nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒12‒04
nineteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Internacionalización, Tramas Productivas y Sistema Nacional de Innovación By Morero, Hernán
  2. The Importance of Broadband Provision to Knowledge Intensive Firm Location By E. A. Mack; L. Anselin
  3. The Knowledge Base Evolution in Biotechnology: A Social Network Analysis. By Jackie Krafft; Francesco Quatraro; Pier-Paolo Saviotti
  4. Untersuchung von Innovationsdeterminanten in der deutschen Laser-Industrie By Muhamed Kudic; P. Bönisch; Iciar Dominguez Lacasa
  5. Alliance Coordination, Dysfunctions, and the Protection of Idiosyncratic Knowledge in Strategic Learning Alliances By Müller, Dirk
  6. Organizational capital and firm performance. Empirical evidence for European firms By Claudia Tronconi; Giuseppe Vittucci Marzetti
  7. Virtual R&D teams and SMEs growth: A comparative study between Iranian and Malaysian SMEs By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
  8. Factors affecting the decision making of out-sourcing in textile in Pakistan By Subhani, Dr.Muhammad Imtiaz; Osman, Ms.Amber
  9. Virtual Teams: A New Opportunity to Develop a Business By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
  10. Firms’ R&D cooperation strategies: the partner choice By Chiara Franco; Manuela Gussoni
  11. Prevalence and Determinants of Social Entrepreneurship at the Macro-level By Chantal Hartog; Brigitte Hoogendoorn
  12. The International Circulation of Elites: Knowledge, Entrepreneurialand Political By Andrés Solimano; Diego Avanzini
  13. University Development Through Regional Strategic Alliances By Popy Rufaidah; Dwi Kartini; Faisal Afiff
  14. Too Big to Innovate? Scale (dis)economies and the Competition-Innovation Relationship in U.S. Banking By Bos Jaap; Lamoen Ryan van; Economidou Claire
  15. Competition within firms By Lisa Bruttel; Simeon Schudy
  16. Does Schumpeterian Creative Destruction Lead to Higher Productivity? The effects of firms’ entry By Carlos Carreira; Paulino Teixeira
  17. SMEs; Virtual research and development (R&D) teams and new product development: A literature review By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
  18. Estratégia de localização bancária: teoria e evidência empírica aplicada ao estado de Minas Gerais By Guilherme Jonas Costa da Silva; Frederico G. Jayme Jr
  19. Strengthening Entrepreneurial Global Competitiveness by Utilizing Local Culture By Erman A Sumirat; Sunu Widianto

  1. By: Morero, Hernán
    Abstract: This paper aims to study the capacity of the National Systems of Innovation to affect the innovative performance of firms in internationalized production activities of a developing economy. The research adopted a production networks perspective on Innovation Systems and the empirical work involved a survey to firms from the automotive productive network in Argentina. The importance of domestic and external sources of knowledge to the innovative performance of these firms was evaluated through the use of multivariate analysis and data clustering techniques. The main findings of the study are that: i) the innovative performance of argentinian auto parts firms is positively related to certain complementation between internal and external sources of knowledge; and that ii) the importance of the national innovation system is essential for them, even if those firms belongs to internationalized production networks that operates in a developing country.
    Keywords: Internationalization; National System of Innovation; Production Networks; Automotive Production Network; Argentina
    JEL: B52 L62 O3
    Date: 2010–03–26
  2. By: E. A. Mack; L. Anselin
    Abstract: Despite the volume of literature afforded knowledge work and innovations in information and communications technologies (ICTs), few studies have examined the importance of ICTs to firms in knowledge industries. This study will develop spatial econometric models to examine the relative importance of the level of broadband provision to knowledge intensive firms in select U.S.  metropolitan statistical areas (MSAs). Results demonstrate the need for both a spatial econometric and a metropolitan area specific evaluation of this relationship. They also suggest potential spillover effects to knowledge intensive firm location, which may explain why some regional economies are relatively more successful at stimulating firm growth in this increasingly important sector of the U.S economy.
