nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒11‒21
twenty papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The internationalization profiles of Portuguese SMEs By Pedro Oliveira; Aurora A.C. Teixeira
  2. How University Departmens respond to the Rise of Academic Entrepreneurship? The Pasteur's Quadrant Explanation By Yuan-Cheih Chang; Phil Yihsing Yang; Tung-Fei Tsai-Lin; Hui-Ru Chi
  3. Knowledge Management in Tourism Organizations: Proposal for an Analytical Model By Sequeira, Bernardete; Marques, João Filipe
  4. Technological Dynamics and Social Capability: Comparing U.S. States and European Nations By Jan Fagerberg; Maryann Feldman; Martin Srholec
  5. Sources of Heterogeneity in the Efficiency of Indian Pharmaceutical Firms By Mainak Mazumdar; Meenakshi Rajeev; Subhash Ray
  6. Entrepreneurship and Innovation: Public Policy Frameworks By Audretsch, David B.; Link, Albert N.
  7. Collaborative Methods for Business Process Discovery By Zacarias, Marielba; Martins, Paula
  8. Innovation in logistics services – halal logistics By Jaafar, Harlina Suzana; Endut, Intan Rohani; Faisol, Nasruddin; Omar, Emi Normalina
  9. Supply Portfolio Concentration in Outsourced Knowledge-Based Services By Moeen, Mahka; Somaya, Deepak; Mahoney, Joseph T.
  10. Temporary employment agencies make the world smaller:Evidence from labour mobility networks By Carlo Gianelle
  11. Institutional Theories and Public Institutions. By Jean-Claude Thoenig
  12. Mergers and Innovation in the Pharmaceutical Market By Comanor, William S.; Scherer, F. M.
  13. Assessing competitiveness: how firm-level data can help By Carlo Altomonte; Giorgio Barba Navaretti; Filippo di Mauro; Gianmarco Ottaviano
  14. Valuing an Entrepreneurial Enterprise By Audretsch, David B.; Link, Albert N.
  15. How Do Foreign and Domestic Demand Affect Exports Performance? An Econometric Investigation of Indonesia's Exports By Rudy Rahmaddi; Masaru Ichihashi
  16. Effects of Business Embedded & Traditional Training Models on Motivation By Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
  17. Channels of Firm Adjustment: Theory and Empirical Evidence By Holger Breinlich; Stefan Niemann
  18. Relocation and Investment in R&D by Firms. By Juan Carlos Barcena-Ruiz; Maria Begoña Garzon
  19. La prise en compte de la durabilité dans les stratégies marketing des PME : apports et limites By Aurier, P.; Masson, J.; Siadou-Martin, B.; Sirieix, L.
  20. Generating global brand equity through corporate social responsibility to key stakeholders By Anna Torres; Tammo H. A. Bijmolt; Peter Verhoef; Josep A. Tribó

  1. By: Pedro Oliveira (Faculdade de Engenharia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF)
    Abstract: Given the (increasing) view point that firms’ internationalization strategy is the unique path to overcome the Portuguese dismissal economic growth, the present paper offers a comprehensive picture of the internationalization behavior of Portuguese SME, constituting therefore an important tool for political action. On the basis of the literature review and the factorial and cluster analyses performed, we propose three main segmentation criteria, one (‘Whole encompassing segmentation’: Experienced Medium Low-Tech firms; Low skill, Low-Tech firms; Young High-Tech firms) based on language skills, SME business experience, foreign market dependency, introduction of organizational innovation, exporting to ‘High income countries’ and education level of executive teams. The second segmentation proposal (‘Intermediate segmentation’: Young small-sized firms; Young micro-sized firms; Mature small-sized firms; Young medium-sized firms; Mature medium-sized firms; Foreign equity firms; Highly productive firms) has as criteria the firm size, the SME export intensity and industry. The last segmentation proposal (‘Parsimonious segmentation’: Medium-sized firms; Small-sized manufacturing firms; Micro-sized firms; Non-manufacturing small-sized firms; Export active small-sized firms; Potential exporters; Promising exporters firms) is based on SME size, business experience, foreign capital presence, and average productivity. Given the need for a parsimonius segmentation criterion, we convey that the most adequate segmentation criterion is the one combining SME size, export intensity and industry. This restricted number of criteria does not, however, affect the quality of the proposed SME segmentation, and has the advantage of being stasticaly adequate and user/cost friendly.
