|
on Economics of Strategic Management |
|
Issue of 2013‒11‒02
thirty-six papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Conte, Andrea (European Commission); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | This paper discusses the relationship between a company's investment in innovation and its success in introducing new product and/or process innovations. In doing so, this analysis departs from the standard approach which puts forward a homogenous R&D-based knowledge production function by introducing different types of innovation investments (R&D and technology acquisition) for different sets of companies. Using the Community Innovation Survey (CIS) dataset comprising more than 3000 Italian manufacturing companies, the econometric analysis adopts a set of techniques which allows to control for the sample selection, endogeneity and simultaneity problems which arise when dealing with CIS data. The main findings are summarised as follows: (1) beyond the acknowledged effect of R&D in increasing the probability of success of product innovation, a larger-than-expected role is played by technology acquisition in the innovation process; (2) the relative importance of R&D and technology acquisition varies significantly across different types of companies where crucial dimensions of analysis are company size and the technological domain of a sector. |
| Keywords: | R&D, product innovation, process innovation, embodied technical change, sample selection, SUR, community innovation survey |
| JEL: | O31 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7671&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:ira:wpaper:201316&r=cse |
| By: | Sammut-Bonnici, Tanya; Paroutis, Sotirios |
| Abstract: | Purpose: This paper aims to lay the foundations to develop a dominant logic and a common thematic framework of strategic innovation, and to encourage consensus over the field’s core foundation of main themes. Methods: We explore the intersection between the constituent fields of strategic management and innovation management through a concept mapping process. We categorize the main themes and search for common ground in order to develop the core thematic framework of strategic innovation. We look at the sub themes of strategic innovation in published research and develop a more detailed framework. The conceptual categories derived from the process are then placed in a logical sequence according to how they occur in practice or in the order of how the concepts develop from one other. Findings: The results yield seven main themes that form the main taxonomy of strategic innovation: types of strategic innovation, environmental analysis of strategic innovation, strategic innovation planning, enabling strategic innovation, collaborative networks, managing knowledge, and strategic outcomes. Research limitations and implications: The new thematic framework we are proposing for strategic innovation remains preliminary in nature and would need to be tried and tested by researchers and practitioners in order to gain acceptability. Academic rigor and methodological structure are not sufficient to determine whether our conceptual framework will become widely diffused in academia and industry. It would have to pass through an emergent, evolutionary process of selection, adoption and an inevitable degree of change and adaptation, just like any other innovation. Practical implications: The practical implications concern the production of instructive material and the application of strategic management initiatives in industry. The proposed themes and sub themes can serve as a logical framework to develop and update publications, which have been instrumental in their own right to shape the field. The paper also provides a checklist of potential research projects in strategic innovation, which will improve and strengthen the field. The new framework provides a comprehensive checklist of strategic management initiatives that will help industry to initiate, plan and execute effective innovation strategies. Originality: The concept mapping of the themes of strategic innovation yield a new dominant logic, which will influence the evolution of the field and its relevance to both academia and industry. |
| Keywords: | Strategic innovation, dominant logic, thematic framework, taxonomy, strategic management, innovation management |
| JEL: | O3 O30 O31 O32 O33 |
| Date: | 2013–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50577&r=cse |
| By: | Toan Thang TRAN (Central Institute for Economic Management, Vietnam); Thi Song Hanh PHAM (Sheffield Business School, Sheffield Hallam University) |
| Abstract: | In an effort to unlock the black box of mixed empirical evidence for productivity spillovers from foreign direct investment in host countries, this paper, using the case of Vietnam, examined the role of geographical proximity and inter firm interaction in determining productivity spillovers of FDI. The spatial productivity model specified based on the empirical spillovers literature and spatial econometric model. This paper confirms negative effect of horizontal spillovers. The distance and interaction are confirmed to be two determinants of the significance of spillover effects. The paper finds the positive backward and negative forward spillovers. Indirect effect (or the inter-regional spillovers) is found about twice to four times higher than the direct effect (or the intra-regional spillovers) but such kind of indirect effect is quickly attenuated for a certain distance. The paper also finds the evidence of the effect arising from the social interaction among local firms in productivity spillovers. The testing results suggest that local firm's productivity is substantially driven by the agglomeration effect and the presence of interand intra-regional FDI. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1213&r=cse |
| By: | Tomoatsu Shibata; Mitsuru Kodama |