    Date: 2010
  3. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis, Department of Economics, University of Turin - University of Turin); Pier-Paolo Saviotti (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis, GAEL - Grenoble Applied Economic laboratory - Aucune)
    Abstract: This paper applies the methodological tools typical of social network analysis (SNA) within an evolutionary framework, to investigate the knowledge base dynamics of the biotechnology sector. Knowledge is here considered a collective good represented as a co-relational and a retrieval-interpretative structure. The internal structure of knowledge is described as a network the nodes of which are small units within traces of knowledge, such as patent documents, connected by links determined by their joint utilisation. We used measures referring to the network, like density, and to its nodes, like degree, closeness and betweenness centrality, to provide a synthetic description of the structure of the knowledge base and of its evolution over time. Eventually, we compared such measures with more established properties of the knowledge base calculated on the basis of co-occurrences of technological classes within patent documents. Empirical results show the existence of interesting and meaningful relationships across the different measures, providing support for the use of SNA to study the evolution of the knowledge bases of industrial sectors and their lifecycles.
    Keywords: Knowledge Base, Social Network Analysis, Variety, Coherence, Industry lifecycles; exploration/exploitation
    Date: 2010–11–23
  4. By: Muhamed Kudic; P. Bönisch; Iciar Dominguez Lacasa
    Abstract: Empirical and theoretical contributions provide strong evidence that firm-level performance outcomes in terms of innovativeness can either be determined by the firm’s position in the social space (network effects) or by the firm’s position in the geographical space (co-location effects). Even though we can observe quite recently first attempts in bringing together these traditionally distinct research streams (Whittington et al. 2009), research on interdependent network and geographical co-location effects is still rare. Consequently, we seek to answer the following research question: considering that the effects of social and geographic proximity on firm’s innovativeness can be interdependent, what are the distinct and combined effects of firm’s network and geographic position on firm-level innovation output? We analyze the innovative performance of German laser source manufacturers between 1995 and 2007. We use an official database on publicly funded R&D collaboration projects in order to construct yearly networks and analyze firm’s network positions. Based on information on population entries and exits we calculate various types of geographical proximity measures between private sector and public research organizations (PRO). We use patent grants as dependent variable in order to measure firm-level innovation output. Empirical results provide evidence for distinct effect of network degree centrality. Distinct effect of firm’s geographical co-location to laser-related public research organization promotes patenting activity. Results on combined network and co-location effects confirms partially the existence of in-terdependent proximity effects, even though a closer look at these effects reveals some ambiguous but quite interesting findings.
    Keywords: geographical co-location, network positioning, innovation output
    JEL: O31 O32 L25
    Date: 2010–10
  5. By: Müller, Dirk
    Abstract: In high technology industries firms use strategic learning alliances to create value that can’t be created alone. While they open their interorganizational membrane to gain new skills and competences, generate new products and services, accelerate development speed, and enter into new markets their idiosyncratic knowledge base may be impaired when knowledge related dysfunctions like the unintended knowledge transfer, asymmetric learning speed or premature closing occur. Within a value approach we examine the interplay of alliance coordination activities that enhance value creation, emerging knowledge related dysfunctions, and formal and organizational protections measures which shall safeguard firms intellectual crown jewels. We tested our hypotheses with a sample of 111 strategic alliances of young technology based Enterprises (YTBEs) with competing partners in high and key technology industries. Our findings suggest that a focal firm’s alliance management is well advised to intensely coordinate the alliance and to be aware of dysfunctional tendencies that erode alliance value. Since organizational protection measures could exaggerate dysfunctional effects they should be deployed very deliberately on a modest level. Formal protections measures, in contrast, seem to aggravate coordination activities’ value creation effect by setting behavioral guidelines. Moreover, an unsuccessful negotiation process of formal protection agreements may allow a deselection of partners that would not obey others intellectual property interests. Finally, we highlight theoretical and managerial implications that arise from these findings. --
    Keywords: Strategic Learning Alliance,Protection
    Date: 2010–10–14
  6. By: Claudia Tronconi; Giuseppe Vittucci Marzetti
    Abstract: The paper assesses the impact of Organizational Capital (OC) on firm perfor- mance for a sample of European firms. OC is proxied by capitalizing an income statement item (SGA expenses). A rationale for this methodology is provided. Results are robust and show the strong effect of OC on firm performance.
