nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒11‒01
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Is knowledge exchange and combination always useful for innovation? By Ana Pérez-Luño; Ramón Valle-Cabrera
  2. Regional Institutional Environment and Its Impact on Intra-firm and Inter-organisational Innovation Networks: A Comparative Case Study in China and Switzerland By LIU, Ju
  3. Spatial econometrics of innovation : Recent contributions and research perspectives By Corinne Autant-Bernard
  4. Industrial districts as open learning systems: combining emergent and deliberate knowledge structures. By Fiorenza Belussi; Silvia Rita Sedita
  5. Are Environmental Innovations Embedded within High-Performance Organizational Changes? By Massimiliano Mazzanti; Davide Antonioli; Susanna Mancinelli
  6. High-growth cooperatives: Financial profile and key factors for competitiveness By Oriol Amat; Jordi Perramon
  7. The incidence of regional factors on "competitive performance” of universities By Fabio Pollice; Stefano De Rubertis; Enrico Ciavolino; Antonella Ricciardelli
  8. Competition and innovation-driven inclusive growth By Dutz, Mark A.; Kessides, Ioannis; O'Connell, Stephen; Willig, Robert D.
  9. Matthew effects and R&D subsidies: knowledge cumulability in high-tech and low-tech industries By Francesco Crespi; Cristiano Antonelli
  10. Policy coordination in systems of innovation: A structural-functional analysis of regional industry support in Sweden By Nilsson, Magnus; Moodysson, Jerker
  11. Personnel policies in the European firms: some evidence of the existing model(s) and the potential role of Corporate Universities. By Giulio Pedrini
  12. Education, Innovation and Labor: Obstacles to Egypt’s Competitiveness? By Malak Reda
  13. Cooperación científico-tecnológica para el desarrollo internacional: una apuesta desde la innovación By Ainoa Quiñones Montellano; Sergio Tezanos Vázquez
  14. From Differences in Export Behavior of Services and Manufacturing Firms in Slovenia By Tanja Grublješič; Jože Damijan;
  15. Human capital, technological spillovers and development across OECD countries By Rosa Bernardini Papalia; Silvia Bertarelli; Carlo Filippucci

  1. By: Ana Pérez-Luño (Department of Business Administration, Universidad Pablo de Olavide); Ramón Valle-Cabrera (Department of Business Administration, Universidad Pablo de Olavide)
    Abstract: Using the resource-based view, this paper aims to provide a better understanding of the effect of knowledge on innovation. With this general aim in mind, we relate knowledge’s nature (tacit vs. explicit) and the process (e.g., knowledge exchange and combination) to innovation. Using a sample of 105 marketing and 176 R&D managers from 105 innovative firms, we find a positive linear effect of tacit knowledge on innovation and a U-shaped relationship between knowledge exchange and combination and innovation. We also find an enhancing effect of tacit knowledge on the first part of the curvilinear relationship between knowledge exchange and combination and innovation.
    Keywords: : R&D, patents, knowledge, inventions
    Date: 2011–10
  2. By: LIU, Ju (CIRCLE, Lund University)
    Abstract: This paper investigates the structure of the intra-firm innovation networks (IntraINs) and the inter-organisational innovation networks (InterINs) of six leading manufacturing companies in the Great Zurich Area of Switzerland and the Sichuan province of China. It assesses the regional institutional environments (RIEs) of these two regions and explores their impact on the connectedness of both the IntraINs and InterINs of the case companies. It finds that RIE has no apparent impact on the case firms’ IntraINs. The impact of RIE on the InterINs is mainly manifested through its impact on the connections among the outside organisations rather than the direct connections between the focal firms and their outside collaborators. It is suggested that for helping big companies to build up innovation networks, public policy should be deployed to improve the RIE instead of directly bridging firms and the outside organisations which the firms can do it well by themselves.
