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on Economics of Strategic Management |
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Issue of 2013‒06‒16
twenty papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Coad, Alex; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes |
| Abstract: | This paper explores the relationship between firm growth, innovation and firm age. We hypothesize that young firms undertake riskier innovation activities and are more oriented towards employment growth than towards harvesting returns in the form of sales growth. Using an extensive sample of Community Innovation Survey for the period 2004-2010, we apply quantile regressions and a Heckman sample selection technique to study the impact of R&D activities on firm growth according to firm age. Our results show that R&D intensity is positively associated with firm growth. However, for young firms R&D shows an increasing influence across the quantiles, while for old firms R&D shows a stable or perhaps decreasing effect over the quantiles. Firm age shows a significant negative impact among young firms, while for the sample of old firms the impact of firm age becomes non-significant. Our Heckman estimations show the evolution of the impact of the R&D on firm growth confirming a significant impact on sales and productivity growth, while the impact is negligible for employment growth. Keywords: firm age, firm growth, innovation, quantile regression. JEL CODES: L25, L20 |
| Keywords: | Empreses -- Creixement, Organització industrial, Innovacions tecnològiques, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211886&r=cse |
| By: | McKelvie, Alexander (Syracuse University); Brattström, Anna (Stockholm School of Economics); Wennberg, Karl (Ratio) |
| Abstract: | This paper seeks to untangle the relationship between new firm’s innovative activities and subsequent growth. We theorize about the inter-related roles of managerial growth willingness, inputs and outputs of innovative activities, and their subsequent link to sales growth. Investigating a longitudinal sample of 282 new Swedish firms reveals a complex set of mediating relationships that, when combined, help explain how innovation affects growth. First, we find growth willingness has an important relationship with innovative inputs such as R&D and market knowledge competence. Second, these inputs affect important innovative outputs such as new product development and the percentage of sales from new products. Third, these outputs directly affect growth – whereas the innovative inputs such as R&D do not have a direct impact. Taken together, our paper highlights the joint importance of managerial attitudes and strategic choices that help to shed new light on the effect of innovation on new firm growth. Implications for research and public policy are discussed. |
| Keywords: | New Firm Growth; Innovation; RD; Growth Willingness |
| JEL: | L22 L26 M13 |
| Date: | 2013–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0206&r=cse |
| By: | Lin, Faqin (Central University of Finance and Economics); Tang, Hsiao Chink (Asian Development Bank) |
| Abstract: | This paper investigates how exporting affects firm innovation. We embed innovation into a firm heterogeneity model with productivity, where in equilibrium the model shows that exporters invest more in innovation, such as research and development (R&D), than non-exporters. Using firm-level data from the People’s Republic of China (PRC), we apply the Levinsohn and Petrin (2003) method of estimating firm productivity and matching econometrics to control for endogeneity. The results show, on average, in contrast to non-exporters, exporters increase their R&D intensity by more than 5%, raise their R&D expenditure by more than 33%, and are 4% more likely to engage in R&D activity. In addition, we find exporting to have a smaller impact on innovation among firms that export processed goods, specifically, those in the electronics sectors, located in coastal provinces, and foreign-owned. |
| Keywords: | Exporting; innovation; firm heterogeneity; matching |
| JEL: | D21 F14 O31 |
| Date: | 2013–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0111&r=cse |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper studies the influence of metropolitan externalities on productivity for different types of long run R&D engagement based on information from the Community Innovation Survey. We apply a dynamic general method of moments model to a panel of manufacturing and service firms with different locations in Sweden, classified as a metropolitan region, the largest metropolitan region, a metropolitan city, the largest metropolitan city and a non-metropolitan area. This analysis generates three distinct results. First, the productivity premium associated with persistent R&D is close to 8 percent in non-metro locations and about 14 percent in the largest city. Second, a firm without any R&D engagement does not benefit at all from the external milieu in metro areas. Third, no productivity premium is associated with occasional R&D effort regardless of the firm’s location. |
| Keywords: | R&D; innovation strategy; productivity; metropolitan; externalities |
| JEL: | C23 O31 O32 |
