nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒11‒28
thirty-two papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Knowledge Spillovers and Knowledge Intensive Business Services: An Empirical Study By Fernandes, Cristina; Ferreira, João
  2. Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms By Duschl, Matthias; Schimke, Antje; Brenner, Thomas; Luxen, Dennis
  3. The impact of West-German universities on regional innovation activities: A social network analysis By Meyborg, Mirja
  4. R&D cooperation between Spanish firms and scientific partners: what is the role of tertiary education? By Agustí Segarra
  5. Regional innovation systems revisited: networks, institutions, policy and complexity By Elvira Uyarra
  6. How cluster membership places the mediatior effect of the internal resources on the association between KIBS and the growth of new innovative firms By José Belso-Martínez; Xavier Molina-Morales; Francisco Más-Verdú
  7. Transitions to Entrepreneurship and Industry-Specific Barriers By Lofstrom, Magnus; Bates, Timothy; Parker, Simon C.
  8. HR PRACTICES AND STRATEGIC CONTRIBUTIONS IN EDUCATIONAL INDUSTRY (ISLAMIC AZAD UNIVERSITY) By Reza Gheshmi; Hadi Rasoulzadeh; Bahdor Ganjeh Khosravi; Mehrdad salehi; Ali Haj Aghapour; Roozbeh Hojabri; Mahmoud Manafi
  10. Does Skilled Migration Foster Innovative Performance? Evidence from British Local Areas By Luisa Gagliardi
  11. Competition and Industry Structure for International Rail Transportation By Friebel, Guido; Ivaldi, Marc; Pouyet, Jérôme
  13. Creative-based strategies in small and medium-sized cities: some European study cases By Elisabete Tomaz; Catarina Selada; Inês Vilhena da Cunha
  14. THE RELATIONSHIP BETWEEN ONLINE ENVIRONMENTS AND CUSTOMER SATISFACTION (IRAN COMPUTER HARDWARE INDUSTRY) By Reza Gheshmi; Ali Haj Aghapour; Mehrdad salehi; Mojtaba Saeidinia; Bahdor Ganjeh Khosravi; Hadi Rasoulzadeh; Mahmoud Manafi
  15. The impact of public basic research on industrial innovation: Evidence from the pharmaceutical industry By Toole, Andrew A.
  16. Productivity, Relationship-Specific Inputs and the Sourcing Modes of Multinationals By Defever, Fabrice; Toubal, Farid
  17. Empirical Conclusion from the Managerial Perception for the Various Multi-Brands Strategies and their Implementations By Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
  18. Production networks in the Asia-Pacific region : facts and policy implications By Hiratsuka, Daisuke
  19. Relationship between Various Employee Performance Recognition Techniques and Customer Satisfaction: Evidence from the Restaurant Industry of Pakistan By Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
  20. Determinants of regional productivity growth in Europe: an empirical analysis By Gert-Jan Linders; Tatyana Bulavskaya; Henri De Groot; Ferdinand Paraguas
  21. Examining the Implications of Organizational Structure Changes from a Transaction Cost Perspective: a Longitudinal Study of an Outsourcing Vendor By Albert Plugge; Jacques Brook
  22. Supramacroeconomics: the newest management technology By Kozhurin, Fedir
  23. Inter-industry linkages in local economies By Frank Neffke; Martin Henning
  24. Market Size and Pharmaceutical Innovation By Dubois, Pierre; de Mouzon, Olivier; Scott Morton, Fiona; Seabright, Paul
  25. Growth strategies in a greener world By Nabeshima, Kaoru
  26. University rankings in action? The importance of rankings and an excellence competition for university choice of high-ability students? By Horstschräer, Julia
  27. Learning, Incomplete Contracts and Export Dynamics: Theory and Evidence from French Firms By R. AEBERHARDT; I. BUONO; H. FADINGER
  28. Measuring social embeddedness : how to identify social networks in science-industry partnerships ? By Marie Ferru; Michel Grossetti; Marie-Pierre Bès
  30. A Monte Carlo simulation comparing DEA, SFA and two simple approaches to combine efficiency estimates By Andor, Mark; Hesse, Frederik
  31. Measuring Consumers' Attachment to Geographical Indications: Implications for Competition Policy By Hassan, Daniel; Monier-Dilhan, Sylvette; Orozco, Valérie
  32. Measure for Measure: How Well Do We Measure Micro-level Conflict Intensity? By Verpoorten, Marijke

  1. By: Fernandes, Cristina; Ferreira, João
    Abstract: Knowledge is increasingly perceived as a central factor for company competitiveness. With the transfer of knowledge one of the core functions of knowledge intensive business service (KIBS) companies, the objective of our research incorporates analysis on how the transfer of knowledge takes place between the higher education sector and the KIBS universe. Our empirical results demonstrate that cooperation between KIBS and universities occurs independent of their location (rural or urban) and typology (professional or technological). We furthermore found that rural KIBS have increased their levels of graduate employment faster than their urban KIBS peers.
