|
on Economics of Strategic Management |
|
Issue of 2013‒12‒29
thirty-two papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Wojciech Szewczyk; Juraj Stancik; Martin Aarøe Christensen (European Commission – JRC - IPTS) |
| Abstract: | The formulation of a macroeconomic model applied to the analysis of EU Research and Development (R&D) funding strategies in Information and Communication Technology (ICT) under the PREDICT 2 project stipulates a specification of the transmission mechanism of R&D funding policy on firms' R&D expenditures. To enlighten the understanding of ICT firms' investment decisions, the effect of various firm characteristics on firms' R&D activities is analysed on a representative sample of ICT sector firms in 16 EU member countries. The analysis covers two aspects of the firms' R&D activity. Firstly, R&D engagement characterising those firms which undertake in-house R&D projects on a continuous basis, and secondly, R&D expenditure measured as the firms' in-house expenditure on R&D projects per employee. The report finds that reception of public funding is positively related to ICT firms' R&D activity. The relation between public funding and firms' R&D activity is found to depend on funding sources. The results also show that national and international diffusion of knowledge through firms' cooperation with other enterprises and through international trade plays an important role for firms R&D activity. Finally, the results suggest that substantial differences exist in firms' R&D activity across countries and sectors. |
| Keywords: | ICT industry, Research and Development, Europe 2020, Digital Agenda for Europe |
| JEL: | C31 O31 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85346&r=cse |
| By: | Andrea Pontiggia (Dept. of Management, Università Ca' Foscari Venice); Tiziano Vescovi (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | The strategies of internationalization have been one of hottest topics in managerial literature in the last decade. Interestingly to notice how deep and unexpected changes have challenged the mainstream of international management theories. This paper illustrates a framework and some preliminary results aim to comprehend how and why MMNEs (Medium-size Multinational Entreprise) internationalization strategies deviate from the more established strategies of multinational and global companies (MNC). We study a sample of Italian SMEs, analyzing the strategy choice and the governance models adopted in China businesses. Qualitative analysis highlights both the feasibility and sustainability of governance models (criteria and components) and forms (model execution and implementation). This paper investigates the specificities of SMEs: The adaptation process and, in some cases, the innovative governance forms analyzed in our sample of cases (described in the paper) are strongly affected by the following factors: first, the size does not fit the potential or actual dimension of market (size factor); Second, increasing difficulties to access to the countries? institutional externalities and strong reliance on the efficiency of markets in order to purchase product and services which they can not internalize (make or buy factor);. Third, negative effects of size preventing to reach arrangements with local and national government (government and local shareholders factor); Fourth, being part of the supply chain of larger firms (MNC) is a common entry mode in Chinese market. Last factor refers to the lack of resources (human, market and relational capital). |
| Keywords: | International Management, Emerging Economies and Markets, International Marketing Strategies, Small and Medium Enterprises. |
| JEL: | F23 M16 M31 D22 D21 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:64&r=cse |
| By: | Tavassoli, Sam (Industrial Economics, Blekinge Institute of Technology, Karlskrona, Sweden and CIRCLE, Lund University, Sweden) |
| Abstract: | This paper analyzes how the influence of firm-level innovation determinants varies over the industry life cycle. Two sets of determinants are distinguished: (1) determinants of a firm’s innovation propensity, i.e. the likelihood of being innovative and (2) determinants of its innovation intensity, i.e. innovation sales. By combining the literature emphasizing firms’ internal resources (micro level) with the research strand on the role of the industry context (meso-level), the paper develops hypotheses about the relative importance of firm-level innovation determinants over the industry life cycle. Estimation of a firm-level model of innovation in Sweden, while acknowledging the stage of the life cycle of the industry a firms belongs to, shows that the importance of the determinants of innovation propensity and intensity are not equal over the stages of an industry’s life cycle |
| Keywords: | Determinants of innovation; innovation intensity; innovation propensity; Industry Life Cycle (ILC); Community Innovation Survey (CIS4) |
| JEL: | F14 O31 O33 |
| Date: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_042&r=cse |
