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on Economics of Strategic Management |
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Issue of 2013‒04‒27
seventeen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Cevikarslan, Salih (UNU-MERIT, and SBE, Maastricht University) |
| Abstract: | The aims of this paper are twofold. The first is to analyse the interaction between research and development (R&D) activities of firms and heterogeneous consumer preferences in structuring the evolution of an industry. The second is to explore the heterogeneity in firms' innovation strategies. Is heterogeneity sustainable in the long-term and what happens to the market shares of firms having different innovation strategies when a structural market characteristic (market size) or a behavioural rule (R&D intensity) is changed? To answer these research questions, an evolutionary, multi-agent based, sector-level innovation model is designed. The model addresses supply and demand sides of the market simultaneously with the co-evolution of heterogeneous consumer preferences, heterogeneous firm knowledge bases, and technology levels at the micro level. |
| Keywords: | Heterogeneity, innovation strategies, evolutionary economics, agent-based modelling |
| JEL: | B52 L11 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013019&r=cse |
| By: | Charlotte Schlump (Philipps-Universität Marburg); Thomas Brenner (Philipps-Universität Marburg) |
| Abstract: | Cooperation in innovation processes has become crucial for the competitiveness of many firms. This paper focuses on technology-oriented East German firms and analyses details of their cooperation behaviour by studying the relationships between geographic and social proximity, the importance and frequency of cooperative interaction and the attributes of innovation cooperation partners that influence the importance of cooperation. Data is collected in two questionnaires and analysed by regressions. It is found, among other results, that cooperation that is established via personal contacts is, on average, more helpful and important for firms but involves less frequent interaction. |
| Keywords: | cooperation, firm, East Germany, policy |
| JEL: | D20 I28 O32 R11 |
| Date: | 2013–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2013-06&r=cse |
| By: | KANI Masayo; MOTOHASHI Kazuyuki |
| Abstract: | There is a growing trend of open innovation in the new product development process, while technology insourcing has not been investigated very well as compared to technology outsourcing in empirical literature. In this paper, we examine the factors that determine whether to acquire external knowledge and how to assimilate it in the process of new product development by using novel dataset at the product level, conducted by RIETI in 2011. We distinguish whether technology partners are also business partners such as suppliers or customers, and show their distinct patterns. In the case that technology partners are not business partners, patents play an important role in moderating transaction costs in the partnership, while co-specialization of technology and its complementary assets with partners is found for cases in which technology partners are also business partners. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13033&r=cse |
| By: | Idota, Hiroki; Bunno, Teruyuki; Tsuji, Masatsugu |
| Abstract: | ICT is expected to play an important role for innovations in Japanese SMEs. In this paper, how ICT use promotes innovation is clarified. In addition, what kind of business strategy SMEs should follow is attempted to achieve innovation by focusing on the behavior of the top management as well as employees. A mail survey was conducted in February 2012 to innovative SMEs. An ICT advancement index is constructed based on the sales management system, groupware, internal SNS and SCM. Logistic regression analysis is applied for verifying the four hypotheses by using the ICT index. The results obtained reveals that SNEs that used ICT for new product development such as collecting customers' needs achieve more product as well as process innovation. And it is confirmed that SMEs which positively share information using ICT achieve more process innovation. And top management should demonstrate the leadership, and manage the product innovation process through top-down including the promotion of ICT use. On the other hand, not only the manager but also the employees have to act flexibly and autonomously to share information by ICT are important in the process innovation that is required to restructure existing business processes. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb12:72548&r=cse |
| By: | Nagata, Junji; Shinohara, Takeshi; Kunishi, Teruo |
| Abstract: | Trend toward service economy is growing even stronger in society and industry as well as each company. Frameworks of service innovation become vital not only for analysis but also for stimulating the innovation systematically.In this paper, we focus on the drive-recorder business which is comparatively niche but is evolving in a unique way as a part of transportation- telematique industry. We analyzed the drive-recorder industry. Two factors are mainly considered hereby. The first one is consumerization and the other ecosystem . Both are characteristic factors for the innovation in the sector.We also propose the framework for innovation taking account of these factors. And this framework make us possible to approach systematically toward innovation. We also evaluate and compared this framework among others. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb12:72488&r=cse |
