nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒08‒20
35 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Knowledge Complementarity of a Firm’s Internal and External R&D Capabilities By Koski, Heli; Svento, Rauli
  2. Paradigm Shift or Business as Usual? Dynamic Complementarities in Innovation Strategies By James H. Love; Stephen Roper; Priit Vahter
  3. Entrepreneurial leadership, capabilities and growth: A review of existing evidence By Andy Lockett; James Hayton; Deniz Ucbasaran; Kevin Mole; Gerard P. Hodgkinson
  4. Governance, Firm Size and Innovative Capacity: Regional Empirical Evidence for Germany By Berlemann, Michael; Jahn, Vera
  5. Agglomeration and Innovation By Gerald Carlino; William R. Kerr
  6. Energy prices, technological knowledge and green energy innovation: A dynamic panel analysis of patent counts By Kruse, Juergen; Wetzel, Heike
  7. Stimulating industrial ecosystems with sociotechnical imaginaries: The case of Renault Innovation Community By Sophie Hooge; Laura Le Du
  8. Agglomeration and Firm Turnover By Marjan Nasir
  9. Knowledge spillovers, ICT and productivity growth By Haskel, J; Corrado, C; Jona-Lasinio, C
  10. Measuring competition in banking: A critical review of methods By Florian LEON
  11. Fostering a Creative Economy to Drive Korean Growth By Randall S. Jones
  13. Added Value of Hospitality Management in the Evolution of Property and Facility Management By Le Roux, Pieter; Dongelmans, Desiree
  14. Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions. By Davide Castellani; Giulio Giangaspero; Antonello Zanfei
  15. Entrepreneurship and innovation: the role played by graduates By Andrea Cammelli; Francesco Ferrante
  16. Governance in Network Industries: Lessons Learnt from New Institutional Economics By Jean-Michel Glachant
  17. Institutional Environment, Economic Performance and Innovation in Turkey By Erkan Erdil; M. Teoman Pamukçu; Dilek Çetin
  18. An Impact Analysis of Logistics Accessibility Improvements on the Productivity of Manufacturing Sectors By Hidekazu Itoh
  19. The Announcement Effects of Regional Tourism Industrial Policy:The Case of the Hainan International Tourism Island Policy in China By Jianjun Sun; Su Zhang; Nobuyoshi Yamori
  20. Global Virtual Water Trade: integrating Structural Decomposition Analysis with Network Theory By Tiziano Distefano; Massimo Riccaboni; Giovanni Marin
  21. The Institutionalisation of Multi-level Changes: Sustainable Development, Values and Territory By Gaël Plumecocq
  22. Supply Chains and the Internalization of SMEs: Evidence from Italy By Giorgia Giovannetti; Enrico Marvasi; Marco Sanfilippo
  23. Meeting Technologies and Optimal Trading Mechanisms in Competitive Search Markets By Lester, Benjamin R.; Visschers, Ludo; Wolthoff, Ronald P.
  24. The Dialogical Model: Developing Academic Knowledge for and from Practice By Marie-José Avenier; Aura Parmentier-Cajaiba
  25. Gravity model of trade flows between European Union countries in the era of globalization By Natalia Drzewoszewska; Michal Bernard Pietrzak; Justyna Wilk; Stanislaw Matusik
  26. How does management perceive export success? An empirical study of Moroccan SMEs By Hind El Makrini
  27. Enterprise According to Managerial Theories of the Firm By Elzbieta Rogalska
  28. Regional Airports and Urban Development of Small Cities in the U.S.: A Case Study about Gainesville Regional Airport and its Effects on the Economic Development of Gainesville, Florida By Fabian Zepezauer
  29. Effects of Economic Factors on Adoption of Robotics and Consequences of Automation for Productivity Growth of Dairy Farms By Heikkila, Anna-Maija; Myyra, Sami; Pietola, Kyosti
  30. Diversity and SMEs: Existing evidence and policy tensions By Sara Carter; Monder Ram; Trevor Jones; Kiran Trehan
  31. Higher Education in Dynamic Asia No. 7: Administration and Governance of Higher Education in Asia: Patterns and Implications By Asian Development Bank (ADB); ; ;
  32. Internationalisation des coopératives agricoles françaises. By Nina Latouillle; Karine Latouche; Samira Rousselière
  33. Understanding Fear of Failure in Entrepreneurship: A Cognitive Process Framework By James Hayton; Gabriella Cacciotti; Andreas Giazitzoglu; J. Robert Mitchell; Chris Ainge
  34. Strategic and structural uncertainties in robust implementation By Yamashita, Takuro
  35. Human Capital Spillovers and Local Unemployment By Jung Hyun Choi; Richard K. Green

  1. By: Koski, Heli; Svento, Rauli
    Abstract: We use data from over 1500 Finnish companies for the years 2006-2008 and 2008-2010 to explore complementarity of a firm’s R&D strategy with its external knowledge acquisition and innovation collaboration strategies. We define knowledge complementarity (tacit knowledge complementarity) of R&D capabilities to exist when increase in investments in R&D also increases marginal returns from broader external knowledge search (deeper innovation collaboration with external partners). Our estimation results provide support for knowledge complementarity of external R&D. Instead, our data provide no evidence on tacit knowledge complementary of external R&D generally. However, our empirical results concerning the separate types of external R&D suggest that a firm’s acquisition of new technology (i.e., advanced machinery, equipment or software) for innovation purposes appears to be tacit knowledge complementary.
