nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒04‒23
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Endogenous growth through knowledge spillovers in entrepreneurship: An empirical test By Delmar, Frédéric; Wennberg, Karl; Hellerstedt, Karin
  2. Do Market Leaders Lead in Business Process Innovation? The Case(s) of E-Business Adoption By Kristina McElheran
  3. Capital allocation in the Greek regions By Liargovas , Panagiotis G.; Daskalopoulou, Irene F.
  4. Explaining the structure of inter-organizational networks using exponential random graph models: does proximity matter? By Tom Broekel; Matte Hartog
  5. Absorptive capacity in technological learning in clean development mechanism projects By Doranova, Asel; Costa, Ionara; Duysters, Geert
  6. The Value of an Educated Population for an Individual’s Entrepreneurship Success By Jose Maria Millan; Emilio Congregado; Concepcion Roman; Mirjam van Praag; Andre van Stel
  7. Social impacts of the development of science, technology and innovation indicators By Gault, Fred
  8. Strategies for flexibility and labour fragmentation. A transnational case study in the clothing industry By Pedaci Marcello
  9. A Conceptual Model of National Skills Formation for Knowledge-based Economic Development By Schwalje, Wes
  10. Technological Innovations and the Allocation of Decision-Making Authorities in Swiss Firms By Kathrin Armbruster
  11. The role of business subsidies in job-creation start-ups, gazelles and imcumbents By Heli Koski; Mika Pajarinen
  12. Do Labour Societies Perform Differently to Cooperatives? Evidence from the Spanish Building Industry By Francisco J. Sáez-Fernández; Andrés J. Picazo-Tadeo; Carmen Llorca-Rodríguez
  13. The Impact of Managerial Flexibility on Negotiation Strategy and Bargaining Power By Elmar Lukas; Andreas Welling
  14. Technology Growth and Expenditure Growth in Health Care By Amitabh Chandra; Jonathan S. Skinner

  1. By: Delmar, Frédéric (Research Institute of Industrial Economics and Center for Research in New Venture Creation and Growth); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Hellerstedt, Karin (Jönköping International Business School)
    Abstract: Endogenous growth theory is based on the notion that technological knowledge stimulates growth, yet the micro foundations of this process are rarely investigated and remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape for technology entrepreneurs to launch and grow new ventures. We investigate these theoretical contingencies of endogenous growth with two research questions at two levels of analysis: First, do industries with a greater need for new technology-based entrepreneurship grow disproportionately faster than other industries? Second, do the knowledge spillover effects foster the growth of new technology based firms contingent on certain industry structures? These questions are examined empirically, using a comprehensive employee-employer data set on the science and technology labor force in Sweden from 1995 to 2002.
    Keywords: Endogenous Growth; Entrepreneurship; Industry Evolution
    JEL: D24 L11 L26 M13
    Date: 2011–04–12
  2. By: Kristina McElheran
    Abstract: This paper investigates the relationship between market position and the adoption of IT-enabled process innovations. Prior research has focused overwhelmingly on product innovation and garnered mixed empirical support. I extend the literature into the understudied area of business process innovation, developing a framework for classifying innovations based on the complexity, interdependence, and customer impact of the underlying business process. I test the framework’s predictions in the context of ebuying and e-selling adoption. Leveraging detailed U.S. Census data, I find robust evidence that market leaders were significantly more likely to adopt the incremental innovation of e-buying but commensurately less likely to adopt the more radical practice of e-selling. The findings highlight the strategic significance of adjustment costs and co-invention capabilities in technology adoption, particularly as businesses grow more dependent on new technologies for their operational and competitive performance.
    Date: 2011–04
  3. By: Liargovas , Panagiotis G.; Daskalopoulou, Irene F.
    Abstract: The present study analyzes the location of new economic activities in the 51 Greek prefectures (NUTS III level) as the outcome of agglomeration economies and other factors that are acknowledged as determinants of new firm location. Cross-section data referring to the location choices of firms in manufacturing, commerce, services and tourism within 2005 are used. Results indicate that agglomeration effects largely determine a region’s attractiveness and appropriateness as an investment location. In addition, the effect of other factors such as demand, expected profit and cost conditions is identified as important. Interestingly, regional characteristics seem to affect in different ways the location of start-ups belonging to different industries.