| Abstract: | This paper presents a theoretical framework under which large companies should be able to bring about strategy transformation. Firstly, we present the concept of "strategic innovation capability," a corporate system capability to achieve corporate strategy transformation by strategic innovation. Then, we consider strategic innovation capability by comparing it to previous theories (dynamic capability, major innovation dynamic capability, breakthrough innovation capability). Secondly, we present the case example of strategy transformation at Fanuc, a company that holds the top global share in the numeric control (NC) market. In this case study research, we consider and analyze historically how the company aimed for new creativity in the NC market, developed innovative NC technology for the machine tool market, and using that technology energetically commercialized products. From the strategic innovation capability framework, the core theory of this paper, we also analyze and consider how top management made conscious efforts to form a new development organization within the company, and the processes involved in achieving strategy transformation to establish competitive superiority in this field. Finally, we discuss the implications drawn from this case analysis, and the issues for future research. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tmarga:110&r=cse |
| By: | Karlsson, Charlie (Jönköping International Business School (JIBS), Center of Excellence for Science and Innovation Studies (CESIS) KTH, Sweden); Rouchy, Philippe (Bleking Institute of Technology) |
| Abstract: | Large media clusters have emerged in a limited number of large cities, characterizing the geographical concentration of the global media industry. This paper starts by exploring the effect of the rapid advancement of Information and Communication Technologies (ICT) had on the media economy. It concludes that the role of the “weightless economy” on media cluster has enhanced its production and distribution functions. We review the specificities of media cluster that ties agglomeration to creative, diversified attributes of production and distribution. The implication is that media firms hold strong tendencies to cluster in urban regions since they make full usage of its resources, namely its export capabilities and import transformation strength. Finally, we invite researchers to consider Jacobs’ metropolitan and global reciprocating system of city growth as a valid unit for analysing media clusters. The question leads envisaging if media clusters' strong metropolitan base allows them to grow further through globalised circuits. The paper concludes that large, media clusters drive on intellectually dense network of information, which can only be cultivated through large agglomerations existing capabilities. Consequently, the research question focuses upon the economic role of knowledge in media creation and export replacement. We emphasize the strength of Jacob’s model of media cluster for understanding its mechanism of value creation and endogenous system of globalisation. |
| Keywords: | clustering; media industry; agglomeration; weightless economy; creative industry; globalization; regional development |
| JEL: | L82 R11 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0328&r=cse |
| By: | Florian Szücs |
| Abstract: | We evaluate the impact of M&A activity on the growth of R&D spending and R&D intensity of 265 acquiring firms and 133 merger targets between 1990 and 2009. We use different matching techniques to construct separate control groups for acquirers and targets and use appropriate difference-in-difference estimation methods to single out the causal effect of mergers on R&D growth and intensity. We find that target firms substantially decrease their R&D efforts after a merger, while the R&D intensity of acquirers drops due to a sharp increase in sales. |
| Keywords: | Mergers, R&D growth, R&D intensity, propensity-score matching, difference in difference estimation |
| JEL: | D22 G34 O3 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1331&r=cse |
| By: | Carlos Carreira (GEMF/ Faculty of Economics University of Coimbra, Portugal) |
| Abstract: | Portugal, when compared with the EU-28 average, has a lower degree of openness to foreign trade. This paper provides a detailed analysis of the total factor productivity differences between Portuguese exporters and non-exporters over the period 1996–2004, in manufacturing and service sectors, and their contribution to aggregate productivity growth. It was found that exporters are the dominant source of industry productivity growth. Additionally, the within-firm effect dominates in manufacturing sector, while reallocation effect explains a large proportion of growth in service sector. Exporters in Portugal, like exporters elsewhere, are effectively more productive than non-exporters. However, the capacity of a firm to internalize knowledge from international markets seems to depend on firm’s knowledge. The results have important policy implications. |
| Keywords: | Exports; Total factor productivity; Productivity growth; Reallocation; Learning. |
| JEL: | F14 D24 O47 O33 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2013-23.&r=cse |
| By: | Mitsuru Kodama; Tomoatsu Shibata |
| Abstract: | Through research into new product development processes at a precision device maker, this paper discusses the skilful management of knowledge boundaries that lie between various organizations, and between specialized human skills and functions that make up a project organization, and presents the ways in which new organizational capabilities are brought about for the development of new products, as exploratory activities that dynamically merge and integrated the various knowledge within a company. This paper describes some of the implications derived from analysis and observations of the new organizational forms of the company's ambidextrous R&D management which the company uses to engage in both 'uncertainty management (exploration)' and 'existing product management (exploitation),' through the partnering of its existing formal organizations and dynamic structuring of diverse multifunctional teams formed as projects spanning different specializations and capabilities. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tmarga:109&r=cse |