| By: | Baier , Elisabeth (PTV Group AG, Germany); Rammer , Christian (ZEW, Germany); Schubert , Torben (CIRCLE, Lund University, Sweden and Fraunhofer Institute for Systems and Innovation Research, Germany) |
| Abstract: | We analyze the effects of captive off-shoring of innovation activities on the firms’ ability to adapt its organizational structures. Basing our arguments on complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We find an inverted u-shape of innovation off-shoring on the effectiveness of organizational adaptability, implying an optimal threshold value of innovation off-shoring. This value is 11% for the share of off-shored R&D, 15% for downstream innovation activities such as local market adaptation, and 34% for design activities. We also analyze several contingency variables. In particular we show that the costs of innovation off-shoring in terms of reduced organizational adaptability are exacerbated by a strong focus on R&D and a strong embeddedness in on-shore networks. Smaller firms find it easier to deal with the management complexity induced by geographical dispersion of innovation activities because of their greater flexibility. |
| Keywords: | Internationalization; Off-Shoring; Innovation; R&D; Organizational Adaptation; Organizational Adaptability |
| JEL: | L23 L25 M16 O32 |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_044&r=cse |
| By: | Tavassoli, Sam (Industrial Economics, Blekinge Institute of Technology, Karlskrona, Sweden and CIRCLE, Lund University, Sweden) |
| 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 timeinvariant 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: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_038&r=cse |
| By: | Tavassoli, Sam (Industrial Economics, Blekinge Institute of Technology, Karlskrona, Sweden and CIRCLE, Lund University, Sweden); Carbonara , Nunzia (Dept of Mechanical and Management Engineering, Politecnico di Bari, Italy) |
| Abstract: | This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovative capability. When it comes to variety, related knowledge variety plays a superior role |
| Keywords: | Knowledge intensity; Knowledge variety; Related variety; Unrelated variety; Internal knowledge; External knowledge; Patent applications; Functional regions |
| JEL: | F14 O32 R12 |
| Date: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_034&r=cse |
| By: | Carbonara , Nunzia (Dept of Mechanical and Management Engineering, Politecnico di Bari, Italy); Tavassoli, Sam (Industrial Economics, Blekinge Institute of Technology, Karlskrona, Sweden and CIRCLE, Lund University, Sweden) |
| Abstract: | This paper seeks to contribute to the ongoing debate concerning the role of heterogeneity for the innovative capability of industrial districts. With this aim, using a knowledge-based approach, the paper focuses on different sources of industrial district knowledge heterogeneity and studies how the different level of heterogeneity affects the innovative capability of industrial districts. Four theoretical hypotheses concerning the effects of knowledge and knowledge heterogeneity on the Industrial District innovativeness are formulated. To test the hypotheses, an econometric analysis on 32 Italian District Provinces is applied. Empirical results show that knowledge heterogeneity matter for increasing the innovative capability of industrial districts. |
| Keywords: | Industrial district; innovative capability; knowledge heterogeneity |
| JEL: | F14 O32 R12 |
| Date: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_035&r=cse |
| By: | Alvandi , Keyvan (CIRCLE, Lund University); Chaminade , Cristina (CIRCLE, Lund University); Lv, Ping (University of Chinese Academy of Sciences, China) |
| Abstract: | This paper investigates commonalities and differences in firm level determinants of internationalization of production (production related investments or PFDI) and innovation (technology driven investments or TFDI) by Multinational Enterprises (MNEs). Our database is based on a cross country survey which includes firms within Automotive, Agro-processing and ICT sectors from both developing and advanced economies. Our results show that despite some differences, most of the determinants affect in a similar manner both the PFDI and TFDI which rather contradicts recent arguments claiming significant differences between the two. More interestingly however, we found that institutional determinants such as policies related to foreign direct investments play almost no role in internationalization process of firms while managerial (internal to the firm) determinants had a far greater impact. |
| Keywords: | Foreign direct investment; Multinationals; Globalization; offshoring; TFDI |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_047&r=cse |
| By: | Leyden, Dennis P. (University of North Carolina at Greensboro, Department of Economics); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Siegel, Donald S. (University at Albany, SUNY) |