| By: | Kotsemir, Maxim; Meissner, Dirk |
| Abstract: | This paper introduces the evolving understanding and conceptualization of innovation process models. From the discussion of different approaches towards the innovation process understanding and modeling two types of approaches to the evolution of innovation models are developed and discussed. First the so-called innovation management approach which focuses on the evolution of the company innovation management strategies in different socioeconomic environments. Second is the analysis the evolution of innovation models themselves in conceptual sense (conceptual approach) as well as analysis of theoretical backgrounds and requirements for these models. The main focus of analysis in this approach is on advantages and disadvantages of different innovation models in their ability to describe the reality of innovation processes. The paper focuses on the advantages and disadvantages as well as potentials and limitations of the approaches and also proposes potential future developments of innovation models as well as the analysis of driving forces that underlie the evolution of innovation models recently. |
| Keywords: | innovation models; innovation process; generations of innovation models; process dimension of innovation; innovation models evolution; innovation management |
| JEL: | O14 O30 O31 O32 O33 Q55 |
| Date: | 2013–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46504&r=cse |
| By: | Markus Kelle |
| Abstract: | German manufacturing firms increasingly engage in service trade activities. Micro-level data show that producer service exports of German manufacturers amounted to EUR 30 billion in 2005. In particular, construction, engineering and R&D services are exported. The machinery industries and automobile and chemicals producers dominate the overall pattern. The types of services exported vary strongly across industries. Furthermore, export activities are concentrated on a few large exporters. Service exports of advertising, data processing and R&D services are found to likely support foreign affiliates of firms. However, these headquarter services are only infrequently observable. Much more important are construction and engineering services exported by machinery firms. These might represent installation and maintenance services exported to complement the supply of machinery. Beyond the support of foreign production affiliates of firms, R&D services exports generally represent the transfer of knowledge and technology. These might be relevant also in R&D cooperations of firms or when firms have partnerships with foreign suppliers or buyers of intermediate products. |
| Keywords: | services exports, manufacturing sector, goods trade, multinational firms |
| JEL: | D22 F14 F23 L80 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:92&r=cse |
| By: | Luís Cabral; Zhu Wang; Daniel Yi Xu |
| Abstract: | Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and only contribute to agglomeration at later stages of industry evolution. The presence of other firms in the same industry has a negligible (or maybe even negative) effect on agglomeration. Finally, location fixed-effects account for some agglomeration, though to a lesser extent than inter-industry spillovers and spinouts. |
| JEL: | L26 L6 R1 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18973&r=cse |
| By: | Cevikarslan, Salih (UNU-MERIT, and SBE, Maastricht University) |
| Abstract: | The aims of this paper are twofold. The first is to analyse the interaction between research and development (R&D) activities of firms and heterogeneous consumer preferences in structuring the evolution of an industry. The second is to explore the effects of patent life and patent breadth on market outcomes. To answer these research questions, an evolutionary, multi-agent based, sector-level cumulative innovation model is designed. The model addresses supply and demand sides of the market simultaneously with the co-evolution of heterogeneous consumer preferences, heterogeneous firm knowledge bases and technology levels at the micro level. In line with the evolutionary modelling tradition, we have a search algorithm-innovation and imitation of products by firms - a selection of algorithm-revealed preferences of the consumers - and a population of objects in which variation is expressed and on which selection operates: namely, firms (Windrum, 2004). Firms compete on quality and price of their products in an oligopolistic market whereas consumers, constrained by their computational limits, act to maximize their utility with their product choices in a boundedly rational way. There is continuous firm entry and exit depending on the competitive performance of the firms. |
| Keywords: | Patents, industrial dynamics, evolutionary economics, agent-based modelling |
| JEL: | B52 L11 O34 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013020&r=cse |
| By: | Henry Etzkowitz (Human Sciences and Technologies Advanced Research Institute (H-STAR), Stanford University) |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:11&r=cse |
| By: | Ramani, Shyama V. (Brunel University, UNU-MERIT, and STI4Change); Thutupalli, Ajay (UNU-MERIT); Medovarski, Tamas (STI4Change); Chattopadhyay, Sutapa (UNU-MERIT); Ravichandran, Veena (IDRC) |
