nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒08‒29
thirteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Metropolitan Regions: Preconditions and Strategies for Growth and Development in the Global Economy By Klaesson, Johan; Johansson, Börje; Karlsson, Charlie
  2. Working Paper 10-11 - Estimation of inter-industry domestic and international R&D stocks for Belgium By Bernadette Biatour
  3. Ethnic Innovation and U.S. Multinational Firm Activity By C. Fritz Foley; William R. Kerr
  4. Temporal structure of firm growth and the impact of R&D By Schimke, Antje; Brenner, Thomas
  5. From Tradition to Modernity: Economic Growth in a Small World By Lindner, Ines; Strulik, Holger
  6. Implications of Intra-Family and External Ownership Transfer Of Family Firms: Short Term and Long Term Performance By Wennberg, Karl; Wiklund, Johan; Hellerstedt, Karin; Nordqvist, Mattias
  7. Institution-Driven Comparative Advantage, Complex Goods and Organizational Choice By Ferguson, Shon; Formai, Sara
  8. Measuring regional environmental efficiency: A directional distance function approach By Halkos, George; Tzeremes, Nickolaos
  9. Appropriate policy measures to attract private capital in consideration of regional efficiency in using infrastructure and human capital By Schaffer, Axel
  10. Firm Turnover and Productivity Growth in Selected Canadian Services Industries, 2000 to 2007 By Baldwin, John R.; Lafrance, Amélie
  11. The revealed competitiveness of U.S. exports By Massimo Del Gatto; Filippo di Mauro; Joseph Gruber; Benjamin R. Mandel
  12. Information and disclosure in strategic trade policy: Revisited By Antoniou, Fabio; Tsakiris, Nikos
  13. Information Disclosure Strategies for Green Industries By Anbumozhi, Venkatachalam; Chotichanathawewong, Qwanruedee; Murugesh, Thirumalainambi

  1. By: Klaesson, Johan (Jönköping International Business School); Johansson, Börje (Jönköping International Business School and Royal Institute of Technology); Karlsson, Charlie (Jönköping International Business School, Blekinge Institute of Technology, Karlskrona and University West, Trollhättan)
    Abstract: The importance of metropolitan regions as national growth and development engines, and in particular as driving forces in national as well as global innovation processes is well recognized. This paper highlights the role of metropolitan regions in different contexts in order to lay a foundation for future research on metropolitan regions and their development. Specifically, the paper dwells on the role of metropolitan regions as nodes in national and international networks and as nodes of knowledge generation and innovation. Further, market potential as a concept describing the economic concentration to and the opportunities of making contacts within and between metropolitan regions is introduced. Additionally, the internal dynamic of metropolitan regions and the role of fast and slow processes is described. Lastly this paper illustrates how the input and output market potentials represent factors that adjust slowly and that play the same role for metropolitan development as metropolitan infrastructure.
    Keywords: Metropolitan regions; market potential; networks
    JEL: O18 O31 R11 R12
    Date: 2011–08–17
  2. By: Bernadette Biatour
    Abstract: This Working Paper deals with the estimation of direct, inter-industry domestic and international R&D stocks for 25 Belgian industries over the period 1995-2007. Two categories of stocks are constructed to estimate potential rent spillovers and knowledge spillovers. Domestic inter-industry and foreign R&D stocks are weighted with Supply and Use tables and bilateral trade data to estimate rent spillovers (through intermediate consumption) and with international patent citations matrices to estimate knowledge spillovers.
    Keywords: Domestic R&D stocks, International R&D stocks, Spillovers
    JEL: C81 O30
    Date: 2011–07–20
  3. By: C. Fritz Foley; William R. Kerr
    Abstract: This paper studies the impact that immigrant innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the share of a firm's innovation performed by inventors of a particular ethnicity are associated with increases in the share of that firm's affiliate activity in their native countries. Ethnic innovators also appear to facilitate the disintegration of innovative activity across borders and to allow U.S. multinationals to form new affiliates abroad without the support of local joint venture partners. Thus, this paper points out that immigration can enhance the competitiveness of multinational firms.