    Keywords: knowledge; spillovers; cooperation; universities; KIBS
    JEL: L84 M1 O32 O3
    Date: 2011
  2. By: Duschl, Matthias; Schimke, Antje; Brenner, Thomas; Luxen, Dennis
    Abstract: In this paper the relationship between firm growth and external knowledge sources, such as related firms and universities, is studied. The spatial characteristics of these relationships are examined by geolocating firms into a more realistic relational space using travel time distances and using flexible distance decay function specifications. This approach properly accounts for growth relevant knowledge spillovers and allows for estimating their spatial range and functional form. Applying quantile regression techniques on a large sample of German manufacturing firms, we show that the impact of external factors substantially differ along firms' size, type of knowledge source and growth level. --
    Keywords: Firm growth,external factors,universities,agglomeration,space,spatial range,distance decay functions,knowledge spillovers,high growth firms,quantile regression
    JEL: C31 D92 L25 R11
    Date: 2011
  3. By: Meyborg, Mirja
    Abstract: In recent years, it has widely been accepted that the ability to create, access and use knowledge and technology is becoming a fundamental determinant of long-term development and competitiveness. Thus, it is not surprising that universities have increasingly become involved in economic development and are often believed to play a key role in regional economic development. This paper firstly examines how far all West-German universities are already involved in close network collaborations. Second, it demonstrates how many distinct linkages 45 chosen West-German universities already possess within the innovation network, and third, to what extent they are already needed as a link in the chains of contacts. Thereby, special attention is given to the eight West-German elite-universities. We basically found out that university interactions, especially university-enterprise networks, become much more important over the last 20 years, as their cooperation activity strongly increased over time. Besides, their distinct linkages to other actors as well as their importance as an intermediary within the innovation network highly increased over the last decade, too; this especially holds for the eight West-German elite universities. --
    Keywords: Human Capital,Economic Growth,Social Network Analysis,Patent Analysis,Patent Collaboration,Network Interaction,West-German University,Elite-University
    Date: 2011
  4. By: Agustí Segarra (Research Group of Industry and Territory, Department of Economics, Universitat Rovira i Virgili.)
    Abstract: This paper explores the factors that determine firm’s R&D cooperation with different partners, paying special attention on the role of tertiary education (degree and PhDs level) in facilitating the connection between the firms and the to scientific bodies (technology centres, public research centres and universities). Here, we attempt to answer two questions. First, are innovative firms that carry out internal and external R&D activities more likely to cooperate on R&D projects with other partners? Second, do Spanish innovative firms with a high participation of researchers with degrees or PhDs tend to cooperate more with scientific partners? To answer both questions we apply a three-dimensional approach on a firm level Panel Data with a sample of 4.998 manufacturing and services Spanish firms. First, we run a complementary test between external R&D acquisition and skilled research workers and find that firms which carry out external R&D activities obtain a greater return on R&D cooperation when they have skilled workers in R&D, especially in high-tech manufactures and KIS services. Second, we carry out a 2-step tobit model to estimate, in the first stage, the determinants that explain whether Spanish innovative firms cooperate or not; and in the second stage the factors that affect the choice of partners. And third, we apply an ordered probit model to test the marginal effects of explanatory variables on the different partners. Here we contrast some of the most interesting empirical hypotheses of previous studies, and which emphasize the role of employees with degrees and PhDs in facilitating cooperative R&D between firms and scientific partners.
    Keywords: Determinants R&D cooperation, industry-university flows, PhD research workers
    JEL: O31 O33 O38
    Date: 2011–11
  5. By: Elvira Uyarra
    Abstract: Despite the popularity of the concept 'regional innovation system' (RIS) in the academic literature and in policy practice, multiple interpretations and uses of the term coexist. For instance while some scholars view RIS as subsystems of national or sector-based systems presenting particular spatial features, other portray them as smaller-scale versions of national systems (Lagendijk, 1999; Howells, 1999; Iammarino, 2005, Uyarra, 2010). Doloreux & Parto (2005) identify three dimensions of regional innovation systems, namely: the interactions between different actors in the innovation process, the role of institutions, and the use of regional innovation systems analysis to inform policy decisions. More generally, Werker & Athreye (2004) differentiate between micro and meso approaches explaining regional innovation; while the former concentrate on the entrepreneurial behaviour of innovative firms, the latter focus on the structural elements manifested in the institutional set-up of regional and industrial systems. Boschma & Frenken (2006) distinguish between institutional and evolutionary views to innovation and geography as alternatives to neoclassical views. Related literature on national innovation systems (NIS) is no less heterogeneous, with numerous usages and interpretations (Miettinen, 2002; Balzat & Hanusch, 2004; Sharif, 2006; Lundvall, 2007). Despite the popularity of the concept ‘innovation system’ in the academic literature and in policy practice, the term itself remains ambiguous (Doloreux & Parto 2005; Uyarra, 2010). This fuzziness (Markusen, 2003), even ‘black boxing’ of the term, may have obscured certain aspects influencing regional development while overstating others (Uyarra & Flanagan, 2010).