| Abstract: | The existing marketing, strategy and economics literature have little to offer by way of recommendations to promote entrepreneurship in the informal economy, except to advocate that multinationals, local firms, state and public agencies should work together to bring the informal economy into the fold of the formal economy. In contrast, this paper argues that the business sustainability of women entrepreneurs in the informal economy depends upon their engagements or business partnerships with other women (and men) and women-focussed intermediaries. More than formalization, women entrepreneurs need 'spaces' for dialogue with other women (and men) to learn and build business capabilities. Both the State and firms wanting to penetrate the informal economy can create such spaces through partnerships with NGOs and women-focussed organizations. While formalization of entrepreneurial activity is favourable under some circumstances, it can be detrimental under others - necessitating a case by case evaluation rather than a general rule. In order to ensure the business sustainability of women's ventures in the informal economy, any sort of formalization must occur through a gradual process accompanied by intermediaries. These results are formulated through the compilation and analysis of the existing literature and the study of six detailed case studies of women entrepreneurs from developing countries validated by extensive interviews. The results are then used to propose a closed model of linkages between formal and informal economies which has novel organizational implications for firms competing to establish consumer bases and business partnerships in the Base of Pyramid (BoP) markets of developing countries. |
| Keywords: | Informal economy, entrepreneurship, gender, business sustainability |
| JEL: | L26 B54 E26 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013018&r=cse |
| By: | Thomas Brenner (Philipps-Universität Marburg); Carsten Emmrich; Charlotte Schlump (Philipps-Universität Marburg) |
| Abstract: | This paper examines regional effects of the InnoRegio program, which was conducted by the German Federal Ministry of Education and Research. The InnoRegio program has been a new tool of innovation policy with the aim to improve innovativeness in East Germany on the basis of prosperous regional networks. Besides the direct support of networks and innovation activities, the program was meant to trigger the regional development in East Germany. While existing studies examine whether the development of networks or cluster was successful, this paper focuses on the investigation of regional economic development. Using regional data, especially on employment and patents, we examine whether the involved industries have developed better in supported regions than in other (East) German regions. Developments are investigated for a time span including years before, during and after the policy measure. We find some positive effects in the regional development that can be assigned to the InnoRegio program. |
| Keywords: | cluster policy, InnoRegio program, cluster, networks, region, employment, innovation, policy evaluation |
| JEL: | C22 O12 O25 O33 R11 R28 |
| Date: | 2013–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2013-05&r=cse |
| By: | Winkler, Deborah |
| Abstract: | Using newly collected survey data on direct supplier-multinational linkages in Chile, Ghana, Kenya, Lesotho, Mozambique, Swaziland, and Vietnam, this paper first evaluates whether foreign investors differ from domestic producers in terms of their potential to generate positive spillovers for local suppliers. It finds that foreign firms outperform domestic producers on several indicators, but have fewer linkages with the local economy and offer less supplier assistance, resulting in offsetting effects on the spillover potential. The paper also studies the relationship between foreign investor characteristics and linkages with the local economy as well as assistance extended to local suppliers. It finds that foreign investor characteristics matter for both. The paper also examines the role of suppliers'absorptive capacities in determining the intensity of their linkages with multinationals. The results indicate that several supplier characteristics matter, but these effects also depend on the length of the supplier relationship. Finally, the paper assesses whether assistance or requirements from a multinational influence spillovers on suppliers. The results confirm the existence of positive effects of assistance (including technical audits, joint product development, and technology licensing) on foreign direct investment spillovers, while the analysis finds no evidence of demand effects. |
| Keywords: | Microfinance,Foreign Direct Investment,Emerging Markets,Debt Markets,Markets and Market Access |
| Date: | 2013–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6424&r=cse |
| By: | ITO Takatoshi; KOIBUCHI Satoshi; SATO Kiyotaka; SHIMIZU Junko |
| Abstract: | This paper is the first comprehensive research using a questionnaire survey on the choice of invoicing currency with all Japanese manufacturing firms listed in the Tokyo Stock Exchange. Questionnaires were sent out to 920 Japanese firms in September 2009, and 227 firms responded. We present new firm-level evidence on invoicing currency by the destination and type of trading partners, with a particular emphasis on the difference between arms-length and intra-firm trades. We also conduct cross-section analysis to investigate what determines the invoicing choice of Japanese firms. Our novel findings are as follows. (1) The invoicing choice depends on whether it is an intra-firm trade or an arms-length trade. While yen invoicing tends to be chosen in arms-length trades, there is a strong tendency that invoicing in the importer's currency is used in intra-firm trades, suggesting that the parent firm in Japan assumes and manages the currency risk. In exports to Asian subsidiaries, U.S. dollar invoicing is used. (2) Firm size does matter in the choice of invoice currency. The larger (smaller) the size of the firms, the more likely they are to conduct intra-firm (arms-length, resp.) trades. (3) In terms of the number of Japanese firms, using yen invoicing is more prevalent than U.S. dollar invoicing. However, adjusting for the export value of each firm, the share of U.S. dollar invoicing is on average larger than that of yen invoicing, mainly because Japanese firms with a large volume of exports tend to have a global sales and production network where U.S. dollar invoicing is dominant, especially in the case of "triangular trade." |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13034&r=cse |