| By: | Pham Thi Song Hanh (Sheffield Business School, Stoddart Building, 1 Howard Street, Sheffield S1 1WB); Bent Petersen (Petersen) |
| Abstract: | In order to accrue economic rent a firm not only has to create value for its customers, it must also be capable of appropriating this value. Without possessing value appropriation capabilities the firm is at risk of passing on the created value to its suppliers, customers or competitors. There is ample evidence that emerging economy firms inserted in global value chains generally have difficulties in appropriating the added value they create - either due to a very competitive industry structure with low entry barriers and numerous suppliers, or because buyers are controlling critical resources, such as strategic information about, and access to, end-users. This study explores two basic initiatives emerging economy firm may take to achieve higher value appropriation. One initiative is to appropriate more value from existing activities - typically assembly manufacturing - by acquiring more market knowledge and better negotiation skills. In this way bargaining power improves vis-a-vis buyers and emerging economy firms achieve more equal gains from the global value chain. Another initiative of emerging economy firms is to embark on functional upgrading, i.e. engage in new business activities that are less exposed to fierce price competition and therefore more lucrative. We test to what extent the two basic value appropriation initiatives have a positive effect on export performance of Vietnamese wood furniture manufacturers inserted in global value chains. 302 manufacturing companies were asked about functional upgrading in terms of the extent to which they had engaged in export-related down-stream activities (i.e. export marketing and sales) and export market intelligence. The companies also reported their negotiation skills (self-assessment) and export performance. The results of a path analysis (AMOS, SPSS) suggest that both of the two value appropriation initiatives have positive pay-offs in as much as they improve export performance significantly, though with bargaining power improving measures as the more rewarding initiative. Furthermore, the two initiatives are to some extent mutual supportive in achieving higher value appropriation. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1113&r=cse |
| By: | Joshua S. Gans; Fiona E. Murray; Scott Stern |
| Abstract: | This paper provides a theoretical investigation of the tension over knowledge disclosure between firms and their scientific employees. While empirical research suggests that scientists exhibit a ‘taste for science,’ such open disclosures can limit a firm’s competitive advantage. To explore how this tension is resolved we focus on the strategic interaction between researchers and firms bargaining over whether (and how) knowledge will be disclosed. We evaluate four disclosure strategies: secrecy, patenting, open science (scientific publication) and patent-paper pairs providing insights into the determinants of the disclosure strategy of a firm. We find that patents and publications are complementary instruments facilitating the disclosure of knowledge and, counter-intuitively, that stronger IP protection regimes are likely to drive openness by firms. |
| JEL: | M55 O32 O34 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19560&r=cse |
| By: | Thomas Gillier (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Gérald Piat (EDF R&D - EDF) |
| Abstract: | Organizations often launch exploration projects (EP) aiming at developing innovative products (or services) by the exploration of new technologies, users, ecosystems or business models. Because a fundamental purpose of any project is to create value, the approach of value management (or value engineering) has been largely adopted in the organizations to manage the projects. However, the fact to move beyond the existing markets and the established technologies imply great difficulties and uncertainties for managing creative projects. Indeed, because exploration projects precisely aim to invent products (or services) that do not exist before, the value to create is unknown at the start of such project. So, what does value management precisely mean in situation of exploration project? This research aims to clarify the nature, the beneficiaries, and the ways to manage the value in such situations. After reviewing the historical development of the two traditional approaches of value management in project management literature, we then show we show their inadequacies for managing exploratory situations. This article is based on a longitudinal of two case-studies into a collaborative management research conducted with a major French car manufacturer. The two case-studies are an inter-firm EP corresponding to the joint exploration of an innovative multimodal urban platform by the automotive firm and two other industrial partners and an intra-firm EP aiming at generating innovative projects for the development of the electric vehicles. We propose an expansive value management model (EVM) towards three main propositions: 1) evaluating and stimulating the creation of value with a constant comparison with the dominant designs - (2) sustaining the exploration by tuning the degree of undecidability - (3) stimulating the emergence of new ecosystems by the creation of new platforms projects. Finally, this research proposes key managerial principles for EP management and a set of indicators to monitor the exploration process (i.e. identifying design rules to break, managing two kind of design paths...) and the collective dimension (i.e. the beneficiaries...) of EP. |
