nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2012‒11‒03
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Innovation Systes and Knowledge-Intensive Enterpreneurship: a Country Case Study of Poland By Richard Woodward; Elzbieta Wojnicka; Wojciech Pander
  2. The role of ownership as R&D incentive in business groups By Enrico Guzzini; Donato Iacobucci
  3. Regional Headquarters Capabilities as Key Facilitator of the Coordination of Transnational Business Activities By Joerg Freiling; Sven M. Laudien
  5. Entrepreneurial Activity in the Venture Creation and Development Process By M. WRIGHT; S. MARLOW
  6. Returnee Entrepreneurs: Resource Orchestration, Context and Knowledge Spillovers By M. WRIGHT; X. LIU; I. FILATOTCHEV
  7. A “Human Growth” Perspective on Organizational Resources and Firm Performance By Silvia Sacchetti; Ermanno C. Tortia
  8. Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries By Vivarelli, Marco
  9. Innovation policy for directing technical change in the power sector By Rob Aalbers; Victoria Shestalova; Viktoria Kocsis
  10. Business Owners’ Preferences in Marketing Practices and their Impact on Firm Performance By Ghouri, AM; Saleem , F; Malik, A
  11. The Effects of FDI on Domestic Employment and Workforce Composition By TANAKA Ayumu
  13. Regulatory Protection and Spillovers When Firms Decide First on Collaboration By Joanna Poyago-Theotoky; Huw Edwards
  14. The Influence of Superstars on Organizational Identification of External Stakeholders: Empirical Findings from Professional Soccer By Daniel Högele; Sascha L. Schmidt; Benno Torgler
  15. Demand or productivity: What determines firm growth? By A. Pozzi; Fabiano Schivardi

  1. By: Richard Woodward; Elzbieta Wojnicka; Wojciech Pander
    Abstract: This study surveys the current state of affairs in Poland with regard to the development of knowledge-intensive entrepreneurship (KIE), or new firm creation in industries considered to be science-based or to use research and development (R&D) intensively. We place KIE in Poland in the larger institutional context, outlining the key features of the country’s National Innovation System, and then focus on KIE itself. Our findings are perhaps more optimistic than many previous studies of knowledge-based economy development in Poland. We observe significant progress due to Polish access to the European Union. The frequency with which universities are playing a significant role as partners for firms in the innovation process has increased significantly; moreover, we observe a significant degree of internationalization of innovation-related cooperation. Another optimistic development is that the level of activity of venture capitalists seems to be fairly high in Poland considering the relatively low degree of development of capital markets offering VC investors exit opportunities. Moreover, after almost two decades of decline in the share of R&D spending in GDP, there are signs that this is beginning to rise, and that businesses are beginning to spend more on R&D. While demand-side problems continue to be significant barriers for the development of KIE, due to the relatively low level of education and GDP per capita in the country, the trends here are optimistic, with high rates of economic growth and improvements in the level of education of younger generations. Significant improvement is still needed in the area of intellectual property protection.
    Keywords: Knowledge-Based Economy, Entrepreneurship, Transition, Post-Communist, SMEs, Poland
    JEL: L26 O31 O52 P27
    Date: 2012–10
  2. By: Enrico Guzzini (Università degli Studi e-Campus, Italy); Donato Iacobucci (Dept. of Information Engineering Università Politecnica delle Marche, Italy)
    Abstract: Several empirical papers have shown that firms belonging to business groups have a higher propensity to engage in R&D. The purpose of the paper is to demonstrate that this higher propensity depends on the ownership share of controlled companies, besides the presence of co-ordination mechanisms. We develop an analytical model and we empirically test the predictions of the model using a dataset of Italian manufacturing firms. From the development of this model we derive three main implications: a) that there is no difference in R&D propensity between stand-alone firms and firms at the bottom of business groups; b) that head and intermediate firms have a higher R&D propensity compared to stand-alone and firms at the bottom of the group; c) that the intensity of R&D depends on the ownership shares in controlled companies. Overall the results of the empirical analysis are in accordance with the implications of the model.