    Keywords: open innovation, external knowledge search, complementarity
    JEL: D83 O3 L2
    Date: 2014–08–06
  2. By: James H. Love (Aston University Business School); Stephen Roper (Warwick University Busines School); Priit Vahter (University of Tartu)
    Abstract: We investigate claims of a ‘paradigm shift’ towards firms using open innovation as a conscious strategic choice. Such a claim implicitly involves two elements: first, there should be some evidence that firms are increasingly likely to use a combination of internal and external knowledge in their innovation activity, and second, there should evidence that firms derive a systematic advantage from so doing. Using a panel of Irish manufacturing plants over the period 1991-2008 we develop four archetypal innovation strategies. We find little evidence, either from considering successive cross-sectional waves of comparable surveys, or in terms of the strategy switch choices of specific plants, that there has been a systematic move towards the use of an ‘open’ innovation strategy. We then test for the presence of complementarities in the joint use of internal R&D and external innovation linkages. In static terms we find no evidence of complementarity, but in dynamic terms find evidence that strategy switches by individual plants towards an open innovation strategy are accompanied by increased innovation outputs.
    Keywords: innovation strategies; dynamic complementarities; open innovation; Ireland
    JEL: O31 O33 D92
    Date: 2013–06–03
  3. By: Andy Lockett (Warwick University Business School); James Hayton (Warwick University Business School); Deniz Ucbasaran (Warwick University Business School); Kevin Mole (Warwick University Business School); Gerard P. Hodgkinson (Warwick University Business School)
    Abstract: Our knowledge of the factors influencing SME growth has increased dramatically over the last two decades. Scholars have pointed to factors influencing business growth intentions; yet we still have limited understanding of the context and conditions under which the leaders of SMEs view business growth as desirable and feasible. Leadership behaviours and management activities through interactions and complementarities among individuals, processes and structures create growth capabilities; moreover, existing evidence suggests a positive relationship between growth capabilities and growth; however, much less is known about the determinants of these capabilities. In this review we focus on entrepreneurial leadership and capabilities for growth. Our review highlights four concepts: leadership, dynamic firm capabilities, substantive capabilities and growth outcomes. We examine evidence for the processes, routines and resources underlying substantive growth capabilities. We review evidence relating managerial cognitions, motivations and decisions to invest in growth. We review what is known about the dynamic capabilities that support the sustained pursuit of new opportunities and highlight areas of consensus and contention.
    Keywords: capabilities, leadership, growth capabilities, dynamic capabilities, firm growth
    JEL: L26 M10 M13
    Date: 2013–04–02
  4. By: Berlemann, Michael (Helmut Schmidt University, Hamburg); Jahn, Vera (Helmut Schmidt University, Hamburg)
    Abstract: Successful innovation is a precondition for economic prosperity. While various potential determinants of innovative activity have been considered, little empirical evidence is yet available for the influence of firm governance issues. This paper aims at filling this gap in the literature by studying whether the relative importance of owner-managed small and medium sized enterprises has an effect on regional innovative capacity. We therefore combine patent data with data from the firm database of Creditreform, containing information on the governance structure of regional operating enterprises. Using a cross section of German NUTS-3-regions, we identify a significantly positive relation between the relative importance of owner-managed SMEs and innovative capacity. This finding is highly robust when controlling for spatial correlations.
    Keywords: innovation; owner-managed firms; SMEs; Germany
    JEL: C21 D23 O31
    Date: 2014–07–28
  5. By: Gerald Carlino; William R. Kerr
    Abstract: This chapter reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then describe how these factors are frequently measured in the data and some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    JEL: J2 J6 L1 L2 L6 O3 O4 R1 R3
    Date: 2014–08
  6. By: Kruse, Juergen (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Wetzel, Heike (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: We examine the effect of energy prices and technological knowledge on innovation in green energy technologies. In doing so, we consider both demand-pull effects, which induce innovative activity by increasing the expected value of innovations, and technology-push effects, which drive innovative activity by extending the technological capability of an economy. Our analysis is conducted using patent data from the European Patent Office on a panel of 26 OECD countries over the period 1978-2009. Utilizing a dynamic count data model for panel data, we analyze 11 distinct green energy technologies. Our results indicate that the existing knowledge stock is a significant driver of green energy innovation for all technologies. Furthermore, the results suggest that energy prices have a positive impact on innovation for some but not all technologies and that the effect of energy prices and technological knowledge on green energy innovation becomes more pronounced after the Kyoto protocol agreement in 1997.
