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on Economics of Strategic Management |
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Issue of 2011‒09‒16
twenty-two papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Barge-Gil, Andrés |
| Abstract: | Scholarly interest in the relationship between open strategies and innovation performance has been unfailing, and in recent years has even increased. The present paper focuses on inbound open strategies and reviews various approaches (transaction costs, competences, open innovation) dealing with firms´ decisions about these strategies. The different approaches result in different conclusions about the optimum level of openness. The different approaches are tested empirically taking account of the different degrees of openness (closed, semiopen, open, ultraopen) and their effects on sales of new–to-the-market products, and using a panel of Spanish firms from a CIS-type survey for 2004-2008. Our results show that closed and semiopen strategies are the most common among Spanish firms and that open strategies produce the best performance, while semiopen strategies are more effective than closed ones. These results hold across different subsamples based on firm size and industry, and are robust to different ways of defining the indicators and to different estimation methods. |
| Keywords: | open innovation strategies; collaboration; transaction costs; competences; CIS surveys; R&D; technology policy |
| JEL: | L2 D2 O3 |
| Date: | 2011–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31298&r=cse |
| By: | Petra Zloczysti |
| Abstract: | Using data for 14 OECD countries and 13 sectors for the period 1985-2004, this paper analyzes the significance of the linkage between channels of international knowledge spillovers and total factor productivity. We distinguish between domestic and international intra- and inter-sectoral spillover sources. Patent applications are exploited to estimate the contribution of technology transfer to industrial productivity. To account for technological distance, we weight foreign knowledge by bilateral technological proximity. By adopting estimation methods reflecting recent developments in the treatment of non-stationary panel data econometrics, we find that industry-specific knowledge both nationally and internationally mainly drives productivity in the respective sector. |
| Keywords: | Knowledge Spillover, Total Factor Productivity, Manufacturing, Panel Cointegration |
| JEL: | C23 L60 O30 O40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1150&r=cse |
| By: | Gao, Yanyan; Liu, Zhibiao; Song, Shunfeng; Zheng, Jianghuai |
| Abstract: | Using firm-level data from a 2009 survey conducted in Suzhou City, Jiangsu Province, China, this paper examines impacts of technology capacity and value-chain position on firm’s product competitiveness. Both technology capacity and product competitiveness are self-assessed relative to other firms and products in the same industry. The position of value-chain is measured relative to if a firm is an original brand manufacturer or not. Our empirical results show that competitiveness rises with firm’s technology capacity and its position in the global value chain. This finding is consistent with the theoretical prediction. The paper also investigates determinants of technology capacity and value-chain position, including firm’s size, R&D spending, location dummies, education level of technical and management personnel, wages of technical and management personnel, and enterprise ownership. Bootstrapping, Probit, and linear probability regression models are employed. |
| Keywords: | Technology Capacity; Original Brand Manufacturer; Competitiveness; Global Value Chain; Bootstrapping |
| JEL: | F23 L10 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33126&r=cse |
| By: | Azagra-Caro, Joaquín M.; Pardo, Rafael; Rama, Ruth |
| Abstract: | The use of universities and public research organisations as a source of information is increasing as firms adopt search strategies based on current models of information use. The theory of this paper is that in order to predict companies? perceptions of the usefulness of such knowledge, their practical experience in technological innovation becomes a determinant, not directly but by enabling certain internal changes which result in firms finding public research more useful. Using a sample of 1,031 Spanish manufacturing firms, we give an illustration of how practical experience in technological innovation produces encounters between three of their choices (to increase in size, the skills of the workforce and the abandonment of strategic innovation) and public research. In reality, the lack of such practical experience produces a ?disencounter? in which only monopolistic firms can take full advantage of public research. Some managerial and policy implications are discussed below. |
| Keywords: | Public-private R&D interaction; Spain |
| JEL: | O32 |
| Date: | 2011–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201106&r=cse |
| By: | Marcel Fafchamps; Mans Soderbom |
| Abstract: | We document empirical patterns of correlation in the adoption of technological innovation and contractural practices among manfacturing firms in Ethiopia and Sudan. The analysis is based upon network data indicating whether any two firms in our sample do business with each other, whether they buy inputs from a common supplier and whether they sell output to a common client. We only find limited support for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. For certain practices, adoption decisions appear instead to be local strategic substitutes: if ones firms in a given location is using a certain practice, others nearby are less likely to do so. These results appear out of tune with policy discussion of how the economic performance of African's manufcaturing sector can be improved. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2011-08&r=cse |
