nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒09‒18
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Organisational Learning and Internationalization Knowledge: A Comparative Study of Family Firms and Non-Family Firms By Sami Basly
  2. The Joint Effect of Technological Distance and Market Distance on Strategic Alliances. By Muge Ozman
  3. Scope of Innovations, Knowledge Spillovers and Growth By Gray, Elie; Grimaud, André
  4. From Strategy to Practice in University Entrepreneurship Support: Strengthening Entrepreneurship and Local Economic Development in Eastern Germany: Youth, Entrepreneurship and Innovation By Andrea-Rosalinde Hofer; Jonathan Potter; Alain Fayolle; Magnus Gulbrandsen; Paul Hannon; Rebecca Harding; Åsa Lindholm Dahlstrand; Phillip H. Phan
  5. Innovation Strategy and Firm Performance What is the long-run impact of persistent R&D? By Börje, Johansson; Hans, Lööf
  6. Trade, Firm selection, and innovation: the competition channel By Giammario Impullitti; Omar Licandro
  7. Product Switching and Firm Performance in Japan By KAWAKAMI Atsushi; MIYAGAWA Tsutomu
  8. The Evolution of Singapore Business: A Case Study Approach By Anisha Sabhlok
  9. On the Globalness of Emerging Multinationals: A Study of Indian MNEs By Aggarwal, Raj; Pradhan, Jaya Prakash
  10. Indigenous Innovation In China: Implications For Sustainable Growth By Yanrui Wu
  11. Universities, Innovation and Entrepreneurship: Criteria and Examples of Good Practice By Andrea-Rosalinde Hofer; Jonathan Potter
  12. Elementos para uma Teoria da Firma Dinâmica. By Sérgio Fornazier Meirelles Filho; Paula Andréa Marques do Valle; Dnilson Carlos Dias
  13. Shooting for the Moon: Good Practices in Local Youth Entrepreneurship Support By Andrea-Rosalinde Hofer; Austin Delaney
  14. Locational Determinants of Acquisitions from China and India: The Role of Human Capital By Filip De Beule

  1. By: Sami Basly (CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - Université Paris Ouest Nanterre La Défense : EA)
    Abstract: This paper aims to contribute to the new stream of literature dealing with knowledge in family firms by analyzing the role of organizational knowledge in the internationalization of this type of firm. First, the study will try to emphasize the specificity of family firms as for double-loop learning, knowledge sharing, knowledge tacitness and emergence of internationalization strategy. Then, the influence of these variables on internationalization organizational knowledge and finally on firms' internationalization degree will be assessed.
    Keywords: Family business, internationalization, knowledge
    Date: 2010–07–06
  2. By: Muge Ozman
    Abstract: The literature on strategic alliances has deepened our understanding of the mechanisms behind their formation. This literature has given a central role to complementarities between firms, whereby complementarities are usually measured by technological overlap. An established result tells us that, there is an inverted-u relationship between technological distance and learning by firms. In this paper, we argue that technological distance is only one aspect of complementarities. Equally important is the market distance, which we define as the extent to which the value generated by the alliance depends on the synergies between firms’ products. These synergies may occur because of the complementarities between products, or the possibilities to apply similar knowledge fields in different product domains. Through an agent based simulation study, we show that when firms consider both distances jointly, an alliance strategy which favours being close in at least one dimension yields the highest payoff, rather than being at the intermediate distance in both dimensions.
    Date: 2010
  3. By: Gray, Elie; Grimaud, André
    Date: 2010–06
  4. By: Andrea-Rosalinde Hofer; Jonathan Potter; Alain Fayolle; Magnus Gulbrandsen; Paul Hannon; Rebecca Harding; Åsa Lindholm Dahlstrand; Phillip H. Phan
    Abstract: This report brings together findings from the case studies in Berlin and Rostock on how entrepreneurship support is organised, the activities in entrepreneurship education and start-up support, and the strategy behind. In addition, the report provides in its “fishing ideas from international good practice” section 13 short descriptions of how places and universities collaborate elsewhere in mobilising their talents for entrepreneurial action. These short case studies are intended to provide inspiration for both policy and local action on the key issues in making places conducive to entrepreneurship and innovation, in entrepreneurship education, and in making university entrepreneurship support systems work.