| Keywords: | value management; exploration; radical innovation; exploratory projects; creativity; dominant design |
| Date: | 2013–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00824354&r=cse |
| By: | Roberto Antonietti (Department of Economics and Management “Marco Fanno”, University of Padova, Italy); Alberto Marzucchi (Department of International Economics, Institutions and Development (DISEIS), Catholic University of Milan, Italy and INGENIO (CSIC-UPV), Spain) |
| Abstract: | In this paper we empirically investigate the relationship between investments in environmentally-oriented equipment and firms’ export performance. Drawing on Porter hypothesis and firm heterogeneity theory, we adopt a structural model where first we estimate the impact of green investment strategies on the level of productive efficiency (TFP), and second we assess whether induced productivity influences the extensive and intensive margin of exports. Relying on a rich firm-level dataset on Italian manufacturing, our results show that firms with higher productivity, induced among other factors by green investment involving environmental protection and reduction in the use of raw materials, have increased commitment to, and profits from, exports, especially towards countries adopting a more stringent environmental regulatory framework. Our evidence provides a ‘green investment-based’ explanation for the link between TFP-heterogeneity and trade. |
| Keywords: | Exports, Firm Heterogeneity, Green Investment Strategy, Total Factor Productivity |
| JEL: | Q55 Q56 F14 F18 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.76&r=cse |
| By: | Chang, C.L.; Hsu, H.K.; McAleer, M.J. |
| Abstract: | This paper investigates the stock returns and volatility size effects for firm performance in the Taiwan tourism industry, especially the impacts arising from the tourism policy reform that allowed mainland Chinese tourists to travel to Taiwan. Four conditional univariate GARCH models are used to estimate the volatility in the stock indexes for large and small firms in Taiwan. Daily data from 30 November 2001 to 27 February 2013 are used, which covers the period of Cross-Straits tension between China and Taiwan. The full sample period is divided into two subsamples, namely prior to and after the policy reform that encouraged Chinese tourists to Taiwan. The empirical findings confirm that there have been important changes in the volatility size effects for firm performance, regardless of firm size and estimation period. Furthermore, the risk premium reveals insignificant estimates in both time periods, while asymmetric effects are found to exist only for large firms after the policy reform. The empirical findings should be useful for financial managers and policy analysts as it provides insight into the magnitude of the volatility size effects for firm performance, how it can vary with firm size, the impacts arising from the industry policy reform, and how firm size is related to financial risk management strategy. |
| Keywords: | stock returns;firm size;asymmetry;conditional volatility models;tourism;volatility size effects;tourism policy reforms |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureir:1765041465&r=cse |
| By: | Andreas Koch; Daniel Pastuh; Jochen Späth |
| Abstract: | The present contribution examines whether and how young firms and incumbents differ with regard to selected aspects of work forms and work organization in order to assess their roles for the qualitative changes of work in industrialized countries. Conceptually, we emanate from the approach of negotiated order and we empirically ground our research upon guided interviews conducted with employers and employees in about 50 firms in four distinct industries in Germany. According to our results, new forms of work are particularly widespread in new firms. Most of the young companies in our sample practice autonomous work forms like working on one’s own responsibility and team working more frequently than incumbents, they are more prone to revert to functional flexibility (e.g. changing tasks and duties) and their working time arrangements tend to be more flexible. Altogether, firm age turns out to be an important parameter of new work forms and organization, though it is not the only one. Our results show that also the general and industry-specific framework conditions, a firm’s internal characteristics (e.g. innovation intensity, hierarchies and routines), the relevant actors (management, workforce) and particularly the coaction of these elements are important drivers shaping the overall feature of a firm. |
| Keywords: | Young firms, Negotiated Order, Quality of Work, Working Time, Autonomy, Work Organization, Germany, Guided Interviews |
| JEL: | J21 L23 L26 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iaw:iawdip:97&r=cse |
| By: | Han, Junghee (Chonnam National University); Heshmati, Almas (Sogang University) |
| Abstract: | The external circumstances for universities have been changing rapidly. In order to be competitive, survive, and flourish, universities have shown a growing enthusiasm to generate financial revenues externally. The literature refers to this phenomenon as academic capitalism, defined as the involvement of colleges and faculties in market-like behaviors, which has become a key feature of higher education finances in most countries. As a result, technology transfer, technology commercialization, and patents awarded via industry-university collaboration represent a source of financial rewards. This paper explores the determinants of financial rewards of universities sources from industry-university collaboration in South Korea. We find that among the determinants of financial performances, technology transfer per employee working at technology licensing offices, participation of engineering faculty, patent approvals, the volume of research funds, the number of employees, and firms in incubators within universities turn out to be significant contributors to externally sourced university revenues. Technology commercialization using technology transfer and incentive rules for developers are not statistically significant. In the light of these findings, it appears that an industry-university cooperation foundation program is likely to play a strong role in private university finances in Korea. |
