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on Economics of Strategic Management |
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Issue of 2012‒04‒23
sixteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Crespi, Gustavo (Competitiveness and Innovation Division, Institutions for Development Department, Inter-American Development Bank); Zuniga, Pluvia (UNU-MERIT/MGSoG, University of Maastricht) |
| Abstract: | This study examines the impact of innovation strategies on employment growth in four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro-data for manufacturing firms from innovation surveys. Building on the model proposed by Harrison et al. (2008), we relate employment to three innovation strategies: make only (R&D), buy only (external R&D, licensing of patents and know-how, technical assistance, and other external innovation activities) and make and buy (mixed strategy). Firms that conduct in-house innovation activities ("make only") have the greatest impact on employment; the "make and buy" strategy comes in second. Similar results are found for small firms. These results highlight the importance of fostering in-house technological efforts not only for innovation per se, but also to promote growth in firm employment. The impact of "make only" strategies is greater in high-tech industries, whereas "make only" and "make and buy" have a similar impact on employment in low-tech industries. Finally, the study provides evidence of the mechanisms through which innovation strategies affect employment. The findings show that innovation strategies enhance technological innovation, but their impact differs between product and process innovation. Product innovation is mainly motivated by in-house technology investments, followed by mixed strategies, whereas process innovation is basically driven by "buy" strategies. |
| Keywords: | innovation, employment, external R&D, Latin America, innovation surveys |
| JEL: | O12 O14 O31 O33 O40 J21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012022&r=cse |
| By: | Joan Crespo (University of Toulouse, LEREPS); Raphaël Suire (University of Rennes 1 - CREM (UMR 6211 CNRS)); Jérôme Vicente (University of Toulouse, LEREPS, Toulouse Business School) |
| Abstract: | The paper develops an evolutionary framework of regional resilience with a primary focus on the structural properties of local knowledge networks. After a presentation of the network-based rationales of growth and structuring of clusters, we analyze under which structural conditions a regional cluster can mix short run competitiveness without compromising long run resilience capabilities. We show that degree distribution (the level of hierarchy) and degree correlation (the level of structural homophily) of regional knowledge networks are suited properties for studying how clusters succeed in combining technological lock-in and regional lock-out. We propose a simple model of cluster structuring in order to highlight these properties, and discuss the results on a policy-oriented analysis. We conclude showing that policies for regional resilience fit better with ex ante regional diagnosis and targeted interventions on particular missing links, rather than expost myopic applications of policies based on an unconditional increase of network relational density. |
| Keywords: | Resilience, clusters, degree distribution, assortativity, regional policy |
| JEL: | B52 D85 O33 R11 R12 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201221&r=cse |
| By: | Joan Crespo; Raphael Suire; Jérôme Vicente |
| Abstract: | The paper develops an evolutionary framework of regional resilience with a primary focus on the structural properties of local knowledge networks. After a presentation of the network-based rationales of growth and structuring of clusters, we analyze under which structural conditions a regional cluster can mix short run competitiveness without compromising long run resilience capabilities. We show that degree distribution (the level of hierarchy) and degree correlation (the level of structural homophily) of regional knowledge networks are suited properties for studying how clusters succeed in combining technological lock-in and regional lock-out. We propose a simple model of cluster structuring in order to highlight these properties, and discuss the results on a policy-oriented analysis. We conclude showing that policies for regional resilience fit better with ex ante regional diagnosis and targeted interventions on particular missing links, rather than ex post myopic applications of policies based on an unconditional increase of network relational density. |
| Keywords: | resilience, clusters, degree distribution, assortativity, regional policy |
| JEL: | B52 D85 O33 R11 R12 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1204&r=cse |
| By: | Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)) |
| Abstract: | The paper analyzes the effects of the properties of firms' knowledge base on the survival likelihood of firms. Drawing upon the analysis of the patterns of co-occurrence of technological classes in patent applications, we derive the coherence, variety and cognitive distance indexes, accounting respectively for technological complementarity, differentiation and (dis)similarity in the firms' patent portfolios. The results of our analysis are in line with the previous literature, showing that innovation enhances the survival likelihood of firms. In addition, we show that the search strategies at work in the development of firms' knowledge base matter in reducing the likelihood of a failure event. Knowledge coherence and variety appear to be positively related to firms' survival, while cognitive distance exerts a negative effect. We conclude that firms able to exploit the accumulated technological competences have more chances to be successful in competing durably in the market arena, and derive some policy implications concerning the role of public intervention in the orientation of search efforts in local contexts. |