    JEL: F22 F23 J44 J61 O31 O32 O33 O57
    Date: 2011–08
  4. By: Schimke, Antje; Brenner, Thomas
    Abstract: This paper examines the time structure of the effects of R&D activities on firm growth. The main questions are whether R&D activities come together with firms' growth in the subsequent periods and how this relationship depends on other characteristics of the firms, such as size and industry. In addition, we study the relationship between R&D effects and the autocorrelation dynamics of firm growth. We use firm level data of 1000 European companies with details on R&D investments in 2003 to 2006. A regression approach is applied with a linear model taking into account R&D activities at points in time and autocorrelation dynamics of firm growth. We find that R&D has, on average, a positive effect on firm growth, but the effect and its temporal structure strongly depends on firm size and industry. --
    Keywords: Firm growth,R&D activities,firm size,industry,autocorrelation,time gap,temporal structure
    Date: 2011
  5. By: Lindner, Ines; Strulik, Holger
    Abstract: This paper introduces the Small World model (Watts and Strogatz, Nature, 1998) into the theory of economic growth and investigates how increasing economic integration affects firm size and effciency, norm enforcement, and aggregate economic performance. When economic integration is low and local connectivity is high, informal norms control entrepreneurial behavior and more integration mainly improves search for effcient investment opportunities. At a higher level of economic integration neighborhood enforcement deteriorates and formal institutions are needed to keep entrepreneurs in check. A gradual take-off to perpetual growth is explained by a feedback effect from investment to the formation of long-distance links and the diffusion of knowledge. If formal institutions are weak, however, the economy does not take off but stagnates at an intermediate income level. Structurally, the equilibrium of stagnation differs from balanced growth by the presence of relatively many small firms of low productivity.
    Keywords: modernization, economic integration, firm size, norms, networks, knowledge spillovers, growth
    JEL: O10 O40 L10 L14 Z13
    Date: 2011–08
  6. By: Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Wiklund, Johan (Whitman School of Management); Hellerstedt, Karin (Jönköping International Business School); Nordqvist, Mattias (Jönköping International Business School)
    Abstract: We contrast the performance consequences of intra-family vs. external ownership transfers. Investigating a sample of all private family firms in Sweden that went through ownership transfers during ten years, we find family firms transferred to external owners outperforming those transferred within the family, but that survival is higher among intra-family transfers. We attribute these performance differences to the long-term orientation of family firms passed on to the next generation and to the entrepreneurial willingness of acquirers to bear uncertainty. Based on distinct ownership transition routes and theoretical mechanisms explaining performance differences, we outline implications for family business and entrepreneurship research.
    Keywords: long-term orientation; succession; ownership transfer; family firms; performance
    JEL: L26 M13
    Date: 2011–08–17
  7. By: Ferguson, Shon (Research Institute of Industrial Economics (IFN)); Formai, Sara (Stockholm School of Economics)
    Abstract: The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine international trade patterns. We find that vertical integration lessens the impact of a country's ability to enforce contracts on the comparative advantage of complex goods. We also find that countries with good financial institutions export disproportionately more in sectors that produce complex goods and that have a high propensity for vertical integration. In doing so we use a new outcome-based measure of vertical integration propensity and we employ several empirical strategies: cross section, panel and event study analysis. Our results confirm the role of institutions as source of comparative advantage and suggest that this depends not only on the technological characteristics of the goods produced but also on the way firms are able to organize the production process.
    Keywords: International Trade; Comparative Advantage; Contract Enforcement; Financial Institutions; Vertical Integration
    JEL: D23 F10 F14 G20 G34 L22 L23
    Date: 2011–08–16
  8. By: Halkos, George; Tzeremes, Nickolaos
    Abstract: This paper by applying a directional distance function approach measures the UK regions’ municipality waste performance. In addition the paper constructs conditional stochastic kernels trying to determine nonparametrically the association of regions’ GDP per capita levels with their calculated regional environmental efficiencies. There are evidences of regional environmental inefficiencies for the majority of UK regions regardless their regional GDP per capita levels.
