nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2010‒12‒23
nineteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Virtual R&D Teams: A potential growth of education-industry collaboration By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
  2. Análise comparativa de sobrevivência empresarial: o caso da região Norte de Portugal By Elsa Morais Sarmento; Alcina Nunes
  3. Determinants of Labor Productivity in Iran’s Manufacturing Firms: With Emphasis on Labor Education and Training By Fallahi, Firouz; Sakineh, Sojoodi; Mehin Aslaninia, Nasim
  4. The Effectiveness of University Knowledge Spill-Overs: Performance Differences between University Spin-Offs and Corporate Spin-Offs By Wennberg, Karl; Wiklund, Johan; Wright, Mike
  5. Orchestration of the Marketing Strategy under Competitive Dynamics By Rajagopal
  7. Network Analysis to Detect Common Strategies in the Italian Foreign Direct Investment By Giulia De Masi; Giorgia Giovannetti; Giorgio Ricchiuti
  8. Agglomerative Forces and Cluster Shapes By William R. Kerr; Scott Duke Kominers
  9. Adoption Technology Targets and Knowledge Dynamics: Consequences for Long-Run Prospects By Verónica Mies
  10. Technical and Institutional Strategies for the Development of Algarve Citrus System - The Case of IGP "Algarve Citrus" By Madeira, Emilia; Guerreiro, João; Carvalho, Agostinho
  11. Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups By H. Wolf; Claus Michelsen; Michael Schwartz
  12. Strategies for the People’s Republic of China’s Small and Medium Enterprise Development within the National Innovation System By Tracy Yang; Jamus Jerome Lim; Toshiki Kanamori
  13. Role and relevance of business incubators in ICT led global educational system: case for eco-enterprise village By Koshy, Perumal
  14. Business creation in Portugal: Comparison between the World Bank data and Quadros de Pessoal By Elsa Morais Sarmento; Alcina Nunes
  15. Manufacturing employment and exchange rates in the Portuguese economy: the role of openness, technology and labour market rigidity By Fernando Alexandre; Pedro Bação; João Cerejeira; Miguel Portela
  16. On and Off the Beaten Path: Transferring Knowledge through Formal and Informal Networks By Aalbers, Rick; Koppius, Otto; Dolfsma, Wilfred
  17. The Swedish national innovation system and its relevance for the emergence of global innovation networks By Chaminade, Cristina; Zabala, Jon Mikel; Treccani, Adele
  18. Network Formation with Adaptive Agents By Schuster, Stephan
  19. Technology and Indonesia’s Industrial Competitiveness By Thee Kian Wie

  1. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
    Abstract: In this paper, we present our more than two years research experiences on virtual R&D teams in small and medium-sized enterprises (SMEs) and draws conclusions, giving special attention to the structure of virtual teams required to support education-industry collaboration. We report the relevant results of an online survey study. The online questionnaire was emailed by using a simple random sampling method to 947 manufacturing SMEs. The findings of this study show that SMEs in Malaysia and Iran are willing to use virtual teams for collaboration and the platform for industry-education collaboration is ready and distance between team members or differences in time zones, are not barriers to industry-education collaborations.
    Keywords: Collaboration; virtual teams; SMEs; Education
    JEL: M12 O32 A2 L17 L1 O1 M11 M1 L15 O3
    Date: 2010–06
  2. By: Elsa Morais Sarmento (Gabinete de Estratégia e Estudos, Ministério da Economia, da Inovação e do Desenvolvimento; Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.); Alcina Nunes (Departamento de Economia e Gestão, Instituto Politécnico de Bragança)
    Abstract: This study approaches the survival ability of firms in the North region of Portugal from 1985 to 2007, allowing regional and national comparisons through the application of non-parametric and semi-parametric methods. This analysis is based on the creation of a specific entrepreneurship database, based on Quadros de Pessoal, where the methodology of Eurostat/OECD´s “Manual of Business Demography Statistics” was applied to. In the North, firms close earlier on during their infancy as their median duration is below the median duration of firms located in the rest of the country. The high turbulence of firm turnover is pointed out as a fundamental determinant of the survival probabilities of firms in this region.
    Keywords: Empreendedorismo, Dinâmica Empresarial, Sobrevivência, Análise Regional.
