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on Economics of Strategic Management |
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Issue of 2013‒10‒25
nineteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Leandro D’Aurizio, (Bank of Italy); Marco Marinucci (Bank of Italy) |
| Abstract: | The paper describes the innovation strategies of a representative sample of Italian firms participating to the Bank of Italy’s yearly survey. The evidence covers the 2008-2010 period and highlights some stylized facts widely discussed in the economic literature. Results show that the activity of R&D is carried out within the firm, basically self-financed and it is more intense among bigger firms settled in central and northern Italy. On the other hand Public funding of R&D seems not able to influence the firms’ decision of undertaking the innovation process. Even though R&D expenditure and innovation activity are highly correlated, managerial best practices tend to be positively associated with R&D expenditure but to a lesser extent with the firms’ ability to introduce an innovation. Moreover, exporting firms have a higher propensity both to invest in R&D and to patent their intellectual property. Finally, the survey shows that the most relevant obstacles for Italian firms to innovate are the high setup costs and the lack of skilled research personnel. |
| Keywords: | research and development, innovation |
| JEL: | O31 O32 L25 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_197_13&r=cse |
| By: | Dornbusch, Friedrich; Neuhäusler, Peter |
| Abstract: | It is generally claimed that universities provide the scientific basis for future technological progress. Still, empirical evidence of the impact of direct links between universities and firms remains weak and is often at least inconsistent. This paper aims at contributing to the literature by analyzing how direct academic involvement affects the output of inventive activities of research teams in different organizational backgrounds. By applying a unique dataset of German academic and corporate patents, we find that boundary-spanning knowledge production with academic inventors raises the innovative performance of SMEs and MNEs. Furthermore, geographical proximity between team members is generally shown to be valuable for team performance in terms of the influence on future technological developments. At the same time, the results indicate that academic involvement helps inventor teams to profit from spatially distant knowledge sources. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:37&r=cse |
| By: | Ernest Miguélez (Economics and Statistics Division, World Intellectual Property Organization & AQR-IREA & CReAM); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | The purpose of this paper is to assess the extent to which regions’ absorptive capacity determines knowledge flows’ impact on regional innovation intensity. In particular, it looks at the role of the cross-regional co-patenting and mobility of inventors in fostering innovation, and how regions with large absorptive capacity make the most of these two phenomena. The paper uses a panel of 274 regions over 8 years to estimate a regional knowledge production function with fixed-effects. Network and mobility variables, and interactions with regions’ absorptive capacity, are included among the r.h.s. variables to test the hypotheses. We find evidence of the role of both mobility and networks. However, inflows of inventors are critical for wealthier regions, while have more nuanced effects for less developed areas. It also shows that regions’ absorptive capacity critically adds an innovation premium to the benefits to tap into external knowledge pools. Indeed, the present study corroborates earlier work on the role of mobility and networks for spatial knowledge diffusion and subsequent innovation. However, it clearly illustrates that a certain level of technological development is critical to take advantage of these phenomena, and therefore “one-size-fits-all” innovation policies need to be reconsidered. |
| Keywords: | absorptive capacity, inventor mobility, spatial networks, patents, regional innovation. JEL classification: |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201308&r=cse |
| By: | Sahu, Santosh Kumar; Narayanan, K. |
| Abstract: | This study attempts to find out the relationship between exports and Participation in Clean Development Mechanism [CDM] in the technology intensive industries in India. Data are used from the PROWESS, CMIE and the VCU (Verified Carbon Units) database from 2007 to 2012. Results of this study indicate that firm size, age of the firms, profitability and R&D intensity are the major determinants of export intensity. In addition, technology imports and multinational affiliation also help firms in exporting more. The CDM participation in terms of higher VCU, and energy related technological advancements at firm level are also found to be major determinants of export intensity. India, unlike other established European carbon markets is not a platform for trading but the country is known for its creation of VCU and selling them. Government should focus more on smaller and less profitable firms and create a wider platform for them to be an active participant. Technology spillovers created by bigger and profitable firms which attract more benefits from Verified carbon offsetting should pool the entire interested ready-to-participate firms and attain a common goal, i.e. economically viable and environmentally sustainable and the leaders in the international export market. |
| Keywords: | Exports, CDM, Technology Intensive Indian Manufacturing Industries |
| JEL: | L15 L52 Q37 Q48 |
| Date: | 2013–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50745&r=cse |