    Keywords: Green energy technologies; innovation; patents; demand-pull; technology-push; dynamic count data model
    JEL: C33 O31 Q40 Q42 Q55
    Date: 2014–07–31
  7. By: Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Laura Le Du (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: Facing the necessity to increase their innovation capabilities in a more and more holistic context, companies are creating new collaborative organizations aiming to collectively explore potential radical innovation fields. In this paper, we propose to study the nature of these new collectives for innovation through two managerial patterns: objects of collaboration and organizational mechanisms of coordination. Based on longitudinal collaborative research with the French carmaker Renault, the research analyses the case of the Renault Innovation Community, which involved members in original collaboration features to stimulate the industrial ecosystem of mobility and to support the potential emergence of new ecosystems. The main results of the empirical research underlined that: (1) objects of collaboration surpassed the detection of societal expectations to focus on sociotechnical imaginaries stimulation and dissemination; and (2) organizational mechanisms of collaboration exceed open innovation logics to focus on the collective building of favorable emergence conditions for new industrial ecosystems.
    Keywords: sociotechnical imaginaries; industrial ecosystem; innovation community
    Date: 2014–06–07
  8. By: Marjan Nasir (Lahore School of Economics, Lahore, Pakistan.)
    Abstract: The geographic and industrial concentration of firms affects firm turnover, as highlighted in research on industrial organization. This study conducts a firm-level analysis to determine the impact of agglomeration on firm entry and exit in domestic industries in Punjab, Pakistan. The study also illustrates how some industries exist in clusters while others are highly dispersed. The results suggest that firm entry and exit is higher in highly agglomerated industries.
    Date: 2013
  9. By: Haskel, J; Corrado, C; Jona-Lasinio, C
    Date: 2014–07–21
  10. By: Florian LEON
    Abstract: Many studies have attempted to investigate the determinants and implications of competition in the banking industry. The literature on the measurement of competition can be divided between the structural and non-structural approaches. The structural approach infers the degree of competition from the structure of the market. The non-structural approach, based on the New Empirical Industrial Organization, assesses the degree of competition directly by observing behavior of firms in the market. This paper reviews the most frequently-used structural and non structural measures of competition in banking. It highlights their strengths and weaknesses, especially for studies based on a limited number of observations.
    Keywords: Boone indicator, Panzar-Rosse model, Conjectural variation model, Lerner index, HHI, Bank, competition
    JEL: O55 L13 L11 G21 D4
  11. By: Randall S. Jones
    Abstract: A creative economy requires innovation-friendly conditions. Korea’s innovation system should be improved by upgrading universities and expanding their role in business R&D, while increasing international collaboration in R&D from its current low level. The returns from Korea’s large investment in innovation should be enhanced by improving framework conditions – easing product market regulations, promoting international competition and enhancing labour market flexibility – to encourage the adoption of new technology. Venture businesses and start-ups should play a key role in commercialising innovation. To make venture investment a growth driver, it is important to expand the role of business angels, activate the merger-and-acquisition market and foster entrepreneurship. A creative economy also depends on making SMEs, which account for 87% of employment, more dynamic. SME policies should be streamlined and improved to promote market-based financing and reduce the negative effects of government funding programmes, which discourage the expansion of SMEs. The growth of small firms also depends on resolving labour market mismatches and taking full advantage of the opportunities afforded by the Internet. This Working Paper relates to the 2014 OECD Economic Survey of Korea ( Promouvoir une économie créatrice comme moteur de la croissance coréenne Une économie créatrice nécessite des conditions propices à l’innovation. Il conviendrait d’améliorer le système d’innovation en modernisant les universités et en renforçant leur rôle dans la R-D des entreprises, tout en multipliant les collaborations internationales, actuellement peu développées, dans ce domaine. Il conviendrait aussi d’améliorer le rendement des investissements massifs de la Corée dans l’innovation en instaurant un environnement plus favorable – en assouplissant la réglementation des marchés de produits, en favorisant la concurrence internationale et en conférant plus de flexibilité au marché du travail – afin d’encourager l’adoption de technologies nouvelles. Les entreprises à risque et les jeunes entreprises devraient jouer un rôle de premier plan dans la mise sur le marché de l’innovation. Pour que l’investissement en capital-risque soit vecteur de croissance, il est primordial de renforcer le rôle des investisseurs providentiels, de développer le marché des fusions-acquisitions et de favoriser l’entrepreneuriat. Une économie créatrice est aussi une économie qui dynamise le secteur des PME, lequel représente 87 % de l’emploi. Les politiques en faveur des PME doivent être rationnalisées et optimisées pour promouvoir les financements de marché et atténuer l’impact négatif des aides publiques, qui n’incitent pas les PME à se développer. Enfin, le développement des petites entreprises dépend aussi de la capacité à résoudre l'inadéquation de l'offre et de la demande sur le marché du travail et à tirer pleinement profit des opportunités offertes par Internet. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Corée, 2014 (
    Keywords: product market regulation, R&D, entrepreneurship, start-ups, crowd-funding, innovation system, knowledge-based capital, mergers and acquisitions, business angels, creative economy, SMEs, chaebols, credit guarantees, venture capital investment, économie créative, système d'innovation, garanties de crédit, investissements en capital-risque, investisseurs providentiels, financement participatif, fusions et acquisitions, capitale de la connaissance, chaebols, PME, entrepreneuriat, R&D, jeunes entreprises, Corée, réglementation des marchés de produits
    JEL: L25 L26 M13 O31
    Date: 2014–07–24
  12. By: Natalia Przybylska (Nicolaus Copernicus University)
    Abstract: This article aims to look at the process of globalization from the perspective of the Polish SME sector and the role that plays in the Polish economy. The article includes both a description of the most recent research results in the condition of the Polish economy, as well as small and medium-sized companies and their innovation. The economic development of countries takes place with the active participation of these companies and their innovation which is growing in importance.
