within the technological regime to see whether these can explain sustained patterns of innovation. These variables include appropriability, cumulativeness, technological opportunity and closeness to the science base as well as enterprise size. The paper finds that strong appropriability, a high degree of cumulativeness, and closeness to the applied science base are strong predictors of sustained innovation activities. The results on technological opportunity are ambiguous. High tech manufacturing industries, i.e. chemicals and scientific instruments as well as some high tech services i.e. telecoms are more likely to register persistent innovation.
    Date: 2010–03
  12. By: Geoffrey Jones (Harvard Business School, Entrepreneurial Management Unit)
    Abstract: This working paper offers a longitudinal and descriptive analysis of the strategies of multinationals from developed countries in developing countries. The central argument is that strategies were shaped by the trade-off between opportunity and risk. Three broad environmental factors determined the trade-off. The first was the prevailing political economy, including the policies of both host and home governments, and the international legal framework. The second was the market and resources of the host country. The third factor was competition from local firms. The impact of these factors on corporate strategies is explored, as shown in Fig. 1, during the three eras in the modern history of globalization from the nineteenth century until the present day. The performance of specific multinationals depended on the extent to which their internal capabilities enabled them to respond to these external opportunities and threats.
    Date: 2010–03
  13. By: Bronisz, Urszula; Heijman, Wim
    Abstract: This article aims at presenting different approaches to the phenomenon of social capital. The concept of social capital is ambiguous and that is why we will highlight a number of definitions of this notion. The central attention of the paper focuses on the relationship between social capital and regional development and competitiveness. The fundamental question concerns the impact of social capital on the regional economic performance. Hence, we will survey the empirical examination of 16 Polish regions in terms of social capital. We will also study whether the regional level of social capital depends on the level of competitiveness. The purpose of this article is also to make a contribution to the discussion concerning the relationship between economic development and social capital.
    Keywords: Social capital, Regional growth, Polish regions, Community/Rural/Urban Development, International Development, Labor and Human Capital,
    Date: 2009–12
  14. By: Todorovic, Sasa; Muncan, Minajlo; Miljkovic, Marina
    Abstract: Family farms are the most significant development entities of rural areas. The welfare of the rural population depends on the success of their business operations and ability to survive in the market. Bearing this in mind, it is necessary to find ways and create the adequate conditions to activate development potentials. The objective of this study is therefore to systematize potential sources of farm householdsâ income, with special emphasis on how and why they diversify their income and activities. Results of the research unambiguously show that diversification of income and activities are now integral part of business activities of numerous farms. No doubt, importance of diversification will increase in future period, considering that more dynamic development of farms is not possible without engagement of all potentials at their disposal.
    Keywords: Diversification, Competitiveness, Family farms, Agribusiness, Farm Management, Labor and Human Capital,
    Date: 2009–12
  15. By: Gerdes, Christer (SOFI, Stockholm University); Gränsmark, Patrik (SOFI, Stockholm University)
    Abstract: This paper aims to measure differences in risk behavior among expert chess players. The study employs a panel data set on international chess with 1.4 million games recorded over a period of 11 years. The structure of the data set allows us to use individual fixed-effect estimations to control for aspects such as innate ability as well as other characteristics of the players. Most notably, the data contains an objective measure of individual playing strength, the so-called Elo rating. In line with previous research, we find that women are more risk-averse than men. A novel finding is that males choose more aggressive strategies when playing against female opponents even though such strategies reduce their winning probability.
    Keywords: risk aversion, competitiveness, gender, culture, mixed-sex competition
    JEL: J16 J70 J71
    Date: 2010–02

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