| Date: | 2013–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0313&r=cse |
| By: | Sasan Bakhtiari (The University of New South Wales); Robert Breunig (Australian National University) |
| Abstract: | We study the implications of vertical integration on innovation performance using firm-level data on Australian manufacturing. We use the data to distinguish between low-cost-oriented and innovation-oriented outsourcing. Outsourcing without innovation lowers costs at the expense of damaging the future chances of innovation, while innovation-oriented outsourcing leads to higher costs but increases the likelihood of future innovation. For firms that innovate and outsource, the probability of future innovation is 54 per cent compared to 15 per cent for those who outsource without innovating. Comparing across firms that innovate, simultaneously outsourcing increases the probability of future innovation by 4 per cent. Innovation-oriented outsourcing is accompanied by firms shifting focus to research and marketing of new products. Our results offer strong support that outsourcing may be used not just as a cost-cutting strategy, but as part of comprehensive firm strategy to innovate and improve. |
| Keywords: | Outsourcing, Innovation, Firm Performance, Business Strategy. |
| JEL: | D22 L21 L24 L6 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2012-35&r=cse |
| By: | Minarelli, F.; Raggi, M.; Viaggi, D. |
| Abstract: | Nowadays innovation represents a strategy to face the economic crisis affecting many sectors globally. It is believed that innovation is one of the most significant factors for the enhancement of competitiveness. Innovation is identified with the creation of value by companies, and networking is believed to be a key way to contribute to the better value creation. In particular networking is object of increasing interest not only by academics but also by political institutions, firstly European Union, due to the beliefs that it can foster innovation among SMEs and hence enhances competitiveness. The development of innovation may requires R&D support from outside and the collaboration with other organizations. It is hence recognized the essential role of networking for the innovation and the participation of SMEs in networks as pivotal strategy. European economy is characterized by SMEs and particularly the agri-food sector. This study carries out an investigation, based on a web survey of Italian food SMEs, presenting an overview of Italian food SMEs engaged in collaborations for innovation purposes. Especially, the examination focuses on the identification of types of organizations mainly involved in collaborations for the resources acquisition and structural factors characterizing such SMEs. Data collection of Italian food SMEs is accomplished by standardized questionnaires designed to be compiled on line in anonymous way. Findings show higher frequency of SMEs involved in collaboration with suppliers for innovation purposes. However, in term of realized innovation, SMEs collaborating with universities demonstrate higher frequency of enhanced innovation. This work presents an additional value in term of comprehension not only for their impact on the nature of the network but also for the conceptualization of proper network able to encourage firm’s participation. Additionally, it must be point out that results from such studies cannot be generalized and extended to outside SMEs nation, hence factors involved in other SMEs cultures need to be carefully investigated at each country’s level. |
| Keywords: | network, innovation, SMEs, Industrial Organization, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, O31, O32, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea13:149934&r=cse |
| By: | Delmar, Frédéric (Sten K. Johnson Centre for Entrepreneurship School of Economics and Management); McKelvie, Alexander (Syracuse University); Wennberg, Karl (Ratio) |
| Abstract: | The performance of new firms is important for economic development but research has produced limited knowledge about the key relationships among growth, profitability, and survival for new firms. Based on evolutionary theory, we develop a model about how new firms resolve uncertainty about their ability to prosper in a market by monitoring changes in profitability. Our model predicts selection pressures to weed out underperforming firms and learning to allow survivors to improve performance and grow. We test our theory using a unique panel of knowledge-intensive new firms in Sweden. We find strong support for the notion that profitability enhances both survival and growth, and growth helps profitability but has a negative effect on survival. Implications are discussed. |
| Keywords: | Entrepreneurship; New Firms |
| JEL: | L22 L26 M13 |
| Date: | 2013–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0205&r=cse |
| By: | Michele Benvenuti (Banca d'Italia); Luca Casolaro (Banca d'Italia); Elena Gennari (Banca d'Italia) |
| Keywords: | innovation, R&D, patents |
| JEL: | O30 O57 L20 I25 D83 D A D D |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_168_13&r=cse |
| By: | Chaker Boughanbouz (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - Université Nice Sophia Antipolis [UNS] - CNRS : UMR6227); Boualem Aliouat (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS]); Fateh Saci (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - Université Nice Sophia Antipolis [UNS] - CNRS : UMR6227) |
