nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒06‒28
nineteen papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Universities as sources of information: comparing the role of 'open innovation' and companies' motivations. By Massimiliano Volpi
  2. SMEs and Barriers to Eco-Innovation in EU: A Diverse Palette of Greens. By Giovanni Marin; Alberto Marzucchi; Roberto Zoboli
  3. Defacto and Deeded Intellectual Property: Knowledge-Driven Co-Evolution of Firm Collaboration Boundaries and IPR Strategy By Lynne G. Zucker; Michael R. Darby
  4. Role of Platform Providers in Service Networks: The Case of AppExchange By Sodam Baek; Kibae Kim; Jorn Altmann
  5. Competition between firms in developing and developed countries By Kimura, Koichiro
  6. An empirical examination of the R&D boundaries of the firm - a problem-solving perspective By Shaopeng Huang; Darryl Holden
  7. R&D Investment and Financial Frictions By Oscar M. Valencia
  8. Determinants of Eco-innovation from a European-wide Perspective - an Analysis based on the Community Innovation Survey (CIS). By Jens Horbach
  9. Is green knowledge improving environmental productivity? Sectoral Evidence from Italian Regions. By Claudia Ghisetti; Francesco Quatraro
  10. Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces By Giulio Cainelli; Sandro Montresor; Giuseppi Vittucci Marzetti
  11. Absorptive Capacity and Innovative Capability: An Approach to Estimation By Polterovich, Victor; Tonis, Alexander
  12. Financial decisions, market competition and firm performance: Empirical evidence for Ibero-American countries By Manuel Sánchez Valadez
  13. Does anti-competitive service sector regulation harm exporters? Evidence from manufacturing firms in Spain By Monica Correa Lopez; Rafael Domenech
  14. Do government private subsidies crowd out entrepreneurship ? By Islam, Asif
  15. Real unit labour costs in Eurozone countries: Drivers and clusters By Javier Ordóñez; Hector Sala Lorda; Hector José I. Silva
  16. Competitive Environment, Indebtedness and Asset Specificity: Evidence from Spanish Firms By Manuel Sánchez Valadez
  17. Study on the Competitiveness of the Mexican Sugar Industry By Francisco Campos-Ortiz; Mariana Oviedo-Pacheco
  18. Linking innovation investment and environmental performance: an impure dynamic public good model. By Massimiliano Corradini; Valeria Costantini; Massimiliano Mazzanti; Susanna Mancinelli
  19. Small enterprises in Indian manufacturing and inclusive growth: Search for compensatory mechanisms By Ramaswamy, K.V

  1. By: Massimiliano Volpi (Natural Environment Research Council, Polaris House, North Star Avenue, SN2 1EU, Swindon, United Kingdom.)
    Abstract: The paper investigated the role Universities play as sources of information for companies' innovation. This study compared the explanations proposed by the 'open innovation' literature with those suggested by the 'resource view' of the firm, concluding that the way 'open innovation' variables have been constructed should be questioned and the 'resource view' theory should be augmented with innovation motivations, as companies rely on universities to source knowledge not generally available within companies' technological paradigm.
    Keywords: green economy; environmental innovation; open innovation; universities.
    JEL: O32 Q55
    Date: 2014–04
  2. By: Giovanni Marin (CERIS-CNR, National Research Council of Italy, Milan.); Alberto Marzucchi (CERIS-CNR, National Research Council of Italy, Milan.); Roberto Zoboli (CERIS-CNR, National Research Council of Italy, Milan.)
    Abstract: Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and 'green strategies' by firms. In this paper, we propose a taxonomy of EU SMEs in terms of barriers to eco-innovation. The aim is to discriminate among SMEs on how they differ in terms of perception of barriers and engagement in environmental innovation, thus highlighting the need to look at eco-innovation barriers in relation to firms' attitudes, technological and organizational capabilities, and strategies. We identify six clusters of SMEs. These clusters include firms facing 'Revealed barriers', 'Deterring barriers', 'Cost deterred' firms, 'Market deterred' firms, 'Non eco-innovators' and 'Green champions'. The clusters show substantial differences in terms of eco-innovation adoption. We show that our proposed taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental innovation policies.