    Keywords: Internationalization performance determinants, Portugal, Segmentation, SME
    Date: 2011–11
  2. By: Yuan-Cheih Chang; Phil Yihsing Yang; Tung-Fei Tsai-Lin; Hui-Ru Chi
    Abstract: This paper examines how universities can develop a new organizational structure to cope with the rise of academic entrepreneurship. By deploying the Pasteurian quadrant framework, knowledge creation and knowledge utilization in universities are measured. The relationships between university antecedents, Pasteurian orientation, and research performance are analyzed. A survey of university administrators and faculty members collected 634 responses from faculty members in 99 departments among 6 universities. The findings indicate that university antecedents of strategic flexibility and balancing commitment contribute to a greater Pasteurian orientation in university departments. The higher degree of Pasteurian orientation has significantly positive impacts on the performance both of knowledge creation and knowledge utilization. Moreover, the Pasteurian orientation acts as a mediator between university antecedents and research performance. Using cluster analysis, the departments are categorized into four groups. The differences between university- and department- factors in these four groups are examined and discussed. We conclude that not all university departments should move toward the Pasteurian group, and there are specific organizational and disciplinary factors resulting in mobility barriers among groups. Policies to encourage academic entrepreneurship should consider these mobility barriers, along with this new governance of science.
    Keywords: Academic entrepreneurship, Pasteur’s quadrant, research excellence, research commercialization
    Date: 2011
  3. By: Sequeira, Bernardete (University of Algarve); Marques, João Filipe (University of Algarve)
    Abstract: Tourism is an activity-based service sector in which information and knowledge are fundamental to developing realistic strategies and business plans. This article presents a model that was developed in an investigation called “Organisational Knowledge Management in Tourism Organisations,” which was part of a doctoral degree in Sociology, Faculty of Economics, University of Algarve. This study investigated how Algarve tourist organisations manage knowledge by observing how they create, retain, share and use it. This empirical research is based on a study of three cases that used documental investigation, interviews and questionnaires and the analytic model that is introduced here. We present an analytic model that identifies the different stages of knowledge management (acquisition / knowledge creation, retention / storage, transfer / sharing and use) and the management practices that facilitate it (strategic management, organisational culture, structure and work processes, human resource policies, information systems and communications, evaluation of results and relationship with the environment outside the organisation) based on learning promotion.
    Keywords: Knowledge; Organisational Knowledge Management; Facilitating Practices
    JEL: D83
    Date: 2011–06–30
  4. By: Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo); Maryann Feldman (University of North Carolina, Chapel Hill); Martin Srholec (CERGE-EI, Charles University and Economics Institute of the Academy of Sciences of the Czech Republic)
    Abstract: This paper analyzes factors that shape the technological capabilities of individual U.S. states and European countries, which are arguably comparable policy units. The analysis demonstrates convergence in technological capabilities from 2000 to 2007. The results indicate that social capabilities, such as a highly educated labor force, an egalitarian distribution of income, a participatory democracy and prevalence of public safety, condition the growth of technological capability. The analysis also considers other aspects of territorial dynamics, such as the possible effects of spatial agglomeration, urbanization economies, and differences in industrial specialization and knowledge spillovers from neighboring regions.
    Keywords: innovation, technological capabilities, European Union, United States
    Date: 2011–11
  5. By: Mainak Mazumdar (Centre De Science Humaines); Meenakshi Rajeev (Institute for Social and Economic Change); Subhash Ray (University of Connecticut)
    Abstract: Using the non parametric approach of Data Envelopment Analysis (DEA) this paper examines firm’s heterogeneity in the Indian pharmaceutical industry by measuring their input and output efficiencies for the period 1991 to 2005. The analysis establishes that even though firms have been able to make efficient use of inputs like labor and raw material the output efficiency of the firms reveals a declining trend. The phenomenon can be attributed to the differences in the size of firms and the presence of economies of scale in production. Further analysis reveals the importance of firm specific factors like its strategies and structure for variation in output efficiency. We find firms that are vertically integrated with down-stream raw-material industry are more efficient. We also find that R&D is a possible strategic option for firms to gain higher efficiency but only for the large sized firms.
    Keywords: Patents, Pareto-Koopmans Efficiency, Data Envelopment Analysis (DEA)
    JEL: L65 C61
    Date: 2011–11
  6. By: Audretsch, David B. (Indiana University); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The purpose of this paper is to identify and unravel the disparate views toward innovation prevalent within the economic community and to link them to the various public policy approaches. These various schools of thought, or ways of thinking about the economy in general and the role of entrepreneurship and innovation in particular, not only shape how innovation and entrepreneurial activity are valued, but also the overall policy debate concerning innovation and entrepreneurship. Unraveling of these views sets highlights the disparate way in which entrepreneurial activity leading to innovation is valued.
