nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒10‒09
fourteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Size, competition, and innovative activities: a developing world perspective By Waheed, Abdul
  2. Complementarity between in-house R&D and technology purchasing: evidence from Chinese manufacturing firms By Hou, Jun; Mohnen, Pierre
  3. Business models as systemic instruments for the evolution of traditional districts? By Cocchi, Andrea
  4. Intellectual Property Rights and South-North Formation of Global Innovation Networks By Maria Comune; Alireza Naghavi; Giovanni Prarolo
  5. Innovation and Corporate Dynamics: A Theoretical Framework By Jakub Growiec; Fabio Pammolli; Massimo Riccaboni
  6. The internationalization of R&D By Hall, Bronwyn H.
  7. The social network's influences on individual performance By Piela, Jonas
  8. Ownership Structure of Firms and Their Export Performance: Evidence from Korea By Sangho KIM; Donghyun PARK
  9. The RBV in International Business Studies: A bibliometric study of Barney?s (1991) contribution to the field By Manuel Portugal Ferreira; Fernando A. Ribeiro Serra; Benny Kramer Costa
  10. Critical considerations on defining and measuring performance in public organizations By Cioclea, Alexandra Ema
  11. The Implementation of the Korean Green Growth Strategy in Urban Areas By Lamia Kamal-Chaoui; Fabio Grazi; Jongwan Joo; Marissa Plouin
  12. A spatial model based on the endogenous growth theory for Portugal. Another analysis By Martinho, Vítor João Pereira Domingues
  13. Corporate Acquisitions, Diversification, and the Firm’s Lifecycle By Asli M. Arikan; René M. Stulz
  14. Human Capital and Organizational Performance: Evidence from the Healthcare Sector By Ann P. Bartel; Ciaran S. Phibbs; Nancy Beaulieu; Patricia Stone

  1. By: Waheed, Abdul (UNU-MERIT)
    Abstract: The impact of size and competition on firm-level innovative activities has obtained considerable attention in developed countries, but the focus is still lacking in developing world. This paper is an attempt to contribute in this direction by including 14 Latin American countries, and by using Enterprise Survey data of the World Bank. We consider both input and output innovation to observe the influence of firm size and of market concentration on innovative activities, and to interrogate the differences in influences of innovation determinants in different size classes and competition statuses. Our analysis reveals that employment increases the likelihood of R&D and product innovation, and its influence on R&D expenditures is positive but at less than proportionate rate. We find that product market competition increases the probability of both R&D decision and innovation output, but it has no influence on R&D intensity. We observe no relationship between R&D expenditures per employee and product innovation. Country and industry differences also contribute substantially towards firm-level R&D activities and product innovation. Moreover, large or small firms do no tend to be advantageous for employment and competition in order to influence R&D activities; however, for product innovation, competition is a more significant stimulus for large firms compared to small ones. Our results suggest that firms' R&D productivity is independent of size classes and competition environments. All of the determinants (of innovation) are jointly observed to have different effects, for large and small firms, as explanatory factors of both R&D intensity and product innovation, and for different competition environments only for product innovation.
    Keywords: R&D, Product innovation, Firm size, market competition
    JEL: L11 L12 L13 O32
    Date: 2011
  2. By: Hou, Jun (UNU-MERIT); Mohnen, Pierre (UNU-MERIT, Maastricht University)
    Abstract: In order to catch up with the technological frontier, firms, especially in developing countries, try to acquire technological advancement through internal R&D efforts as well as through external technology sourcing activities. This study tests the existence of a complementarity between in-house R&D and external technology acquisition in Chinese manufacturing firms. We show that the two sources of technological upgrading are complementary in stimulating product innovation across small and medium size manufacturing firms in China, but not in generating process innovation nor in achieving higher levels of labor productivity.
    Keywords: R&D, technology purchasing, complementarity, China, manufacturing
    JEL: O33
    Date: 2011
  3. By: Cocchi, Andrea
    Abstract: This paper aims to explore the potential role of Innovation Intermediaries in the evolution of a traditional cluster toward a service-oriented perspective. In particular, we will highlight the generative function of business models, here as market devices, in stimulating the co- evolution of Intermediary and target firms’ strategies.
