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on Economics of Strategic Management |
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Issue of 2014‒10‒03
sixteen papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Fassio, Claudio; Geuna, Aldo; Rossi, Federica (University of Turin) |
| Abstract: | There is little evidence on the specific characteristics of the process of university-industry knowledge transfer leading to the generation of valuable inventions. Using the results of an original survey of industry inventors of European patents, resident in the Italian region of Piedmont, we analyze what determines the value of inventions that have benefited from academic knowledge. We find that inventors with greater cognitive proximity to the university and higher patenting output are more likely to interact with universities and to benefit from u niversity knowledge. After controlling for the characteristics of firms and technologies, we find that it is the transfer of theoretical academic knowledge rather than solutions to more technical and specified problems that leads to more valuable inventions. We found some evidence that knowledge transfer processes involving direct personal collaboration between the company inventor and the university researcher (which are characterized by higher trust as a result of social network embeddedness) are conducive to relatively higher value inventions. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201408&r=cse |
| By: | Sidonia von Proff (Economic Geography and Location Research, Philipps-University, Marburg); Rafael Lata (Foresight and Policy Development Department, Austrian Institute of Technology (AIT), Vienna); Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg) |
| Abstract: | Today it is generally accepted that innovation, knowledge creation, and the diffusion of new knowledge are crucial factors for economic growth at the regional, national, as well as supra-national level, and that successful innovation is increasingly based on interactions and collaborative research activities between research actors. This study focuses on diverse dimensions of distance shaping R and D collaborations in Europe and the US during the time period 1999 to 2009. We take a comparative perspective by analyzing two different R and D collaboration networks (patents and publications) and two different economic areas, namely Europe and the US, in order to examine differences in collaboration activities. In particular, we investigate how the collaboration intensity between regions has been influenced by spatial, technological, and cultural distance and whether these distances have lost importance over time in the distinct networks. The study adopts a panel spatial interaction modeling perspective. In doing so, we explicitly take account of spatial autocorrelation issues of flows by means of Eigenvector spatial filtering techniques. European coverage is achieved by using 1260 NUTS-3 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. The US coverage is attained by using 955 core based statistical areas (CBSAs). The results reveal how collaborative knowledge creation and the spatial range of knowledge diffusion differs between Europe and the US, and provide direct evidence on the differences in cooperation patterns between different types of collaborative R and D from a longitudinal and comparative perspective |
| Keywords: | R and D Networks, Patents, Publications, Spatial Interaction Modeling, Eigenvector Spatial Filtering, distance |
| JEL: | C23 O38 L14 R15 |
| Date: | 2014–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2014-04&r=cse |
| By: | Andrés Rodríguez-Pose; Edna MaríaVillarreal Peralta |
| Abstract: | This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in R&D in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives. |
| Keywords: | economic growth, innovation, social economic conditions, regional convergence, Mexico |
| JEL: | R11 R12 O32 O33 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1417&r=cse |
| By: | Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPREMAP - Centre pour la recherche économique et ses applications, IUF - Institut Universitaire de France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique); Ivan Ledezma (LEDa - Université Paris-Dauphine, IRD - DIAL - UMR 225) |
| Abstract: | This paper analyses the impact of product market regulation on the propensity to export at the industry level for 13 OECD countries and 13 industries over the 1977-2007 period. Recent economic policy and academic literature insists on the negative effects of product market regulation on productivity or innovation, and hence on "competitiveness", a term that we interpret as the ability to export. Similar to the conclusions of some contributions to a recent literature on competition and growth, the "common sense" is that product market regulation should be detrimantal to competitiveness. Testing through a two-step estimation the impact of upstream pressures of product market regulation on productivity and the effect of the latter on the propensity to export, this paper shows that upstream regulatory pressures have a significantly positive impact on productivity and thereby on the capability of an industry to attract resources and to sell its production in international markets. |
| Keywords: | Exports; product market regulation; competitiveness |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00795316&r=cse |
| By: | Alain-Désiré Nimubona (Department of Economics, University of Waterloo); Hassan Benchekroun (Department of Economics, McGill University) |
