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on Economics of Strategic Management |
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Issue of 2012‒07‒14
twenty-one papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Abiodun A. Egbetokun (Friedrich-Schiller University, Graduate College "Economics of Innovative Change", and National Centre for Technology Management (Federal Ministry of Science and Technology), Obafemi Awolowo University, Nigeria) |
| Abstract: | Analysing the relationship between firms' openness to external knowledge and their innovation performance is nothing new. What is new is studying how this relationship fares in latecomer economic contexts such as Nigeria, and that is the focus of this paper. Using unique micro-level innovation data, it is shown, as the existing literature suggests, that firms are more likely to innovate when they access external knowledge either through formal or through informal interactions. However, innovative firms that exploit external knowledge do not necessarily enjoy greater innovation benefits than those that do not. Thus, while openness to external knowledge might help firms to become better at innovating, it does not assist them in reaping the benefits derivable from their innovation efforts. Moreover, different innovation types are essentially the same with respect to the effect that network resources have on them. Thus, it makes little sense to engage network partners selectively for certain innovation types at the expense of others. |
| Keywords: | innovation, networking, openness, collaboration, external knowledge, Nigeria, manufacturing industry |
| JEL: | O31 L14 L60 |
| Date: | 2012–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-037&r=cse |
| By: | Wignaraja, Ganeshan (Asian Development Bank Institute) |
| Abstract: | This paper assesses factors driving firm-level export performance in Asia’s super exporter—The People’s Republic of China (PRC). While early studies suggested that innovation was important, there has been little research on opening up the black box of technology at firm-level in the PRC, the author undertakes econometric analysis of innovation, learning, and exporting in automobiles and electronics firms in the PRC using a large-scale dataset to identify the most appropriate innovation proxy. Drawing on recent literature on innovation and learning in developing countries, it tests two alternative proxies: (i) a technology index (TI) to capture a variety of minor activities involved in using imported technologies efficiently; and (ii) the research and development (R&D)-to-sales ratio, which represents formal technological efforts to create new products and processes, often at world frontiers. |
| Keywords: | prc; innovation; automobiles; electronics |
| JEL: | F23 L63 O31 O32 O57 |
| Date: | 2012–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0365&r=cse |
| By: | Olaf Merk; Markus Hesse |
| Abstract: | This working paper offers an evaluation of the performance of the Port of Hamburg, as well as an analysis of the port?s impact on its territory and an assessment of relevant policies and governance. It examines port performance in the last decade and identifies the principal factors that have contributed to it. In addition, the report studies the potential for synergies between the Hamburg and Bremerhaven ports. The study also considers the effect of these ports on economic and environmental questions. The value added of the port cluster of Hamburg is calculated, and its linkages with other economic sectors and regions in Germany are delineated. Specifically, the paper outlines the impact of the port?s operations, and shows how its activities spill over into other regions. The report also assesses major policies governing the port, as well as transport and economic development, the environment and spatial planning. These policies include measures instituted by the port authority and local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report?s findings, proposed recommendations aim to improve port performance and increase the positive effects of the port on its territory. |
| JEL: | D57 L91 R11 R12 R15 R41 |
| Date: | 2012–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2012/6-en&r=cse |
| By: | Erika Badillo (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | In this paper we analyse the heterogeneity in firms’ decisions to engage in R&D cooperation, taking into account the type of partner (other companies from the same group, suppliers or customers, competitors, and research institutions) and the sector to which the firm belongs (industrial or services). We use information from the Technological Innovation Panel (PITEC) for the years 2006-2008 and estimate multivariate probit models corrected for endogeneity. We find that the determinants of R&D cooperation differ between sectors. In the industrial sector, the perception of risk as an obstacle to innovation reduces the likelihood of cooperating with companies in the same group and competitors, while in the service sector it reduces cooperation with suppliers or customers. For its part, the possibility of accessing additional human resources has a significantly positive effect on cooperation with all types of partner in the service sector, but not for manufactures.. |
