nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2013‒12‒15
forty-four papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. The Impact of Cooperation on R&D, Innovation and Productivity: an Analysis of Spanish Manufacturing and Services Firms By Fernández Gual, Verónica; Segarra Blasco, Agustí, 1958-
  2. Spillover Use and Innovation Success: What Role Does R&D Play? By Uwe Jirjahn
  3. Foreign Direct Investment and Domestic Entrepreneurship: Blessing or Curse? By Danakol, Seçil Hülya; Estrin, Saul; Reynolds, Paul; Weitzel, Utz
  4. Innovation and Trade Policy Coordination: the Role of Firm Heterogeneity By Antonio Navas; Davide Sala
  5. Knowledge flows percolation model – a new model for the relation between knowledge and innovation By Popescul, Daniela
  6. Who Disseminates Technology to Whom, How, and Why: Evidence from Buyer-Seller Business Networks By Tomohiro MACHIKITA; Yasushi UEKI
  7. The Role of Product Innovation Output on Export Behavior of Firms By Tavassoli, Sam
  8. Growth through heterogeneous innovations By Akcigit, Ufuk; Kerr, William R.
  9. Measuring Firm-Level Productivity Convergence in the UK: The Role of Taxation and R&D Investment By Ioannis Bournakis; Sushanta Mallick; David Kernohan; Dimitris A.Tsouknidis
  10. Stimulating Innovation in ASEAN Institutional Support, R&D Activity and Intellectual Property Rights By Rajah RASIAH
  11. The Influence of Diversity on the Formation, Survival and Growth of New Firms By Backman, Mikaela; Kohlhase, Janet
  12. Cooperation in Product Development and Process R&D Between Competitors By M. Bourreau; P. Dogan
  13. Do Inventors Talk to Strangers? On Proximity and Collaborative Knowledge Creation By Crescenzi, Riccardo; Nathan, Max; Rodríguez-Pose, Andrés
  14. Determinants of Internationalisation – Do they Differ among Sectors and Business Functions? Evidence from Firm-level Data By Spyros Arvanitis; Tobias Stucki; Heinz Hollenstein
  15. Education and Human Capital Development to Strengthen R&D Capacity in the ASEAN By Tereso S. TULLAO, Jr.; Christopher James CABUAY
  16. The Impact of Formal Institutions on Knowledge Economy By Antonio R. Andrés; Simplice A. Asongu; Voxi Amavilah
  17. The allocation of entrepreneurial effort and its implications on economic growth By Muñoz, Félix; Encinar, María Isabel; Otamendi, Francisco Javier
  18. Internationalization of a Chinese "born glocal" brand: the case of Goodbaby By Francesca Checchinato; Lala Hu; Alessandra Perri; Tiziano Vescovi
  19. Modeling Knowledge Networks in Economic Geography: A Discussion of Four Empirical Strategies By Tom Broekel; Pierre-Alexandre Balland; Martijn Burger; Frank van Oort
  21. Gouvernance et innovation au sein des technopôles : le cas de Savoie Technolac By Rachel Bocquet; Sébastien Brion; Caroline Mothe
  22. Who drives smart growth? The contribution of small and young firms to inventions in sustainable technologies By Birgit Aschhoff; Georg Licht; Paula Schliessler
  23. Emerging market multinationals in the European Union – A location choice analysis By Hassan, Sohaib Shahzad; Jindra, Björn; Cantner, Uwe; Günther, Jutta
  24. Effects of Productivity and Import on Firm-Level Export By Jienwatcharamongkhol, Viroj
  26. The Economic Performance of Clustered and Non Clustered Firms along the different Phases of the Cluster Life Cycle: The Portuguese Cork Industry Case By Amélia Branco; João Carlos Lopes
  27. Foreign Direct Investment, Human Capital and Economic Growth in Malaysia By Gulam Hassan, Mohamed Aslam; Abou Sakar, Sameer
  28. Innovation and Regulation in the Telecommunications Industry By M. Bourreau; P. Dogan
  29. A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy By Neil Foster-McGregor; Mario Holzner; Michael Landesmann; Johannes Pöschl; Robert Stehrer; Roman Stöllinger
  30. The hidden costs of going global: insights from firms' entry into foreign markets By Alessandra Perri; Francesca Checchinato; Cinzia Colapinto
  31. Exportações e Processos Inovativos: Um Estudo Para a América Latina e a Europa do Leste By Marcelo José Braga Nonnenberg; Ana Paula Avellar
  32. Intangible Knowledge Capital and Innovation in China By Fleisher, Belton M.; McGuire, William H.; Smith, Adam Nicholas; Zhou, Mi
  33. Governance mode vs. governance fit? Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000 (Online first). By Castaner, X.; Dussauge, P.; Garrette, B.; Mulotte, L.
  34. Values, beliefs and economic behaviors: a regional approach By João Carlos Graça,; João Carlos Lopes; Cláudia Niza
  35. Modularity and Product Innovation in Digital Markets By M. Bourreau; P. Dogan; M. Manant
  36. Manufacturing Renaissance: Return of manufacturing to western countries By Tavassoli, Sam
  37. RETURNS TO LOCATION IN RETAIL: Investigating the relevance of market size and regional hierarchy By Öner, Özge
  38. Managerial style and bank loan contracting By Francis, Bill B.; Hasan, Iftekhar; Zhu, Yun
  39. Information Technologies and Strategies in the Service Industry By Zagorsek, Branislav
  40. Can capital grants help microenterprises reach the productivity level of SMEs? Evidence from an experiment in Sri Lanka By Laurin Janes
  41. Nonprofit Roles in For-profit Firms: The Institutionalization of Corporate Philanthropy in France By Arthur Gautier; Anne-Claire Pache; Imran Chowdhury
  42. Multidimensional micro-level competitiveness measurement: a SEM-based approach By Rosa Bernardini Papalia; Annalisa Donno
  43. Foreign Owners and the Quality of Industrial Relations in Germany By Verena Dill; Uwe Jirjahn
  44. Incentive Pay and Performance: Insider Econometrics in a Multi-Unit Firm By Bogaard, Hein; Svejnar, Jan

  1. By: Fernández Gual, Verónica; Segarra Blasco, Agustí, 1958-
    Abstract: This paper investigates relationships between cooperation, R&D, innovation and productivity in Spanish firms. It uses a large sample of firm-level micro-data and applies an extended structural model that aims to explain the effects of cooperation on R&D investment, of R&D investment on output innovation, and of innovation on firms’ productivity levels. It also analyses the determinants of R&D cooperation. Firms’ technology level is taken into account in order to analyse the differences between high-tech and low-tech firms, both in the industrial and service sectors. The database used was the Technological Innovation Panel (PITEC) for the period 2004-2010. Empirical results show that firms which cooperate in innovative activities are more likely to invest in R&D in subsequent years. As expected, R&D investment has a positive impact on the probability of generating an innovation, in terms of both product and process, for manufacturing firms. Finally, innovation output has a positive impact on firms’ productivity, being greater in process innovations. Keywords: innovation sources; productivity; R&D Cooperation
    Keywords: Tecnologia -- Innovacions, Indústria -- Productivitat, Investigació industrial, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus,
    Date: 2013
  2. By: Uwe Jirjahn
    Abstract: Based on data from Germany, this study finds a positive link between using knowledge spillovers from rivals and innovation success in establishments without R&D but not in establishments with R&D. This supports the hypothesis that rivals’ knowledge is more valuable to establishments that are below the frontier of technology and product development.