    Keywords: globalization, the Polish SME sector
    Date: 2013–02
  13. By: Le Roux, Pieter; Dongelmans, Desiree
    Abstract: Research on business alignment in FM emphasizes the need for evidence-based reasoning regarding the added value of FM to organizational effectiveness in strengthening the strategic identity of FM (Price, 2002; Chotipanich, 2004; Chotipanich and Nut, 2008; Mak 2011). In the Netherlands, recent developments in new ways of working, and the requirements thereof in terms of FM products and services, have proven the ability of FM to evolve. In meeting the needs of new ways of working, Hospitality Management (HM) has become an integral part of the overall strategic identity of FM (Reijngoud, 2011). The current study reflects on the above-mentioned statements, and uses a case study approach to present evidence-based proof of the added value of HM in the evolution of property and facility management. The case study of Eneco – a large Dutch energy provider – traces the effects of a vision on overall sustainability that was adopted in 2008. This vision was translated and physically embodied in a new building and a new workplace concept with 1530 typologically diverse workplaces for 2300 employees (0.67 workplaces/employee). Bringing it all together is an integrated FM/HM strategy closely aligned to the organizational objectives in terms of sustainability, HRM, ICT and CRM (Customer Relation Management). Implementation of this strategy is recognized through its focus on three specific aspects: (i) user-behaviour, (ii) products and environment, and (iii) Facility services. By translating general and FM trends regarding these focus areas to a vision on the role and potential added value of HM in FM, an integrated approach that transcends the level of mere product provision and service delivery, was realized. Crucial in formulating this integrated approach were considerations regarding (i) the development of new FM and service delivery competencies, and (ii) the financial implications of the envisioned service contracts and products. As a result, these were benchmarked with current facility costs (NEN 2748, currently known as EN-15221) and integrated with three anticipated levels of experience on which the organization wants to accommodate all client (internal) and customer (external) needs and requirements. Knowledge of this case study contributes to a body of epistemological knowledge in FM education regarding the continued evolution of FM and the dynamic nature of its alignment with organizational objectives.
    Date: 2013
  14. By: Davide Castellani (Department of Economics, Finance and Statistics, Università di Perugia); Giulio Giangaspero (Department of Social Sciences and Economics - DiSS - Sapienza University of Rome - Italy); Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. And the need to consider distance as a multifaceted concept including both spatial and institutional features has also been increasingly acknowledged in the literature. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.
    Keywords: FDIs, Multinationals, Distance, Heterogeneity.
    JEL: F23 O33
    Date: 2013
  15. By: Andrea Cammelli (AlmaLaurea); Francesco Ferrante (University of Cassino, AlmaLaurea)
    Abstract: As is well-known, the ongoing crisis (ISTAT, 2013; CENSIS, 2013) "has eroded the capacity for resistance of families and businesses, created widespread social unease, caused expectations to fall sharply, and triggered a radical change of consumer behaviour” (CNEL, 2013). Against this backdrop, assessing the employment conditions of young people, especially those with higher educational attainment, is of paramount importance. Such an assessment is hindered by the many reforms of curricula undertaken in succession, which make it difficult to identify the effects of temporary and structural factors, thus impairing interpretation of results. These paper will anyway try to provide an overview of the situation, despite some difficulties and limitations: a thorough analysis of the various aspects and degree types under study, as well as for the definitions and method employed. An analysis of the main employment-related factors showed that graduates’ employment conditions further deteriorated over the last year. This was observed not only among recent graduates, whose employment outcomes tend to be poorer because of their small work experience, but also among their peers who graduated in less recent years. This paper present the main results of the 16th ALMALAUREA Report on graduates’ employment conditions, which has involved nearly 450,000 graduates from all the 64 Universities that are members of ALMALAUREA. The Survey refers to 220,000 post reform first and second level graduates interviewed at one year from graduation; all the 2010 second level graduates (more than 72,000) interviewed at 3 years from the achievement of the degree and all the 2008 second level graduates (more than 54,000) investigated at five years from the completion of their studies. Finally, two specific investigations, usually run by ALMALAUREA, have focused on the first-level graduates of 2010 and 2008 that did not continue their university studies (nearly 53,000 and more than 44,000), interviewed respectively at three and five years after graduation. In addition to the detailed analysis of the recent trends in the labor market, the survey deepened the following issues: the entrepreneurship of the Italian graduates in times of economic crisis, highlighting characteristics and propensities of those who decide to undertake entrepreneurial activities; the second level Italian graduates working abroad.