    Keywords: Entrepreneurship; Innovation; Economic Theory
    JEL: E10 L26 O31
    Date: 2011–11–08
  7. By: Zacarias, Marielba (University of Algarve); Martins, Paula (University of Algarve)
    Abstract: Information flows across the organization are complex and procedures employed to understand, share and control organizational knowledge and experiences should be properly supported by collaborative environments. Nevertheless, few collaborative methodologies had been proposed to describe and evolve business processes. Existing tools don't provide the right methods for business processes discovery, modelling, monitoring and improvement. In the future, business processes models should be the result of cross-team and crossdepartmental collaboration, with involved business people sharing their personal knowledge and formalizing it. This discussion paper focuses on collaborative process discovery methods, tools and the importance to integrate local information into coherent and sound process definitions. Business Alignment Methodology is a methodology that provides guidance about how organizational practices and knowledge are gathered to contribute for business process improvement against current Business Process Modelling approaches.
    Keywords: Business Process Discovery; Collaborative Work; Methodology; Modelling
    JEL: Z19
    Date: 2011–06–30
  8. By: Jaafar, Harlina Suzana; Endut, Intan Rohani; Faisol, Nasruddin; Omar, Emi Normalina
    Abstract: Purpose: The expansion of liberalization of trade and services has forced companies to consider the global market demand in their competitive strategic planning. Hence, business organisations need to be continuously as innovation could promise potential growth and development so as to gain competitive advantage in being ahead in the market. Specifically, supply chain has always been viewed as the most important areas to be innovated as it would be an effective means to gain efficiencies and eliminate accumulating competitive pressures and thus increasing innovations. Thus, the purpose of this study is to present a case study that demonstrates an innovation created in the logistics services, i.e. halal logistics services, as to fulfil the increasing demand of the customers throughout the world particularly the rising number of Muslim population. Research approach: This study uses case study approach to elaborate the implementation of halal logistics practice. In achieving the objective, related literature concerning the halal concept is reviewed and explained to provide better understandings of the concept and how it is applied to logistics services. The emphasis on the innovativeness of this concept is also included. The data for the case study is gained from in-depth interviews with the corporate and operation managers of two leading logistics service providers in Malaysia, who are the subjects of the case. Findings and Originality: This study found new logistics services that are able to fulfil the growing demand of the customers especially the increasing number of Muslims. This is important as these services have taken into consideration several factors such as comprehensive hygiene practices and thus, is also crucial to other customers. However, understanding the basic concept of halal practice and the rationale of its implementation is very crucial before one can commit to its practice. This study contributes to the advancement of knowledge through the elaboration of a case study, which demonstrates the application of halal concept into logistics service practices. Research impact: This study introduces a new concept of halal logistics, which applies the concept of halal into logistics. The needs to initiate more logistics services that are based on halal concept are crucial in meeting the needs of the increasing demand by the customers. Practical impact: The findings provide insights to the practitioners of the importance in implementating halal logistics services. It also indicates the needs for logistics companies to be innovative in creating more halal logistics services to fulfill these demands.
    Keywords: Halal logistics; innovation; case study
    JEL: L8 L9
    Date: 2011–07
  9. By: Moeen, Mahka (University of MD); Somaya, Deepak (University of IL); Mahoney, Joseph T. (University of IL)
    Abstract: In the extant vertical integration literature, the question of how the firm's portfolio of outsourced work is managed across suppliers has been relatively understudied. We seek to advance this area of research by examining factors that influence how concentrated the firm's outsourcing is among its set of suppliers. Using data on the outsourcing of patent legal services, we find empirical evidence that outsourced knowledge-based service work is concentrated in the hands of fewer suppliers when: (1) it requires greater firm-specific knowledge; (2) there is a higher level of interrelatedness across outsourced projects; (3) the firm's reliance on outsourcing is high; (4) its outsourced projects are focused on a narrower (capability) domain; and (5) the technological dynamism of this domain is low. Our study suggests that examining portfolio-level phenomena in outsourcing is a useful complement to the predominant focus on transaction-level outcomes in prior research because it provides insights into how firms manage tradeoffs across their entire set of outsourced projects.
