nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2013‒09‒24
sixteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions By Alessandra Colombelli; Francesco Quatraro
  2. Cognitive distance in research collaborations By Margherita Balconi; Valeria Lorenzi; Pier Paolo Saviotti; Antonella Zucchella
  3. Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry By Cabral, Luís M B; Wang, Zhu; Xu, Yi (Daniel)
  4. The Nature of Innovation Channels at the Micro-Level: Evidence from Russian Manufacturing Firms By Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
  5. The organizational and regional determinants of inter-regional collaborations – Academic inventors as bridging agents By Friedrich Dornbusch; Sidonia von Proff; Thomas Brenner
  6. Herding cats? Management and university performance By McCormack, John; Propper, Carol; Smith, Sarah L.
  7. The Competitiveness of Global Port-Cities: Synthesis Report By Olaf Merk
  8. Globalization and Multiproduct Firms By Volker Nocke; Stephen Yeaple
  9. Structural Change in Distribution Markets in Peripheral Europe: Spanish Food Retailing, 1950-2007 By Maixe-Altes, J. Carles; Castro Balaguer, Rafael
  10. The Role of Language in Corporate Governance: The Case of Board Internationalization By Piekkari, Rebecca; Oxelheim, Lars; Randøy, Trond
  11. An Anatomy of the Geographical Concentration of Canadian Manufacturing Industries By Kristian Behrens; Théophile Bougna
  12. 'Entrepreneurs, Risk Aversion and Dynamic Firms' By Neus Herranz,; Stefan Krasa,; Anne P. Villamil
  13. One Ring to Rule Them All? Globalization of Knowledge and Knowledge Creation By Richard B. Freeman
  14. U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence By William R. Kerr
  15. Academic patenting and the scientific enterprise: Lessons from a Japanese university. By René Carraz
  16. Do Multinationals Transplant their Business Model? By Marin, Dalia; Rousová, Linda; Verdier, Thierry

  1. By: Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - Université Nice Sophia Antipolis [UNS] - CNRS : UMR6227); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS])
    Abstract: This paper investigates the relationship between the creation of new firms and the properties of the local knowledge bases, like coherence, cognitive distance and variety. By combining the literature on the knowledge spillovers of entrepreneurship and that on the recombinant knowledge approach, we posit that locally available knowledge matters to the entrepreneurial process, but the type of knowledge underlying theses dynamics deserve to be analyzed. The analysis is carried out on 104 Italian NUTS 3 regions observed over the time span 1995-2011. The results show that the complementarity degree of local knowledge is important, while increasing similarity yields negative effects. This suggests that the creation of new firms in Italy is associated to the exploitation of well established technological trajectories grounded on competences accumulated over time, although cognitive proximity is likely to engender lock-in effects and hinder such process.
    Keywords: New Firm Formation; Knowledge-Spillovers Theory of Entrepreneurship; Recombinant Knowledge; Knowledge Coherence; Variety; Cognitive Distance; Italy
    Date: 2013–07–20
  2. By: Margherita Balconi (Department of Economics and Management, University of Pavia); Valeria Lorenzi (Dipartimento di Scienze Economico Aziendali, Università di Milano Bicocca, Italy); Pier Paolo Saviotti (INRA GAEL, Univérsité Pierre Mendés-France, Grenoble, France); Antonella Zucchella (Department of Economics and Management, University of Pavia)
    Abstract: This paper addresses the cognitive dimension of proximity/distance in research collaborations of small biotechnology firms. While the theory of optimal cognitive distance assumes learning as motive of collaborations, we suggest that small specialised firms or sub-units of big diversified organizations tend to collaborate with actors endowed with different specific knowledge, with the purpose of accessing rather than acquiring and assimilating the pieces of knowledge they lack. This leads to the expectation of high cognitive distance between collaborators, who however can understand each other since they share the same basic knowledge. We apply this framework to investigate the research collaborations of a sample of Italian biotech firms, using data on the papers co-authored by individuals belonging to different organizations. In order to measure cognitive distance at a very disaggregated level, we introduce an index originally developed by ecologists to measure distance between different species. As expected, most co-publishing partners have high cognitive distance. Moreover, the knowledge accessing motive is also consistent with the finding that even small firms often engage in extensive networks of collaborations with a remarkable variety of actors and do not tend to enlarge their scope over time.