    Keywords: Innovation network; Regional institutional environment; Intra-firm; Inter-organisational; Chin; Switzerland
    JEL: O30
    Date: 2011–10–21
  3. By: Corinne Autant-Bernard (Université de Lyon, Lyon, F-69007, France ; Université Jean Monnet, Saint-Etienne,F-42000, France ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France)
    Abstract: Preliminary introduced by Anselin, Varga and Acs (1997) spatial econometric tools are widely used in economic geography of innovation. Taking into account spatial autocorrelation and spatial heterogeneity of regional innovation, this paper analyzes how these techniques have improved the ability to quantify knowledge spillovers, to measure their spatial extent, and to explore the underlying mechanisms and especially the interactions between geographical and social distance. It is also argued that the recent developments of spatio-dynamic models opens new research lines to investigate the temporal dimension of both spatial knowledge flows and innovation networks, two issues that should rank high in the research agenda of the geography of innovation.
    Keywords: Geography of innovation, spatial correlation, spatio‐dynamic panels, innovation networks
    JEL: O31 R12 C31
    Date: 2011
  4. By: Fiorenza Belussi (University of Padova); Silvia Rita Sedita (University of Padova)
    Abstract: This article deepens the theoretical understanding of learning processes in industrial districts (IDs) by analysing the emergent and deliberate structures that favour knowledge transfer at the local and distance level. An analytical framework illustrates district-learning dynamics through two mechanisms. The first is the exploitation of local knowledge structures. The second is the exploration of distant knowledge structures. We claim that a combination of the two mechanisms enhances the competitiveness of industrial districts in the global arena. We illustrate how these theoretical reflections find empirical evidence in the case of the Lake Naivasha cut-flower district in Kenya.
    Keywords: industrial districts, knowledge structure, business networks, communities of practice.
    JEL: R0 O1
    Date: 2011–10
  5. By: Massimiliano Mazzanti; Davide Antonioli; Susanna Mancinelli
    Abstract: Many scholars have highlighted the role of high performance work practices (HPWP) and Human Resource Management (HRM) as contents of organizational change that integrate with green business strategies, mainly in the realm of the ‘Porter paradigm of change’ and competitive advantage. We investigate whether manufacturing firms, in light of the challenges that the path to a ‘Green economy’ poses, have given heavier weight in most recent times to internal sources of environmental innovation (EI) that refer to structural mechanisms of organizational change. More specifically, we analyse how the complementarity between different performance oriented strategies such as training and organizational innovations of labor and production can (jointly) foster the adoption of relatively more radical innovations, as environmental ones are. We use an original dataset on 555 Italian industrial firms on EI and high performance work practices, coherent with the last CIS5 survey, to analyse whether various, more or less radical, forms of environmental innovations are correlated to complementarity investments in HPWP/HRM. Empirical evidence shows that the strict complementarity assumption is not valid as a general rule for the HPWP/HRM strategies we analyse. We indeed find that trade offs (substitutability) is present when training competencies and organizational change in production are investigated. Weaknesses in organizational change processes are then highlighted for the sake of management restructuring. Sector specificity and market conditions eventually matter: the only case where we do find strict complementarities in organizational change is for CO2 abatement, a relatively more radical type of EI, but when we restrict the sample to more polluting (and regulated) firms. This evidence is coherent with the Porter hypothesis: complementarity related adoption of EI is an element of organizational change in firms that are subject to more stringent regulations. The fact that strict complementarity is not a diffused factor behind the adoption of all environmental innovations does not come indeed at a surprise. At this stage of development of green strategies, the share of eco-firms is still limited even in advanced countries that are seeking for new competitiveness tools. Market Leaders do find innovations sources mainly ‘outside’ the boundaries instead of reshaping organizations along complementary green lines. The integration of EIs with the internal capabilities and firm’s own assets is far from being reached even in advanced and competitive industrial settings.