    Keywords: eco-innovation, barriers to innovation, firm behaviour.
    JEL: O33 Q55
    Date: 2014–04
  3. By: Lynne G. Zucker; Michael R. Darby
    Abstract: Research on intellectual property has focused on formal legally recorded rights that we call deeded, most often measured by granted patents. Meanwhile, other “defacto” IP (mainly purposive secrecy and natural excludability) has become more important because of the increasing closeness of commercial technologies to cutting edge science. A “corporate-academic” model has developed and become institutionalized over the last three decades which emphasizes attracting the best and brightest scientists, providing them with a commensurate increase in autonomy including initiation of bench-level collaborations with top university scientists in which valuable tacit knowledge is transferred in both directions. We provide suggestive evidence that both firm and university scientists learn from these collaborations, e.g., both types of scientists experience sharply higher patenting rates once they have engage in university-firm collaborations. We propose and test two indicators of adoption of the corporate-academic model, whether or not the firm has ever: (a) co-authored an article with a university scientist and (b) applied for (an eventually granted) patent with non-patent references, where these references are used importantly to cite scientific articles and other scientific materials. Both were robustly positive and statistically significant across four measures of U.S. high-tech firm success (publishing, patenting, obtaining venture capital, and going public) for six broad S&T areas (bio/chem/med, information technology, nanotechnology, semiconductors, other science, and other engineering). Star scientists publication as or with firm employees, SBIR grants received, and citation-weighted patents and articles all played comparatively supporting roles in the empirical estimates. We concluded that the most successful high-tech firms have adopted a strategy of operating near the edge of the scientific envelope where high levels of tacit knowledge provide substantial natural excludability reducing or preventing entry of imitators.
    JEL: J44 L25 L63 L64 L65 M13 O31 O32 O33 O34
    Date: 2014–06
  4. By: Sodam Baek (College of Engineering, Seoul National University); Kibae Kim (College of Engineering, Seoul National University); Jorn Altmann (College of Engineering, Seoul National University)
    Abstract: As IT technology advanced, a new style of innovation emerged, in which a leading innovation company invites end-users to its open software service platform. With respect to this type of innovation, a lot of innovation studies were performed to understand the structure of the interaction among users and the platform provider from the perspective of network science. By concentrating only on the internal mechanisms among agents, the previous studies miss to consider innovation through collective intelligence. A platform provider plays an important role in the innovation. In this research, we investigate the structure of a service network with empirical data gathered from AppExchange and discuss the role of a platform provider in innovation through collective intelligence. Our results suggest that the platform provider led the innovation in the initial period and, then, third party developers became gradually innovation leaders. Our findings are expected to re-orient the research focus from internal mechanisms to the role of platform providers.
    Keywords: Software Service Platform, Platform-as-a-Service, Network Analysis,, Open Innovation.
    JEL: D85 L14 L15 L86 O31 O32
    Date: 2014–05
  5. By: Kimura, Koichiro
    Abstract: We analyze competition in emerging markets between firms in developing and developed countries from the viewpoint of the boundaries of the firm. Although indigenous firms generally face a disadvantage in technology compared with foreign firms, they have an advantage in marketing as local firms. Moreover, they have opportunities to leave weaker fields to independent specialized firms and use lower wages. On the other hand, foreign firms also have their own advantages and disadvantages for growth. Therefore, entry conditions for indigenous firms can vary greatly depending on the situation. We classify these conditions into eight cases by developing a model and showing each boundary choice for indigenous firms.
    Keywords: Developing countries, Developed countries, Business enterprises, Foreign affiliated firm, Indigenous firms, The boundaries of the firm, Foreign firms
    JEL: F23 L22 O12
    Date: 2014–06
  6. By: Shaopeng Huang (Department of Economics, University of Strathclyde); Darryl Holden (Department of Economics, University of Strathclyde)
    Abstract: We consider, both theoretically and empirically, how different organization modes are aligned to govern the efficient solving of technological problems. The data set is a sample from the Chinese consumer electronics industry. Following mainly the problem solving perspective (PSP) within the knowledge based view (KBV), we develop and test several PSP and KNV hypotheses, in conjunction with competing transaction cost economics (TCE) alternatives, in an examination of the determinants of the R&D organization mode. The results show that a firm's existing knowledge base is the single most important explanatory variable. Problem complexity and decomposability are also found to be important, consistent with the theoretical predictions of the PSP, but it is suggested that these two dimensions need to be treated as separate variables. TCE hypotheses also receive some support, but the estimation results seem more supportive of the PSP and the KBV than the TCE.
