nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒11‒13
seventeen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  2. R&D-Persistency, Metropolitan Externalities and Productivity By Lööf, Hans; Johansson, Börje
  3. The Impact of innovation activities on firm performance using a multi-stage model: evidence from the Community Innovation Survey 4 By Iraj Hashi; Nebojsa Stojcic
  4. Network connections and innovation capacity in traditional agrifood chains By Kuhne, Bianka; Gellynck, Xavier; Weaver, R.D.
  5. Short supply chain: analysis of the competitiveness of organic horticultural farmers at Italian regional level By Bertazzoli, Aldo; Ruggeri, Arianna; Samoggia, Antonella
  6. The impact of external environment on organizational development strategy By Voiculet, Alina; Belu, Nicoleta; Parpandel, Denisa Elena; Rizea, Ionela Carmen
  7. Network performance - What influences it? By Lefebvre, Virginie M.; Molnar, Adrienn; Gellynck, Xavier
  8. Determinants of PRO-industry interactions in pharmaceutical R&D: the case of Mexico By Santiago-Rodriguez, Fernando; Dutrenit, Gabriela
  9. Competing internationally: On the importance of R&D for export activity By Czarnitzki, Dirk; Wastyn, Annelies
  10. Knowledge spillovers and the timing of R&D policy By Geir H. Bjertnæs, Tom-Reiel Heggedal and Karl Jacobsen
  11. The Internationalization of Small and Medium Enterprises in Regional and Global Value Chains By Hank Lim; Fukunari Kimura
  12. A Task-Based Approach to Organization: Knowledge, Communication and Structure By Luis Garicano; Yanhui Wu
  13. Innovation strategy, firm survival and relocation: The case of Hong Kong-owned manufacturing in Guangdong province, China By Sharif, Naubahar; Huang, Can
  14. Spreading the Word: Geography, Policy and University Knowledge Diffusion By Sharon Belenzon; Mark Schankerman
  15. Growth Through Heterogeneous Innovations By Ufuk Akcigit; William R. Kerr
  16. An analysis of Marketing Channels of Local Food in Scotland By Revoredo-Giha, C.; Watts, D.; Leat, P.
  17. Identification of spatial agglomerations in the German food processing industry By Hoffmann, J.

  1. By: Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble Ecole de Management); Khalid Errabi (MTS - Management Technologique et Strategique - Grenoble Ecole de Management); Caroline Gauthier (MTS - Management Technologique et Strategique - Grenoble Ecole de Management)
    Abstract: Nanotechnologies are reshaping the boundaries between industries, combining two aspects of innovation – both enhancing competences based on cumulative knowledge and experience and destroying competences by forcing the renewal of the firm's knowledge base. To analyze how worldwide R&D leaders adapt to this new technology, we conduct an econometric analysis of about 3,000 subsidiaries of the largest R&D spenders. We find that large groups are creating medium size subsidiary companies to explore nanotechnologies. Knowledge circulates mostly amongst subsidiaries within the same group and scientific clusters do not affect their involvement in nanotechnologies. Nanotechnologies remain marginal within these subsidiaries' knowledge bases and are distributed within corporate groups, stimulating recombination between nanotechnology and other technologies
    Keywords: incumbent; inflexibility; hybridization; nanotechnology; pre-adaptation
    Date: 2010
  2. By: Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: Firms display persistent differences as regards both internal and external characteristics, and these differences correspond to asymmetries in the performance of firms with regard to productivity level and growth as well as innovativeness. This paper focuses on one internal characteristic and one external factor by distinguishing between firms with persistent R&D efforts and other firms and firms located in a metropolitan region versus firms with other locations. Applying Swedish data on individual firms and their location, the paper shows that firms that follow a strategy with persistent R&D efforts have a distinctly higher level of productivity across all types of location. In addition, the productivity level of firms with persistent R&D is augmented in a significant way when such firms have a metropolitan location and, in particular, a location in a metropolitan city
    Keywords: R&D; innovation-strategy; productivity; metropolitan; externalities
    JEL: C23 O31 O32
    Date: 2010–11–04
  3. By: Iraj Hashi; Nebojsa Stojcic
    Abstract: The impact of innovation on firm performance has been a matter of significant interest to economists and policy makers for decades. Although innovation is generally regarded as a means of improving the competitiveness of firms and their performance on domestic and foreign markets, this relationship has not been supported unambiguously by empirical work. Innovative activities of firms influence their performance not necessarily directly but through the production of useful innovations and increased productivity. Therefore, in recent years, the relationship between innovation and firm performance has been modelled by a multistage approach. However, the findings from existing studies differ in many respects which suggests that there is the need for further research. In this paper we employ firm level data from the fourth Community Innovation Survey (CIS4), covering some 90,000 firms in 16 West and East European countries in order to assess the drivers of the innovation process in two different institutional settings, a number of mature market economies of Western Europe and a number of advanced transition economies from Central and Eastern Europe. A four-equation model, originating in the work of Crepon et al., (1998), has been used to link the innovation decision of firms to their performance through the impact of innovation input on innovation output and the innovation output on productivity and better performance. Our findings confirm the positive relationship between innovation activities and productivity at the firm level and provide further evidence on the relationship between size and innovation activities.