    Keywords: employment condition, graduates, university system, entrepreneurship, brain drain.
    Date: 2014–07
  16. By: Jean-Michel Glachant
    Abstract: Institutional economics provide a useful frame to navigate the fuzzy world of governance structures. Of course markets, firms and relational contracting (or Hybrid Forms) are alternative tools which can complement or substitute each other to frame transactions made among economic agents. However, firms are not a single piece of governance structure as they might handle different transactions very differently. Either inside the firm, such as the day-to-day operational workflow, the hazards of R&D discovery and trials, the long term production of skills and knowledge through organized definition and allocation of tasks, the coordination between today’s and tomorrow’s operations e.g. between the various levels of management and the interactions with the stockholders, or outside the firm in the interactions with suppliers, customers bankers and the social or professional communities. Truly, those firms are all conglomerates of several governance sub-structures. So are the markets conglomerates of several governance mechanisms. It is why we are able to think about designing/redesigning the markets we have and to move to get the markets that we would like to have. Knowing all that: how to apply it to the existing Network Industries?
    Keywords: Institutional economics, governance structures, markets, firms, network industries
    Date: 2014–07
  17. By: Erkan Erdil (Department of Economics, Middle East Technical University); M. Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University); Dilek Çetin (Department of Economics, Kırıkkale University)
    Abstract: This paper investigates the relationship between economic performance and innovation in Turkey, while also taking into account the crucial mediating effect of the institutional environment. We carry out an in-depth analysis of the recent shifts in STI policy making in Turkey. The emphasis is on the innovation support policy instruments, and their effectiveness, as well as on the formulation of national STI targets, sector priorities and targets in the field of human resources. A number of concerns are expressed for the effectiveness of policy instruments and for the attainability of national STI targets. In the second part using firm-level data from an innovation survey pertaining to 2008-2010, an econometric exercise is conducted in order to test for the effectiveness of innovation support in Turkey. Innovation support is treated alternatively as an exogenous and endogenous variable. Findings indicate a positive impact innovation support in general. Innovation support granted by local authorities is not effective while EU-funded projects lead to innovation although they constitute an extremely low share of total innovation supports.
    Keywords: Institutional Environment, Science, Technology, Innovation, Economic Performance, CDM Model, Turkey
    Date: 2013–12
  18. By: Hidekazu Itoh (Kwansei Gakuin University - Kwansei gakuin University)
    Abstract: This study constructs a theoretical production function that incorporates logistics accessibility and analyzes the economic impacts of improvements in freight transport for a regional economy. Using panel data between 1995 and 2010 for Japan, we evaluate the impacts of interregional logistics accessibility, or inbound (outbound) shipping of intermediate (final) goods, on production activity. The results show that the production function has increasing returns to scale, which positively affects production activity, regarding logistics accessibility. In addition, the estimated elasticity of transportation costs changes; that is, logistics improvements in procurements (sales) decrease (increase) with time. Furthermore, the impacts of cost improvements on production activity differ across manufacturing sectors. This empirical analysis supports the logistics strategies of transportation efficiency and relocation of factories and warehouses in manufacturing sectors. In accordance with the Weber location-production problem, this empirical analysis supports production-oriented location for input goods and market-oriented location for output goods.