| By: | Mohammad Tavassoli; Nunzia Carbonara |
| Abstract: | This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovative capability. When it comes to variety, related knowledge variety plays a superior role. |
| Keywords: | Knowledge intensity, Knowledge variety, Related variety, Unrelated variety, Internal knowledge, External knowledge, Patent applications, Functional regions |
| JEL: | O32 F14 R12 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1317&r=cse |
| By: | Frietsch, Rainer; Neuhäusler, Peter; Rothengatter, Oliver |
| Abstract: | Empirical evidence shows that the distribution of patent applications is highly skewed in terms of company size, with a few large enterprises being responsible for the majority of patent applications. Small and medium-sized enterprises (SMEs), on the other hand, are important players in national innovation systems and are the subject of policy sup-port in many countries. Thus, this study examines the participation rate of SMEs in patenting activities in more detail, differentiating SME patent filings by country and technology area. The analyses are based on a unique, integrated and enriched patent data set of nearly 1.2 million patent applications, built upon PATSTAT data, separating companies into SMEs and large enterprises. The results of descriptive and multivariate analyses reveal that SMEs file fewer interna-tional patents than multinational enterprises (MNEs). However, those SMEs which are active internationally even outperform their larger counterparts in terms of international-ization. It can further be observed that SMEs are more active in emerging technologies, have smaller inventor teams and smaller family sizes on average. Furthermore, patents filed by SMEs are withdrawn more frequently but refused less often. Patents of large firms, on the other hand, have a higher chance of being granted and are cited more frequently. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:36&r=cse |
| By: | Anuja Utz; Jean-Eric Aubert |
| Keywords: | Agricultural Knowledge and Information Systems Information and Communication Technologies - ICT Policy and Strategies Private Sector Development - E-Business Education - Knowledge for Development Macroeconomics and Economic Growth - Knowledge Economy Agriculture |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16134&r=cse |
| By: | Nils Ellwanger; Ron Boschma |
| Abstract: | In economic geography, geographical proximity has been identified as a key driver of M&A activity. In this context, little attention has yet been drawn to the effect of industrial relatedness, which refers to the similarity and complementarity of business activities. We examine 1,855 domestic M&A deals announced between 2002 and 2008 in the Netherlands, and we assess the extent to which geographical proximity and industrial relatedness affect M&A partnering. Our study shows that geographical proximity drives domestic M&A deals, even at very detailed spatial scales like the municipality level. We also found evidence that companies that share the same or complementary industries are more likely to engage in an M&A deal. Logistic regressions show that the effect of industrial relatedness is stronger than the effect of geographical proximity. |
| Keywords: | mergers and acquisitions, Netherlands, geographical proximity, home bias, industrial relatedness |
| JEL: | O18 R00 R11 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1319&r=cse |
| By: | Neil Foster-McGregor (The Vienna Institute for International Economic Studies, wiiw); Anders Isaksson; Florian Kaulich |
| Abstract: | Abstract In this paper we examine productivity differences between trading and non-trading firms in the services sector using recently collected data on a sample of 19 sub-Saharan African firms. A variety of parametric and non-parametric tests are implemented in order to examine whether exporters, importers and two-way traders perform better than non-traders, and whether there are differences in performance between different types of trading firms. Our results indicate that services firms that are engaged in international trade perform significantly better than those firms that trade on the domestic market only. Two-way traders and exporters only are found to perform better than importers only, with no significant difference in performance found between two-way traders and exporters only. We further present evidence indicating that there is no significant difference in performance between export starters and export continuers, a result consistent with the self-selection hypothesis for African services firms. |
| Keywords: | productivity, imports, exports, services firms |
| JEL: | D24 F10 L10 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:98&r=cse |
| By: | Chris Kimble (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School, Euromed Marseille - École de management - Association Euromed Management - Marseille) |
| Abstract: | This article returns to a theme addressed in Vol. 8(1) October 2002: knowledge management and the problem of managing tacit knowledge. The article is primarily a review and analysis of the literature associated with the management of knowledge. In particular, it focuses on the works of a group of economists who have studied the transformation of knowledge into information through the process of codification and the knowledge transaction topography they have developed to describe this. The article explores the theoretical and philosophical antecedents of the economists' views. It uses this as a basis for examining the dominant views of knowledge that appear in much of the literature on knowledge management and for performing a critical evaluation of their work. The results of the analysis centre upon the question of when is it appropriate to codify knowledge. They present a basic summary of the costs and benefits of codification before looking in more detail at its desirability. The conclusions concern the implications of the above for knowledge management and the management of tacit knowledge. They deal with the nature of knowledge management, some of the reasons why knowledge management projects fail to achieve their expectations and the potential problems of codification as a strategy for knowledge management. |