| Abstract: | Entrepreneurship involves innovation and uncertainty. We outline a theory of entrepreneurship, which highlights the importance of social networks in promoting innovation and reducing uncertainty. Our findings suggest that this “social” aspect of entrepreneurship increases the probability of entrepreneurial success. The results also lend credence to theories of entrepreneurship that suggest that entrepreneurial opportunities are formed endogenously by the entrepreneurs who create them. We also consider the public policy implications of our findings. |
| Keywords: | Entrepreneurship; Social networks; Innovation; Technology |
| JEL: | O31 O32 O33 O38 Z13 |
| Date: | 2013–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_022&r=cse |
| By: | Roberto Josep Martí (Departament of Economics, Universitat Jaume I, Castellón, Spain); Maite Alguacil (Departament of Economics, Universitat Jaume I, Castellón, Spain); Vicente Orts (Departament of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | In this paper we examine how different host country characteristics affect the location decision of Spanish multinational firms in developing and transition countries, particular attention being paid to the sectoral composition of foreign direct investments (FDI). The estimation of a set of logit models allows us to consider different substitutability patterns among alternatives. The study focuses on a broad firm-level sample of 4,177 Spanish affiliates established in 52 countries over the period 1990 to 2010. The results suggest that Spanish FDI in developing and transition economies are driven by both market-seeking and efficiency-seeking factors. FDI is found to be positively related to the size of the market and negatively related to labor costs. The estimates also reveal that Spanish investment in developing and transition countries exhibit a pronounced agglomeration effect, although the intensity of these externalities depends on both the sort of activity and the nationality of competitors. Furthermore, our results show differences between manufactures and services in other local factors, such as human capital, macroeconomic instability, and financial risk, thereby confirming the idea that investors in each sector have different motivations for locating foreign affiliates in developing countries. The quality of infrastructures and institutions also appear to influence the location of FDI in these economies. |
| Keywords: | Location choice; Nested and Mixed Logit models; Developing and transition countries; Multinational firms |
| JEL: | F21 F23 R39 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2013/19&r=cse |
| By: | Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Christian Le Bas (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Nicolas Poussing (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development) |
| Abstract: | This paper explores the relationship between corporate social responsibility (CSR) and innovation from a firm strategic perspective. Matching Community Innovation Survey data with specific data collected about the CSR behaviour of Luxembourg firms, the authors identify two types of firms (strategic versus responsive) that differ in the intensity of their CSR adoption. A bivariate probit model, estimated to explain the different types of technological innovations (product and/or process), shows that firms with strategic CSR profiles are more likely to innovate in both products and processes. In contrast, adopting responsive CSR practices significantly alters firms' innovation, such that CSR may create barriers to innovation. These results have implications for theory and offer managerial recommendations for firms designing their innovation strategies. |
| Keywords: | Corporate social responsibility; Innovation; Product; Process;Strategic profiles |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00918528&r=cse |
| By: | Hakim Hammadou (EQUIPPE, University of Lille, France); Sonia Paty (Universite de Lyon 2, Universite de Lyon, France); Maria Savona (SPRU, University of Sussex, UK) |
| Keywords: | Public R&D expenditures; Strategic interactions in public spending; National Systems of Innovation; private R&D; EU countries; spatial dynamic panel data |
| JEL: | H5 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2013-17&r=cse |
| By: | Navaretti , Giorgio Barba (Department of Economics, Management and Quantitative Methods, University of Milan, Italy); Castellani , Davide (Department of Economics, Finance and Statistics, University of Perugia, Centro Studi Luca d'Agliano, Milan, Italy Halle Institute for Economic Research (IWH), Halle, Germany CIRCLE, Lund University, Sweden); Pieri , Fabio (Depto. de Economia Aplicada II (Estructura Economica), Universitat de Valencia, Spain) |
