nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒04‒11
eighteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Heterogeneity in Managerial Strategies and Internationalization of Firms: the case of Italy By Giorgia Giovannetti; Giorgio Ricchiuti; Margherita Velucchi
  2. What Determines the Innovative Success of Subsidized Collaborative R&D Projects? – Project-Level Evidence from Germany – By Michael Schwartz; Francois Peglow; Michael Fritsch; Jutta Günther
  3. Determinants of Energy Intensity in Indian Manufacturing Industries: A Firm Level Analysis By Sahu, Santosh; Narayanan, K
  4. Management Practices and Firm Performance in Japanese and Korean Firms -An Empirical Study Using Interview Surveys- By MIYAGAWA Tsutomu; Keun LEE; KABE Shigesaburo; Junhyup LEE; Hyoungjin KIM; YoungGak KIM; EDAMURA Kazuma
  5. Knowledge Spillovers as a Central Element in Theories about Knowledge-Based Regional Development: Advancement in Theory and Obstacles for Empirical Research By Peter Franz
  6. Energy use and energy efficiency development in the German and Colombian textile industries By Clara Inés Pardo Martínez
  7. Networks, Irreversibility and Knowledge Creation. By Patrick Llerena; Muge Ozman
  8. Enhance the competitiveness of the Arab SMEs in the knowledge economy By Alasrag, Hussien
  9. Analysis of energy efficiency development in the German and Colombian food industries By Clara Inés Pardo Martínez
  10. Robustness to strategic uncertainty in price competition By Andersson, Ola; Argenton, Cédric; Weibull, Jörgen
  11. The Outcomes of Individual-level Technology Transfer and the Role of Research Collaboration Networks By Tuomo Nikulainen
  12. Technology transfer from universities and public research institutes to firms in Brazil: what is transferred and how the transfer is carried out. By Luciano Martins Costa Póvoa; Márcia Siqueira Rapini
  13. An Empirical Study of Corruption in Ports By Sequeira, SANDRA; Djankov, SIMEON
  14. Game theory on strategic communication: an approach from Thomas S. Schelling By Estrada, Fernando
  15. Strategic Behaviour, Resource Valuation and Competition in Electricty Markets By Miguel A. Espinosa; Alvaro J. Riascos Villegas
  16. Decomposition of Industrial Energy Consumption in Indian Manufacturing : The Energy Intensity Approach By Sahu, Santosh; Narayanan, K
  17. Institutional Complexity and Managerial Efficiency: A Theoretical Model and an Empirical Application By D.Forrest; M.Jara; D.Paolini; J.D.Tena
  18. Energy efficiency development in German and Colombian non-energy-intensive sectors By Clara Inés Pardo Martínez

  1. By: Giorgia Giovannetti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Giorgio Ricchiuti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Margherita Velucchi (Università degli Studi di Firenze, Dipartimento di Statistica “G. Parenti”)
    Abstract: The recent empirical literature on firms’ performance has focused on the multidimensional concept of firms’ managerial strategies. In this paper, we analyze the relationship between firms’ managerial strategies and firms’ performance, accounting for entrepreneur’s specific characteristics, firm’s strategies, organizational capabilities. We also emphasize the role of firms’ internationalization mode. We match and merge three different datasets for Italy, the Capitalia survey, ICE-Reprint and AIDA for the period 2001-2003 and investigate a possible non-linear impact of managerial strategies on firms’ erformance. The specific characteristics of the entrepreneur do not seem to significantly affect firms’ performance, while the mode of internationalization plays a role. We find evidence of some important non linearities when we single out the role of skilled workers and managers in determining firm’s success in highly competitive markets.