| Keywords: | Knowledge coherence; variety; cognitive distance; firms' survival |
| Date: | 2012–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00686007&r=cse |
| By: | Raquel Meneses (Faculdade Economia Porto); Carlos Brito (Faculdade Economia Porto) |
| Abstract: | The competitive and organizational behavior of new firms has changed dramatically. Firms do not need to be big to internationalize, International New Ventures (INV) are a reality. But, they are characterized by the liability of newness and the liability of smallness. Since the nineties, scholars have devoted considerable attention to this phenomenon, but no one explains how these companies can overcome these constraints and internationalize. In this context, this paper uses a multilevel analysis, resulting in a more integrative framework. This approach extends the literature including, at the same time, the firm perspective (following the studies developed in Uppsala and the RBV), the organizational network approach and the international entrepreneur perspective. It has three units of observation and one of analysis. To understand INV dynamics it seems very important to observe, study and relate firm with network and entrepreneur. This research finds out that the entrepreneur plays a particularly important role in these new companies, ill-equipped (of relations, resources and knowledge), but the entrepreneur does not act in a vacuum; he is part of a firm integrated in a network. To internationalize early firms must use indirect knowledge, resources and history from organizational networks and from the entrepreneur. |
| Keywords: | Internationalization, born global, networks, international new ventures |
| JEL: | M16 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:454&r=cse |
| By: | Waheed, Abdul (UNU-MERIT/MGSoG, Maastricht University) |
| Abstract: | The analysis of the impact of innovation on employment growth is an important topic for policy makers, because (un)employment is an important social topic, and the effects of innovation on employment are often poorly understood. Despite the significant importance of this relationship, very few studies on this topic for developing countries are yet available compared with developed ones. This paper contributes to this scanty literature by investigating the employment effect of innovation for two South Asian developing countries: Bangladesh and Pakistan. We further analyze whether this relationship shows country-specific and industry-specific differences. Finally, we investigate whether complementarity between process and product innovation exists or which effect (displacement or compensation) of one particular innovation type dominates the other, in order to influence employment. One of the striking findings of our analysis is that both product and process innovation spur employment in this region as a whole, regardless of low-tech and high-tech industries, even after controlling for a number of firm-specific characteristics. Moreover, although both innovation types also have significantly positive impacts on employment growth of all Bangladeshi and of all Pakistani firms separately, they are important factors for employment growth of only high-tech Bangladeshi firms and of only low-tech Pakistani firms. Moreover, we observe a strong complementarity between both innovation types in order to stimulate employment. Contrary to the most previous studies, we witness an insignificantly negative effect of labour cost on employment change, perhaps owing to the availability of labour force to hire at cheaper rates compared with developed countries. We notice that some of the innovation determinants exert different influences across industries and across both countries. The same is the case for the determinants of employment growth. |
| Keywords: | Bangladesh, Employment growth, Pakistan, Product innovation, Process innovation Process innovation |
| JEL: | J23 O31 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012024&r=cse |
| By: | Brach, Juliane (University of Copenhagen and German Institute of Global and Area Studies, Hamburg); Naudé, Wim (UNU-MERIT/MGSoG, University of Maastricht) |
| Abstract: | In this paper we investigate the extent of international entrepreneurship in Algeria, Egypt, Morocco, Oman and Syria using a dataset covering 3,281 firms. We find that weak technological capabilities constrain internationalization. Firms with ISO accreditation, an own website, and those who have introduced new technology have a higher probability of entering export markets than otherwise. Firms in high-tech sectors are more likely to export early. However with foreign shareholding this advantage of high-tech firms disappears. The results suggest that early international entrepreneurs may need to pay more in informal payments if they want to increase the share of their exports once they have entered into export markets. We derive implications for policy and further research. |
| Keywords: | International entrepreneurship, exports, entrepreneurial capabilities, innovation, Middle East, North Africa, MENA |
| JEL: | L26 L25 M16 O55 F23 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012020&r=cse |