    Keywords: Regional systems of innovation, institutions,innovation policy
    JEL: B52 R1 O31
    Date: 2011
  6. By: José Belso-Martínez; Xavier Molina-Morales; Francisco Más-Verdú
    Abstract: Recently, network literature has considered the crucial importance of the resources which firm obtains through its network of external relationships. Specifically, this paper analyzes if the mediator effect of the internal resources on the association between Knowledge-Intensive Business Services (KIBS) and the growth of the New Innovative Firms (NIFs) is moderated by the belonging of the firm to an industrial cluster. The paper presents several contributions. First, this research shows like firms with higher internal resources exploit better the external resources and enhancing firm’s performance. In this way we integrate both, network strategic perspective (external resources represented by the KIBS) and those authors from Resource-Based View, giving priority to internal resources. Moreover, we prove like the moderator role played internal resources is not constant on the contrary is changing when firm belong to an industrial cluster. Additionally, we consider as a contribution the application in this context of the particular and new analysis techniques to combine mediator and moderator effects as it is suggested in Preacher et al., (2007).
    Date: 2011–09
  7. By: Lofstrom, Magnus (Public Policy Institute of California); Bates, Timothy (Wayne State University, Detroit); Parker, Simon C. (University of Western Ontario)
    Abstract: Drivers of entrepreneurial entry are investigated in this study by examining how entry into small-business ownership is shaped by industry-specific constraints. The human- and financial-capital endowments of potential entrepreneurs entering firms in various industries are shown to differ profoundly, depending on the type of venture entered. The educational credentials of highly educated potential entrepreneurs, in particular, predict avoidance of small-firm ownership in some industries as well as attraction to others. Recognizing that individuals choose an industry sector jointly with their decision to enter entrepreneurship, we find that the conventional practice of conflating different industry types in empirical analyses of transitions to entrepreneurship generates misleading findings about the determinants of entrepreneurship.
    Keywords: entrepreneurship, self-employment, capital constraints, transitions, entry barriers, business start-ups
    JEL: J24 L26 M13
    Date: 2011–11
  8. By: Reza Gheshmi (Islamic Azad University, Marvdasht Branch, Marvdasht, Iran); Hadi Rasoulzadeh (Multimedia Universiti ,Cyberjaya); Bahdor Ganjeh Khosravi (MMU); Mehrdad salehi (MSU); Ali Haj Aghapour (MMU); Roozbeh Hojabri (MMU); Mahmoud Manafi (Islamic Azad University, Marvdasht Branch, Marvdasht, Iran)
    Abstract: This paper attempts to identify the current policies and problems of IAU (Islamic Azad University) in HR practices. On the other hand this research offers new HR practices according to experts and different persons in different levels of IAU. Finally, offered HR practices are in line with strategic contributions in educational industry
    Keywords: Human Resources, Human Resources Practices, and Knowledge Sharing
    JEL: M0
    Date: 2011–10
  9. By: Shahrin Saad (College of Business, Universiti Utara Malaysia, 06010, Sintok Kedah, Malaysia); Khulida Kirana Yahya; Faizuniah Pangil
    Abstract: Since hotel industry is major contributor to the growth of Tourism Industry in Malaysia, it is vital to take into consideration of issues that are being carried by the industry. For example the high turnover of employee in hotel due to poor strategy conducted by hotels’ management. This paper explores the new strategy measurement which is the integrated business strategy dimensions in fitting the hotel industry due to the scarce of hospitality strategy at present. The new strategy is developed from the integration of four business strategy scholars. The new strategy dimensions have been renamed and items of the strategies have been tested through a pilot study. In the pilot study, a questionnaire of 29 items to measure integrated business strategy were formed. It is hoped that this measurement tool will contribute to the setting of a foundation to future hospitality strategy development and management of hotels in Malaysia
    Keywords: Hospitality strategy, business strategy, integrated business strategy and hotel
    JEL: M0
    Date: 2011–10
  10. By: Luisa Gagliardi
    Abstract: What is the effect of an increase in the stock of human capital on the innovative performance of a local economy? This paper tests the hypothesis of a causal link between an increase in the average stock of human capital, due to skilled migration inflows, and the innovative performance of local areas using British data. The paper examines the role of human capital externalities as crucial determinant of local productivity and innovative performance, suggesting that the geographically bound nature of these valuable knowledge externalities can be challenged by the mobility of skilled individuals. Skilled migration becomes a crucial channel of knowledge diffusion broadening the geographical scope of human capital externalities and fostering local innovative performance.