| Abstract: | We compare the performance of R&D cooperation and R&D competition within the eco-industry using a model of vertical relationship between a polluting industry and the eco-industry. The polluting industry is assumed perfectly competitive and the eco-industry is a duopoly in the market for abatement goods and services, with one fi?rm acting as a Stackelberg leader and the other fi?rm as a follower. When there are full information sharing under R&D cooperation and involuntary information leakages under R&D competition, we ?find that the only case where government intervention is needed is the case where R&D cooperation yields a higher welfare but smaller pro?fits for the follower eco-industrial fi?rm than R&D competition. Furthermore, because of the market power that the eco-industry enjoys, we show that more total R&D efforts under R&D competition do not necessarily translate into more abatement activities and larger social welfare. When there are no involuntary leakages of information under R&D competition, this result occurs because R&D competition can induce more total R&D efforts than R&D cooperation even for signi?ficantly high R&D spillovers if the marginal environmental damage is large. |
| JEL: | L13 O32 Q55 Q58 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:wat:wpaper:1406&r=cse |
| By: | Siarheu Manzhynski (Belarusian State Technological University) |
| Abstract: | Corporate social responsibility (CSR) could be an essential driver for innovation and high economic performance in a long-run perspective. First movers can exploit the business opportunities and gain a comparative advantage. But at the same time implementation of strategies and practices based on CSR requires additional costs and distraction from core activities. To what extent can efforts in building up of a social responsible company pay off these costs and benefit? What role does staff’s perception of CSR significance play in firms and corporations for innovation and economic performance improvement? In developed markets the business case for CSR has been found to be relevant both from a theoretical and practical perspective. Emerging economies have many additional economic challenges and where so far many executives perceive CSR requirements to be a burden and extra costs. Based on survey and structural equation modelling methods the relationships between the dimensions of CSR and innovation and economic performances in Belarus as an emerging economy was examined. A total of 310 CEO and managers of industrial companies in Belarus were served as respondents in this study. Main results show a strong link between CSR dimensions and innovation and economic performances. In accordance with that based on survey results and empirical analysis the main obstacles that hinder CRS orientation in Belarus were identified: weak awareness among key stakeholders regarding the potential benefits of and incentives for responsible business; the absence or failure of social and governance factors in strategic and operative plans; and uncertainty over how future economic policy can contribute to CRS. Experience from developed countries shows that a possible way to achieve high innovative activities for Belarus and other emerging countries is to promote social responsibility combined with regulatory measures. The essential benefits and measures of this transformation are also considered in the paper. |
| Keywords: | Corporate social responsibility, structural equation modelling, regulation |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2014/32&r=cse |
| 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: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:69&r=cse |
| By: | Martha Prevezer; Lutao Ning; Yuandi Wang |
| Abstract: | Research Question: How does Chinese corporate governance in publicly-listed firms affect the relationship between innovation productivity and top management turnover? Is state shareholding in China a positive force for innovation productivity? Research Insights: A balance is maintained between the negative effect of (relatively high) top management turnover on investment horizons and innovation productivity, mitigated by positive effects of high state ownership, up to a certain level of ownership concentration. Beyond this level, potential for abuse by the dominant shareholder curtails positive effects on innovation. This contrasts with foreign dominant shareholders where no alignment between dominant shareholder and top management occurs and shorter investment horizons are preferred with lower innovation productivity. Theoretical Implications: In China, with state-held and controlled publicly listed firms, there is an alliance between the dominant shareholder and top management with relatively low employee protection and weak protection for lesser shareholders . This may have positive outcomes for long term innovation but may also lead to principal-principal abuses. Any such alliance needs to be tempered by stronger internal governance structures to protect minority shareholders. But stronger protection may in turn reduce investment horizons and lower innovation. Policy Implications: As well as strengthening external corporate governance mechanisms, insider corporate governance mechanisms need to be strengthened to discipline managers. However stronger countervailing powers to secondary shareholders, stronger Supervisory Board rights and greater independence of Directors may tend to decrease time horizons of investment for the firm and impede innovation. |
| Keywords: | Corporate governance, Top management turnover, innovation performance, China |
| JEL: | P3 L2 P5 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:53&r=cse |
| By: | Cathy Ge Bao (Department of Economics/Institute for International Economic Policy, George Washington University); Maggie (Department of Economics/Institute for International Economic Policy, George Washington University) |