| Abstract: | This paper provides new insights on the dependence of firm growth on age along the entire distribution of (positive and negative) growth rates, and conditional on survival. Using data from the EFIGE survey, and adopting a quantile regression approach, we uncover evidence for a sample of French, Italian and Spanish manufacturing firms with more than 10 employees in the period from 2001 to 2008. After controlling for several firms’ characteristics, country and sector specificities we find that: (i) young firms grow faster than old firms, especially in the highest growth quantiles; (ii) young firms face the same probability of declining than their older counterparts; (iii) results are robust to the inclusion of other firms’ characteristics such as labor productivity, capital intensity, and the financial structure; (iv) high growth is associated with younger CEOs and other attributes which capture the attitude of the firm toward growth and change. The effect of age on firm growth is rather similar across countries. |
| Keywords: | firm growth; age; quantile regression |
| JEL: | L21 L25 L26 L60 |
| Date: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_041&r=cse |
| By: | Sofia Wixe; Martin Andersson |
| Abstract: | This paper provides a conceptual discussion of relatedness, which suggests a focus on individuals as a complement to firms and industries. The empirical relevance of the main arguments are tested by estimating the effects of related and unrelated variety in education and occupation among employees, as well as in industries, on regional growth. We show that for regional productivity growth, occupational and educational related variety matter over and above industry relatedness. This supports the conceptual discussion put forward. The potential of productive interactions between employees in a region is thus greater when there is related variety in their ‘knowledge base’. We also find that related variety in industries is positive for employment growth but negative for productivity growth. |
| Keywords: | Relatedness, variety, occupation, education, regional growth |
| JEL: | R12 R23 J24 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1326&r=cse |
| By: | Marco Di Cintio; Emanuele Grassi |
| Abstract: | This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R&D) expenditure. Using a panel of Italian manufacturing firms, we find a hump-shaped relationship between workforce flexibility and R&D outlays. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D. |
| Keywords: | Real options theory, R&D, uncertainty, temporary workers. |
| JEL: | D22 D81 J41 O31 |
| Date: | 2013–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2013_13&r=cse |
| By: | METAXAS, THEODORE; KALLIORAS, DIMITRIS |
| Abstract: | The paper investigates the importance of territorial characteristics/assets (i.e. agglomeration economies, urban infrastructure, factors of labor and cost, development policies, qualitative factors, inter alia) on small- and medium-sized firms’ competitiveness. The analysis uses primary data from 374 small- and medium-sized firms located in Bari (Italy), Varna (Bulgaria) and Thessaloniki (Greece). These firms operate in the sectors of industry, commerce and services. Through the use of exploratory factor analysis and econometric analysis, the importance of particular factors for the competitiveness of firms has been analyzed, coming out in valuable conclusions not only for the firms and the areas considered but also for firms and areas with similar characteristics. |
| Keywords: | firms’ competitiveness, territorial characteristics/assets, exploratory factor analysis, econometric analysis |
| JEL: | O18 R11 R50 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52446&r=cse |
| By: | Joëlle Noailly; Victoria Shestalova |
| Abstract: | This paper studies the knowledge spillovers generated by renewable-energy technologies, unraveling the technological fields that benefit from knowledge developed in storage, solar, wind, marine, hydropower, geothermal, waste and biomass energy technologies. A CPB Background Document accompanies this�CPB Discussion Paper. Using citation data of patents in renewable technologies at seventeen European countries over the 1978-2006 period, the analysis examines the relative importance of knowledge flows within the same specific technological field (intra-technology spillovers), to other technologies in the field of power-generation (inter-technology spillovers), and to technologies unrelated to power-generation (external-technology spillovers). The results show significant differences across various renewable technologies. While wind technologies mainly find applications within their own technological field, a large share of innovations in solar energy and storage technologies find applications outside the field of power generation, suggesting that solar technologies are more general and, therefore, may have a higher value for society. Finally, the knowledge from waste and biomass technologies is mainly exploited by fossil-fuel power-generating technologies. The paper discusses the implications of these results for the design of R&D policies for renewable energy innovation. |
| JEL: | O33 Q42 Q48 Q55 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:262&r=cse |
| By: | Andrea Pontiggia (Dept. of Management, Università Ca' Foscari Venice); Lala Hu (Dept. of Management, Università Ca' Foscari Venice); Marco Savorgnan (Polins Center for Innovation Studies) |