| Abstract: | Since their creation, poles of competitiveness are becoming increasingly important in speeches and research literature. They have emerged as a relevant field of study and even a daily echo in business or the general press which report about changes in management practice within these clusters. Currently this structure, which is relatively nascent, focuses on the identification and dissemination of best practices among its actors. The aim of this paper is to outline a theoretical model of integration of inter- actors within the clusters. So, in order to develop this model, we explored a wide array of literature dealing with trust, clusters, and inter-organization relations. Finally, some issues related to the empirical examination of building trust are discussed. The contribution of this paper lies primarily in its study of the concept of trust in a multilateral context. |
| Keywords: | Trust, pole of competitiveness, cooperation, clusters, districts |
| Date: | 2012–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00833518&r=cse |
| By: | Fafchamps, Marcel; Soderbom, Mans |
| Abstract: | Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client are used for the analysis. Only limited support is found for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. Indeed, for certain practices, adoption decisions appear to be local strategic substitutes: if one firm in a given location uses a certain practice, nearby firms are less likely to do so. These results suggest that the diffusion of technology and new business practices may play a more limited role in spurring growth in Africa's manufacturing sector than is often assumed in the present policy discussion. |
| Keywords: | E-Business,Microfinance,Small Scale Enterprise,Labor Policies,Technology Industry |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6474&r=cse |
| By: | Bradley, Samantha R. (University of North Carolina at Greensboro, Department of Economics); Hayter, Christopher S. (New York Academy of Sciences); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper argues that a linear model of technology transfer is no longer sufficient, or perhaps even no longer relevant, to account for the nuances and complexities of the technology transfer process that characterizes the ongoing commercialization activities of universities. Shortcomings of the traditional linear model of technology transfer include inaccuracies—such as its strict linearity and oversimplification of the process, composition, a one-size-fits-all approach, and an overemphasis on patents—and inadequacies—such as failing to account for informal mechanisms of technology transfer, failing to acknowledge the impact of organizational culture, and failing to represent university reward systems within the model. As such, alternative views of technology transfer are presented here that better capture the progression of the university towards an entrepreneurial and dynamic institution, and that advance the body of knowledge about this important academic endeavor. |
| Keywords: | Technology transfer; Entrepreneurial university; Intellectual property; Patents; Innovation; Commercialization |
| JEL: | L26 O31 O34 |
| Date: | 2013–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_010&r=cse |
| By: | Dornbusch, Friedrich; Brenner, Thomas |
| Abstract: | -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r62013&r=cse |
| By: | Pérez, Jessica Helen; Iranzo Sancho, Susana |
| Abstract: | This paper examines empirically the determinants of decentralization of decision- making in the firm for small and medium-sized enterprises (SMEs) that tend to be highly centralized. By decentralization of decisions we mean the delegation of decision rights from the owner or manager to the plant supervisor or even to floor workers. Our findings show that the allocation of authority to basic workers or a team of workers depends on firm characteristics such as firm size, the use of internal networks or the number of workplaces, and workers characteristics, in particular, the composition of the laborforce in terms of education and seniority and whether or not workers receive pay incentives. External factors such as the intensity of competition and the firm s export intensity are also important determinants of the allocation of authority. |
| Keywords: | Empreses petites i mitjanes, Empreses -- Presa de decisions, 33 - Economia, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211755&r=cse |
| By: | Albiol, Judit |
| Abstract: | Using Global Entrepreneurship Monitor data for 41 countries this study investigates the impact of business exit on entrepreneurial activity at the country level. The paper distinguishes between two types of entrepreneurial activity according with the motive to start a new business: entrepreneurs driven by opportunity and necessity motives. The findings indicate that exits have a positive impact on future levels of entrepreneurial activity in a country. For each exit in a given year, a larger proportion of entrepreneurial activity the following year. Moreover, this e ffect turns out to be higher for opportunity entrepreneurs. The findings indicate that both types of entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors we find a di fferential impact on the entrepreneurship. The results show some important implications given that business exit may be overcome when there is a necessity motivation. This has important implications for both researchers and policy makers. JEL codes: L26. Keywords: Entrepreneurship, business exit, social values |