    Keywords: Managerial Strategies, Internationalization, Panel Analysis, Non-linearities
    JEL: C1 F1 F2 L1
    Date: 2010
  2. By: Michael Schwartz; Francois Peglow; Michael Fritsch; Jutta Günther
    Abstract: Systemic innovation theory emphasizes that innovations are the result of an interdependent exchange process between different organizations. This is reflected in the current paradigm in European innovation policy, which aims at the support of collaborative R&D and innovation projects bringing together science and industry. Building on a large data set using project-level evidence on 406 subsidized R&D cooperation projects, the present paper provides detailed insights on the relationship between the innovative success of R&D cooperation projects and project characteristics. Patent applications and publications are used as measures for direct outcomes of R&D projects. We also differentiate between academic-industry projects and pure inter-firm projects. Main results of negative binomial regressions are that large-firm involvement is positively related to pa-tent applications, but not to publications. Conversely, university involvement has positive effects on project outcomes in terms of publications but not in terms of patent applications. In general, projects’ funding is an important predictor of innovative success of R&D cooperation projects. No significant results are found for spatial proximity among cooperation partners and for the engagement of an applied research institute. Results are discussed with respect to the design of R&D cooperation support schemes.
    Keywords: R&D Cooperation; Innovation; Academic-Industry-Linkages; Innovation Policy
    JEL: O31 O32 O38
    Date: 2010–03
  3. By: Sahu, Santosh; Narayanan, K
    Abstract: The demand for energy, particularly for commercial energy, has been growing rapidly with the growth of the economy, changes in the demographic structure, rising urbanization, socio-economic development, and the desire for attaining and sustaining self-reliance in some sectors of the economy. In this context the energy intensity is one of the key factors, which affect the projections of future energy demand for any economy. Energy intensity in Indian industry is among the highest in the world. According to the GoI statistics, the manufacturing sector is the largest consumer of commercial energy in India. Energy consumption per unit of production in the manufacturing of steel, aluminum, cement, paper, textile, etc. is much higher in India, even in comparison with some developing countries. In this study we attempt to analyze energy intensity at firm level and define energy intensity as the ratio of energy consumption to sales turnover. The purpose of this study is to understand the factors that determine industrial energy intensity in Indian manufacturing. The results of the econometric analysis, based on firm level data drawn from the PROWESS data base of the Centre for Monitoring Indian Economy during recent years, identify the sources of variation in energy intensity. Also, we found a non-linear ‘U’ shaped relationship between energy intensity and firm size, implying that both very large and very small firms tend to be more energy intensive. The analysis also highlights that ownership type is an important determinant of energy intensity. We found that foreign owned firms exhibit a higher level of technical efficiency and therefore are less energy intensive. The technology import activities are important contributors to the decline in firm- level energy intensity. The paper also identifies that there is a sizable difference between energy intensive firm and less energy intensive firms. In addition the results shows that younger firms are more energy efficient as compared to the older firms and an inverse U’ shaped relationship is found between the energy intensity and the age of the firm.
    Keywords: Energy Intensity; Commercial Energy Consumption; Indian Manufacturing Industries
    JEL: B23 Q4
    Date: 2010–01–08
  4. By: MIYAGAWA Tsutomu; Keun LEE; KABE Shigesaburo; Junhyup LEE; Hyoungjin KIM; YoungGak KIM; EDAMURA Kazuma
    Abstract: To compare management practices between Japanese and Korean firms, we conducted interview surveys on organizational and human resource management based on Bloom and Van Reenen (2007). The average management scores resulting from the interview surveys in Japanese firms were higher than in Korean firms. The gap in the scores between Japan and Korea can be explained by more conservative human resource management practices in Korean small and medium sized firms. We regressed some indicators representing management practices on firm performance. Estimation results suggest that human resource management affects firm performance in Korean firms. In Japanese firms, we expect that organizational reform plays a role in improving firm performance in the service sector.
    Date: 2010–03
  5. By: Peter Franz
    Abstract: As scientists and policymakers tend to interpret changes in the economy as a trend towards an increasingly knowledge-based economy, their recommendations and strategies for regional economic development frequently contain elements how to intensify the knowledge flows in the region concerned. Knowledge flows come into existence from intentional action, but also in an unintended way as externalities or knowledge spillovers. This paper reviews the ways regional and urban economics has dealt with the concept of knowledge spillovers. Knowledge spillovers are defined within a conceptual framework that points out different uses of knowledge in economics. The concept’s operationalisations in diverse empirical studies are systematised and discussed. After a critical review of the current state of research, policy strategies aiming to intensify knowledge spillovers are classified. The paper concludes with an outlook on promising new approaches to research knowledge spillovers and on the elaboration of more efficient policy strategies.