| By: | Chung, Yessica C.Y. |
| Abstract: | Using an enterprise-level dataset collected from 234 workshops located in the furniture cluster of the city of Arusha, Tanzania, this paper investigates the mechanisms of technical knowledge exchange that take place in clusters. A knowledge exchange link is defined as any two clustering entrepreneurs who perform similar manufacturing techniques in the production process. The results show that the strength of the ethnic networks of producers has positive effects on acquisition of manufacturing techniques, particularly in skills such as wood-joining, which are mainly influenced by a producer’s own skills rather than production facilities. Using dyadic data analysis, this paper further finds that two producers from the same ethnic minority are more likely to exhibit the same manufacturing techniques compared with two producers from the same ethnic majority. These findings suggest that ethnic networks facilitate knowledge exchange in an industrial cluster, but that this positive externality of the ethnic network effect only takes place in small-sized ethnic groups, and only to the extent that sophisticated facilities are not essential in the knowledge learning processes. |
| Keywords: | ethnic networks , knowledge learning , industrial cluster , Africa |
| Date: | 2012–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:jic:wpaper:37&r=cse |
| By: | Ács, Zoltan J. (George Mason University, School of Public Policy); Naudé, Wim (UNU-MERIT/MGSoG, University of Maastricht) |
| Abstract: | Unlike in the past where industrial policy was either focused on creation and growth of state-owned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paper we outline some considerations for such an industrial policy where the entrepreneur-state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur-state nexus is evolving, and that it depends on the stage of development of a particular country. |
| Keywords: | entrepreneurship, industrialization, structural change, industrial policy, innovation, development |
| JEL: | O32 L52 L53 M13 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012021&r=cse |
| By: | Guilhem Fabre (CCJ - Chine, Corée, Japon - CNRS : UMR8173 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Université Paris VII - Paris Diderot); Stephane Grumbach (LIAMA - NETQUEST - CIRAD - CNRS - INRA - INRIA - Chinese Academy of Science (CAS) - Institute of Automation, Chinese Academy of Sciences) |
| Abstract: | R&D and innovation have become much more strategic than ever before for the growth of China as well as for its global societal upgrade. The Chinese authorities have designed an innovation strategy to face new economic and social challenges. The first part of the paper is focused on the emergence of the policy, in the 2006-2020 Plan for S&T, with a historical perspective explaining the legacy of the past in today's choices. In the second part, we illustrate China's catching up strategy through four sectors (high-speed trains, aeronautics, clean energy, IT) and discuss its potential impact on the world industry. |
| Keywords: | R&D; innovation; strategy; high speed trains; aeronautics; clean energy; IT |
| Date: | 2012–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00686389&r=cse |
| By: | Hagedoorn, John (UNU-MERIT/MGSoG, and Department of Organization & Strategy, School of Business and Economics, Maastricht University); Ridder, Ann-Kristin (Department of Organization & Strategy, School of Business and Economics, Maastricht University) |
| Abstract: | Our exploratory empirical study, based on a series of in-depth interviews and a survey of firms, searches for answers on a number of questions that deal with the role of formal contracts and intellectual property rights in the context of open innovation. We find that firms active in open innovation have a strong preference for the governance of their open innovation relationships through formal contracts. These contracts are relevant from both a control and a process monitoring perspective. Also, despite the open nature of open innovation, firms still see intellectual property rights as highly relevant to the protection of their innovative capabilities. In a first attempt to explain this preference for intellectual property rights by open innovation firms, we find the degree of openness of firms, their legalistic attitude, and the competitive dynamics of their product market environment to be related to this preference. |
| Keywords: | open innovation, contracts, intellectual property rights |
| JEL: | K11 K12 L24 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012025&r=cse |
| By: | Richard Fabling; Lynda Sanderson (Reserve Bank of New Zealand) |
| Abstract: | This paper examines the firm-level determinants of foreign acquisitions of New Zealand companies, and the consequences for both the purchased firms and the workers within those firms. We follow a combined propensity score matching and difference-in-differences approach to identify and address endogenous selection of acquisition targets. The results suggest that foreign firms tend to target high-performing New Zealand companies. Acquired firms then exhibit higher growth in average wages and output, relative to similar domestic firms, but do not appear in general to increase their productivity or capital intensity. We find no evidence of differential survival rates for recently acquired foreign firms. |
| JEL: | D22 F23 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:nzb:nzbdps:2011/08&r=cse |
| By: | Rai, Soumi |