    Keywords: Business Models; Innovation Intermediaries; Entrepreneurship; Manufacturing; Systemic Instruments
    JEL: A12 O33 L26 D83 L64
    Date: 2011
  4. By: Maria Comune (University of Siena and Fondazione Eni Enrico Mattei); Alireza Naghavi (University of Bologna and Fondazione Eni Enrico Mattei); Giovanni Prarolo (University of Bologna and Fondazione Eni Enrico Mattei)
    Abstract: With the rise of the knowledge economy, delivering sound innovation policies requires a thorough understanding of how knowledge is produced and diffused. This paper takes a step to analyze a new form of globalization, the so-called system of Global Innovation Networks (GINs), to shed light on how the protection of intellectual property rights (IPRs) influences their creation and development. We focus on the role of IPR protection in fostering international innovative activities in emerging economies (South), such as China and India, and more generally, how IPRs affect the development of GINs between newly industrialized countries and OECD countries. Using both survey-based firm-level and country-level global data, we find IPRs to be an important determinant of participation in GINS from a Southern perspective. We find IPR protection at home and its harmonization across county pairs foster South-North formation of GINs. We also find that a stringent regime in the destination country discourages foreign international innovative activities that originate in NICs. Both levels of our analysis confirm the ICT industry, particularly the hardware segment, to rely on IPRs when engaging in the international outsourcing and offshoring of innovation or in patenting activities abroad.
    Keywords: Gravity Model, Information Communication Technology, Innovation, Intellectual Property Rights, International collaborations, Networks
    JEL: D23 F53 O34
    Date: 2011–07
  5. By: Jakub Growiec; Fabio Pammolli; Massimo Riccaboni
    Abstract: We provide a detailed analysis of a model of innovation and corporate dynamics 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; Gibrat's Law; Pareto distribution; lognormal distribution, size-variance relationship.
    JEL: C49 L11 L25 L65
    Date: 2011–08
  6. By: Hall, Bronwyn H. (UNU-MERIT, Maastricht University, and UC Berkeley)
    Abstract: This paper surveys what we know about the internationalization of business R&D spending. I examine three specific questions about the global changes in R&D activity: First, what is the evidence that R&D is becoming more internationalized (more footloose)? Second, what are the factors that influence the choice of location for R&D? The third question asks how this is changing over time. The paper concludes with a discussion of the implications of this research and the trends in business R&D location for Canada.
    Keywords: business R&D, FDI, globalization, Canada
    JEL: F23 O32
    Date: 2011
  7. By: Piela, Jonas
    Abstract: --
    Date: 2011
  8. By: Sangho KIM (Department of International Trade, Honam University, Gwangju 506-714, KOREA); Donghyun PARK (Economics and Research Department, Asian Development Bank, 6 ADB Avenue, Mandaluyong City, Metro Manila, PHILIPPINES 1550)
    Abstract: The central objective of our paper is to empirically examine the relationship between the ownership structure of firms and their export performance using data from Korea. Due to growing globalization, export performance has become a highly influential determinant of firm performance. While a large and growing empirical literature investigates the relationship between the ownership structure and overall performance of firms, there are almost no studies which delve into the issue of whether the concentration of ownership has a positive or negative effect on export performance. The primary contribution of our study is to help remedy this serious gap in the empirical literature on ownership and performance. Our empirical results indicate that firms with more concentrated ownership are more likely to be exporters and export more.
    Keywords: Exports, ownership structure, logit analysis, Tobit regression, Korea
    JEL: F10 G30 D80
    Date: 2011–01
  9. By: Manuel Portugal Ferreira (Instituto Politécnico de Leiria); Fernando A. Ribeiro Serra (HSM Educação); Benny Kramer Costa (Universidade Nove de Julho e Universidade de São Paulo)
    Abstract: Jay Barney?s contribution to the current status of the Resource-Based View (RBV) is well accepted, in particular his 1991 article on ?Firm resources and sustained competitive advantage? has been acknowledged as one of the most significant contributions to developing the RBV. The RBV has since evolved to become one of the central theoretical perspectives in international business studies and research, and several other business disciplines. In this paper we examine the impact of Barney?s (1991) work on firms? resources for International Business research over the past twenty years. Methodologically we do a bibliometric study of the articles published in the leading IB journal - Journal of International Business Studies (JIBS), from 1991 to 2010, examining citations, co-citations, networks of co-authorship and major themes. Our analyses show that the RBV has been having an important impact on the majority of IB research themes.