| By: | Stocchetti, Andrea; Scattola, Elena |
| Abstract: | The article presents a retrospective review on key-issues about how the management discipline evolved up to the current view about supply-chain management (SCM) in industrial production. Specifically, the article resumes: a) the reasons that led to the transition from the traditional procurement policies to the SCM approach, b) the variables involved in the process of defining SCM relations and c) the key managerial principles underlying SCM policies and strategies. In the manufacturing industry the problem of organizing and managing firm’s relationships with supplier has recently become of an unprecedented complexity. The evolution of production systems started around the ‘80s, with the shift from the “flexible” paradigm to the “lean” one, has increased dramatically the intricacy of product and process architecture.. At the same time, the opportunities brought by the technological hybridization of products (that is: opportunities deriving from incorporating complementary technologies within products so to enhance its features and performance) gained a critical role as a competitive advantage. In our view supply chain management, as well as others managerial areas, has undergone a profound change; indeed, in the last 30 years the evolution of the industrial competitive environment has deeply modified the reference framework of supply-chain relationships even in common procurement and/or routine contracts. In the attempt to give an adequate response to changes in the competitive environment, supply policies evolve to become articulate relational strategies based on the strategic assessments of the role and the relevance of the various suppliers. The traditional approach to procurement management is combined with a perspective of value creation, a perspective that goes beyond the traditional “make-or-buy” criteria, since it introduces principles for the assessment of the strategic capability of the suppliers to create value for customer rather than to be able to fulfill its task for the firm. In such a view, firms operating in the same value-chain coordinate their strategies with a view to increase the overall value rather than compete for the allocation of the existing one. Firms’ network of suppliers and the relational capabilities assume a critical role in order to coordinate the value creation processes within the chain. |
| Keywords: | Supply chain management; industrial management |
| JEL: | M11 L1 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33094&r=cse |
| By: | Hu, Zhining; Zheng, Jianghuai; Wang, Jialing |
| Abstract: | This article investigates the effect of industrial linkages on firm performance in Chinese development zones, using Jiangsu Province as a case study. An ordered response model based on the dependent variable being ordinal was developed. The empirical results reveal an insignificant relationship between industrial linkages and firm performance. Our interpretation of this finding mainly lies with the global and domestic challenges that have changed the way participating firms operate and organize in the development zones of Jiangsu. When many other economic factors take precedence over industrial linkages in driving superior firm performance, firms feel it less important to get closer to their suppliers or customers, therefore weakening the impact of industrial linkages. Although this article primarily focuses on development zones in Jiangsu Province, the findings and discussion will provide insights for other development zones in China that may be, reviewing their development strategies because most of them have similar development problems. |
| Keywords: | Industrial linkages; Development zones |
| JEL: | F23 L23 O20 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33127&r=cse |
| By: | Jakub Growiec; Fabio Pammolli; Massimo Riccaboni |
| Abstract: | We provide a detailed analysis of a model of innovation and corporate dy- namics that encompasses the Gibrat’s Law of Proportionate Effect and the Simon growth process as particular instances. The predictions of the model are derived in terms of (i) firm size distribution, (ii) the distribution of firm growth rates, and (iii-iv) the relationships between firm size and the mean and variance of firm growth rates. We test the model against data from the worldwide pharmaceutical industry and find its predictions to be in good agreement with empirical evidence on all four dimensions. |
| Keywords: | Business firm size; firm growth distribution; GibratÕ Law; Pareto distribution; lognormal distribution, size-variance relationship. |
| JEL: | C49 L11 L25 L65 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:trt:disawp:1017&r=cse |
| By: | Patrick Plane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Marie-Ange Veganzones (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Tidiane Kinda (FMI - FMI - FMI) |
| Abstract: | Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context. |
| Keywords: | Manufacturing firms;productivity;investment climate;developing countries;Middle East and North Africa (MENA) |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00617575&r=cse |
