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on Economics of Strategic Management |
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Issue of 2013‒06‒04
twenty papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Ivan Savin (DFG Research Training Program "The Economics of Innovative Change", Friedrich Schiller University Jena and the Max Planck Institute of Economics); Abiodun Egbetokun (DFG Research Training Program "The Economics of Innovative Change", Friedrich Schiller University Jena and the Max Planck Institute of Economics) |
| Abstract: | This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of bilateral cooperation over time between firms occupying different locations in the knowledge space. Social capital is ignored, and firms ally purely on the basis of knowledge considerations. Partner selection is driven largely by absorptive capacity which is itself influenced by cognitive distance and investment allocation between inventive and absorptive R&D. Cognitive distance between firms changes as a function of the intensity of cooperation and innovation. Within different knowledge regimes, we examine the structure of networks that emerge and how firms perform within such networks. Our model replicates some stylised empirical results on network structure and the contingent effects of network position on innovative performance. We find networks that exhibit small world properties which are generally robust to changes in the knowledge regime. Second, subject to the extent of knowledge spillovers, certain network strategies such as occupying brokerage positions or maximising accessibility to potential partners pay off. Third and most importantly, absorptive capacity plays an important role in network evolution: firms with different network strategies indeed differ in the build-up of absorptive capacity. |
| Keywords: | absorptive capacity, agent-based modeling, cognitive distance, dynam- ics, innovation, knowledge spillovers, networks |
| JEL: | C61 C63 D83 D85 L14 O33 |
| Date: | 2013–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-022&r=cse |
| By: | Ghisetti,Claudia; Marzucchi,Alberto; Montresor,Sandro |
| Abstract: | This paper investigates the effects that knowledge sources external to the firm have on its environmental innovations (EIs). Using the CIS 2006-2008, we refer to both the probability to introduce an EI and the number of EI-typologies adopted by firms. We estimate the impact of the “depth” and “breadth” of knowledge sourcing. In addition, we test for the moderating role of the firm's absorptive capacity. In general, knowledge sourcing has a positive impact on both types of EI-performance. However, a broad sourcing strategy reveals a threshold, over which the propensity to introduce an EI diminishes. Cognitive constraints in processing knowledge inputs that are too diverse could explain this result. Absorptive capacity generally helps firms in turning broadly sourced external knowledge into EI. Conversely, internal innovation capabilities and knowledge socialization mechanisms seem to diminish the EI impact of knowledge sourced through intense external interactions. The possibility of mismatches between internal and external knowledge and problems in distributing the decision-makers’ attention between the two could explain this result. |
| Keywords: | Environmental Innovation, Open Innovation, Absorptive Capacity |
| JEL: | Q55 O31 O32 |
| Date: | 2013–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201301&r=cse |
| By: | Antonelli,Cristiano; Colombelli, Alessandra (University of Turin) |
| Abstract: | This paper explores the role of external knowledge and internal stocks of knowledge in the generation of new technological knowledge. It relies on the notion of recombination and brings together three concepts: the appreciation of current expenses in R&D activities; the analysis of the role of the stock of knowledge composition; the identification of the role of external knowledge available in the regional proximity. The empirical section is based upon a panel of companies listed on the main European financial markets for the period 1995–2006. The econometric analysis considers patents as a measure of the knowledge out put and, on the right hand side, next to R&D expenditures, the stock of knowledge internal and external to each firm. The results confirm that the stock of internal knowledge and the access to external knowledge play a key role in assessing the actual capability of each firm to generate new knowledge. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201303&r=cse |
| By: | Colombelli Alessandra; Krafft.Jackie; Quatraro Francesco (University of Turin) |
