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on Economics of Strategic Management |
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Issue of 2012‒07‒01
fourteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Agulles, Remei (IESE Business School); Prats, Maria Julia (IESE Business School) |
| Abstract: | Companies desiring to keep and improve their competitive advantage must be flexible enough to undergo change when needed. Meaningful change requires the ability to learn from their own as well as from others' experience. But learning is not easy, and there are many factors that may prevent it to occur. This paper explores existing literature and provides a classification of the different obstacles that may appear in the way. At the same time, without the pretension of being exhaustive, it suggests some solution paths. |
| Keywords: | organizational learning; strategic management; corporate culture; organizational change; knowledge management; innovation; |
| Date: | 2012–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0955&r=cse |
| By: | Raffaele Paci; Emanuela Marrocu |
| Abstract: | Regional competitiveness, especially in the industrialised countries, is increasingly reliant on the availability of an adequate endowment of knowledge assets at the local level, like technological and human capital. These intangible factors enhance regional efficiency directly as inputs of the production function, but they also play a crucial role in allowing the territory to absorb the potential knowledge spillovers from the neighbouring regions. The aim of this paper is to analyse the role of the internal and external factors in determining the productivity level for a large set of regions belonging to the EU27 plus Norway and Switzerland. We estimate a Cobb-Douglas production function over the period 2000-2008 where, in addition to the traditional inputs of physical capital and units of labour, we consider innovation activities and human capital endowments as relevant knowledge assets. We also control for other geographical and industrial features of the regions. In order to take into account the commonly found geographic association across regions, our analysis is carried out within the spatial panel econometric framework. Main results, robust to a wide array of sensitivity checks, show that knowledge assets exhibit positive and significant coefficients and the impact of human capital on GDP is higher than the one found for technological capital in most of the estimated empirical models. Moreover, we find evidence of spatial spillovers directly associated with the two immaterial assets, which turn out to be much more effective in the regions of the 12 new accession countries with respect to all other European regions. The significant presence of such spillovers emphasizes the important role played by highly educated labour forces in increasing the regions’ absorptive capacity of new external knowledge and in ensuring its effective use in the production process. |
| Keywords: | knowledge; innovation; human capital; production function; spatial spillovers; European regions |
| JEL: | C23 O33 R11 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201213&r=cse |
| By: | Martin Berger; Heinz Hollenstein |
| Abstract: | The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm’s performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm’s performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation. |
| Keywords: | Internationalisation of R&D, Governance of foreign R&D, International R&D co-operation, Foreign R&D and performance, OLI paradigm and R&D |
| JEL: | F23 L22 L24 O31 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2012:i:097&r=cse |
| By: | Ufuk Akcigit; William R. Kerr |
| Abstract: | We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multiproduct firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects. |
| Keywords: | CES,economic,research,micro,data,microdata,endogenous growth, innovation, exploration, exploitation, research and development, patents, citations, scientists, engineers |
| JEL: | O31 O33 O41 L16 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-08&r=cse |
| By: | Naomi Hausman |
| Abstract: | Universities, often situated at the center of innovative clusters, are believed to be important drivers of local economic growth. This paper identifies the extent to which U.S. universities stimulate nearby economic activity using the interaction of a national shock to the spread of innovation from universities - the Bayh-Dole Act of 1980 - with pre-determined variation both within a university in academic strengths and across universities in federal research funding. Using longitudinal establishment-level data from the Census, I find that longrun employment and payroll per worker around universities rise particularly rapidly after Bayh-Dole in industries more closely related to local university innovative strengths. The impact of university innovation increases with geographic proximity to the university. Counties surrounding universities that received more pre-Bayh-Dole federal funding - particularly from the Department of Defense and the National Institutes of Health - experienced faster employment growth after the law. Entering establishments - in particular multi-unit firm expansions - over the period from 1977 to 1997 were especially important in generating long-run employment growth, while incumbents experienced modest declines, consistent with creative destruction. Suggestive of their complementarities with universities, large establishments contributed more substantially to the total 20-year growth effect than did small establishments. |
