nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒07‒02
nineteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Penang as a knowledge hub By Evers, Hans-Dieter
  2. The effect of vertical knowledge spillovers via the supply chain on location decision of firms By Kashefi, Mohammad Ali
  3. Proximity, Networks and Knowledge Production in Europe By Emanuela Marrocu; Raffaele Paci; Stefano Usai
  4. Taking Keller seriously: trade and distance in international R&D spillovers By Andrea Fracasso; Giuseppe Vittucci Marzetti
  5. Industry funding of university research and scientific productivity By Hottenrott, Hanna; Thorwarth, Susanne
  6. Is Success Hereditary? Evidence on the Performance of Spawned Ventures By Dick Johannes; Hussinger Katrin; Blumberg Boris; Hagedoorn John
  7. The knowledge regions in the enlarged Europe By Alessandra Colombelli; Marta Foddi; Raffaele Paci
  8. Big ideas: How competition improves management and productivity By John Van Reenen
  9. Critical review of cluster mapping studies in Poland By Tomasz Brodzicki
  10. Related Variety, Global Connectivity and Institutional Embeddedness: Internet Development in Beijing and Shanghai Compared By Jun Zhang
  11. Challenges of Transformation: Innovation, Re-bundling and Traditional Manufacturing in Canada's Technology Triangle By Harald Bathelt; Andrew Munro; Ben Spigel
  12. Strategic Analysis of the U.S. Quarter Horse Industry, Emphasizing California By Phillips, Jon C.; Hays, Lauren L.
  13. Innovative capability and financing constraints for innovation more money, more innovation? By Hottenrott, Hanna; Peters, Bettina
  14. Assessing the tendency of Spanish manufacturing industries to cluster: Co-localization and establishment size By Marta Casanova; Vicente Orts Ríos
  15. Identifying the Effects of Co-Authorship Networks on the Performance of Scholars: A Correlation and Regression Analysis of Performance Measures and Social Network Analysis Measures By Alireza Abbasi; Jorn Altmann; Liaquat Hossain
  16. Testing for Clustering of Industries - Evidence from micro geographic data By Tobias Scholl; Thomas Brenner
  17. Searching for the Entrepreneurial Personality: New Evidence and Avenues for Further Research By Caliendo, Marco; Kritikos, Alexander S.
  18. Determinants of Management Practices (Japanese) By ASABA Shigeru
  19. A cluster-based industrial development policy for low-income countries By Otsuka, Keijiro; Sonobe, Tetsushi

  1. By: Evers, Hans-Dieter
    Abstract: Malaysian development strategies since independence, again in the 10th Malaysia Plan 2010 have emphasized the development of industrial clusters, like the Penang free trade zone and the MSC. Malaysia has two strong knowledge clusters: the Klang valley with KL and the MSC, Penang State and a number of smaller clusters. A calculation of the density of knowledge institutions and knowledge personnel show the epistemic landscape of Malaysia. A preliminary study of Penang reveals that the epistemic landscape is fragmented. There are several areas with a high density of knowledge institutions and knowledge workers, which however do not necessarily overlap with industrial clusters. These imbalances need to be corrected to ensure a safe passage towards a knowledge-based economy and society.
    Keywords: Malaysia; Penang; knowledge clusters; knowledge economy; development strategy
    JEL: R58 E6 D8 A14
    Date: 2011–01–10
  2. By: Kashefi, Mohammad Ali
    Abstract: In this paper a game theoretic model is employed to analyze the relationship between strategic location decision of firms in the supply chain considering the role of horizontal and vertical knowledge spillovers, and numerical approach is applied to characterize the equilibria of the considered multi-stage game. Geographical concentration or isolation as equilibrium outcome is determined based on our different parameterizations and two scenarios each consists of two separated cases, which we establish according to the location of our agents. In the first scenario both suppliers are supposed to be located in different regions while in the second one they act in a same region. In addition, first case of each scenario considers geographical isolation of two producers whereas second case investigates the geographical concentration. Furthermore, the effect of different technological level of our agents on their final location decision is investigated.