    JEL: C14 C41 L25 L26 R11
    Date: 2010–12
  3. By: Fallahi, Firouz; Sakineh, Sojoodi; Mehin Aslaninia, Nasim
    Abstract: In an era of globalized competition, productivity has become a crucial factor determining profitability, competitiveness and the growth of a firm. High productivity means lower per unit cost and, therefore, ability of the firm to match prices on the global markets. Because of that, there has been an increasing interest recently in the literature on factors affecting productivity. This paper investigates the determinants of labor productivity at the firm level in the Iran’s manufacturing sector. The analysis is based on descriptive statistics and cross sectional regression models on a sample of 12299 Industrial firms. The results show that labor productivity is positively related to wage, fixed capital per employee, export orientation, R&D activity and Education of labor force.
    Keywords: Labor productivity; Industrial firms; Education; Training; Export; R&D
    JEL: J24 J2
    Date: 2010–12–13
  4. By: Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Wiklund, Johan (Whitman School of Management and Jönköping International Business School, Sweden); Wright, Mike (Centre for Management Buy-out Research, Nottingham University Business School and University of Ghent)
    Abstract: While much prior research has focused upon how the Technology Transfer Offices and other contextual characteristics shape the level of university spin-offs (USO), there is little research on entrepreneurial potential among individual academics, and to the best of our knowledge, no comparative studies with other types of spin-offs exist to date. In this paper we suggest that knowledge transfer from academic research may flow indirectly to entrepreneurship by individuals with a university education background who become involved in new venture creation by means of corporate spin-offs (CSO) after gaining industrial experience, rather than leaving university employment to found a new venture as an academic spinoff. In fact, the commercial knowledge gained by industry experience is potentially more valuable for entrepreneurial performance compared to the academic knowledge gained by additional research experience at a university. This leads us to posit that not only will the average performance of CSOs be higher than comparable USOs, but the gains from founder’s prior experiences will also be higher among CSOs. We investigate these propositions in a comparative study tracking the complete population of USOs and CSOs among the Swedish knowledge-intensive sectors between 1994 and 2002.
    Keywords: Spill-Overs
    JEL: L53 M13 O32 O34
    Date: 2010–12–16
  5. By: Rajagopal (Tecnológico de Monterrey, Campus Ciudad de México)
    Abstract: Constructing suitable marketing strategy and implementing it effectively is an art and science both like orchestration of a symphony. The discussion in this paper blends this analogy with the science of marketing demonstrating the levels of strategy development in a competitive marketplace. The paper presents the marketing-mix in contemporary context and argues that performance of a marketing firm can be maximized, when a firm develops a creative marketing strategy and achieves marketing strategy implementation effectiveness. The discussion in the paper reveals that marketing managers of different levels simultaneously operate within the firm and perceive the need for strategy development with varied preferences. A consequence of this is development of robust strategies and their effective implementation which, in turn, leads to increased market performance. Thus, it is important for researchers to investigate various strategy integration perspectives and this paper provides guidance by reviewing the existing literature.
    Keywords: Marketing strategy, strategy integration, marketing-mix, customer value,strategy implementation, market competition, risk factors, brand building, customer centric strategy, routes to market
    JEL: M31
    Date: 2010–12
  6. By: Gilliane LEFEBVRE (Université Paris Ouest Nanterre La Défense); Blandine LAPERCHE (labrii, ULCO)
    Abstract: Quelle est la place et le rôle joué par les petites entreprises dans la constitution du capital-savoir des groupes, c'est-à-dire l’ensemble des informations et connaissances qu’ils mobilisent pour innover ? Quelles formes prend la collaboration entre groupes industriels et petites entreprises innovantes ? Dans cet article, les auteures étudient ces questions sur la base d’une revue de la littérature et des résultats d’une enquête menée au cours de l’année 2009 et 2010 sur le capital-savoir des groupes industriels (Langlet et al., 2010). Elles étudient la constitution collaborative du capital-savoir ainsi que les formes et objectifs de la collaboration selon le type de partenaire associé au groupe industriel (recherche académique, clients et fournisseurs, concurrents et petites entreprises). Elles mettent l’accent sur les formes de collaborations actuelles entre petites entreprises innovantes et groupes industriels et montrent que cette coopération prend largement appui en France sur les dispositifs publics d’incitation à la création de réseaux d’innovation. What is the place and the role played by small businesses in the constitution of the knowledge capital of industrial groups, that is to say the set of information and knowledge that they gather to innovate? What form does the cooperation between industrial groups and small innovative companies take? In this article, the authors study these issues on the basis of review of literature and on the results of a survey conducted during 2009 and 2010 on the knowledge-capital of industrial groups (Langlet et al., 2010). They study the open strategy developed by industrial groups to develop their knowledge-capital and the forms and objectives of the collaboration according to the partner associated to the industrial group (academic research, customers and suppliers, competitors and small businesses). They focus on current forms of collaboration between small innovative companies and industrial groups and show that such cooperation is widely supported in France on the public provision of incentives for the creation of innovation networks.