    Date: 2010–09
  5. By: Börje, Johansson (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Hans, Lööf (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: There are systematic long-run differences in the performance of firms explained by the R&D-strategy that each firm employs. Controlling for unobservable heterogeneity, past performance and other firm characteristics, this paper shows that labour productivity is, on average, 13 percent higher among firms with persistent R&D commitment and 9 percent higher among firms which make occasional R&D efforts when compared with non-R&D-firms. Furthermore, firms which employ a strategy with persistent R&D efforts are rewarded with a productivity growth rate that on average is about 2 percent higher than for other firms. The results are similar when firm performance is measured as total sales or exports per labor input.
    Keywords: R&D; Innovation-strategy; productivity; export; dynamic panel-data
    JEL: C23 O31 O32
    Date: 2010–09–07
  6. By: Giammario Impullitti; Omar Licandro
    Abstract: The availability of rich firm-level data sets has recently led researchers to uncover new evidence on the effects of trade liberalization. First, trade openness forces the least productive firms to exit the market. Secondly, it induces surviving firms to increase their innovation efforts and thirdly, it increases the degree of product market competition. In this paper we propose a model aimed at providing a coherent interpretation of these findings. We introducing firm heterogeneity into an innovation-driven growth model, where incumbent firms operating in oligopolistic industries perform cost-reducing innovations. In this framework, trade liberalization leads to higher product market competition, lower markups and higher quantity produced. These changes in markups and quantities, in turn, promote innovation and productivity growth through a direct competition effect, based on the increase in the size of the market, and a selection effect, produced by the reallocation of resources towards more productive firms. Calibrated to match US aggregate and firm-level statistics, the model predicts that a 10 percent reduction in variable trade costs reduces markups by 1:15 percent, firm surviving probabilities by 1 percent, and induces an increase in productivity growth of about 13 percent. More than 90 percent of the trade-induced growth increase can be attributed to the selection effect.
    Keywords: International Trade, Trade Liberalization, Heterogeneous Firms, Endogenous Market Structure, Productivity Growth, Endogenous Growth.
    JEL: F12 F13 O31 O41
    Date: 2010–09–01
  7. By: KAWAKAMI Atsushi; MIYAGAWA Tsutomu
    Abstract: Following Bernard, Redding and Schott (2010), we have constructed product and firm level data on Japanese manufacturing firms using the Census of Manufactures. Employing this data, we have found that multiple-product firms show better performance than single-product firms and product switching behavior in incumbent firms leads to greater output growth in the Japanese manufacturing sector, more so than in entry and exit. Empirical studies at industry level show that an unregulated, competitive environment stimulates product switching. At firm level, labor productivity growth and an unregulated, competitive environment encourage product switching behavior. Such product switching behavior improves firm performance in the areas of output, employment and labor productivity, etc.
    Date: 2010–09
  8. By: Anisha Sabhlok
    Abstract: This volume contains summaries of 12 case studies for three categories of business organisations defined by ownership, i.e. foreign, state and (local) private. The case studies explore the history and pattern of development of 12 business groups/companies in Singapore, highlighting specified aspects including: turning points in terms of business growth, diversification and expansion in domestic, regional and global markets, the strategies that led to their achievements, the role of the government and the measures taken at micro-levels to negotiate the transition to a knowledge-based economy (KBE), and world-class excellence. [Working Paper No. 10. (Volume 2)]
    Keywords: business, organisations, case studies, Singapore, domestic, regional, global markets, government, micro-levels, world-class, excellence
    Date: 2010
  9. By: Aggarwal, Raj; Pradhan, Jaya Prakash
    Abstract: Contrary to contentions in prior literature that emerging multinationals are only regional players, the evidence on the globalness of Indian firms presented in this study suggests that a number of emerging multinationals are global firms. Their strategies are targeted at both the developed and developing markets with the intensity of their overseas operations comparable or far greater than those of the world’s leading multinationals. Many of these firms have greater sales or capital assets outside their home base. Indeed, many of them qualify as global firms as they have a significant presence (over 10 percent of sales) in each of the four regions (triad and the non-triad developing regions) and no one region accounts for more than 50 per cent of their global sales. The study of the transformation of emerging multinationals into non-home region players provides considerable potential for better understanding management theories and practices.