| Keywords: | R&D cooperation; Choice of partners; Industrial sector; Service sector; Innovative Spanish firms. JEL classification: O30; O32; L24; L60; L80. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201213&r=cse |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | We investigate the persistence of levels of self-employment and new business formation in different time periods and under different framework conditions. The analysis shows that high levels of regional self-employment and new business formation tend to be persistent for periods as long as 80 years and that such an entrepreneurial culture can even survive abrupt and drastic changes in the politic-economic environment. We thus conclude that regional entrepreneurship cultures do exist and that they have long-lasting effects. |
| Keywords: | Entrepreneurship, self-employment, new business formation, persistence, culture |
| JEL: | L26 R11 O11 |
| Date: | 2012–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-036&r=cse |
| By: | Duleep, Harriet (College of William and Mary); Jaeger, David A. (CUNY Graduate Center); Regets, Mark (National Science Foundation) |
| Abstract: | This paper describes the theoretical underpinnings and provides empirical evidence for a model that predicts a positive impact of immigration on entrepreneurial activity. Immigrants, we hypothesize, facilitate innovation and entrepreneurship by being willing and able to invest in new skills. At the heart of this theoretical prediction is the observation that human capital not immediately valued in the U.S. labor market is useful for learning new skills. Because immigrants face a lower opportunity cost of investing in new skills or methods, this "transfer" of source-specific skills to the U.S. may lead immigrants to be more flexible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants (even if they are not self-employed) may prove to be areas in which entrepreneurship and innovation are easier to accomplish. Our theory offers a unique perspective on the contributions of immigrants to economic development beyond traditional perspectives that focus on low-cost immigrant labor or immigrant entrepreneurship. |
| Keywords: | immigration, innovation, entrepreneurship, human capital investment, skill transferability, opportunity cost, learning transferability |
| JEL: | J15 J24 J39 J61 L26 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6677&r=cse |
| By: | Andrew Sharpe; Blair Long |
| Abstract: | Innovation is an important driver of productivity growth, which in turn is a major source of improvement in living standards. Given the growing importance of the natural resources sector in the Canadian economy, innovation in this sector is particularly relevant. This report, using a systems-of-innovation approach, analyzes the innovation performance of the Canadian natural resources sector by comparing it to that of the Canadian business sector as a whole. Among the many indicators discussed, the report looks at R&D expenditures, workers’ education and skills, machinery and equipment investment, and the use of information and communication technologies. The key conclusion of the report is that the overall innovation performance of the Canadian natural resources sector is strong and has improved in recent years. However, there is still room for improvement, especially in terms of R&D intensity and labour force skills. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:sls:resrep:1206&r=cse |
| By: | Stéphanie Chatelain-Ponroy (LIRSA-CRC - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Centre de recherche en comptabilité - Conservatoire National des Arts et Métiers (CNAM)); Sophie Morin-Delerm (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers (CNAM)) |
| Abstract: | Purpose : The main aim of the present article is to study the adoption and diffusion of a recent practice : sustainable development reporting by (and within) French universities. Theoretical background, approach taken and methods of analysis : To better understand and analyse this organisational practice, we draw on contributions from three complementary theoretical frameworks: (1) stakeholder theory, (2) new institutionalism (DiMaggio & Powell, 1983) and legitimacy theory (Suchman, 1995), and (3) innovation diffusion theory (Rogers, 1962, 1995; Zaltman, Duncan, & Holbeck, 1973). Backed by these three frameworks, two common themes (adaptability and recursivity, Jarzabkowski, 2004) and two dimensions (fidelity and extensiveness (Ansari et al, 2010) allow us to analyze the adoption and diffusion of sustainable development reporting. We have conducted archival search both in the establishments concerned and within their institutional field. Our empirical study is based on a comparative analysis (intergroup, intragroup and longitudinal) of the contents of the sustainable development reporting of pioneer universities. Findings : The "pioneer" universities in terms of sustainable development reporting - consisting of the innovators and early adopters - appear to adopt and diffuse the practice faithfully but on a limited scale. Specifically, we observe that the "innovators" perform better in terms of fidelity than they do in terms of extensiveness. In the same time, the "early adopters" also perform well in fidelity but make less effort in extensiveness. This can probably be explained by the weak political congruence combined with an equally weak cultural congruence between the practice of sustainable development reporting and the universities. Implications : Future research incorporating the study of sustainable development reporting among the "majority" and the "late adopters" should show how these "follower" universities implement this recent organisational practice. Originality/value : To our knowledge, there is very little research that examines the adoption and diffusion of sustainable development reporting by (and within) French universities. Moreover, we have synthesised, for each institution and each period, the data that sum up the practice of sustainable development (extensiveness as well as fidelity) into grids of analysis. These grids, backed on the works of Ansari & al. (2010) and on those of Jarzabkowski (2004), allow comparison but also constitute a tool for analyzing the practice of sustainable development of the next studied institutions. |
