nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒08‒02
thirty-one papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The unequal effect of India's industrial liberalization on firms' decision to innovate: Do business conditions matter? By Bas M.; Paunov C.
  2. Cooperation between Russian research organizations and industrial companies: factors and problems By Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
  3. The role of proximity in retrospective: organizations, ICT and human resources in Italian traditional districts’ firms. By Paolo Seri
  4. Successive leadership changes in the regional jet industry By Vertesy D.
  5. Regional structural change and small firms’ adaptabilities: Evidence from Italian firm-level data. By Paolo Seri; Tommaso Ciarli
  6. Developing shared product platforms during a merger: The Fiat-Chrysler case By Anna Cabigiosu; Francesco Zirpoli; Markus Becker
  7. The knowledge impact of new decentralized universities: an empirical study on Italy. By Paolo Seri
  8. Organisational Capabilities and their Influence on Strategic Performance in Real Estate Development By Sreckovic, Marijana
  9. Does Rising Import Competition Harm Local Firm Productivity in Less Advanced Economies? Evidence from Vietnam's Manufacturing Sector By Tinh Doan; Son Nguyen; Tuyen Tran; Huong Vu; Steven Lim
  10. International R&D spillovers and unobserved common shocks By Diego-Ivan Ruge-Leiva
  11. La aparente revolución del emprendimiento en Chile. Una perspectiva espacial. By Miguel Atienza; Marcelo Lufin; Gianni Romani
  12. Export diversity or focus? What strategy is best for first-time internationalizing SMEs from an emerging market? By Desislava Dikova; Andreja Jaklic; Anze Burger; Aliaz Kuncic
  13. The Significance of Business Exit for Future Entrepreneurial Activity By Albiol, Judit
  14. The Management of Organisations as a Target for Productivity Gains in Australia: Intellectual Assets By Christina Boedker; Kieron Meagher; Richard Vidgen; Julie Cogin; Jan Mouritsen
  15. Rebuilding Business Premises Versus Firm Relocation By Louw, Erik
  16. Cognitive capital, governance, and the wealth of nations By Kodila-Tedika, Oasis; Rindermann, Heiner; Christainsen, Gregory
  17. Towards the societal system of innovation: The case of metropolitan areas in Europe By Turkeli S.; Wintjes R.J.M.
  18. Why firms avoid cutting wages : survey evidence from European firms By Du Caju, Philip; Kosma, Theodora; Lawless, Martina; Messina, Julian; Room, Tairi
  19. Impact of socioeconomic characteristics in Brazilian real estate market choices: a case study in the city of Recife-PE, Brazil. By -Leão-, Souza; de, Fernando pontual; ,; Lima, Edgard Leonardo N.
  20. Operational scales, sources of finance, and firms’ performance: evidence from Vietnamese longitudinal data By Quan Hoang Vuong
  21. Preference-based Accommodation Strategy - A pilot study in scheduling and planning at the Delft University of Technology By Valks, Bart; Arkesteijn, Monique H.; Binnekamp, Ruud; Barendse, Peter; de Jonge, Hans
  22. Efficiency of the Services Sector: a Parametric Approach By Gisela Di Meglio; Stefano Visintin
  23. To cluster or not to cluster – post natural disaster relocation decisions of SMEs By Levy, Deborah; Cooper-Thomas, Helena; Morrish, Sussie; Ballantine, Paul
  24. Creating Public Value through Social Housing Programs. Some Insights from Italian Local Governments By Vermiglio, Carlo
  25. Technological Development of Energy-Efficient Construction and Effect on Project Profitability By Zalejska-Jonsson, Agnieszka; Lind, Hans
  26. Sponsor, Corporate Governance and Asian REITs Performance By Prima, Annisa Dian; Stevenson, Simon; Wyatt, Peter
  27. International tourism in Italy (1997-2012) By Andrea Alivernini; Emanuele Breda; Eva Iannario
  28. The value of energy efficiency in the real estate market of Northern Italy By Bonifaci, Pietro; Copiello, Sergio
  29. Spillover effects of infrastructure spending By Nanda, Anupam; Yeh, Jia-Huey
  30. Actor Network Theory as a tool to understand the sustainable use of the historic built environment for the provision of commercial hospitality property By Rountree, Tanya; Elsmore, Ian
  31. Social Networks on the Web in Real Estates in Portugal By Florentino, Teresa; Casaca, Joaquim

  1. By: Bas M.; Paunov C. (UNU-MERIT)
    Abstract: This paper examines the heterogeneous impact of industrial liberalization policy, the dismantling of the License Raj in India, on firms innovation performance. Our results show that larger and more productive firms in liberalized industries were more likely to take up RD while the smallest and least efficient firms were less likely to do so. We also show that this inequality of effects was strongest in economically less developed Indian states and where financial development and the knowledge base are weaker. This suggests business conditions shape heterogeneous impacts of liberalization policies to the advantage of initially larger and more efficient firms.