    Date: 2014–07–28
  19. By: Jianjun Sun (College of Tourism Hainan University,China); Su Zhang (School of Economics, Central University of Finance and Economics, China); Nobuyoshi Yamori (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)
    Abstract: China's Hainan Island has a rich diversity of attractions and opportunities for nature-based tourism, outdoor recreation, and sporting activities. Moreover, Hainan Island has a natural and socioeconomic base and environment, hosting the implementation of a tourism industrial policy. On December 31, 2009, China's State Council announced to the world the national policy of the establishment of Hainan International Tourism Island. Hence, China's Hainan Island is well suited for investigating the announcement effects of regional tourism industrial policy on the market values of firms in a tourist destination region. Based on a sample of 19 listed firms in Hainan, or Hainan concept firms, consisting of various industries, we explore the announcement effects of the national policy of Hainan International Tourism Island using an event-study approach. Two statistical methods, mean adjusted and market-model adjusted, are employed to calculate the daily abnormal returns and the cumulative abnormal returns. The results with and without considering the clustering issue show that, first, the averages of (standardized) accumulative abnormal returns are not different from zero prior to the announcement; second, the (standardized) accumulative abnormal returns of Hainan concept stock continuously go up over trading days after the announcement of a regional tourism industrial policy. As a robustness check, we also investigate the effect of the policy on Guangdong concept listed firms. We find no significant impacts of the policy announcement on the Guangdong concept listed firms. In sum, these findings indicate that regional tourism industrial policy is valuable not only to the tourism industry in the destination region but also to other industries in that region.
    Keywords: Announcement effects, Tourism, Regional industrial policy, Tourism industrial identity, Hainan
    JEL: O25 R11
    Date: 2014–07
  20. By: Tiziano Distefano (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies); Giovanni Marin (Ceris-CNR)
    Abstract: The consideration of both the direct and the indirect effects of global production and trade is the first step in order to assess the sustainability of resource exploitation, in particular water usage. This paper applies the Global Multi-Regional Input-Output model to quantify the interdependencies of different sectors and to determine the overall water consumption of each country. This procedure allows the measurement of Virtual Water Trade, that is the volume of water embedded in traded goods. This paper introduces further extensions based on network analysis to overcome the limitations of I-O models. To the best of our knowledge, this is the first attempt to build a bridge between two different, but related, methodologies. Firstly, we assess the evolution of the structure of international trade in Virtual Water (VW). Secondly, we present the results from the Structural Decomposition Analysis. Finally, we introduce other measures from Network Theory, in order to integrate the previous results. Community Detection assessment reveals the emergence of regional VW systems composed by a limited set of countries. Thus our study confirms the need of elaborating and implementing transboundary policies for water management, especially in the European Union.
    Keywords: virtual water trade, multi-regional input-output model, network analysis, community detection
    JEL: C67 Q25 F18
    Date: 2014–08
  21. By: Gaël Plumecocq (AGIR - AGrosystèmes et développement terrItoRial - Institut national de la recherche agronomique (INRA) : UMR1248, LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II)
    Abstract: This article addresses the institutional changes that local communities face when implementing sustainable development policies. Analyses suggest that because of the strength of the territorial institutions, most institutionalisation and innovation are incremental and create marginal organisational changes, in part icular, within local governments. However, some institutions are designed to improve the territorial consistency of public sustainability decisions.
    Keywords: Institutional change; Multi-level governance; Sustainable development; Textual analysis; Public service production; Values
    Date: 2013–02–01
  22. By: Giorgia Giovannetti; Enrico Marvasi; Marco Sanfilippo
    Abstract: This paper explores the impact of being part of a supply chain on the internationalization of firms. We show that even small and less productive firms, if involved in production chains, can take advantage of reduced costs of entry and economies of scale that enhance their probability to become exporters. The empirical analysis is carried out on an original database, obtained by merging and matching balance sheet data with data from a survey on over 25,000 Italian firms, largely SMEs, which include direct information on the involvement in supply chains. We find a positive and significant impact of being part of a supply chain on the probability to export and on the intensive margin of trade. The number of foreign markets served (the extensive margin), on the other hand, does not seem to be affected. We also investigate whether being in different positions along the chain, i.e. upstream or downstream, matters and we find that downstream producers tend to benefit more. Our results are robust to different specifications, estimation methods, and to the inclusion of the control variables typically used in heterogeneous firm models.
    Keywords: Supply Chains, SMEs, Heterogeneous firms, Internationalization
    JEL: F12 F14 F21
    Date: 2014–05
  23. By: Lester, Benjamin R. (Federal Reserve Bank of Philadelphia); Visschers, Ludo (University of Edinburgh); Wolthoff, Ronald P. (University of Toronto)
    Abstract: In a market in which sellers compete by posting mechanisms, we study how the properties of the meeting technology affect the mechanism that sellers select. In general, sellers have incentive to use mechanisms that are socially efficient. In our environment, sellers achieve this by posting an auction with a reserve price equal to their own valuation, along with a transfer that is paid by (or to) all buyers with whom the seller meets. However, we define a novel condition on meeting technologies, which we call "invariance," and show that the transfer is equal to zero if and only if the meeting technology satisfies this condition.