    Keywords: knowledge spillovers; tacit knowledge; codified knowledge; transfer mechanisms; related variety
    JEL: D83 R11 R12
    Date: 2010–03
  6. By: Clara Inés Pardo Martínez
    Abstract: This paper analyses energy efficiency development in the German and Colombian textile industries as case studies, using three alternative indicators to measure energy efficiency performance. The study analyses energy efficiency in the textile industry at the ISIC three-digit level of aggregation for the years 1998 to 2005. Comparing the results of the three alternative indicators, the German and Colombian textile industries improved their energy efficiency performance during the sample period. The energy consumption of each textile manufacturing activity corresponded to its production level, indicating the direct relation between output and energy use. The results show considerable variation in energy efficiency between the German and Colombian textile industries. A second-stage application of the constant elasticity of substitution (CES) production function reveals that in the German textile industry, capital and energy price variables enhance the efficiency of the gross production-energy ratio, whereas in the Colombian textile industry, labour, materials and plant capacity utilisation variables enhance the efficiency of the gross production-energy ratio. Moreover, in the German textile manufacturing activities, improvements in energy efficiency are achieved mainly through process changes encouraged by energy prices and as an investment strategy, whereas in the Colombian textile manufacturing activities, improvements in energy efficiency are achieved mainly by changes in the production processes, investments in R&D and application of new technologies. These results show the importance of technology, economies of scale, and energy efficiency-oriented policies and management strategies in improving energy efficiency within the textile industry.
    Date: 2009–07–25
  7. By: Patrick Llerena; Muge Ozman
    Date: 2010
  8. By: Alasrag, Hussien
    Abstract: Due to their increasing importance to production growth and vital relation with various productive sectors in society, small and medium enterprises (SMEs) have become one of the key instruments to face economic and social problems and achieve development objectives in most industrial and developing countries. Statistics show that SMEs represent 90% of total companies in the vast majority of economies worldwide and provide 40-80% of total job opportunities in addition to contributing largely to GDPs of many countries. For example, they constitute about 99% of the total private business, non-agricultural in Egypt, and contribute about 80% of the total added value produced by the private sector, with about two-thirds of the labor force and three-quarters of workers in special functions outside the agricultural sector. for Kuwait, this sector constitutes approximately 90% of the private workforce, including labor and imported an estimated 45% of the labor force, employment and national rates of less than 1%, in Lebanon, more than 95% of the total enterprises, contribute about 90% of the jobs. In the UAE , small and medium enterprises accounted about 94.3% of the economic projects in the country, and employs about 62% of the workforce and contributes around 75% of the GDP of the state. In addition, they account for 96% of the GDP in Yemen in 2005, and about 77%, 59%, 25% in Algeria, Palestine and Saudi Arabia, respectively, during the same year , while the contribution of these projects range between 25% -40% of the GDP of Egypt.This research aims to study enhancing the competitiveness of small and medium business enterprises in the Arab Countries under the knowledge economy in the light of the growing interest in it, through identification of the concept and importance of small business enterprises for the Arab States, the most important challenges facing development, and finally the research tries to propose a number of policy recommendations to develop and activate this important sector in the Arab countries under the knowledge economy.
    Keywords: competitiveness ; small and medium business enterprises ; the Arab Countries ; the knowledge economy
    JEL: L53 O31
    Date: 2010–03
  9. By: Clara Inés Pardo Martínez
    Abstract: Using data at the three-digit level of aggregation, the study compares energy efficiency across sectors of the food industry for the period 1998-2005. Energy efficiency is analysed using the energy intensity indicator as well as a decomposition analysis. To determine the factors that have influenced energy efficiency performance. The results showed that both countries’ food industries improved energy efficiency. During the period of study, energy consumption in the German food industry increased by an average of 1.3% per year and the energy intensity decreased 7%, whereas the Colombian food industry decreased its energy consumption by an average of 1.9% per the year and the energy intensity decreased 11%. However, Colombian food industry needs 2.2 times more energy than German food industry to produce a unit of gross production. A decomposition analysis indicated that economic and technical factors have played an important role in the energy efficiency performance because increases in economic growth and technology improvements increase the industrial sector’s ability to improve energy efficiency. A second-stage empirical analysis reveals that capital, material, investments and value added variables had a positive influence on energy efficiency performance in both countries. Energy prices are shown to have a positive influence on energy efficiency in the German food industry, whereas the sizes of enterprises and concentration processes played an important role on energy efficiency performance in the Colombian food industry.
