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on Economics of Strategic Management |
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Issue of 2012‒04‒10
fourteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Leonardo Buzzavo |
| Abstract: | Strategy innovation gained popularity during the 1990s as a notion applying to firms that reinvented competition in an industry. Throughout the 2000s business model innovation drew much of the spotlight. The key traits of both these concepts (and how they relate to each other) are often implicit or unclear. Through a literature review and by applying the key elements to some innovative firms for illustrative purposes, this paper discusses the emergence of the notion of strategy (and business model) innovation aiming to bridge these concepts while identifying their basic constituents. Successful firms manage to envision and implement new combinations along different routes, but always exploiting the complementarities through self-reinforcing mechanisms. Finally, the paper argues that strategy innovation triggers the need to broaden the interpretative schemes in the field of strategy, as it resembles more an art than a science. |
| Keywords: | Strategy; Innovation; Business Model |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:15&r=cse |
| By: | Mara Del Baldo (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo") |
| Abstract: | The research question posed at the basis of this study is the following: what is the importance of sharing common values that originate from (and are reinforced by) the entrepreneurs’ and company’s embeddedness in a cohesive territorial socio-economic system? How can “land values” influence the company’s stakeholder and CSR approaches? Taking both a deductive and inductive perspective, the reflections are developed around three main topics: the CSR roots, strictly connected to ethical oriented core values and influenced by the belonging to a specific geographical context; the development of social and ethical networks of stakeholders (promoted by “territorial” companies) that share a minimum mutual set of values; the influence of those values on the company’s approach to stakeholders management. After presenting the theoretical framework, the second part of the paper examines a case study of an Italian company, the Loccioni Group, which offers an example of a “CSR-oriented” organizational ecosystem and a best practices of stakeholder management that co-evolves with the environment, moving in the direction of responsible development, improving, at the same time, its own competitiveness and the social conditions of the environment and of the local context. |
| Keywords: | Regional Corporate social responsibility, Entrepreneurial values, Local context, Small and medium enterprises, Territorial companies. |
| JEL: | M13 M14 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:12_05&r=cse |
| By: | Vijayaraghavan, K.; Dutz, Mark A. |
| Abstract: | This paper describes and analyzes a series of complementary policy initiatives in India to adapt and commercialize existing global biotechnologies to meet local needs in healthcare, agriculture, industry and the environment in a more affordable manner. This evolving approach has been implemented through six complementary elements, namely (1) translational research; (2) technology access through global consortia; (3) commercialization supported by public-private partnerships, broadly interpreted; (4) skills development; (5) regulation; and (6) institutional governance, including special purpose vehicles, for effective project management. The paper focuses on two public-private partnership initiatives, the Small Business Innovation Research Initiative and the Biotechnology Industry Partnership Program, which together have allocated more than US$70 million in public funding to almost 150 projects, contributing to a total public-private investment of more than $170 million over the past five years. The authors'key recommendation, to ensure effective resource use and better policy impact, is for these innovation-support initiatives to adopt more continuous monitoring with quicker feedback from learning to implementation, and more rigorous impact evaluation including approaches that allow the results of firms benefiting from support to be compared with an appropriate group of firms not benefiting from support. |
| Keywords: | ICT Policy and Strategies,Agricultural Knowledge&Information Systems,Rural Development Knowledge&Information Systems,E-Business,Agricultural Research |
| Date: | 2012–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6022&r=cse |
| By: | Mara Del Baldo (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Paola Demartini (Department of Management and Law, University of Rome 3, Italy) |
| Abstract: | A further development in the socially responsible management debate my consider the following question: is SMEs’ orientation towards Corporate Social Responsibility sustained by entrepreneurs’ values and facilitated by environmental factors – that is, of an anthropological and socio-cultural nature – present in the territory where entrepreneurs and SMEs are sited? The chapter aims at proposing thoughts upon the contribution of SMEs in spreading the philosophy and practices of CSR and sustainability focusing on the importance of entrepreneurial values and the relationship with the local context to which the SMEs and entrepreneurs are profoundly rooted. In developing the research question, the analysis may be divided on two levels: one deductive and the other inductive, which correspond to the two main sections of the chapter. The first section (1-2) presents the theoretical framework by way of recalling threads of study on entrepreneurship and on business ethics centred upon behaviour, motivations and business values. The analysis then concludes by presenting a review of the international studies on the theme of the relationship between managerial culture and territory. The second section (3-4) is developed by way of a qualitative research methodology centred upon the analysis of behavior towards CSR and sustainability of a sample of SMEs belonging to the Marche Region, Italian territory “cradle” of the small-sized company and craft traditions. Empirical evidence presented, highlights how best practices of socially-oriented Marche SMEs - who are excellent examples of “convivial enterprises” strongly rooted in their territories - contribute to a model of Territorial Social Responsibility (TSR) that progresses within the particular socio-economic context of the region. The “social capital”, enriched by values, cultures and traditions tied to a specific community-space, synthesizes intangible factors that favour the development of CSR and the sustainability of SMEs. The economic model of “gentle capitalism” centred around “territorial” SMEs, which can be found in the business contexts under discussion, leans on the construction of a large consensus both within and external to the company, as well as on an environment which is neither restraint or limitation, rather it is an opportunity. The possible pathway of territorial CSR based on the culture of doing “good” in the local context, may offer a possible alternative to the often, unfortunately, short-sighted “turbo-capitalism” of the major transnational companies, which are not rooted in the area where they are located and “nomadic” in their character. |