| By: | Van Leeuwen, George; Polder, Michael |
| Abstract: | E-business systems are increasingly considered as important examples of ICT related innovations embodied in software applications, the adoption of which is essential for capturing the potential fruits of several ICT externalities. For analysing the importance of this type of embodied technological progress several routes are open. One route is to look at the data that can be used. In this paper we apply the same modelling strategy to two different types of data: 1) cross-country-industry micro-aggregated data obtained after applying Distributed Micro data Analysis (DMD) and 2) firm-level data, in this case for the Netherlands. Today, the econometric analysis based on firm-level data is often more advanced and more complicated from an econometric point of view than the analysis on aggregated data. We show that DMD can be extended to enable the estimation of more complicated models that feature recent directions in micro-econometric analysis on firm-level data. Our application concerns the innovative use of E-business systems by firms. Using a rich set of cross-country-industry data constructed and tailored by DMD for this purpose, we analyse the adoption of three E-business systems (Eterprise Resourc Planning, Customer Relationship Management, Supply Chain Management). We investigate the complementarities in joint adoption and the productivity effects of adopting systems simultaneously or in isolation. The same exercise is repeated on firm-level data for the Netherlands. Our example illustrates that international benchmarking with more elaborate models on cross-country-industry panel data is feasible after using DMD to tailor the underlying firm-level data for specific research questions. This is an important result in the light of the restrictions on pooling cross-country micro data due to confidentiality rules. We find that the results are more diverging for the estimation of complementarities at the adoption stage than for the productivity effects of (joint) adoption. This result implies that measurement error and unobservable heterogeneity plays a greater role when explaining adoption pattern at the firm-level than at the aggregate level. |
| Keywords: | DMD, ICT, innovation, innovation complementarities, productivity |
| JEL: | D2 D24 D8 L2 L21 |
| Date: | 2013–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46479&r=cse |
| By: | Janne Tukiainen; Tuukka Saarimaa |
| Abstract: | We analyze how (anticipated) changes in the competitiveness of the seats of municipal councilors affect their voting behavior over municipal mergers. The competitiveness of the seats changes because the merger changes the composition of political competitors and the number of available seats in the next election. We use this variation for identification and find that the smaller the increase in the competitiveness of a councilor's seat, the more likely he is to vote for the merger. These effects are not related to the behavioral responses of the voters, but arise from the councilors? desire to avoid electoral competition. |
| Keywords: | Seat competitiveness, local politics, municipal mergers |
| JEL: | D72 C36 C35 C34 H77 H11 |
| Date: | 2013–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:38&r=cse |
| By: | John P. Weche Geluebcke (Institute of Economics, Leuphana University Lueneburg, Germany); Isabella Wedl (Institute for Environmental Communication, Leuphana University Lueneburg, Germany) |
| Abstract: | Only recently have the aspects of pollution and environmental protection entered into the empirical literature about international firm activities. The present paper is the first firm-level study on the link between foreign ownership and environmental protection in Germany. We find that, ceteris paribus, foreign owned firms in Germany are more likely to invest in environmental protection. They also invest on a larger scale in terms of add-on measures as well as integrated measures. These results are robust against different measures, different time periods, different control groups, and selection issues arising from fractional response data. Once we control for productivity levels, the differences become less straightforward. However, the higher probability of foreign firms' making general as well as integrated environmental protection investments and the tilt of their composition towards integrated measures remain. We cannot find any support for differences among foreign firms by country of origin. This can be interpreted as support for the new institutionalist hypothesis of international convergence of management practices in the field of environmental management due to normative pressure and de facto standards at the global level. |
| Keywords: | Environmental protection; foreign ownership; country of origin; multinational enterprises; manufacturing; Germany |
| JEL: | F21 Q52 Q55 Q56 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:267&r=cse |