    Keywords: Firm Behavior: Empirical Analysis; Industrialization; Manufacturing and Service Industries; Choice of Technology; Industrial Policy; Innovation and Invention: Processes and Incentives;
    JEL: O25 O14 O31 D22
    Date: 2014
  2. By: Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
    Abstract: The study is focused on the cooperation of Russian companies with research organizations in implementing R&D projects during technological innovation. Taking into account behavioral changes, authors carry out a micro-level analysis based on empirical data of executive survey of over 600 Russian industrial firms (2011—2012) and about 350 research organizations and universities (2012). The authors emphasize the key factors of firms’ demand for outsourcing R&D reveal the main barriers to the development of university-industry cooperation and their particularities for different cooperation actors. The analysis shows that there is a positive relation between the size of a company and R&D outsourcing. As for the factor of age, the highest cooperation activity of Russian firms is observed among enterprises founded over 20 years ago. As far as concernes cooperation activity of research organizations, large ones are significantly more likely to cooperate with business. A common prerequisite for research organizations' R&D cooperation with business is sufficient academic ranking. Business and science evaluate differently various obstacles to effective cooperation. For firms, the main problems are the inflated costs of national R&Ds, insufficient research organizations’ orientation at company needs, and low quality of developments. As for representatives of research organizations, they mention as barriers primarily the lack of companies' receptivity to innovation and inadequate information about promising developments. Businesses are more optimistic about cooperation with science if they already have a relevant experience of interaction. In the case of research organizations we observe a different pattern: most problems seem more significant to organizations conducting R&D in business interests.
    Keywords: innovations; university-industry cooperation; barriers to research and development; firm behavior
    JEL: L20 O31 O32
    Date: 2014–07
  3. By: Paolo Seri (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: The existence of strong complementarities between ICT diffusion, investment in human capital and organizational innovations has been recently stressed both by theoretical and empirical literature on industrial organization and economic growth. For many scholars, one of the reasons of the delay of Italian industries in addressing rising global competitiveness and improving productivity can be traced back to the inability to create the right environment for the synergetic coevolution of the three above-mentioned variables. This paper tests the hypothesis that the coevolution within the firm of the three variables, could have been influenced by the belonging of the firms to industrial districts’ environments. In particular it controls whether firms which have made more use of proximity in their activity express retards or even “lock-in” phenomena in organizational innovations with respect to the two other complementary variables. After discussing the issue of coevolution for the three variables and the role that district environments can play for the formation of phenomena of organizational inertia, we test the hypothesis of co-evolution between organisations, ICT, and human resources through a survey of 223 ‘district’ and ‘non-district’ Italian small firms.
    Keywords: Coevolution, ICT, Human Capital, Organizational Change, Geographical Proximity.
    JEL: R11 D21 O30
    Date: 2014
  4. By: Vertesy D. (UNU-MERIT)
    Abstract: This study examines leadership dynamics in the regional jet manufacturing industry from the 1980s onwards. With the help of leading products aircraft or aircraft family, British Aerospace BAe, Fokker, Bombardier and Embraer consecutively took the leadership in terms of new deliveries. In order to understand the co-evolution of demand for aircraft, technology and industrial structure, the paper applies a framework for innovation system dynamics that investigates in detail the preconditions for growth, windows of opportunity and strategic response of firms. In the first major leadership change, BAe and Fokker lost their leadership to Bombardier, which was the first to respond to a combination of windows of opportunity more efficient jet engine technology, cheaper oil prices, market liberalization and the expansion of regional services boosted by the introduction of scope clauses that created a niche for the 50-seat market. Bombardiers radical innovation, the business-jet based CRJ200 became the leading product of the 1990s. A second leadership change occurred in 2005, as new demand and regulatory windows increasing oil prices, more competitive market, fluctuating economy, relaxing scope clauses opened new opportunities for the 70-120 market segment to the detriment of both the 50-seat regional and 150-seat large civil jet markets. The Brazilian Embraer, with its already proven design, manufacturing and marketing capabilities in the regional jet industry was the first to make a strategic move and introduce a new product line, the ERJ-170/190 specifically intended for this market. The fate of failed challengers and past leaders points to the importance of preconditions, timing of windows of opportunity, speedy strategic response by companies and a proper evaluation of future demand. The long lead time between development and entry into serial production necessitates favourable demand windows both during the development and the serial production phases in order to turn a new product into a leading product, thus timing of response was found to be critical not only for gaining leadership, but also for staying in the market and recovering sunk costs.
    Keywords: Multinational Firms; International Business; Business Objectives of the Firm; Firm Organization and Market Structure; Automobiles; Other Transportation Equipment; Industrialization; Manufacturing and Service Industries; Choice of Technology; Management of Technological Innovation and R&D; Technological Change: Government Policy;
    JEL: F23 L21 L22 L62 O14 O32 O38
    Date: 2014
  5. By: Paolo Seri (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Tommaso Ciarli (SPRU - Science Policy Research Unit)
    Abstract: The paper analyzes both internal (to the firm) and external (geographical) determinants and obstacles to small firms’ relational and organizational adaptability in mature Italian industries. While presenting a review of the literature accounting for the two dominant typologies of adaptation in Italian mature industries, the chapter emphasizes the lack of systematic analysis on the influences of negative agglomeration externalities on both typologies of small firms’ adaptability. The empirical section distinguishes between district and non-district firms and controls for internal and external determinant to firms adaptabilities. Some interesting results follows regarding the influences played by Italian industrial districts.
    Keywords: Regional Structural Change, Firms Behaviour, Cognitive Anchoring.