| Keywords: | codification; information management; knowledge management; tacit knowledge |
| Date: | 2013–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00826911&r=cse |
| By: | Ådne Cappelen; Arvid Raknerud; Marina Rybalka (Statistics Norway) |
| Abstract: | We address the question of whether the returns to R&D differ between R&D projects funded by public grants and R&D in general. To answer this question, we use a flexible production function that distinguishes between different types of R&D by source of finance. Our approach requires no adjustment of the sample or data in order to include firms that never invest in R&D, in contrast to the standard Cobb-Douglas production specification. We investigate the productivity and profitability effects of R&D using a comprehensive panel of Norwegian firms over the period 2001-2009. The results suggest that the returns to R&D projects subsidized by the Research Council of Norway do not differ significantly from R&D spending in general. Our estimate of the average rate of return to R&D is about 10 percent. This estimate is robust with respect to whether firms with zero R&D are included in the estimation sample or not. In contrast, using a standard Cobb-Douglas specification and restricting the sample of firms to those with positive R&D, leads to implausibly high estimates of the rate of returns. |
| Keywords: | Returns to R&D; Public grants; Public subsidies; Productivity |
| JEL: | C33 C52 D24 O38 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:740&r=cse |
| By: | Filippo Vergara Caffarelli (Bank of Italy); Giovanni Veronese (Bank of Italy) |
| Abstract: | This study analyses Italy’s system for supporting internationalization, i.e. the set of public institutions and policies for promoting Italian businesses and products abroad. These policies are designed to overcome the barriers to operation in foreign markets, which may be distant in terms of culture and regulation and hard to access owing to legal and bureaucratic obstacles. The goal is to enhance the competitiveness of the Italian economy and ultimately put it back onto a growth path. The analysis has two parts: the examination of the institutional framework and the quantification of the public human and financial resources that are employed, thus providing an initial assessment of the performance of the system as a whole. Despite recent regulatory changes, the system is still quite complicated, with problems of coordination and overlapping among the different actors. Consequently the promotional system, while mobilizing considerable human and financial resources, even by comparison with Italy’s main European partners, is lagging behind in its ability to encourage foreign establishment and exports of Italian companies. |
| Keywords: | firms’ internationalization, export promotion |
| JEL: | F13 H25 H81 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_196_13&r=cse |
| By: | Charles HARVIE (School of Economics, Facutly of Commerce, University of Wollongong); Dionisius NARJOKO (Economic Research Institute for ASEAN and East Asia (ERIA)); Sothea OUM (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | This paper sheds light on the issue of SME financing in selected Asian economies using a unique sample survey. It elaborates on (i) the key sources of external finance for SMEs (ii) the extent to which, if at all, the SME sector as identified by firm size, country and in aggregate for a sample of countries in Asia is systematically disadvantaged, or rationed, with respect to access to external financing, (iii) the key factors contributing to the extent of this rationing, focusing upon firm characteristics, owner characteristics and firm performance, and (iv) the importance of financial rationing for SME performance. Our empirical results confirm the salient characteristics of successful SMEs with regard to accessing external funding, their ability to access multiple financial institutions and types of finance, and identifying potential credit rationing or risk premiums imposed by financial institutions on SMEs. The results also reveal how risk premiums affect the innovation capability and exporting activity of SMEs. |
| Keywords: | small and medium enterprises (SMEs), external financing, rationing, firm characteristics, Asia. |
| JEL: | G32 L22 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2013-23&r=cse |
| By: | Toufic M. El Masri (Leuphana University Lueneburg, Germany) |
| Abstract: | How can small and medium-sized German postal providers ensure nationwide geographical coverage without the aid of the former monopolist? A closer look at the industry revealed that postal providers in Germany engage in different types of cooperation in order to expand their geographical coverage independently from the market leader. In order to shed light on the effects of cooperation, I conducted a theoretical analysis using a spatial economic model complemented by a brief game-theoretical discussion. Moreover, I provide the first descriptive and case study evidence from unique data collected in 2010 and 2011, within the framework of a German postal market survey. I found that small postal providers cooperate with each other in order to extend their geographical service area and to succeed in the market. Furthermore, I also found – in both the theoretical analysis as well as in the evidence – that there is a negative counter-effect stemming from this cooperation. |