    Keywords: search frictions, matching function, meeting technology, competing mechanisms
    JEL: C78 D44 D83
    Date: 2014–07
  24. By: Marie-José Avenier (Grenoble University, France; CERAG CNRS); Aura Parmentier-Cajaiba (University of Nice Sophia Antipolis, France; GREDEG CNRS)
    Abstract: In accordance with EMR's will to promote the diffusion of research findings to practice, we propose a methodological framework for developing and communicating academic knowledge relevant for practice: the dialogical model. This model of engaged scholarship comprises five activities: specifying a research question, elaborating local knowledge, developing conceptual knowledge, communicating knowledge, and activating knowledge. The current article focuses on the early stage of research question design and presents the epistemological framework in which the model was initially developed. It also offers guidance on how to maintain academic value and practical relevance in tension throughout the research process. Examples illustrate how to construct research questions relevant both for academia and practice, and how to justify validity in pragmatic constructivism. This model can likewise be mobilized in other epistemological frameworks, particularly for knowledge generation purposes. It enriches the researchers’ methodological toolbox by adding a new procedural tool that provides valuable guidelines from the very start of research projects.
    Keywords: engaged scholarship, relevance, practice, research question design, pragmatic constructivism
    JEL: M00
    Date: 2012–12
  25. By: Natalia Drzewoszewska (Nicolaus Copernicus University, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland); Justyna Wilk (Wroclaw University of Economics, Poland); Stanislaw Matusik (Wroclaw University of Economics, Poland)
    Abstract: The objective of the paper is to present the impact of globalization conditions on trade flows between states. These determinants were considered as alternative factors for the physical distance between countries in the gravity model performed by Tinbergen (1962). In the traditional gravity model a value of trade exchange between any of two countries is directly proportional to the product of their GNP and inversely proportional to the distance between them. In the current global economy geographical distance between regions is not identified as a factor of preventing a trade exchange; therefore the distance measure in gravity model may be interpreted as an economic dissimilarity of cooperating countries. In the paper the international trade flows between EU members in the period of 1999-2010 were examined. Panel gravity models presented in the literature prove that the globalization factors, apart from a geographical distance, perform a significant role for increasing international trade. The impact of improving transport infrastructure was confirmed in the study.
    Keywords: international trade, European Union, globalization, gravity model of trade flows, panel model
    JEL: C33 F14
    Date: 2013–05
  26. By: Hind El Makrini
    Abstract: The purpose of this paper is to examine the managerial determinants of the export
    Keywords: Export success, Managerial determinants, Morocco, SMEs, RBV, Multiple regression analysis
    Date: 2014–07–24
  27. By: Elzbieta Rogalska (University of Warmia and Mazury, Poland)
    Abstract: The dominant role of corporations in modern economy and observed widespread oligopolization are the sources of practical need for the theoretical concept of the enterprise explaining the operations of large companies, with a particular focus on their primary objectives and aims, and the role they play in the markets. In this paper three concepts of the enterprise are discussed that take into account the changing conditions of the company. All the discussed concepts were formulated based on the managerial theory approach: the model of an enterprise that maximizes the sustainable growth rate of R. Marris, the model of an enterprise that maximizes revenue from the sales of W.J. Baumol and the model of O.E. Williamson that describes the preferences of managers in discretionary decision-making process. The aim of the publication is to present the managerial theory of the firm, which is alternative to traditional neoclassical concept of enterprise, their critical evaluation and an indication of application possibilities.
    Keywords: balanced rate of growth of the firm, Penrose effect, expense preference, interdependence of decisions
    JEL: D21 D24
    Date: 2013–03
  28. By: Fabian Zepezauer
    Date: 2013–03–29
  29. By: Heikkila, Anna-Maija; Myyra, Sami; Pietola, Kyosti
    Abstract: In the long term, productivity and especially productivity growth are necessary conditions for the survival of a farm. In this paper, we focus on the technology choice of a dairy farm, i.e. the choice between a conventional and an automatic milking system. Our aim is to reveal the extent to which economic rationality explains investing in new technology. The adoption of robotics is further linked to farm productivity to show how capital-intensive technology has affected the overall productivity of milk production. In our empirical analysis, we apply a probit model and an extended Cobb-Douglastype production function to a Finnish farm-level dataset for the years 2000–10. The results show that very few economic factors on a dairy farm or in its economic environment can be identified to affect the switch to automatic milking. Existing machinery capital and investment allowances are among the significant factors. The results also indicate that the probability of investing in robotics responds elastically to a change in investment aids: an increase of 1% in aid would generate an increase of 2% in the probability of investing. Despite the presence of non-economic incentives, the switch to robotic milking is proven to promote productivity development on dairy farms. No productivity growth is observed on farms that keep conventional milking systems, whereas farms with robotic milking have a growth rate of 8.1% per year. The mean rate for farms that switch to robotic milking is 7.0% per year. The results show great progress in productivity growth, with the average of the sector at around 2% per year during the past two decades. In conclusion, investments in new technology as well as investment aids to boost investments are needed in low-productivity areas where investments in new technology still have great potential to increase productivity, and thus profitability and competitiveness, in the long run.
