nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2013‒01‒12
fifteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Assessing the efficiency of HRD technologies in knowledge-intensive firms By Zavyalova, E. K.; Kosheleva, S. V.
  2. Influence of Social Networks on the entrance to foreign markets: Evidence from three Russian entrepreneurial firms By Shirokova, G. V.; Storchevoy, M. A.
  3. Technological Innovation: Winners and Losers By Leonid Kogan; Dimitris Papanikolaou; Noah Stoffman
  4. Energy Intensity and Firm Performance: Do Energy Clusters Matter? By Santosh Kumar, Sahu; K., Narayanan
  5. Innovative development of universities: Top Russian universities By Kazantsev, A K.
  6. Regional Headquarters as Mode of Control for TNC Subsidiaries: A Network-Oriented Perspective By Joerg Freiling; Sven M. Laudien
  7. Human potential as a factor of developing national competitiveness of Brazil, Russia, India and China By Zavyalova, E. K.; Kosheleva, S. V.
  8. Cross-Border M&A and Innovative Activity: Firm-Level Evidence By Stiebale, Joel
  9. Quality of Secondary Education in Russia: Between Soviet Legacy and Challenges of Global Competitiveness By Baranov, Igor N.
  10. Gambling in contests with regret By Han Feng; David Hobson
  11. The geography of European low-cost airline networks: A contemporary analysis By Frédéric Dobruszkes
  12. Firm productivity and institutional quality. Evidence from Italian industry By A. Lasagni; A. Nifo; G. Vecchione
  13. Stratégies marketing pour PME sous-traitantes dans l’horlogerie By Courvoisier, François; Calmelet, Laurence
  14. Collaborative Dominance: When Doing Unto Others As You Would Have Them Do Unto You Is Reasonable. By Souza, Filipe; Rêgo, Leandro
  15. The international development strategy beyond 2015: taking demographic dynamics into account By Ana Cortez

  1. By: Zavyalova, E. K.; Kosheleva, S. V.
    Abstract: The paper presents the results of a comparative study of human resource management peculiarities in two groups of knowledge-intensive firms: those working in IT field and in advertising/ PR field. 100 Russian medium size enterprises were the object of research. The questionnaire made on the basis of the European quality standard "Investors in People" was the research tool. The differences in HR practices aimed at personnel development and relevant to various human resource strategies have been proven to a statistically-valid degree. IT companies tend to realize the high performance strategy, whereas advertising and PR companies prefer the high involvement strategy.
    Keywords: knowledge-intensive firms, HR strategies, HRD technologies,
    Date: 2012
  2. By: Shirokova, G. V.; Storchevoy, M. A.
    Abstract: The paper is devoted to the influence of the social networks on entrance to foreign markets of Russian entrepreneurial firms. Although the majority of researchers assume that social networks play a key role in the process of internationalization of small and medium enterprises, the authors made an alternative claim questioning that influence. For answering the research questions the case method was used. On the basis of analysis of three cases of Russian entrepreneurial firms we found that social networks do play a much less important role in the internationalization process than it is usually assumed in the literature. The most important factors in expanding inter-national business networks are honest business practices that establish trust and commitment in the relationships of international business partners.
    Keywords: social networks, international entrepreneurship, Russia, case study,
    Date: 2012
  3. By: Leonid Kogan; Dimitris Papanikolaou; Noah Stoffman
    Abstract: We analyze the effect of innovation on asset prices in a tractable, general equilibrium framework with heterogeneous households and firms. Innovation has a heterogenous impact on households and firms. Technological improvements embodied in new capital benefit workers, while displacing existing firms and their shareholders. This displacement process is uneven: newer generations of shareholders benefit at the expense of existing cohorts; and firms well positioned to take advantage of these opportunities benefit at the expense of firms unable to do so. Under standard preference parameters, the risk premium associated with innovation is negative. Our model delivers several stylized facts about asset returns, consumption and labor income. We derive and test new predictions of our framework using a direct measure of innovation. The model's predictions are supported by the data.
    JEL: E20 E32 G10 G12
    Date: 2013–01
  4. By: Santosh Kumar, Sahu; K., Narayanan
    Abstract: According to the basic law of supply and demand, as the cost of energy input rises, ceteris paribus, producer prefers to employ smaller quantity of energy input and substitute cheaper inputs for more expensive energy during the production process (Schurr, 1982; Jorgenson, 1984). Hence, the question arises whether determinants of profitability of firms differ based on different types of energy consumption. In analyzing this phenomenon for Indian manufacturing industries, this study tries to find out the determinants of profitability of firms based on three energy clusters (natural gas, petroleum and coal) of Indian manufacturing industries. This study uses data from the PROWESS database provided by the Center for Monitoring Indian Economy from 2000-2008. The finding of the study suggests that capital intensity, age of the firm and MNE affiliation of firms are the common determinants of profitability for different energy clusters in Indian manufacturing industries. However, the determinants of profitability differ for variables such as energy intensity, size of firm and R&D intensity and based on the choice of primary source of energy consumption. In the debate of CDM, climate change; shifting from traditional fuel sources to recent fuel source might help in reducing CO2 emissions, specifically for developing country such as India. Fiscal policies support to industries such as value-added tax exemption for new energy conservation products, import duty reduction and exemption for energy conservation technology might help Indian manufacturing industries to increase the profitability as well as energy efficiency.