| Keywords: | industry-university collaboration, entrepreneurial university, university revenues, South Korea |
| JEL: | A20 D45 I22 L24 P12 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7695&r=cse |
| By: | Alex Coad (SPRU, University of Sussex, UK); Christina Guenther (WHU - Otto Beisheim school of Management, Germany) |
| Keywords: | Diversification, firm growth, Penrose, Machine tools, Growth process |
| JEL: | L6 L11 L20 L25 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2013-11&r=cse |
| By: | Fairlie, Robert W. (University of California, Santa Cruz); Lofstrom, Magnus (Public Policy Institute of California) |
| Abstract: | Immigrants are widely perceived as being highly entrepreneurial and important for economic growth and innovation. This is reflected in immigration policies and many developed countries have created special visas and entry requirements in an attempt to attract immigrant entrepreneurs. Not surprisingly, a large body of research on immigrant entrepreneurship has developed over the years. In this chapter we provide an overview of the economics literature with respect to some of the most fundamental immigrant entrepreneurship issues as well as the empirical methods and data used. The main themes we address are immigrant entrepreneurs' contributions to the economy, entrepreneurship differences across groups and group differences in entrepreneurial success. |
| Keywords: | entrepreneurship, self-employment, innovation, immigrants, immigration |
| JEL: | J15 J18 J31 J38 J61 L26 M13 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7669&r=cse |
| By: | S. DE SCHOENMAKER; P. VAN CAUWENBERGE; H. VANDER BAUWHEDE |
| Abstract: | The geographic concentration of retail firms is a remarkable phenomenon. Existing literature suggests that retail firms benefit from spatial concentration in terms of heightened demand. However, the proximity to other firms also intensifies competition and results in higher costs for land and employees. To examine the net impact of these two opposing agglomeration effects, this paper analyzes the impact of localization, urbanization and diversity on firm profitability. The sample consists of Belgian single-establishment retail firms, during the period 2005-2010. The results show that urbanization has a negative and diversity a positive influence on profitability. Furthermore, weak evidence of localization effects is found, depending on the characteristics of the co-located firms. It seems that establishments of multi-establishment firms contribute positively to the profitability of single-establishment firms, while the presence of other single-establishment firms has a negative influence. |
| Keywords: | profitability, localization, urbanization, diversity |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:13/853&r=cse |
| By: | Luis Cabral; Zhu Wang; Daniel Yi Xu |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ste:nystbu:13-05&r=cse |
| By: | Yue Ma (Lingnan University); Heiwai Tang (Tufts University and MIT Sloan); Yifan Zhang (Lingnan University) |
| Abstract: | This paper analyzes the causal relations between firms' productivity, factor intensity and export participation. Using propensity score matching techniques and firm-level panel data for Chinese manufacturing firms over the 1998-2007 period, we find strong evidence of domestic firms self-selecting into export markets with higher productivity ex ante, and enhanced productivity ex post. No such pattern is observed among foreign-invested ?rms. We also find that both domestic and foreign new exporters exploit China?s low labor costs and specialize in their core competence, that is, firms become less capital-intensive after exporting, relative to the matched non-exporting counterparts in the same industry. To rationalize these results that contrast with most findings in the existing literature, we develop a variant of the multi-product model of Bernard, Redding, and Schott (2010) to consider varying capital intensity across products. Using transaction-level export data, we find evidence that Chinese exporters add new products that are more labor-intensive than existing products and drop products that are less labor- intensive, supporting the model predictions. Firms with a bigger decline in capital intensity after exporting are found to have a larger increase in measured TFP. |
| Keywords: | Exporters, Productivity, Factor Intensity, Multi-product Firms |
| JEL: | F11 L16 O53 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:0913&r=cse |
| By: | Nathalie Lazaric (GREDEG CNRS); Alain Raybaut (GREDEG CNRS) |
| Abstract: | In this paper, we explore with a model the potential tensions between the incentive system of groups of inventors and knowledge diversity in a high tech firm. We show that, when all groups are rewarded and able to interact freely with their peers, extrinsic and intrinsic motives are mutually self-reinforcing, leading to crowding in effects. As a result, the level of created knowledge increases in each group, reinforcing the diversity of the firm’s knowledge base. By contrast, competitive rewards and constrained autonomy are likely to produce motivating effects in a small number of groups, limiting knowledge creation to the firm’s core competencies. In this case, the firm can suffer from crowding out effects by the other groups, leading eventually to the extinction of creation in their fields and reduced diversity in the long run. The results are illustrated with empirical findings from a case study of a French high tech firm. |