| Keywords: | Corporate social responsibility, Entrepreneurial values, Local context, Small and medium enterprises, Territorial companies. |
| JEL: | M14 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:12_06&r=cse |
| By: | Din, Shahab-u-; Javid, Attiya Yasmin |
| Abstract: | This study evaluates the impact of managerial ownership on the firm‟s performance and financial policies in the context of Pakistani market for sixty non-financial firms included in KSE 100 index for the period of 2000 to 2007. The analysis support that the concentration of managerial ownership affects the firms financial policies, mainly the leverage and dividend policies. The empirical analysis find out that leverage policy variable influenced managerial ownership negatively, supporting that the lower leverage level leads to high profitability firms engage in low managers‟ ownership program. The result also determines a negative and significant association among the mangers ownership concentration and dividend policy of the firms. This result is supported by the agency theory prediction suggesting that as a firm has high managerial ownership, the asymmetric information will decrease and directly decrease the effectiveness of the dividend policy. Beside this the firms with higher managerial ownership decrease their perquisites, so the conflict between manager‟s shareholders can be settled. It is also observed that the managers‟ ownership concentration in general has a positive relationship with the performance in the corporate culture of Pakistan, where major firms are the family oriented. When the managerial ownership is divided in three levels, low level (0 -5%), moderate level (5%-25% and high concentrated (above 25%), the performance positively affect only at low and moderate level. The ownership beyond 25% has a negative association with performance and support the entrenchment theory. |
| Keywords: | Managerial ownership; leverage; dividend; agency theory; entrenchment theory |
| JEL: | A1 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37560&r=cse |
| By: | Christopher F Baum (Boston College; DIW Berlin); Mustafa Caglayan (University of Sheffield); Oleksandr Talavera (Durham Business School, Durham University) |
| Abstract: | We empirically examine the role of diversification in export markets on firm-level R&D activities. In our investigation we allow for heterogeneous behavior across firms and industries. To properly treat the incidence of R&D as a variable with a sizable concentration of zeroes, we produce Tobit and Generalized Linear Model (GLM) estimates. Our results provide strong evidence that export sales diversification across different regions induces firms to increase R&D expenditures, as they must innovate and develop new products to maintain a competitive edge over their rivals. When we split the data into durable versus nondurable firms, we observe that this effect is mainly operational among firms in the durable goods sector. |
| Keywords: | R&D investment, Export diversification, Foreign direct investment, Cash holdings |
| JEL: | G21 G32 C24 |
| Date: | 2012–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:794&r=cse |
| By: | KWON Hyeog Ug |
| Abstract: | Using firm-level data from the Establishment and Enterprise Census for 2001 and 2006, we explore the effects of e-commerce on the employment growth rate. In the regression analysis for only the surviving firms between 2001 and 2006, we find that employment grew more rapidly for firms which adopted e-commerce, even when controlling for firm size, age, ownership structure, and industry characteristics. To examine the difference of effects of e-commerce across industries, we divide the whole sample into manufacturing, commerce, and service. We find that e-commerce has a positive influence on employment, irrespective of industries. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:12003&r=cse |
| By: | John M. Luiz; Busi Radebe |
| Abstract: | >The study investigates the criteria used by multinational companies to identify the locations of their African regional headquarters (RHQs) and the importance that multinational companies assign to the respective regional offices. We find that multinationals do assign value to their RHQs but are always aiming to strike a balance between local responsiveness and global integration. The power of standardization and the introduction of relevant controls have allowed multinational companies to operate as a coherent unit in the different markets where they operate. The dominant criteria used by MNEs to choose their locations for RHQs in Africa are linked to the advantages of agglomeration and the accompanying economies of scale, and a sound institutional framework which provides a predictable business climate. Distance has become less important |
| Keywords: | FDI and the MNE; Africa; Regional Headquarters; MNEHost Country Relations, Strategic decision making in MNEs |
| JEL: | F23 O55 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:276&r=cse |
| By: | Johannes Meuer (Department of Business Administration, University of Zurich and Rotterdam School of Management, Erasmus University); Henric van der Ent (Rotterdam School of Management, Erasmus University) |
| Abstract: | Prior research has produced ambiguous support for theories on the nature and construction of Human Resource Management (HRM) systems. This ambiguity may be a function of the inherent limitations of the methodologies used in previous studies. We resume efforts by using a configurational methodology to analyze high performing HRM systems of 374 UK based firms. We reveal the multi-dimensional nature of successful and unsuccessful HRM systems. By providing a typology for comparing the interdependencies among vital and peripheral functions, we are able to describe and explain competitive advantages that rest in the orchestrating themes and integrative mechanisms of HRM systems. |