    JEL: R11 D21 D22
    Date: 2014
  6. By: Anna Cabigiosu; Francesco Zirpoli; Markus Becker
    Abstract: This paper, building on R&D integration and improvisation literature, explores how firms organize to jointly develop common product platforms if their integration process is still in progress. In order to address our exploratory research question, we draw on a unique set of empirical data gathered during the Fiat-Chrysler R&D integration process and during the development of their first shared product platform. We show that, how due to fierce competition on time in the industry, the two companies did not have time to complete the planned R&D integration. As a consequence, the first shared platform development project represented the real locus of technological, knowledge, and organizational integration between the two firms. In line with the R&D integration literature, this paper identifies a set of planned integration mechanisms: a centralized R&D area, two teams that mirror each other, integrator roles and shared technical norms. This organization was designed to help Fiat and Chrysler exploiting their complementarities. Furthermore, building on the improvisational literature, we show that the planned organization did not suffice: interstices between the two firms exist and planning and improvisation are complementary. Improvisation should be built upon a minimum structure and firms willing to accelerate their integration process can rely upon NPD activities.
    Keywords: R&D integration, improvisation, NPD organization, merger and acquisitions
    JEL: O32
    Date: 2014–07
  7. By: Paolo Seri (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: The geographical diffusion of universities has been recently incentivized in Europe by the growing relevance attributed to them as a driver of local development and as a source of learning for firms. However, the decision processes about the location of the new universities and the design of their study programs are not informed by any clear scientific guidelines. This paper assesses an aspect of the ‘knowledge impact’ of such phenomena by measuring the additional human capital produced, absorbed and coherently utilized by the local production systems in which the new universities have been created. Since universities do not track the location of their graduates in a systematic way, an original survey was conducted among all the graduates of twelve new decentralized universities in the Marches region. The analysis demonstrates that the geographical diffusion of new universities within the region produces a very small incremental contribution in terms of the overall production of graduates. We found diverging results concerning the specific cases and tested for the determinants of decentralized universities’ effectiveness in terms of their contributions to the local learning processes.
    Keywords: University, Knowledge impact, Local development.
    JEL: I23 R11 O30
    Date: 2014
  8. By: Sreckovic, Marijana
    Abstract: In today's dynamic and uncertain environments organisations are facing constant challenges in terms of achieving and maintaining their competitive advantage. These new circumstances are compelling organizations to analyse, integrate, build and reconfigure their resources and organisational capabilities in order to sustain and improve their strategic performance. The purpose of this paper is to investigate the role of organisational capabilities (OC) for the strategic performance of real estate development companies, which are mainly project-based organisations operating in dynamic and uncertain environments. Before empirically exploring the relationship between organisational capabilities and firm performance, a conceptual model for organisational capabilities based on the resource-based-view (RBW) is developed and applied in Real Estate. Based on the developed OC-model it is hypothesised that those certain organisational capabilities, which are embedded in the organization itself and developed through projects and people capabilities, influence the strategic performance of real estate development companies and thus lead to competitive advantage and higher firm performance. As real estate developers operate in highly dynamic and uncertain markets, our empirical model also introduces the control variable environmental uncertainty which, depending on the target market, influences further the choice of strategy. The model is empirically evaluated by using data from real estate development companies in Austria, Germany and Switzerland and tested by applying hierarchical regression analysis.
    Date: 2013
  9. By: Tinh Doan (University of Waikato); Son Nguyen (VNU University of Economics and Business); Tuyen Tran (VNU University of Economics and Business); Huong Vu (University of Waikato); Steven Lim (University of Waikato)
    Abstract: This paper examines whether rising import penetration has an effect on the productivity of domestic firms. The study uses data on a 10-year unbalanced panel of firms in the manufacturing sector in Vietnam from 2000 to 2009. Panel and instrumental variable methods are used to control for firm heterogeneity and endogeneity of import penetration. We find significantly negative effects of import competition on local firms’ productivity. Further investigation on the basis of firm size and industry technology levels shows that SMEs are more adversely affected, but that industry technology level does not matter.
    Keywords: import penetration; productivity; Vietnam
    JEL: F19 L25 P45
    Date: 2014–07–11
  10. By: Diego-Ivan Ruge-Leiva
    Abstract: This paper investigates the effects of the domestic and foreign R&D weighted by bilateral imports on productivity accounting for the heterogeneous impact of unobserved micro and macroeconomic common shocks, which are modeled in a multifactor error structure. Using a panel of 50 economies from 1970-2011, I find that when unobserved common shocks are not regarded, as has been done by the literature in this area, estimates of domestic R&D and foreign R&D might be biased and inconsistent. Once unobserved common shocks are accounted for, by allowing for heterogeneous technology coefficients, significant estimates become more sizable, consistent and not seriously biased in most cases. However, these estimates might be capturing not only returns to domestic R&D and trade-related knowledge spillovers, but also unobserved common spillovers and other effects. This indicates that knowledge spillovers and effects of unknown form cannot be easily separated. Therefore, unobserved common shocks should be considered when estimating returns to domestic R&D and international R&D spillovers.
    Keywords: Productivity, Spillovers, Cross-Section Dependence, Unobserved Common Shocks.
    Date: 2014–07
  11. By: Miguel Atienza (IDEAR - ORDHUM - Department of Economics, Universidad Católica del Norte - Chile); Marcelo Lufin (IDEAR - ORDHUM - Department of Economics, Universidad Católica del Norte - Chile); Gianni Romani (Departamento de Administración, CEMP, Universidad Católica del Norte - Chile)
    Abstract: The promotion of entrepreneurship has become one of the main policies of the Chilean development strategy in the last decade and has been considered as a means to improve local development. The government declared as a success the creation of 250,000 new firms in the last four years. This article uses an occupational definition of entrepreneurship to analyze the scope of this apparent revolution and its location patterns in 2009 and 2011 with information from the Socioeconomic Characterization Survey (CASEN). The results show that it is not appropriate to talk about an entrepreneurship revolution in Chile. Furthermore, the analysis of spatial patterns and entrepreneurship clusters reveals high heterogeneity among local areas according to the characteristics of their entrepreneurs. In this context, national entrepreneurship policies exclusively oriented to the increase in the number of firms could perpetuate spatial inequality.