    Keywords: Corporate Spillover asymmetry, R&D, Learning, Product innovation
    JEL: L60 O31 O32
    Date: 2012
  3. By: Danakol, Seçil Hülya (Utrecht University); Estrin, Saul (London School of Economics); Reynolds, Paul (Aston University); Weitzel, Utz (Radboud University Nijmegen)
    Abstract: This paper explores the effects of foreign direct investment, measured by mergers and acquisitions, on domestic entrepreneurial entry. We use a micro‐panel of more than two thousand individuals disaggregated by industry in seventy countries including both developed and developing economies, 2000‐2009. The theory yields ambiguous predictions about the relationship between FDI and entrepreneurship; positive spillovers via dissemination of technology or negative because of crowding out. Our empirical analysis is conducted at three levels of aggregation. We find the relationship between FDI and domestic entrepreneurship in aggregate and intra‐industry to be negative. Policies need to consider how to counteract this effect.
    Keywords: foreign direct investment, entrepreneurship, new firm entry, spillovers
    JEL: F23 M13 L26
    Date: 2013–12
  4. By: Antonio Navas (Department of Economics, The University of Sheffield); Davide Sala (Department of Business and Economics, University of Southern Denmark)
    Abstract: Recent studies have concluded that R&D grants can induce firms to export and that exporting and innovating can be complementary activities at the firm level. Yet the trade literature has paid little attention to the scope of innovation policy as a stimulus to both trade and innovation. To investigate this question we rely on a general work-horse model of trade and firm heterogeneity with firm investments in R&D activities. The multiplicity of equilibria together with the interplay of innovation and trade policies uncover novel results. In particular, we show that the effects of either policy depend on the degree of protectionism in a country. Therefore, countries can respond differently to the same policy, and similarly to different policies. In such a context, different governments may face different degrees of freedom regarding how to achieve a given target. This finding leads us to discuss the issue of policy coordination.
    Keywords: innovation; innovation policy; heterogenous firms; technology adoption; trade policy
    JEL: F12 F13 F15 O32
    Date: 2013
  5. By: Popescul, Daniela
    Abstract: The present paper proposes a new way of thinking regarding the relation between innovation and knowledge using a Physics-borrowed model, trying to prove whether knowledge resources can „flow” (be percolated) in a network or a grid, in order to be transformed in technological innovation. In the Knowledge Flow Percolation Model centre, human beings are seen as thinking electrons, both consuming and generating knowledge flow. Through the inter-dependent actions of individuals, knowledge circulates inside different types of organisations, allowing functioning and innovating in order to obtain competitive advantages. The model can be extended also at a national level, and some assumptions of self similarity appear in this process of extension. The model must be seen as a proposal for the research community and as a basis for future observations regarding the importance of knowledge flows in innovation.
    Keywords: technological innovation, knowledge, knowledge flows, knowledge flows percolation model
    JEL: D83 M12 O31 O32
    Date: 2012–06–09
  6. By: Tomohiro MACHIKITA (Institute of Developing Economies and Stanford University); Yasushi UEKI (Institute of Developing Economies)
    Abstract: This paper investigates the relationship between firm-level upgrading and buyer-seller business networks in order to better understand how and to whom technology transfer occurs. Using firm’s self-reported buyer and supplier network data from business–to–business (B2B) markets in Southeast Asia, this paper finds the following results: (1) Firms are more likely to achieve product and process innovation if they invest in inhouse R&D and transfer technology from their production partners; (2) product and process innovation varies considerably across different types of buyers and suppliers; (3) negative impacts of local suppliers suggest the importance of input quality for product and process innovation; and (4) large differences in product and process innovations among firms with similar buyers and suppliers can be explained by differences in embodied technology transfer even within narrowly defined production partners’ ownership. Data from technology transfer in buyer-seller business networks provide the basis for detecting the key drivers of industrial upgrading in the context of B2B markets in emerging economies.
    Keywords: embodied technology transfer; linked manufacturer–supplier analysis.
    JEL: O12 O14 O32 L14 F14
    Date: 2013–11
  7. By: Tavassoli, Sam (CSIR, Blekinge Inst of Technology)
    Abstract: This paper analyzes the role of innovation on the export behavior of firms. Using two waves of Swedish CIS data merged with register data on firm-specific characteristics. I estimate the influence of the innovation output of a firm on its export propensity and intensity, respectively. I find that the innovation output of firms (measured as sales due to innovative products) has a positive and significant effect on export behavior of firms. The results also show that it is indeed innovation output, rather than innovation input (innovative efforts), that matters for export behavior of firms. Specifically, innovation output leads to increase in later export propensity and intensity of firms. Moreover, there is also strong association of productivity and ownership structure of firms with export propensity and intensity of firms. The results are robust when unobserved time-invariant heterogeneity of firm and also potential endogeneity of innovation-export are taken into accounted.
    Keywords: Innovation output; innovation input; export propensity; export intensity
    JEL: F14 O31 O33
    Date: 2013–12–03
  8. By: Akcigit, Ufuk (University of Pennsylvania and NBER); Kerr, William R. (Harvard University and NBER)
    Abstract: We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects.