    Keywords: environmental innovations; complementarity; HRM; HPWP; training; innovation survey; manufacturing firms; Porter hypothesis
    JEL: L6 M53 O3 Q55
    Date: 2011–10–26
  6. By: Oriol Amat; Jordi Perramon
    Abstract: Given the current economic environment, high-growth companies are particularly relevant for their contribution to employment generation and wealth. This paper discusses the results of a survey that was conducted in order to gain a deeper understanding of high-growth cooperatives through analyzing their financial profiles and then identifying key contributing factors to their growth. To do this, we compared this particular sample with other cooperatives and other high-growth mercantile companies. The results show the main drivers related to high-growth companies success. They are the competitive advantages based on the surveyed group, modern management techniques, quality and productivity, innovation and internationalization. Additionally, we have observed some financial strengths and weaknesses. In this sense, they are under capitalized companies with an unbalanced growth.
    Keywords: Worker cooperatives, service cooperatives, high-growth cooperatives, competitiveness factors, financial information, management tools.
    JEL: M10 M14 M40 P13
    Date: 2011–10
  7. By: Fabio Pollice (University of Salento); Stefano De Rubertis (University of Salento); Enrico Ciavolino (University of Salento); Antonella Ricciardelli (University of Salento)
    Abstract: The performance of single universities, beyond internal determinants, is influenced by the conditions of their own territorial context, that is by a number of factors related to their local geographical area, meant as a space of territorial interactions, measurable by its previous relational dynamics. This set of factors can, directly or indirectly, affect both the organizational structure and strategic orientations of the single university, as well as the results achieved by it in the field of education and research.Through a multi-dimensional statistical model, the evaluation criteria for university performance will be compared to some territorial variables which, in scientific literature, are considered to be indexes of territorial competitiveness. The statistical model aims at measuring the impact local context has on the competitive performance of universities, explaining the nature and intensity of this relationship. With reference to the objectives of the research, data we will use refer to two different sets of indicators: on the one hand, data used to evaluate university performance, on the other hand, the ones used to measure territorial competitiveness. In more detail, university performance is based on some of the indicators used by the CENSIS in the "University Ranking 2010" referring to the following databases: MIUR-Statistical Office; CINECA; CNVSU; National LLP Agency Italy; CRUI; CORDIS. Territorial data, instead, are extracted from the "Atlas of the Provinces and Regions competitiveness” elaborated by UNIONCAMERE. For both sets of indicators, the analysis will refer to the year 2008.If the indicators of university performance are correlated to territorial conditions, they don’t really measure university productivity/competitiveness, but rather the competitiveness of its territorial context. This can lead to some distortions in the financial resources allocation and, more generally, in national supporting policies to public universities.In their conclusions, authors also tend to reverse the perspective through which the role of government intervention has been traditionally interpreted. If universities are qualifying elements of territorial competitiveness – as it is shown by the fact that they are frequently used within the set of indicators to measure it – the strengthening of university system should be one of the priority objectives of regional development policies. Consequently, national government should invest in university education and research, even where university performance, due to some specific local conditions, is not satisfactory or even below fixed national or international standards.
    Date: 2011–09
  8. By: Dutz, Mark A.; Kessides, Ioannis; O'Connell, Stephen; Willig, Robert D.
    Abstract: The paper investigates the strength of innovation-driven employment growth, the role of competition in stimulating and facilitating it, and whether it is inclusive. In a sample of more than 26,000 manufacturing establishments across 71 countries (both OECD and developing), the authors find that firms that innovate in products or processes, or that have attained higher total factor productivity, exhibit higher employment growth than non-innovative firms. The strength of firms'innovation-driven employment growth is significantly positively associated with the share of the firms'workforce that is unskilled, debunking the conventional wisdom that innovation-driven growth is not inclusive in that it is focused on jobs characterized by higher levels of qualification. They also find that young firms have higher propensities for product or process innovation in countries with better Doing Business ranks (both overall and ranks for constituent components focused on credit availability and property registration). Firms generally innovate more and show greater employment growth if they are exposed to more information (through internet use and membership in business organizations) and are exporters. The empirical results support the policy propositions that innovation is a powerful driver of employment growth, that innovation-driven growth is inclusive in its creation of unskilled jobs, and that the underlying innovations are fostered by a pro-competitive business environment providing ready access to information, financing, export opportunities, and other essential business services that facilitate the entry and expansion of young firms.