    Keywords: Strategic Firm Location; Knowledge Spillover; Geographical Concentration; Supply Chain
    JEL: R30 L13 C88 C61 D83 C72
    Date: 2011–05–01
  3. By: Emanuela Marrocu; Raffaele Paci; Stefano Usai
    Abstract: This paper aims at assessing the role of various dimension of proximity on the innovative capacity of a region within the context of a knowledge production function where we consider as main internal inputs R&D expenditures and human capital. We want to assess if, and how much, the creation of new ideas in a certain region is the result of flows of information and knowledge coming from proximate regions. In particular, we examine in details the concept of proximity combining the usual geographical dimension with the institutional, the technological, the social and the organizational proximity. The analysis is implemented for an ample dataset referring to 287 regions in 29 countries (EU27 plus Norway, Switzerland) for the last decade. Results show that human capital and R&D are clearly essential for innovative activity but with an impact which is much higher for the former factor. As for the proximity and network effects, we find that geography is important but less than technological and cognitive proximity. Social and organizational networks are also relevant but their role is more modest. Finally, most of these proximities prove to have a complementary role in shaping innovative activity across regions in Europe.
    Keywords: knowledge production; technological spillover; proximity; networks
    JEL: O31 C31 O18 R12 O52
    Date: 2011
  4. By: Andrea Fracasso; Giuseppe Vittucci Marzetti
    Abstract: In a much cited paper, Wolfgang Keller (Are international R&D spillovers trade-related? Analyzing spillovers among randomly matched trade partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D spillovers are global and trade-unrelated. In following works, Keller revisits his position and maintains that spillovers are localized because the tacit nature of knowledge favors the direct interaction among agents. Whether the international R&D spillovers are global and trade-related still remains a debated issue in the empirical literature. By adopting two empirical specifications that nest Keller’s models, we i) reject the hypothesis that international R&D spillovers are global and ii) show that these latter depend on both geographical distance and international trade.
    Keywords: International R&D spillovers, International technology diffusion,Localized knowledge spillovers, Total Factor Productivity
    JEL: C23 F01 O30 O47
    Date: 2011
  5. By: Hottenrott, Hanna; Thorwarth, Susanne
    Abstract: University research provides valuable inputs to industrial innovation. It is therefore not surprising that private sector firms increasingly seek direct access through funding public R&D. This development, however, spurred concerns about possible negative long-run effects on scientific performance. While previous research mainly focused on a potential crowding-out of scientific publications through commercialization activities such as patenting or the formation of spin-off companies, we study the effects of direct funding from industry on professors' publication and patenting efforts. Our analysis on a sample of 678 professors at 46 higher education institutions in Germany shows that a higher share of industry funding of a professor's research budget results in a lower publication outcome both in terms of quantity and quality in subsequent years. For patents, we find that industry funding increases their quality measured by patent citations. --
    Keywords: Scientific Productivity,Research Funding,Academic Patents,Technology Transfer
    JEL: O31 O32 O33
    Date: 2011
  6. By: Dick Johannes; Hussinger Katrin; Blumberg Boris; Hagedoorn John (METEOR)
    Abstract: A common phenomenon in entrepreneurship is that employees turn away from employmentto found their own businesses. Prior literature discusses the former employers’characteristics that influence the creation of entrepreneurial ventures. An investigation ofwhether these characteristics also affect the success of the spawned ventures is missing so far. This paper contributes to the literature by showing that entrepreneurial ventures spawned by well performing firms are financially more successful than ventures stemming from bad performing firms. This suggests that spawned entrepreneurs are able to exploit valuable knowledge from their previous employers which impacts their ventures’ performance positively. The analysis is based on a linked employee-employer dataset for the Netherlands for the period 1999-2004.
    Keywords: Strategy;
    Date: 2011
  7. By: Alessandra Colombelli; Marta Foddi; Raffaele Paci
    Abstract: Since the Lisbon agenda in 2000, Europe stated the goal to become the most advanced knowledge economy in the world relying specifically on the increase and strengthen of its human capital and technological endowments. However, given the presence of localized externalities in the knowledge accumulation process, this policy may produce distortive and unwanted consequences at the territorial level reinforcing the existing high inequalities among regions. Another crucial feature to be considered is the recent enlargement process of the European Union which has brought on stage new players characterized by a low average level of knowledge activity accompanied by a huge degree of internal territorial disparity. The aim of this paper is to identify the “knowledge regions” in Europe and to examine their main territorial features. To this aim we first build, for 287 regions belonging to 31 European countries, a comprehensive picture of the two variables - human capital and technological activity - which constitute the main pillars of the knowledge economy. We compute two synthetic indicators for human capital and technology and, on the basis of these two dimensions, we identify 74 knowledge regions, mainly located in the centre and north of Europe. This results are confirmed by a cluster analysis.