    Keywords: endogenous growth; innovation; exploration; exploitation; research and development; patents; citations; scientists; entrepreneurs
    JEL: L16 O31 O33 O41
    Date: 2013–11–22
  9. By: Ioannis Bournakis; Sushanta Mallick; David Kernohan; Dimitris A.Tsouknidis
    Abstract: This paper examines the direct effects of corporate tax on firm productivity along with the interaction effects of tax policy and R&D activity on productivity at firm level for over 13,062 firms during 2004-2011. Our main findings are first, that there is evidence for productivity convergence and we find that there is a positive robust relationship between R&D and firm productivity, whereas tax policy has a negative distortionary effect on TFP. Second, firms with greater export orientation do not seem to achieve much improvement in productivity, whereas the favourable productivity effect in the case of R&D-based firms suggests that if there are tax incentives in place for R&D type activity, it can promote innovation and drive productivity convergence (lagging firms closing the technology gap with those at the frontier), particularly so when there is a continued decline in overall economic activity. The results also show a significant non-linear effect of tax rate on firm-level productivity, identifying an inverse U-shaped relationship
    Keywords: Total Factor Productivity, Catch-Up, Effective Tax Rate, Firm-level Productivity Convergence, UK.
    JEL: O3 O4
    Date: 2013–11
  10. By: Rajah RASIAH (Faculty of Economics and Administration Building, University of Malaya)
    Abstract: Using a stylized framework of technological capability development through pursuing Keynesian-Kaleckian style demand management strategies, this paper discusses initiatives that poorer member governments should take to stimulate technological upgrading of firms at the bottom with a focus on innovation, as well as, discussed the governance framework of intellectual property rights (IPRs) in ASEAN. Typologies of taxonomies and trajectories were used to evolve a policy framework to coordinate the relationship between macroinstitutions, meso-organizations and micro-agents (firms) for ASEAN members upgrade to transform from developing nations to join Singapore as developed nations. Recognizing the varying capacities of ASEAN members, the paper recommends that a common platform of IPRs be developed with the more developed members assisting the LDC members to quicken the development of a technologically more egalitarian region.
    Keywords: Innovation, intellectual Property Rights, ASEAN, Institutions, R&D
    JEL: O31 O32 O38 O43
    Date: 2013–11
  11. By: Backman, Mikaela (Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, Centre for Entrepreneurship and Spatial Economics (CEnSE), & Royal Institute of Technology (KTH)); Kohlhase, Janet (University of Houston)
    Abstract: Our paper investigates how diversity of the labor force influences the rate of new firm formation and the performance of new firms in urban areas. A diversified labor force within the firm and in the external environment influences the formation, survival and growth of firms. We explore these issues with both aggregate data at the municipal level and individual data at the firm level for the years 1993-2010. We measure diversity using entropy measures that account for a wider range of differences than is typically used. Our empirical analysis finds a positive influence of diversity of the labor force on the rate of new firm formation at the municipal level. At the level of an individual firm, we find that the diversity of the firm’s labor force is positively associated with the survival and growth of new firms. Our results add to the literature on the workings of agglomeration economies through variations in human capital, information spillovers and innovation.
    Keywords: Diversity; labor force; education; occupation; industry; new firms; formation; survival; growth
    JEL: C31 C33 L25 L26 R10
    Date: 2013–12–09
  12. By: M. Bourreau; P. Dogan
  13. By: Crescenzi, Riccardo (London School of Economics); Nathan, Max (London School of Economics); Rodríguez-Pose, Andrés (London School of Economics)
    Abstract: This paper investigates how physical, organisational, institutional, cognitive, social, and ethnic proximities between inventors shape their collaboration decisions. Using a new panel of UK inventors and a novel identification strategy, this paper systematically explores the net effects of all these 'proximities' on co-patenting. The regression analysis allows us to identify the full effects of each proximity, both on choice of collaborator and on the underlying decision to collaborate. The results show that physical proximity is an important influence on collaboration, but is mediated by organisational and ethnic factors. Over time, physical proximity increases in salience. For multiple inventors, geographic proximity is, however, much less important than organisational, social, and ethnic links. For inventors as a whole, proximities are fundamentally complementary, while for multiple inventors they are substitutes.
    Keywords: innovation, patents, proximities, cities, regions, knowledge spillovers, collaboration, ethnicity
    JEL: O31 O33 R11 R23
    Date: 2013–12
  14. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Heinz Hollenstein (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: The relevance of services FDI strongly increased over the last two decades. As goods and services differ with respect to important characteristics, one may expect that the determinants of internationalisation are not identical in manufacturing and the service sector. However, there is practically no firm-level research contrasting the two sectors in this respect. In order to fill this gap, we seek to identify for manufacturing and services, firstly, the determinants of a firm’s propensity to go international (exports and/or foreign direct investment) and, secondly, the factors determining the complexity of a firm’s direct foreign activities in terms of business functions. We find that an OLI-based model can be used to explain not only the propensity to go intenational but also differences between two specific forms of direct foreign investment for both the manufacturing and the service sector.
    Keywords: Manufacturing vs. services internationalisation, offshoring vs. exports, internationalisation of business functions, multinational companies, international business strategy
    JEL: F23
    Date: 2013–12
  15. By: Tereso S. TULLAO, Jr. (Angelo King Institute for Ecohomic Business Studies De La Salle University); Christopher James CABUAY (Angelo King Institute for Ecohomic Business Studies De La Salle University)
    Abstract: The role of education is crucial in process of economic development. Initially, investments in training and education produce the necessary technical workers. At higher levels of economic development, the formation of highly skilled technicians, engineers, and professionals are made through advanced levels of education. The accumulation of sophisticated types of human capital is a major factor in creating the research and innovation infrastructure of a mature economy. Looking at the research and development (R&D) capacity of the ASEAN region, we see that most countries still have ways to go in order to fully develop their innovative capacity. Engineering, which is a significant source of innovations in a country, needs to have its curriculum revamped to adapt to global competition as well as to cater to the need of countries to innovate. This study recommends the improvement of technical competence of engineering education, the exploration of possible cooperation among engineering schools and professionals, learning from advanced economies on the development of advanced skills, the development of the soft skills of engineering students, and adopting an innovation perspective in the development of a nation.