    Keywords: entrepreneurship, location, regional and local development.
    Date: 2014–07
  12. By: Desislava Dikova; Andreja Jaklic; Anze Burger; Aliaz Kuncic (Institute for International Business/WU Vienna; Faculty of Social Sciences/University of Ljubliana; Faculty of Social Sciences/University of Ljubliana; Economic Development and Globalization Division/United Nations Economic and Social Commission for Western Asia)
    Abstract: The question how much internationalization is beneficial for emerging-market small and medium enterprises (EM SMEs) remains challenging for both international business (IB) scholars and managers. We explore export strategies of first time exporters and focus on the scope of EM SMEs internationalization activities. We tackle the question whether more focused or more diversified internationalization through exporting is beneficial for EM SMEs. We examine the impact of foreign market (geographic) diversification, product diversification and export intensity on firm performance of an entire population of EM SMEs from an emerging east European economy. In addition, we test whether a complex export strategy - an export strategy of simultaneous product- and geographic export diversification - is beneficial for EM SMEs. We use a panel population data of first time Slovenian exporters in the period 1994-2012. We find that diversified internationalization, both in terms of product- and foreign market diversity, and export intensity significantly improve productivity and sales performance for EM SMEs. Furthermore, EM SMEs with complex export strategies enjoy significantly improved productivity and sales performance.
    Keywords: first-time exporters, export performance, export diversification
    Date: 2014–07
  13. By: Albiol, Judit
    Abstract: Purpose: The purpose of this paper is to analyse the impact of business exits on future dimensions of entrepreneurial activity at the macroeconomic level. Design/methodology/approach: This research uses the Global Entrepreneurship Monitor (GEM) data for 41 countries and the Generalized Method of Moments (GMM) to carry out the analysis. The paper differentiates the effect of the two components of total entrepreneurial activity, and the two motivations for it – opportunity and necessity entrepreneurship. Findings: The results presented here show a positive and significant effect of the coefficient associated with exits in all models. This means that the levels of entrepreneurial activity exceed business exits. The robustness of the models are tested, including other variables such as the fear of failure, the Gross Domestic Product, role models, entrepreneurial skills and the unemployment variables. The main hypothesis which stated that at national level business exits imply greater rates of opportunity-driven entrepreneurship is corroborated. Originality/value: One would expect that unemployment rates would imply higher levels of necessity entrepreneurship. However, results show that unemployment rates do in fact favour opportunity entrepreneurship levels. This could be due to those government policies that are aimed at promoting entrepreneurship through the capitalization of unemployment to be totally invested in a new start-up. To the best of our knowledge, this is the first panel data study to link previous exit rates to future dimensions of entrepreneurial activity. Keywords: Entrepreneurship, business exits, social values, industrial organization Paper type: Research paper
    Keywords: Emprenedoria, Èxit en els negocis, Empreses -- Aspectes socials, Organització industrial, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2014
  14. By: Christina Boedker; Kieron Meagher; Richard Vidgen; Julie Cogin; Jan Mouritsen
    Abstract: Discussion around total factor productivity gains for the Australian Economy often focuses on infrastructure bottlenecks, technology adoption, competition and labour market flexibility. Although a potential area for gains, management is typically omitted from the public policy debate because it is considered too hard to quantify and as a result there is no concrete case for improvement. In this paper we describe our approach to measuring management as a productivity driver in service firms, developed as part of a study commissioned by the Australian Commonwealth Government. Management, as measured by internal stocks of intellectual assets are significantly related with higher productivity: our analysis predicts that a low performing firm could realise an increase in productivity of up to 13.3% if it were to improve its intellectual asset. However, after controlling for intellectual assets competition and ownership structure are not significant determinants of firm level productivity. We also discuss policy initiatives available to policy makers.
    Keywords: productivity, service industries, public policy, intellectual assets, management
    Date: 2014–07
  15. By: Louw, Erik
    Abstract: One way to make land use more sustainable is to re-use vacant buildings. These building can be renovated and used again or converted to another use type. It would even more sustainable if these buildings never became vacant, which means that firms stay longer in their building. The literature suggest that the main reason why firms relocate is to expand rather than rationalise their operations. The same literature also suggest that firms hardly relocate because of characteristics of their location but foremost due to factors related to their premises. The hypothesis is therefor that renovation and/or expansion of buildings on site (together called rebuilding) may prevent firms from moving to new greenfield sites.To investigate this hypothesis we use a survey among 17,000 firms in two regions in het Netherlands which was conducted by the Chamber of Commerce. The response rate was 31%. The results of the survey show that 7% of the firm had plans to renovate their premises, whereas 9% had plans to relocate.The analysis of the survey confirms previous research on factors influencing relocations, but also show that firm with can expand their premises on site, more often have rebuilding plans than firms which cannot expand on site. On the other hand firms with relocation plans have significantly less possibilities to expand on site. About half of the firms with rebuilding plans prefer rebuilding over relocation because it is cheaper or quicker to realise than a relocation.Overall the results of the analysis show that rebuilding can be seen as an alternative to relocation if certain conditions are met. Two important planning related conditions are the physical possibilities to expand on site and land use plans that allow rebuilding. Another conditions is the type of industry; retail and manufacturing firms are more inclined to rebuild their premises than firms in other sectors.