    Keywords: Problem-solving perspective, knowledge-based view, firm boundaries
    Date: 2014–06
  7. By: Oscar M. Valencia
    Abstract: R&D intensity for small firms is high and persistent over time. At the same time, small firms are often financially constrained. This paper proposes a theoretical model that explains the coexistence of these two stylized facts. It is shown that self-financed R&D investment can distort the effort allocated to different projects in a firm. In a dynamic environment, it is optimal for the firm to invest in R&D projects despite the borrowing constraints. In addition, this paper shows that beyond a certain threshold, effort substitution between R&D and production appears. When transfers from investor to entrepreneur are large enough, R&D intensity decreases with respect to financial resources. Conditional on survival, the more innovative and financially constrained firms are, faster they grow and exhibit higher volatility. Classification JEL: O41, 031, D86
    Date: 2014–06
  8. By: Jens Horbach (University of Applied Sciences, Augsburg.)
    Abstract: Eco-innovations lead to less environmental impacts or to a reduction of energy use and are therefore crucial for climate protection. Recently, the determinants of eco-innovation activities have been widely explored for single countries but there is still a lack of country comparisons mainly because of data restrictions. In 2009, a special module on eco-innovation has been included in the Community Innovation Survey (CIS) allowing a comparison of the determinants of eco-innovation in 19 different European countries. Our analysis especially focuses on Eastern European transformation countries because the determinants of eco- innovation in these countries have not yet been systematically analyzed. Concerning the introduction of eco-innovation, the econometric analysis shows that regulation activities seem to be more important for Eastern European countries. This is especially the case for 'traditional fields'such as air, noise, soil, water, recycling or dangerous substances. Except energy saving measures, environmentally related subsidies seem to be quantitatively more important for the Eastern European countries pointing to the lower financial performance of the respective firms. Furthermore, Eastern European countries are more relying on competitors and external R&D as information sources indicating a technology transfer from West to East.
    Keywords: eco-innovation, probit models, country analysis.
    JEL: Q55 O33 C25
    Date: 2014–04
  9. By: Claudia Ghisetti (Dipartimento di Economia e Management, Università  di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Francesco Quatraro (GREDEG-CNRS University of Nice-Sophia Antipolis (France) and BRICK, Collegio Carlo Alberto (Torino).)
    Abstract: This paper provides empirical investigation of the effects of environmental innovations (EIs) on environmental performances, as proxied by the environmental productivity (EP) measure. We focused on sectoral environmental productivity of Italian Regions by exploiting the Regional Accounting Matrix including Environmental Accounts(Regional NAMEA). Patent applications have been extracted by the Patstat Database and assigned to the environmental domain by adopting three international classifications of green technologies: the WIPO IPC green inventory, the European Patent Office climate change mitigation technologies classification (Y02) and the OECD ENV-Tech indicators. Econometric results outline that regions-sectors characterized by higher levels of green technologies (GTs) are actually those facing better environmental performance. These positive effects directly stem from the introduction of GT in the same sector, as well as from the introduction of GT in vertically related sectors.
    Keywords: environmental performance, regional NAMEA, environmental innovation, green technologies, vertical relatedness.
    JEL: O33 Q53 Q55 Q56 R11
    Date: 2014–05
  10. By: Giulio Cainelli (University of Padova); Sandro Montresor (University of Bologna); Giuseppi Vittucci Marzetti (University of Milano - Bicocca)
    Abstract: The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms.
    Keywords: Firm exit, Localization, Spatial agglomeration, Specialization, Variety. Classification-JEL: R11, R12, L11, G20.