    Keywords: Education, human capital, research and development, innovation, engineering education.
    JEL: I23 I25 J24 O31 O32
    Date: 2013–12
  16. By: Antonio R. Andrés (Eastern Mediterranean University, Department of Economics); Simplice A. Asongu (African Governance and Development Institute); Voxi Amavilah (Glendale College)
    Abstract: Using Kauffman, Kraay, and Mastruzzi governance indicators, this article analyzes the impact of formal institutions on the knowledge economy- by assessing how the enforcement of Intellectual Property Rights (IPRs) through good governance mechanisms affects the knowledge economy. The article also employs the World Bank’s four components of the knowledge economy index characteristic of its knowledge for development (K4D) framework. We estimate panel data models for 22 Middle East & North African and Sub-Sahara African countries over the period 1996-2010. The results show that for this group of countries the enforcement of IPR laws (treaties), although necessary, is not a sufficient condition for a knowledge economy. The results also suggest that other factors are more likely to determine the knowledge economies of these nations. Overall these findings have important implications for both policy and further research.
    Keywords: Formal institutions; Knowledge economy; Panel data; Principal component analysis (PCA)
    JEL: O10 O34 O38 P00 P48
    Date: 2013–07
  17. By: Muñoz, Félix (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Encinar, María Isabel (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Otamendi, Francisco Javier (Departmento de Economía Aplicada I, Universidad Rey Juan Carlos, Madrid.)
    Abstract: The problem to allocate effort to innovation activities is defined and modelled for any single entrepreneur according to its propensity to innovate, which combines pure innovation and rent-seeking strategies. The allocation problem is solved both analytically and via simulation. The individual decisions measured in units of innovation are then aggregated to calculate the innovation quantity for a given population based on the distribution of heterogeneous entrepreneurs. The entrepreneurship rate and the implications for economic growth are also quantified. Consequently, policy makers should focus on reducing the entry barriers and the costs of production in order to stimulate the entrepreneurial activity and maximize the innovation quantity. They should also foster the attitude and propensity towards innovation.
    Keywords: entrepreneurial heterogeneity; propensity to innovate; endogenous growth
    JEL: M13 O12 O40
    Date: 2013–11
  18. By: Francesca Checchinato (Dept. of Management, Università Ca' Foscari Venice); Lala Hu (Dept. of Management, Università Ca' Foscari Venice); Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Tiziano Vescovi (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: Chinese latecomer firms adopt internationalization strategies in order to gain the necessary resources and competences to compete in the local and global markets. In this process, different sectors are involved: not only in the electronic one (e.g. Haier and Huawei represent two successful cases), but also in other industries Chinese firms have achieved high competitiveness in the global scenario. In this paper, we analyze the case of Goodbaby, a Chinese baby strollersÕ manufacturer. This company has implemented its internationalization activities since the early 1990s, and it is now one of the main stroller manufacturers in the world and the leading brand in China. In order to analyze the brand awareness and purchase behavior in the local market, the empirical design used in this study encompasses the combination of the competitive analysis of strollersÕ brands in the Chinese market and a questionnaire to Chinese consumers. Our research shows that GoodbabyÕs history reflects the internationalization process of multinationals from emerging markets (EM-MNEs), while confirming GoodbabyÕs high competitiveness in a sector that was traditionally dominated by foreign brands. Some managerial implications will be discussed.
    Keywords: China, global, glocal, internationalization, Goodbaby
    JEL: M16 M30
    Date: 2013–11
  19. By: Tom Broekel; Pierre-Alexandre Balland; Martijn Burger; Frank van Oort
    Abstract: The importance of network structures for the transmission of knowledge and the diffusion of technological change has been emphasized in economic geography. Since network structures drive the innovative and economic performance of actors in regional contexts, it is crucial to explain how networks form and evolve over time and how they facilitate inter-organizational learning and knowledge transfer. The analysis of relational dependent variables, however, requires specific statistical procedures. In this paper, we discuss four different models that have been used in economic geography to explain the spatial context of network structures and their dynamics. First, we review gravity models and their recent extensions and modifications to deal with the specific characteristics of networked relations. Second, we discuss the quadratic assignment procedure that has been developed in mathematical sociology for diminishing the bias induced by network dependencies. Third, we present exponential random graph models that not only allow dependence between observations, but also model such network dependencies explicitly. Finally, we deal with dynamic networks, by introducing stochastic actor oriented models. Strengths and weaknesses of the different approaches are discussed together with domains of applicability for the analysis of (knowledge) network structures and their dynamics.
    Keywords: Economic geography, knowledge networks, network models, quadratic assignment procedure, gravity model, exponential random graph model, stochastic actor-oriented model
    JEL: R11 O32 D85
    Date: 2013–12
  20. By: Samuli Leppälä
    Abstract: Following the development of knowledge economies, there has been a rapid expansion of economic analysis of knowledge, both in the context of technological knowledge in particular and the decision theory in general. This paper surveys this literature by identifying the main themes and contributions and outlines the future prospects of the discipline. The wide scope of knowledge related questions in terms of applicability and alternative approaches has led to the fragmentation of research. Nevertheless, one can identify a continuing tradition which analyses various aspects of the generation, dissemination and use of knowledge in the economy.
    Keywords: knowledge, information, belief, uncertainty, innovation, intellectual property rights, scientific research, technological change
    JEL: D80 O30 I20 B00
    Date: 2012
  21. By: Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Sébastien Brion (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie)
    Abstract: La question de savoir si la proximité organisationnelle peut être encouragée au sein des clusters, en se concentrant sur les KIBS (Knowledge Intensive Business Services), a été peu ntraitée dans la littérature. L'objectif de cet article est d'étudier le rôle relationnel que peut jouer la structure de gouvernance d'un cluster pour améliorer les performances d'innovation de ses membres KIBS à travers différentes pratiques. La recherche s'appuie sur un échantillon représentatif de 53 KIBS au sein de Savoie Technolac. Les résultats obtenus suggèrent que, outre les déterminants traditionnels de l'innovation des entreprises, la structure de gouvernance a un impact direct sur l'innovation des KIBS du technopôle et un rôle indirect de tiers pour les KIBS engagés dans des partenariats de R&D. Cette recherche a des implications importantes pour l'évaluation des actions de la structure de gouvernance dans les technopôles.