    Keywords: biotech; cognitive distance; knowledge; research collaborations.
    Date: 2013–09
  3. By: Cabral, Luís M B; Wang, Zhu; Xu, Yi (Daniel)
    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.
    Keywords: Employee spinouts; Industry agglomeration; Local externalities
    JEL: J6 L0 R1
    Date: 2013–04
  4. By: Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
    Abstract: The main purpose of the paper is to analyze different channels for innovations. We analyze the influence of various incentives for innovation in Russian companies taking into account the organization of industries — vertical or horizontal orientation, peculiarities of corporate demography, role and motives of different owners (including government and foreign investors), demand trends, customers‘ profile, nature and intensity of competition in relevant markets. An empirical base for our study is provided by two surveys of Russian industrial companies conducted in 2011 and 2012. One of our hypotheses: in vertically organized sectors that define innovation activeness in the economy (for example, mechanical engineering), the innovative development of the head producers is constrained by the risk of technological gap with its partners in the supply chain. We find out that innovations in Russian industry spread in accordance with two main models: vertical through corporate connections, and horizontal, based on the example of foreign companies in the atmosphere of developed competition.
    Keywords: innovation, industrial organization, supply chain, innovation channels
    JEL: D22 L2 O31
    Date: 2013–07–30
  5. By: Friedrich Dornbusch (Fraunhofer Institute for Systems and Innovation Research ISI, Competence Center Policy and Regions); Sidonia von Proff (Economic geography and Location Research, Philipps-Universität Marburg); Thomas Brenner (Economic geography and Location Research, Philipps-Universität Marburg)
    Abstract: Collaboration over distance is difficult to maintain in innovation projects which require a great deal of regional collaboration. However, patent documents reveal that a number of inventor teams are able to overcome long distances. Earlier literature started to investigate factors, which increase the probability of long-distance innovation co-operation. The paper at hand is restricted to patents with academic participation, but takes a close look at two types of factors in the environment of the inventors: (1) the characteristics of the university that employs the academic inventor(s), and (2) the influence of the regional environment. Research on the impact of these factors is still underdeveloped in the literature. By considering only patents with at least one academic inventor we have a relatively homogeneous subset of patents and can concentrate on the external impacts. We find that a similar research area structure, a high absorptive capacity as well as a high start-up rate foster intra-regional collaboration. More TTO staff and a larger university lead to more long-distance collaboration while the industry orientation of the university does not exert an influence on the distance between inventors.
    Keywords: patents, research collaboration, academic patents, collaboration over distance, Germany
    JEL: O31 R12 L14
    Date: 2013–09–18
  6. By: McCormack, John; Propper, Carol; Smith, Sarah L.
    Abstract: Using a tried and tested measure of management practices which has been shown to predict firm performance, we survey nearly 250 departments across 100+ UK universities. We find large differences in management scores across universities and that departments in older, research-intensive universities score higher than departments in newer, more teaching-oriented universities. We also find that management matters in universities. The scores, particularly with respect to provision of incentives for staff recruitment, retention and promotion, are correlated with both teaching and research performance conditional on resources and past performance. Moreover, this relationship holds for all universities, not just research-intensive ones.
    Keywords: management practices; performance; universities
    JEL: I32 M51 M54
    Date: 2013–07
  7. By: Olaf Merk
    Abstract: This report provides a synthesis of main findings from the OECD Port-Cities Programme, created in 2010 in order to assess the impact of ports on their cities and provide policy recommendations to increase the positive impacts of ports on their cities.
    Date: 2013–09–06
  8. By: Volker Nocke; Stephen Yeaple
    Abstract: We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the documented cross-sectional correlations in firm performance measures, including why larger firms are more productive and more diversified, and yet more diversified firms trade at a discount. Globalization is shown to induce heterogeneous responses across firms in terms of scope and productivity, some of which are consistent with existing empirical work, while others are potentially testable.