    Keywords: knowledge; human capital; technological activity; regions; Europe
    JEL: R11 J24 O30 O52
    Date: 2011
  8. By: John Van Reenen
    Abstract: John Van Reenen sketches the evolution of CEP research on the drivers of productivity growth - and its impact on policies to foster competition.
    Keywords: management, productivity, organization
    JEL: L2 M2 O32 O33
    Date: 2011–06
  9. By: Tomasz Brodzicki (Faculty of Economics, University of Gdansk)
    Abstract: The concept of industrial cluster has become one of the most prominent ones both in theoretical discussions, policy making and actual business. It is generally believed that under certain conditions, efficiently performing cluster through positive externalities can become an engine of regional development. Due to potential market imperfections public intervention is frequently required. The concept has gained significance in Eastern and Central European Countries including Poland. Sound cluster-based policy requires a detailed identification of dominant cluster as well as embryonic clusters. In the past few years at the central level of Poland and at the level of some of its provinces (eg. Pomerania, Mazovia, Opole, Silesia) cluster-mapping exercises were performed as part of an effort to modify/inform regional development strategies. Apart from several domestic studies an analysis by an international team for the European Commission for the whole area of Central and Eastern Europe was carried out. The present paper critically reviews the aforementioned studies identifying major methodological bottlenecks. It seems that more emphasis should be placed on the issue of co-location of both vertically related industrial sectors as well as horizontal agglomeration. Spatial autocorrelation should also be included. Appropriate level of sectoral as well as spatial disaggregation of data is of outmost importance.
    Keywords: industrial concentration, cluster, cluster-based policy, statistical cluster mapping
    JEL: B41 C81 R12 R30
    Date: 2010–08
  10. By: Jun Zhang
    Abstract: This paper contributes to the Evolutionary Economic Geography literature by employing the conceptualization of Ôrelated varietyÕ to compare the emerging internet industry in ChinaÕs two largest city-regions: Beijing and Shanghai. Official website registration records, Alexa internet traffic counts, venture capital investment data and information gathered through interviews with internet entrepreneurs were combined to develop the analysis. The findings confirm that the replication and diversification of related variety play a leading role in shaping the locational dynamics of an emerging industry. However, the localized nature of new firm formation should not be taken for granted as transnational entrepreneurship and venture capital are playing an increasingly salient role. The contrasting experience of internet evolution in these two Chinese city-regions also suggests that a regionÕs enduring political-institutional embeddedness significantly influences the generation and evolution of their related variety.
    Keywords: related variety, institutions, connectivity, Internet, China
    JEL: B25 B52 L25 L26 L52 L86 O18 O53 P25 R00 R11
    Date: 2011–06
  11. By: Harald Bathelt; Andrew Munro; Ben Spigel
    Abstract: This paper develops a perspective of regional re-bundling in overcoming economic crises. It does this by focusing on the effects of the recent global financial crisis on traditional manufacturing. We analyze the structure of innovation processes and their development over time in CanadaÕs Technology Triangle Ð a region known for university-related spin-off processes and successful modernization. What is less well-known is that this region has been strongly influenced by traditional manufacturing industries. We show that these industries have been well prepared to deal with the effects of the crisis due to ongoing innovation and diversification stimulated by prior economic crises.
    Keywords: CanadaÕs Technology Triangle, manufacturing sector, global financial crisis, re-bundling, innovation practices/strategies
    JEL: L16 L61 L62 O31 R11
    Date: 2011–06
  12. By: Phillips, Jon C.; Hays, Lauren L.
    Abstract: The American Quarter Horse is the most popular breed of horse in California, as well as nationwide. This breed has shaped agricultural history and has had a major impact on the agricultural economy because. The objective of this report is to provide strategic information about the U.S. quarter horse industry, with an emphasis on California. This report provides information on the following topics: statistics of the industry, quarter horse associations, trends in the industry, prevailing marketing practices, innovative/successful marketing practices, success factors for horse businesses, and characterization of related and supporting industries. The primary contribution of the report is a diagram and description of the horse industry supply chain. The varying levels of entry barriers and varying degrees of attractiveness to potential entrants are given for many types of businesses in the horse industry.