    Keywords: small businesses - industrial groups - innovation - groupes industriels - petites entreprises
    JEL: M21 M51
    Date: 2010–11
  7. By: Giulia De Masi (Ocean Engineering Department (ENI)); Giorgia Giovannetti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Giorgio Ricchiuti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)
    Abstract: In this paper, using the database ICE-Reprint, the network of Italian firms investing abroad is studied. This analysis focuses on some manufacturing sectors, highlighting the linkages among firms and detecting the key nodes of the system (both in terms of firms and countries of destination). Moreover, through the examination of affiliates' economic activity, different policies of internationalization among leaders emerge.
    Keywords: FDI, Economics Networks, Projected network
    JEL: F2 L1
    Date: 2010
  8. By: William R. Kerr (Harvard Business School, Entrepreneurial Management Unit); Scott Duke Kominers (Harvard Business School)
    Abstract: We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions yield agglomeration clusters that are much larger than the underlying agglomerative forces themselves. Empirically, we demonstrate that our model's assumptions are present in the structure of technology and labor flows within Silicon Valley and its surrounding areas. Our model further identifies how the lengths over which agglomerative forces operate influence the shapes and sizes of industrial clusters; we confirm these predictions using variations across both technology clusters and industry agglomeration.
    Keywords: Agglomeration, Clusters, Industrial Organization, Silicon Valley, Entrepreneurship, Labor Markets, Technology Flows, Patents, Natural Advantages.
    JEL: J2 J6 L1 L2 L6 O3 R1 R3
    Date: 2010–12
  9. By: Verónica Mies
    Abstract: When targeting frontier technologies, less developed economies usually face obstacles to achieve high growth in the long run, because of their low level of knowledge relative to the adoption technology target. If the intensity in which the adoption activity uses knowledge is high, then the less developed economy may end up trapped in a low growth equilibrium. We show that in this case it is beneficial to target less advanced technologies, which helps to compensate the scarcity of knowledge during the transition. Nevertheless, polarization is possible. If knowledge intensity in the adoption activity is low, then possessing a low stock of knowledge allows targeting the technology frontier even in a poor R&D environment. In this case, all economies achieve a high growth equilibrium in which only income level differences persist in the long run.
    Keywords: R&D, adoption, innovation, growth, development, transitional dynamics.
    JEL: O30 O33 O40
    Date: 2010
  10. By: Madeira, Emilia (CIEO , Faculty of Economics); Guerreiro, João (CIEO, Faculty of Economics); Carvalho, Agostinho (Instituto Superior de Ciências da Saúde Egas Moniz)
    Abstract: This research approaches some factors that have been affecting the competitiveness faced by the Algarve citrus culture since the European Single Market came into force and before a more and more global economy. As it is known in a global economy, any competitive strategy should be based on the quality seen as the ability to respond to the market, considering all the main types of actors at different levels of the Algarvian citrus system. Thus, the main objective was to identify any malfunctions (technical and institutional) for the citrus system, which have contributed directly or indirectly, for not meeting the expectations of key customers / consumers. The research took into account the general context of the Algarve citrus culture in order to identify the constraints faced by it. It focused on the industry context to understand the behavior of key customers, suppliers and competitors. The research results enabled us to make a characterization of quality attributes considered relevant when national consumers acquire citrus fruit, namely the Algarve citrus fruit, if they are introduced to the market, in an undifferentiated way or not, and through the main distribution channels. The facts identified in the empirical research indicate that limitations of technical and institutional order can make unfeasible or strongly condition the capacity of the Algarve citrus culture (production subsystem) to meet the market requirements. The conclusions reached for the development of the Algarve citrus culture, were based on Hayami and Ruttan´s “induced technical and institutional innovation” theory (1998). We think we have given a contribution towards the definition of strategies for the Algarve citrus culture development, bearing in mind both the market and the available resources.