    Date: 2013
  16. By: Kodila-Tedika, Oasis; Rindermann, Heiner; Christainsen, Gregory
    Abstract: Good governance or “government effectiveness” (per the World Bank) is seen as a critical factor for the wealth of nations insofar as it shapes political and economic institutions and affects overall economic performance. The quality of governance, in turn, depends on the attributes of the people involved. In an analysis based on international data, government effectiveness was related to the cognitive human capital of the society as a whole, of the intellectual class, and of leading politicians. The importance of cognitive capital was reflected in the rate of innovation, the degree of economic freedom, and country competitiveness, all of which were found to have an impact on the level of productivity (GDP per capita) and wealth (per adult). Correlation, regression, and path analyses involving N=98 to 201 countries showed that government effectiveness had a very strong impact on productivity and wealth (total standardized effects of =.56-.68). The intellectual class’s cognitive competence, seen as background factor and indicated by scores for the top 5 percent of the population on PISA, TIMSS and PIRLS, also had a strong impact (=.50-.54). Cross-lagged panel designs were used to establish causal directions, including backward effects from economic freedom and wealth on governance. The use of further controls showed no independent impacts on per capita wealth coming from geographical variables or natural resource rents. Finally, we discuss background factors and ways in which governance might be improved.
    Keywords: government effectiveness, human capital, cognitive ability, intelligence, economic freedom, innovation, competitiveness
    JEL: D73 I2 I20 O43 O55
    Date: 2014–07–25
  17. By: Turkeli S.; Wintjes R.J.M. (UNU-MERIT)
    Abstract: Innovation serves many purposes. In this paper we study new varieties of innovation and innovation policy which address societal challenges in the largest cities in Europe. These metropolitan areas consistently show resounding characteristics in terms of multiplicities of innovation, governance and societal challenges. They serve as living labs and lead-markets for solutions to societal challenges. The identified and analysed cases of social innovation initiatives in these metropolitan areas organize for new resourceful interactions between the demand for social innovations and the capacities to generate multi-domain solutions. It is the context dependencies of these cases of social innovation that open up diverse interest-based possibilities. In this daily life-world context a multiplicity of actors select local-interactive processes. The broad range of actors includes government research labs, public sector, creative and other service industries, social entrepreneurs, intrapreneurs, student platforms, and profession-linked open communities. Such interactions represent emerging transformative capabilities for addressing societal challenges, turning local-societal political/administrative; economic/ financial; technological/social solutions into multi-level regional, national, global opportunities, and a wider range of benefits. In metropolitan areas, these multi-domain and multi-level potentials are activated by organizing societal synergies between social participative creativity and economic innovative efficiency for any level. Existing concepts of innovation systems do not capture and explain these unique societal synergies, because they only focus on one specific type of innovation and one specific type of sectoral, technological, socio-technical, social or spatio-organizational national, regional system of innovation. It requires acknowledging that innovation and innovation systems are not only instrumental for economic benefits in a system-technocratic sense, but also for addressing societal challenges in a grassroots-communicative sense. Therefore we construct an overarching yet deepened concept the societal system of innovation, a theoretical-analytical framework based on empirical background. We do not add yet another type of innovation system, but acknowledge the overlaps and linkages between the existing types of innovation systems. The existing types are the special cases of the societal system of innovation with respect to the presence/absence of organizations, where organizational rules and interactional play between them. Over-embedded or lacking interactions among these special-case innovation systems cannot capture evolving contextuality life-world for innovation. This shortcoming provides a complementary policy rationale for being critical in the organization of widened interactions S2S, system-to-system; G2G, grassroots-to-grassroots and deepened contextuality S2G, systems-to-grassroots; and G2S, grassroots-to-systems under the concept, instruments, measurement/assessment of the societal system of innovation.
    Keywords: Technological Change; Research and Development; Intellectual Property Rights: General; Technological Change: Government Policy; Economywide Country Studies: Europe;
    JEL: O30 O38 O52
    Date: 2014
  18. By: Du Caju, Philip; Kosma, Theodora; Lawless, Martina; Messina, Julian; Room, Tairi
    Abstract: Firms very rarely cut nominal wages, even in the face of considerable negative economic shocks. This paper uses a unique survey of fourteen European countries to ask firms directly about the incidence of wage cuts and to assess the relevance of a range of potential reasons for why the firms avoid cutting wages. The paper examines how firm characteristics and collective bargaining institutions affect the relevance of each of the common explanations put forward for the infrequency of wage cuts. Concerns about the retention of productive staff and a lowering of morale and effort were reported as key reasons for downward wage rigidity across all countries and firm types. Restrictions created by collective bargaining were found to be an important consideration for firms in Western European (EU-15) countries but were one of the lowest ranked obstacles in the new EU member states in Central and Eastern Europe.