    Keywords: American Quarter Horse, associations, breeder, California, entry barriers, equine, horse industry, industry trends, livestock, marketing practices, registry, related and supporting industries, supply chain, success factors, trainer, Agribusiness, Livestock Production/Industries,
    Date: 2011–04–06
  13. By: Hottenrott, Hanna; Peters, Bettina
    Abstract: This study presents a novel empirical approach to identify financing constraints for innovation based on the concept of an ideal test as suggested by Hall (2008). Firms were offered a hypothetical payment and were asked to choose between alternatives of use. If they selected additional innovation projects, they must have had some unexploited investment opportunities that were not profitable using more costly external finance. We attribute constraints for innovation not only to lacking financing, but also to firms' innovative capability. Econometric results show that financial constraints do not depend on the availability of internal funds per se, but that they are driven by innovative capability. --
    Keywords: Innovation,financing constraints,innovative capability,multivariate probit models
    JEL: O31 O32 C35
    Date: 2011
  14. By: Marta Casanova (Dpto. Economía); Vicente Orts Ríos (Dpt. Economia)
    Abstract: In this paper, we use a distance-based method, specifically the Ripley’s K function, to evaluate the spatial location patterns of Spanish manufacturing establishments and to assess the different tendencies to cluster in each sector or subsector relative to the whole of manufacturing. Specifically, we analyse the role played by the size of establishments in determining the location patterns detected in each sector, and the co-localization between horizontally- and verticallylinked industries to assess the importance of the potential spillovers across industries. We apply this methodology to Spanish manufacturing industries at the two-digit and the four-digit levels. Considering four digits of disaggregation allows us to isolate the different behaviour in the spatialdistribution of each subsector as well as prevent the effects of compensation due to previous aggregation. En este trabajo se utiliza un método basado en la distancia, específicamente la función K de Ripley, para analizar los patrones de localización espacial de los establecimientos manufactureros españoles y evaluar las diferentes tendencias a concentrarse de cada sector o subsector en relación con el conjunto de la industria manufacturera. En concreto, se analiza el papel que desempeña el tamaño de los establecimientos en la determinación de los patrones de localización detectados en cada sector. Así mismo, se evalúa la importancia de los spillovers potenciales entre las diferentes industrias o subsectores mediante un análisis de la tendencia a la co-localización entre empresas de industrias relacionadas horizontal y verticalmente. Aplicamos esta metodología a las industrias manufactureras españolas con un nivel de desagregación de dos y cuatro dígitos CNAE. El hecho de considerar cuatro dígitos de desagregación nos permitedetectar las diferencias en el comportamiento de la distribución espacial de cada subsector, así como prevenir los efectos de compensación debidos a la agregación anterior.
    Keywords: localización espacial, método basado en la distancia, función K de Ripley, área poligonal, desagregación, co-localización, tamaño de establecimiento. spatial location, distance-based method, Ripley’s K function, polygonal boundary, disaggregation, co-localization, establishment size.
    JEL: C15 C40 C60 R12
    Date: 2011–06
  15. By: Alireza Abbasi; Jorn Altmann (Technology Management, Economics, and Policy, College of Engineering, Seoul National University); Liaquat Hossain
    Abstract: In this study, we develop a theoretical model based on social network theories and analytical methods for exploring collaboration (co-authorship) networks of scholars. We use measures from social network analysis (SNA) (i.e., normalized degree centrality, normalized closeness centrality, normalized betweenness centrality, normalized eigenvector centrality, average ties strength, and efficiency) for examining the effect of social networks on the (citation-based) performance of scholars in a given discipline (i.e., information systems). Results from our statistical analysis using a Poisson regression model suggest that research performance of scholars (g-index) is positively correlated with four SNA measures except for the normalized betweenness centrality and the normalized closeness centrality measures. Furthermore, it reveals that only normalized degree centrality, efficiency, and average ties strength have a positive significant influence on the g-index (as a performance measure). The normalized eigenvector centrality has a negative significant influence on the g-index. Based on these results, we can imply that scholars, who are connected to many distinct scholars, have a better citation-based performance (g-index) than scholars with fewer connections. Additionally, scholars with large average ties strengths (i.e., repeated co-authorships) show a better research performance than those with low tie strengths (e.g., single co-authorships with many different scholars). The results related to efficiency show that scholars, who maintain a strong co-authorship relationship to only one co-author of a group of linked co-authors, perform better than those researchers with many relationships to the same group of linked co-authors. The negative effect of the normalized eigenvector suggests that scholars should work with many students instead of other well-performing scholars. Consequently, we can state that the professional social network of researchers can be used to predict the future performance of researchers.