| Abstract: | Our purpose in this article is to develop a framework for studying organizational arrangements used by Chinese Global firms in allocating work and managing human resources in the international context. Our framework based on human capital theory, transaction cost economics, and resource-based view of the firm investigate four factors: institutional, demographic, legislative, and educational changes in China, drawing some of the main challenges in Human Resources Management (HRM) for both Chinese and foreign firms. The paper contains a brief review of literature concerning the role of human capital in economic growth, then it focuses on the recent evolution of the Chinese labor market, and finally, it draws some implications for human capital management in China from global point of view. Our general framework contribute: first, to the formulation of research hypothesis of convergence (or divergence) of HRM practices in global markets, second, it emphasizes the relationship between the institutional and country's specificities of labor market and the HRM, and last it shows some effects of institutional policies and reforms on the quality and the availability of human capital China. These three points seem to support a broad idea of competitiveness based on labor market efficiency and how the internationalization strategies depend on the sources of human capital. |
| Keywords: | Chinese Labor Market; Labor Market Regulations and Laws; Human Resources Management Strategies; Human Capital Development and Leverage. |
| JEL: | J24 J41 J82 L22 M12 M54 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:65&r=cse |
| By: | Baldwin, John R. Liu, Huju Wang, Weimin |
| Abstract: | This paper describes the patterns of firm entry and exit across provinces in Canada, the relationship of these patterns to differences in industrial structure and the response of firm entry and exit to changes in the economic environment. Firm entry and exit play an important role in shaping industrial structure and dynamics. Although entry and exit are ubiquitous, new firms are often associated with new ideas and the provision of innovative goods and services that enhance competition and force incumbents to become more innovative and efficient. Studies have shown the considerable role played by entry and exit in resource reallocation and productivity improvement. |
| Keywords: | Business performance and ownership, Entry, exit, mergers and growth |
| Date: | 2013–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2013030e&r=cse |
| By: | Cantner, Uwe; Michael, Stuetzer |
| Abstract: | A central development within the management literature has been the growth of nascent entrepreneur research analysing on--going venture start-up efforts and/or firms in gestation over time (Davidsson, 2006). New ventures have an important effect on economic development. They are credited for the transfer of innovations into the market (Schumpeter, 1934; Acs and Plummer; 2005) and creating regional employment (e.g. Fritsch and Mueller, 2004). Central questions in nascent entrepreneurship research concern the characteristics of the venture creation process and the factors affecting performance of these firms (for an overview see Davidsson, 2006). Among other factors considered in the literature, the social embeddedness of the entrepreneur has been found to play a pivotal role (Davidsson and Honig, 2003). Social capital enables entrepreneurs to access resources (Florin et al., 2003) or novel information (Uzzi, 1997) in order to create opportunities (Baker and Nelson, 2005). During the venture creation process, most firms suffer from substantial resource constraints (Shepherd et al., 2000) and use their personal networks as a means to access resources and information far below market price (Elfring and Hulsink, 2003). However, a sizeable gap exists in the burgeoning social capital literature on the subject of team start--ups. A most prominent finding is that team start--ups are more successful than solo start--ups (e.g. Lechler, 2001). One of the offered explanations is that entrepreneurs can combine their abilities and financial capital in a team, giving them an advantage above solo entrepreneurs (e.g. Gartner, 1985; Stam and Schutjens, 2006). Sometimes explicitly (e.g. Colombo and Grilli, 2005; Stam and Schutjens, 2006) but more often implicitly (e.g. Davidsson and Honig, 2003; van Gelderen et al., 2005), the same argument is applied to the usage of social capital, i.e. that the social capital from individual team members is combined to provide an advantage for teams over solo entrepreneurs. As yet, to our knowledge, no study has explicitly analysed whether, compared to solo entrepreneurs, more social capital is found within teams and whether this leads to their better performance. In this chapter, we approach these two questions and empirically explore the use of social capital of solo entrepreneurs and entrepreneurial teams during the venture