    Keywords: entrepreneurship; start-ups; location; agglomeration economies; regional development; data envelopment analysis; Greece
    JEL: L26 R11 R38
    Date: 2011
  4. By: Tom Broekel; Matte Hartog
    Abstract: A key question raised in recent years is which factors determine the structure of inter-organizational networks. While the focus has primarily been on different forms of proximity between organizations, which are determinants at the dyad level, recently determinants at the node and structural level have been highlighted as well. To identify the relative importance of determinants at these three different levels for the structure of networks that are observable at only one point in time, we propose the use of exponential random graph models. Their usefulness is exemplified by an analysis of the structure of the knowledge network in the Dutch aviation industry in 2008 for which we find determinants at all different levels to matter. Out of different forms of proximity, we find that once we control for determinants at the node and structural network level, only social proximity remains significant.
    Keywords: exponential random graph models, inter-organizational network structure, network analysis, proximity, aviation industry, economic geography
    JEL: R11 D85 L14 L62
    Date: 2011–04
  5. By: Doranova, Asel (Technopolis Consulting Group); Costa, Ionara (UNU-MERIT); Duysters, Geert (Eindhoven University of Technology and Tilburg University)
    Abstract: Technology transfer in Clean Development Mechanism (CDM) projects of the Kyoto Protocol has become one of the important issues addressed both in policy agenda and by academic scholars. In many CDM project host countries, technology transfer is among the key provisions of sustainable development objectives of the CDM projects. This study is an effort to investigate CDM projects' related technology transfer process from the organizational learning perspective. The prerequisite for successful technology transfer and organizational technological learning is to foster technological capabilities (TC) of an organization. In this study we used data from our survey of the CDM project host organizations in four largest CDM host countries India, Brazil, Mexico and China. We assessed TC building progress and studied various characteristics of the organizations. The present paper focuses on absorptive capacity related determinants of technological capability building in the CDM projects. Absorptive capacity is a multidimensional concept thus we investigated the effect of the dimensions such as prior knowledge, personnel qualification, and training efforts. A strong positive association was established between prior knowledge and TC building; and less for qualification variable. Besides we proved a curvilinear relationship between prior knowledge and TC building outcomes.
    Keywords: Clean Development Mechanism, Technology transfer, technological capability building, technological learning, absorptive capacity
    JEL: O13 O19 O57
    Date: 2011
  6. By: Jose Maria Millan (University of Huelva, Spain); Emilio Congregado (University of Huelva, Spain); Concepcion Roman (University of Huelva, Spain); Mirjam van Praag (ACE, University of Amsterdam); Andre van Stel (EIM Business and Policy Research, Zoetermeer, the Netherlands)
    Abstract: Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur’s venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994-2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country <I>j</I> and year <I>t</I> and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the probability that an entrepreneur starts employing personnel and maintains as an employer for a longer period of time. An implication of our novel finding is that entrepreneurship and higher education policies should be considered in tandem with each other.
    Keywords: entrepreneurship; performance; survival; personnel; education
    Date: 2011–04–12
  7. By: Gault, Fred (UNU-MERIT, and TUT-IERI Pretoria)
    Abstract: This paper examines the social impacts of the development of science, technology and innovation indicators. The approach deals separately with the development process and with the use of the indicators that result. Underlying the discussion is an assumption that indicators are a technology, a product, which governs behaviour, is modified by users (outside of the producer community), and develops in response to user needs. Science and technology indicators are considered separately from innovation indicators, and the importance of language based on codified and tacit knowledge is emphasized. The knowledge is codified in manuals, and the tacit knowledge is held in overlapping communities of practice that develop the manuals, gather the data, produce the indicators and use them. Finally, there is a discussion of how this process changes and renews itself.
