nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒01‒18
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Knowledge networking and growth in service firms By B. SCHOONJANS; P. VAN CAUWENBERGE; H. VANDER BAUWHEDE
  2. Globalization, entrepreneurship and the region By Roy Thurik; David Audretsch; Isabel Grilo
  3. Strategic Analysis of Competitiveness and Innovation in the Tourism and Telecommunications Industries: Opportunities and Challenges in Latin America and the Caribbean By Celso Garrido
  4. The Interplay of Human and Social Capital in Shaping Entrepreneurial Performance: The Case of Vietnam By E. Santarelli; H. T. Tran
  5. New Methods for the Analysis of Links between International Firm Activities and Firm Performance: A Practitioner’s Guide By Joachim Wagner
  6. Green growth, technology and innovation By Dutz, Mark A.; Sharma, Siddharth
  7. Innovation assessment in a local branch of a rail transport manufacture industry - A case study By Nuno Boavida; Susana Martins Moretto
  8. Examining the decision to spin off new corporate ventures By Isabel Pizarro; Julio DeCastro; Jose Luis Galán
  9. Innovation and diffusion in risky industries under liability law: the case of “double-impact” innovations. By Julien Jacob
  10. Science and Technology Studies: Exploring the Knowledge Base By R. Martin, Ben; Nightingale, Paul; Yegros-Yegros, Alfredo
  11. Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature By Marco Vivarelli
  12. Rules of origin and development of regional production network in Asia: case studies of selected industries By Biswajit Nag; Debdeep De
  13. Synergies between Digital Social Networks (DSN) and e-commerce: an application of the Delphi method By Sebastien Nouet; Jean Eric Pelet; Ballantyne David
  14. Technical productivity analysis for cement industry at firm level By Binaykumar Ray; B. Sudhakara Reddy
  15. Knowledge Accumulation within an Organization By Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran

    Abstract: This paper empirically assesses whether knowledge networking affects the growth of small service firms. More specifically, using a large, unbalanced panel data set for the period 1992- 2009, we investigate whether participation in a knowledge network called PLATO is positively related to service firm growth. Our results show that knowledge networking has a highly significant positive effect on the growth in net assets and added value of service firms. Furthermore, we demonstrate that the positive effect of knowledge networking on firm growth is significantly larger for service than for manufacturing firms, indicating that industry drives networking success.
    Keywords: networking, growth, service sector, SME, knowledge
    Date: 2011–10
  2. By: Roy Thurik; David Audretsch; Isabel Grilo
    Abstract: The present document analyzes the linkages between globalization, entrepreneurship and the role of regions. After dealing with the meaning of globalization, the regional dimension of the response to globalization is described where downsizing, knowledge spillovers and agglomeration are the essential phenomena. Next, it is shown how these developments have led to the emergence of new entrepreneurial activities. Subsequently, more details are given on the effects of the information and communication (ICT) revolution on the organization of industry in a globalized economy. Finally, it is concluded that policies promoting both knowledge investments as well as entrepreneurship have become prominent for many regions in the most developed countries.  
    Date: 2012–01–09
  3. By: Celso Garrido
    Abstract: This paper analyzes the trends and challenges of competitiveness and innovation in the tourism and telecommunications industries of Latin America and the Caribbean from a strategic and global perspective. This analysis aims to identify the conditions and opportunities for these industries in this context, in particular for small- and medium-sized enterprises and the economic development of the region. This paper was presented at the Fifth Americas Competiveness Forum for the Inter-American Development Bank and Compete Caribbean Santo Domingo, Dominican Republic, October 5-7, 2011.
    Keywords: Private Sector :: SME, Private Sector :: Public Private Partnerships, Science & Technology :: New Technologies, Science & Technology :: Telecommunications, Economics :: Economic Development & Growth, Infrastructure & Transport :: Tourist Facilities, telecommunications, Latin America and the Caribbean, competitiveness, tourism
    Date: 2011–12
  4. By: E. Santarelli; H. T. Tran
    Abstract: This study investigates the effects of human capital, social capital and their interaction on the performance of 1,398 Vietnamese new-born firms. Operating profit is used as the measure of success. Human capital is captured by individual-level professional education, start-up experience, and learning. Whereas the first two dimensions of human capital are measured with traditional indicators, we define learning as ability to accumulate knowledge to conduct innovation activities (new product introduction, product innovation and process innovation). Social capital is measured as benefits obtained from personal strong-tie and weak-tie networks. Key findings are three-fold: (i) human capital strongly predicts firm success, with learning exerting a statistically significant positive impact on operating profit; (ii) benefits from weak ties outweigh those from strong ties; (iii) interaction of human capital and social capital displays a statistically significant positive effect on new-firm performance.
    JEL: L26 L25 L14 J24 O53
    Date: 2012–01
  5. By: Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany)
    Abstract: This paper is a non-technical introduction to the use of three micro-econometric tools that have only recently been applied in empirical investigations of the links between international firm activities and firm performance. It shows why it is important to use these methods, how to use them in practice and which new insights are found in empirical applications. Topics include the role of extremely different firms (or outliers) in the computation of performance premia of internationally active firms; different performance premia over the distribution of the performance variable when unobserved heterogeneity matters; and the analysis of causal effects of different intensities of international firm activity on firm performance.
