nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒01‒10
seventeen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Results of the 2009 Survey of Innovation Activities (SIA) By Aldaba, Rafaelita M.; Albert, Jose Ramon G.; Quimba, Francis Mark A.; Yasay, Donald
  2. Universities as Research Partners in Publicly Supported Entrepreneurial Firms By Audretsch, David B.; Leyden, Dennis P.; Link, Albert N.
  3. A Contingency Perspective on Centralization of Supply Chain Decision-making and its Role in the Transformation of Process R&D into Financial Performance By Krotov, Konstantin V.; Germain, Richard N.
  4. Explaining TFP at firm level in Italy. Does location matter? By Aiello, Francesco; Pupo, Valeria; Ricotta, Fernand
  5. Innovation in the Automotive Sector of the Philippines By Quimba, Francis Mark A.; Rosellon, Maureen Ane D.
  6. Defence firms facing liberalization: innovation and export in an agent-based model of the defence industry By Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
  7. Firms' organizational modes with productivity heterogeneity, demand uncertainty and production capacity By Sun, Churen; Tian, Guoqiang
  8. Innovative and absorptive capacity of international knowledge : an empirical analysis of productivity sources in Latin American countries By Castillo, Leopoldo Laborda; Salem, Daniel Sotelsek; Guasch, Jose Luis
  10. The impact of human capital outsourcing on human capital management practices in Karachi pharmaceutical industry By Rana, Tariq Mehmood; Syed, Qamar Ali Zaidi; Muhmmad, Sajid; Herani, Gobind M.
  11. Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data By Michael Beckmann; Istvàn Hegedüs
  12. Exporting, R&D Investment and Firm Survival By Ratbek Dzhumashev; Vinod Mishra; Russell Smyth
  14. High-speed rail and air transport competition in Western Europe: A supply-oriented perspective By Frédéric Dobruszkes
  15. Director Characteristics and Firm Performance By Pascal Gantenbein; Christophe Volonté
  16. Instabilités des coopérations entre firmes multinationales et entreprises locales : configurations des alliances et issues stratégiques By Cheriet, F.
  17. Management Practices Across Firms and Countries By Nicholas Bloom; Christos Genakos; Raffaella Sadun; John Van Reenen

  1. By: Aldaba, Rafaelita M.; Albert, Jose Ramon G.; Quimba, Francis Mark A.; Yasay, Donald
    Abstract: In this paper, results of the 2009 Survey of Innovation Activities are described and discussed. The term innovation, traditionally associated with research and development, has evolved to mean the implementation of new or significantly improved goods and services, production process, marketing, or organizational methods in a firm. Innovation data gathered in the survey help better understand innovation and its relation to economic growth, and provide indicators for benchmarking national performance. Results of the survey suggest that more than half of sampled firms are innovators, with larger firms innovating more than smaller ones. Firms vary in innovation activity by study areas. Effects of innovation are largely customer-driven. Firms suggest cost factors to be the most important barrier to innovation. Government support is found to be limited, particularly for product innovations, to medium-sized firms. Knowledge and cooperation networks for innovation are rather weak. Firms do not access technical assistance from the government and research institutions. Cooperation is also low between the establishments and academe. Firms tend to cooperate more with establishments within their enterprise, their customers and suppliers. The results point to the need to articulate the innovation strategy to firms, and to improve information dissemination on programs available to assist firms. Networking, linkages, and collaboration among the government, industry associations, and universities and research institutions must be also be further enhanced.
    Keywords: innovation, Philippines, process innovation, small and medium enterprises (SMEs), documentary stamp tax, stock market transactions, tax elasticity, product innovation, organizational innovation, marketing innovation
    Date: 2011
  2. By: Audretsch, David B. (Indiana University); Leyden, Dennis P. (University of North Carolina at Greensboro, Department of Economics); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Partnerships between universities and industrial firms can play a key role in enhancing competitiveness because they provide a conduit for the spillover of knowledge from the academic organization where knowledge is created to the firm where it is transformed into innovative activity. We set forth in this paper a model of industry/university participation, and we test the model empirically using research project data on entrepreneurial firms that were funded through the U.S. Department of Energy’s Small Business Innovation Research (SBIR) program. We find that larger firms are more likely to be involved in a research partnership with a university, in general, as are firms with founders who have an academic background. We find the latter result holds across disaggregated types of university partnerships, as well. We find no empirical evidence that the size of the SBIR award influences the likelihood of a research partnership.