| Keywords: | Strategic HRM, Organizational configurations, fsQCA |
| JEL: | O15 L22 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0076&r=cse |
| By: | Bikash Ranjan Mishra, Dr. |
| Abstract: | The channel through which the inflows of foreign direct investment (FDI) contribute to economic progress of the host economy like India can both be direct as well as indirect. Such pecuniary benefits resulting in improved productivity of local firms which cannot be fully appropriated by foreign investors are better known in the literature as spill-over effects. The paper is based on the following research question: what are the firm-level direct impact and indirect effects of FDI in India? This question is analysed with reference to a micro-level investigation which tests particularly for inter- and intra-industrial spill-overs from FDI by applying a Panel framework with Levinsohn-Petrin approach. The study envelops a rich firm-level dataset from 22 sectors of Indian Manufacturing industries and over a time period from 2006 to 2010. After controlling for firm-wise and year-wise effects, the paper finds marginal and insignificant direct impact and mixed spill-over effects of FDI inflow on the productivity of local firms. |
| Keywords: | FDI; spill-over effects; panel data; Levinsohn-Petrin approach |
| JEL: | F23 F21 C33 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37759&r=cse |
| By: | Britta Hoyer |
| Abstract: | "The enemy of my enemy is my friend." This common adage, which seems to be adhered to in social interactions (e.g. high school cliques or work relationships) as well as in political alliances within countries and between countries, describes the ability of groups or people to work together when they face an opponent, although otherwise they have little in common. In social psychology this phenomenon has been termed the "common enemy effect". Such group behavior can be studied using networks to depict the players within a group and the relationships between them. In this paper we study the effect of a common enemy on a model of network formation, where self-interested, myopic players can use links to build a network, knowing that they are facing a common enemy who can disrupt the links within the network and whose goal it is to minimize the overall value of the network. We find that introducing such a common enemy can lead to the formation of stable and efficient networks which would not be stable without the threat of disruption. However, we also find that fragmented networks as well as the empty networks are also stable. While the common enemy can thus have a positive effect on the incentives of players to form an efficient network, it can also lead to fragmentation and disintegration of the network. |
| Keywords: | strategic network disruption, strategic network design, non-cooperative network games |
| JEL: | C72 D85 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1206&r=cse |
| By: | Maria Cecillia Bustamante |
| Abstract: | This paper provides an alternative real options framework to assess how firms strategic interaction under imperfect competition a¤ects the industrial dynamics of investment, concentration, and expected returns. When firms have similar production technologies, the cross sectional variation in expected returns is low, firms investments are more synchronized, .rms. expected returns co-move positively, and the industry is less concentrated. Conversely, in more heterogeneous industries, the cross sectional variation in expected returns is high, there are leaders and followers whose expected returns co-move negatively, and the industry is more concentrated. The model rationalizes several empirical facts, including: (i) that firms returns co-move more positively in less concentrated industries; (ii) that booms and busts in industry returns are more pronounced in less concentrated industries; and (iii) that less concentrated industries earn higher returns on average. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:fmg:fmgdps:dp681&r=cse |
| By: | NISHIMURA Kazuo; HIRATA Junichi; YAGI Tadashi; URASAKA Junko |
| Abstract: | In this paper, we examined the impact of changes in the content of science learning on the formation of personal capacity and on the competitiveness of workers in the labor market, by analyzing data on the incomes of university graduates. In order to analyze the impact of changes in the Guidelines for the curriculum, we divided the samples into three groups according to the curriculum applied to their high school education (pre-Yutori Education generation, Yutori Education generation, New Outlook on Academic Achievement generation). Our analysis showed that the younger the sampled subject, or, to put it another way, the lesser the emphasis on subject-based learning, the greater the negative effect on learning in the science subjects, manifesting itself in a tendency for students to adopt an unfavorable view of science subjects. Moreover, our results also showed that, in every generation, physics learning contributed to an increase in income, and further implied that physics learning was also a significant factor in the formation of earning capacity. |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:12001&r=cse |
| By: | Beatrice Farkas |
| Abstract: | This paper analyzes the necessary local conditions required for the existence of positive spillovers from multinationals' entry and it consists of a unified study of absorptive capacities. We start from the idea that FDI speeds up the diffusion of technologies across countries. Yet, the question that arises is: to what extent are these advanced technologies absorbed and successfully internalized by the receiving countries such that they materialize in welfare gains? The impact of FDI depends on the country specific absorptive capacity. We first interact FDI individually with different growth determinants and we find that the contribution of FDI to economic growth is positive and significant depending on the level of human capital and the development of financial markets, but its presence in developing countries must complement rather than substitute a set of other growth determinants. Then we test the robustness of the linear interaction terms relative to each other and we analyze the set of conditions that are most beneficial for FDI. |
| Keywords: | FDI, economic growth, absorptive capacity |
| JEL: | F23 F43 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1202&r=cse |