| Abstract: | The paper analyzes the effects of the properties of firms’ knowledge base on the survival likelihood of firms. Drawing upon the analysis of the patterns of co-occurrence of technological classes in patent applications, we derive the coherence, variety and cognitive distance indexes, accounting respectively for technological complementarity, differentiation and (dis)similarity in the firms’ patent portfolios. The results of our analysis are in line with the previous literature, showing that innovation enhances the survival likelihood of firms. In addition, we show that the search strategies at work in the development of firms’ knowledge base matter in reducing the likelihood of a failure event. Knowledge coherence and variety appear to be positively related to firms’ survival, while cognitive distance exerts a negative effect. We conclude that firms able to exploit the accumulated technological competences have more chances to be successful in competing durably in the market arena, and derive some policy implications concerning the role of public intervention in the orientation of search efforts in local contexts. |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201209&r=cse |
| By: | Antonelli,Cristiano; Crespi, Francesco; Scellato, Giuseppe (University of Turin) |
| Abstract: | This paper contributes the analysis of the persistence of innovation activities, as measured by different innovation indicators and explores its past and path dependent characteristics. The study provides new insights on the role of R&D investments in innovation persistence and analyses differentiated patterns of persistence across product and process innovation, by accounting for complementarity effects between the two types of innovative behaviour. The empirical analysis is based on a sample of 451 Italian manufacturing companies observed during the years 1998-2006, and exploits both descriptive techniques such as Transition Probability Matrix and econometric methods based on dynamic probit models. Results highlight the relevance of innovation persistence. The highest level of persistence is found for R&D-based innovation activities, witnessing the actual presence of significant entry and exit barriers. Moreover, we obtain more robust evidence of persistence for product innovation than for process innovation when complementarity effects between the two types of innovation are accounted for. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201213&r=cse |
| By: | Almeida, Helena (CIEO - Research Centre on Spatial and Organizational Dynamics); Peñalver, Briones (Polytechnic University of Cartagena) |
| Abstract: | All over the world, the small and medium enterprises are more and more organized in consortia, cooperation networks, joint-ventures and strategical alliances allowing not only the reduction of uncertainty and turbulence of the markets but also the gathering of advantages which may make them more competitive. It is worth considering that the results of these relationships are affected by determinant factors which may inhibit or facilitate the entrepreneurship. Our aim is to evaluate the relationship between some of those determinants, association, inter-company cooperation, innovation in the methods of work and creativity—about the entrepreneurship in 236 small and medium enterprises of the national defence. One of the questions initially posed is if there is a significant relation between corporation, innovative methods of work, creativity and entrepreneurship. Secondly, if being creative is an attribute of the entrepreneur, can it have a mediator effect between innovative methods of work and entrepreneurship? A factorial exploratory analysis was made in main components (varimax rotation) and multiple linear regression. The results show the direct relationship of the evaluated determinants and entrepreneurship and the partial mediator effect of the creativity between the innovation in the methods of work and entrepreneurship. These enterprises may expect to develop new methods of work as a high differential component concerning the competition and the more efficient use of knowledge and of the skills of the people who make part of the work team in order to increase their competitiveness. |
| Keywords: | Cooperation; Creativity; Motivation; Entrepreneurship |
| JEL: | L26 |
| Date: | 2013–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_014&r=cse |
| By: | Keshari, Pradeep Kumar; Saggar, Mridul |
| Abstract: | The paper seeks to analyse the determinants of export performance for large firms operating in the machinery and transpoprt equipment Industry of India. The study follows the neo-factor proportion and neo-technology approaches relevant for firm level export. The study establishes the importance of skill factors and technological collaborations in explaining the export performance of firms operating in the Indian machinery and transport equipment Industry. Skilled workers, whether they are employed for product innovation/adaptation, production engineering, or export marketing have contributed immensely to improved export performance in this industry. |
| Keywords: | neo-factor proportions, neo-technology theory, firm level export, machinery and transport equipment, India |
| JEL: | F12 F14 O3 |
| Date: | 2013–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47127&r=cse |
| By: | Varma, Sumati; Bagoria, Mukesh |
| Abstract: | ABSTRACT This paper examines the role of the diaspora as a driver of international entrepreneurship in the context of the Indian IT industry. As an initial exploratory analysis of an emerging phenomenon, it is based on case studies to identify the entrepreneur’s diaspora links as a source of knowledge, learning and reputation driving the born global firm towards international acquisition. It contributes as a pioneering effort attempting to combine diverse streams of literature from the diasporas and international entrepreneurship. |