| Keywords: | Emprenedoria, Èxit en els negocis, Empreses -- Aspectes socials, 33 - Economia, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211754&r=cse |
| By: | Marcel van den Berg |
| Abstract: | Constructing a comprehensive data set covering Dutch firms over the years 2002-2008 I am the first to investigate the relationship between trade status, firm size and firm-level productivity in the Netherlands, thereby focusing particularly on small and medium sized enterprises (SMEs). The empirical evidence can be summarized in four stylized facts. The productivity ranking by trade status of Dutch manufacturing firms in increasing order of productivity is: non-traders, importers, exporters and two-way traders. Firm size and being controlled by a company located abroad are positively associated with firm-level productivity. The results point in the direction of self-selection of more productive manufacturing firms into importing, particularly for firms that did not trade altogether prior to the import start and for build-up periods of two and three years towards the import start. I do not find evidence that firms become more productive after an import start because of learning effects. I find considerable heterogeneity in the productivity premia of trade along the firm size distribution. The results suggest that exporting is more complex than sourcing inputs internationally for small firms relative to larger firms. |
| Keywords: | Micro data, firm heterogeneity, imports, exports, productivity, the Netherlands |
| JEL: | D22 F14 F23 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1307&r=cse |
| By: | Glachant, Matthieu; Dussaux, Damien; Meniere, Yann; Dechezlepretre, Antoine |
| Abstract: | Using novel data on patents, trade of equipment goods, and foreign direct investments and insights from the economic literature, the paper seeks to lay out the state of knowledge on the role of innovation and the diffusion of technologies in the greening of global value chains as well as some of the main policy issues. A special emphasis is put on developing countries -- distinguishing emerging economies and least-developed countries -- and on climate-mitigation technologies. Emerging economies are already reasonably well integrated in the global economy. As a consequence, technologies flow in through the imports of capital goods and local investments by multinational enterprises owning technologies. Pushing further technology transfer requires strengthening intellectual property rights, lowering barriers to trade and investments and improving technological absorptive capacities. In contrast, their role in innovation is limited. Standard tools of innovation policy - public research and development, public support to private research and development, better access to finance - should develop. But studies also suggest that governments should introduce more stringent environmental policies with proper enforcement at home to go beyond the adoption of foreign technologies. The situation of least-developed countries is very different: they do not import green technologies and low barriers to trade and foreign direct investment or strict intellectual property rights are unlikely to trigger technology transfer. In these countries, the focus should be on building technological capacities. |
| Keywords: | Environmental Economics&Policies,Technology Industry,ICT Policy and Strategies,E-Business,Climate Change Mitigation and Green House Gases |
| Date: | 2013–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6467&r=cse |
| By: | Geschwind, Lars (Royal Institute of Technology); Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper demonstrates that while ideals of close linkages between research and teaching are widely embraced in research-oriented universities, a practice of division of labour between teaching-oriented and research-oriented staff persists. In an investigation of how the research-teaching nexus is managed at three Swedish universities, we identify a perceived misalignment between institutional incentives for individual academic staff and the needs of teaching. Under pressure from such tensions, managers are forced to deploy pragmatic strategies for the staffing of undergraduate education tasks. This includes allowing research needs and agendas to take priority over teaching needs. While managers actively struggle to secure the participation of senior researchers in education, they often actively prefer to delegate the bulk of teaching activities to less research-active staff. Such strategies seem to reinforce existing patterns of division of labour among academic staff. |
| Keywords: | Teaching-research nexus; university management; research-oriented education |
| JEL: | I21 I23 |
| Date: | 2013–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0316&r=cse |