| Keywords: | organizational practice ; sustainable development (SD) ; reporting ; higher education institution ; university |
| Date: | 2012–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00712598&r=cse |
| By: | Fernando Merino, Joaquín Monreal-Pérez, Gregorio Sánchez-Marín |
| Abstract: | This paper studies the determinants of the export activity of family SMEs, disentangling the three main dimensions that comprise the concept of familiness: power, experience, and culture. The results, using the F-PEC scale over a sample of 500 Spanish SMEs, show that this approach identifies the determinants that explain the export activity of family SMEs better than a simple dichotomous approach. Specifically, we find that the expertise transmitted from different generations and the family culture orientation to the firm positively affect the international activities of family SMEs; however, the composition of the firm control–management does not have any significant influence on internationalization |
| Keywords: | Family SMEs, export activity, Familiness, Spanish firms, F-PEC scale |
| JEL: | D22 M16 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1770&r=cse |
| By: | Ritzen, Jo (IZA and Maastricht University) |
| Abstract: | Higher education is in the position to save Europe by rendering a substantial contribution to sustainable economic growth. For that purpose higher education must strengthen its innovative power in entrepreneurship education and by focusing research more on societal problems, while being better empowered and enabled by Governments. Universities must show leadership in resolving or channeling the major societal questions. More European competition between universities in education and research would be helpful. Universities can contribute to recreating hope and optimism through more innovation in the economy. |
| Keywords: | hope, attitudes, Europe, economic growth, higher education, labor market, innovation, competition |
| JEL: | D31 F55 I22 I23 I24 I25 I28 J24 O31 O47 O52 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp44&r=cse |
| By: | Aristovnik, Aleksander |
| Abstract: | The purpose of the paper is to review some previous researches examining ICT efficiency and the impact of ICT on educational output/outcome as well as different conceptual and methodological issues related to performance measurement. Moreover, a definition, measurements and the empirical application of a model measuring the efficiency of ICT use and its impact at national levels will be considered. For this purpose, the Data Envelopment Analysis (DEA) technique is presented and then applied to selected EU-27 and OECD countries. The empirical results show that the efficiency of ICT, when taking educational outputs/outcomes into consideration, differs significantly across the great majority of EU and OECD countries. The analysis of the varying levels of (output-oriented) efficiency (under the VRSTE framework) shows that Finland, Norway, Belgium and Korea are the most efficient countries in terms of their ICT sectors. Finally, the analysis finds evidence that most of the countries under consideration hold great potential for increased efficiency in ICT and for improving their educational outputs and outcomes. |
| Keywords: | Information and Communication Technology (ICT); education; performance; efficiency; DEA; EU; OECD |
| JEL: | I2 L8 O57 H5 O3 |
| Date: | 2012–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39805&r=cse |
| By: | Herbert Dawid (Bielefeld University); Tim Hellmann (Institute of Mathematical Economics, Bielefeld University) |
| Abstract: | In this paper, we study a standard Cournot model where rms are able to form bilateral collaboration agreements which lower marginal cost. While a static analysis of such a model can be found in Goyal and Joshi [5], we introduce an evolutionary model. Stable networks (in the static sense) exhibit the dominant group architecture and can be characterized with respect to the size of the group. However, in contrast to Goyal and Joshi [5], we nd that the group size of connected rms in stochastically stable networks is generically unique and monotonically decreasing in cost of link formation. Further, there exists a lower bound on the group size of connected rms such that a non-empty network can be stochastically stable. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:bie:wpaper:467&r=cse |
| By: | Rollin, Anne-Marie |
| Abstract: | This paper looks at annual changes in Canadian business sector employment from 2001 to 2009. This period encompasses an expansionary phase (2001 to 2008), followed by a recession (2008/2009). Firm-level data are used to decompose yearly net employment change into gross employment creation and destruction, which makes it possible to measure the size of total annual employment reallocation. These measures of employment turnover are compared across industries and firm size classes. |