| Keywords: | international entrepreneurship, diaspora, born global, information technology, India |
| JEL: | F22 F23 L26 L86 M13 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47207&r=cse |
| By: | Simon Forge (SCF Associates Ltd); Colin Blackman (Camford Associates); Itzhak Goldberg (CASE (Center for Social and Economic Research)); Federico Biagi (European Commission – JRC - IPTS) |
| Abstract: | The objective of the study is to document the existence of innovation gaps between the EU and its main competitors in specific ICT sub-sectors – namely web services, industrial robotics and display technologies –and to explore the role of government policies in Europe’s future needs for innovation in information and communication technologies (ICT) through a comparison with the USA and Asian countries. Our analysis shows that rather than there being a simple innovation gap with the EU lagging behind the USA, a more nuanced picture emerges in which firms in different countries have strengths in different sub-sectors and in different parts of the value chain. A key lesson from the analysis of the three subsectors is the critical importance of higher education, particularly elite university research, and of local networks as generated by clusters. Governments can also encourage innovation through appropriate intellectual property and competition laws and, more generally, through the development of a business environment conducive to innovation. Finally, Governments can have a very important role through the funding of early-stage innovation |
| Keywords: | ICT, Innovation policy, Industrial policy |
| JEL: | L5 L6 L8 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc81448&r=cse |
| By: | Enrique López-Bazo (Faculty of Economics, University of Barcelona); Elisabet Motellón (Faculty of Economics, University of Barcelona) |
| Abstract: | This paper uses firm-level data for each of the Spanish NUTS2 regions to estimate the effect of product and process innovations on firm’s export performance. It shows that the firm’s propensity to innovate and its export activity vary substantially across regions. Remarkably, results prove that the effect of innovation on exports is far from regionally uniform. The gap in the propensity to export between innovative and non-innovative firms, conditional to other sources of firm heterogeneity, is shown to be particularly wide in regions with high extensive margin of exports. However, differences in the propensity to innovate do not originate regional disparities in the share of sales abroad by exporting firms. Consequently, stimulate firm’s innovation in the less innovative regions can be an effective tool to increase the share of exporting firms. |
| Keywords: | export propensity, export intensity, product and process innovations, Spanish regions, firm heterogeneity. JEL classification: F14, R10. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201305&r=cse |
| By: | Vranceanu , Radu (ESSECBusiness School) |
| Abstract: | Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. In general capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of profit maximization is fully consistent with the corporation doing good for society. However, there is little justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs. |
| Keywords: | Corporate Goal; Entrepreneurship Theory of the Firm; Internal Entrepreneurs; Profit; Social Role of Business; Virtue Ethics |
| JEL: | A11 A13 L26 M14 P20 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:essewp:dr-13008&r=cse |
| By: | Wladimir Raymond; Jacques Mairesse; Pierre Mohnen; Franz Palm |
| Abstract: | This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the conditional mean of labor productivity: through an observed binary indicator, an observed intensity variable or through the continuous latent variables that correspond to the observed occurrence or intensity. It estimates these models by full information maximum likelihood using two unbalanced panels of Dutch and French manufacturing firms from three waves of the Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and of stronger persistence in productivity than in innovation. |
| JEL: | C33 C34 C35 L60 O31 O32 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19074&r=cse |
| By: | Akçomakn Semih (TEKPOL, Middle East Technical University, and UNU-MERIT); Akdeve, Erdal (School of Management, Yıldırım Beyazıt University); Findik, Derya (TEKPOL, Middle East Technical University) |
| Abstract: | This paper provides a novel taxonomy of firms based on specialization versus diversification in production and markets. Firms may choose to specialize on few production activities or alternatively may build expertise in many activities. There is an accompanying decision when firms sell their products: whether to serve few or many markets. We argue that the location on the specialization-diversification spectrum significantly affects how firms manage innovation. For a sample of 90 innovator ICT firms in Ankara we find that cooperation structure, sources of innovation and funding of R&D display statistically significant different patterns according to the specialization-diversification taxonomy. |