    Date: 2013–10
  11. By: Polterovich, Victor; Tonis, Alexander
    Abstract: The concepts of absorptive capacity and innovative capability have been introduced to describe abilities of a country to imitate and, accordingly, to create more advanced technologies. In this paper we suggest new indicators of these two abilities. To calculate them, we develop an endogenous growth model and an estimation procedure that combines both calibration and econometric approaches. The choice of parameters is based on WDI, ICRG and Barro–Lee statistical data for the period of 1981-2005. As a result, the model generates trajectories of 63 countries and, for most of them, gives qualitatively correct pictures of their evolution dependently on their initial states as well as on their absorptive capacity and innovative capability indicators. In particular, club convergence is demonstrated. The calculations affirm our hypotheses about shapes of absorptive capacity and innovative capability dependence on the relative productivity level, human capital, institutional quality and some other factors.
    Keywords: imitation, innovation, catching-up development, foreign direct investment, human capital, equilibrium, evolution of countries distribution
    JEL: O33 O41 O43 O57
    Date: 2014–06–25
  12. By: Manuel Sánchez Valadez
    Abstract: Economic literature had shown the existence of the interrelationship between the financial decisions of the firms and their competitive decisions; either by convenience or by data availability, most of empiric papers addressed separately the influence of both kinds of decisions over firm performance. With it, this paper through a cross-section model, which uses information of around 3,900 enterprises in 14 Iberoamerican countries, explores jointly the possible effects of both kinds of decisions of the firms (financial and competitive) over their performance. The results suggest the existence of differences in the relationships between variables accordingly the market competition intensity. Also the results suggest that the financial decisions of the firms could be used as an additional tool of the competitive strategy of the firms.
    Keywords: Indebtedness, trade credit, competition, firm performance
    JEL: G32 L20
    Date: 2013–06
  13. By: Monica Correa Lopez; Rafael Domenech
    Abstract: In a panel study of firm-level data from Spanish manufacturers, we show that reducing anti-competitive regulation in the provision of upstream services has a positive and sizeable effect on the volume of exports of downstream firms. Our estimates indicate that deregulation is very beneficial for the export performance of large corporations, especially if they are foreign-owned multinationals, while the evidence for SMEs is much weaker. Hence, firm characteristics matter for the connection between regulation and exports. Simulation exercises suggest that large firms increased their volume of exports by an average of 49% as a result of deregulation, such that the industries that benefited the most were typically more dependent on service inputs. The improvements in the regulatory framework of transportation services and energy provision that took place over the 1990s and 2000s in Spain had particularly strong effects on the volume of foreign sales.
    Keywords: Exports, Service regulation, Margins of trade, Firm size
    JEL: F14 L43 F23 D24
    Date: 2014–06
  14. By: Islam, Asif
    Abstract: Although several studies have found a negative relationship between government spending and entrepreneurship, much debate remains regarding the components of government spending responsible for this association. This paper contributes to the literature by specifically exploring the relationship between government private subsidies and entrepreneurship. By combining macroeconomic government spending data with individual level entrepreneurship data, the paper finds a negative association between the share of private subsidies and entrepreneurship. However, findings are less straightforward when the analysis delves deeper into the components of private subsidies and their association with different kinds of entrepreneurship.
    Keywords: Urban Economics,Taxation&Subsidies,Economic Theory&Research,Emerging Markets,Education for the Knowledge Economy
    Date: 2014–06–01
  15. By: Javier Ordóñez (Departament d’Economia, Universitat Jaume I de Castelló); Hector Sala Lorda (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Hector José I. Silva (School of Economics, Keynes College, University of Kent,)
    Abstract: We examine the trajectories of the real unit labour costs (RULCs) in a selection of Eurozone economies. Strong asymmetries in the convergence process of the RULCs and its components —real wages, capital intensity, and technology— are uncovered through decomposition and cluster analyses. In the last three decades, the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) succeeded in reducing their RULCs by more than their northern partners. With the exception of Ireland, however, technological progress was weak; it was through capital intensification that periphery economies gained efficiency and competitiveness. Cluster heterogeneity, and lack of robustness in cluster composition, is a reflection of the difficulties in achieving real convergence and, by extension, nominal convergence. We conclude by outlining technology as the key convergence factor, and call for a renewed attention to real convergence indicators to strengthen the process of European integration.