    Date: 2013
  22. By: Birgit Aschhoff; Georg Licht; Paula Schliessler
    Abstract: Europe’s innovation potential is currently dominated by well-established large companies. In most member countries the bulk of R&D expenditures is spend by large companies. Following OECD data, SME’s share in total R&D spending amount to 8% in Germany or Japan, around 15% in US, France, Korea or Italy, about 20% in Sweden, Finland or Switzerland, about 30% in Netherlands, Austria or Poland, and about 50% in Poland, Ireland, Slovakia or Greece. First of all, these figures point to a considerable heterogeneity with regard to the importance of SMEs in national R&D activities. However, young companies are said to be the driving force behind radical innovation which will be a source of employment and growth in future. In addition, the weakness of Europe is not only the small number of hightech startups but more specifically the number of hightech startups which accomplish continuing, rapid growth. However, there might be significant technology specific heterogeneity with regard to the contribution of SMEs and young firms to innovation. The central question of the paper is whether SMEs and young firms might be agents with a special contribution to new growth path in Europe. We took new renewable energy technologies as an example at test whether the contribution of SMEs and young firms is larger in this technology area compared to invention as measured by patenting. In order to focus on the most valuable patents we use patent applications at the European Patent Office which were also applied for patent production at the USPTO and the Japanese Patent Office (“triadic patent applications”). The analysis proceed in two steps: The paper looks first at trends in international patenting and compares triadic patent application in the field of energy with all triadic patent application by country of inventors. The idea is to highlight the role of EU and its member states in invention activity in a technology-field which is of special relevance for a new, sustainable growth path. In the second step we look at the contribution for SMEs and young firms to such a new growth path by a detail analyses of triadic patent application by German companies as the SMEs share to R&D is the smallest compared to all other EU member states as well as compared to OECD member states (except Japan). The focus on Germany is motivated for two reasons - to ease the analysis and to focus on the most extreme case of the firm-size R&D distribution which is observed in EU and OECD member states. The study employs the WIPO “Green Inventory” classification to identify energy-related patents via the international patent classification used by all patent offices to assign patents by technology and potential fields of application. This classification comprise as main technology classes alternative energy production, transportation, energy storage, waste management, agriculture/forestry, regulatory and design aspects, and nuclear power generation. The number of green inventory patents increased from 1991 to 2007 by a factor of 2.5 to 12.500 patent applications. The majority of this increase is observable in renewable energy product, storage of energy, design and management of energy systems, and waste management. Patents related to nuclear power account for 4% of green inventory patents and this share declined even more to 1% in 2007. Surprisingly, the increase of green inventory patent applications at the EPO more or less equals the increase in overall patent applications at the EPO. Hence, the share of green inventory patents in total patent application at EPO was constant and fluctuating always between 8-10% with not visible trend. Similarly, albeit the increase in the number of triadic patents is less impressive (only by a factor of 1.4) the structural features are the same. Overall, the importance of green patent activities does not greatly vary between countries or regions. In 2007, the share of green patent applications in all patent applications at the EPO lies between 7% and 12%. Interestingly, the new member states and southern Europe are at the upper end of the range (12% and 10%, respectively) - besides Japan (11%) and the US (10%). Green patents are slightly less important for Northern Europe and China (both 7%). Focusing on more valuable patent application (“triadic patent application”), green technologies become more important in Germany, Korea and China and lose importance in Southern Europe. The second step linked sustainable growth to the “entrepreneurial” economy by examining to which degree small and young firms are driving sustainable patenting. We find SMEs to be responsible for about 15% of all patent applications. This is the same for the WIPO Green Inventory classified “green” patents. Around half of patent applications of SMEs are made by young firms. About one half of all patent applications by SMEs are filed by micro firms. When narrowing down the analysis to triadic patents, we find the contribution of SMEs to decrease to about 9% of all patent applications which is probably caused by the larger costs of applying and maintaining triadic patents than EPO patents. The contribution to green patenting is even lower for triadic patents with only 6% of all green patents coming from SMEs. In the third step of the analysis, based on the link of German firm data to patent applications at the European Patent Office, we analyzed at the firm level whether small and young firms are more or less likely to file sustainable patents than other firms. The results show that large firms are significantly more likely to file both patents in general and green patents. We do find that, for micro, small and medium size firms, the negative effect on patenting compared to the reference category of a large firm is less strong for the younger firms. This effect exists both for the generation of patents in general and the generation of green patents. Therefore there does not seem to be a particular advantage for small or young firms in producing sustainable, green patents. Even more, SMEs and young firms seem to face larger obstacles to start inventing in green energy technologies than in other technology fields. In any case SMEs and young firms will probably not an important driver of new technologies like in some other fields of technology. Of course we have to admit that our same only covers international patent applications for the priority year 2007 or earlier. Hence, things might have changed in the meantime due to e.g. extended government support for innovation in green energy fields. However, this question can only be examined with future editions of the PATSTAT data which fully covers more recent years. In addition, we cannot rule out the SMEs and/or young firms are especially important for patents which are radical driver of technological change. To address this question several measurement issues need to be solved and/or existing measurement approaches need verification. However, this is beyond the limits of our study. What might be the contribution to the central questions of the wwwforEurope project? First of all, young and small firms might not able to drive the technology development towards a more sophisticated use of energy resources and renewable energies. Like in most other fields of technology the direction of technical change is determined by established large firms. Hence, under the current framework of innovation and industrial policies, the development of the “more entrepreneurial economy” will probably not form forerunners on the ways towards a new growth path. Secondly, private sector’s production of invention activities became not stronger directed towards technologies which aim at production, storage, distribution, and management of new energy technologies compared to other fields of technology. Given the societal need for new energy technologies the paper speaks in favor of government regulation, invention and incentives to stimulate research, development, and implementation new energy technologies. However, we do not find arguments that such stimuli should favor SMEs or young firms.