    Keywords: Innovation, migration, education, externalities
    JEL: O15 O31 I2 H22
    Date: 2011–11
  11. By: Friebel, Guido (Goethe University Frankfurt); Ivaldi, Marc (Toulouse School of Economics); Pouyet, Jérôme (Paris School of Economics)
    Abstract: This paper investigates various options for the organization of the railway industry when network operators require the access to multiple national networks to provide international (freight or passenger) transport services. The EU rail system provides a framework for our analysis. Returns-to-scale and the intensity of competition are key to understanding the impact of vertical integration or separation between infrastructure and operation services within each country in the presence of international transport services. We also consider an option in which a transnational infrastructure manager is in charge of offering a coordinated access to the national networks. In our model, it turns out to be an optimal industry structure.
    Keywords: Network access, Vertical separation, Transport economics
    JEL: L14 L42 L51 L92
    Date: 2011–07–18
  12. By: Nilakshi W.K Galahitiyawe (Faculty of Business & Accountancy, University of Malaya, Kuala Lumpur); Assoc. Prof. Dr. Ghazali Musa
    Abstract: Outsourcing has become a buzz word in strategic management as the competition of modern business is the competition among business networks. The reviews on the measure of outsourcing success are conceptually fragmented due to different theories that have been applied in different studies. The overall aim of this paper is to develop an integrated framework in measuring the performance of services outsourcing. The framework is derived from Social Exchange Theory. Each party responsibility in dyadic relationship over outsourcing success is examined. This is followed by the identification of the mediating effect of compatibility between partners, and moderating effect of partnership quality to the aforementioned relationship. Outsourcing performance is proposed to be evaluated from the perspectives of tactical, strategic and behavioral dimensions
    Keywords: Buyer related factors, Compatibility, Outsourcing, and Partnership quality, Services ,Supplier related factors
    JEL: M0
    Date: 2011–10
  13. By: Elisabete Tomaz; Catarina Selada; Inês Vilhena da Cunha
    Abstract: During the last decades, creative and cultural approaches have been implemented in regional and urban development strategies as key drivers for competitiveness and growth. However, research literature tends to focus mainly in big cities and metropolis, not recognizing the potential of small cities in intermediate and rural regions in fostering territorial cohesion. Nevertheless, public policies based on creativity and innovation are being experienced in non-metropolitan and rural contexts around Europe, Canada and USA focused on economic revitalisation, urban regeneration and reversing de-population trends. These approaches are mainly based on historic precedents (‘path dependency’), in the exploitation of distinctive local attributes and assets regarding culture, environment, lifestyle and quality of life, besides specific investments in infrastructures or support programmes (such as incubators, live-work houses, and specific financing systems), which intend to induce the attraction of talent and the development of creative businesses. The main aim of this investigation is to examine the recent approaches to cultural and creative economy that are being implemented by small and medium-sized cities in Europe that still remain largely unstudied. The objective is to establish a typology of creative-based strategies through the analysis of the definitions adopted by regional and local authorities as well as the justifications and planning instruments used that reflect different priority goals or purposes. The paper engages the debate on rural and urban relationships as well as on the regional interdependencies. It is also stressed the demand for adapting widespread development policies to local specificities and to build up innovative forms of governance for a fully engagement of the local actors at different levels, in search of a competitive but also cohesive society. As a result, it is our intention to contribute to the theoretical thinking about the crucial factors for the sustainability of small local economies in regional development.
    Date: 2011–09
  14. By: Reza Gheshmi (Islamic Azad University, Marvdasht Branch, Marvdasht, Iran); Ali Haj Aghapour (Multimedia Universiti ,Cyberjaya); Mehrdad salehi (MSU); Mojtaba Saeidinia (MSU); Bahdor Ganjeh Khosravi (Multimedia Universiti ,Cyberjaya); Hadi Rasoulzadeh (Islamic Azad University, Boukan Branch, Boukan, Iran); Mahmoud Manafi (Islamic Azad University, Marvdasht Branch, Marvdasht, Iran)
    Abstract: In this quantitative article research first, the main factors in customer satisfaction in online environment of Iran in hardware industry with process based-view are identified. Secondly relationships between identified factors in online environment of Iran and customer satisfaction are investigated