    Keywords: Research partnership; Innovative behavior; Entrepreneurship; Industry/university relationship
    JEL: L24 L26 O31 O32 O34
    Date: 2012–01–04
  3. By: Krotov, Konstantin V.; Germain, Richard N.
    Abstract: The research examines whether centralized supply chain decisionmaking within the firm plays a role in how the firm transforms investments in process research and development (R&D) into financial performance. This transformation includes the process investment - financial performance chain, which consists of process R&D funds, applied supply chain knowledge, supply chain process variance, and financial performance. In addition, the model includes production technology routineness, size, and integration. The results, based on a sample of 204 manufacturers operating in the United States, suggest that centralization cleaves the process investment - financial performance chain at the connection of supply chain process variance and financial performance. The net effect is that firm scale, production technology routineness, integration, and process R&D investment predict financial performance only when supply chain decision-making is decentralized within the firm. Firm scale, production continuity, integration, and process R&D investment confer no performance advantage in centralized firms.
    Keywords: centralization of supply chain, contingency perspective,
    Date: 2011
  4. By: Aiello, Francesco; Pupo, Valeria; Ricotta, Fernand
    Abstract: This study considers how firms’ internal variables and regional factors affect the total factor productivity of Italian manufacturing firms. Due to of the hierarchical structure of data in estimation, we employ a multilevel model. Results, which refer to 2006, show the importance of firm-specific determinants of TFP, but at the same time confirm the role of regional context in explaining the gap in TFP levels which exist between the South and the North of Italy. In this respect, we show that northern firms are localised in regions with adequate endowment of infrastructure, with efficient public administration and with high R&D intensity and, as a result of these factors, perform better than firms operating in less well endowed regions.
    Keywords: Manufacturing Firms; Total Factor Productivity; Italian Regional Divide; Multilevel Models
    JEL: R11 O14 L60
    Date: 2011–12–30
  5. By: Quimba, Francis Mark A.; Rosellon, Maureen Ane D.
    Abstract: The performance of the Philippine automotive industry has steadily improved after the Asian crisis. However, relative to the performance of the automotive industry in other countries, the automotive sector in the country has languished. To understand the challenges being faced by the automotive assemblers, as well as parts and components manufacturers, the innovation capability and activities of selected establishments are analyzed following the framework developed by Bessant. This paper finds that despite having an awareness of the importance of technology and upgrading, some of the automotive firms are not able to translate this awareness into other technology activities.
    Keywords: Philippines, automotive industry, reserve currency, innovation activities
    Date: 2011
  6. By: Blom, Martin; Castellacci, Fulvio; Fevolden, Arne
    Abstract: The paper presents an agent-based simulation model of the defence industry. The model resembles some of the key characteristics of the European defence sector, and studies how firms in this market will respond to the challenges and opportunities provided by a higher degree of openness and liberalization in the future. The simulation analysis points out that European defence firms will progressively become more efficient, less dependent on public procurement and innovation policy support, and more prone to knowledge sharing and inter-firm collaborations. This firm-level dynamics will in the long-run lead to an increase in the industry’s export propensity and a less concentrated market.
    Keywords: Defence industry; liberalization; EU; export; innovation; agent-based simulation model
    JEL: C6 F5 M2 F1 O3 L1
    Date: 2012–01–03
  7. By: Sun, Churen; Tian, Guoqiang
    Abstract: This paper investigates how firms' demand uncertainty with capacity constraints and their productivity heterogeneity affect their making-or-buying organizational choices in a general equilibrium framework with incomplete contracts. It shows that a final-good producer may adopt integrating a part of the production of its intermediate input in-house and outsource it at arm's length domestically or abroad simultaneously. Moreover, Five organizational modes, exiting the market, outsourcing in the North, outsourcing in the South, integrating and outsourcing in the North simultaneously, and integrating in the North and outsourcing in the South simultaneously, in turn occur with increase of firm-level productivity, as well as its demand uncertainty. Influences of uncertainty and productivity on prevalence of various organizational modes are also explored.
    Keywords: Uncertainty; organizational mode; productivity heterogeneity; incomplete contract; outsourcing; integration
    JEL: D23 F23 F12
    Date: 2011–06–22
  8. By: Castillo, Leopoldo Laborda; Salem, Daniel Sotelsek; Guasch, Jose Luis
    Abstract: This paper examines two sources of global knowledge spillovers: foreign direct investments and trade. Empirical evidence demonstrates that foreign direct investment and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. The paper proposes the terms research and development and labor quality to capture the innovative and absorptive capacity of the country. The spillover effects in productivity are analyzed using a stochastic frontier approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output oriented index, in order to evaluate the specific effect in technical change, technical efficiency change, and scale efficiency change. Using country-level data for 16 Latin American countries for 1996-2006, the empirical analysis shows positive productivity spillovers from foreign direct investment and trade only when the country has absorptive capacity in terms of research and development. Foreign direct investment and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change.