creation process. In doing so, we refine the empirical concept of social capital in that we do not look at its mere existence but focus on its use in terms of concrete support (e.g. advice on the business plan, marketing, or research and development - R&D) for the entrepreneurs. We address two major research questions. The first concerns the differential use of social capital. Do solo entrepreneurs rely more often on social capital than new venture teams, or is it the other way around? How do both types of start--ups use social capital? More precisely, we investigate the relationship between social capital and other characteristics of the new venture and its founders (e.g. human capital). The second research question then turns to the effect of social capital on subsequent new venture performance. Appropriate hypotheses in this study are tested using a dataset of 456 start--ups in innovative industries in the German state of Thuringia. The reminder of this chapter is organized as follows. In Section 2, we review the theory and previous research on social capital in order to generate six testable hypotheses. In Section 3, we describe the dataset and the methods employed to measure the use of social capital. We then present (Section 4) the results of our analysis. The chapter concludes in Section 5, where we interpret and discuss the results and draw some conclusions. |
| Keywords: | Social capital, human capital, new businesses |
| JEL: | M13 |
| Date: | 2103 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52482&r=cse |
| By: | Julie Bower; Howard Cox |
| Abstract: | We present an historic industry study of the consolidation of the UK alcoholic beverages firms to inform debates in organisation studies relating to co-evolution and the dynamics of internationalisation. We distinguish behavioural and structural co-evolutionary factors in firms’ strategic intent, mirroring the two types of remedies that competition authorities can impose on merging firms. We test this theoretical construct in an empirical investigation of the consolidating UK alcoholic beverages firms between 1985 and 2005. In this era Diageo was formed from the landmark merger of Grand Metropolitan and Guinness. Subsequently Diageo acquired the former international spirits empire of Seagram in partnership with a major competitor. Successful implementation of Diageo’s merger strategy owed much to an ability to navigate the evolving multijurisdictional co-ordinated oversight of cross-border mergers and acquisitions. The formation of novel deal structures as well as co-operation with competitors to circumvent policy intervention were significant co-evolutionary mechanisms that have featured more generally in subsequent international mergers as others have copied these deal structures to achieve similar regulatory outcomes. |
| Keywords: | Alcoholic beverages; Co-evolution; Competition policy; Merger regulation |
| JEL: | K21 L22 L66 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:48&r=cse |
| By: | Zukauskaite , Elena (CIRCLE, Lund University); Moodysson , Jerker (CIRCLE, Lund University) |
| Abstract: | The aim of this paper is to explain the complex development of the food sector in Southern Sweden in the past decades, focusing on the relation between institutions and innovation practices and taking into account the diversity of actors composing the sector. The paper develops a theoretical framework combining concepts of path dependency and knowledge bases, and applies it empirically. The three paths identified in the paper resemble path development via radical change, incremental change and diversification. |
| Keywords: | Food sector; Innovation; Sweden; Institutions; Knowledge base |
| JEL: | B52 O31 R11 |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_046&r=cse |
| By: | Guffarth, Daniel; Barber, Michael J. |
| Abstract: | We describe the development of the European aerospace R&D collaboration network from 1987 to 2013 with the help of the publicly available raw data of the European Framework Programmes and the German Förderkatalog. In line with the sectoral innovation system approach, we describe the evolution of the aerospace R&D network on three levels. First, based on their thematic categories, all projects are inspected and the development of technology used over time is described. Second, the composition of the aerospace R&D network concerning organization type, project composition and the special role of SMEs is analyzed. Third, the geographical distribution is shown on the technological side as well as on the actor level. A more complete view of the European funding structure is achieved by replicating the procedure on the European level to the national level, in our case Germany. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:842013&r=cse |
| By: | Gorodnichenko, Yuriy (University of California, Berkeley); Svejnar, Jan (Columbia University); Terrell, Katherine (University of Michigan) |