    Keywords: Environmental Economics&Policies,Labor Policies,Labor Markets,E-Business,Microfinance
    Date: 2011–10–01
  9. By: Francesco Crespi; Cristiano Antonelli
    Abstract: The paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between virtuous Matthew-effects and vicious Matthew-effects. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones. The empirical analysis is based on Transition Probability Matrices, probit regressions and Propensity Score Matching on around 700 Italian firms in the years 1998-2003.
    Keywords: Innovation; R&D subsidies; Matthew effects; past dependence; path dependence
    JEL: H25 H32 L52
    Date: 2011–10
  10. By: Nilsson, Magnus (CIRCLE, Lund University); Moodysson, Jerker (CIRCLE, Lund University)
    Abstract: The framework of regional innovation systems highlights the systemic nature of economic development and the importance of coordination of policy activities. Such coordination presupposes an understanding of the underlying problems and how they can be addressed. Generic problems in innovation systems refer to issues of lack of resources, negative lock-in, and structural or functional fragmentation. In spite of this, there are few good examples of systematic analyses of innovation systems that take into account both structural and functional properties of the system. This paper addresses this issue by offering a framework for analyzing innovation system problems, functions, activities, and actors and, based on this, offers insights with regard to the role of regional actors as coordinators of innovation system activities.
    Keywords: Regional innovation systems; innovation policy; systemic problems
    JEL: O30
    Date: 2011–10–21
  11. By: Giulio Pedrini (Department of Economics, University of Bologna; SDIC, School of Innovation Development and Change, Bologna)
    Abstract: This study deals with the attitude of European firms towards personnel policies analysed on a national basis. Provided the relevance of Human Resources (HR) practices in terms of the internal organisation of knowledge of the firm, we assess the main characteristic of personnel policies in 12 European countries both in terms of HR department position within the firm and in terms of human capital development practices. Not only is the issue significant in terms of Human Resource Management but also in terms of the debate on the role of the institutions in determining personnel policies, and notably in terms of the debate on the "varieties of capitalism”. For this purpose the paper develops a cluster analysis among 16 European countries showing the possible influence of institutional models on personnel policies. The same analysis is also developed for intertemporal comparative purposes. The second part of the paper analysis relates personnel policies to the phenomenon of Corporate Universities (CU), being they intended as a vehicle of firms’ capability to react to organisational and technological change. Within the complex relationship between firm’s organization and knowledge CU may in fact represent a consistent way to keep HR departments and firms’ strategies tightly connected, possibly assuming a systemic vision of the firm open to employees and in some cases to other stakeholders. The main features of European Corporate Universities will thus be acknowledged by looking at their main characteristics, with particular reference to their relation with HR departments and to the external factors that have contributed to their development. The paper uses theoretical tools provided by economic literature on training, human capital and knowledge management, combining them with a descriptive analysis of the empirical evidence coming from data on both Corporate Universities and firms’ personnel policy at European level. In particular data on firms’ personnel policy will come from the survey performed in 2005 by Cranet, the largest academic research network dedicated to a comparative analysis of developments in Human Resource Management in public and private organisations. Such data will be integrated by surveys on firms’ training practices at European level and by the (limited) empirical literature dealing with European Corporate Universities.