    Keywords: Regional environmental performance; Directional distance function; Conditional stochastic kernel
    JEL: C6 Q5 O13
    Date: 2011
  9. By: Schaffer, Axel
    Abstract: Regional economic policy disposes of two principal options to attract private capital, which in turn helps to safeguard employment and to foster regional growth. On the one hand, regional policy could seek to enhance a region's level of public capital (e.g. transport infrastructure), which as a consequence makes the region more attractive to private investors in general. On the other hand, private capital could be attracted in a more direct way by proposing specific innovation, SME or cluster programs. The success of both options is partly driven by the regions already existing level of region specific production factors and the ability to use these factors efficiently. Indirect approaches to attract private capital seem to be particularly promising for efficient regions (no matter of the absolute level of public capital). In contrast, inefficient regions shall benefit more from specific programs. However, for Germany the factual pattern seems to be the other way around, which could widening rather than closing the income gap among regions. --
    Date: 2011
  10. By: Baldwin, John R.; Lafrance, Amélie
    Abstract: The nature of the competitive process that causes a reallocation of market shares within an industry contributes to aggregate productivity growth. This paper extends our understanding of industry differences in the competitive process by examining firm turnover and productivity growth in various services industries in Canada and situating them relative to retailing and manufacturing, two industries which have been the focus of these studies in the past. Seven industries in the services sector, namely wholesale trade, transportation and warehousing, air transportation, truck transportation, broadcasting and telecommunications, business services and financial services, are examined.
    Keywords: Transportation, Retail and wholesale, Information and communications technology, Business performance and ownership, Economic accounts, Business, consumer and property services, Telecommunications industries, Entry, exit, mergers and growth, Television and radio industries, Productivity accounts, Professional, scientific and technical services
    Date: 2011–08–19
  11. By: Massimo Del Gatto; Filippo di Mauro; Joseph Gruber; Benjamin R. Mandel
    Abstract: The U.S. share of world merchandise exports has declined sharply over the last decade. Using data at the level of detailed industries, this paper analyzes the decline in U.S. share against the backdrop of alternative measures of the competitiveness of the U.S. economy. We document the following facts: (i) only a few industries contributed to the decline in any meaningful way, (ii) a large part of the drop was driven by the changing size of U.S. export industries and not the size of U.S. sales within those industries, (iii) in a gravity framework, the majority of the decline in the U.S. export share within industries was due to the declining U.S. share of world income, and (iv) in a computed structural measure of firm productivity, average U.S. export productivity has generally maintained its high level versus other countries over time. Overall, our analysis suggests that the dismal performance of the U.S. market share is not a sufficient statistic for competitiveness.
    Keywords: Exports - United States ; Industrial Productivity - United States ; Competition
    Date: 2011
  12. By: Antoniou, Fabio; Tsakiris, Nikos
    Abstract: In a recent paper, Creane and Miyagiwa (2008) show that the mode of competition (quantity or price) determines whether information sharing occurs between firms and governments within an international duopoly context in which the fims are located in different countries. In this paper, we show that the relative number of firms located in each country is also critical. In particular, we illustrate that with quantity competition and under the presence of demand and cost uncertainty information sharing does not occur when the number of firms in one country is higher than the number of firms in the other country. Moreover, we show that the informational prisoner's dilemma in the current context appears only when the number of firms across countries is equal.
    Keywords: Information; uncertainty; strategic trade; multiple firms
    JEL: F12 D83
    Date: 2011–08–22
  13. By: Anbumozhi, Venkatachalam (Asian Development Bank Institute); Chotichanathawewong, Qwanruedee (Asian Development Bank Institute); Murugesh, Thirumalainambi (Asian Development Bank Institute)
    Abstract: Environmental information disclosure strategies, which involve corporate attempts to increase the availability of information on pollution and emissions, can become a basis for a new wave of environmental protection policy that follows and has the potential to complement traditional command and control and market-based approaches. Although a growing body of literature and operational programs suggest that publicly disclosing the information can motivate improved corporate environmental performance, this phenomenon remains poorly understood. This paper reviews the economic and legitimacy theory behind information disclosure and analyses the current practice and programs adopted in industrialized and industrializing countries.
    Keywords: environmental information disclosure; toxic release inventory; government disclosure programs; materials accounting; sector facility indexing; pollution and emissions; environmental performance
    JEL: Q52 Q53 Q57 Q58
    Date: 2011–08–22

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