    Keywords: Energy; Profitability; Cluster; Indian Manufacturing Industries
    JEL: B23 Q4
    Date: 2011–11–10
  5. By: Kazantsev, A K.
    Abstract: The report presents results of research on the state of the educational, scientific and economic activities of the new cluster of Russian entrepreneurial type universities – national research universities (NRU). The research studied the national practice and international experience of the analysis and rankings of university complexes. Recommendations on the modalities of the system, indicators system and comparative analysis of the NRU were developed. The result of an analytical study of the NRU development programs implementation is presented. As an empirical data normative documents regulating RNUs activity and results of the special survey were used. The study was conducted as a part of a research project which involved scientists from GSOM, MSU М. Lomonosov and Center for Science Research and Statistics Ministry of Education of the Russian Federation
    Keywords: universities, National Research University, entrepreneurial university, university rankings, university assessment indicators,
    Date: 2012
  6. By: Joerg Freiling (University of Bremen - Faculty of Business Studies and Economics & ZenTra); Sven M. Laudien (Otto von Guericke University Magdeburg & ZenTra)
    Abstract: Our conceptual paper sheds light on the role of regional headquarters in coordinating the information and knowledge transfer within the transnational company (TNC) understood as globally dispersed network. We presume that organizational units are embedded in an internal network which is mainly dominated by the TNC headquarters (HQ) and at least one external network that is determined by relationships to the host government, suppliers, customers, (competing) firms, other organizational units, universities, and research labs. We regard the importance of local conditions that may lead to local-based subsidiary knowledge creation which is not triggered off and controlled by the HQ. This forces the HQ to recapture control over the subsidiary initiative to be able to govern it in an adequate and from a superior TNC point of view beneficial way. We believe that RHQ can be employed as organizational tools in this context to ensure an internal flow of information of adequate quality and quantity which resolves the problem of lacking information and shows how RHQ can fulfil this task. The paper contributes to business research by giving a distinct and widely new insight into the mode of operation of RHQ within TNC based on a network-oriented, information-focused perspective.
    Keywords: Transnational companies, headquarters-subsidiary relationship, coordination, governance, regional headquarters, network perspective, information cost approach
    JEL: D23 F23 L22 L29 M19
    Date: 2012–12
  7. By: Zavyalova, E. K.; Kosheleva, S. V.
    Abstract: This paper is devoted to the issue of the role of human capital in developing national competitiveness of BRIC countries. The authors analyze the basic concepts (human capital, human potential, national competitiveness). The article puts forward a hypothesis about the interrelation between the peculiarities of human capital and national competitiveness. Relying on the widely accepted indices and using regression analysis as a tool, the authors prove the rightfulness of this hypothesis. Supplementary analysis of the dynamics of Knowledge-Based Economy Index within the period of time under study (1990 - 2009) allowed to draw a conclusion up-on the difference in the efficiency of using the human potential in the BRIC countries: despite the fact that Russia and Brazil dominate in terms of the level of human potential development and in particular concerning the level of education, they lag behind China and India which use human potential and knowledge most efficiently.
    Keywords: human capital, human potential, national competitiveness, BRIC countries,
    Date: 2012
  8. By: Stiebale, Joel
    Abstract: This paper provides empirical evidence on the relationship between cross-border mergers and acquisitions (M&A) and innovation. For the empirical analysis a unique firm-level data set is constructed that combines balance sheet data and an M&A database with information on patent applications. Within three years after a cross-border M&A, patent applications filed by the merged entity increase by more than 30%. Splitting patent applications by the inventors country it is found that the positive association with post-merger patenting is mainly driven by patents invented in the countries of the acquirers headquarter and its previous subsidiaries. In contrast, there is on average a decrease in patent applications invented in the targets country of more than 60%. Accounting for endogeneity of international acquisitions by estimating dynamic count data models and applying instrumental variable techniques, the results indicate that part of this correlation stems from a causal effect. --
    JEL: D22 F23 G34
    Date: 2012
  9. By: Baranov, Igor N.
    Abstract: In this paper we examine determinants of the quality of secondary education for making informed policy decisions at the levels of student / family, school, country's education system institutions and macroeconomic indicators. The quality of education is estimated by the outcomes of the latest round of PISA from 2009 on mathematics and science skills of 15-year old students from 67 countries. After regression analysis for the pool of countries, we estimate the same determinants for Russia in order to reveal in what way the Russian secondary education system is different from other countries, with a special attention paid to possible explanation of a surprisingly different performance of Russian students on TIMSS and PISA tests. We conclude with the discussion of the limitations of analysis based on international tests and possible policy issues related to the factors of quality of secondary education in Russia.