    Keywords: innovation, firm performance, multi-stage model, Community Innovation Survey 4
    JEL: O31 L25
    Date: 2010
  4. By: Kuhne, Bianka; Gellynck, Xavier; Weaver, R.D.
    Abstract: In the New Economy, the network is considered as more important than the firm itself. In this paper the focus is on chain networks which include vertical networks among chain members, horizontal networks with peers, and networking with third parties. Networks have an important role in the diffusion and adoption of innovations, thus they are the locus of innovation. While previous research focused on the firm, we contribute to the understanding of innovations in chain networks, i.e. we investigate the innovation capacity in vertical networks and how networking with peers and third parties is influencing the innovation capacity of the vertical network. We propose that there is a positive relationship between the network connections the direct chain partners have with peers and third parties and the innovation capacity of the vertical network. Data were collected from 90 direct agrifood chains in the traditional food sector. Cluster analysis suggested three clusters of chains corresponding to three distinct levels of innovation capacity: low, medium and high. Via descriptive analysis and binary logistic regression the influence of networking with peers and third parties on the innovation capacity of the vertical network was investigated. Our results confirm our proposition. However, we found that the chain partners are either horizontally or vertically networking for innovation. Nevertheless, more networking within the chain and with peers and third parties is linked to higher levels of innovation capacity. Consequently, our study adds to the research in the field of the New Economy by deepening the understanding of how innovation capacity is developed in vertical networks. We can confirm that the network is very important for the development and implementation of innovations and that the innovation capacity of one firm is linked to the innovation capacity of its chain partners. For future research we propose to investigate the link between networking for innovation and types of innovation which can be achieved. Further, future research should explore further inter-organizational links in the chain network and explore wider networks than the direct chain.
    Keywords: SMEs, chain networks, traditional food products, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,
    Date: 2010–10–27
  5. By: Bertazzoli, Aldo; Ruggeri, Arianna; Samoggia, Antonella
    Abstract: The paper focuses on the competitiveness of organic horticultural farms implementing short food supply chain (SFSC), by analysing the organisational structures adopted by farmers and their economic performance. The collection of data based on face to face interviews with farmers and the review of the rural development plans of three central Italy regions. Results show that farms prefer a combination of organizational structures that involve both business to consumer and business to business strategies. A high number of farms realise direct selling to consumers implemented through in farm selling and market distribution channels. Nonetheless, farms performing the highest turnover take advantage from the support of informal or formal network of producers. At policy level intervention towards strengthening SFSCâs competitiveness is still lacking.
    Keywords: short chain, direct selling, horticultural, organisation, economic performance, Community/Rural/Urban Development, Q13, R11,
    Date: 2010–08
  6. By: Voiculet, Alina; Belu, Nicoleta; Parpandel, Denisa Elena; Rizea, Ionela Carmen
    Abstract: Abstract External environment of an organization includes a variety of factors, whose existence, influence its behavior and performance. The action of these factors may be direct (for example, the actions of competitors) or indirect (for example, changes in business climate), and external environmental analysis is done in two different contexts: meso and macro environment. Are concerned, to be analyzed, those major variables that are affecting the organization, providing, strategic diagnosis, information on strategic situation complementary to those offered by internal analysis. Tests results at this level senses opportunities and threats existing and potential success factors of field work. Analyzing thus two types of environment, (meso and macro environment) can be identified strategic directions for action or policy options.