| Abstract: | We use rich firm-level data and national input-output tables from 17 countries over the 2002-2005 period to test new and existing hypotheses about the impact of foreign direct investment (FDI) on the efficiency of domestic firms in the host country (i.e., spillovers). We document that backward linkages have a consistently positive effect on productivity of domestic firms while horizontal and forward linkages show no consistent effect. We also examine how the strength of spillovers varies by sector, FDI source, business environment (corruption, red tape, level of development), firm's distance to the technological frontier, education of workers, and other firm- and country-specific characteristics. |
| Keywords: | FDI, spillovers, transition economies, efficiency |
| JEL: | F23 M16 O16 P23 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7824&r=cse |
| By: | Matthew Beacham; Bipasa Datta |
| Abstract: | It is well established in the empirical literature that venture capital (VC) plays an important role in the promotion of innovation at industry level and the professionalisation of firms at micro-level. Whilst the VC-to-success link has been well explored, the mechanism behind how and why certain venture-backed firms are apparently more successful is an important question that has been largely ignored within the majority of the literature. In this paper, we fill this gap by specifically analysing firms' pre- and post-VC investment decisions. By considering a two period, multi-stage game, we analyse whether VC spurs innovation (i) directly after being granted; (ii) indirectly by incentivising firms to increase initial research efforts to increase their chances of receiving VC funding and its associated benefits; or (iii) a combination of both. Our results show that VC has both direct and indirect effects on firms' innovation decisions regardless of whether the firm is successful in securing VC funding or not. Furthermore, we find that the commonly held assertion that venture capital spurs success is too simplistic: whilst venture capital spurs innovation amongst the lucky, chosen few, it unambiguously suppresses innovation of non-VC-backed firms, a result that has been overlooked in the empirical literature. The issue of `who becomes the winner' in the final product market however is ultimately dependent upon the extent of heterogeneity amongst firms. Further, we show that VC funding, equity stake and value-adding services all have impacts upon firms' incentives to invest in the first stage. |
| Keywords: | Venture capital, innovation, firm heterogeneity, investment and effort, strategic substitutes and complements |
| JEL: | G24 L13 L2 O31 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:13/33&r=cse |
| By: | Kevin Levillain (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Blanche Segrestin (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | It is well acknowledged that interfirms partnerships and alliances enable new strategies that create more value for the partners. However, in the case of explorative alliances, this value goes beyond what is expectable at the time of alliance formation. Building on the Resource-Based View, we propose a model of the "potential" of a collaboration, to refer to the ability of partners to continuously design new valuable strategies from the initial resources. Based on a case study, we show that the potential has been overlooked by the literature and calls for new management and governance rules of explorative alliances. The generation of new strategies require new management rules to avoid splitting alliance's cohesion and enable efficient exploitation of this potential. Actually, this sheds light on a paradoxical binding effect between partners that participate to collective innovative design activities. Lastly, the model of "potential" contributes to the resource-based view, and outlines a future research agenda based on this potential. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00920839&r=cse |
| By: | Ine Paeleman (Ghent University); Catherine Fuss (National Bank of Belgium, Research Department; Université Libre de Bruxelles); Tom Vanacker (Ghent University; Vlerick Business school) |
| Abstract: | We use a unique longitudinal dataset that tracks the exporting behavior of Belgian manufacturing firms between 1997 and 2009. We ask how slack resources, including financial and human resource slack, influence firms’ exporting behavior. Our findings suggest that both types of slack resources have an inverted U-shaped relationship with the decision to export. This implies that higher levels of slack resources positively influence the likelihood of firms exporting, but too much slack negatively influences this likelihood. After controlling for the decision to export, we find no significant relationship between slack resources and export intensity. Nevertheless, we do find an inverted U-shaped relationship between slack resources and export diversity. Overall, this study provides new insight into how different types of slack resources influence different aspects of firms’ exporting behavior. |
| Keywords: | financial resources, human resources, slack and export |