    Keywords: Online Environment, Customer satisfaction, and Process Based-View
    JEL: M0
    Date: 2011–10
  15. By: Toole, Andrew A.
    Abstract: While most economists believe that public scientific research fuels industry innovation and economic growth, systematic evidence supporting this relationship is surprisingly limited. In a recent study, Acemoglu and Linn (2004) identified market size as a significant driver of drug innovation in the pharmaceutical industry, but they did not find any evidence supporting science-driven innovation from publicly funded research. This paper uses new data on biomedical research investments by the U.S. National Institutes of Health (NIH) to examine the contribution of public research to pharmaceutical innovation. The empirical analysis finds that both market size and NIH funded basic research have economically and statistically significant effects on the entry of new drugs with the contribution of public basic research coming in the earliest stage of pharmaceutical drug discovery. The analysis also finds a positive return to public investment in basic biomedical research. --
    Keywords: R&D,NIH,social return,biomedical,research lags,public science,new molecular entities
    JEL: O31 O32 L65 H51
    Date: 2011
  16. By: Defever, Fabrice; Toubal, Farid
    Abstract: We investigate the roles of productivity and the specificity of inputs for the international sourcing strategy of firms which are part of a multinational network. We present a framework in which firms decide to import from a foreign independent supplier or from their related party abroad according to these two dimensions. We use a detailed survey that provides a detailed geographical breakdown of French firms' imports at the product level as well as the sourcing mode used for each transaction. The dataset also provides information to estimate the firms' productivity and their intensity in relationship-specific inputs. After controlling for countries of origin, products and sectors specific effects, the empirical results provide evidence that for the most productive multinationals the likelihood of trading through an independent supplier is higher especially if they use relationship-specific inputs intensively.
    Keywords: incomplete contracts; intra-group trade; outsourcing; productivity
    JEL: F14 F23 L22 L23
    Date: 2011–11
  17. By: Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
    Abstract: This study enumerates the implicit conclusions (i.e. rank/ importance of multi brand strategies) which are drawn from the managerial perception for various multi-brand strategies while interrogating the impact of such conclusions on the level of implementation of stated strategies. The study concludes that the strategies which have the higher perceptual rank (importance) are not necessarily implemented the most, as the strategy in terms of obtaining more shelf space has a lower comparative rank (importance as perceived by mangers) but it has the significant and highest level of implementation, while, the strategy in terms of occupying the various market segments has an insignificant level of implementations though it has a highest score of perceived importance by managers.
    Keywords: Multi-brand strategies; managerial perception; shelf-space; market segments
    JEL: A11 L1
    Date: 2011
  18. By: Hiratsuka, Daisuke
    Abstract: Production networks have been extensively developed in the Asia-Pacific region. This paper employs two micro-level approaches, case studies and econometric analysis, using JETRO's firm surveys which investigate Japanese affiliates operating in Southeast Asia. These two approaches found that production networks have extended, involving suppliers, across various nations in the Asia-Pacific region, and that production bases in host and home countries have different roles. A home country serves as a headquarters with services such as R&D, international marketing, and financing. A high tariff policy in a host country may foster domestic industries through the expansion of procurement from domestic suppliers, either indigenous or foreign, but it may discourage a country from becoming an export platform.
    Keywords: Southeast Asia, Japan, Foreign affiliated firm, Industrial management, Production management, International economic relations, Skilled differentiation, High tariff policy, Export-platform FDI
    JEL: F14 F15 F23 L23
    Date: 2011–11
  19. By: Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
    Abstract: Employee performance recognition techniques are used extensively by every organization to recognize employees, which motivates employees to put more efforts in attaining more customer satisfactions in order to achieve organizational growth. Restaurants of contemporary epoch are putting more time, money and efforts to satisfy their employees because restaurant owners and managers know that external customers can never be satisfied until own internal employees are satisfied. In this paper, various techniques of employee performance recognition, which includes awards, bonus/cash, certificates of appreciations, praise in meetings, nominations for training and job redesign has been interrogated and gauged to evaluate their possible impacts on the customer’s satisfaction. A sample of 200 restaurant managers and 4000 customers of restaurants were taken for the study from the variety of restaurants of major cities of Pakistan, which includes Karachi, Hyderabad, Lahore, Multan, Islamabad, Rawalpindi, Peshawar and Quetta. Personal survey method was used to acquire data and General Linear Model was used to interrogate the relationship between various employee performance recognition techniques and customer satisfaction. Results show that all outlined performance recognition techniques have a positive relationship with the customer satisfactions which reflects that the employee performance recognition techniques have a pivot and vital role in making customers satisfied.