| Keywords: | work motivation, groups of inventors, knowledge creation, knowledge diversity |
| JEL: | O31 O32 L20 D83 J30 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2013-40&r=cse |
| By: | Herman R.J. Vollebergh (CentER and Tilburg Sustainability Centre, Tilburg University, PBL Netherlands Environmental Assessment Agency, CESifo); Edwin van der Werf (Wageningen University, CESifo) |
| Abstract: | This paper aims to help policy makers identify how standards can contribute to the effective and cost-efficient development and deployment of eco-innovations (innovations that result in a reduction of environmental impact). To that end we discuss what standards are, how the process of standardization works, and how standards are related to induced innovation and diffusion in different type of markets, e.g. markets for add-on technologies versus markets for integrated resource- or emission-saving technologies. This broad perspective enables us to identify interesting economic dimensions of standards, such as their contribution to positive network externalities, and the extent to which they are substitutes or complements to environmental policy instruments. Finally we discuss how governments might contribute to eco-innovation by selecting, stimulating or creating (inter)national standards. |
| Keywords: | Standards, Technological Change, Eco-innovation, Environmental Policy Instruments |
| JEL: | Q38 Q55 Q58 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.74&r=cse |
| By: | Francesco Rullani (Dept. of Business and Management, LUISS Guido Carli Author-Name: Markus C. Becker; Strategic Organization Design Unit, University of Southern Denmark); Francesco Zirpoli (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | This paper casts light on the role of initial code release for providing coordination of joint search processes, i.e., search processes that involve several agents who search together. We develop hypotheses about the role of initial code release for providing coordination, and for whether development projects remain active. We test these hypotheses on a dataset of 5703 open source software projects registered on SourceForge during a two-year period. We find that initial code release is indeed associated with improved coordination, and a higher chance that software development projects will actually release further code subsequently. We contribute to theory on coordination in joint search, common in distributed innovation settings. |
| Keywords: | artefact, coordination, open source, distributed innovation, innovation process, search process |
| JEL: | O32 O33 M21 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:56&r=cse |
| By: | Andreas Reinstaller |
| Abstract: | The concepts social innovation and social entrepreneurship have gained considerable attention both in different fields of academic research and in the context of the development of economic and social policies. However, despite its wide-spread use there does not exist a unique or at least widely accepted agreement among scholars on its relevance and meaning. The principal aim of this paper is to work out a general framework for the analysis of social innovations borrowing key concepts from institutional economics, evolutionary (game) theory and the capabilities approach to welfare economics. Using these approaches we specify the elements that are core for the analysis of social innovation as well as secondary elements that are in the context of this concept and specific to particular manifestations of the phenomenon. While this attempt to clarify the concept of social innovation it is necessarily incomplete, we consider it to be a first necessary step to make them more operational for empirical research in social sciences but also for the design, implementation and assessment of policies to support social innovation. The final part of the paper discusses then how social innovation contributes to social and economic progress in general, and its potential contribution to industrial change more specifically. |
| Keywords: | Social innovation, instiutional change, economic development, industrial policy |
| JEL: | D02 O17 O43 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:10:d:0:i:43&r=cse |
| By: | N. Ostapenko (V. I. Vernadskyi Taurida National University) |
| Abstract: | The article presented the author's approach to the development and support of small businesses. The relationship between the levels of development of small business and indicators of the development of a given region, as well as indicators of support of small businesses were analyzed. Key conclusions about the impact of support of small business development, both regionally and at the macrolevel, were made. The main factors of quality of small business develop-ment at the regional level, as well as the consistency of measures on supporting them were analyzed and identified. The analysis of the expediency of developing programs of small business support at the macrolevel has been carried out |
| Keywords: | expediency, small business, support, GRP per capita, development, efficiency |
| Date: | 2013–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:nos:zodgwl:e133ost&r=cse |
| By: | Severine S. A. Kessy |
| Abstract: | Microfinance institutions are considered to be a strategic tool for the poverty reduction in the developing countries. However, the methodological procedures to assess their impacts on the enterprise growth are scantly developed. This paper therefore intends to develop a conceptual and methodological framework for examining the impact of the microfinance interventions on the growth of Micro and Small Enterprises (MSEs) particularly for the developing countries. Following the theoretical discussions presented in this paper a conceptual framework is developed to show interrelated variables that should be assessed in examining the impact of microfinance intervention. From the framework, different methodologies are suggested in order to obtain accurate information that can explain the actual impact of the microfinance intervention. |
