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on Economics of Strategic Management |
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Issue of 2014‒01‒17
fourteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS]); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS]); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS]) |
| Abstract: | The paper analyzes the effects of the properties of firms' knowledge base on the survival likelihood of firms. Drawing upon the analysis of the patterns of co-occurrence of technological classes in patent applications, we derive the coherence, variety and cognitive distance indexes, accounting respectively for technological complementarity, differentiation and dissimilarity in the firms' patent portfolios. The results of our analysis are in line with the previous literature, showing that innovation enhances the survival likelihood of firms. In addition, we show that the search strategies at work in the development of firms' knowledge base matter in reducing the likelihood of a failure event. Knowledge coherence and variety appear to be positively related to firms' survival, while cognitive distance exerts a negative effect. We conclude that firms able to exploit the accumulated technological competences have more chances to be successful in competing durably in the market arena, and derive some policy implications concerning the role of public intervention in the orientation of search efforts in local contexts. |
| Keywords: | Knowledge coherence; Variety; Cognitive distance; Firms' survival |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00923650&r=cse |
| By: | Riccardo Crescenzi; Max Nathan; Andrés Rodríguez-Pose |
| 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: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0153&r=cse |
| By: | Baier, Elisabeth; Rammer, Christian; Schuber, Torben |
| Abstract: | We analyze the effects of captive off-shoring of innovation activities on the firms' ability to adapt their organizational processes and structures. Starting from 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 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: | O32 M16 L23 L25 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13109&r=cse |
| By: | Chang, C-L.; McAleer, M.J.; Tang, J-T. |
| Abstract: | With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. |
| Keywords: | R&D, cross-border patent, exports, imports, international technology diffusion, joint patent, negative binomial panel data |
| JEL: | F14 F21 O30 O57 |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:40779&r=cse |
| By: | Konovalov, Alexander (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | We consider games where agents are embedded in a network of bilateral relationships and have multivariate strategy sets. Some components of their strategies correspond to individual activities, while the other strategic components are related to joint activities and interaction with the partners. We introduce several new equilibrium concepts that account for the possibility that players act competitively in individual components of their strategy but cooperate on the components corresponding to joint activity or collaboration. We apply these concepts to the R&D collaboration networks model where firms engage in bilateral joint projects with other firms. The analysis shows that investments are highest under bilateral cooperation and lowest under full cooperation because the spillovers associated to bilateral collaboration are bound to the partnership. This leads to welfare being maximized under bilateral collaboration when there are a few firms in the market and under non-cooperation in markets with many firms; full cooperation is never social welfare maximizing. Investigating the issue of endogenous network formation, we find that bilateral cooperation increases (lowers) the profits of more (less) connected firms. However, this does not always lead to a denser stable network of R&D collaboration under bilateral cooperation. |
| Keywords: | network games; bilateral cooperation; hybrid equilibrium; R&D collaboration networks |
| JEL: | L13 L14 L22 O31 O32 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0583&r=cse |
| By: | Benjamin Kern (University of Marburg); Malte Ackermann (University of Marburg) |
| Abstract: | A merger between two innovation competitors is often suspected to reduce the variety of heterogeneous entities which are currently undertaking R&D or which are well situated to undertake R&D in a certain field. The consequential reduction of “diversity” can be detrimental to innovation because it reduces the number of independent sources for possible future innovations and might furthermore lead to an alignment of formerly different R&D programs. However, if “diversity” indeed benefits innovative performance, even merged firms should have an incentive to maintain it in-house. Therefore, this article aims to bring to light whether firms can indeed be expected to create or maintain “diversity” post-merger. By focusing on the strategic management and organizational science literature we will demonstrate that the creation/maintenance of independent entities is indeed considered as an important determinant for the innovativeness and general performance of firms. Nevertheless, we will also show that this strategy has several grave implementation problems and might be hampered by certain trade-offs. As a consequence, competition authorities cannot presume that a reduced “inter-firm diversity” will get substituted by an increased “intra-firm diversity” without fail. |
| JEL: | B52 K21 L4 M1 O31 O32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201405&r=cse |
| By: | Filippova, Irina; Mindlin, Yuri |
