nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒10‒22
27 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Agglomeration and innovation By Carlino, Gerald A.; Kerr, William R.
  2. Territorial Innovation Dynamics: a Knowledge Based Perspective By Rani Jeanne Dang; Karine Roux; Christian Longhi; Damien Talbot; Catherine Thomas
  3. Internationalization of Middle Size Multinational Enterprises in Chinese Markets: Mirroring Back Effects By Andrea Pontiggia; Tiziano Vescovi
  4. E-Skills, Brains and Performance of the Firms: ICT and Ability of Firms to Conduct Successful Projects in Luxembourg By Anissa Chaibi; Adel Ben Youssef; Leila Peltier- Ben Aoun
  5. Authenticity, Innovation and the Geographical Indication in an Artisanal Industry: The Case of the Banarasi Sari By Amit Basole
  6. Transnational ties and performance of immigrant entrepreneurs: the case of IT industry in Italy By Jan Brzozowski; Marco Cucculelli; Aleksander Surdej
  7. Strategic collective system building by firms who launch sustainability innovations By Planko; Jacqueline Cramer; Maryse Chappin; Marko Hekkert
  8. The Competitiveness of Global Port-Cities: The Case of Mersin, Turkey By Olaf Merk; Oguz Bagis
  9. Local intermediate inputs and the shared supplier spillovers of foreign direct investment By Kee, Hiau Looi
  10. Back to Basics: Basic Research Spillovers, Innovation Policy and Growth By Douglas Hanley; Ufuk Akcigit; Nicolas Serrano-Velarde
  11. Universities, Funding Systems, and the Renewal of the Industrial Knowledge Base: UNI Project Findings By Luukkonen, Terttu
  12. Estimating Direct and Indirect Effects of Foreign Direct Investment on firm Productivity in the Presence of Interactions between Firms By Sourafel Girma; Yundan Gong; Holger Görg; Sandra Lancheros
  13. Japanese Small and Medium-sized Enterprises Export Decisions: The Role Overseas Market Information By Tomohiko INUI; Keiko ITO; Daisuke MIYAKAWA
  14. The Exporting and Productivity Nexus: Does Firm Size Matter? By Cassey LEE
  15. Logistics Performance: a Theoretical Conceptual Model for Small and Medium Enterprises By Rui Mansidão; Luís A. G. Coelho
  16. The Internationalization of Polish Firms: An Empirical Investigatin of the M-P Relationship By Grzegorz Karasiewicz; Jan Nowak
  17. The capital structure of Polish small and medium-sized enterprises and its impact on their competitiveness By Robert Wolañski
  19. Science and innovation By Joelle Forest
  20. SMEs are more important than you think! Challenges and opportunities for EU exporting SMEs By Lucian, Cernat; Ana, Norman-López; Ana, Duch T-Figueras
  21. Innovation, Technological Interdependence, and Economic Growth By Douglas Hanley
  23. Regional benchmarking in the smart specialisation process: Identification of reference regions based on structural similarity By Mikel Navarro; Juan José Gibaja; Susana Franco; Asier Murciego; Carlo Gianelle; Alexander Kleibrink; Fatime Barbara Hegyi
  24. The impact of diversity on group and individual performance By Swarnodeep Homroy; Kwok Tong Soo
  27. Size and shape in the measurement of multivariate proximity By Michael Greenacre

  1. By: Carlino, Gerald A. (Federal Reserve Bank of Philadelphia); Kerr, William R. (Harvard University, Bank of Finland, and NBER)
    Abstract: Draft chapter for the forthcoming Handbook of Regional and Urban Economics, Vols. 5A and 5B This paper reviews academic research on the connections between agglomeration and innovation. The authors first describe the conceptual distinctions between invention and innovation. They then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and the authors discuss important findings from the literature about why this is so. The authors highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and they discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    Keywords: Agglomeration; Clusters; Innovation; Invention; Entrepreneurship
    JEL: J2 J6 L1 L2 L6 O3 R1 R3
    Date: 2014–08–01
  2. By: Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Karine Roux (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - Université Nancy II : EA3942 - Université de Metz); Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Damien Talbot (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: Many studies have focused on the role played by geographical location in the emergence and building of localised learning capacities (Maskell and Malmberg, 1999). In this perspective, empirical studies have demonstrated that the innovation dynamics of clusters result from the quality of interactions and coordination inside the cluster as well as interactions with external, often global, networks. In this context, knowledge exchange between firms and institutions are claimed to be the main drivers of spatial agglomeration (Canals et al., 2008). Hence, cluster policies have followed the main idea that geographic proximity facilitates collective innovation in that firms can capture knowledge externalities more easily. This idea is in fact very attractive but contains some limitations (Suire and Vicente, 2007): if some clusters are successful, others seem to decline. Therefore, in order to understand the territorial dynamics of clusters, the analysis of the specific nature of knowledge and information flows within a cluster is crucial. The objective of this paper is to enhance the analysis of the role of cognitive and relational dimensions of interactions in territorial dynamics of innovation. We focus on the key sub-process of innovation: knowledge creation, which is above all a social process based on two key complex social mechanisms: the exchange and the combination of knowledge (Nahapiet and Goshal, 1996). We suggest building a theoretical framework that hinges on these two key mechanisms. In this line, we apply Boisot's I-Space model (Boisot, 1998) for the diffusion and exchange of knowledge and suggest completing the model by introducing the concept of architectural knowledge (Henderson and Clark, 1990) so as to take into consideration the complexity of the combination process. This analysis is conducted through the illustrative analysis of three different case studies. We will draw upon the case of Aerospace Valley Pole of Competitiveness (PoC), the Secured Communicating Solutions PoC, and the Fabelor Competence Cluster. The cases show that the existence of architectural knowledge is pivotal to territorial innovation.