| Keywords: | management of innovation, core competency, expertise building, R&D, ICT |
| JEL: | O32 L22 L86 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013024&r=cse |
| By: | Helen Lawton Smith (Department of Management, Birkbeck College University of London) |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:12&r=cse |
| By: | Keshari, Pradeep Kumar |
| Abstract: | The paper examines the effect of FDI on firm-level export competitiveness by comparing the export behaviour of foreign controlled and domestic firms in Indian machinery industry. It defines the firm-level export competitiveness involving two aspects of export behaviour: i) the export itself or a firm’s decision to export and ii) the exporting firm’s decision on the portion of output to export (export intensity). Findings of the study reveals that the foreign controlled firms have greater likelihood of exporting, even after controlling for the large number of additional factors influencing export activity. However,the export intensity of exporting firms is not affected by FDI but affected favourably by a host of other firm-specific factors such as arms length import of disembodied technology, import of raw material and capital goods, use of labour intensive technology, larger size and years of experience. |
| Keywords: | FDI, Export Competitiveness, Indian Machinery Industry |
| JEL: | L25 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47069&r=cse |
| By: | Giuditta De Prato (European Commission – JRC - IPTS); Daniel Nepelski (European Commission – JRC - IPTS) |
| Abstract: | A firm's decision to establish an R&D centre in a specific location creates externalities affecting other firms and, thus, a random distribution of location choices is unlikely. Expecting that the global distribution of R&D centres fulfils the criteria of a complex network, we apply social network analysis to study the locations of international R&D centres and the relationships between the countries owning and hosting them. We analyse the characteristics of the global R&D network and identify its core members. Further, we include network indices in an empirical analysis of the R&D internationalisation determinants. We find that a country's position in the network, which does not necessarily coincide with its geographical or cultural proximity to other countries, has a significant impact on the formation and intensity of R&D linkages between countries. We provide policy implications addressing the challenges emerging from the increasing internationalisation and network of R&D. |
| Keywords: | globalisation of innovation, location of R&D centres, network analysis, gravity model |
| JEL: | D8 O32 L23 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc79478&r=cse |
| By: | Antonelli, Cristiano; Crespi, Francesco; Scellato, Giuseppe (University of Turin) |
| Abstract: | This paper contributes the analysis of the persistence of innovation activities, as measured by total factor productivity (TFP) and explores its internal and external determinants stressing its path dependent characteristics. The external conditions, namely the quality of local knowledge pools and the strength of the Schumpeterian rivalry, together with the internal conditions, that is the actual levels of dynamic capabilities, as proxied by the levels of wages and the size of firms, exert a specific and localized effect upon the persistent introduction of innovations. A Multiple Transition Probability Matrixes (MTPMs) approach has been implemented to grasp the contingent effects of external effects on the long-term innovation persistence. The empirical analysis of the dynamics of firm level TFP for a sample of about 7000 Italian manufacturing companies observed during the years1996-2005 is based on both the comparison of different transition probability matrixes and on dynamic discrete choice panel data models. The evidence provided by the test of MTPMs in sub-periods suggests that innovation persistence is path dependent, as opposed to past dependent. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201211&r=cse |
| By: | Keshari, Pradeep Kumar |
| Abstract: | Adopting a micro-level framework of impact of FDI in an industry, this study empirically examines the following three issues in the context of Indian machinery industry (IMI) - division 28 of National Industrial Classification, 2008. First of all, it compares the technical efficiency of foreign affiliates of multinational enterprises (FAs) against the domestic firms (DFs) to know if there are spillovers from MNEs to their affiliates. Secondly, it identifies the differences in the determinants of technical efficiency between FAs and DFs. Finally, it examines the presence (or absence) of efficiency spillovers from FAs to DFs in terms of its two major sources: competition effect and demonstration and imitation effect. To examine these issues, we first compute the firm- and year-specific technical efficiency by estimating