    Keywords: Economic Theory&Research,Labor Policies,E-Business,Foreign Direct Investment,Emerging Markets
    Date: 2012–01–01
  9. By: Peter Friedrich; Chang Woon Nam
    Abstract: This study investigates major features of land-use strategies that German municipalities have adopted to attract innovative firms (IFs). In this context a two-stage competition model is introduced: firstly a municipality should solve economic and interest conflicts related to its preference for high-quality sites for IFs against the land needs of simple manufacturers. The second part of the model describes location competition among municipalities with high-quality sites for the location of IFs. German municipal land-use policy is well combined with industrial policy; this paper reveals the strengths and weaknesses of the urban real estate market in Potsdam, and its future opportunities and risks as the location of different economic activities are determined in the planning process. Science Park Adlershof (Berlin) is an output of the spatial-oriented technology policy, which creates incubators for innovative SMEs. Municipalities also cooperate, since it provides larger sites, generates economies of scale and contributes to a smooth suburbanisation process (see Leipzig).
    Keywords: Land-use Policy, Municipal Regional Competition, Two-stage Competition Model, Zoning, Technology Park
    JEL: H42 H54 L3 O18 O3 R14 R52 R58
    Date: 2011
  10. By: Rana, Tariq Mehmood; Syed, Qamar Ali Zaidi; Muhmmad, Sajid; Herani, Gobind M.
    Abstract: Purpose: The aim of this research is to examine relationship between Human Capital Management (HRM) and Human Resource (HR) Outsourcing in the Pharmaceutical sector. The specific objective is to find out that how important is HRM for an Organization to perform its operations more efficiently, and at what level Human Resource Outsourcing is affecting it. Literature review: Literature review shows that HR outsourcing has positive impact on HRM for an Organization to perform its operations more efficiently. Methods: In order to conduct this research the methodology that has been used is quantitative in nature and closed ended Questionnaire was used to collect data. The universe of study was the employees of Pharmaceutical industry in Karachi Pakistan. The responses of each respondent were thoroughly analyzed by using SPSS software, and the results show that there is a negative relationship between the Human Capital Management (Gaining Knowledge, Current Trend of Business Environment, Organization Managing Their Human Asset and Practices and Policies Regarding Human Resource) and HR Outsourcing. Conclusions: It is concluded that all Independent Variables have the strongest Positive correlation with each other. There are lots of constraints, which any organization faces in terms of time, finance and, in some cases factors like strategic focus.
    Keywords: Human Capital Management; Karachi; Pharmaceutical; Outsourcing
    JEL: L26 G32 M12 D24
    Date: 2011–12–31
  11. By: Michael Beckmann; Istvàn Hegedüs (University of Basel)
    Keywords: Trust-based working time, working time flexibility, firm performance
    JEL: J24 J81 M50
    Date: 2011
  12. By: Ratbek Dzhumashev; Vinod Mishra; Russell Smyth
    Abstract: This paper examines the effect of exporting on firm survival for a panel of Indian IT firms. We show that exporting has competing effects on firm survival. On the one hand, exporting and investing in productivity are complementary activities, while on the other exporting activity is an additional source of uncertainty for the firm. We show that both effects influence survival, but operate at different points in time. Specifically, the hazard facing exporters is higher than non-exporters in the initial phase following entry into the export market, reflecting the fact that exporters are particularly vulnerable to shocks in the start-up phase. However, over time, exporters benefit more from productivity gains than non-exporters and the hazard facing exporters falls below that confronting non-exporters.
    Keywords: India, Firm survival, Information Technology, R&D, Exports
    JEL: L25 L86 C41
    Date: 2011–12
  13. By: Vinod Mishra; Rajabrata Banerjee; Tania Dey
    Abstract: This paper analyzes how influence activities in the form of signal jamming affect the capital budgeting process of corporate organizations in Australia. First, the relationship between investment in the smallest division and its past performances is tested. The relationship is defined as investment sensitivity. Second, how the investment sensitivity varies as influence problems become more severe is examined. Finally, the relationship between compensation incentives for the large division manager and the investment sensitivity is reviewed. The findings suggest that investment sensitivity is positive for Australian firms. Mixed evidence is obtained between investment sensitivity and increase in the severity of influence problems when measures such as, relatedness and number of divisions are used. With increase in number of divisions, influence activity becomes more severe and headquarters relies more on public signal. However, with the increase in relatedness across divisions, influence problem increases and headquarters relies more on private information from manager of the large division. Evidence suggest that Australian firms provide high short term incentive payments to managers of large divisions to mitigate the influence activity problems and thus rely more on managerial recommendations for investing in smallest division as compared to noisy accounting measures.