| Abstract: | The article investigates the impact of clusters on the social environment and the impact of institutional factors on the formation and development of clusters. The authors proceed from the obvious assumption that the basic prerequisite for successful clustering is the development of entrepreneurship, and the expected result (i.e. the purpose of cluster initiatives) is the growth in cluster's competitiveness. In this paper a number of economic-statistical models were constructed using the data of international research organizations to identify the main factors influencing the competitiveness and the potential of entrepreneurship’s development. It allows not only to substantiate the thesis about the dominant influence of social factors but also to reveal the implicit contradiction between the social and economic aspects of entrepreneurship able to cause a reduction in the competitiveness of the cluster. Obtained models permit to assert that social capital is the key factor for the effectiveness of cluster initiatives, therefore the negative impact of the cluster on the social environment leads inevitably to decline in its competitiveness in the future. Social capital is considered as the capital of relations which provides a certain level of social integration and directly depends on the level of social responsibility of subjects of relations. This implies that the level of social responsibility of business and government determines the prospects of clustering by influencing the key factors of the efficiency of this process. |
| Keywords: | cluster, entrepreneurship, social capital, innovation, social responsibility, cluster initiatives, social control, social flexibility of business |
| JEL: | E02 L00 O31 O32 |
| Date: | 2013–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52765&r=cse |
| By: | Chang, C-L.; Hsu, H-K.; McAleer, M.J. |
| Abstract: | This paper investigates the stock returns and volatility size effects for firm performance in the Taiwan tourism industry, especially the impacts arising from the tourism policy reform that allowed mainland Chinese tourists to travel to Taiwan. Four conditional univariate GARCH models are used to estimate the volatility in the stock indexes for large and small firms in Taiwan. Daily data from 30 November 2001 to 27 February 2013 are used, which covers the period of Cross-Straits tension between China and Taiwan. The full sample period is divided into two subsamples, namely prior to and after the policy reform that encouraged Chinese tourists to Taiwan. The empirical findings confirm that there have been important changes in the volatility size effects for firm performance, regardless of firm size and estimation period. Furthermore, the risk premium reveals insignificant estimates in both time periods, while asymmetric effects are found to exist only for large firms after the policy reform. The empirical findings should be useful for financial managers and policy analysts as it provides insight into the magnitude of the volatility size effects for firm performance, how it can vary with firm size, the impacts arising from the industry policy reform, and how firm size is related to financial risk management strategy. |
| Keywords: | asymmetry, conditional volatility models, firm size, stock returns, tourism, tourism policy reforms, volatility size effects |
| JEL: | C22 G18 G22 G32 L83 |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:41465&r=cse |
| By: | C. BELLÉGO (Insee); V. DORTET-BERNADET (Insee) |
| Abstract: | The French cluster policy Pôles de compétitivité has been launched in 2004 to foster collaborations between firms, research institutions, and training institutions. Many firms taking part in these clusters have obtained subsidies to finance R&D collaborative projects involving other firms and research institutions. This study analyzes the effects of taking part in a Pôle de compétitivité on the activity of firms. The effects are estimated by matching firms taking part in clusters to similar firms that remained out of the policy. This method only permits to estimate an effect for SME and intermediate-sized enterprises that spend less than 16 million euros in R&D per year, that are at least two years old, and that already realized R&D before taking part in a cluster. Firms participating in a Pôle de compétitivité would have increased their total R&D expenditures. Not all firms have taken part in a subsidized project, but they would have received more subsidies on average. These firms would have also benefited from higher amounts of Research tax credit (Crédit Impôt Recherche CIR) but overall we do not find any evidence of crowding out effect : public funds do not substitute private R&D. The effect seems to be additive : firms would add the amount of subsidies and tax credit to their private budget. Higher R&D spending is realized through an increase in investment and employment devoted to R&D. By cons, there is no significant short-term effect on the turnover and the number of patents. While cluster participation seems to increase R&D spending, it has not been possible to precisely disentangle the role played by the clusters and the role played by CIR, which has strongly reduced the cost of R&D at the end of the period of interest. |
| Keywords: | R&D, cluster policy, public policy evaluation, matching |
| JEL: | O38 O31 H25 C23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpdeee:g2013-06&r=cse |
| By: | Vassilis Monastiriotis |