| By: | Patrick Plane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Marie-Ange Veganzones (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Tidiane Kinda (FMI - FMI) |
| Abstract: | Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context. |
| Keywords: | Manufacturing firms;productivity;investment climate;developing countries;Middle East and North Africa (MENA) |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00617574&r=cse |
| By: | Hüschelrath, Kai; Müller, Kathrin |
| Abstract: | The article studies the evolution of the U.S airline industry from 1995 to 2009 using T-100 traffic data and DB1B fare data from the U.S. Department of Transportation. Based on a differentiation in market size and major players, entry and exit, concentration, fares, service, costs and profits, the article provides a fresh look on recent developments in the structure, conduct and performance of the domestic U.S. airline industry in light of both the substantial growth of low cost carriers and severe internal and external shocks such as merger and bankruptcy activity or the recent recession. Unlike previous studies, a consistent split of the analysis in network carriers and low cost carriers is introduced. In general, we find that the competitive interaction between network carriers and low cost carriers increased substantially throughout the last decade and must be considered as the main driver of competition in the domestic U.S. airline industry. -- |
| Keywords: | Airline industry,deregulation,network carrier,low cost carrier |
| JEL: | L40 L93 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11051&r=cse |
| By: | Farole, Thomas; Winkler, Deborah |
| Abstract: | Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, while regional determinants and agglomeration economies play a larger role in core regions. The findings point to the presence of congestion costs in the core, and suggest that policy interventions to target export participation are likely to have a greater impact if they are focused on core regions over non-core regions, where firm-specific factors predominate. Moreover, the importance of export spillovers and localization economies highlights the potential value of efforts to remove barriers to natural agglomeration both in core and non-core regions, for example through investments in infrastructure, the provision of social services, and regional integration arrangements. |
| Keywords: | Regional Economic Development,Microfinance,E-Business,Banks&Banking Reform,Private Participation in Infrastructure |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5780&r=cse |
| By: | Tarun Kabiraj (Indian Statistical Institute); Uday Bhanu Sinha (Department of Economics, Delhi School of Economics, Delhi, India) |
| Abstract: | We analyze the outsourcing decision of a firm for a key input of a final good production to an independent input supplier even though the firm has an option of producing that key input in-house at a lower cost with a better technology. We find that for smaller technology gap with the independent input supplier the firm would outsource and for larger technology gap it would produce the input in-house for itself and for its rivals. The outsourcing occurs in order to take advantage of its sale of superior technology to the independent input supplier at a high payment although it involves a high price for the input to be acquired from the monopoly input supplier. Though the firm gains from strategic outsourcing, consumers’ welfare as well as social welfare goes down. |
| Keywords: | outsourcing; technology transfer; vertical structure; competition; welfare |
| JEL: | D43 L22 L23 L24 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:203&r=cse |
| By: | Czarnitzki, Dirk; Lopes Bento, Cindy |
| Abstract: | Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding. -- |
| Keywords: | Subsidies,Innovation,Policy Evaluation,Treatment Effects,Nonparametric matching estimation |
| JEL: | C14 H50 O38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11053&r=cse |
| By: | Christian Cordes; Peter J. Richerson; Georg Schwesinger |
| Abstract: | In infant industries, a great share of new market opportunities is depleted by firms that spinoff from incumbents. A model emphasizing the relation between incumbents' evolving corporate cultures and the generation of spinoffs explains this regularity in industry evolution. Organizations reach a critical size that entails the collapse of a cooperative culture and triggers the exodus of personnel founding own firms. Thereby, organizations with a cooperative culture active in a dynamic business environment provide ideal training grounds for potential founders. We relate our findings to empirical evidence on developmental patterns in industries, such as genealogies and performance of spinoffs. |
| Keywords: | Spinoff Formation, Critical Firm Size, Firm Performance, Industry Evolution, Corporate Culture Length 23 pages |
| JEL: | C61 D21 L25 L26 M13 M14 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2011-11&r=cse |
| By: | Ridha Nouira (UREP - Université de Sfax - Université de Sfax); Patrick Plane (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); K. Sekkat (Université de Brussels - Université de Brussels) |
| Abstract: | Recent literature suggests that a proactive exchange rate policy in accordance with price incentives (i.e. undervaluation) can foster manufactured exports and growth. This paper is built on these recent developments and investigates, using a sample of 52 developing countries, whether such a proactive exchange rate policy is adopted. The results show that during the period 1991-2005 a number of countries has used undervaluation to foster the price competitiveness of manufactured exports. |