    Keywords: Robust fixed effects estimation, fixed-effects quantile regression, generalized propensity score, international firm activity, firm performance
    JEL: F14 C21 C23
    Date: 2012–01
  6. By: Dutz, Mark A.; Sharma, Siddharth
    Abstract: The paper explores existing patterns of green innovation and presents an overview of green innovation policies for developing countries. The key findings from the empirical analysis are: (1) frontier green innovations are concentrated in high-income countries, few in developing countries but growing; (2) the most technologically-sophisticated developing countries are emerging as significant innovators but limited to a few technology fields; (3) there is very little South-South collaboration; (4) there is potential for expanding green production and trade; and (5) there has been little base-of-pyramid green innovation to meet the needs of poor consumers, and it is too early to draw conclusions about its scalability. To promote green innovation, technology and environmental policies work best in tandem, focusing on three complementary areas: (1) to promote frontier innovation, it is advisable to limit local technology-push support to countries with sufficient technological capabilities -- but there is also a need to provide global technology-push support for base-of-pyramid and neglected technologies including through a pool of long-term, stable funds supported by demand-pull mechanisms such as prizes; (2) to promote catch-up innovation, it is essential both to facilitate technology access and to stimulate technology absorption by firms -- with critical roles played by international trade and foreign direct investment, with firm demand spurred by public procurement, regulations and standards; and (3) to develop absorptive capacity, there is a need to strengthen skills and to improve the prevailing business environment for innovation -- to foster increased experimentation, global learning, and talent attraction and retention. There is still considerable progress to be made in ranking green innovation policies as most appropriate for different developing country contexts -- based on more impact evaluation studies of innovation policies targeted at green technologies.
    Keywords: Environmental Economics&Policies,E-Business,ICT Policy and Strategies,Technology Industry,Climate Change Mitigation and Green House Gases
    Date: 2012–01–01
  7. By: Nuno Boavida (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia); Susana Martins Moretto (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia)
    Abstract: In the context of the revitalization of the Portuguese railway sector with the construction of the high-speed railway network, the working paper proposes an analysis of the results found from the application of an innovation scoring to the Portuguese branch of a global multinational in the railway business. The aim of this exercise is to learn on the innovation management flow between the global corporation and the local branch in Portugal. It also aims to assess the degree of local innovation multinationals generate in view of such type of mega public investments. The working paper is structured in five chapters. In chapter one introduces the innovation scoring tool, instrument of work; chapter two covers the methodology used; the chapter tree presents the case study, subject of research; chapter four presents the findings; and chapter 5 closes with concluding remarks.
    Keywords: railway sector; Portugal; innovation scoring; global corporation
    JEL: M16 R42
    Date: 2011–03
  8. By: Isabel Pizarro (Department of Business Administration, Universidad Pablo de Olavide); Julio DeCastro (Department of Strategic Management & Entrepreneurship Instituto de Empresa, Madrid); Jose Luis Galán (Department of Business Administration, Universidad de Sevilla)
    Abstract: When developing a new venture, a company is faced with the problem of balancing between its autonomy and its control. Utilizing both transaction-cost and resource-based theories, we analyze how entrepreneurial managers’ perceptions of the strategic relationship between firm and corporate venture (CV) determine the choice of internalizing or externalizing the CV. The results indicate that managers would encourage externalization of a CV if its near-term profitability forecast were low; if the risks involved were high; or if the technological synergies with the firm were low. For high market relatedness, managers would encourage internalization of the CV when the importance of the new competences is high
    Keywords: Corporate ventures; internalization; spin off; strategic importance; operational relatedness
    Date: 2011–11
  9. By: Julien Jacob
    Abstract: We suggest a model of innovation and diffusion of a new technology in which two firms, one innovative and one non-innovative, undertake risky activities that are regulated by liability rules. One originality of this study is to consider the presence of a “double-impact” innovation, impacting both the cost of risk prevention and the probability of accident. We compare strict liability and negligence in terms of incentives to innovate, to adopt the new technology and to prevent the risk. We find that the type of innovation and the behavior of the Regulator play key roles: when the Regulator acts as a “leader”, a negligence rule is socially preferable if the innovation mainly impacts the cost of risk prevention. In other cases (Regulator as a “follower” and/or innovation with sufficiently high impact on the probability of accident), strict liability is preferable.
    Keywords: Innovation, technological risk, strict liability, negligence.
    JEL: E2 E5 E6 F3
    Date: 2011
  10. By: R. Martin, Ben; Nightingale, Paul; Yegros-Yegros, Alfredo
    Abstract: Science and Technology Studies (STS) is one of a number of new research fields to emerge over the last four or five decades. This paper attempts to identify its core academic contributions using the references that are most cited by the authors of chapters in a number of authoritative ?handbooks?. The study then analyses the impact of these contributions by exploring the research fields, journals, and geographical location of the researchers that have cited these core contributions in their own work. Together, these two analyses reveal the various phases in the development of STS and the various aspects of convergence and divergence of the field as the quantitative studies of science and technology gradually separated from the main body of STS. The paper ends with some conclusions about the evolution of STS such as the role of ?institution builders' in developing new research fields and the structures required to hold them together.