    JEL: M0 M1
    Date: 2011–09–26
  10. By: Cioclea, Alexandra Ema
    Abstract: Performance evaluation plays a central role in improving public service quality and increasing efficiency and accountability in the public sector. New Public Management recommends performance evaluation as a tool for rationalizing public budgeting, promoting better reporting systems and developing internal diagnosis systems. This paper aims to analyze the characteristics of performance evaluation and to highlight its influences in public organizations. The study is based on review and analysis of academic research, government documents and personal perspectives. The paper argues that managerial practices and tools for defining and evaluating performance can be used for cultivating the “achievement culture” in public sector organizations.
    Keywords: Public management; performance; evaluation; indicators
    JEL: D73 H11
    Date: 2011–09–19
  11. By: Lamia Kamal-Chaoui; Fabio Grazi; Jongwan Joo; Marissa Plouin
    Abstract: This report on the Korean Strategy for Green Growth and its implementation in urban areas assesses the contributions of sub-national governments to Korea's National Strategy for Green Growth and identifies the main challenges for effective implementation at the local level. Korea's economy, heavily reliant on foreign exports, was hard hit by the recent global financial crisis. Since the 1970s, Korea has become one of the most energy-intensive economies in the OECD area, thanks to higher living standards, rapid urbanisation and an expanding industrial sector. As a result, the country's greenhouse gas emissions almost doubled between 1990 and 2005, registering the highest growth rate in the OECD area. It is in this context of rapid urbanisation and unprecedented resource consumption and environmental pressures that the report focuses on the role of urban areas within Korea's National Strategy for Green Growth. The effectiveness of Korea's green growth agenda, which has been driven by a central government vision and strategy, will largely hinge on the contribution of urban areas toward more sustainable, greener growth. Through the lens of a multilevel governance framework, an assessment of green growth policies in Korean cities helps to identify concrete strategies for delivering a coherent policy message and improving governance across all levels of government, with particular recommendations in terms of policy, funding, technical capacity and information sharing.
    Keywords: sustainable development, development, government policy, planning, global warming, regional, regional economics, urban sustainability, territorial, cities, urban, green growth, climate
    JEL: Q2 Q3 Q4 Q5 R1 R4 R5
    Date: 2011–07
  12. By: Martinho, Vítor João Pereira Domingues
    Abstract: We built a model analyzing, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002. Taking into account the estimation results, it is stated once again that the indications of convergence are greater in industry, and it can be seen that spatial spillover effects, spatial lag and spatial error, do not condition the convergence of productivity in the various economic sectors of Portuguese region in the period under consideration. In contrast the human capital condition the productivity convergence.
    Keywords: endogenous growth theory; spatial econometrics; Portuguese Regions
    JEL: O18 C20 C50 R11
    Date: 2011
  13. By: Asli M. Arikan; René M. Stulz
    Abstract: Lifecycle theories of mergers and diversification predict that firms make acquisitions and diversify when their internal growth opportunities become exhausted. Free cash flow theories make similar predictions. In contrast to these theories, we find that the acquisition rate of firms (defined as the number of acquisitions in an IPO cohort-year divided by the number of firms in that cohort-year) follows a u-shape through their lifecycle as public firms, with young and mature firms being equally acquisitive but more so than middle-aged firms. Firms that go public during the merger/IPO wave of the 1990s are significantly more acquisitive early in their public life than firms that go public at other times. Young public firms have a lower acquisition rate of public firms than mature firms, but the opposite is true for acquisitions of private firms and subsidiaries. Strikingly, firms diversify early in their life and there is a 41% chance that a firm’s first acquisition is a diversifying acquisition. The stock market reacts more favorably to acquisitions by young firms than to acquisitions by mature firms except for acquisitions of public firms paid for with stock. There is no evidence that the market reacts more adversely to diversifying acquisitions by young firms than to other acquisitions.
    JEL: G3
    Date: 2011–09
  14. By: Ann P. Bartel; Ciaran S. Phibbs; Nancy Beaulieu; Patricia Stone
    Abstract: This paper contributes to the literature on the relationship between human capital and organizational performance. We use detailed longitudinal monthly data on nursing units in the Veterans Administration hospital system to identify how the human capital (general, hospital-specific and unit or team-specific) of the nursing team on the unit affects patients' outcomes. Since we use monthly, not annual, data, we are able to avoid the omitted variable bias and endogeneity bias that could result when annual data are used. Nurse staffing levels, general human capital, and unit-specific human capital have positive and significant effects on patient outcomes while the use of contract nurses, who have less specific capital than regular staff nurses, negatively impacts patient outcomes. Policies that would increase the specific human capital of the nursing staff are found to be cost-effective.
    JEL: I11 I12 J24
    Date: 2011–09

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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