    Keywords: Influence activity, capital budgeting, compensation incentives
    JEL: G31 M52 J33 D82
    Date: 2011–12
  14. By: Frédéric Dobruszkes
    Abstract: Increasingly air transport growth raises the question of its impact on the environment. Public authorities and researchers are relying more and more on high-speed trains (HSTs), whose efficiency is supposed to lead to a modal shift from airplanes. However, most transport studies focus on the evolution of demand rather than supply, although it is basically the latter that determines environmental damage. In light of this fact, this paper aims to compare the overall dynamics in the supply of air transport in Europe compared to the HST supply and to examine empirically five city-pairs. The development of high-speed rail remains limited compared to the increase of air services. For a given city-pair, the decline in the number of flights depends on various conditions, including length of the HST journey and the strategies adopted by the airlines. Some carriers reduce their supply in terms of the number of seats but increase the number of flights in order to compete more effectively with the HSTs. Moreover, the competition between low-cost airlines and HSTs should be kept in mind and re-examined in a few years.
    Keywords: High-speed train; High-speed rail; Air transport; Intermodal comp
    Date: 2011
  15. By: Pascal Gantenbein; Christophe Volonté (University of Basel)
    Keywords: Corporate governance: Board of directors; Director characteristics, Education and business experience
    JEL: G30 G34 G38
    Date: 2011
  16. By: Cheriet, F.
    Abstract: Our paper aims to analyze the relationship between asymmetric alliance instability forms and motives on the one hand, and secondly to estimate the effects of the alliance configuration (external environment, relationships between parents and performance) on how to change the allocation of capital between partners of an asymmetric relationship. This article is based on the contingency approach of instability (Ghoshal, Bartlett, 1990), with an analysis of the strategy of the multinational firm, as the main outcomes condition of cooperation with small size partners. The empirical study was conducted through a review of 105 cases of unstable strategic alliances formed between MNCs and local food enterprises in the Mediterranean. Our results support the multidimensional and dynamic analysis of asymmetric cooperative relationships issues. ...French Abstract : L’objet de cet article est d’analyser les liens entre les formes et les motifs d’instabilité d’une part, et d’estimer d’autre part les effets des facteurs de la configuration de l’alliance (environnement externe, relations entre les parents et performance de la relation) sur les modalités de modification de la répartition du capital entre les partenaires d’une relation asymétrique. Cet article s’inscrit dans une approche de la contingence des facteurs d’instabilité (Ghoshal, Bartlett, 1990), avec une analyse de la stratégie de la firme multinationale comme déterminant principal des issues des coopérations avec des partenaires de petites tailles. L’étude empirique a été menée à travers l’examen de 105 cas d’alliances stratégiques instables, formées entre des firmes multinationales et des entreprises locales agroalimentaires en Méditerranée. Nos résultats soutiennent l’analyse multidimensionnelle et dynamique des issues des relations coopératives asymétriques.
    JEL: L21 L24 L66 M16
    Date: 2011
  17. By: Nicholas Bloom; Christos Genakos; Raffaella Sadun; John Van Reenen
    Abstract: For the last decade we have been using double-blind survey techniques and randomized sampling to construct management data on over 10,000 organizations across twenty countries. On average, we find that in manufacturing American, Japanese, and German firms are the best managed. Firms in developing countries, such as Brazil, China and India tend to be poorly managed. American retail firms and hospitals are also well managed by international standards, although American schools are worse managed than those in several other developed countries. We also find substantial variation in management practices across organizations in every country and every sector, mirroring the heterogeneity in the spread of performance in these sectors. One factor linked to this variation is ownership. Government, family, and founder owned firms are usually poorly managed, while multinational, dispersed shareholder and private-equity owned firms are typically well managed. Stronger product market competition and higher worker skills are associated with better management practices. Less regulated labor markets are associated with improvements in incentive management practices such as performance based promotion.
    Keywords: management, organization, and productivity
    JEL: L2 M2 O14 O32 O33
    Date: 2011–12

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