    Keywords: Emerging Multinationals; Globalness; Indian Firms
    JEL: F23
    Date: 2010–09–09
  10. By: Yanrui Wu (UWA Business School, The University of Western Australia)
    Abstract: This paper aims to examine indigenous innovation and draw implications for sustainable economic growth in China. It investigates China’s capacity and achievements in indigenous innovation at both the macro and micro levels. China’s indigenous innovation is also compared to that in other major economies in the world. It is found that China’s innovation development is well ahead of other economies at the similar stage of development but there is a gap between China and the world’s leading innovative economies. Both aggregate and disaggregate evidence shows that China is catching up rapidly with the world’s innovation leaders. If current growth momentum is maintained, China is well positioned to become one of the most innovative economies in the world in the coming decade. There are however some serious issues to be resolved before China’s innovation potential could be realized.
    Keywords: Indigenous innovation, R&D, Chinese economy
    Date: 2010
  11. By: Andrea-Rosalinde Hofer; Jonathan Potter
    Abstract: Eastern Germany is well on its way to becoming a modern economy and developing its high growth potential. Start-ups and young businesses have become key contributors to the region’s growth due to their dynamism and their capacity to renew the local knowledge base. In the context of a global economic crisis, we need to reflect upon the role of start-ups and their capacity to contribute to local economic development. Over the last years, the entrepreneurship activity gap between western and eastern Germany has been significantly reduced, leading to almost equal levels in both parts of the country. The total business start-up rate in Germany, amongst the age group 18 to 64 years, was 1.7 percent in 2007. The entrepreneurial potential however, especially amongst the highly qualified, is far from being exhausted.
    Date: 2010–09
  12. By: Sérgio Fornazier Meirelles Filho (FACE-UFG, Ciências Econômicas); Paula Andréa Marques do Valle (FACE-UFG, Ciências Econômicas); Dnilson Carlos Dias (FACE-UFG, Ciências Econômicas)
    Abstract: This paper aims to suggest elements for a dynamic theory of the firm as a more realistic name, as opposed to the proposal by neoclassical theory. It counts itself as the genesis of temporality recognition of economic activity and a redefinition of the firm. The preliminary concepts about time, uncertainty and bounded rationality of economic agents are crucial. Otherwise, the concept of firm in different approaches, emphasizes the main point of reference work in evolutionary ideas as a more appropriate view of the firm in order to grasp its nature is essentially dynamic. Thus, the ability to innovate is considered here as the key driver of this dynamic, in a theoretical framework to abandon the benchmark equilibrium. To have such innovative capacity, the firm is conceived primarily as a repository of knowledge, as a set of resources, tangible and intangible assets that define a range of capabilities and present, mechanisms by which it acquires new powers and abilities.
    Keywords: Firm, Evolutionary Theory, Neoclassical Theory.
    Date: 2010–08
  13. By: Andrea-Rosalinde Hofer; Austin Delaney
    Abstract: Entrepreneurship is considered a key driver of economic growth and job creation all over OECD countries. Within this framework, promoting youth entrepreneurship is an area of growing policy interest for OECD national and local governments. Public policy can play an important role in stimulating motivations and entrepreneurial attitudes in young people and to provide the right set of skills to start-up and run a business. For framework conditions conducive to fostering the development of talents and youth entrepreneurship, taking appropriate action at the local level is of crucial importance…
    Date: 2010–09
  14. By: Filip De Beule
    Abstract: The article will analyze the locational determinants of Chinese and Indian mergers and acquisitions (M and As). Existing literature often indicate that Chinese and Indian multinationals are motivated by access to local markets, natural resources and intangible assets (Deng, 2004; Kaartemo, 2007; Pradhan, 2008). These determinants will be used to analyze the relevant determinants of Chinese and Indian acquisitions. On the basis of several macro-economic determinants the article will analyze the relevant host country characteristics that drive the locational choices of Chinese and Indian M and A, as well as the similarities and differences between these two so-called BRIC countries.
    Keywords: chinese, indian, acquisitions, multinationals, local markets, natural resources, assests, mergers, india, China, Chinese, BRIC countries, macro economic,
    Date: 2010

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