    Keywords: business groups; R&D investment; knowledge spillovers.
    JEL: L2 O32
    Date: 2012–10
  3. By: Joerg Freiling (University of Bremen - Faculty of Business Studies and Economics & ZenTra); Sven M. Laudien (University of Bremen - Faculty of Business Studies and Economics & ZenTra)
    Abstract: Transnational corporations (TNCs) recently face a dilemma: they coevally have to exploit global-based as well as locally enrooted business opportunities ('glocal dilemma'). This brings the aspect of formal and informal coordination to an issue. In our conceptual paper we focus on formal coordination and employ a capability-based perspective to address the specific coordination role regional headquarters (RHQ) as structural coordination tool play in this context. Based on a framework borrowed from entrepreneurship theory, we outline necessary capabilities of RHQs to be able to carry out their coordinative function in a sufficient way. Our paper enhances existing knowledge by highlighting the up to now widely disregarded coordinative power of RHQ structures subject to specific competences.
    Keywords: transnational corporations, regional headquarters, coordination, competences, entrepreneurial functions
    JEL: D23 D29 D74 K12 K40 L22 M52
    Date: 2012–10
    Abstract: The purpose of this special issue is to promote research on the role of family in nurturing entrepreneurial ventures as well as on the importance of strategic entrepreneurship in maintaining the strength and viability of established and multigenerational family firms. Two related research questions are at the heart of this inquiry: (1) In what ways does the influence of family matter to strategic entrepreneurship?; and (2) How can strategic entrepreneurship contribute to understanding and strengthening family firms? We begin this introductory paper by providing a brief overview of the contributions of each of the papers in this issue. We then develop a framework for addressing the role of family firms in strategic entrepreneurship that highlights the input-process-output nature of strategic entrepreneurship in family business and the contexts in which they occur. We conclude by outlining a research agenda for future research in this area along the themes relating to this framework.
    Date: 2012–06
    Abstract: This introductory comment to the special edition notes the complex and dynamic nature of the new venture creation process. Although the growing body of work which explores discrete elements of this process is acknowledged, in-depth analyses of the ‘black box’ of new venture creation remain scarce. Thus, this special edition features papers which recognise and explore how entrepreneurial actors and their ventures progress within and between the various phases necessary to establish viable new firms within differing and uncertain contexts. Three papers are featured offering a diverse range of perspectives upon the challenges encountered during new venture creation and the strategies adopted to address these issues. Drawing from these articles, we present a more nuanced processual view of entrepreneurial activity in the venture creation and development process and in addition, suggest pathways for future research to develop this debate.
    Keywords: Entrepreneurship, new venture creation and development.
    Date: 2012–06
    Abstract: Purpose – Emerging work on returnee entrepreneurs has done little to examine how these individuals coordinate the resources they need to exploit their opportunities. Existing research has recognized the role of context but this has been quite limited. The chapter provides a novel analytical framework that integrates a resource orchestration perspective with recognition of the heterogeneity of context. <br><br>Design/methodology – We build upon returnee entrepreneurship, strategic entrepreneurship theory and theories relating to context and spillovers to distinguish the implications of temporal, institutional, social and spatial dimensions of context for resource selection and coordination. <br><br>Findings – We identify a range of research themes relating to each context. We also discuss methodological issues relating to both qualitative and quantitative research. <br><br>Originality/value – The intention is to spur further entrepreneurship, strategy and international business research.
    Keywords: returnee entrepreneurs; China; emerging economies; strategic entrepreneurship; context; resource orchestration.