    Keywords: Competitiveness; strategy; quality; IGP Algarve Citrus; technical and institutional innovation; citrus system
    JEL: O30
    Date: 2010–10–29
  11. By: H. Wolf; Claus Michelsen; Michael Schwartz
    Abstract: Knowledge of factors that determine the transition from nascent entrepreneurship into real entrepreneurship is of major importance for policies aiming to effectively stimulate start-ups. Whereas scholars concentrated on person-specific factors to explain transition probabilities, environmental characteristics have been fairly neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data on 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities on transition probabilities. Further, we introduce a new approach to measure nascent entrepreneurship by capturing individuals that actively participate in start-up competitions and have won at least one competition. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment for the probability of transition from award-winning nascent entrepreneurs to real start-ups.
    Date: 2010–12
  12. By: Tracy Yang; Jamus Jerome Lim; Toshiki Kanamori
    Abstract: With deregulation and globalization, and the impact of these developments on economies worldwide, it has become necessary for the PRC authorities to consider an approach that would further attune its economic engine toward sustained growth. This paper argues that certain sectors of the economy [in particular, the small and medium enterprise (SME) sector] may play a signicant role in terms of any further reforms of the PRC's national innovation system, which in turn could spur continued growth. It highlights how issues such as innovation, research and development, and strategic clustering in influence the SME sector, and outlines internal and external conditions that may impact the further development of this sector. [ADB Institute Research Paper Series No. 73]
    Keywords: globalization, small and medium enterprise (SME), economic engine, sustained growth, innovation
    Date: 2010
  13. By: Koshy, Perumal
    Abstract: Following paper presents the case of Business Incubators (BIs) as future educational and learning centres. It explores the question of how feasible and relevant is this concept andt how they can be designed to deliver educational & training programmes that meet the requirement of knowledge economy by suitably preparing youth to face the challenges of the global market. Business Incubators are businesses aiming at nurturing and establishing other businesses. They are considered to be an excellent tool for Small and Micro Enterprises (SMEs) development. Targeted assistance at small entrepreneurs & start-up businesses- help them grow and graduate to mature enterprises. According to ILO estimates 300 million jobs have to be created world over in the next 5 years. As many as 45 million young people enter the job market annually, at a global level. There are three different kinds of BIs and they are public, private, and university based BIs and are commonly classified by ownership. In the IT-led global knowledge village, there are seamless potentials for study, earning a degree and education outside of the college campuses. Virtual campuses are the reality today. What are needed then would be centres for imparting practical lessons on commercialising the knowledge, innovative ideas, and technical skills. Also it is important to impart real training in starting, managing, making profit and pursuing the growth of enterprises & ventures that a youth entrepreneur could launch. In the knowledge economy, BIs can be real learning centres. Also, technological and academic oriented knowledge & literacy is not the only skill required for attaining success, set-up a business or getting a well-paying job in the new knowledge based global economy. But what is required are a set of skills called 21st century skills, which can be well delivered through BIs, when they are turned as educational centres. The paper also presents a BI model, which has an objective of building businesses with a strategic orientation towards environment and sustainable development. The BI design presented is called as Eco-Enterprise Village.
    Keywords: Business Incubators; Micro; Small and Medium Enterprises; Information & Communication Technology; Education and Training; Eco Enterprise Incubator
    JEL: N8 O10 M13 A10 M21 J23
    Date: 2010–11–30
  14. By: Elsa Morais Sarmento (Gabinete de Estratégia e Estudos, Ministério da Economia, da Inovação e do Desenvolvimento; Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.); Alcina Nunes (Departamento de Economia e Gestão, Instituto Politécnico de Bragança)
    Abstract: Portugal has some of the highest business entry rates when compared to other countries, according to Eurostat, Statistics Portugal and the OECD Entrepreneurship Indicators Programme. We look at business creation in Portugal, from 2000 to 2007, by approaching two other complementary data sources, the World Bank Group Entrepreneurship Survey, based on official Portuguese business register’s and the universe of active employer enterprises, obtained by applying to the dataset Quadros de Pessoal, the methodology and definitions of the Eurostat/OECD´s “Manual on Business Demography Statistics”. This allows us to address entrepreneurship indicators comparability issues and exploit complementarities to support entrepreneurship patterns and trends previously identified by other national and international sources. We highlight the importance of considering information other than business registries, in particular when calculating business entry rates. Datasets where economically active units can be identified provide a better proxy for the true level of business creation and activity in Portugal.
    Keywords: Entrepreneurship, Business registries, Business Creation, Portugal, World Bank.