    Keywords: Real unit labour costs, Eurozone, Real wages, Capital intensity, Technology
    JEL: F43 O47 O52
    Date: 2014–06
  16. By: Manuel Sánchez Valadez
    Abstract: In the firm's competitive strategy act together their financial decision and their decisions in the product markets. Even if in the last three decades the theoretical and empirical literature has growth, still are topics few explored. One of them is the relationship between firm's asset specificity, as a characteristic of the competitive environment, and their indebtedness as competitive tool. This paper tries answer if additionally to the level of specificity in the firm's assets the corporations use their indebtedness as another tool in their competitive strategy. The results show that the asset specificity influences in different way the firms' debt, the effect differs accordingly at the debt' maturity and the competitive environment faced.
    Keywords: Asset specificity, Indebtedness, Competitive strategy
    JEL: G32 L10
    Date: 2013–10
  17. By: Francisco Campos-Ortiz; Mariana Oviedo-Pacheco
    Abstract: In this paper, we study various key structural features of sugarcane production and sugar mills in Mexico. Regarding the production of sugarcane: (a) we document a U-shaped relationship between the size of sugarcane cultivation plots and their yield, and show suggestive evidence that this relationship is driven by the more intensive use of inputs in smaller and larger plots relative to those of medium size; (b) we argue that there are factors that complicate the functioning of the land market; and (c) we present evidence refuting the conjecture that the mechanism used to determine payments for sugarcane affects negatively the quality of this crop. With respect to sugar mills, we find that those mills that are able to generate electricity more efficiently tend to observe higher returns in sugar production.
    Keywords: Sugar, Sugar Industry, Competitiveness, Sugarcane, Plot Yield, Sugar Mill Efficiency
    JEL: D23 D24 L66 Q1
    Date: 2013–11
  18. By: Massimiliano Corradini (Dipartimento di Economia, Università  di Roma Tre); Valeria Costantini (Dipartimento di Economia, Università  di Roma Tre and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Massimiliano Mazzanti (Dipartimento di Economia e Management, Università  di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.); Susanna Mancinelli (Dipartimento di Economia e Management, Università  di Ferrara and SEEDS - Sustainability Environmental Economics and Dynamic Studies.)
    Abstract: This paper develops a theoretical model in order to study how investment decisions in innovation taken by a single agent are influenced by environmental externalities produced by investment decisions taken by other agents. The model acts in a dynamic framework, where knowledge stock represents the capital good on which investment decisions are taken over time. Knowledge stock is considered as an impure public good which results in both public and private benefits. We first show that the reaction function between one representative agents' investments in innovation and the other agents' investments in the public characteristic of the impure public good has a positive slope under general conditions. We also find that its sensitiveness is affected by the elasticity of substitution in the benefit function as well as by the degree of complementarity between public and private characteristics.
    Keywords: impure public good, environmental externality, innovation.
    JEL: D21 H41 O33 Q53
    Date: 2014–04
  19. By: Ramaswamy, K.V (Indira Gandhi Institute of Development Research; Institute of Economic Growth)
    Abstract: Employment growth in household and small enterprises in Indian manufacturing in 2000s is analysed in the context of inclusive growth. Analysis is based on the results of establishment surveys of unorganized manufacturing and registered manufacturing for the years 2000-01, 2005-06 and 2010-11. The employment share of household enterprises was found to have declined across industries and across states of India with the exception of Gujarat and Delhi. Employment growth in small enterprises defined as those with less than 50 workers in the non-household segment was observed to be positive but insufficient to compensate for the decline of household employment. The employment share of small enterprises was not found to have improved during the years 2001 to 2011 in the States with higher per capita NSDP. This calls for policy initiatives that encourage new entry and growth of employment in existing small enterprises.
    Keywords: Employment, Inclusive growth, Small enterprises, Manufacturing
    JEL: J23 O25 L16
    Date: 2014–06

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