| Abstract: | How do domestic Örms respond to the threat of foreign competition? This paper quantifies the threat of competition from foreign multinational firms by exploring investment news that appear in over 35,000 newspapers, trade presses, magazines, newswires, and other forms of media in 200 countries. The analysis shows that, on average, domestic Örms respond to foreign multinational threats by increasing productivity, R&D, labor training, patent applications, and advertising expense and changing product composition. However, the response exhibits substantial heterogeneity oss industries and Örms: industries with "neck-to-neck" competition are more likely to upgrade productivity; within each industry, the right tail of the domestic productivity distribution responds by increasing innovation while the left tail escapes competition threats by dropping threatened products. Moreover, the degree of response increases significantly with the size of the threat, the influence of the news, the amount of information embedded in the news--on, for example, the credibility of the threat, and the number of news in downstream industries. The main findings are robust to placebo tests and IV analyses that explore detailed and unique characteristics--such as the publishing timing and location, the primary consumers, and the substance--of each news. |
| Keywords: | threat, foreign investment news, and domestic Örm responses |
| JEL: | F1 F2 L2 D2 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2014-13&r=cse |
| By: | Cristiano Antonelli (Department of Economics, University of Turin - University of Turin); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)) |
| Abstract: | Localized technological change and efficiency wages across European regional labour markets, Regional Studies. Internal labour markets and industrial relations in Continental Europe are characterized by substantial rigidity of employed labour engendered by the tight conditions of regional labour markets. This rigidity affects both the rate and the direction of technological change. The increase of wages induces the localized introduction of biased technological change with clear effects on productivity levels. The empirical evidence across a sample of European regions confirms the significant role of the changes in wages both on the increase of the output elasticity of labour and on multifactor productivity. |
| Keywords: | Induced approaches, Localized technological change, Efficiency wages, Multifactor productivity growth, Regional labour markets |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00727608&r=cse |
| By: | Fairlie, Robert |
| Abstract: | In contrast to the large and rapidly growing literature on IT investments and firm productivity, we know very little about the role of personal computers in business creation. Using matched data from the 1997-2001 Computer and Internet Usage Supplements to subsequent Outgoing Rotation Group files from the Current Population Survey, I explore the relationship between computer ownership and entrepreneurship. Trends over the past two decades provide some evidence of a positive relationship between home computers and entrepreneurship rates, but the evidence is not clear. In contrast, an analysis of the relationship between computer ownership and entrepreneurship at the individual level provides evidence that individuals who had access to a home computer are substantially more likely to become an entrepreneur over the following 12-15 months. Probit and bivariate probit regressions also provide evidence of a strong positive relationship between computer ownership and entrepreneurship among women, but only limited evidence for men. Further, estimates from the CPS indicate that entrepreneurs who had prior access to home computers create a large variety of types of businesses and not only those in the IT industry. |
| Keywords: | Business, Social and Behavioral Sciences, entrepreneurship, ICT, computers, technology, business creation, self-employment |
| Date: | 2014–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucscec:qt0nm6x99w&r=cse |
| By: | Jos Jansen (Department of Economics and Business, Aarhus University, Denmark); Andreas Pollak (University of Cologne) |
| Abstract: | We study the strategic disclosure of demand information and product-market strategies of duopolists. In a setting where firms may fail to receive information, we show that firms selectively disclose information in equilibrium in order to influence their competitor’s product-market strategy. Subsequently, we analyze the firms’ behavior in a laboratory experiment. We find that subjects often use selective disclosure strategies, and this finding appears to be robust to changes in the information structure, the mode of competition, and the degree of product differentiation. Moreover, subjects in our experiment display product-market conduct that is largely consistent with theoretical predictions. |
| Keywords: | duopoly, Cournot competition, Bertrand competition, information disclosure, incomplete information, common value, product differentiation, asymmetry, skewed distribution, laboratory experiment |
| JEL: | C92 D22 D82 D83 L13 M4 |
| Date: | 2014–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2014-20&r=cse |
| By: | Sandra Poncet; Florian Mayneris; Tao Zhang |
| Abstract: | We study how the 2004 reform of minimum wage rules in China has affected the survival, average wage, employment and productivity of local firms. To identify the causal effect of minimum wage growth, we use firm-level data for more than 160,000 manufacturing firms active in 2003 and complement the triple difference estimates with an IV strategy that builds on the institutional features of the 2004 reform. We find that the increase in city-level minimum wages resulted in lower survival probability for firms that were the most exposed to the reform. For surviving firms, wage costs increased without negative repercussions on employment. The main explanation for this finding is that productivity significantly improved, allowing firms to absorb the cost shock without hurting their employment nor their profitability. At the city-level, our results show that higher minimum wages fostered aggregate productivity growth thanks to productivity improvements of incumbent firms and net entry of more productive ones. Hence, in a fast-growing economy like China, there is a cleansing effect of labor market standards. Minimum wage growth allows more productive firms to replace the least productive ones and forces incumbent firms to strengthen their competitiveness, these two mechanisms boosting the aggregate efficiency of the economy. |