    Date: 2009–12–07
  10. By: Andersson, Ola (Dept. of Economics, Stockholm School of Economics); Argenton, Cédric (Tilburg University); Weibull, Jörgen (Dept. of Economics, Stockholm School of Economics)
    Abstract: We model a player's uncertainty about other player's strategy choices as probability distributions over their strategy sets. We call a strategy profile robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in each of which every player's strategy is optimal under his or her uncertainty about the pthers. We apply this definition to Bertrand games with a continuum of equilibrium prices and show that our robustness criterion selects a unique Nash equilibrium price. This selection agrees with available experimental findings.
    Keywords: Nash equilibrium; refinement; strategic uncertainty; price competition
    JEL: C72 D43 L13
    Date: 2010–03–31
  11. By: Tuomo Nikulainen
    Abstract: This paper discusses the outcomes of university-industry interaction from the perspective of an individual academic researcher. Two contributions are made to the extant literature. First, in the existing research, the focus has mostly been on outcomes such as university-based patenting, licensing revenues, invention disclosures to technology transfer offices, and academic entrepreneurship. This narrow focus has excluded intangible outcomes, such as the identification of new research ideas and commercial opportunities, from the discussion. Therefore, in this paper, both intangible and tangible outcomes are taken into account, and the empirical analysis identifies unique individual-level factors related to the different types of outcomes. Second, in the extant literature, it is argued that a boundary-spanning position within different types of networks is related to higher performance and the identification of unique ideas. This aspect is analysed by identifying the role of a boundary-spanning position in research collaboration networks with respect to the different outcomes. The empirical results show that the different outcomes are clearly related to different individual-level factors, and that a boundary-spanning position in research collaboration networks is related to both intangible and tangible outcomes.
    Keywords: technology transfer, university-industry interaction, individual researchers, research collaboration, research networks, boundary spanning, nanotechnology
    JEL: O31 O33
    Date: 2010–03–25
  12. By: Luciano Martins Costa Póvoa (FACE-UFG, Ciências Econômicas); Márcia Siqueira Rapini (UFRJ and CEDEPLAR/UFMG)
    Abstract: This paper presents an analysis of the technology transfer process from universities and public research institutes to firms in Brazil. In particular, this study is concerned with the role of patents in this process. Although there is a certain enthusiasm in promoting technology transfer offices to manage university patents, the importance of patents to the technology transfer process is not yet well understood in literature. We conducted a survey with leaders of research groups from universities and public research institutes that developed and transferred technology to firms. The results show that patents are one of the least used channels of technology transfer by universities and public research institutes. But the importance of the channels varies according to the type of technology transferred and to the firms' industry.
    Keywords: Technology transfer; university; public research institutions, patent.
    JEL: O31 O34
    Date: 2010–03
  13. By: Sequeira, SANDRA; Djankov, SIMEON
    Abstract: We generate an original dataset on bribe payments at two competing ports in Southern Africa that allows us to take an unusually close look at the relationship between bureaucratic organization, bribe-setting behavior and the costs corruption imposes on users of public services. We find that the way bureaucracies are organized can generate different opportunities for bureaucrats to engage in "collusive" or "coercive" types of corruption. We then observe how firms adjust their shipping and sourcing strategies in response to different types of corruption. "Collusive" corruption is cost-reducing for firms, increasing usage of the corrupt port, while "coercive" corruption is cost-increasing, reducing demand for port services. Our findings therefore suggest that firms respond to the opportunities and challenges created by different types of corruption, organizing production in a way that increases or decreases demand for the public service.
    Keywords: Corruption; Transport; Trade Costs; Firm Behavior
    JEL: D23 D21 D02 L91 D01
    Date: 2010
  14. By: Estrada, Fernando
    Abstract: In their recent work Thomas S. Schelling (2007, 2010), reiterating original arguments about game theory and its applications to social sciences. In particular, game theory helps to explore situations in which agents make decisions interdependent (strategic communication). Schelling's originality is to extend economic theory to social sciences. When a player can anticipate the options and influence the decisions of others. The strategy, indirect communication plays a crucial role. To illustrate, we investigate how to perform the payoff matrix in cases of bribery and threat
    Keywords: Social Science; Schelling; game theory; strategic communications; bribes; threats.