    Keywords: Labor Markets,Labor Policies,Microfinance,Labor Management and Relations,Income
    Date: 2014–07–01
  19. By: -Leão-, Souza; de, Fernando pontual; ,; Lima, Edgard Leonardo N.
    Abstract: The objective of this paper is to analyze the impact of socioeconomic characteristics of neighborhoods in Recife-PE, Brazil, that determines the preferences of real estate market developers. To achieve the proposal it was used a cluster analysis in the database of ITBI (Tax on Transfer of housing Property), gotten with a Recife City Hall. The socioeconomic characteristics of neighborhoods are included as input variables jointly with the real estate market performance indicators of each neighborhood. The result indicates that the neighborhoods with high level values of socioeconomic indicators present more efficiency to real estate investments of promoters. There is a tendency to a concentration of real estate activities in the reach places of the city, even with other places that have appropriate geomorphologic characteristics and low land prices. The study presents a real estate investment map in the city territory. The real estate market expansion doesn´t occupies these areas. This implies in great urban problems, like difficult traffic mobility and deficient urban services (water supply, sanitation system, and others).
    Date: 2014
  20. By: Quan Hoang Vuong
    Abstract: This study investigates a longitudinal dataset consisting of financial and operational data from 37 listed companies listed on Vietnamese stock market, covering the period 2004-13. By performing three main types of regression analysis - pooled OLS, fixed-effect and random-effect regressions - the investigation finds mixed results on the relationships between operational scales, sources of finance and firms' performance, depending on the choice of analytical model and use of independent/dependent variables. In most situation, fixed-effect models appear to be preferable, providing for reasonably consistent results. Toward the end, the paper offers some further explanation about the obtained insights, which reflect the nature of a business environment of a transition economy and an emerging market.
    Keywords: Longitudinal data analysis; firm performance; operational scales; sources of finance; transition economy; emerging markets; Vietnam
    JEL: G32 L25 M10 P27
    Date: 2014–07–17
  21. By: Valks, Bart; Arkesteijn, Monique H.; Binnekamp, Ruud; Barendse, Peter; de Jonge, Hans
    Abstract: One of the long-standing issues in the field of corporate real estate management is the alignment of an organisation’s real estate to its corporate strategy. Despite extensive research, existing approaches have not had much uptake in practice and fall short in a number of aspects (H 2011). In 1995, Dutch universities became owners of their real estate, and since then they are confronted with the same issue of alignment. Investments in real estate need to be weighed against investments in education or research programs, making campus management more challenging with more stakeholders, opportunities and threats to consider. Furthermore, this allocation of resources is put under pressure because of decreasing public involvement and funding for Dutch universities. As a result, campus managers have indicated that they need better information and tools to support campus decision making. (DH 2011)To enhance real estate decision making we tested the Preference-based Portfolio Design methodology (PBPD) (A&B 2012) in a gaming context. In this methodology decision makers define criteria and iteratively test and adjust these criteria by designing new real estate portfolios. The new portfolio with the highest overall preference is suggested as the portfolio which optimally aligns real estate to corporate strategy. This process is termed ‘Preference-based Accommodation Strategy’ (PAS). PAS is tested at the Delft University of Technology (DUT) for its real estate portfolio of lecture halls. New portfolio design are made based on 1) stakeholder preferences, in order to optimally align real estate to corporate strategy; and 2) the feasibility of the university’s timetable, in order to ensure that the portfolio design is able to accommodate the university’s programs. The decision makers could not only choose from real estate interventions but also from organizational interventions, which change the scheduling process. The tests done at the DUT prove that the participants are able to use the PBPD methodology to define criteria and that they are able to design portfolios with a higher overall preference. The results suggest that PAS can be used as a tool to align real estate to corporate strategy and to support campus decision making.
    Date: 2014
  22. By: Gisela Di Meglio (Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa) (Department of Foundations of Economic Analysis II (Quantitative Economics)), Instituto Complutense de Analisis Economico (ICAE). Facultad de Ciencias Económicas y Empresariales (Faculty of Economics and Business), Universidad Complutense de Madrid (Complutense University of Madrid)); Stefano Visintin (University of Amsterdam. Amsterdam Institute for Advanced Labour Studies. The Netherlands)
    Abstract: The question if countries are achieving their maximum production given resource allocation is at the very centre of contemporary debates. The issue becomes even more relevant when directed to service activities, due to their cardinal role in modern societies. However, hardly any studies perform cross-country efficiency comparison of service sectors at aggregated level. The paper aims at measuring and comparing technical efficiency of (total and market) services across 16 developed economies during the past three decades. The empirical estimations are performed by means of frontier parametric techniques applied to both panel data and cross-sectional data. Benchmark figures, useful for cross-country comparison and policy analysis, are provided for efficiency scores and for their evolution across time.
    Keywords: Service sector; Efficiency; Parametric methods; Panel data; Benchmarking.
    JEL: C14 D24 L80
    Date: 2014–07
  23. By: Levy, Deborah; Cooper-Thomas, Helena; Morrish, Sussie; Ballantine, Paul
    Abstract: The Christchurch earthquake of the 24th February 2011 devastated the New Zealand city and in particular its Central Business District. Extreme events such as these not only highlight the vulnerability of our communities, but also demonstrate how communities are dynamic places that are in continual change. There are similarities in the issues that communities face after a natural disaster regardless of the type of disaster that has occurred. Christchurch illustrates that the decision people make on whether they stay to rebuild or move elsewhere is highly dependent upon what happens in property markets both physical and financial. The ability of developers and key industry players to obtain financing and the cost to rebuild to new specifications will decide whether businesses stay in the same area of the city or relocate. Relocation decisions also hinge on how badly affected areas of the city are and the types of damage caused to property and infrastructure. In Christchurch it is evident that some areas that were not particularly desirable before the earthquake but were left relatively unscathed have become highly sought after. This paper utilises Christchurch to examine the relocation decisions of small and medium sized businesses that were located in the CBD. In particular it examines the phenomena of clustering in relation to socialisation and market efficiency. The research takes a qualitative approach by undertaking in-depth interviews with real estate agents working relocating businesses and a number of in-depth interviews with decision makers within a range of small and medium sized businesses.It is suggested that the decision making process of these businesses are common to disaster areas regardless of the type of disaster occurring and will thus explore how people and businesses interact with property. This study will help to increase our understanding of these relocation decisions and the dynamic and eclectic nature of rebuilding after an extreme event.