| Keywords: | minimum wages;firm-level performance;aggregate TFP;China |
| JEL: | F10 F14 O14 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2014-16&r=cse |
| By: | Paula CABO (Agriculture School and CIMO, Polytechnic Institute of Bragança, Portugal); João REBELO (University of Trás-Os-Montes and Alto Douro, Department of Economics, Management and Sociology, Vila Real, Portugal) |
| Abstract: | In recent years the importance of corporate governance (CG) has rising new attention, as the 2008 financial crisis illustrates. Co-operative members, staff, regulators and others stakeholders involved in the co-operative banking business became aware of the need to strengthen co-operatives governance, since this is crucial to safeguarding sound management and, ultimately, to the survival and sustainability of these organizations. With their origins rooted in the 16th century, the Portuguese Agricultural Credit Co-operatives (CCAM) have been considered central players in the economic and social development of rural regions. The goal of this paper is to determine the impact of the different governance mechanisms of co-operative banks on control management, by analysing CCAM governance and assess its efficiency in disciplining management. Hence, using data from 1995-2009 period, and multinomial logit models, the relation between CCAM performance and several control mechanisms operating within the SICAM is analysed. The results show that overall internal governance mechanisms are not related to the CCAM performance, which indicates potential weakness of the CCAM internal control mechanisms. On the other hand, external governance mechanisms are related to CCAM operational and cost efficiency indicators, demonstrating the importance of these mechanisms in disciplining CCAM management. Moreover, the results highlight the value of the supervision task of Central CCAM in the performance of the associates. |
| Keywords: | Governance, control mechanisms, co-operatives, integrated systems |
| JEL: | D23 G34 L30 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:crc:wpaper:1416&r=cse |
| By: | Teresa Lopes (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto); Joana César Machado (Faculdade de Economia e Gestão and CEGE, Universidade Católica Portuguesa - Porto) |
| Abstract: | The purpose of this research is to investigate how a corporate brand of higher education can benefit from a social network for the development of its internal communication strategy. The research strategy involves a case study about Catholic University of Portugal, in Porto, and a qualitative data analysis. The results obtained suggest that, in comparison to its competitors, Catholic University of Porto is still at an early Web 1.0 stage, not taking advantage of the interactivity and customization potential of its internal communication. Social networks are indeed used, but only for external communication. In contrast, some of its international competitors use a private social network, Ning, to improve their corporate communication strategy. Findings also show that these tools are favorably perceived by the university’s employees, and could allow Catholic University to improve its internal communication system considerably. In particular, the use of social networks would offer professors and researchers an effective platform for sharing their research, building valuable partnerships or working in multidisciplinary projects. We believe that this research presents important benefits, both from an academic standpoint (several research domains were involved) and from an organizational perspective (by contributing to the strengthening of the university´s corporate brand). The main contribution of this work is related with the development of an exhaustive strategic plan for the implementation of an internal corporate social network. |
| Keywords: | Corporate brand; social networks, internal communication, higher education |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:cap:mpaper:022014&r=cse |
| By: | Brenda Gannon (Manchester Centre for Health Economics, Institute of Population Health, University of Manchester); Jennifer Roberts (Department of Economics, University of Sheffield) |
| Abstract: | Social capital is a rapidly expanding research theme within economics and has become a popular concept with policy makers in both developed and developing countries. Despite this growth in popularity, social capital remains a controversial concept among economists. We argue that this is largely due to a fundamental mismatch between the theoretical coverage and the vast majority of empirical work. Utilising data from a large cross-Europe survey of older people we use principal components analysis to demonstrate that social capital has multiple dimensions, and then explore the extent to which these latent dimensions coincide with the theoretical constructs of social capital. We use the association between social capital and a number of measures of health and well-being to demonstrate the importance of taking account of the multiple dimensions of social capital in empirical work. As well as showing that all the underlying constructs of social capital are significantly associated with health and well-being, our results also reveal that while in general this association is positive, close bonding in the form of household ties is inversely related to health and well-being; this contradicts the implicit assumption, often made in the literature that, in relation to social capital, more is always better. |
| Keywords: | social capital; health; older people; principal components analysis |
| JEL: | Z13 I12 J14 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:shf:wpaper:2014014&r=cse |