nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒04‒04
eight papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The International Strategy of Firms: the Role of Endogenous Product Differentiation By Pierre Blanchard; Carl Gaigné; Claude Mathieu
  2. Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness? By Degner, Harald
  3. The geography and co-location of European technology-specific co-inventorship networks By Christ, Julian P.
  4. Strategic Accessibility Competition By E. Bacchiega; E. Randon; L. Zirulia
  5. Transactions Cost Theory influence in strategy research: A review through a bibliometric study in leading journals By Rodrigo Martins; Fernando Ribeiro Serra; André da Silva Leite; Manuel Portugal Ferreira; Dan Li
  6. Regional expression of tourism development By Vaz, Margarida; Silva, João Albino; Manso, José Pires
  7. The Dynamic of Technological Capabilities of Countries: A Dual Approach Using Composite Indicators & Data Envelopment Analysis By Filippetti, Andrea; Peyrache, Antonio
  8. Cluster Sustainability in Peripheral Regions: A case study on Israel´s and Finland´s biotechnology industries By Shiri M. Breznitz; Antti-Jussi Tahvanainen

  1. By: Pierre Blanchard; Carl Gaigné; Claude Mathieu
    Abstract: We study the impact of trade liberalization on the international strategy of firms (to export and/or invest abroad as well as the number of products to be produced and exported) when product differentiation is endogenous. By considering product differentiation as a strategic variable, our analysis sheds new light on the impact of trade barriers on the decision to produce abroad and on the choice of product range, in accordance with recent empirical evidence. Indeed, we show that, even though technology exhibits the same productivity for each variety, firms drop some varieties with trade integration. In addition, our results reveal that, contrary to the standard theoretical literature, the relationship between the decision to export and trade costs is non-linear. When trade costs are relatively high, each firm export and is multi-product. Then, when trade costs take intermediate values, firms may invest abroad and the choice of producing abroad results from a prisoner's dilemma game. Finally, when trade costs are low, firms export but become single-product.
    Keywords: Foreign direct investment, exports, multi-product competition, endogenous differentiation product, trade integration
    JEL: F12 F23 L11 L25
    Date: 2010
  2. By: Degner, Harald
    Abstract: Many papers have been written about the effect of firm size on innovativeness, revealing a positive, a negative or a mixed impact. To this day, the so-called Schumpeterian hypothesis of the above-average innovativeness of large firms has been neither confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or a specific sector, or they analyze a very short time period. Windows of technological opportunities, providing technological booms for both firms and sectors, have not yet been investigated. An analysis of Germany’s chemical, metal and electronic-engineering sectors between 1877 and 1932 reveals that the sector-specific long-term relationship between firm size and innovativeness is negative, except during times of specific technological booms. In combination with firm-specific characteristics, this new aspect can contribute to a better understanding of the long-term relationship between firm size and innovativeness. --
    Keywords: Effect of firm size on innovativeness,technological boom,Schumpeterian hypothesis
    Date: 2010
  3. By: Christ, Julian P.
    Abstract: This paper contributes with empirical findings to European co-inventorship location and geographical coincidence of co-patenting networks. Based on EPO co-patenting information for the reference period 2000-2004, we analyze the spatial con figuration of 44 technology-specific co-inventorship networks. European co-inventorship (co-patenting) activity is spatially linked to 1259 European NUTS3 units (EU25+CH+NO) and their NUTS1 regions by inventor location. We extract 7.135.117 EPO co-patenting linkages from our own relational database that makes use of the OECD RegPAT (2009) files. The matching between International Patent Classification (IPC) subclasses and 44 technology fields is based on the ISI-SPRU-OST-concordance. We con firm the hypothesis that the 44 co-inventorship networks differ in their overall size (nodes, linkages, self-loops) and that they are dominated by similar groupings of regions. The paper offers statistical evidence for the presence of highly localized European co-inventorship networks for all 44 technology fields, as the majority of linkages between NUTS3 units (counties and districts) are within the same NUTS1 regions. Accordingly, our findings helps to understand general presence of positive spatial autocorrelation in regional patent data. Our analysis explicitly accounts for different network centrality measures (betweenness, degree, eigenvector). Spearman rank correlation coefficients for all 44 technology fields confirm that most co-patenting networks co-locate in those regions that are central in several technology-specific co-patenting networks. These findings support the hypothesis that leading European regions are indeed multi- filed network nodes and that most research collaboration is taking place in dense co-patenting networks. --
    Keywords: Co-patenting,co-inventorship,networks,linkages,co-location,RegPAT
    JEL: C8 O31 O33 R12
    Date: 2010
  4. By: E. Bacchiega; E. Randon; L. Zirulia
    Abstract: We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are located in regions with different ex-ante transport costs to reach the final market. We characterize the equilibrium of the two-stage game in which firms first invest to improve market accessibility and then compete in prices. Efforts in accessibility improvement crucially depend on the interplay between the willingness to pay for the quality premium of the median consumer and the ex-ante difference in accessibility between regions. From the social standpoint, all the accessibility investment should be carried out by the high-quality firm. Finally quality choice is endogenized.