    Keywords: Dairy farms, robotics, factor markets, Productivity Analysis,
    Date: 2012–12–05
  30. By: Sara Carter (University of Strathclyde); Monder Ram (CREME, Birmingham University); Trevor Jones (CREME, Birmingham University); Kiran Trehan (CREME, Birmingham University)
    Abstract: The purpose of this White Paper is to present an overarching review of the evidence that currently exists with regard to diversity and SMEs. It outlines longstanding concerns that entrepreneurial activities and ambitions are restricted to a narrow range of social groups, with others, in particular some ethnic minority groups and women, characterised as having both lesser interest in enterprise and lower levels of resources necessary to participate. Attempts to increase participation rates of under-represented groups have resulted in only modest changes. This White Paper introduces the key evidence relating to ethnic minority and women-led enterprises, explaining the context of each group, and summarising research evidence relating to their relative access to finance, markets and management. Research and policy within the field of diversity and SMEs is characterised by a number of tensions, relating to perceived or real discrimination; whether to promote a volume of new businesses or focus on high growth potential firms; whether specialist business support is more effective or desirable than mainstream provision; and whether there is evidence of market failure in the support provided to diverse enterprises.
    Keywords: entrepreneurship, women, ethnic minority, finance, markets, management
    JEL: G21 G28 L26
    Date: 2013–04–03
  31. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Asian countries, despite differences in their higher education (HE) systems and in their political and social structures, increasingly see the HE sector as a strategic lever for long-term sustainable development. Transforming the HE sector will depend very much on the capability of both national agencies and HE institutions to work together in creating more alignment, lessening tension, and achieving a balanced and efficient governance system for HE. This publication provides a timely analysis of administration and governance of HE and presents ecommendations to improve this field in Asia.
    Keywords: adb, asian development bank, asdb asia, pacific, poverty asia, higher education, university, college, education challenges, governance, university policies, academic freedom, public service institutions, financing, students, primary schooling, secondary education, fees, university fees, student loans, enrollment
    Date: 2012–05
  32. By: Nina Latouillle; Karine Latouche; Samira Rousselière
    Abstract: This article aims at understanding the internationalization of French agri-food cooperatives through two components: i) the presence of subsidiaries of cooperatives abroad and; ii) export of either the cooperatives or their affiliate(s). Merging the AMADEUS dataset on French agri-food cooperatives, containing information on the cooperative network, with customs data, providing data on French agri-food exports, allows us to provide some answers. The main result shows that the export activities of the cooperatives and those of its subsidiaries are complementary.
    Keywords: agri-food cooperative groups, subsidiaries, territorial link, export performance, foreign implantation
    JEL: F23 L25
    Date: 2014
  33. By: James Hayton (Warwick University Business School); Gabriella Cacciotti (Warwick University Business School); Andreas Giazitzoglu (Newcastle University); J. Robert Mitchell (Ivey Business School, Canada); Chris Ainge (Ivey Business School, Canada)
    Abstract: There is a broadly held assumption within the entrepreneurship literature that fear of failure is always and only an inhibitor of entrepreneurial behavior. However, anecdotal evidence and psychological theory suggest that this assumption is flawed. If fear stimulates greater striving in some cases or situations, then perhaps it can be a friend as much as a foe. The motivating value of fear may have consequences for the reactions, decisions, health and well-being of the entrepreneur. Unfortunately, a lack of rigorous conceptualization of the construct is a barrier to understanding such consequences. We present a grounded theoretic framework of the antecedents, moderators and consequences of fear of failure with significant implications for theory and future research.
    Keywords: entrepreneurship, fear of failure, psychology, motivation
    JEL: L26
    Date: 2013–05–03
  34. By: Yamashita, Takuro
    Abstract: This paper discusses some connections among several robustness concepts of mechanisms in terms of agents' behaviors. Specifically, under certain conditions such as private values and ``rich'' interdependent values, we show that implementation in (one-round or iterative) undominated strategies, a solution concept robust to strategic uncertainty, is equivalent to Bayesian implementation with arbitrary type spaces, a solution concept robust to structural uncertainty.
    Keywords: Robust implementation, Strategic and structural uncertainty
    JEL: D82 D86
    Date: 2014–04
  35. By: Jung Hyun Choi; Richard K. Green
    Abstract: This paper examines the magnitude of human capital spillovers on unemployment. Using bothindividual and metropolitan level data, we find that the adult population share of collegegraduates is negatively associated with the unemployment rate. More specifically, we find thatthose who reside in MSAs with higher shares of college graduates are more likely to beemployed, even after controlling for individual, MSA and state level factors including individual’sown education level. The likelihood of being unemployed falls further for the non-collegegraduates compared to the college graduates. We also find that MSAs with higher shares ofcollege graduates have lower average unemployment rates. This education spillover is nottransitory but is an important factor that explains long-term divergences in the MSAunemployment rates.
    Keywords: education; umemployment
    Date: 2014

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