    Date: 2011–09
  12. By: Malak Reda (Egyptian Centre for Economic Studies-ECES)
    Abstract: Using panel data regressions for twenty-five countries, including Egypt, for the period 2005-2011, the current study investigates how labor, education and innovation affect Egypt’s competitiveness and in turn affect real economic growth. Results indicate that labor, education and innovation affect greatly competitiveness and real GDP growth and that investing in those dimensions is key for greater economic growth. Further using Egypt’s specific time series for the period 1980-1999, results indicate the importance of raising both the efficiency and level of expenditure on education; highlight the necessity to raise the innovation capacity of the country and stress upon the importance of youth employment and its positive impact on real GDP growth. Assuming that Egypt is able to improve its education, innovation and labor indicators that underlie the global competitiveness score by five percent, this will in turn lead to greater real GDP growth, estimated at 9.9 percent. The results emphasize the need to improve the quality and efficiency of the educational system; to invest heavily in the creation of employment, especially for the youth, and to invest in improving innovation capacity towards higher output growth and welfare.
    Date: 2011–09
  13. By: Ainoa Quiñones Montellano (Departamento de Administración de Empresas, Universidad de Cantabria); Sergio Tezanos Vázquez (Cátedra de Cooperación Internacional y con Iberoamérica, Universidad de Cantabria)
    Abstract: La innovación y el acceso al conocimiento son elementos decisivos para los procesos de desarrollo económico. Aunque la globalización facilita una expansión sin precedentes del conocimiento, la sociedad del siglo XXI tiene aún pendiente garantizar un acceso equitativo a los beneficios de la innovación para expandir las oportunidades de progreso a todos los pueblos. En este contexto, las políticas internacionales de cooperación científicotecnológica para el desarrollo (cooperación CT) pretenden promover el progreso tecnológico, científico e innovador de los países en desarrollo. En este trabajo caracterizamos las políticas de cooperación CT (identificando sus principales objetivos, actores y sectores de destino), y analizamos la evolución y la distribución geográfica y sectorial de los flujos de Ayuda Oficial al Desarrollo científico-tecnológica (AOD-CT). El trabajo concluye que las políticas de cooperación CT son una apuesta, desde la innovación, por una estrategia inclusiva de desarrollo internacional.
    Keywords: Cooperación científico-tecnológica (cooperación CT), Ayuda Oficial al Desarrollo científico-tecnológica (AOD-CT), I+D+i, Sistemas Nacionales de Innovación (SNI), capacidades tecnológicas.
    Date: 2011–03
  14. By: Tanja Grublješič; Jože Damijan;
    Abstract: We provide new comprehensive evidence on similarities and differences in export Behavior of Slovenian manufacturing and services firms by using detailed firm-level panel data for Slovenia. Main findings show that export Behavior in these two types of firms is similar and in line with the big picture that is by now familiar from the literature. Slovenian exporting services firms are more productive than non-exporting firms when observed and unobserved heterogeneity are controlled for. Export premia of services firms is even larger than for exporting manufacturing firms. Similarly, pre-entry premia over non-exporters is even larger than for manufacturing firms. We find some evidence of significant learning-by-exporting effects for services firms, but only when using the Levinsohn and Petrin measure of total factor productivity.
    Keywords: Trade in Services, Firm heterogeneity, Self-selection, Learning by exporting
    Date: 2011
  15. By: Rosa Bernardini Papalia (Department of Statistics, University of Bologna); Silvia Bertarelli (Department of Economics Institutions and Territory , University of Ferrara); Carlo Filippucci (Department of Statistics, University of Bologna)
    Abstract: In this paper, we study the relationship between the level of development of an economy and returns to different levels of education for the panel of OECD countries over the 1965-2004 period, in a club convergence framework. The connection between growth and human capital measures of primary, secondary and tertiary education in a multiple-club spatial convergence model with non linearities and spatial dependence is considered. By decomposing total schooling into its three constituent parts, we are able to evaluate their impact on regional growth without imposing homogeneous returns from each level of education. We contribute to the identification of two regimes for OECD countries, each characterized by different returns on physical and human capital accumulation and technological spillovers. We also find that the non-monotonic pattern of convergence is strongly influenced by human capital stocks and technology diffusion process is stronger in the club less close to the technological frontier.
    Date: 2011–09

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