    Date: 2011
  10. By: Carlo Gianelle
    Abstract: This paper investigates how employment intermediaries affected the inter-firm network of worker mobility in an region of Italy in response of the reform that first allowed for temporary employment agencies in 1997. We map worker reallocations from a matched employer-employee dataset onto a directed graph, where vertices indicate firms, and links denote transfers of workers between firms. Using network-based methodologies we find that temporary employment agencies significantly increase network integration and practicability, while fastly increasing control over hiring channels. The policy implications of the results are discussed, highlighting the potential of network analysis as monitoring tool for regional and local labour markets.
    Keywords: Inter-firm networks, labour mobility, temporary employment agencies
    JEL: D85 C46 J63
    Date: 2011–10
  11. By: Jean-Claude Thoenig (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX)
    Abstract: This chapter covers the evolution of institutional theory and its application to public adminsitrations in the last 20 years. It discusses the various streams, their reseach agendas and their contributions, but also their limits to add value to knowledge.
    Keywords: New institutional theories: historical, sociological, "new institutionalism", co-constructed local orders.
    Date: 2011
  12. By: Comanor, William S. (UCLA and University of CA, Santa Barbara); Scherer, F. M. (Harvard University)
    Abstract: The U.S. pharmaceutical industry has experienced in recent years two dramatic changes: stagnation in the growth of new molecular entities approved for marketing, and a wave of mergers linking inter alia some of the largest companies. This paper explores possible links between these two phenomena and proposes alternative approach to merger policy. It points to the high degree of uncertainty encountered in the discovery and development of new pharmaceutical entities and shows how optimal strategies entail the pursue of parallel research and development paths. Uncertainties afflict both success rates and financial gains contingent upon success. A new model simulating optimal strategies given prevalent market uncertainties is presented. Parallelism can be sustained both within individual companies' R&D programs and across competing companies. The paper points to data showing little parallelism of programs within companies and argues that inter-company mergers jeopardize desirable parallelism across companies.
    Date: 2011–11
  13. By: Carlo Altomonte; Giorgio Barba Navaretti; Filippo di Mauro; Gianmarco Ottaviano
    Abstract: As policymakers refocus on growth, the ability to take a firm-level view is key to disentangling the various factors at the root of competitiveness, and thus to designing appropriate policies. â?¢ Firm-level data provides critical information for the design of appropriate competitiveness measures that complement traditional macro analysis. â?¢ More work remains to be done assembling firm-level information, but the variance of the distribution of firm characteristics already conveys important information in addition to standard averages. â?¢ New indicators should be developed to translate the distribution of firm characteristics into indicators of competitiveness designed to capture not only average performance but also the heterogeneity of firm performance. This Policy Contribution builds on ongoing research within EFIGE (, a project to help identify the internal policies needed to improve the external competitiveness of the European Union.
    Date: 2011–11
  14. By: Audretsch, David B. (Indiana University); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper focuses on valuation issues and methods that are related to a closely-held entrepreneurial enterprise. This focus is motivated by the fact that the number of small closely held business start-ups, which we refer to broadly by the term entrepreneurial enterprises, continues to grow year after year, and new business ventures remain the primary source for employment growth in the United States and most industrialized nations. And, the topic of the valuation of an entrepreneurial enterprise has for the most part been ignored. The traditional approaches to the valuation of small closely held entrepreneurial enterprises are, in our view, wanting in a number of important respects. Simply, traditional valuation methods are modeled in a manner that is applicable to a going-concern business with a history of sales and revenues. That is not the case for an entrepreneurial enterprise as we define it, and thus the use of traditional valuation methods is questionable.
    Keywords: Entrepreneurship; Valuation; Closely-held Business
    JEL: L26 O31
    Date: 2011–11–10
  15. By: Rudy Rahmaddi; Masaru Ichihashi (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: This paper explores the impacts of foreign and domestic demand on Indonesia's exports within demand and supply frameworks using aggregate data of 1971 - 2007. To capture effects of secular and cyclical movements on exports, we dissect income variables into trend and business cycle as proxies of productive capacity and capacity utilization rate, respectively. Our result suggests that both demand- and supply-price elasticity are elastic, and secular and cyclical movements may have contrast effects on exports. The findings draw policy implications namely the importance of price-based policy, provision of adequate and sound infrastructures, and further development of human capital-based industrialization.
    Keywords: Exports; demand and supply for exports; domestic demand pressure; Indonesia; simultaneous equations.