| By: | Sasan Bakhtiari (School of Economics, the University of New South Wales) |
| Abstract: | This paper sheds new light on forces shaping the outsourcing decision by linking the decision to a certain form of non-linearity in overhead costs which divides a firm’s operation into small and large regimes. Marginal firms that find evolution into a large business too costly outsource in a bid to grow out of bounds instead of expanding internally. This process leads to a lumpy relationship between size and outsourcing, in which outsourcing is only practiced by narrow set of firms in the middle of the distribution. The theoretical implication for size distribution is a bunching of firms at the size where the transition to large regime takes place with a missing middle immediately following it. A panel of Australian small and medium-size firms is used to put the predictions to test with mostly supportive results. The findings open a new avenue to rethink growth and job creation amongst small businesses. |
| Keywords: | Small Business, Outsourcing, Management Organization, Size Distribution. |
| JEL: | C38 D2 L24 L6 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2013-07&r=cse |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Juan Barboni (Despegar. Análisis de Riesgo); Nicolás Ferrari (Axiona. Sociedad de Soluciones); Hanna Melgarejo (Agencia de Gobierno Electrónico y Sociedad de la Información (AGESIC). Sistema De Compras y Contrataciones Estatales) |
| Abstract: | In this work we analyse the effect of export destinations on Total Factor Productivity (TFP) of manufacturing Uruguayan firms for the period 1997-2006. We study two effects: self-selection and learning by exporting. To this end, we work with a panel of firms –provided by the Instituto Nacional de Estadisticas- and the destiny of exports - provided by the Dirección Nacional de Aduanas-. We estimate TFP using the Levinsohn & Petrin (2003) methodology. Results for Pooled Ordinary Least Squares estimations show the association between firms with higher share of their total exports to developed countries and higher TFP than firms exporting to less developed countries. Nevertheless, applying the transition group methodology (Alvarez & López 2005) in order to mitigate endogeneity issues, there is no evidence that exporting to developed countries enhances productivity through learning by exporting. However, evidence of learning by exporting is found for those firms starting to export to less developed countries. These findings suggest an international strategy through which firms reach gains in productivity exporting to markets with lower entry cost, and once they have learnt and improved their productivity, are in a better position to enter into more developed countries. |
| Keywords: | Total factor productivity, exports, destiny of exports, auto-selection, learning by exporting |
| JEL: | D21 D24 F14 O54 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-06-13&r=cse |
| By: | Suleyman Basak (London Business School and CEPR); Dmitry Makarov (New Economic School) |
| Abstract: | This paper investigates the competition among portfolio managers as they attempt to outperform each other. We provide a tractable dynamic continuous-time model of competition between two risk-averse managers concerned about relative performance. To capture the managers’ asset specialization, we consider two imperfectly correlated risky stocks whereby each manager trades in one of the stocks, and so faces incomplete markets. We show that a unique pure-strategy Nash equilibrium always obtains, and provide the ensuing equilibrium portfolio policies explicitly. We find that competition makes a relatively risk tolerant manager decrease, and a risk intolerant increase, her portfolio risk. Moreover, a higher own risk aversion induces a manager to take more risk when the opponent is advantaged, in that she specializes in the stock with the relatively higher Sharpe ratio. We then explore the link between our two key ingredients, competition and asset specialization, and show that competition can be conducive to asset specialization. In particular, we find that both managers, when relatively risk tolerant, can voluntarily opt for asset specialization and the corresponding loss of diversification to avoid competing on the same turf by trading in the same set of stocks. When they are risk intolerant, however, the no-specialization scenario is more likely. When we consider a client investor of a manager, we show that her preferences for or against asset specialization could well be the opposite to that of her manager. We also examine the potential costs to a client investor, arising as managerial turnover or changing stock characteristics misaligns the client manager’s policy. We find that the client loses more when it is her manager who is replaced than the other manager. In contrast, the client’s losses are the same for a given change in her manager’s stock characteristics as for that in the competitor manager’s stock. |
| Keywords: | Competition, Portfolio Choice, Asset Specialization, Relative Performance, Cost-Benefit Analysis |
| JEL: | G11 G20 D81 C73 C61 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:cfr:cefirw:w0194&r=cse |