| Keywords: | Business performance and ownership, Business adaptation and adjustment, Entry, exit, mergers and growth, Small and medium-sized businesses |
| Date: | 2012–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2012024e&r=cse |
| By: | Bah, El-hadj M.; Cooper, Geoff |
| Abstract: | This paper uses survey data collected from Kalaymyo, a small urban city in North West Myanmar, to characterize firms and analyze the constraints limiting their growth. The level of firm ownership is very high but most firms are small, informal, operated out of the home, earning low income and with no employees. The most binding constraints are related to financing constraints, especially lack of access to informal credit. This is followed by the high degree of competition as the majority of firms are small retailers selling non-differentiated goods. This lack of credit combined with an apparent aversion to debt, limits the ability of entrepreneurs to take advantage of the high returns available on investment. We find that firms that made a capital investment over the last three years are significantly more profitable than those that did not. |
| Keywords: | rural investment climate; enterprize development; poverty reduction; Myanmar |
| JEL: | O53 O10 L20 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39819&r=cse |
| By: | Sara Bonesso (Department of Management, Università Ca' Foscari Venezia); Fabrizio Gerli (Department of Management, Università Ca' Foscari Venezia); Annachiara Scapolan (Department of Communication and Economics, Università di Modena e Reggio Emilia) |
| Abstract: | Research on contextual ambidexterity assumes that an organizationÕs capacity to pursue simultaneously exploration and exploitation leverages on organizational solutions encouraging a balance between these two learning orientations. However, limited attention has as yet been devoted to the investigation of contextual ambidexterity at the individual level of analysis. Starting from this gap, this paper addresses the following research questions: How do individuals perceive the learning orientation required of them by their job? Do individualsÕ behaviors match their perceived orientation? How can the matching/mismatching between perceptions and behaviors be explained? To address these issues a multiple case study of 16 managers and assistants in the R&D and Sales units of four medium enterprises located in Northeast Italy was carried out. Our findings show that perceptions and actual behaviors, as dimensions of the personal ambidexterity, are independent of each other and can determine a misalignment with the organizational ambidexterity. Accordingly, we propose a conceptual and operational framework, in which the interplay among individual factors such as prior work experiences and personal characteristics, through the mechanism of role stressors, mold both dimensions of personal ambidexterity. |
| Keywords: | Exploration, Exploitation, Ambidexterity, Learning orientation, Individual behavior |
| JEL: | M10 M12 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:20&r=cse |
| By: | Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi |
| Abstract: | We empirically analyze the host-country determinants of Chinese outbound foreign direct investments (ODI) in the period from 2003 to 2008, using disaggregated data by country and sector and distinguishing between State-owned enterprises (SOEs) and privately owned firms. Our results show that the pattern of Chinese ODI differs according to corporate ownership. Private firms are attracted by large markets and host-country strategic assets and are averse to economic and political risks when choosing investment locations abroad. Differently, state-owned enterprises follow the strategic needs of their home country and invest more in natural resource sectors, being largely indifferent to the political and economic conditions in the host countries. |
| Keywords: | China; Foreign Direct Investment; Internationalization; Corporate Ownership; F14; F21 |
| Date: | 2012–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2012/27&r=cse |
| By: | Laura Alfaro; Maggie X. Chen |
| Abstract: | Quantifying the gains from multinational production has been a vital topic of economic research. Positive productivity gains are often attributed to knowledge spillover from multinational to domestic firms. An alternative, less stressed explanation is firm selection whereby competition from multinationals leads to market reallocation and survival of only the most productive domestic firms. We develop a model that incorporates both aspects and identify their relative importance in the gains from multinational production by exploring their distinct predictions on domestic productivity and revenue distributions. We show that knowledge spillover shifts both distributions rightward while selection and reallocation raise the left truncation of the distributions and shift revenue leftward. Using a rich firm-level panel dataset that spans 60 countries, our structural estimates suggest firm selection and market reallocation constitute an important source of productivity gains while its relative importance varies across nations. Ignoring the role of this source can lead to significant bias in understanding the nature of gains. We also perform counterfactual analysis and quantify both the aggregate and the decomposed welfare effects of multinational production. |