    Keywords: Green patents, sustainable patenting, SMEs, young firms
    JEL: O31 M13 C81
    Date: 2013–11
  23. By: Hassan, Sohaib Shahzad; Jindra, Björn; Cantner, Uwe; Günther, Jutta
    Abstract: The European Union (EU) is one of the largest recipients of outward foreign direct investment (OFDI) from emerging economies. We apply a discrete choice model to analyze the location choice of emerging market firms in the EU27. In particular, we test to what extent these firms’ location choices are related to agglomeration economies and knowledge externalities because these have been suggested as potential sources for technological catching-up for emerging market firms. Our results indicate that emerging market firms’ location choices differ from the choices of other investors. Emerging market firms place, on average, a higher value on urbanization, diversification economies and sector-specific human resources. However, we find evidence for heterogeneity in the location choices of emerging market firms depending on the home region and the sector of investment.
    Keywords: Outward FDI, location choice, emerging economies, European Union, Spill-overs, Knowledge-seeking FDI
    JEL: F23
    Date: 2013–08–01
  24. By: Jienwatcharamongkhol, Viroj (The Ratio Institute & Lund University)
    Abstract: There are several studies that find a positive effect of productivity on firm-level export, but little is known about the role of import. This paper fills this gap by looking at the interaction between import and productivity in influencing exports. The main hypothesis is that imports stimulate learning, which in turn means that the productivity effect on export is greater for firms with previous import experience. To test this, I examine whether productivity increases the probability to engage in exports and for existing exporters total value of exports when firms have imported from a period before. Using data of Swedish manufacturing firms from 1997-2006,I find that imports enhance productivity in promoting firm’s exports.
    Keywords: productivity; import; export; firm-level
    JEL: F12 F14 F41
    Date: 2013–12–04
  25. By: Fabiana Carneiro Silva De Holanda (UESC - Universidade Estadual de Santa Cruz - UESC); Gesil Sampaio Amarante Segundo (UESC - Universidade Estadual de Santa Cruz - UESC); Mickaël Coustaty (L3I - Laboratoire Informatique, Image et Interaction - Université de La Rochelle : EA2118); Eric De Almeida Monteiro (CRHIA - Centre de recherches en histoire internationale et Atlantique - Université de Nantes - Université de La Rochelle : EA1163)
    Abstract: This paper aims to present the reality of the Universidade Estadual de Santa Cruz (UESC) (Ilhéus / Brazil) and the Universidade de La Rochelle (ULR) (France) in relation to the activities of innovation management, intellectual property (IP) and technology transfer (TT) performed at each university. The structure of the universities and of their Technology Transfer Offices, the legislation on innovation of each country, patents deposited and cases of technology transfer are presented. The objective is to compare the activities developed in the different realities and to seek, through best practices, a possibility to adapt those practices to the Brazilian case. The data were derived from the revision of the literature especially regarding the legislation on innovation, from the databases of the universities, and from an interview with the director of the ULR value, Prof. Jean- Marc Wallet. It was noticed that the universities have almost the same age and share the same efforts to develop research, teaching and extension activities. The ULR has a structure different from UESC regarding to the management of innovation processes, IP and TT, which allows, by means of legal provisions, greater flexibility in their actions, resulting in more successful and agile processes of technology transfer.
    Keywords: Innovation Management, Technology Transfer, Technology Transfer Offices, Intellectual Property
    Date: 2013–10–01
  26. By: Amélia Branco; João Carlos Lopes
    Abstract: This paper is about the relative economic performance of clustered and non-clustered companies in the different phases of the cluster life cycle. It starts with the explanation of a puzzling localization behaviour, namely that most of the Portuguese cork manufacturing firms are concentrated in Santa Maria da Feira, a small county in the north of the country, whereas the bulk of the cork is produced in the south (Alentejo and Ribatejo). The historical roots and past and path dependence of the trajectory of this cluster are examined, as well as the identification of its life cycle phases. A comparative analysis of the economic performance of firms localized in Santa Maria da Feira and in other regions of the country is then made, using labour productivity data for a long time span of several decades. This exercise is a quantitative illustration of the crucial importance of history for the understanding of cluster dynamics, as well as many other (evolutionary) economic phenomena.
    Keywords: Cork Industry, Cluster Life Cycle, Santa Maria da Feira, Portugal.
    JEL: R12 L73 N60 O14
    Date: 2013–12
  27. By: Gulam Hassan, Mohamed Aslam; Abou Sakar, Sameer
    Abstract: The international markets have been the major influence spurring economic growth and development in the Malaysian economy even until today. There were two sources of growth, namely foreign capital and exports of commodities. The government particularly beginning in 1971 moved to develop human capital stock by investing a large amount of public capital in the education sector. However, the growth of human capital did not become a significant catalyst for economic growth. Public and private expenditures for research and development (R&D) remained low compared to neighboring countries such as South Korea and Singapore. This paper examines the effects of Foreign Direct Investment (FDI) and Human Capital (HC) development on economic growth in Malaysia. This paper will also discuss the contribution of these two factors to Malaysia’s economic growth for the period of 1980 - 2010 from three angles: Gross Domestic Products (GDP) growth, GDP per capita growth and technological change.
    Keywords: Economic growth, Human Capital, Foreign Direct Investment, Education, Malaysia.
    JEL: O4 O47 O5 O53
    Date: 2013–11–23
  28. By: M. Bourreau; P. Dogan
  29. By: Neil Foster-McGregor (The Vienna Institute for International Economic Studies, wiiw); Mario Holzner (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Johannes Pöschl (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Summary Industrial policies in the EU have markedly shifted towards ‘horizontal’ measures and framework polices. The sustained de-industrialisation of several European economies and a general perception that countries with a strong manufacturing base emerged from the crisis in a strengthened position put the issue of industrial capacities back on the agenda. This process was paralleled by a renewed interest in specific industrial policies targeted at the manufacturing sector. Against this background, this report revisits some of the main arguments in favour of a manufacturing imperative and discusses them in a European context also showing the limitations and caveats of these arguments. It proceeds by identifying the main challenges ahead of European manufacturing given the structural changes that occurred in the EU over the period 1995 to 2011. It also provides an analysis of a number of industrial policy measures that are important in a European context such as state aid by EU Member States, public R&D support for firms and the role of initial vocational training systems as a potential ‘soft’ industrial policy tool. Based on the results of the analysis, the report summarises the policy implications and offers recommendation to master the major structural challenges that lie ahead of European industry.