    Keywords: Customer Satisfaction; Employee Performance; Performance Recognition Techniques
    JEL: M31 M2
    Date: 2011
  20. By: Gert-Jan Linders; Tatyana Bulavskaya; Henri De Groot; Ferdinand Paraguas
    Abstract: Discussion on the possibilities for and barriers to income convergence and catch-up growth is at the heart of the debate on European regional economic policy. This study presents an empirical analysis of the determinants of regional productivity growth in Europe, using the most recent Cambridge Econometrics regional database, EU KLEMS growth and productivity accounts and EuroStat R&D data. We apply a reduced-form empirical specification for semi-endogenous productivity growth that allows for differences in steady state income levels and long-run growth rates. Productivity growth in a region depends on its level of human capital, the investments in R&D, and the productivity gap with the technology frontier. Empirical findings show that these factors are interrelated. Apart from a technology gap, absorptive capacity is important to realize catch-up. Both convergence and divergence of productivity across regions are possible. Results show that all considered factors have significant effect on disparity in regional productivity growth, although effects across manufacturing and service sectors are different. The estimated model also features stable dynamic properties in response to an exogenous shock. Keywords: Semi-endogenous Growth, Regional Convergence, International Transfer of Technology, human capital, R&D.
    Date: 2011–09
  21. By: Albert Plugge (Faculty of Technology, Policy and Management Delft University of Technology, The Netherlands); Jacques Brook (Maastricht School of Management, the Netherlands)
    Abstract: Since firms’ rationale to outsource parts of their IT function are mainly based on cost reduction, many vendors applied a high level of standardization in organizing the delivery of IT services to decrease their cost level. As the environment of firms changes frequently, it is of key importance for vendors to assess how these exogenous developments affect their organizational structure. Changing the organizational structure, however, may affect the cost structure of the outsourcing arrangement over time. Drawing on the Transaction Cost Economics the objective of our study is to examine how environmental uncertainty and asset specificity affect vendors’ functional organizational structure and, in turn, influences ex-post transaction costs. A retrospective view on a case study was investigated from the perspective of a global outsourcing vendor. Studying various client episodes and the vendor’s response we find that an increase of the degree of asset specificity leads to higher transaction costs. Our results suggest that the vendor’s functional organizational structure can be considered as a mediator in minimizing the ex-post transaction costs. Executives and managers need to be aware that uncertainty and asset specificity may lead to an increase of the coordination costs. Therefore, vendors should need to reassess their organizational structure regularly and implement adjustments to control their ex-post transaction costs. The paper concludes with implications for practitioners that can help vendors in managing their cost structure.
    Keywords: outsourcing, strategic management, organizational structure, transaction cost
    JEL: M19
    Date: 2011–09
  22. By: Kozhurin, Fedir
    Abstract: A new management technology, based on modern developments in macroeconomics, was offered. It is aimed at the highest issues of state and society governing as well as finding methods of their solving. The grounding of necessity of separate supramacroeconomical level of management establishment was made; the methods and tools on its realization were developed. Examples of their implementation in Ukraine are still being interpreted.
    Keywords: supramacroeconomic; supramacroeconomics; macroeconomics; economic; economics; technology; management; development
    JEL: B00 A10 E60 C13 B40 H40 P41 C14 C02 C80 B41 C01
    Date: 2011–11–04
  23. By: Frank Neffke; Martin Henning
    Abstract: We investigate the extent to which a local industry is affected by an overrepresentation of related industries in the local economy. We focus on two types of inter-industry relatedness, namely, the degree to which two industries can employ a similarly skilled labor force and the degree to which two industries are connected in the value chain. We decompose changes in the employment of a local industry into the employment generated or destroyed in incumbent plants and the employment changes due to plant entry and exit. Furthermore, we classify new plants by the type and geographical origins of the plants’ founders. We find that entrepreneurs have a stronger tendency than existing firms to set up plants in local industries that can draw on a strong local presence of labor market and value chain linked industries. The same holds for local founders compared to founders from outside the region. In the second part of the paper, we investigate the relative importance of the two relatedness types and whether the two types reinforce each other. We find that, in general, the growth of old plants and the employment generated in new plants is more strongly associated with the relatedness through the labor market. Moreover, for in new plant formation, the two relatedness types indeed tend to reinforce each other. In fact, local value chain linkages seem to be only important if client and supplier firms can also engage in labor sharing.
    Date: 2011–09
  24. By: Dubois, Pierre; de Mouzon, Olivier; Scott Morton, Fiona; Seabright, Paul
    Abstract: This paper quanti…es the relationship between market size and innovation in the pharmaceutical industry. We estimate the elasticity of innovation, as measured by the number of new chemical entities appearing on the market for a given disease class, to the potential market size represented by the willingness of su¤erers of diseases in that class (and others acting on their behalf such as insurers and governments) to spend on their treatment during the patent lifetime. We …nd positive signi…cant elasticities with a point estimate under our preferred speci…cation of 25.2%. This suggests that at the mean market size an additional $1.8 billion is required in additional patent life revenue to induce the invention of one additional new chemical entity. An elasticity substantially and signi…cantly below one-half is also a plausible implication of the hypothesis that innovation in pharmaceuticals is becoming more di¢ cult and expensive over time, as costs of regulatory approval rise and as the industry runs out of "low hanging fruit".