    JEL: M13 M21 L26
    Date: 2010–12
  15. By: Fernando Alexandre (University of Minho and NIPE); Pedro Bação (University of Coimbra and GEMF); João Cerejeira (University of Minho and NIPE); Miguel Portela (University of Minho, NIPE and IZA)
    Abstract: Integration into the world economy, specialization in low-technology sectors and labour market rigidity have been singled out as structural features of the Portuguese economy that are crucial for the understanding of its performance. In this paper, we explore empirically the role of openness, technology and labour market rigidity in the determination of the effect of the exchange rate on the dynamics of employment in Portugal. Our estimates indicate that employment in low-technology sectors with a high degree of trade openness and facing less rigidity in the labour market is more sensitive to movements in exchange rates. Therefore, our results provide additional evidence on the relevance of those structural features for explaining the evolution of the Portuguese economy in the last decades. In this paper the degree of labour market rigidity is measured at the sector level by means of a novel index. According to this index, high-technology sectors face less labour market rigidity. These sectors are also more exposed to international competition. However, the bulk of employment destruction has occurred in low-technology sectors. This suggests that productivity/technology may be the key variable to reduce the economy's exposure to external shocks.
    Keywords: exchange rates, international trade, job flows, labour market rigidity, technology
    JEL: J23 F16 F41
    Date: 2010–08
  16. By: Aalbers, Rick (Atos Consulting); Koppius, Otto (RSM/Erasmus University); Dolfsma, Wilfred (RSM/Erasmus University)
    Abstract: Informal networks are often emphasized as facilitating knowledge transfer. However, we find that formal networks also contribute significantly to knowledge transfer, and in fact contribute more than informal networks. This is particularly the case when knowledge is transferred between units. Additional analysis shows a synergetic effect between formal and informal ties, which suggests that knowledge transfer effects that in previous studies were attributed to informal networks only, may in fact be caused by the combination of both formal and informal networks. We conclude that there is more than one path to transfer knowledge effectively.
    Keywords: Knowledge transfer; Formal networks; informal networks; multi-unit organizations.
    JEL: O30
    Date: 2010–12–15
  17. By: Chaminade, Cristina (CIRCLE, Lund University); Zabala, Jon Mikel (CIRCLE, Lund University); Treccani, Adele (CIRCLE, Lund University)
    Abstract: Sweden is considered to be one of the most advanced countries in terms of innovation worldwide. Sweden always ranks high in all international reports on Science and Technology indicators such as the ones regularly published by the OECD or Eurostat. As many small countries, the Sweden economy has a strong international orientation and this is also reflected in the national innovation system. The NIS is dominated by internationally oriented industrial firms and universities. Furthermore, since 1988, the country has experienced a growing trend of mergers and acquisitions of technology intensive firms by foreign companies (Vinnova, 2006) whose presence, particularly in certain industries, is very noticeable. The aim of this paper is to explore the links between the NIS in Sweden and the participation of Swedish firms and Swedish universities in Global Innovation Networks. More specifically, it attempts to answer the following questions: a) To what extent are Swedish actors participating in GINs? b) To what extent is the Swedish NIS attracting GINs? c) What is the role of the Swedish NIS in supporting the participation of Swedish Universities and Swedish firms in GINs? d) What is the role of the Swedish NIS in attracting actors in GINs into Sweden?. The paper is based on secondary sources and has a rather descriptive nature. In its current form (June 2010) is a report submitted to the EU Commission as part of the deliverables of the INGINEUS project
    Keywords: globalization; innovations systems; Sweden
    JEL: O30
    Date: 2010–06
  18. By: Schuster, Stephan
    Abstract: In this paper, a reinforcement learning version of the connections game first analysed by Jackson and Wolinsky is presented and compared with benchmark results of fully informed and rational players. Using an agent-based simulation approach, the main nding is that the pattern of reinforcement learning process is similar, but does not fully converge to the benchmark results. Before these optimal results can be discovered in a learning process, agents often get locked in a state of random switching or early lock-in.
    Keywords: agent-based computational economics; strategic network formation; network games; reinforcement learning
    JEL: C63 D85
    Date: 2010
  19. By: Thee Kian Wie
    Abstract: This paper will discuss the major factors, which affect Indonesia’s industrial competitiveness, specifically the determinants of its industrial technology development, which is crucial to raising Indonesia’s competitiveness. After a brief overview of industrial development before and after the Asian economic crisis, the paper discusses some recent assessments of the country’s competitiveness. It considers the determinants of Indonesia’s industrial technological development, including policy options open to the government.
    Keywords: Indonesia, industrial competitiveness, technology development, Asian, economic
    Date: 2010

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