| Keywords: | CES,economic,research,micro,data,microdata, clusters, innovation, local economic growth, universities |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-10&r=cse |
| By: | Pussep, Anton; Harnisch, Stefan; Buxmann, Peter |
| Abstract: | The value added created by a firm is a widely used figure. Major elements of a firm’s strategy and business model deal with how the firm creates value and brings it to the customer. This paper focuses on a particular measure which has been broadly applied to measure the degree of vertical integration: value added to sales (VA/S). To our best knowledge, this measure hasn’t been applied in software business research. We hence outline its application in other fields by conducting a broad and structured literature review. First empirical insights are gained by analyzing the VA/S development for 44,171 software firms in the period 2002-2009. These results indicate an increasing degree of vertical integration in the software industry. While practitioners can use the results as a benchmark for their own firms, researchers are provided with a comprehensive literature review, first empirical results on a large sample and avenues for research. |
| Keywords: | software industry, vertical integration, value added to sales, degree of vertical integration |
| Date: | 2012–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:57629&r=cse |
| By: | William R. Kerr; Scott Duke Kominers |
| Abstract: | We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping firm interactions yield agglomeration clusters that are much larger than the underlying agglomerative forces themselves. Empirically, we demonstrate that our model’s assumptions are present in the structure of technology and labor flows within Silicon Valley and its surrounding areas. Our model further identifies how the lengths over which agglomerative forces operate influence the shapes and sizes of industrial clusters; we confirm these predictions using variations across both technology clusters and industry agglomeration. |
| Keywords: | CES,economic,research,micro,data,microdata, agglomeration, clusters, industrial organization, Silicon Valley, entrepreneurship, labor markets, technology flows, patents, natural advantages |
| JEL: | J2 J6 L1 L2 L6 O3 R1 R3 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:12-09&r=cse |
| By: | Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University Taichung, Taiwan); Sung-Po Chen (Department of Applied Economics, National Chung Hsing University Taichung, Taiwan); Michael McAleer (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute, The Netherlands, Department of Quantitative Economics, Complutense University of Madrid, and Institute of Economic Research, Kyoto University.) |
| Abstract: | This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment (ODI), inward direct investment (IDI), and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effects of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI. |
| Keywords: | International direct investment, Exports, Imports, Triadic Patent, Outward direct investment, Inward direct investment, R&D, negative binomial model. |
| JEL: | F14 F21 O30 O57 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1216&r=cse |
| By: | Vanderstraeten J.; Matthyssens P.; Van Witteloostuijn A. |
| Abstract: | This paper focuses on incubator performance measurement. First, we report the findings of an extensive literature review. Both existing individual measures and more comprehensive measurement systems are discussed. This literature review shows that most incubator researchers and practitioners only use one or a few indicators for performance evaluation, and that existing measurement systems do not recognize the importance of short, medium and long-term results, do not always include an incubator’s strategic objectives and are neither easily comprehensible nor accessible. Moreover, there is no link between performance measurement and its influence on incubator employees. To tackle the weaknesses found in existing literature, we suggest to employ Kaplan and Norton’s strategy map and balanced scorecard. Based on the results of a qualitative empirical study, we translate these tools to the context of not-for-profit economic development incubators and test their practical usefulness. We call the tools the SMEDI (Strategy Map for Economic Development Incubators) and BSEDI (Balanced Scorecard for Economic Development Incubators). In a concluding section, we discuss the paper’s main contributions and limitations, and reflect on a few possible future research avenues. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2012012&r=cse |
| By: | Richard Harris; John Moffat |
| Abstract: | This paper decomposes aggregate TFP growth in Britain for 1997-2008 to show the contribution of different LEPs and the role played by manufacturing and services and UK- and foreign-owned plants within these LEPs. These contributions are further decomposed to show the role of productivity growth in continuing plants vis-à-vis reallocations in output shares. The results show that the largest LEPs, in population terms, with higher levels of job density, greater reliance on manufacturing and skilled worker occupations, higher proportions of workers with NVQ4+ qualifications, and lower turnover of businesses, achieved the highest TFP growth. This strong performance is mostly the result of reallocations of output shares towards high productivity continuing plants and the opening of high productivity plants. |