a stochastic frontier production function with the help of an unbalanced panel of data on a sample of 177 firms for 7 years covering FY 2000/01 to FY 2006/07. Thereafter, we estimate random-effect panel data models of the determinants of firm-level technical efficiency. One of the important finding of the study is that the FAs as a ownership group maintains higher level of technical efficiency than DFs even after controlling for the additional determinants (both observed and unobserved) of technical efficiency. Another significant aspect of the finding is that the competition effect generated by FAs does not play a positive role in enhancing the efficiency of DFs. Probably, the inefficient DFs have been ousted on account of competitive pressure from the efficient FAs. On the other hand, the demonstration and imitation effects generated by FAs through their R&D activities (i.e. knowledge spillover) act as the important channel in enhancing the efficiency of DFs. In sum, FDI is found to have efficiency enhancing effect in the IMI. This finding has considerable policy implication for the IMI, which suffers from the adverse impact of high level of imports of finished goods, limited technological capabilities and operational inefficiency. In the post-WTO era, restricting imports and implementation of trade related investment measures are not the feasible options. Beside, this study also indicates that the import of disembodied technology has no impact on technical efficiency despite the IMI entering into maximum number of foreign technological collaboration agreements during August 1991 to July 2007. Given the current policy of Indian Government for 100 per cent equity participation through FDI on an automatic basis in the manufacturing sector including IMI, the firms desiring to expand their base in this industry may consider the option of attracting FDI for building additional capacities and for enhancing their efficiency levels (viz. from knowledge spillovers from MNEs) and thereby upgrading this industry for facing the challenges of the global competition. |
| Keywords: | Technical Efficiency, FDI, Spillovers, Indian Machinery Industry |
| JEL: | D22 D24 |
| Date: | 2013–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47070&r=cse |
| By: | Guerzoni, Marco; Aldridge, Taylor; Audretsch, David B; Sameeksha, Desai (University of Turin) |
| Abstract: | Scientific breakthroughs emanating from universities can be a trigger for the emergence of new industries such as in the paradigmatic case of biotechnology. Obviously, not all research conducted in the universities leads to radical departure from the existing technological trajectories. When a patent protection is granted to a discovery, it is possible to construct a proxy for the originality of the discovery based on patent citations. Patent originality has been long recognized in fostering the emergence of new technologies and industries. However, while a large body of literature exists measuring the impact of patent originality on a broad range of measures of firm performance, this paper aims at investigating the conditions driving patent originality. In particular, in providing the first empirical examination of the determinants of patent originality, this paper finds that the research context, as reflected by the funding source for the scientist, influences the extent to which intellectual property protected by a patent is original. Eventually, we propose that university scientists funded by their university, which has a more fundamental mission, have a higher propensity to generate patents that are more original. By contrast, university scientists funded either by industry or other non-university organizations have a lower propensity to generate more original patents. |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201219&r=cse |
| By: | Antonelli, Cristiano; Fassio, Claudio (University of Turin) |
| Abstract: | This paper contributes the large literature on the university industry relations providing unique historic evidence on the positive effects of academic spillovers as proxied by chairs, distinguished by disciplinary field, on total factor productivity growth. The analysis impinges upon an original data-base on the evolution of the size and the disciplinary composition of the stock of academic chairs in Italy in the years 1900-1959. The results confirm the contribution of academic knowledge to economic growth and the positive effects of the public support to the academic system. At the same time they shed new light on the differentiated impact of the different disciplines on economic growth. The increase in the number of chairs in engineering and chemistry contributed to total factor productivity growth more than any other discipline. This is consistent with the historic context characterized by the radical transformation of a backward agricultural economy into a highly industrialized and rich one. The results of this cliometric analysis of a case where the corporate mode of knowledge governance had not yet been introduced confirm the viability of the academic mode of knowledge governance. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201212&r=cse |