    Keywords: Keywords: strategy; external environment; factors
    JEL: O1 P23 L1
    Date: 2010–10–29
  7. By: Lefebvre, Virginie M.; Molnar, Adrienn; Gellynck, Xavier
    Abstract: The aim of this paper is to examine the literature addressing network performance and the factors influencing it. Design â 29 papers published in 18 different journals were systematically reviewed through a multidimensional classification framework based on the strategy-structure-performance paradigm of strategic management. Findings â Based on the outputs of the literature review, a conceptual framework describing network performance is proposed. Following this framework, it is suggested that network performance is the result of the combination of network strategy, network structure and external environmental factors, and not solely the result of network structure which is characterized by five structural elements i.e. network configuration, network membership, network tie, network management and network governance. Moreover, the framework suggests that, in equal context i.e. same network strategy and same external environment, different combinations of these five structural elements lead to different network performance. Implications â Based on these findings, adequate network performance measurement system should include determinants at the level of the network strategy and network structure but also at the level of the external environment. Scope for future research â This study should be extended in order to further investigate the relationships between network strategy and network structure on the one hand and environmental factors on the other hand, but also to further investigate the network strategy, network structure and environmental factors themselves.
    Keywords: Performance, network, strategy-structure-performance paradigm, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,
    Date: 2010–10–27
  8. By: Santiago-Rodriguez, Fernando (International Development Research Centre, UNU-MERIT); Dutrenit, Gabriela (UAM-Xochimilco)
    Abstract: Interactive learning, particularly between firms and public research organizations (PRO), nurtures the dynamics of systems of innovation. Limited interaction contributes to explain poor performance in R&D and ultimately, in innovation by developing countries. But why this is so? Based on evidence from the pharmaceutical industry in Mexico, this paper identifies some determinants of PRO-industry interaction for pharmaceutical R&D. Particular attention is granted to factors hindering such interactions; arguably the barriers differ throughout the diverse stages of the R&D process. The paper decomposes the Research and Development processes, thus it is possible to identify determinants to interactions in each of those instances. Drug development is further split in two stages: clinical research and drug manufacturing. The analysis indicates that macroeconomic and business environments, firms' strategies, ethical considerations, incentives and perceptions of PRO-industry interaction among the agents in the system, support/hinder interactivity in pharmaceutical R&D.
    Keywords: Public research organizations, pharmaceutical industry, university-industry collaboration, pharmaceuticals, R&D, Mexico
    JEL: O31 O54 L65
    Date: 2010
  9. By: Czarnitzki, Dirk; Wastyn, Annelies
    Abstract: Export is an important factor to improve growth and welfare especially for industrialized small, open economies such as Belgium. Policy may be interested in key variables that can influence export. This paper finds evidence for the importance of R&D for export activities using Belgian firm-level data. To control for reverse causality, R&D-subsidy variables are used to instrument R&D. The results show that R&D policies may indirectly help to increase the export performance of the economy. Due to the exceptionally high openness of Belgium, two subsamples of firms are considered, domestic firms and multinational firms. We observe positive effects of R&D on export for both domestic and MNEs. Once we instrument R&D because of its potential endogeneity, however, it turns out that the effect of R&D on exports is larger for domestic firms than for multinational companies. --
    Keywords: Export,R&D,Multinational enterprises,Innovation Policy
    JEL: F23 O33 O38
    Date: 2010
  10. By: Geir H. Bjertnæs, Tom-Reiel Heggedal and Karl Jacobsen (Statistics Norway)
    Abstract: We analyze how knowledge spillovers influence the optimal timing of R&D policy. Using numerical simulations we find that optimal subsidies to R&D may be rising over time even when the returns to knowledge is decreasing. The optimal time profile of the subsidies is determined by the elasticity of scale in the R&D production function, which again depends on both the returns to knowledge and the returns to labor.
    Keywords: Innovation policy; R&D; Technological spillovers
    JEL: O32 O38
    Date: 2010–11
  11. By: Hank Lim; Fukunari Kimura
    Abstract: Production networks and the regional division of labor have been established in East Asia resulting in massive vertical intra-industry trade in parts and components within the region. This phenomenon is known as cross-border production sharing or the fragmentation of production processes into many stages across different countries. New development strategies claim that participation in international production and distribution networks is the key to accelerating economic development in the era of globalization. This process suggests that vertical input-output linkages between local firms and multinational corporations are the most powerful channels to accelerate technology transfers and spillovers. [ADBI Working Paper 231]
    Keywords: Production, regional, East Asia, development, economic, vertical, spillovers
    Date: 2010
  12. By: Luis Garicano; Yanhui Wu
    Abstract: We bridge a gap between organizational economics and strategy research by developing a task-basedapproach to analyze organizational knowledge, process and structure, and deriving testableimplications for the relation between production and organizational structure. We argue thatorganization emerges to integrate disperse knowledge and to coordinate talent in production and isdesigned to complement the limitations of human ability. The complexity of the tasks undertakendetermines the optimal level of knowledge acquisition and talent. The relations between tasks,namely, complementarities or substitutabilities and synergies, determine the allocation of knowledgeamong members of the organization. Communication shapes the relation between individual talent,and governs the organizational process and structure that integrates disperse knowledge to performtasks more efficiently. Organization structure can also be deliberately designed ex ante to correct biasof individual judgement, the extent to which is dependent on the attributes of tasks. Organizationprocess and the routinized organizational structure are the core of organizational capital, whichgenerates rent and sustains organizational growth. This task-based approach enriches the existingbody of organization studies, in particular the knowledge-based theory of the firm and the dynamiccapabilities theory.