    Date: 2014
  24. By: Vermiglio, Carlo
    Abstract: This paper analyses the contribution that public real estate management (from here PREM), can provide to the enhancement of LGs performance and to the creation of public value for the community.More in details, the research will focus on a specific segment of public property portfolio, the so called “social housingâ€?, for addressing the main issues arising in the management of this segment of assets; moreover, the research wants to highlight the connection between public property management and sustainability of an LG.The paper is structured as follows: the first section describes the scope of the research; the second section provides the theoretical framework in which the research fits; the third section analyses actual issues, criticisms and trends perceived in the field of “social housingâ€?. The renewed interested on this topic arise the claim for a new welfare system that involves both public and private sector. More in details, a private support to the implementation and improvement of public strategies it is required in order to fully meet citizens’ expectations and to conceive social value. The last section presents a case study analysis of some “social housing programsâ€? launched within Italian Local Governments. The analysis confirms the importance that property management strategies assume for LGs. Furthermore, it emerges that social housing programs - structured to provide/ enhance the empowerment of social conditions and sustainability of a community - are “key factorsâ€?. Their implementation requires a greater efforts from public managers, whose mission and vision has to be orientated towards the creation and consolidation of social value and urban development.
    Date: 2013
  25. By: Zalejska-Jonsson, Agnieszka; Lind, Hans
    Abstract: Energy-efficiency has received much attention from policy makers and the issue of reducing energy consumption in buildings has faced a true challenge in balancing incitements, restrictions and cost-effectiveness for required changes. The literature shows that technological change and technology diffusion is an important factor in overcoming cost barriers. On the other hand, before adaptation process begins the new technology must show possibility for profit and return on costs. This paper aims at discussing technological change in building construction in context of diffusion and adaptation of very low-energy technological solutions. We are tracing technological development in three aspects: wall construction, windows energy-efficiency improvement and mechanical ventilation, solutions used preliminary in construction of passive houses. We examine how those technological changes influenced cost-effectiveness and profitability of low-energy building projects. The investigation is approached by analysis of market and policy incentives and the role those factors had on diffusion of new energy-efficient technologies.
    Date: 2013
  26. By: Prima, Annisa Dian; Stevenson, Simon; Wyatt, Peter
    Abstract: This study aims to investigate the role of sponsor and internal corporate governance mechanisms in the performance of Asian REITs. The presence of sponsors, who are often the controlling unitholders of the REIT and the parent companies of the manager, is argued to exacerbate the agency costs. Under the premise that the sponsors commit to align their interests with that of other unitholders of the REITs, firm performance and board independence are expected to increase with sponsor ownership. Conversely, if sponsors increase their unitholdings to enhance their power to extract private benefits and expropriate the wealth of minority unitholders, sponsor ownership is expected to have a negative relation with board independence and REIT performance. This paper proposes an alternative measurement to calculate the level of sponsor unitholdings in the REIT. Between 2002 and 2012, sponsors retain around 19 percent of Asian REIT underlying assets. The final sample that is used consists of 514 firm-year observations from 91 REITs across Japan, Singapore, Hong Kong and Malaysia. It is found that board independence is negatively related with ownership by insiders (sponsor, CEO, and affiliated directors). The results also show that abnormal returns of REITs increase with insider ownership, but decrease with board independence. Further analysis reveals that REITs with high sponsor ownership outperform those with low sponsor ownership during financial downturn. The evidence seems to suggest that sponsors do not align their interests by appointing more independent directors in the board, but rather by providing REITs with strong development pipelines and support for future acquisition.
    Date: 2013
  27. By: Andrea Alivernini (Bank of Italy); Emanuele Breda (Bank of Italy); Eva Iannario (Bank of Italy)
    Abstract: The Bank of Italy conducts a sample survey on international tourism at the country’s main border crossings for balance-of-payments and analysis purposes. Each year a sample of international travellers (both foreigners in Italy and Italians abroad) who have crossed Italy’s borders is interviewed; counting operations are carried out in order to determine the size of the reference population. Between 1997 and 2012 international tourism produced a surplus in Italy’s balance of payments. Nonetheless, the tourism balance fell from 1.1 to 0.6 per cent of GDP, mainly due to the fall in real terms of foreigners’ expenditure in Italy, whereas expenditure by Italians abroad remained practically unchanged as a share of GDP. As a result, the market share of Italian receipts decreased from 6.8 per cent in 1997 to 3.7 per cent in 2012. During the first years of the recent crisis, Italian international tourism receipts fell at a slower pace than those of its two main European competitors, France and Spain; but in 2011-12 their recovery was faster.