    Keywords: Collaboration, citation-based research performance, co-authorship networks, social network analysis measures, regression, correlation.
    JEL: C02 C13 C25 C43 C51 C52 D02 D85 H81 L25 M11 M12 O31 O33
    Date: 2011–06
  16. By: Tobias Scholl (EBS European Business School); Thomas Brenner (Department of Geography, Philipps University Marburg)
    Abstract: We present a new statistical method that describes the localization patterns of industries in a continuous space. The proposed method does not divide space into subunits whereby it is not affected by the Modifiable Areal Unit Problem (MAUP). Our method fulfils all five criteria for a spatial statistical test of localization proposed by Duranton and Overman (2005) and improves them with respect to the significance of its results. Additionally, our test allows inference to the localization of highly clustered firms. Furthermore, the algorithm is efficient in its computation, which eases the usage in research.
    Keywords: Spatial concenctration, localization, clusters, MAUP, distance-based measures
    JEL: C40 C60 R12
    Date: 2011–06
  17. By: Caliendo, Marco (IZA); Kritikos, Alexander S. (DIW Berlin)
    Abstract: What makes the entrepreneurial personality is the key question we seek to answer in the special issue of the Journal of Economic Psychology on "Personality and Entrepreneurship". The contributions are clustered around questions regarding the linkage between personality, socio-economic factors and entrepreneurial development. Results further explain the gender puzzle, while, at the same time, it is clear that stereotypes of what makes the ideal entrepreneur must be revisited. This conclusion is based on new insights into the effects that variables, such as risk tolerance, trust and reciprocity, the value for autonomy and also external role models, have on entrepreneurial decision making. On a more general note, it is clear that more informative longitudinal data sets at the individual level are needed in order to find conclusive answers. In an ideal world researchers would have access to data that includes personality characteristics and psychological traits, motivational factors and cognitive skills. In this respect the research community needs to find new ways to collect these data and make them available for entrepreneurship research.
    Keywords: trust, entrepreneurship, personality characteristics, risk aversion, autonomy
    JEL: D81 J23 L26 M13
    Date: 2011–06
  18. By: ASABA Shigeru
    Abstract: This study examined the determinants of management practices by using an interview survey on organizational and human resource management of Japanese firms. We found that the management practices at foreign-owned firms tend to be of high quality. This suggests that promoting foreign direct investment in Japan helps Japanese firms improve management quality. In addition, management quality tends to be higher commensurate with higher competition, larger firm size, and higher growth rate. Meanwhile, older firms and firms managed by the founder of the firm tend to be managed poorly on average. Moreover, behind the score of management practice, a factor analysis found three latent factors: change, monitoring, and evaluation. Examining the determinants of each latent factor, we found different determinants among the three factors. This finding suggests that we need to promote different determinants depending on which practices we aim to improve. Examining the determinants of management practices leads to an understanding of why management practices are different among firms, industries, and countries and, moreover, it contributes to exploring the essential question of why performance differences among firms persist. Therefore, it is expected that the survey on management practices used in this study will be conducted continuously in the future with a view toward contributing to internationally comparative studies on management practices and performance.
    Date: 2011–06
  19. By: Otsuka, Keijiro; Sonobe, Tetsushi
    Abstract: The need to construct an effective strategy for industrial development in low-income countries has been largely ignored by development economists because industrial policies have failed in many developing countries. This does not imply, however, that industrial development cannot be promoted. This paper attempts to synthesize the conventional wisdom in development economics with recent advancements in various fields of economics (such as theories of endogenous growth and agglomeration economies) to provide a useful framework to design a strategy for industrial development, which consists of investments in managerial human capital followed by the provision of credit and the construction of industrial zones.
    Keywords: Economic Theory&Research,Labor Policies,ICT Policy and Strategies,Access to Finance,Political Economy
    Date: 2011–06–01

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