    Keywords: task-based approach, complementarities, tacit knowledge, codifiable knowledge, code,vertical communication, horizontal communication, organizational architecture, decision bias
    JEL: D2 D8 L2 M5
    Date: 2010–10
  13. By: Sharif, Naubahar (Division of Social Science, The Hong Kong University of Science and Technology); Huang, Can (UNU-MERIT, Maastricht University)
    Abstract: Based on a survey adapted from the Fourth European Community Innovation Survey (CIS-4), this study finds that, in the changing manufacturing environment of Guangdong province in China, Hong Kong-owned businesses that generate a higher share in new product sales as a percentage of total sales or engage in R&D or collaborative innovation activities in China are more likely to survive and remain in Guangdong. The study fills a gap in the literature by investigating the effects of innovation on the survival and relocation of Hong Kong-owned manufacturing firms in Guangdong. The results support policy initiatives that strengthen collaborative ties among key innovation system actors.
    Keywords: Innovation, Survival, Relocation, Community Innovation Survey, Asia, China
    JEL: D21 L25 L52 O31 R11
    Date: 2010
  14. By: Sharon Belenzon; Mark Schankerman
    Abstract: Using new data on citations to university patents and scientific publications, and measures ofdistance based on Google maps, we study how geography affects university knowledgediffusion. We show that knowledge flows from patents are localized in two respects: theydecline sharply with distance up to about 100 miles, and they are strongly constrained bystate borders, controlling for distance. While distance also constrains knowledge spilloversfrom publications, the state border does not. We investigate how the strength of the stateborder effect varies with university and state characteristics. It is larger for patents frompublic, as compared to private, universities and this is partly explained by the localdevelopment policies of universities. The border effect is larger in states with stronger noncompetelaws that affect intra-state labor mobility, and those with greater reliance on in-stateeducated scientists and engineers. We confirm the impact of non-compete statutes bystudying a policy reform in Michigan that introduced such restrictions.
    Keywords: knowledge spillovers, diffusion, geography, university technology transfer,patents, scientific publications
    JEL: K41 L24 O31 O34
    Date: 2010–09
  15. By: Ufuk Akcigit; William R. Kerr
    Abstract: We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects.
    JEL: L16 O31 O33 O41
    Date: 2010–11
  16. By: Revoredo-Giha, C.; Watts, D.; Leat, P.
    Abstract: Local food and its possibilities for addressing sustainable regional growth, food availability, accessibility and affordability has received considerable attention in the discussion on and development of the National Food Policy in Scotland. In terms of methodology, the paper continues the analysis of the local food database for Scotland constructed in Watts et al (2010) by exploring the marketing outlets used by the local food enterprises. This subject is important because it may provide information about the degree of entrepreneurship of the involved firms.
    Keywords: Local food, Scotland, marketing outlets., Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,
    Date: 2010–10–27
  17. By: Hoffmann, J.
    Abstract: This paper deals with the identification of spatial agglomerations in the German food processing industry, using the Cluster Index developed by Sternberg and Litzenberger. Previous studies have analyzed this industry as one of several others utilizing highly aggregated data. The results of these studies mostly indicate a lack of agglomerations for the German food industry. Given the very heterogeneous character of this branch, an analysis at such an aggregated level might provide flawed results. Therefore, the following study analyzes German industry sectors for the first time at a highly disaggregated spatial (429 districts) and sectoral (23 subsectors of food processing industry) level. Results show that spatial agglomerations exist for several subsectors. This holds especially for processing and preserving of meat, fish, fruit, wine and milk processing as well as for breweries and the processing of mineral water.
    Keywords: Regional Cluster, Spatial Economics, German Food Processing Industry, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,
    Date: 2010–10–27

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