| Keywords: | working paper, daadpartnership, finance-and-trade |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:mtf:wpaper:1303&r=cse |
| By: | Waters, James |
| Abstract: | We study the effect of different information sources on diffusion between and within companies. Our model of economically optimising farmers replicates results from dual process persuasion theory, and predicts that inter-firm diffusion will be primarily affected by reliable, easily accessible information while intra-firm diffusion will be influenced by technical information. The results are tested on UK farming data. Consistent with our model, information from agents, suppliers, farmers, and agricultural magazines influences inter-firm adoption, from buyers influences intra-firm adoption, and from crop consultants, academics, government, and an industry body influences both. |
| Keywords: | Innovation; Intra-firm diffusion; Information acquisition; Organic farming; Dual process persuasion theory |
| JEL: | D83 O33 Q12 Q16 |
| Date: | 2013–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50955&r=cse |
| By: | A. Kim (N. E. Zhukovsky National Aerospace University "Kharkiv Aviation Institute") |
| Abstract: | The trends and relationship between indicators of Ukraine's GDP and foreign trade are studied. The time-series econometric model of the three indicators is composed with the trend method, using a linear function, based on which the forecast of GDP and foreign trade by 2015 is made. The features of export-oriented strategy, implemented in Ukraine, with proposals to reorient and modify foreign policy towards import substitution through the use of institutional incentives are defined. The prospect of further research of a foreign trade strategy is the development and examination of alternative strategies. |
| Keywords: | foreign trade, foreign trade strategy, export-oriented strategy, import-substitution strategy, property rights, transaction costs, institutional approach |
| Date: | 2013–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:nos:zodgwl:e133kim&r=cse |
| By: | Terstiege, Stefan |
| Abstract: | Why does incentive pay often depend on subjective rather than objective performance evaluations? After all, subjective evaluations entail a credibility issue. While the most plausible explanation for this practice is lack of adequate objective measures, I argue that subjective evaluations might sometimes also be used to withhold information from the worker. I furthermore argue that withholding information is particularly important under circumstances where the credibility issue is small. The statements are derived from a two-stage principal-agent model in which the stochastic relationship between effort and performance is unknown. |
| Keywords: | Performance evaluation; principal-agent; moral hazard |
| JEL: | D83 D86 M12 M52 |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:430&r=cse |
| By: | T. Deineka (Poltava University of Economics and Trade); N. Bazavluk (Poltava University of Economics and Trade) |
| Abstract: | The specificity of interdependence and contradiction of macroeconomic competitiveness formation determined by the condition and dynamics of the reproductive structure of GDP are defined. Current trends in reproductive structure of GDP of leading countries, countries with transitional economy and developing countries are investigated. It is proved that sustainable economic growth under the global competition is only possible with an innovation-oriented economic model. It is determined that the ability of a society to produce and implement innovations is directly related to the accumulation of capital and the proportions of the GDP reproductive structures. The necessity of providing an optimal balance between capital consumption and accumulation in the reproductive structure of GDP as the prerequisites of the country’s competitiveness formation through innovation is substantiated |
| Keywords: | national competitiveness, reproductive structure of GDP, consumption, capital accumulation, economic contradictions |
| Date: | 2013–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:nos:zodgwl:e133dei&r=cse |
| By: | Melaku T. Abegaz (Department of Economics, Addis Ababa University) |
| Abstract: | In this paper a Stochastic Frontier Model is used to examine the technical efficiency and total factor productivity (TFP) growth in the Ethiopian manufacturing sector over the period 1996– 2009. TFP growth is decomposed into technical change (progress), technical efficiency change, and scale effect. With a firm level unbalanced panel data collected by SA, individual estimations are made for each industrial group categorized by two digit ISIC except a three digit ISIC for food and beverage industrial groups. The empirical results indicate existence of large inefficiencies, inefficiency that explains at least 14 percent of output variation among firms. TFP has shown better progress after 2001/02 and the growth is largely explained by technical change which is a shift in production frontier. The effect of efficiency change is very small as most industrial groups have time invariant efficiency. In addition, the scale effect is zero or very small because most industrial groups have constant returns to scale or small deviation from constant returns to scale. |
| Keywords: | Ethiopian manufacturing, stochastic frontier analysis, technical change, technical efficiency, total factor productivity |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:etd:wpaper:010&r=cse |