    Date: 2012
  10. By: Han Feng; David Hobson
    Abstract: This paper discusses the gambling contest introduced in Seel & Strack (Gambling in contests, Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 375, Mar 2012.) and considers the impact of adding a penalty associated with failure to follow a winning strategy. The Seel & Strack model consists of $n$-agents each of whom privately observes a transient diffusion process and chooses when to stop it. The player with the highest stopped value wins the contest, and each player's objective is to maximise their probability of winning the contest. We give a new derivation of the results of Seel & Strack based on a Lagrangian approach. Moreover, we consider an extension of the problem in which in the case when an agent is penalised when their strategy is suboptimal, in the sense that they do not win the contest, but there existed an alternative strategy which would have resulted in victory.
    Date: 2013–01
  11. By: Frédéric Dobruszkes
    Abstract: Low-cost airlines (LCAs) have become essential actors supplying nationwide and continental air services.This paper focuses on the European case and investigates how the LCA spatial strategy hasevolved since the last available comprehensive analysis in 2004. Using comprehensive data, the analysisis conducted at three levels: global, cities and networks. It shows that LCAs now represent 31% ofintra-European airline seats. Although LCA business has expanded to Central-East Europe, Morocco,and a few remote areas, it remains mainly focused on the intra-Western market. In general, LCAs servelarge cities and tourist destinations. The use of secondary, regional airports is put into perspective. Servicevolatility is low at the city level but significant at the inter-city level. Average distance hasincreased, but most flights are short-haul. LCAs play an important role in launching new routes, thusdiversifying the European airline network, and in increasing frontal competition with traditional airlineson pre-existing routes. The niche markets are common in terms of routes but are rather limitedin terms of seats supplied. Actually, the main specificity of the largest LCAs is the provision of flightsthat do not serve the home country. A typology of networks demonstrates that there is no a singleEuropean low-cost model.
    Keywords: Low-cost airlines; Low-fare airlines; No-frills airlines; Air transport; Airline networks; Europe
    Date: 2013
  12. By: A. Lasagni; A. Nifo; G. Vecchione
    Abstract: This paper aims at contributing to the debate on the determinants of differentials in firms’ productivity. The case of Italy looks particularly interesting, since it is characterized by a substantial and long-lasting productivity gap of industrial firms located in the Southern regions with respect to the rest of the country. We test the hypothesis that the macro factors, particularly the quality of institutions, play a central role in explaining Italian firms’ productivity. Consistent with previous studies, our results show that institutional quality is one of the basic determinants of the observed TFP differentials across firms located in different Italian regions.
    Keywords: productivity, macroeconomic factors, institutional quality, differentials
    JEL: C33 D24 L60 O43 R11
    Date: 2012
  13. By: Courvoisier, François; Calmelet, Laurence
    Abstract: Most industries have been losing market share due to the world financial crisis. Even though the marketing strategies of watch makers are constantly studied by BtoC marketers, it is difficult to find a research about theirs subcontractors and the way they are trying to improve their position in the BtoB value chain. This research aims to highlight the way industrial suppliers interact with these well-known brands and what marketing strategy they are implementing. Several interviews in the Arc Jurassien were carried out. This article concludes with some managerial advice and axis for further researches.
    Keywords: Strategy; watch industry; subcontractor; BtoB
    JEL: M31 L6
    Date: 2012–01–01
  14. By: Souza, Filipe; Rêgo, Leandro
    Abstract: In this article, we analyze how reasonable it is to play according to some Nash equilibria if players have a preference for one of their opponents’ strategies. For this, we propose the concepts of collaborative dominance and collaborative equilibrium. First we prove that, when the collaborative equilibrium exists it is always efficient, what can be seen as a focal property. Further we argue that a reason for players choosing not to collaborate is if they are focusing in security instead of efficiency, in which case they would prefer to play maximin strategies. This argument allows us to reduce the hall of reasonable equilibria for games where a collaborative equilibrium exists. Finally, we point out that two-player zero-sum games do not have collaborative equilibrium and, moreover, if there exists a strategy profile formed only by collaboratively dominated actions it is a Nash equilibrium in such kind of game.
    Keywords: Nash Equilibrium; Collaborative Dominance; Two-Players Zero-Sum Games
    JEL: C7
    Date: 2012–11–20
  15. By: Ana Cortez
    Abstract: Demographic dynamics have strong repercussions for development and need to be addressed in the definition of the global development strategy for post 2015. Despite divergent trends across countries, international migration offers no definitive solution. A comprehensive approach is needed. Countries with declining and ageing workforces need to sustain or raise productivity. Countries with growing labour forces need to embark in growth patterns that are labour intensive, offer possibilities for dynamic structural change and productivity increases. Both cases require investments in education, skill formation and upgrading. The impact of population ageing on economic variables is nuanced but should not be ignored.
    Keywords: population, ageing, pension systems, poverty, labour force, productivity, dependent populations, migration, fertility
    JEL: I3 J11 J21 J24
    Date: 2012–12

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