| Keywords: | Cooperation, Competition, Germany, Network Industries, Postal Sector |
| JEL: | D24 L22 L51 L97 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:286&r=cse |
| By: | Shahbaz Nasir; Kaliappa Kalirajan |
| Abstract: | Advancements in information and communications technologies (ICTs) have increased the possibilities for trade in modern services and many Asian emerging and developed economies are participating increasingly in these new trade activities. This paper examines the export performance of these emerging and developed Asian economies in selected modern services: computer and information services, business and professional services, and telecommunications services, using a stochastic frontier gravity type model. Estimation results show that performance of emerging economies in South Asia and the ASEAN region, in terms of realization of export potential, is considerably lower than that of the developed world in North America and Europe. The results also show that the number of graduates and the ICT infrastructure in emerging countries are amongst key factors for modern services exports. These findings suggest that emerging economies need to remove ‘behind the border’ constraints and adopt advanced technologies in order to catch up with the high performing developed countries. |
| Keywords: | Services exports, stochastic frontier gravity model, Asia, North America, and Europe. |
| JEL: | F14 C24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pas:asarcc:2013-07&r=cse |
| By: | Rita van Deuren (Rita van Deuren, PhD, Assistant Professor, Academic Coordinator MBM Programs, Maastricht School of Management, the Netherlands. Contact: deuren@msm.nl) |
| Abstract: | HEI in developing countries face the requirement to increase performance and improve results to enlarge their contribution to socio-economic development and poverty reduction. Organizational capacity is considered a pre-requisite for this performance. Organizational capacity is enhanced by capacity development processes and activities. This paper is about capacity development in higher education institutions (HEI) in developing countries. The introduction chapter of the paper first describes the objective of the paper and the method used to realize the objective. The chapter also includes a brief introduction on systems thinking, since concepts and ideas of systems thinking are frequently used in the paper. Finally, this chapter presents an outline of the paper. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2013/30&r=cse |
| By: | Juan José Echavarría; Luis Fernando Melo Velandia; Mauricio Villamizar |
| Abstract: | To date, there is still great controversy as to which exchange rate model should be used or which monetary channel should be considered, when measuring the effects of monetary policy. Since most of the literature relies on structural models to address identification problems, the validity of results largely turn on how accurate the assumptions are in describing the full extent of the economy. In this paper we compare the effect of different types of central bank interventions using an event study approach for the Colombian case during the period 2000-2012, without imposing restrictive parametric assumptions or without the need to adopt a structural model. We find that all types of interventions (international reserve accumulation options, volatility options and discretionary) have been successful according to the smoothing criterion. In particular, volatility options seemed to have the strongest effect. We find that results are robust when using different windows sizes and counterfactuals. |
| Keywords: | Central bank intervention, foreign exchange intervention mechanisms, event study. Classification JEL: E52, E58, F31. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:784&r=cse |
| By: | Soren T. Anderson; Ryan Kellogg; Ashley Langer; James M. Sallee |
| Abstract: | We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. This correlation could represent transmission of brand preferences across generations, or it could result from correlation in family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the former interpretation and to a mechanism that relies at least in part on state dependence. We then discuss implications of intergenerational brand preference transmission for automakers’ product-line strategies and for the strategic pricing of vehicles to different age groups. |
| JEL: | D43 L13 L62 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19535&r=cse |
| By: | Delfgaauw, Josse (Erasmus University Rotterdam); Dur, Robert (Erasmus University Rotterdam); Non, Arjan (ROA, Maastricht University); Verbeke, Willem (Erasmus University Rotterdam) |
| Abstract: | We conduct a field experiment among 189 stores of a retail chain to study dynamic incentive effects of relative performance pay. Employees in the randomly selected treatment stores could win a bonus by outperforming three comparable stores from the control group over the course of four weeks. Treatment stores received weekly feedback on relative performance. Control stores were kept unaware of their involvement, so that their performance generates exogenous variation in the relative performance of the treatment stores. As predicted by theory, we find that treatment stores that lag far behind do not respond to the incentives, while the responsiveness of treatment stores close to winning a bonus increases in relative performance. On average, the introduction of the relative performance pay scheme does not lead to higher performance. |
| Keywords: | dynamic incentives, relative performance pay, field experiment |
| JEL: | C93 M52 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7652&r=cse |