    Date: 2012–06
  7. By: Silvia Sacchetti; Ermanno C. Tortia
    Abstract: We define immaterial satisfaction as the degree of wellbeing that workers derive from creativity, autonomy, and personal growth, overall self-fulfillment. These are dimensions of satisfaction that we relate, from American pragmatism, to the use of creative intelligence. The paper deals with the mediating role of immaterial satisfaction between organizational processes (defined by teamwork, on-the-job autonomy and involvement) and organizational performance (defined in terms of improvements in product quality and innovation). We address this relationship in the Italian social service sector. To this end, we implement a structural equation model including both observed and latent variables using a survey dataset that concerns 4134 workers and 320 not-for-profit social cooperatives. The analysis of direct, indirect and total effects in the structural model shows that autonomous innovation positively influences performance. It also shows that impact immaterial satisfaction adds to the impact of worker involvement in making involvement bear positively on performance, while it also reduces the negative impact of task-autonomy. Common method bias is controlled for by resorting to post-hoc testing and by introducing three distal sources of subjective data from directors, managers and paid workers
    Keywords: Dewey, satisfaction, creativity, autonomy, involvement, firm performance
    JEL: J28 J81 L15 L25 L84 M54
    Date: 2012
  8. By: Vivarelli, Marco
    Abstract: The aim of this study is to provide a microeconomic investigation of the concept of entrepreneurship; in particular, it discusses the following issues: 1) the alternative ways of looking at entrepreneurship, distinguishing"creative destruction"from simple"turbulence"; 2) the different microeconomic determinants of new firm formation, distinguishing"progressive"from"regressive"drivers; 3) the relationship between ex-ante characteristics (of the founder) and post-entry performance (of the new firm); and 4) the possible scope for an economic policy aimed at maximizing the impact of entrepreneurship on economic growth. Where possible and appropriate, the paper devotes particular attention to the specific features characterizing entrepreneurship in developing countries.
    Keywords: Microfinance,Access to Finance,Environmental Economics&Policies,Small Scale Enterprise,Banks&Banking Reform
    Date: 2012–10–01
  9. By: Rob Aalbers; Victoria Shestalova; Viktoria Kocsis
    Abstract: <p>This paper discusses policy instruments for redirecting technical change within the electricity sector to mitigate climate change.</p><p>First, we unravel the mechanism behind directed technical change, explaining why markets may underprovide innovations in expensive renewable technologies in comparison to innovations in energy-efficient fossil-fuel generators. Subsequently, we characterize technical change in electricity generation technologies, stressing the heterogeneity of knowledge spillovers both within and between clean electricity generation technologies. We argue that there exists a rationale for a portfolio approach to innovation in the electricity sector, i.e., optimal innovation policies are neither fully generic nor fully specific; and they need to be adapted, in response to new information learned by the government. The existing innovation literature does not, however, provide a clear-cut answer for designing such a policy. We compare policy instruments and argue that public R&D support to clean technologies, either in the form of subsidies or prizes, seems to be the prime candidate for implementing non-generic innovation policy.</p>
    JEL: Q48 Q55
    Date: 2012–10
  10. By: Ghouri, AM; Saleem , F; Malik, A
    Abstract: This short paper is the extended part of Ghouri, et al. (2011) study. This paper presents the finding about the owners of restaurant and catering businesses marketing practices. This study showed their mindset about the marketing practices. The findings suggest that owners of restaurants and catering businesses practicing advertising and pricing better as compare to overall results of previous study Ghouri et al. (2011). As owner are the whole and soul of the business and can visualize the business and its activities from the top, so he/ she taking right decision regarding advertising and pricing activities of marketing. Overall marketing practices as perspective of owners are very influential on performance which indicated the owners’ will and believe about the marketing practices.
    Keywords: Owners Preferences; Marketing Practices; Firm Performance; SME
    JEL: M31
    Date: 2012
  11. By: TANAKA Ayumu
    Abstract: This study uses propensity score matching techniques to examine the effects on domestic employment of Japanese manufacturing, wholesale, and service sector firms that initiated foreign direct investment (FDI) during 2003-2005. Results reveal that, in all three sectors, employment growth was higher among firms that initiated FDI than those that remained exclusively domestic. Moreover, manufacturing firms experienced higher growth in the share of non-regular workers. In addition, empirical results indicate that FDI's positive employment effects were accompanied by positive impacts on overall sales and/or exports. Positive impacts on export sales in manufacturing and wholesale sectors and on overall sales in manufacturing and services sectors were found.