    Keywords: Intangibles, Knowledge-based resources, Organizational capital,R&D capital stock, Translog production function
    JEL: C21 D24 D29 L20
    Date: 2010
  7. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
    Abstract: This paper explores potential advantages of using virtual teams for small and medium-sized enterprises (SMEs) with a comprehensive review on various aspects of virtual teams. Based on the standing of the pertinent literature, attempt has been made to study the aspects by online survey method in Iran and Malaysia. In both countries, SMEs play an important role in their economies, employments, and capacity building. Virtual R&D team can be one of the means to increase SMEs efficiency and competitiveness in their local as well as global markets. In this context, surveys have been conducted to evaluate the effects of virtuality to the growth of SMEs. The study addresses some differences between two countries in engaging virtual research and development (R&D) teams in their SMEs. It is observed that there is a significant difference between the SMEs turnover that employed virtual team and that did not employ the virtual team. The way for further studies and recommend improvements are proposed.
    Keywords: Virtual R&D team, small and medium enterprises, survey, developing countries.
    JEL: O47 F23 O32 L2 M11 M1 O43 M54 R11 O3
    Date: 2010–07–01
  8. By: Subhani, Dr.Muhammad Imtiaz; Osman, Ms.Amber
    Abstract: This research provided the study of importance of factors affecting the decision making of out-sourcing & supplier performance in Textiles domain. The textile market of USA is the scope of this research. The basis of this study allowed comprehending the importance / weight of factors of out-sourcing (including Delivery, Flexibility, Cost, Quality & Reliability) varied according to the buyers needs. Buyer’s needs some factors were high weight / importance for one buyer and at the same time the same factors were low weight / for another buyer. It delineated the root to supply chain managers and experts for textiles industry for taking the right strategic decision for out-sourcing in today’s competitive market.
    Keywords: Decision Making of Out-Sourcing; Out-Sourcing; Supply Chain Management.
    JEL: F16 F15 F18 F13 F11 F17 F14 F1
    Date: 2010–11–01
  9. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
    Abstract: Virtual teams give many advantages to organizations, including increased knowledge sharing and improve organizational performance. Virtual teams have altered the expectations and boundaries of knowledge worker’s interactions and make a new opportunity to develop the business. In this paper, we present summary results of an online survey. The online questionnaire was emailed by using a simple random sampling method to 356 Malaysian manufacturing small and medium –sized Enterprises (SMEs). The findings of this study show that SMEs in Malaysia are gaining to use virtual teams, and it can be concluded that virtual teams provide a new platform for developing the business in SMEs. Based on the study, we suggest avenues for future research that are important to advancing our understanding of virtual team effects on business growth.
    Keywords: Collaboration; virtual teams; SMEs; Entrepreneurship; Business development; Survey
    JEL: M11 M00 N60 Q55 L23 D85 O14
    Date: 2010
  10. By: Chiara Franco; Manuela Gussoni
    Abstract: The aim of this paper is to provide empirical evidence on the issue of ?rms’ R&D cooperation strategies, examining the topic from the point of view of the partner choice. Literature has deeply analyzed the motivations inducing ?rms to form research joint ventures, instead, the investigation of partner selection strategies is disregarded even though it is one of the most critical decisions for a ?rm when forming an alliance. For this reason, by making use of data coming from the fourth Italian innovation survey (2002- 2004), we contribute to the the literature by estimating, through the use of a multinomial logistic model, the determinants that a?ect the ?rms’ choice among di?erent types of potential R&D cooperation partners. We di?erentiate among three cooperation strategies that are: (i) cooperation with only market partners; (ii) with only science partners; and (iii) with both of them. Our ?ndings provide support to the hypothesis that di?erent variables determine di?erent partner choices according to the sector analyzed. In the manufacturing sector, for example, foreign multinational companies or export oriented ?rms prefer to cooperate only with market partners. In the services, ?rms receiving public subsidies for innovation prefer science cooperations to all the other cooperation arrangements leaving room for policy implications.
    Keywords: R&D cooperations; partner selection; industry-university linkages;service sector.
    JEL: O32 L10 L8 L6 D78
    Date: 2010–09–10
  11. By: Chantal Hartog; Brigitte Hoogendoorn
    Abstract: This study increases our understanding of the prevalence of social entrepreneurial activity at the country level and our comprehension of factors explaining the variation in the rate of social entrepreneurship. We introduce two measures of social entrepreneurship – “social business entrepreneurs” and “social initiators” – and link these measures to three fields of explanations: aggregate level conditions of entrepreneurship in general, aggregate individual characteristics and opportunities for social entrepreneurs. This study reveals that: (1) social entrepreneurship is indeed a phenomenon different from commercial entrepreneurship, (2) that the degree of postmaterialism in a society is a factor with significant explanatory value for the prevalence of social entrepreneurship, and (3) that opportunities for social entrepreneurs are in particular created when social initiators are part of the safety net of the welfare regime.