    JEL: B0 D81 A1 D82 C70 C7 B00 D84 D7 D8 D80 C72
    Date: 2010–03–30
  15. By: Miguel A. Espinosa; Alvaro J. Riascos Villegas
    Abstract: By means of a suitable Bayesian game we study spot electricity markets from a structural point of view. We address the problem of individual and aggregate eficciency and we show how to value water from market observables. We compare the former to engineering methods and apply our methodology to Colombian spot electricity market. Our results show that big gas and small hydro plants overbid, resources are undervalued by engineering costs and aggregate costs would have been considerably smaller if agents had played optimally. Revealed costs show a substantial gain in eficciency in the Vickrey auction compared to the actual uniform auction.
    Date: 2010–03–07
  16. By: Sahu, Santosh; Narayanan, K
    Abstract: Increasing energy consumption has been one of the major issues in the environmental and industrial economics in the context of global climate change. Recent literature has dealt with several methodological and application issues related to the technique of decomposing changes in industrial energy consumption. In this paper, we examine these issues in the context of another commonly adopted approach to decomposition of aggregate changes in energy intensity of Indian manufacturing industries. The industrial sector accounts for about 37 percent of the total final energy consumption in India. Of this the manufacturing sector consumes about 66 percent (2004-05). The manufacturing sector is one of the energy intensive industries among other industries in India. The scope of the study includes an empirical analysis of General Parametric Divisia Method. This paper follows the energy intensity approach rather the energy consumption approach. This method involves decomposition of the aggregate energy intensity index measured in terms of energy consumption per unit of output. The analysis also includes a comparison of the time series analysis versus the period-wise decomposition. The factors considered are changes in production structure and sectoral energy intensities. The results of the analysis confirm that the changes in sectoral energy intensity play a greater role in the variation in the total energy intensity of Indian Manufacturing compared to the changes in the production structure of the Industries.
    Keywords: Decomposition Methodology; Energy Intensity; Manufacturing Industries; India
    JEL: B23 Q4
    Date: 2010–03–19
  17. By: D.Forrest; M.Jara; D.Paolini; J.D.Tena
    Abstract: This paper studies the effect of the level of a firm?s resources on managerial inefficiency. We motivate our analysis with a theoretical model which predicts that better resourced and therefore more complex institutions tend to be more likely to generate x-inefficiency. The empirical analysis estimates stochastic production frontiers for Chilean and Italian football and finds that, consistent with the theoretical predictions, team performance in the Chilean League is mainly explained by institutional factors related to the level of resources available to a club whereas team performance in the Italian League appears in addition to be related to technical decisions taken by management.
    Keywords: managerial efficiency; stochastic production frontier, sport economics
    JEL: J44 L83 M50
    Date: 2010
  18. By: Clara Inés Pardo Martínez
    Abstract: This paper measures energy efficiency development in non-energy-intensive sectors (NEISs) in Germany and Colombia from a production-based theoretical framework using Data Envelopment Analysis (DEA). Using data from the German and Colombian Annual Surveys of Industries from 1998 to 2005, the analysis compares energy efficiency performances in German and Colombian NEISs at two levels of aggregation and then applies several alternative models. The results show considerable variation in energy efficiency performance in the NEISs of both countries. Comparing the results across models, it was found that in the German and Colombian NEISs, the measures of energy efficiency are similar, indicating that an appropriate combination of technical efficiency and cost minimisation are necessary to improve energy efficiency. However, energy efficiency based on cost minimisation is greater in both countries, demonstrating that energy prices in this sector are not the key variable for improving energy efficiency. This is due to the low share of energy costs, making it preferable to change other inputs rather than energy. A second-stage regression analysis reveals that in the German and Colombian NEISs, labour productivity and investments are fundamental to changes in energy efficiency. Finally, the energy efficiency measures of the DEA models show significant correlations with the traditional energy efficiency measure, indicating that energy efficiency as measured through DEA could be complementary to measures of energy intensity when analysing other key elements of energy efficiency performance in the industrial sector.
    Date: 2009–03–31

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