| Keywords: | Exchange rate;Misalignment;Undervaluation;Exports diversification |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00617573&r=cse |
| By: | Farid MAKHLOUF; Mazhar MUGHAL |
| Abstract: | Remittances, Dutch Disease, and Competitiveness - A Bayesian Analysis |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:tac:wpaper:2011-2012_1&r=cse |
| By: | Lazaric, Nathalie; Mérindol, Valérie; Rochhia, Sylvie |
| Abstract: | Defence innovation systems are structured around two main groups of players that interact in the development of complex programmes: the state (the client and the government agency) and the systems integrators. Technological and institutional changes since the 1990s have affected the division of labour and knowledge in the industry. In this paper, we show the origins of these changes based on information derived from 45 qualitative interviews conducted between 2000 and 2008, which demonstrate the new capabilities that have been created within the national innovation system (NIS). We explain how the role and the capabilities of the French Government Agency for Defence (Direction Générale de l'Armement—DGA) have developed from “project architect” to “project manager”. These new capabilities create new interactions in the French defence innovation system and new roles for the DGA. |
| Keywords: | Defence; Institutional change; National innovation system; co-evolution; Government agency; Knowledge; Capabilities; Technological systems; |
| JEL: | O33 O32 O31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/4998&r=cse |
| By: | Joaquín Coleff |
| Abstract: | In this paper, we seek to understand how a multi-product multi-market firm (for example, a multinational firm) designs its organizational structure and compensation scheme when its profitability is conditioned by how market information flows within the company. By modifying its organizational structure–centralizing or decentralizing decision making–and changing the weights of its compensation scheme, the firm can shape how information flows and is represented, changing the firm’s profitability. We find that, when being multi-product (having to allocate a scarce resource between markets), the headquarters links the organizational design of decision rights between different product markets. The headquarters decentralizes decision rights in products with higher returns to product differentiation while it centralizes decision rights in products with lower returns to product differentiation. As centralization is complementary with product standardization and decentralization is complementary with product differentiation, the organizational design conditions the firm’s market policy. The relation among product’s decision rights remains even when the headquarters cannot control how local managers allocate resources in their own local divisions. Our results are robust to different generalizations. Our paper therefore, contributes to the literature on organizational design by analyzing the case of multi-product multi-market firms. |
| Keywords: | : Multinational, Multi-product, Organization Design, Resource Scarcity, Cheap Talk |
| JEL: | D2 D8 L2 G34 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1122&r=cse |
| By: | Michele Boldrin; Juan C Allamand; David K Levine; Carmine Ornaghi |
| Date: | 2011–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:786969000000000232&r=cse |
| By: | Olivier Glassey (IDHEAP - Institut de hautes études en administration publique - Swiss Public Administration Network); Jean-Henry Morin (Centre Universitaire d'Informatique - Université de Genève); Patrick Genoud (Observatoire technologique - Etat de Genève); Giorgio Pauletto (Observatoire technologique - Etat de Genève) |
| Abstract: | This paper examines how design thinking and serious games approaches can be used to support participation through the analysis of three case studies. Indeed we will analyze these approaches in three different contexts: (i) a state-owned multi-utilities company; (ii) a political party; (iii) an information system strategic committee. Our analysis framework relies on the concepts of "perceived usefulness" and "perceived ease of use" and we will use it to discuss the lessons learned. Our main finding is that these approaches really contributing in making complex and abstract matters more "tangible" and thus understandable. |
| Keywords: | participation; design thinking; serious games; case study; perceived usefulness |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00616740&r=cse |
| By: | Stephen Howes (Development Policy Centre, Crawford School of Economics and Government, The Australian National University) |
| Abstract: | This paper provides an overview of issues relating to aid effectiveness. It argues that it is impossible to give a definitive answer to the question of whether aid is effective, and that it is more useful to ask what can be done to make aid more effective. The paper then groups the various determinants of aid effectiveness, as well as strategies to improve effectiveness, underthree headings: the performance of the recipient (developing) country government; the performance of the aid agency of the donor (developed) country; and the interaction between the two. This provides, it is argued, a useful framework within which to understand different and competing arguments about how to improve aid effectiveness. |
| Keywords: | aid, aid effectiveness |
| JEL: | A14 F35 O19 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:devpol:1101&r=cse |