| JEL: | F10 L20 O15 O16 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201312-248&r=cse |
| By: | Celińska-Janowicz, Dorota; Zawalińska, Katarzyna; Widła-Domaradzki, Łukasz |
| Abstract: | Presented study was a part of ESPON TERCO project (European Territorial Cooperation as a Factor of Growth, Jobs and Quality of Life) and was aimed at verifying the hypothesis that territorial cooperation underpins socio-economic development. Based on the literature review a conceptual model of successful territorial cooperation was proposed, where this kind of cooperation was defined as bringing the highest joint socio-economic development to the cooperating territorial units. That theoretical model was verified empirically by structural equation modeling, based on data collected via electronic questionnaires (CAWIs) in 9 cross-border case studies. The results of the SEM analysis positively verified the main hypothesis and provided information about the role of particular ‘determinants and factors’ in achieving successful TC measured by several ‘impact’ indicators. It was also possible to access the extent to which particular ‘determinants and factors’ contributed to the successful TC as a whole and its particular ‘impacts’. The probability of success of territorial cooperation was the highest when TC projects were initiated by NGOs, local or regional government, funding came from own or EU sources, cooperation was based on simple forms of collaboration, and related to culture, economy, tourism, natural environment or physical infrastructure. |
| Keywords: | territorial cooperation; international cooperation; SEM; regional development |
| JEL: | O19 R11 R15 R58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52507&r=cse |
| By: | Pojo, Sabrina Da Rosa; Vidal, Valéria Schneider; Zen, Aurora Carneiro; Barros, Henrique M. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:ibm:ibmecp:wpe_330&r=cse |
| By: | Matt Marx; Joshua S. Gans; David H. Hsu |
| Abstract: | When startup innovation involves a potentially disruptive technology – initially lagging in the predominant performance metric, but with a potentially favorable trajectory of improvement – incumbents may be wary of engaging in cooperative commercialization with the startup. While the prevailing theory of disruptive innovation suggests that this will lead to (exclusively) competitive commercialization and the eventual replacement of incumbents, we consider a dynamic strategy involving product market entry before switching to a cooperative commercialization strategy. Empirical evidence from the automated speech recognition industry from 1952-2010 confirms the main prediction of the model. |
| JEL: | O32 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19764&r=cse |
| By: | Mario Holzner (The Vienna Institute for International Economic Studies, wiiw); Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Despite the proclaimed return of industrial policy (Wade, 2012) state aid provided by EU Member States remains at a historically low level. This is partly explained by the unique institutional arrangement in the EU which empowers the European Commission to monitor and restrict state aid activities of Member States. Making use of European state aid statistics over the period 1995-2011 we employ an augmented macroeconomic export function to investigate the relationship between state aid for the manufacturing sector and Member States’ export performance. With manufacturing value added exports serving as a proxy for export performance, our model suggests that a 10% increase in manufacturing aid increases exports by 0.67% for the average EU country. The result is confirmed by instrumental variable estimation. We also find that the impact of state aid on exports is increasing with government effectiveness leading to large differences in the leverage of aid expenditures to promote export performance across Member States. |
| Keywords: | industrial policy, state aid, value added exports, external competitiveness |
| JEL: | F13 L52 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:106&r=cse |
| By: | VANOVERMEIRE, Christine; CUERVO, Daniel Palhazi; SÖRENSEN, Kenneth |
| Abstract: | Horizontal logistic collaboration leads to large prots when the right coalition is formed. Most of the previous research however explains the profit differences using market conditions on coalitional level. We show that the level of profit is highly dependent on finding a correct combination of partners. By estimating a model using the average order size, number of orders and maximal delay of each partner separately, as well as the interaction effects of these parameters, the possible number of profitable situations that can be identified significantly increases. Finally, it is demonstrated that cost allocation plays an important role when selecting a partner to collaborate with. |
| Keywords: | Horizontal collaboration, Cost allocation, Profit estimation, Vehicle routing |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2013031&r=cse |