    Keywords: Economic impacts, social impacts, innovation indicators, science and technology indicators, indicators, social constructs, knowledge
    JEL: O33 Z13
    Date: 2011
  8. By: Pedaci Marcello
    Date: 2011–03
  9. By: Schwalje, Wes
    Abstract: The movement of many countries towards knowledge-based economic development requires the transition to more effective skill formation systems. This paper proposes an institutionalist approach to national skills development systems in the advancement towards knowledge-based economic development. There is currently no accepted general framework to analyze national skills development systems which has resulted in countries adopting reactive approaches to skills development problems. The conceptual framework advanced is an integrated, systemic view of national skills formation systems guided by government intervention in light of rampant failures of neo-liberal skills formation approaches that rely upon market mechanisms. The framework contributes to the skills formation literature by reviewing, synthesizing, and building on the literature from a multidisciplinary perspective that considers the relevant institutions and interests of key stakeholders as highly interrelated in the context of knowledge-based economic development and achievement of accompanying economic, political, and social objectives.
    Keywords: skills formation; knowledge economy; competitiveness; skills development policy; economic development
    JEL: J40 J41 J24
    Date: 2011–04–14
  10. By: Kathrin Armbruster (University of Basel)
    Date: 2011
  11. By: Heli Koski; Mika Pajarinen
    Abstract: Our data concerning the whole Finnish company population from the years 2003-2008 suggest that the impacts of business subsidies on employment growth differ more between high-growth start-ups and other firms than between start-ups and over five years old incumbents. All subsidies seem to relate positively to the contemporary employment growth both among start-ups and incumbents. Furthermore, our data show that both the employment of start-ups and older incumbents receiving employment or other subsidies grow more than that of non-subsidized firms after subsidy reception. Instead, we find that business subsidies do not provide significant further boost for the contemporary or after-subsidy growth of gazelles. There are apparently some other factors dominating the growth of young high-growth firms making them to grow strongly, in many cases, with or without subsidies.
    Keywords: public subsidies, technology policy, growth, Finland
    JEL: J23 L10 O33
    Date: 2011–04–08
  12. By: Francisco J. Sáez-Fernández (Universidad de Granada, Spain); Andrés J. Picazo-Tadeo (Universidad de Valencia, Spain); Carmen Llorca-Rodríguez (Universidad de Granada, Spain)
    Abstract: Cooperatives and Labour Societies are both Social Economy enterprises, but with noticeable differences, some of which are imposed by legislation in Spain. The aim of this paper is to study whether such differences affect their management capacity and, in particular, efficiency. In order to do so, we apply Data Envelopment Analysis (DEA) techniques to a sample of Spanish enterprises in the building industry and calculate indices of program efficiency. Results show that there is little difference between the performance of the two types of enterprises, although Cooperatives appear to have advantages over Labour Societies in regard to the management of working capital and, albeit to a lesser extent, labour.
    Date: 2011–04
  13. By: Elmar Lukas (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Andreas Welling (Economics Institute, Brandenburg University of Technology, Cottbus)
    Abstract: Using a dynamic real options approach we show that in a sequential bargaining framework managerial flexibility is strengthening the first-mover advantage by undermining the bargaining power of the second mover. Furthermore we compare the results of the sequential framework with the results of cooperative bargaining.
    Keywords: real option, game theory, sale, negotiation, flexibility, ultimatum game
    JEL: G3 D81
    Date: 2011–04
  14. By: Amitabh Chandra; Jonathan S. Skinner
    Abstract: In the United States, health care technology has contributed to rising survival rates, yet health care spending relative to GDP has also grown more rapidly than in any other country. We develop a model of patient demand and supplier behavior to explain these parallel trends in technology growth and cost growth. We show that health care productivity depends on the heterogeneity of treatment effects across patients, the shape of the health production function, and the cost structure of procedures such as MRIs with high fixed costs and low marginal costs. The model implies a typology of medical technology productivity: (I) highly cost-effective “home run” innovations with little chance of overuse, such as anti-retroviral therapy for HIV, (II) treatments highly effective for some but not for all (e.g. stents), and (III) “gray area” treatments with uncertain clinical value such as ICU days among chronically ill patients. Not surprisingly, countries adopting Category I and effective Category II treatments gain the greatest health improvements, while countries adopting ineffective Category II and Category III treatments experience the most rapid cost growth. Ultimately, economic and political resistance in the U.S. to ever-rising tax rates will likely slow cost growth, with uncertain effects on technology growth.
    JEL: D24 I1 I12
    Date: 2011–04

This nep-cse issue is ©2011 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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