    Date: 2010–11–25
  12. By: Andrés Solimano; Diego Avanzini
    Abstract: International migration analysis often focuses on mass migration rather than on the international mobility of elites, which is the focus of this paper. The paper offers a three-fold classification of elites: (a) knowledge elites, (b) entrepreneurial elites and (c) political elites. We explore the concept of elites and their main motivation to move across nations and review indirect empirical evidence relevant to this type of mobility, highlighting some channels through which elites can affect international development.
    Keywords: international migration, entrepreneurial, political migrants, talent mobility
    Date: 2010
  13. By: Popy Rufaidah (Department of Management and Business, Faculty of Economy, Padjadjaran University); Dwi Kartini (Department of Management and Business, Faculty of Economy, Padjadjaran University); Faisal Afiff (Department of Management and Business, Faculty of Economy, Padjadjaran University)
    Abstract: This paper is to submit a model of university development through strategic alliances among universities in three regions, namely Vietcalom, Indotim, and Philiplands. In order to implement the strategic alliances as mentioned above, it needs a region as a center of the strategic alliances, namely European Union countries. The central region is hosted by Belgium as a hub which has a role to manage the relevant alliance among regions and to share its funding. For instance, the VLIR (Vlaamse Interuniversitaire Raad) and / or the CIUF (Cooperation Interuniversitaire Francophone) in Belgium are the organizations that have role as above mentioned. Belgium is selected as it is a founding member of the European Union and hosts its headquarters in Brussels which is the heart of the Europe Union countries. The paper develops a model in optimizing the potentiality in building the alliances among universities located in those regions. A literature review was carried out on strategic alliances and supporting factors. The paper discusses a conceptualization that allowing common theme which to be identified to implement the model. The paper argues that there is a lack of integrative frameworks for the alliances among the three regions particularly in optimizing the potentiality of the programs.
    Keywords: university development
    JEL: G0
    Date: 2010–02
  14. By: Bos Jaap; Lamoen Ryan van; Economidou Claire (METEOR)
    Abstract: This paper examines whether large U.S. banks have become ''too big to innovate''. We extend the theoretical work of Aghion et al. (2005b) by relaxing their assumption that unit costs are independent from output levels in order to investigate the effect of scale (dis)economies on the competition-innovation nexus. With our model we can derive conditions under which the innovation behavior of firms with scale diseconomies becomes more or less responsive to competitive changes. Our empirical results show that decreases in thelevel of competition lead to very large drops in innovation. Large banks, already operating beyond the minimum efficient scale, have indeed become ''too big to innovate''.
    Keywords: Industrial Organization;
    Date: 2010
  15. By: Lisa Bruttel; Simeon Schudy
    Abstract: We investigate the role of incentives set by a parent firm for competition among its subsidiaries. In a Cournot experiment four subsidiaries of the same parent operate in the same market. Parents earn a speciffic share of the joint profit and can choose how to distribute the remaining surplus (or loss). Results show that parents allocating profits equally among their subsidiaries reach outcomes close to collusion. However, almost half of the parent firms employ a proportional sharing rule instead. These groups end up with profits around the Cournot level.
    Keywords: Cournot Competition, Subsidiary, Subcompany, Experiment
    Date: 2010
  16. By: Carlos Carreira (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal); Paulino Teixeira (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal)
    Abstract: This paper discusses the impact of newly created firms on industry productivity growth. Our central hypothesis is that there are two potential effects of new firms on productivity growth: a direct effect, as entrants may be relatively more productive than established firms; and an indirect effect, through increased competitive pressure that stimulates incumbents to elevate their productivity in order to survive. The results of the decomposition exercise of aggregate productivity growth suggest that the direct contribution of entry is small. In turn, the regression analysis on the effect of entry on productivity growth of incumbents indicates that the higher is the former, the higher is the latter, which is equivalent to say that the greater is the competitive pressure generated by new entrants, the higher is the expected aggregate productivity level.