    JEL: F12 F15 L25
    Date: 2013–09
  9. By: Maixe-Altes, J. Carles; Castro Balaguer, Rafael
    Abstract: The processes of structural change and modernisation in the food distribution industry have been submitted to different economic and institutional frameworks in European countries. Two essential factors have affected these changes: on one hand, the role of technical, financial and organisational innovations and on the other, institutional factors. The weight of both has varied depending on the historical circumstances of the countries in consideration and their level of development. This paper discusses with the framework of the “latecomers”. In these countries, the factor of innovation has been produced in terms of appropriation, whether this is technological or organisational, usually influenced by foreign models or through direct foreign investment. The impact of these innovations has been highly conditioned by inflexible institutional surroundings. Considering the Spanish food trade in the last sixty years is a good way of dealing with the processes of structural change in Mediterranean Europe. This paper helps one understand the role taken by countries which introduced factors of innovation and growth in less favourable surroundings than those of developed Europe.
    Keywords: Distributive trades, food trade, structural change, innovation, Spain, latecomer
    JEL: L8 L81 N7 N8 N84
    Date: 2013–08
  10. By: Piekkari, Rebecca (Aalto University); Oxelheim, Lars (Research Institute of Industrial Economics (IFN)); Randøy, Trond (University of Agder)
    Abstract: Multinational corporations internationalize their corporate boardrooms in order to capitalize on their commercial and financial internationalization. Board internationalization provides access to specialized knowledge and skills, broadens social networks and ensures greater transparency of strategic decision-making. The entry of a foreign board member is often coupled with a change in the working language of the board. The purpose of the present study is to explore and explain how increased language diversity influences decision-making and work processes of corporate boards. We draw on previous research on board internationalization, diversity and language in multinational corporations. Based on a multiple case study of nine multinational corporations from four Nordic countries, we find evidence of impoverished and silenced discussions in board meetings in those case companies that were unprepared to switch to English as the new working language of the board. Some board members found it difficult to contribute to board meetings, articulate disagreement and felt socially excluded from the board. Such effects on decision-making and work processes were not found in the well-prepared companies. The study adds to the understanding of different modes to internationalize the board as a response to different forms of internationalization of the firm.
    Keywords: Language diversity; Board internationalization; Commercial internationalization; Financial internationalization; Degree of internationalization; Social exclusion; Silencing effect
    JEL: A10
    Date: 2013–09–10
  11. By: Kristian Behrens; Théophile Bougna
    Abstract: We document the location patterns of Canadian manufacturing industries – as well as changes in those patterns over the first decade of 2000 – using detailed micro-geographic data. Depending on industry definitions and years, 40 to 60 percent of industries are clustered. According to our measures, manufacturing industries become less geographically concentrated in Canada, i.e., localization is decreasing. Yet, some of the most localized industries are becoming even more localized. We also document the locational trends specific to small firms, young firms, and exporters. We find that their location patterns do not differ significantly from that of the other firms in their industries.
    Keywords: Location patterns, manufacturing industries, micro-geographic data, Canada
    JEL: R12 L60
    Date: 2013
  12. By: Neus Herranz,; Stefan Krasa,; Anne P. Villamil
    Abstract: This paper conducts a theoretical and quantitative analysis of how entrepreneurs choose firm size, capital structure, default, and owner consumption to manage firm risk, including how these choices change with risk aversion. We decompose an entrepreneur’s default decision into three elements: the fraction of firm debt; the potential reduction in personal consumption from losing the firm; and the ratio of personal wealth to firm scale, which determines an entrepreneur’s ability to inject personal funds to continue operation. Data from the Survey of Small Business Finances is used to calibrate the model and estimate entrepreneur risk aversion. We determine the evolution of entrepreneur net worth, consumption, and firm assets over time. We find that many entrepreneurs have lower net worth and consumption than non-entrepreneurs with the same preferences, but the densities of the distributions of consumption and net-worth have wide upper tails. Thus, entrepreneurship can be a path toward great wealth and high consumption for the top quantiles of entrepreneurs.
