nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒02‒08
eight papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Economic Performance of U.S. Multinational Agribusinesses: Foreign Direct Investment and Firm Strategy By Garcia-Fuentes, Pablo; Ferreira, Gustavo; Kennedy, P. Lynn
  2. A taxonomy of innovation networks By Schön, Benjamin; Pyka, Andreas
  3. Does Labor Diversity Promote Entrepreneurship? By Marianna Marino; Pierpaolo Parrotta; Dario Pozzoli
  4. Trade Liberalization, Mergers and Acquisitions, and Intra-Industry Reallocations By Peter Arendorf Bache; Anders Laugesen
  5. Strategic tax and public service competition among local governments By Lauridsen, Jørgen; Nannerup, Niels; Skak, Morten
  6. Efficiency Analysis of Rural Hospitals: Parametric and Semi-parametric Approaches By Nedelea, I. Cristian; Fannin, J. Matthew
  7. Peer Effects and Social Preferences in Voluntary Cooperation By Thöni, Christian; Gächter, Simon
  8. Coping with Conflict:A Dynamic Decision Making Perspective By Kuperman, Ranan

  1. By: Garcia-Fuentes, Pablo; Ferreira, Gustavo; Kennedy, P. Lynn
    Abstract: This paper empirically assesses the sequential relationships among firm strategic factors, FDI activity, and economic performance for a sample of U.S.-based Multinational agribusinesses. The most important findings of this research is a positive direct effect of FDI on performance, the complementary effect between FDI and firm strategic factors (positive and significant interaction terms) on performance, and the positive effect of FDI on performance given some thresholds of firm strategic factors. Specifically, it provides insights about the direct effect of FDI on performance, as well as about the joint effect of firm size and FDI, marketing intensity and FDI, and capital intensity and FDI on performance. These findings provide evidence that FDI activity is an important factor for U.S. agribusiness financial strength.
    Keywords: Economic performance, Foreign direct investment, Firm strategic factors, Agribusiness, Agribusiness, International Relations/Trade, Marketing, F230, L250,
    Date: 2012
  2. By: Schön, Benjamin; Pyka, Andreas
    Abstract: In this discussion paper we develop a theory-based typology of innovation networks with a special focus on public-private collaboration. This taxonomy is theoretically based on the concept of life cycles which is transferred to the context of innovation networks as well as on the mode of network formation which can occur either spontaneous or planned. The taxonomy distinguishes six different types of networks and incorporates two plausible alternative developments that eventually lead to a similar network structure of the two types of networks. From this, important conclusions and recommendations for network actors and policy makers are drawn. --
    Date: 2012
  3. By: Marianna Marino (École Polytechnique Fédérale de Lausanne,); Pierpaolo Parrotta (Department of Economics and Business, Aarhus University, Denmark); Dario Pozzoli (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: We find evidence that workforce educational diversity promotes entrepreneurial behavior of employees as well as the formation of new firms, whereas diversity in demographics hinders transitions to selfemployment. Ethnic diversity favors entrepreneurship in financial and business services.
    Keywords: Labor diversity, entrepreneurship, transitions to self-employment
    JEL: C26 J24 L26
    Date: 2012–01–04
  4. By: Peter Arendorf Bache (Department of Economics and Business, Aarhus University, Denmark); Anders Laugesen (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: This paper presents a Melitz-type model of international trade in final goods and Grossman-Hart-Antràs input sourcing by heterogeneous firms. We show how firms self-select into different organizational forms in a continuum of industries with different characteristics. Next, we show how a liberalization of trade leads to short run increases in the number of firm mergers and acquisitions and potentially new gains from trade. Finally, we show how the relative prevalence of integrating firms is increasing in some industries while constant in all others.
    Keywords: international trade, firm heterogeneity, make-or-buy decision, export behavior, productivity gains, M&As
    JEL: D23 F12 F14 F15 L2
    Date: 2012–01–26
  5. By: Lauridsen, Jørgen (Department of Business and Economics); Nannerup, Niels (Department of Business and Economics); Skak, Morten (Department of Business and Economics)
    Abstract: Tax and public service competition between local governments concerning localisation of new residents is analysed in a setting of economic spillovers which means that also a neighbouring region will benefit from localisation via demand of residents in a border region, (a so-called host region). We identify two basic Nash-equilibrium outcomes of the analysed tax-game. In one of these outcomes local tax rates will be different across the regions – a fact that appears important for (future) empirical studies of local tax competition. Due to the lack of adequate theoretical modelling, studies in this field have often demonstrated spatial dependence of local policy variables without identifying the source of interaction between decision-makers. Our theoretical findings prove to be robust to a range of important expansions of the basic simple framework.
    Keywords: Local tax competition; household locational choice; spillover effects; Nash-equilibria
    JEL: H21 H31 H71
    Date: 2011–12–01
  6. By: Nedelea, I. Cristian; Fannin, J. Matthew
    Abstract: This paper examined cost efficiency differences between rural hospitals participating in the Critical Access Hospital (CAH) Program and a group of non-converting, prospectively paid rural hospitals using both a two-stage semi-parametric approach as well as stochastic frontier analysis (SFA). CAHs receive Medicare cost-based reimbursement, in contrast with the rest of the hospitals reimbursed under Medicare prospective payment system (PPS). However, cost-based reimbursement has been associated with inefficiency in hospital operations and, consequently, concerns have been raised about the efficiency of CAHs. Results showed a positive and significant effect of CAH status on cost inefficiency under both model specifications suggesting that CAHs were less cost efficient than non-converting rural hospitals.
    Keywords: rural hospitals, efficiency, SFA, two-stage approach, Community/Rural/Urban Development, Health Economics and Policy, Production Economics, Productivity Analysis, Public Economics, Research Methods/ Statistical Methods, I18,
    Date: 2012
  7. By: Thöni, Christian (University of St. Gallen); Gächter, Simon (University of Nottingham)
    Abstract: Substantial evidence suggests the behavioral relevance of social preferences and also the importance of social influence effects ("peer effects"). Yet, little is known about how peer effects and social preferences are related. In a three-person gift-exchange experiment we find causal evidence for peer effects in voluntary cooperation: agents' efforts are positively related despite the absence of material payoff interdependencies. We confront this result with major theories of social preferences which predict that efforts are unrelated, or negatively related. Some theories allow for positively-related efforts but cannot explain most observations. Conformism, norm following and considerations of social esteem are candidate explanations.
    Keywords: social preferences, voluntary cooperation, peer effects, reflection problem, gift exchange, conformism, social norms, social esteem
    JEL: C92 D03
    Date: 2012–01
  8. By: Kuperman, Ranan (University of Haifa)
    Abstract: This research investigates how students of political science playing the role of a state leader cope with structural and dynamic complexities of international conflict. This was studied with the aid of an interactive microworld simulator of a fishing dispute, which was designed according to principles of system dynamics. The research question was what type of decision-making patterns characterized subjects who adapted successfully to the challenges posed by the opponent in comparison to subjects who pursued policies that produced suboptimal payoffs. The results of this research suggest two reasons for poor adaptation. First, rather than exploring the consequences of all possible policy options, most subjects had very strong pre-existing policy preferences and were reluctant to abandon them in favor of alternative policies. Second, many subjects did not adequately analyze the statistical data that were required in order to estimate the payoffs. A third possibility that was explored but not sufficiently supported is that decisions were based on satisficing rather than comparing utilities associated with alternative policies.
    Keywords: policy preferences; decision making; international conflicts
    JEL: D74
    Date: 2011–12–01

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