    Keywords: industrial policy, state aid, innovation support, competitiveness, structural change
    JEL: F13 L52
    Date: 2013–10
  30. By: Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Francesca Checchinato (Dept. of Management, Università Ca' Foscari Venice); Cinzia Colapinto (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: Recent literature on strategic decision-making highlights the role of hidden costs, i.e. costs that firms are not able to predict ex-ante (Larsen et al., 2012). This paper analyses the hidden costs of going global, i.e. unanticipated costs that emerge in the implementation of market entry strategies. Foreign market entry requires firms to assess the potential attractiveness of different locations, select an appropriate entry mode, and organize their international value chain. When taking such decisions, firms can make evaluation mistakes. We propose that cultural distance is one factor that generates Òblind spotsÓ in a firmÕs strategic analysis, thus affecting its ability to evaluate the actual challenges of entering foreign markets. Firms can offset distance-driven hidden costs by building international experience and relational capability.
    Keywords: Hidden costs, estimation, internationalization, distance
    JEL: M16
    Date: 2013–11
  31. By: Marcelo José Braga Nonnenberg; Ana Paula Avellar
    Abstract: Nas últimas décadas, um dos principais motores do crescimento do comércio exterior tem sido, sem dúvida, a inovação, entendida como a incorporação de conhecimento a produtos e processos produtivos. O objetivo deste Texto para Discussão é fornecer evidências de que a inovação contribui para o sucesso do desempenho exportador. Controla-se a presença de endogeneidade e o problema de viés de seleção por meio de variável instrumental e do modelo de seleção de Heckman. A análise baseia-se numa amostra de firmas pesquisadas pelo banco de dados Enterprise surveys, do Banco Mundial, para a América Latina e a Europa do Leste. As evidências encontradas sugerem que existe um padrão de comportamento entre as empresas da América Latina e da Europa do Leste. Tamanho, idade e participação de capital estrangeiro influenciam positivamente a decisão de exportar destas empresas. Quanto aos indicadores de inovação, os resultados apontam que a inovação afeta positivamente a probabilidade de as empresas exportarem. Os resultados do modelo de Heckman, somente para os países da América Latina, apontam que a inovação afeta a probabilidade de a empresa exportar e influencia negativamente a intensidade das exportações em relação às vendas. In the last decades one of the main engines of foreign trade growth has been innovation, the process of embedding knowledge in production processes. The purpose of this paper is to supply evidence favoring the hypothesis that innovation contributes positively to export performance when we control for endogeneity and selection bias by means of instrumental variables and Heckman selection model. The analysis is based upon a sample of firms from the Enterprise Surveys by the World Bank for Latin America and Eastern Europe. Evidence support the existence of a behavior pattern among firms in both regions. Size, age and foreign capital share have a positive influence on export decision. There is also a positive relationship between innovation and the likelihood of firms becoming exporters. Based on Heckman procedure, we also find evidence that innovative firms are more likely to become exporters but once they become exporters, the export intensity (relative to sales) affect negatively the result, only to Latin America countries.
    Date: 2013–11
  32. By: Fleisher, Belton M. (Ohio State University); McGuire, William H. (University of Washington Tacoma); Smith, Adam Nicholas (Ohio State University); Zhou, Mi (Agricultural Bank of China)
    Abstract: Intangible knowledge capital (IKC) – technology produced by workers but not embodied in them – can offset the "middle income trap" as China exhausts the benefits of international technology transfer. IKC is productivity-enhancing among Chinese enterprises – more so in domestically owned than in foreign invested enterprises. Consistent with other research, we find that China's IKC generates patents in China, but fewer than in major industrialized economies. Among domestically owned enterprises, IKC growth has flowed more toward higher-tech, export-oriented industries, while among foreign invested enterprises, it has been oriented more toward domestic sales.
    Keywords: intellectual capital, technology, economic growth, intellectual property, Asia, China
    JEL: O31 O33 O34 O43 P33
    Date: 2013–12
  33. By: Castaner, X.; Dussauge, P.; Garrette, B.; Mulotte, L. (Tilburg University)
    Date: 2013
  34. By: João Carlos Graça,; João Carlos Lopes; Cláudia Niza
    Abstract: The purpose of this paper is to identify relationships between value orientations, beliefs and economic behaviors of agents, on one side, and differences between levels of economic development, on the other. Empirical analysis is based on a sample of Portuguese municipalities and correspondent parishes, organized in groups set by an urban-versus-rural typology and according to levels of development as measured by GDP per capita. Different value orientations, beliefs and behaviors were identified. Four clusters were thereby considered, generically correspondent to “stabilization”, “economic nationalism”, “entrepreneurship” and “consumerism”. These clusters are related to the spatial dimensions considered.
    Keywords: Values, beliefs, economic behaviors, Portuguese regions
    Date: 2013–12
  35. By: M. Bourreau; P. Dogan; M. Manant
  36. By: Tavassoli, Sam (CSIR, Blekinge Inst of Technology)
    Abstract: This paper argues that the location of manufacturing is gradually shifting to the west again, i.e. Manufacturing Renaissance. Such claim is based on the recent observed trend and the discussion is contextualized within the established theory that has been able to explain the location of manufacturing, i.e. Product Life Cycle Model (PLC). Then the paper identifies and discusses the four main drivers of this new phenomenon. Finally, it is noted that the rerun of manufacturing should be kept in portion and not all industries are coming back to the west in the same pace.
    Keywords: re-shoring; locational shift; manufacturing; Product Life Cycle model
    JEL: E02 E22 F21 O14
    Date: 2013–12–03
  37. By: Öner, Özge (Jönköping International Business School, & Centre for Entrepreneurship and Spatial Economics)
    Abstract: This paper investigates returns to location in the retail sector and further analyzes the systematic variations across central and peripheral retail markets, as well as across different types of retailing activities. The empirical design utilizes individual level data, where the earnings of individuals working in the retail sector are used as a proxy for retail performance, which allows for a comparison across different types of retailing activities, although the sector as a whole is highly heterogeneous. In order to capture the urban-periphery interaction in retail markets, an accessible market potential measure is used, which allows for capturing the impact from potential demand in close proximity, in the region and from outside of the region separately. In the analysis, the impacts of spatial, store, and individual characteristics are analyzed for four types of retailing activities: food retailing, clothing, household retailing and specialized stores. The results are in line with previous theoretical arguments that rely on traditional location theories. There is a distinct variation between urban and peripheral retail markets, as well as between different types of retailing activities. Market size in close proximity is found to play an important role for stores selling goods for frequent purchase, whereas the relevant market extends beyond municipal borders for retailers selling goods for less frequent purchase. The competition effect is evident for non-central markets, driven from close proximity to large central markets.