    JEL: F11 O19
    Date: 2011–09
  16. By: Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
    Abstract: Service industry is now focusing more and more on providing valuable training opportunities to its employees in order to improve the quality of its services and benchmarking them as its competitive advantage. This research has attempted to understand the effects of the Business Embedded Training Model and the Traditional Training Model on employees’ job motivation. A sample of 80 organizations and 1000 respondents was taken and Group t-Test and Log Linear Logit techniques were used to evaluate that which training model is preferred over the other by the service industry and which training model has more positive effects on employees’ job motivation. The study revealed that Business Embedded Training Model has more positive effects on employees’ motivation than the Traditional Training Model.
    Keywords: Training; Motivation; Performance; Employee Satisfaction
    Date: 2011
  17. By: Holger Breinlich; Stefan Niemann
    Abstract: We provide a comprehensive analysis of how firms choose between different expansion and contraction forms, unifying existing approaches from the industrial organization and corporate finance literature. Using novel data covering almost the entire universe of UK firms, we document firms’ use of internal adjustment, greenfield investment and mergers and acquisitions (M&As). We describe frequency and aggregate importance of the different channels, and show that their use varies systematically with observable firm characteristics, in particular firm size and the magnitude of adjustment. We also demonstrate that there is positive assortative matching on the UK merger market. Based on these facts, we propose a theoretical framework which accommodates all three adjustment channels in a unified setting, and is able to replicate the adjustment and matching patterns found in the data.
    Date: 2011–09–23
  18. By: Juan Carlos Barcena-Ruiz (UPV/EHU); Maria Begoña Garzon (UPV/EHU)
    Abstract: The literature on foreign direct investment has analyzed firms' location decisions when they invest in R&D to reduce production costs. Such firms may set up new plants in other developed countries while maintaining their domestic plants. In contrast, here we considerer firms that close down their domestic operations and relocate to countries where wage costs are lower. Thus, we assume that firms may reduce their production costs by investing in R&D and also by moving their plants abroad. We show that these two mechanisms are complementary. When a firm relocates it invests more in R&D than when it does not change its location and, therefore, its production cost is lower in the first case. As a result, investment in R&D encourages firms to relocate. When firms do not invest in R&D on relocation, R&D discourages firms to relocate since the investment made by the firms that remain in the country partially offsets the labor cost advantage obtained by the firms that move their plants abroad.
    Keywords: Relocation, R&D, Trade Unions, Social welfare, Imperfect competition
    JEL: D6 F16 J51 L13
    Date: 2011–11–14
  19. By: Aurier, P.; Masson, J.; Siadou-Martin, B.; Sirieix, L.
    Abstract: This paper examines how SME managers in the agro-food sector include sustainable development into their marketing strategy. We focus on the link between sustainable development and performance, the impact of environmental factors on their practices and the limits that they perceive when trying to include sustainability into their marketing strategy. More than a marketing strength, sustainability appears as important for the people who work in the SME. However, there are some limits. ...French Abstract : Nous examinons dans cet article comment des directeurs de PME agroalimentaires à fort ancrage territorial s’approprient la notion de développement durable et l’expriment dans leurs stratégies marketing. Nous examinons successivement leur vision du lien entre développement durable et performance, l’impact des caractéristiques environnementales sur leurs pratiques et les limites qu’ils perçoivent à cette volonté d’intégrer la durabilité dans leur stratégie au moment de sa mise en œuvre. Au-delà de l’argument commercial, la durabilité apparaît comme un levier intéressant du projet d’entreprise et de la mobilisation des salariés. Néanmoins, la démarche comporte aussi des limites.
    JEL: M31 Q01
    Date: 2011
  20. By: Anna Torres; Tammo H. A. Bijmolt; Peter Verhoef; Josep A. Tribó
    Abstract: In this paper we argue that corporate social responsibility (CSR) to various stakeholders (customers, shareholders, employees, suppliers, and community) has a positive effect on global brand equity (BE). In addition, policies aimed at satisfying community interests help reinforce credibility to social responsible polices with other stakeholders. We test these theoretical contentions using panel data comprised of 57 global brands originating from 10 countries (USA, Japan, South Korea, France, UK, Italy, Germany, Finland, Switzerland and the Netherlands) for the period 2002 to 2008. Our findings show that CSR to each of the stakeholder groups has a positive impact on global BE. In addition, global brands that follow local social responsibility policies over communities obtain strong positive benefits in terms of the generation of BE, as it enhances the positive effects of CSR to other stakeholders, particularly to customers. Therefore, for managers of global brands it is particularly productive for generating brand value to combine global strategies with the satisfaction of the interests of local communities
    Keywords: Global Brands, Brand Equity, Corporate Social Responsibility, Stakeholders
    Date: 2011

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