    Date: 2013
  13. By: Richard B. Freeman
    Abstract: This paper directs attention at the globalization of knowledge and knowledge creation as the fundamental global driver of economic outcomes in today's information economy. It documents the globalization of knowledge and spread of scientific research from advanced to developing countries and argues that these developments undermine trade models in which advanced countries invariably have comparative advantage in high tech goods and services; determine the immigration of skilled workers; boosts labor standards; and influences incomes and inequality within and across countries. To the extent that knowledge is the key component in productivity and growth, its spread and creation is the one ring of globalization that rules the more widely studied patterns of trade, capital flows and immigration, per my title.
    JEL: F11 F16 F22 J24 J44 J81
    Date: 2013–08
  14. By: William R. Kerr
    Abstract: High-skilled immigrants are a very important component of U.S. innovation and entrepreneurship. Immigrants account for roughly a quarter of U.S. workers in these fields, and they have a similar contribution in terms of output measures like patents or firm starts. This contribution has been rapidly growing over the last three decades. In terms of quality, the average skilled immigrant appears to be better trained to work in these fields, but conditional on educational attainment of comparable quality to natives. The exception to this is that immigrants have a disproportionate impact among the very highest achievers (e.g., Nobel Prize winners). Studies regarding the impact of immigrants on natives tend to find limited consequences in the short-run, while the results in the long-run are more varied and much less certain. Immigrants in the United States aid business and technology exchanges with their home countries, but the overall effect that the migration has on the home country remains unclear. We know very little about return migration of workers engaged in innovation and entrepreneurship, except that it is rapidly growing in importance.
    JEL: F15 F22 J15 J31 J44 L14 L26 O31 O32 O33
    Date: 2013–08
  15. By: René Carraz
    Abstract: In this paper, we study the influence that academic patenting has on faculty members belonging to a research intensive Japanese uni- versity. We intend to contribute to the literature on both the use of patenting in academia and the influence it has on a researcher’s agenda setting. First, we document how recent policy changes have favored an increasing use of patents by faculty members in Japan. Then, us- ing two complementary set of data, cross-section and panel data, we focus our attention on three main dimensions: the effect of patenting on academic productivity measured in terms of publications and their quality; the role of financial factors; and the influence of peer effects. Our main findings are the following. First, we find that patenting and publishing were complementary activities in our two empirical settings. Moreover, we find that the output of colleagues working in the same department influences a researcher propensity to patent. The results show as well that the amount of contractual research funds received by a researcher is positively correlated with his/her number of patents, while the number of research grants - not the amount - is correlated to his/her patenting output. Finally, another interesting result concerns the influence of a researcher’s age on his/her propensity to patent.
    Keywords: Academic patenting, peer effects, intellectual property rights, technology transfer, university-industry relationships, Japanese innovation system.
    JEL: O3
    Date: 2013
  16. By: Marin, Dalia; Rousová, Linda; Verdier, Thierry
    Abstract: What determines whether or not multinational firms transplant their mode of organisation to other countries? We embed the theory of knowledge hierarchies in an industry equilibrium model of monopolistic competition to examine how the economic environment may affect the decision of a multinational firm about transplanting its business organisation to other countries. We test the theory with original and matched parent and affiliate data on the internal organisation of 660 Austrian and German multinational firms and 2200 of their affiliate firms in Eastern Europe. We find that three factors stand out in promoting the multinational firm’s decision to transplant the business model to the affiliate firm in the host country: a competitive host market, the corporate culture of the multinational firm, and when an innovative technology is transferred to the host country. These factors increase the respective probabilities of organisational transfer by 18.5 percentage points, 37, and 31 percentage points.
    Keywords: organisational economics of multinational firms; organisational transfer between countries; the theory of the firm; trade and organisations
    JEL: D23 F12 F23
    Date: 2013–06

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