    Keywords: Innovation, Market Size, Elasticity, Pharmaceuticals
    JEL: O31 L65 O34
    Date: 2011–04
  25. By: Nabeshima, Kaoru
    Abstract: Two new developments in the global landscape - growing concerns towards global warming and the rising prices of commodities – require countries to craft new growth strategies. These recent developments in the global market offer fresh industrial opportunities as well as difficulties for developing countries embarking on industrialization. In this paper, we examine current developments in global market that would affect industrialization prospects in East Asia and explores development strategies that are suitable for development based on export oriented manufacturing industries in a green world.
    Keywords: East Asia, Southeast Asia, Industrialization, Climatic change, Economic development, Development plans, Green growth, Environment and trade
    JEL: F18 O14 Q01
    Date: 2011–11
  26. By: Horstschräer, Julia
    Abstract: This paper analyzes how high-ability students respond to different indicators of university quality when applying for a university. Are some quality dimensions of a ranking, e.g. research reputation or mentoring more important than others? I estimate a random utility model using administrative application data of all German medical schools. As identification relies on the variation in quality indicators over time, I can disentangle the response to changes in quality indicators from the common knowledge regarding the overall university attractiveness. Results show that the ranking provides more relevant information in the quality dimensions mentoring, infrastructure and students' satisfaction than with respect to research. --
    Keywords: Higher education,university choice,college admission,conditional logit
    JEL: I21 I23 I28 C25
    Date: 2011
  27. By: R. AEBERHARDT (Insee); I. BUONO (Banca d'italia); H. FADINGER (Department of Economics,University of Vienna)
    Abstract: We consider a model where exporting requires finding a local partner in each market. Contracts are incomplete and exporters must learn the reliability of their partners through experience. In the model, export behavior is state-dependent due to matching frictions, although there are no sunk costs. Better legal institutions alleviate contracting frictions especially in sectors with large contracting problems. Thus, measures of legal quality help reduce the risk that a match between an exporter and a local distributor splits, and they are all the more effective in sectors that are more exposed to hold-up problems. Moreover, the breaking risk declines with the age of the relationship, as unreliable partners are weeded out. We find strong evidence in favor of the model's predictions when testing them with a French dataset that includes information on firm-level exports by destination country.
    Keywords: Trade Dynamics, Learning, Incomplete Contracts, State dependence, Firm-level Trade Data
    JEL: F12 F14 L14
    Date: 2011
  28. By: Marie Ferru; Michel Grossetti; Marie-Pierre Bès
    Abstract: Social embeddedness appears to be a promising way to analyze knowledge collaborations, notably to better understand their build up and their spatial patterns. Nevertheless, measurement problems and an over-territorialized conception of the notion exist. When studying the formation of these partnerships, authors have underlined the embeddedness of innovators in social ties as a major factor (Walker, Kogut, 1994 ; Zucker et al., 1998); others have shed light on institutional devices (Ponomariov, Boardman, 2010 ; Eom, Lee, 2010), but few have integrated both relational and institutional forms of embeddedness. Moreover, “embeddedness is mostly conceived of as a spatial concept related to the local and regional levels of analysis†(Hess, 2004): scholars argued (Moka et al., 2007) and showed (Fischer, 1982 ; Wellman, 1996; Grossetti, 2002) that social ties easily build-up in the neighborhood. They thus conclude social embeddedness favors local partnerships without demonstrating it really. Finally at the empirical level, precise data are missing to identify social embeddedness (Giuri, Mariani, 2007). Therefore, regarding the existing studies, “the analytical scales and the spatiality of embeddedness needs to be scrutinized†(Hess, 2004) theoretically and empirically to determine “who is embedded, in what and what is so spatial about it ?†(Pike et al., 2000). We propose here to address this deficit thanks to the formulation of a method robust enough. In this perspective, an analytical framework which does not postulate the social network hegemony is needed. We realized further theoretical refinements by introducing the concept of « coordination resources » to indicate modalities that permit connections between actors without using interpersonal ties. To identify embeddedness effects, we then present an original method essentially based on interviews. We use it to a group of 264 cases of science-industry collaborations realized in France. Several results are revealed thanks to statistical and econometric treatments. We reaffirm the major weigh of social embeddedness in the build-up of partnerships and the complementary role of coordination resources. Social embeddedness appears to be independent from the partners features. It nevertheless impacts the geography of the partnership although it is not possible to associate systematically social embeddedness and local collaborations.