    Keywords: Entry, Firm dynamics, Productivity growth, Competition effect
    JEL: L11 L16 L25 O12 O47 L60
    Date: 2010–09
  17. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Taha, Zahari
    Abstract: Small and medium-sized enterprises (SMEs) are indeed the engines of global economic growth. Their continued growth is a major subject for the economy and employment of any country. Towards that end, virtual research and development (R&D) could be a viable option to sustain and ease the operations of SMEs. However, literature shows there has not been a great deal of research into the diverse characteristic of virtual R&D teams in SMEs. This article provides a comprehensive literature review on different aspects of virtual R&D teams collected from the reputed publications. The purpose of the literature review is to provide an outline on the structure and dynamics of R&D collaboration in SMEs. Specifying the rationale and relevance of virtual teams, the relationship between virtual R&D team for SMEs and new product development (NPD) has been examined. It concludes with identifying the gaps and feebleness in the existing literature and calls for future research in this area. It is argued to form of virtual R&D team deserves consideration at top level management for venturing into the new product development within SMEs.
    Keywords: Virtual teams; small and medium enterprises; new product development; R&D
    JEL: M5 L17 O32 M12 O1 M11 M1 M54 P42 P23 O3
    Date: 2010–05–20
  18. By: Guilherme Jonas Costa da Silva (UFU); Frederico G. Jayme Jr (Cedeplar-UFMG)
    Abstract: The paper tried to contribute to the theory of the location of the bank services. At first, there was strong evidence showing that the bank location not only depended on economical factors. The developed model and the results found in the spatial econometrics analysis demonstrated that there is in fact certain spatial dependence in the location strategy of the banks, besides, that the distribution pattern of the agencies in the state of Minas Gerais is being explained through macroeconomics, political and prescriptive factors as well.
    Keywords: Banks; Location Strategy; Spatial Econometrics; Minas Gerais
    JEL: C21 G21 R12
    Date: 2010–11
  19. By: Erman A Sumirat (Research Division, Laboratory of Management FE UNPAD); Sunu Widianto (Research Division, Laboratory of Management FE UNPAD)
    Abstract: In the dynamic world where entrepreneurs compete internationally due to globalization, business decisions are very hard to execute for local entrepreneurs especially when determining sales price for the products. In Indonesia, Asean China Free Trade Agreement (ACFTA), the free trade agreement between Asean countries and China also carries some difficulties to local entrepreneurs especially in small and medium enterprises (SME) as local SMEs still have lack of competitiveness compare with that of Chinese products. Hence, most of the customers have shifted their preferences to Chinese products simply because of its lower price. This phenomenon has impacted local entrepreneurs negatively in terms of competitiveness and losing customer loyalty. To strengthen local entrepreneurs’ competitiveness, one of the alternatives are promoting and implementing creative economy which more utilized cultural aspects which bring clear positioning to the local products. This study examines why creative industries as proposed by UNCTAD Framework (2008) is relevant to be implemented in Indonesia. Besides providing literature studies about creative economy, this study is also presenting the case study of how entrepreneurs who exploit local culture can have significant benefits especially in fashion, art and musical businesses. Bandung, the capitol of West Java as one of major cities in Indonesia is selected as Bandung has been appointed as a creative city pilot project by British Council (2007) as many Indonesian creative entrepreneurs are coming from Bandung. Therefore, the concept of creative industries and creative economy should be transferred and promoted to local entrepreneurs in order to enhance global competitiveness Four Actors-Four Elements model is developed in this study as a framework to successfully implement creative economy to the locals. Four Actors means the involvement of government as a regulator; communities as participants and customers; companies including corporate social responsibility and community development programs as well as creditors or investors through venture capital for micro finance and SME. Also the model has covered four core elements: firstly, culture which must be properly exploited to make an uniqueness in producing goods and services including giving transfer of knowledge to customers; secondly, place where should be set up strategically to attract customers to come; thirdly, economy factor like customers’ buying power and consumer behavior which creates demand as well as entrepreneurs capacity that develops supply; lastly, branding promotion are also important so customers have brand awareness regarding the local products/services. The introduction of four actors-four core elements model is expected to make creative economy works successfully in Indonesia. In the long run, it will strengthen global competitiveness by utilizing local culture and it will make a readiness in head to head competition with Chinese products.
    Keywords: creative industry, SME, competitiveness, local entrepreneurs
    JEL: G0
    Date: 2010–06

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