    Keywords: Urban hierarchy; market accessibility; retail sector; location premium
    JEL: D31 E24 L81 P25
    Date: 2013–12–09
  38. By: Francis, Bill B. (Lally School of Management, Rensselaer Polytechnic Institute); Hasan, Iftekhar (Fordham University and Bank of Finland); Zhu, Yun (Lally School of Management, Rensselaer Polytechnic Institute)
    Abstract: This paper provides direct evidence that managerial style is a key determinant of the firm’s cost of capital, in the context of private debt contracting. Applying the novel empirical method by Abowd, Karmarz, and Margolis (1999) to a large sample that tracks job movement of top managers, we find that managerial style is a critical factor that explains a large part of the variation in loan contract terms. The loan-term-related managerial styles correlate with managerial styles of firm performance and corporate decisions, implying that certain managers achieve better firm performance via lower cost of capital and other desirable non-price loan terms. We further find direct evidence that banks “follow” managers’ job changes and offer loan contracts with preferential terms to their new firms. Some of the preferred managerial styles reflect managers’ personal characteristics, such as managerial ability, authority and conservatism.
    Keywords: managerial style; cost of capital; bank loan contract; firm performance; firm decision-making
    JEL: G21 G32 G34
    Date: 2013–11–23
  39. By: Zagorsek, Branislav
    Abstract: Information technologies have a deep impact on companies and their strategy especially now in so called postindustrial era. A company in sophisticated sector as service sector is strongly influenced by information technologies and must adapt to new rules or at least to new tools to not to lose its competitive advantage. In this paper we discuss the business environment of service sector. How the information technologies are used in the companies and how they influence the business strategy. This study is based on research made on Slovak companies and on modern theoretical approaches in strategy management.
    Keywords: service sector, strategy, information technologies, business environment
    JEL: M1
    Date: 2012–12–06
  40. By: Laurin Janes
    Abstract: Using data from a randomized control trial in Sri Lanka, this paper explores whether cash and in-kind grants helped microenterprises approach the productivity level of SMEs. The paper first estimates production functions and subsequently treatment effects on TFP levels. Most significantly, more able and more risk-averse owners benefit from the larger in-kind grant. Also, the larger in-kind grants allowed for increases in productivity to the least productive firms. The paper then uses data from a representative sample of formal firms to put the TFP levels and treatment effects in the microenterprises into perspective. The results suggest that the least productive firms where able to catch up with the average microenterprise and formal SMEs, while a gap remains with large firms. This finding encourages a positive view of the potential for productivity growth in microenterprises.
    Keywords: Economic development, microenterprises, formal informal, total factor productivity, embodied technology
    JEL: L25 O12 O14 O17 O33
    Date: 2013
  41. By: Arthur Gautier (Chaire entrepreneuriat social - ESSEC Business School); Anne-Claire Pache (Public and Private Policy Department - ESSEC Business School); Imran Chowdhury (Lubin School of Business - Pace University)
    Abstract: In this research project we aim to understand the role of institutional entrepreneurship across multiple levels - field, organization, and micro levels - in the institutionalization of a new professional role within organizations. Specifically, we study the rise of the "corporate philanthropy manager," a position inspired by nonprofit values and goals which developed within large French corporations during the period 1979 to 2011. The process of creating, maintaining and legitimizing this new role - philanthropy as a new business function - is the central focus of our study, and we explore how elements of the nonprofit and for-profit worlds came together in this new role, as well as the role of various actors across multiple levels in influencing this combination.
    Keywords: Corporate Philanthropy ; Institutional Change ; Institutional Entrepreneurship ; Institutional Work ; Professions
    Date: 2013–11
  42. By: Rosa Bernardini Papalia (Università di Bologna); Annalisa Donno (Università di Bologna)
    Abstract: The concept of competitiveness, for a long time considered as strictly connected to economic and financial performances, evolved, above all in recent years, toward new, wider interpretations disclosing its multidimensional nature. The shift to a multidimensional view of the phenomenon has excited an intense debate involving theoretical reflections on the features characterizing it, as well as methodological considerations on its assessment and measurement. The present research has a twofold objective: going in depth with the study of tangible and intangible aspect characterizing multidimensional competitive phenomena by assuming a micro-level point of view, and measuring competitiveness through a model-based approach. Specifically, we propose a non-parametric approach to Structural Equation Models techniques for the computation of multidimensional composite measures. Structural Equation Models tools will be used for the development of the empirical application on the Italian case: a model based micro-level competitiveness indicator for the measurement of the phenomenon on a large sample of Italian small and medium enterprises will be constructed.
    Keywords: Micro-level competitiveness, model-based composite indicators, Structural Equation Models, intangible assets. Competitività, indicatori compositi, Modelli di Equazioni Strutturali, beni intangibili.
    Date: 2013
  43. By: Verena Dill; Uwe Jirjahn
    Abstract: German works councils provide a highly developed mechanism for codetermination designed to increase trust and cooperation within firms. This study examines whether or not the functioning of works councils depends on the type of ownership. Comparing domestic- and foreign-owned firms in Germany, we find that works councils and managers in foreign-owned firms are less likely to cooperate. The finding fits the notion that the activities of foreign multinational companies can involve tensions with the institutional framework of the host country.
    Keywords: Corporate Globalization, Foreign Ownership, Works Council, Codetermination, Cooperation
    JEL: F23 J50 J53
    Date: 2013
  44. By: Bogaard, Hein (George Washington University); Svejnar, Jan (Columbia University)
    Abstract: We exploit organizational reforms in a foreign-owned bank in Central-East Europe to study the implementation of modern HRM policies in an emerging market context. We have branch-level data and use our knowledge of the process that led to the adoption of the reforms to implement two estimators that address endogeneity bias in a complementary fashion: an IV approach and Generalized Propensity Score estimation. Our results show that some of the reforms had a positive impact on productivity, but they also underscore the risks of quantity-based incentives where quality is important.
    Keywords: insider econometrics, endogeneity of HRM policies, incentives, foreign ownership, banking, Central and Eastern Europe
    JEL: F23 G21 M52
    Date: 2013–12

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