| JEL: | F2 O1 O4 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18207&r=cse |
| By: | Dirk Christian Dohse, Robert Hassink, Claudia Klaerding |
| Abstract: | One of the most significant changes in the global economy today is the strong increase in outgoing foreign direct investment (OFDI) from emerging economies to industrialised countries. Whereas investment in less developed countries is often motivated by the sourcing of natural resources and cheap labour, knowledge and technology-seeking is an increasingly important motive for emerging multinationals investing in developed economies. The current paper is focussed on the role of emerging multinationals as knowledge-transfer agents and pursues three aims: First, to unravel the distinguishing features of emerging multinationals (as compared to ‘traditional’ multinationals), secondly, to critically discuss the usefulness of conventional theoretical concepts in explaining this new phenomenon and thirdly, to launch a research agenda for near-future research on emerging multinationals, with a particular focus on the economic geography of international knowledge flows |
| Keywords: | emerging multinationals, international knowledge flows, economic geography |
| JEL: | F21 F23 M16 O33 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1776&r=cse |
| By: | Dimitris Christopoulos (Panteion University); Peter McAdam (University of Surrey and European Central Bank) |
| Abstract: | Most growth models imply positive impacts on economic growth from greater openness. And a key factor linking openness and growth is the efficiency with which resources are used. Empirically, however, the efficiency impacts of trade have been ambiguous. Using a stochastic frontier analysis, we examine the impact of openness on technical (in)efficiency for a sample of OECD economies. Unlike the bulk of related studies, we work at the industry level. Given recent debates on technology-inspired growth and TFP effects, we additionally examine whether ICT expenditures impacts openness and efficiency. We establish the elasticity of openness with respect to (in)efficiency; TFP and Scale Economies; and Technical Inefficiency across countries and sectors. Both openness and ICT usage have robustly positive impacts on efficiency. Our results shed light on the impact of, spillovers be- tween, and heterogeneity across countries and industries from, increasing openness interacted with the use of advanced technologies. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:sur:surrec:0812&r=cse |
| By: | Vahagn Jerbashian; Anna Kochanova |
| Abstract: | In this paper we empirically show that a more intensive use and wider adoption of telecommunication technologies significantly increases the level of product market competition in services and goods markets. Our result is consistent with the view that the use of telecommunication technologies can lower the costs of entry. This finding is robust to various measures of competition and a range of specification checks. |
| Keywords: | telecommunication technologies; entry costs; product market competition; |
| JEL: | L16 O33 O25 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp463&r=cse |
| By: | Thomas J. Chemmanur; Viktar Fedaseyeu |
| Abstract: | We develop a theory of corporate boards and their role in forcing CEO turnover. We consider a firm with an incumbent CEO of uncertain management ability and a board consisting of a number of directors whose role is to evaluate the CEO and fire her if a better replacement can be found. Each board member receives an independent private signal about the CEO's ability, after which board members vote on firing the CEO (or not). If the CEO is fired, the board hires a new CEO from the pool of candidates available. The true ability of the rm's CEO is revealed in the long run; the firm's long-run share price is determined by this ability. Each board member owns some equity in the firm, and thus prefers to fire a CEO of poor ability. However, if a board member votes to fire the incumbent CEO but the number of other board members also voting to fire her is not enough to successfully oust her, the CEO can impose significant costs of dissent on him. In this setting, we show that the board faces a coordination problem, leading it to retain an incompetent CEO even when a majority of board members receive private signals indicating that she is of poor quality. We solve for the optimal board size, and show that it depends on various board and rm characteristics: one size does not fit all firms. We develop extensions to our basic model to analyze the optimal composition of the board between firm insiders and outsiders and the effect of board members observing imprecise public signals in addition to their private signals on board decision-making. Finally, we develop a dynamic extension to our basic model to analyze why many boards do not fire CEOs even when they preside over a signicant, publicly observable, reduction in shareholder wealth over a long period of time. We use this dynamic model to distinguish between the characteristics of such boards from those that fire bad CEOs proactively, before significant shareholder wealth reductions take place. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:444&r=cse |