| Keywords: | Productivity decomposition, regional productivity growth |
| JEL: | C23 D24 R12 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0112&r=cse |
| By: | Fernandes, Ana M.; Paunov, Caroline |
| Abstract: | While innovation is a source of competitiveness, it may expose plants to survival risks. Using a rich set of plant-product data for Chilean manufacturing plants during the period 1996-2006 and discrete-time hazard models controlling for unobserved plant heterogeneity, this paper shows that innovating plants have higher survival odds. However, risk plays an important role for the innovation-survival link: only innovators that retain diversified sources of revenues survive longer. Single-product innovators are at greater risk of exiting. In addition, only innovators facing lower market risk, measured by fewer innovative competitors, low-pricing strategies, or lower sales volatility in the new products'markets, see their odds of survival increase significantly. Technical risk, measured by the proximity of product innovations to the plants'past expertise, the degree of sophistication of new products, or their novelty to the Chilean market, does not play a substantial role in the innovation-survival link. Engaging in risky innovation is not an irrational decision, since plants reap big payoffs -- higher productivity, employment and sales growth -- from such innovations. However, those payoffs are not always higher than those from cautious innovation, suggesting that constraining factors, such as credit constraints, force plants to take on more risk when innovating. An implication of the findings for industry dynamics is that among innovators, only the survival of cautious innovators is guaranteed. Since engaging in cautious innovation may not be feasible for all plants, there could be a role for policy in reducing innovators'exposure to risks and providing assistance to deal with failed innovations, while setting the right incentives. |
| Keywords: | Labor Policies,E-Business,Markets and Market Access,Innovation,Knowledge for Development |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6103&r=cse |
| By: | Castillo, Leopoldo Laborda; Guasch, Jose Luis |
| Abstract: | This article evaluates the effect of the overdraft facility (or line of credit) policy by comparing a large sample of overdraft facilitated firms and matched non-overdraft facilitated firms from Eastern Europe at the sector level. The sample firms are compared with respect to rates of different performance indicators including: technical efficiency (a Data Envelopment Analysis approach is applied to estimate the technical efficiency level for individual sectors), production workers trained, expenditures on research and development, and export activity. In order to avoid the selectivity problem, propensity score matching methodologies are adopted. The results suggest that a certain level of overdraft facility provided to firms would be needed to stimulate investment in research and development, which will eventually result in increased growth in productivity. |
| Keywords: | Access to Finance,Environmental Economics&Policies,Debt Markets,Economic Theory&Research,Labor Policies |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6101&r=cse |
| By: | Youssouf KIENDREBEOGO |
| Abstract: | This study addresses on the relationship between export participation and firm-level productivity. Using comprehensive data for Egypt, we find that total factor productivity and labor productivity are significantly higher in exporters than in non-exporters. When we differentiate between pre-entry and post-entry differences in productivity performance and after controlling for potential endogeneity problem, we find that this exporter premia is driven by the learning-by-exporting hypothesis. We find no evidence that more productive firms self-select into export markets. Exporting makes firms more productive but more productive firms do not necessarily self-select into exporting. |
| Keywords: | Productivity Performance, Exports |
| JEL: | L60 F10 D21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1365&r=cse |
| By: | Victor Aguirregabiria; Gustavo Vicentini |
| Abstract: | We propose a dynamic model of an oligopoly industry characterized by spatial competition between multi-store retailers. Firms compete in prices and decide where to open or close stores depending on demand conditions and the number of competitors at different locations, and on location-specific private-information shocks. We develop an algorithm to approximate a Markov Perfect Equilibrium in our model, and propose a procedure for the estimation of the parameters of the model using panel data on number of stores, prices, and quantities at multiple geographic locations within a city. We also present numerical examples to illustrate the model and algorithm. |
| Keywords: | Spatial competition; Store location; Industry dynamics; Sunk costs. |
| JEL: | C73 L13 L81 R10 R30 |
| Date: | 2012–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-457&r=cse |