    Date: 2011–09
  29. By: Tomaso Pompili; Michela Martinoia
    Abstract: Empirical analyses highlight local structural features (territorial capital) as constraints on regional growth and interregional convergence processes, but scant attention is devoted to traditional localised resources and specifically the natural and cultural heritage. However, only the application of know-how embodied in human capital to resources provides value. Specifically, heritage becomes economically relevant through human capital acting via tourist, recreational and cultural activities. Although, because of its service exporting nature, tourism contributes to economic growth and job creation similarly to manufacturing, the literature concerned manufacturing and rarely studied tourism or extended results to it. Besides, in Europe tourism is the market activity most favouring policentricity, territorial cohesion and equity. On the other hand, heritage valorisation responding to tourist service demand has adverse effects on development (congestion) and environmental quality / resource consumption (heritage dissipation); these partly offset strictly economic benefits and over time weaken the destination’s pull, hence its value and its population’s welfare. Our goal is to analyse the role of territorial capital, and specifically of intangibles such as natural and cultural capital, in regional growth processes and in local response processes to exogenous crises, by building a national database of territorial capital in Italian provinces, containing synthetic endowment indicators for natural and cultural heritage, human capital, and structure and distribution of tourism and leisure industries. Our methodology includes the application of multivariate analyses, with state-of-the-art techniques. We use available European and national databases, augmented by ad hoc integrations if and when needed. The study area is Italy; the optimal tier is NUTS3, i.e. provinces, in Italy. The time reference is 1990-2010, to ensure a structural long-term approach. The paper is organised in the following way: - an initial section outlines the original data on 103 provinces, providing 33 proxy indicators of which major univariate statistics and correlations are explored; - a first main section reduces indicators into 5 synthetic indicators, by means of factor analysis; - a second main section reduces provinces into 11 ideal types, by means of cluster analysis; - a final section compares and interprets results, also with reference to 2007-2009 economic dynamics.
    Date: 2011–09
  30. By: Andor, Mark; Hesse, Frederik
    Abstract: In certain circumstances, both researchers and policy makers are faced with the challenge of determining individual efficiency scores for each decision making unit (DMU) under consideration. In this study, we use a Monte Carlo experimentation to analyze the optimal approach to determining individual efficiency scores. Our first research objective is a systematic comparison of the two most popular estimation methods, data envelopment (DEA) and stochastic frontier analysis (SFA). Accordingly we extend the existing comparisons in several ways. We are thus able to identify the factors which influence the performance of the methods and give additional information about the reasons for performance variation. Furthermore, we indicate specific situations in which an estimation technique proves superior. As none of the methods is in all respects superior, in real word applications, such as energy incentive regulation systems, it is regarded as best-practice to combine the estimates obtained from DEA and SFA. Hence in a second step, we compare the approaches to transforming the estimates into efficiency scores, with the elementary estimates of the two methods. Our results demonstrate that combination approaches can actually constitute best-practice for estimating precise efficiency scores. --
    Keywords: efficiency,data envelopment analysis,stochastic frontier analysis,simulation,regulation
    JEL: C1 C5 D2 L5 Q4
    Date: 2011
  31. By: Hassan, Daniel; Monier-Dilhan, Sylvette; Orozco, Valérie
    Abstract: Geographical Indications (GIs) are considered as upmarket products because they are based on tradition and convey information about their geographical origin. Otherwise, the limitation of the geographical areas devoted to GIs and the exclusivity they benefit on the product lead to suspicions of monopoly power. Quality and market power should however reflect a stronger attachment, making consumers less price sensitive than for standard goods. This research aims to compare theses conjectures to empirical measures concerning the French cheese market. Price elasticities are computed from a demand model on 21 products, 11 Protected Designation of Origin (PDO) products and 10 non PDOs. The results are counterintuitive, PDOs being as price elastic as or more price elastic than standard products. This finding thus challenges the widespread idea that PDOs systematically correspond to high quality. It also has important implications in terms of competition policy, showing that PDO cheeses suppliers cannot decide on price increases without suffering large reductions in demand.
    Keywords: Geographical indications, demand model, price elasticities, competition policy
    JEL: C51 D12 Q18
    Date: 2011–03
  32. By: Verpoorten, Marijke
    Abstract: Rich measures of micro-level violent conflict intensity are key for successfully providing insight into the legacy of civil war. Yet, the debate on how exactly conflict intensity should be measured has just started. This paper aims to fuel this awakening debate. It is demonstrated how existing and widely available data - population census data - can provide the basis for a useful measure of micro-level conflict intensity: a fine Wartime Excess Mortality Index (WEMI). It is argued that the proposed measure is particularly well suited for studying the legacy of civil wars that are characterized by a large death toll and by different forms of violence. The measure is illustrated for the case of Rwanda and it is shown that, in a straightforward empirical application of the impact of armed conflict on schooling, the estimated impact varies widely across WEMI and a large set of alternative conflict intensity measures for Rwanda. While the conflict intensity measure proposed in this paper requires further study and one probably needs a combination of various methodologies, this finding suggests the need for a careful understanding of what underlies the different measures and methodologies in use.
    Date: 2011–09

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