    JEL: L13 R42 L90
    Date: 2010–03
  5. By: Rodrigo Martins (Universidade do Sul de Santa Catarina); Fernando Ribeiro Serra (Universidade do Sul de Santa Catarina); André da Silva Leite (Universidade do Sul de Santa Catarina); Manuel Portugal Ferreira (globADVANTAGE ? Center of Research on International Business & Strategy, Instituto Politécnico de Leiria); Dan Li (Kelley School of Business)
    Abstract: Transaction cost theory (TCT) is widely used in several management disciplines. Its value for explaining organizational phenomena and managers? decisions is well accepted and has been recognized with two Nobel laureates (Ronald Coase and Oliver Williamson). In this paper we examine the impact of the TCT on extant research in top tier management journals. We conduct a bibliometric study supported in the analysis of citations and co-citations to uncover the connections between authors and presumably theories. We conclude that the TCT, albeit its specific focus on the transactions as the unit of analysis, is present in a majority of management- and business-related research.
    Keywords: transaction costs theory, bibliometric study, strategy research, review
    JEL: M0 M1
    Date: 2010–04–06
  6. By: Vaz, Margarida; Silva, João Albino; Manso, José Pires
    Abstract: This paper aims to highlight the importance of tourism to strengthen the capacities of the different regions and their resources. With this goal in mind an empirical study was conducted in a tourist destination located in the inner part of Portugal (Beira Interior), which aimed to measure the satisfaction obtained by tourists and also to identify the elements of the supply that the demand considers more important to choose this destination. The research stated that the symbolic aspects related to the specific resources of the region were the most important elements that help tourists to choose their destination and the same elements are also those that make tourists more satisfied. Assuming that the symbolic contents are in fact the underlying identity of the region, one can conclude that the more the identity of the region is reinforced, the more the difference is motivating and the more this identity is a key factor of its attractiveness
    Keywords: regional development; differentiation; specific resources; tourist destination; demand-oriented assessment
    JEL: L83 R11 C1
    Date: 2010–03
  7. By: Filippetti, Andrea; Peyrache, Antonio
    Abstract: One of the main characteristics of the technological capabilities of countries has always been their uneven distribution across the countries. This paper explores the dynamic of technological capabilities for a sample of 42 countries over the period 1995-2007 introducing some methodological novelties. The results suggest that a process of convergence of technological capabilities has occurred to some extent. However, this has not been complete as some countries are still unable to reach a balanced growth in the different components of technological capabilities. We conclude by arguing that the production of technology can no longer be considered a privilege of a few advanced countries. This is going to bear consequences in the global arena in terms of trade, international division of labour and technological specialization
    Keywords: technological capabilities; globalization of technology; composite indicators; data development analysis; 42 cross-country comparisons; large emerging countries
    JEL: O5 O3
    Date: 2010–03–24
  8. By: Shiri M. Breznitz; Antti-Jussi Tahvanainen
    Abstract: Even with globalization, industrial clusters are maintaining their importance in today’s economy. With the decomposition of production we find that clusters are becoming focused on specific industries and stages of production. This paper analyzes two peripheral western countries, Finland and Israel, which saw success in their ICT clusters and wanted to duplicate this success building on their knowledge in the life science industry to create biotechnology clusters. This paper focuses on two innovation-based clusters, the bio¬technology agglomerations in Rehovot, Israel, and Helsinki, Finland. These industrial districts consist of companies, many spun out of university research, that are either devoted to early-stage R&D (Israel), or choose to conduct the entire business cycle (Finland). Utilizing a multi-method study that includes both quantitative and qualitative research, with a series of in-depth interviews and site visits, archival and statistical data, the paper investigates whether a cluster of young research companies can become the basis of industrial growth and bring economic sustainability to a region. We find that while the firms’ strategic choices regarding their focus on certain positions in the value chain do not necessarily have any direct implications on the sustainability of the respective clusters as such, a variety of other characteristics necessary for long-term sustainability are missing in both clusters. These include particularly inter-firm knowledge flows within the clusters, an active and demanding VC market, connections to international expertise, and opportunities to recruit experienced expertise.
    Keywords: clusters, biotechnology, peripheral regions, sustainability
    Date: 2010–03–24

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