| Abstract: | This paper addresses gaps in research related to study and understanding of Human Resource Management in the context of Indian Automobile sector. The review is based on the available and published literature in peer reviewed journals of reputation and academic standing. A total of 138 papers were reviewed related to the general context of Human Resource Management practices. Of these, about 65 papers were found relevant and relating to understanding of HRM practices in India specifically in the context of the industrial sector. The timeline for literature review has been taken from 1970 - 2010, as it encompasses the period of industrialization in India, growth of HRM and major transition across Indian industrial sector post economic liberalization - 1991. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbgwp:spiii2012301&r=cse |
| By: | Sotiris Blanas |
| Abstract: | This paper studies the impact of trade within US-headquartered multinational companies (MNCs) on labour demand for all employees, as well as, for those of high and low skill in US manufacturing for the period 1995 – 2005. We find strong evidence on the positive and negative effect of intra-firm exports and imports respectively, on aggregate employment. The former effect is stronger than the latter. Moreover, we find that demand for low-skilled labour is negatively associated with intra-firm imports, while unaffected by intra-firm exports. In contrast, high-skilled labour demand is positively linked to intra-firm exports but unaffected by intra-firm imports. The last two findings put together, suggest that low-skill intensive stages of the value-added chain are mostly transferred to the US affiliates abroad, while highskill intensive ones are mostly kept within the US parents |
| Keywords: | Multinational Companies (MNCs); intra-firm imports; intra-firm exports; employment; low-skilled workers; high-skilled workers |
| JEL: | F16 F23 J21 J23 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieasw:458&r=cse |
| By: | Carlo Carraro (University of Venice, Fondazione Enrico Mattei, CEPR, CESifo and CMCC); Enrica De Cian (Fondazione Enrico Mattei and CMCC); Massimo Tavoni (Fondazione Enrico Mattei and CMCC) |
| Abstract: | This paper looks at the interplay between human capital and innovation in the presence of climate and educational policies. Using recent empirical estimates, human capital and general purpose R&D are introduced in an integrated assessment model that has been extensively applied to study climate change mitigation. Our results suggest that climate policy stimulates general purpose as well as clean energy R&D but reduces the incentive to invest in human capital formation. Human capital increases the productivity of labour and the complementarity between labour and energy drives its pollution-using effect (direct effect). When human capital is an essential input in the production of generic and energy dedicated knowledge, the crowding out induced by climate policy is mitigated, thought not completely offset (indirect effect). The pollution-using implications of the direct effect prevail over the indirect contribution of human capital to the creation of new and cleaner knowledge. A policy mix that combines educational as well as climate objectives offsets the human capital crowding-out with a moderate, short-term consumption loss. Human capital is complement to all forms of innovation and an educational policy stimulates both energy and general purpose innovation. This result has important policy implications considering the growing concern that effective climate policy is conditional on solid economic development and therefore it needs to be supplemented by other policy targets. |
| Keywords: | Climate Policy, Innovation, Human capital |
| JEL: | O33 O41 Q43 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.18&r=cse |
| By: | Russel J. Cooper |
| Abstract: | Advances in information technology (IT) in the first decade of the 21st century have highlighted the role of IT as an enabling technology throughout an economy. But although the influence of IT in transforming the way in which business and consumer transactions are done is clear to all participants in the production-consumption process, it is difficult to attribute a specific value to and precisely measure the importance of the role of IT in improving consumer welfare.<P>The measurement of the economic value of public infrastructure has traditionally been problematic because of its ‘public good’ nature, which means that many users can benefit from use of public infrastructure at the very same time. This is especially true of ‘New Economy’ infrastructure such as IT, which links so naturally with developments in telecommunications so that the existence of many users, far from creating congestion in use, actually enhances the value of the infrastructure through network effects.<P>In response to the measurement problem, the approach of the current paper is to utilise an economic model that looks at the end result – observations on changes in the pattern of consumer spending behaviour – and econometrically estimates the extent of the link between these behavioural changes and their drivers: traditional economic stimuli as well as changes in the economic environment due to advances in technology and improved provision of public sector IT infrastructure. Counterfactual simulations with the estimated model provide money-metric measures of the welfare benefits of innovations in Internet-based public sector IT infrastructure in a variety of OECD economies. |
| Date: | 2012–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaab:196-en&r=cse |