    Keywords: science studies, STS; knowledge base; handbooks; core contributions
    JEL: N01 O33 B29 O14
    Date: 2011–12–14
  11. By: Marco Vivarelli
    Abstract: This paper critically discusses the theoretical and empirical literature on the quantitative and qualitative employment impact of technological change, compares the relative explanatory power of the competing theories, and explains in detail the macro and micro evidence on the issue, with reference both to the advanced economies and the developing countries (DCs).
    Keywords: Science & Technology :: New Technologies, Science & Technology, Technology, innovation, employment, skill, skill-biased technological change
    JEL: O33
    Date: 2011–12
  12. By: Biswajit Nag; Debdeep De (Indian Institute of Foreign Trade)
    Abstract: Rules of Origin (RoO) are essential part of trade rules that become very important in the context of increasing globalisation of production process. Most industrial goods today incorporate inputs from a wide variety of countries (e.g. automobiles, electronic goods etc) and when traded it becomes important to determine their country of origin as tariffs depend on country of origin. The current study performs a critical investigation of RoO in selected regional trade agreements (RTAs) in the Asia Pacific region, and has made attempts to study linkages with intra-regional trade in some sectors such as textiles, electronics in the form of integrated circuits, and automobile components.
    Keywords: Rules of origin, international production network, free trade agreement, preferential trade agreement
    JEL: F1
    Date: 2011–05
  13. By: Sebastien Nouet (LEDa - Laboratoire d'Economie de Dauphine - Université Paris IX - Paris Dauphine); Jean Eric Pelet (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Ballantyne David (Centre for Relationship Marketing and Service Management - université d'Otago)
    Abstract: The purpose of this paper is to offer customer relationship insights in what is a fast developing new e-commerce development strategy. We examine the potential synergies between digital social networks (DSN) and e-commerce websites, thus bringing e-commerce and DSN websites into the same relational network orbit. A Delphi dialogical survey among ten DSN experts was arranged (five academics plus five web designers) to draw out from experts the degree of consensus currently existing between them on the strategies, competencies and resources needed for achieving effective DSN-website links. Our literature review allowed us to develop seven key themes, which were presented to our 10 DSN experts. Their evaluations were then obtained on a series of propositions within each of those themes, using a Delphi iterative review process. Convergence of expert opinion (and hence consensus) on each of these propositions emerged across four themes out of the seven presented. Results reveal the importance of firms obtaining good DSN technical expertise. Competencies of an ideal technical expert are defined but opinion diverged on how to find such skilled people in the short term. Thus a necessary but interim step in many firms may be the creation of dual roles for technical expertise and a network community (service) management. We conclude that our findings raise further questions for discussion; nonetheless it is clear that SME organizations can just as easily as large corporate enterprises outsource the development of the technical expertise necessary for the creation of effective DSN-ecommerce relationship links.
    Keywords: social networks, e-commerce, Facebook, Delphi method
    Date: 2011–12–25
  14. By: Binaykumar Ray (Indira Gandhi Institute of Development Research); B. Sudhakara Reddy (Indira Gandhi Institute of Development Research)
    Abstract: This paper analyses the energy use in the manufacture of cement in India during 1992-2005. Cement manufacturing requires large amounts of various energy inputs. The most common types of energy carriers used are coal, electricity, natural gas and fuel oil. Over the years, the fuel use shift is less, but use of natural gas has decreased and that of electricity has increased. Using panel data, stochastic frontier production function method has been used to evaluate the efficiency of individual firms and industries across the years. The results show a significant decrease in energy as well as carbon intensities because of differences in production techniques.
    Keywords: Cement industry, Energy demand, Firm, Technical efficiency
    JEL: Q4 L94 L95 L98
    Date: 2012–01
  15. By: Ngo Van Long; Antoine Soubeyran; Raphael Soubeyran
    Abstract: We develop a simple model of task allocation for knowledge workers over their career within an organization. The human capital theory initiated by Becker (1962, 1964) has o¤ered a rich analysis of an individuals life cycle investment in human capital. One of the main result of this literature states that human capital investments are undertaken at the early stage of the career because workers have then a longer period of time over which they can bene…t from the return of their investments. In this paper, we consider a knowledge accumulation problem within an organization that cannot prevent the worker from quitting and using the knowledge outside the organization. In the …rst best situation, we show a similar result as in the human capital theory, i.e. the share of time allocated to knowledge creation tasks decreases over time. We then ask how this pattern is a¤ected when the knowledge worker can leave the organization and bene…t from this knowledge outside the organization. In this case, we obtain the novel result that the time path of the fraction of working time allocated to knowledge creation tasks is non-monotone. This fraction is highest at the early career stage, falls gradually, then rises again, before falling …nally toward zero. We also show that an increase in the …rm-speci…city of knowledge can increase or decrease the life-time income of the knowledge worker.
    Date: 2012–01

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