    Date: 2012–10
    Abstract: We respond to calls to incorporate the broader institutional context in which partner selection decisions occur into the study of partner selection. We examine the neglected question concerning how varying institutional distance between potential partners in different countries influences the role of relational embeddedness in cross-border partner selection decisions. We develop an integrative perspective where the institutional context in which partner selection decisions occur defines boundary conditions to the relational embeddedness approach to partner selection decisions. We construct a unique, novel dataset from various sources, comprising 1021 venture capital investments in 12 European countries in which 391 different local venture capital investors invited 302 different foreign investors from 14 European countries. Adopting a case-control analytical approach we find that the effect of relational embeddedness on partner selection is positively moderated by the regulatory, cognitive and normative distance between the institutions in which the local and foreign partners operate.
    Date: 2012–06
  13. By: Joanna Poyago-Theotoky (School of Economics, La Trobe University); Huw Edwards (School of Business and Economics, Loughborough University, U.K.)
    Abstract: We investigate the imposition of a horizontal technical barrier to trade (HTBT) in a symmetric, cross-hauling duopoly. Tariffs and subsidies are ruled out, but, in the absence of a mutual recognition agreement, it is possible for governments to impose HTBTs, so long as firms apply different technologies. If firms are first movers, this possibility may induce them to avoid technical collaboration, in order to tempt governments into creating national monopolies, except where spillovers and R&D effects are high. This exacerbates the costs of regulatory protection, compared to standard models without R&D or spillovers.
    Keywords: Research and development, spillovers, trade, protection
    JEL: F10 F19 L13 L50
    Date: 2012
  14. By: Daniel Högele; Sascha L. Schmidt; Benno Torgler
    Abstract: This paper examines the effect of superstars on external stakeholders’ organizational identification through the lens of sport. Drawing on social identity theory and the concept of organizational identification, as well as on role model theories and superstar economics, we develop several hypotheses regarding the influence of soccer stars on their fans’ degree of team identification. Using a proprietary dataset including archival data on professional German soccer players and clubs as well as survey data of more than 1,400 soccer fans, we find evidence for a positive effect of superstar characteristics and role model perception. We further find that players who measure up to the definition of a superstar are more important to fans of established teams than to fans of unsuccessful teams. The player’s club tenure, however, seems to have no influence on fans’ team identification. We argue that the effect of soccer stars on their fans is comparable to that of CEOs on their organizations’ external stakeholders and consequently apply our results to the business domain. Our results contribute to organizational identification research by extending the list of determinants related to individual persons.
    Keywords: Organizational identification; superstars; role model; fans; soccer
    JEL: L83 Z13
    Date: 2012–10
  15. By: A. Pozzi; Fabiano Schivardi
    Abstract: We disentangle the contribution of unobserved heterogeneity in idiosyncratic demand and productivity to firm growth. We use a model of monopolistic competition with Cobb-Douglas production and a dataset of Italian manufacturing firms containing unique information on firm-level prices to reach three main conclusions. First, demand shocks are at least as important as productivity shocks for firm growth. Second, firms respond to shocks less than a frictionless model would predict, suggesting the existence of adjustment frictions. Finally, the degree of under-response is much larger for TFP shocks. This implies the existence of frictions with differential effects according to the nature of the shock, unlike the typical frictions studied by the literature on factor misallocation. We consider hurdles to firm reorganization as one such friction and show that they hamper firms’ responses to TFP shocks but not to demand shocks.
    Keywords: TFP; demand heterogeneity; firm growth; misallocation
    JEL: D24 L11
    Date: 2012

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