| By: | Poot, Jacques (University of Waikato); Roskruge, Matthew (University of Waikato) |
| Abstract: | The education services provided in any given country increasingly contribute to human capital that is employed in another country. On the one hand, graduates may seek to obtain the highest return to the knowledge they gained in their home country by working abroad. On the other hand, some students purchase educational services abroad and will subsequently work abroad, or return home to utilize the internationally acquired knowledge in the domestic labour market. In this paper we use data from the 2006-07 Adult Literacy and Life Skills survey in New Zealand to examine how years of foreign and domestic education affect earnings in the labour market. We account for differences in innate ability by aggregating subjective responses to pertinent questions in the survey and by incorporating parents' educational background. Our findings reconfirm the extensive evidence that education gained in a country of birth has generally a lower return in a foreign labour market than the native born receive in this labour market for the equivalent education. Post-settlement education in the host country has a higher return for migrants than for comparable native born. We also find that the highest returns are obtained among those who, after studying abroad, return home to work – a fact for which there has been to date scarce evidence. Thus, exposure to foreign education can lead to a triple gain: for the country where the education is obtained, for the students' home country and for the students themselves. |
| Keywords: | international education, human capital, earnings, selection effects |
| JEL: | F22 I24 J24 J31 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7696&r=cse |
| By: | Thapa, Priya Darshini Pun |
| Abstract: | This study examines the working capital management of the Food and Beverage Corporations from the U.S.A. and Canada during the 10 years study period from year 2000 to 2009. Firstly, unlike previous studies which advocate a linear relationship between the working capital management and profitability, it investigates the existence of a possible non-linear relationship. Secondly, the efficiency of working capital management was checked using performance index, utilization index and efficiency index rather than using the conventional turnover ratios. Thirdly, the distribution of working capital measure i.e. cash conversion cycle and factors affecting viz. leverage, growth, size, age, cash flow and fixed assets to total assets ratio has been studied. The results suggest the existence of concave relationship between the working capital management and profitability. The findings also revealed that the corporations were efficient during the study period. |
| Keywords: | Working capital management, profitability, food and beverage industry, optimal level of working capital |
| JEL: | M40 |
| Date: | 2013–08–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50926&r=cse |
| By: | Erik Dietzenbacher; Joaquim J.M. Guilhoto, Denise Imori |
| Abstract: | In the last couple of decades, production processes have been characterized by their fragmentation, which crosses the borders of countries more and more. This coincides with the common viewpoint that products and services are now made in global value chains and that ‘trade in value added’ might be a better approach for the measurement for international trade. The same applies at the regional level, and perhaps even to a larger extent. The present paper analyzes the role of Brazilian states in the global value chain. Since fragmentation of production processes leads to an interdependent structure which has to be accounted for, the input-output methodology seems especially suitable. Therefore, in its empirical application, the paper combines a world input-output table covering 40 countries (and the rest of the world as a 41st country) with an inter-regional input-output table covering each of the Brazilian states, for the year 2008. Our results show that the average country trades approximately twice as much in value added (as a share of country’s value added) than Brazil: the participation of Brazil in the global value chain is somewhat limited. We notice, however, important differences among states, both in terms of trade volume and of relevant industries that account for the generation of value added. The paper also further analyzes the Brazilian value chain and the trade relations of Brazilian states with China and USA, exploring the regional heterogeneities involving such relations. |
| Keywords: | International trade; input-output analysis; regional economics |
| JEL: | F10 R15 R11 |
| Date: | 2013–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2013wpecon15&r=cse |
| By: | Hensvik, Lena (IFAU - Institute for Evaluation of Labour Market and Education Policy); Nordström Skans, Oskar (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | The paper provides an overview of existing knowledge regarding the role played by social networks in the process where young workers are matched to employing firms. We discuss standard theories of why social networks may be an important element in the job-matching process and survey the empirical literature on labor market networks with an emphasis on studies pertaining to the role of social contacts during the school-to-work transition phase. In addition, we present some novel evidence on how contacts established while working during the final year in high school affect youth labor market entry. Finally, we discuss how insights from this literature can be used to improve the quality of social programs targeted towards young workers in the Nordic countries. |
| Keywords: | Referrals; school-to-work transition; youth unemployment |
| JEL: | J24 J64 M51 Z13 |
| Date: | 2013–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2013_023&r=cse |