    Keywords: international tourism expenditure, market shares, sample surveys
    JEL: F14 L83
    Date: 2014–07
  28. By: Bonifaci, Pietro; Copiello, Sergio
    Abstract: In the last years several studies about the relationship between buildings' energy performance and residential property prices in Europe have been published. Nevertheless, there is a lack of studies regarding the Italian real estate market, probably due to the difficulties to access official data on property characteristics and transactions prices.Following the recast of European Commission's Energy Performance of Building Directive (2010/31/EU), since 2012, in Italy, is mandatory to provide information about energy performance on the real estate advertisements for the sale of a property, including energy label and CO2 emissions. Buildings are rated on a scale A to G, with A being the highest rating.The purpose of this research is to evaluate the impact of buildings' energy performance, as expressed by Energy Performance Certificates (EPCs), on the prices of residential properties in the city of Padua, representative of medium-size cities in Northern Italy.The study is based on a hedonic price model which aims to estimate the impact on house prices due to the improvement of energy performance. The study adopts a semi-logarithmic regression model. The analysis is performed on a dataset of nearly a thousand dwellings, listed on websites for property sales.The model considers as dependent variable the offer prices of dwellings, and includes indipendent variables that represent attributes such as location, typology, dimension, mainteinance condition and other features, as well as the energy label.The dwellings are all located in the city of Padua, with the exclusion of some areas of the city centre, in which the location variable could prevail on the others independent variables. The data collection period lasted from July to September 2013.Empirical findings show a positive and statistically significant relationship between buildings with better EPCs and house prices. Furthermore the relationship is stronger from class G to C, than from class C to A. The price premium for a higher energy rating is tested for robustness and consistency. Nevertheless, the study reveals a negative gap between the net present value of potential future savings and the estimated price premium.
    Date: 2014
  29. By: Nanda, Anupam; Yeh, Jia-Huey
    Abstract: This paper examines the impact of local public expenditure on the built environment. The empirical framework is designed to address the endogenous feedback effects. Various types of expenditures are considered across 29 local areas in Taipei. Using panel data modelling that controls for unobserved heterogeneity, we find some significant effects of infrastructure investment on land values across many areas and, also, some evidence of a social expenditure effect. The local area differences are further explored to examine spillover effects. Spillover effect is not significant when rest of the region is taken into account. However, considerable spillover effects emerge when we focus on neighbouring areas. Also, results show interesting distinctions among various types of public expenditure. Overall, the results are reasonably robust across several model specifications and samples. The results do indicate that public expenditure have some impact and show interesting spatial patterns. These findings highlight important implications for local government policy, spatial planning and the role of public expenditure in local area economic development.
    Date: 2014
  30. By: Rountree, Tanya; Elsmore, Ian
    Abstract: The relationship between buildings and the people that inhabit and utilise them is complex and multifaceted. This complexity is dependent on a number of interconnected factors such as; the nature of the building, the building’s status and its use, all of which affect the perception of the building and its contribution to the local environment. The purpose of this paper is to consider what happens when a particular set of these factors combine. Hospitality and the built environment are interdependent upon one another and have been so ever since the inception of civilisation (O’Gorman 2010). The commercialisation of hospitality has been accompanied over the centuries by a combination of the development of specific buildings and the adaptation of existing buildings for hospitality purposes. This has led to the adaptation, revitalisation and rejuvenation of post-industrial buildings for commercial hospitality purposes as a key means to achieve the continued and sustainable us of the historic built environment (Mc Neill, 2008, Bell, 2005). This creation of hospitality outlets in character buildings can be seen as a ‘lightest touch’ option allowing the implementation of conservation and planning legislation, an option that also provides the possibility of income generation and employment creation with continued public access and therefore fulfils their obligation not only to preserve such buildings but also to achieve sustainable development (PCPAct, 2004). While adaption can result in operational and financial challenges (Ransley and Ingram, 2004) these can be countered by opportunities for brand management. Current UK Government advice is that developers and policy makers should see the historic built environment as an asset, with economically viable reuse being encouraged as a means of achieving sustainable development (DCLG 2012). But in order to achieve successful adaptation an understanding of the relationship between buildings, people, operations and legislation is necessary. The alternative ontological perspective offered by Actor-Network Theory (Law, 1999, Latour, 2005), bridges the traditional social-physical divide and provides a tool for allowing the relationship between hospitality and the built environment to be understood.
    Date: 2013
  31. By: Florentino, Teresa; Casaca, Joaquim
    Abstract: This article aims to analyze different types of Social Networks, its purpose, success and evolution, and also its advantages for people and businesses in particular in Real Estate mediation in Portugal. This article includes some research related to the use of Social Networks and its relationships with Real Estate. First the social networks and issues related to investment and Marketing relations are analysed, structured and classified, and it is also analysed the Real Estate business. Then there are presented some statistics based on data according to Social Networking use in Real Estate companies in Portugal and in particular, the use of Facebook. Finally, some conclusions of this study are presented and highlighted the main limitations of this research as well as some recommendations for future studies. According to statistics made by Real Estate companies in Portugal, in a universe of 3231, and given a sample of about 500 companies in the Real Estate business, 15% have their own sites and in these, Facebook subscription is over 12%, 4% on Twitter, 1% on LinkedIn, and no more than 1% on YouTube. By Adding and adapting technologies and new trends like Social Networks and using the Internet, we can expect a better understanding of consumers and new ways of doing business and new business opportunities. There are few articles referring to Social Networks and Real Estate and in Portuguese reality this is even more uncommon. This kind of researches should be more frequent and compared, when possible, with other countries and other situations.
    Date: 2013

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