| Abstract: | The process of approximation between the EU and its ‘eastern neighbourhood’ has created conditions for deepening economic interactions and market integration, giving to the EU –and to EU businesses– an elevated role in the process of economic modernisation and transition in the neighbourhood countries. This raises the question as to whether European business activity in these countries produces indeed measureable economic advantages both in absolute and in relative terms (e.g., compared to business activity from other parts of the world). Similarly, a question arises as to whether European business activity reduces or amplifies spatial imbalances within the partner countries. This paper examines these issues for the case of capital flows (foreign ownership) and the related productivity spillovers, using firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) covering 28 transition countries over the period 2002-2009. We estimate the direct and intra-industry productivity effects of foreign ownership and examine how these differ across regional blocks (CEE, SEE and ENP), according to the origin of the foreign investor (EU versus non-EU), across geographical scales (pure industry versus regional spillovers) and for different types of locations (capital-city regions versus the rest). Our results suggest that FDI of EU origin plays a distinctive role in the countries concerned helping raise domestic productivity significantly more than investments from outside the EU. However, this process appears to operate in a spatially selective manner, thus enhancing regional disparities and spatial imbalances. This, then, assigns a particular responsibility for EU policy, as it continues to promote economic integration (and FDI flows) to its eastern neighbourhood, to devise interventions that will help redress these problems. |
| JEL: | Z00 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:eiq:eileqs:70&r=cse |
| By: | Gaulier, G.; Santoni, G.; Taglioni, D.; Zignago, S. |
| Abstract: | Over the past two decades, international trade has become a privileged engine of growth for much of the developing world. In the wake of the global crisis, countries must pay close attention to their positioning on the global map of trade and production and become aware of how they fare relative to competitors and to their past export performance. To which extent changes in their market shares are driven by exporter own supply-side capacity as opposed to external or compositional factors, dues to their product and geographical specialization? This paper uses quarterly data, covering all exchanges flows at the product level since 2005, to compute indicators of export performance stripped of compositional effects. The resulting Export Competitiveness Database (ECD) reveals that emerging and developing regions, particularly the Asia and Pacific one, had strongest capacity to gain market shares in the most recent period, with changes reflecting growth in export volumes rather than price developments (once controlled for the composition effects). In contrast, ECD indicators also trace the legacy of the double-dip recession in the euro area, which have turned into negative the geographical effects of the traditional intra-zone specialization, despite the generally positive effects of sectoral structure. These measures of competitiveness correlate to nominal and real effective exchange rates, factors that are commonly perceived as important determinants of a country’s export competitiveness. |
| Keywords: | export competitiveness, trade performance, shift-share decomposition. |
| JEL: | F10 F14 F40 C43 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:472&r=cse |
| By: | Laura Jaramillo; Anke Weber |
| Abstract: | While fiscal conditions remain healthier than in advanced economies, emerging economies continue to be exposed to negative spillovers if global conditions were to become less favorable. This paper finds that domestic bond yields in emerging economies are heavily influenced by two international factors: global risk appetite and global liquidity. Using a novel approach, the analysis goes on to show that the vulnerability of emerging economies to these factors is not uniform but rather depends on country specific characteristics, namely fiscal fundamentals, financial sector openness and the external current account balance. |
| Keywords: | Spillovers;Bond markets;Emerging markets;Public debt;Bond Markets, Emerging Market Economies, Fiscal Deficit, Public Debt, Global Spillovers |
| Date: | 2013–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:13/264&r=cse |
| By: | Todeva, Emanuela; Etzkiwitz, Henry |
| Abstract: | Reflections on the evolution of the Triple Helix movement and the discussions at its latest conference in 2014. |
| Keywords: | Triple Helix, Intermediation, Governance, Theory and Practice |
| JEL: | H10 H42 L5 L51 O32 O38 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52834&r=cse |
| By: | Gomber, Peter; Sagade, Satchit; Theissen, Erik; Weber, Moritz Christian; Westheide, Christian |
| Abstract: | Advances in technology and several regulatory initiatives have led to the emergence of a competitive but fragmented equity trading landscape in the US and Europe. While these changes have brought about several benefits like reduced transaction costs, regulators and market participants have also raised concerns about the potential adverse effects associated with increased execution complexity and the impact on market quality of new types of venues like dark pools. In this article we review the theoretical and empirical literature examining the economic arguments and motivations underlying market fragmentation, as well as the resulting implications for investors' welfare. We start with the literature that views exchanges as natural monopolies due to presence of network externalities, and then examine studies which challenge this view by focusing on trader heterogeneity and other aspects of the microstructure of equity markets. -- |
| Keywords: | Market Structure,Competition,Fragmentation,Liquidity,Market Quality |
| JEL: | G10 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:35&r=cse |