    Keywords: architectural knowledge, I-Space model, territorial innovation, geographical clusters
    Date: 2014–01–14
  3. By: Andrea Pontiggia; Tiziano Vescovi
    Abstract: In this paper, we focus on the internationalization strategies implemented by Middle Size Multinational Enterprises (MMNE) in Chinese markets. We assume that these strategies differs from those of the large multinational companies. Differences explained by the size of the company (medium) compared to the size of the potential market (large). The hypothesis is that in the internationalization strategy of Medium size Multinational Enterprises (MMNEs) is recursive and based on two-way innovation process. This processes is defined as a mirroring back phase and its shown by companies prone to innovate the business model because of the international exposure. Culturally distant and large markets may support firms to increase their strategic innovation rate. Evidences based on case studies show the content and the modes of the internationalization of MMNEs.
    Keywords: management, finance, economics.
    JEL: F23 M16 M31 D22 D21
    Date: 2014–09
  4. By: Anissa Chaibi; Adel Ben Youssef; Leila Peltier- Ben Aoun
    Abstract: This paper provides original empirical evidence on the causal links between e-skills, usage of Information and Communication Technologies (ICT) and firm’s performance using a sample of Luxembourgian manufacturing and services firms. Firm performance is measured in terms of innovation (success of new projects settled). Our main findings are: (i) there’s no relationship between the absorptive technology capacity of the firm (measured by ICT staff and Training) and the probability of the implementation of successful ICT projects, (ii) there is a positive effect of e-applications usage (ICT usage) on the probability of the implementation of successful new projects, and (iii) there is an asymmetric effect of usage of e-commerce and eadministration confirming findings of the recent literature.
    Keywords: Innovation; Usage of ICT; Depth of ICT adoption; Ordered models; Innovative projects.
    JEL: L21 O31 O33
    Date: 2014–09–25
  5. By: Amit Basole
    Date: 2014–08
  6. By: Jan Brzozowski (Cracow University of Economics, Department of European Studies); Marco Cucculelli (Universit… Politecnica delle Marche, Dipartimento di Scienze economiche e sociali); Aleksander Surdej (Cracow University of Economics, Department of European Studies)
    Abstract: This study contributes to the recent empirical literature on the performance of transnational immigrants' firms by investigating the effect of transnational ties on the firm's growth. In addition to the effect of the ties, the paper shows that home-country's institutional and socio-economic characteristics and country-specific entrepreneurial factors have a crucial role in shaping the ties-performance relationship. The evidence from a sample of immigrantowned firms in the Italian ICT sector in the period 2000-2010 confirmed the relevance of the proposed model and helped in understanding a potential channel of improvements in immigrant firms' performance through transnational ties. Our results show the limited relevance of a direct, or linear, impact of ties on the growth of sales in immigrant-run firms in the ICT sector, whereas supports the crucial moderating role of home country characteristics on the ties-performance relationship.
    Keywords: ICT industry, Italy, ethnic business ties, immigrants' firms' performance, transnational entrepreneurship
    Date: 2014–09
  7. By: Planko; Jacqueline Cramer; Maryse Chappin; Marko Hekkert
    Abstract: The implementation of innovative sustainability technologies often requires far reaching changes of the macro environment in which the innovating firms operate. Strategic management literature describes that firms who want to commercialize an innovative technology can collaborate in networks or industry clusters to build up a favourable environment for their technology. This increases the chances of successful diffusion and adoption of the technology in society. However, the strategic management literature does not offer advice on how to strategically build up this supportive external environment. We fill this gap with complementary insights from the technological innovation systems literature. We introduce the concept of strategic collective system building. Collective system building describes processes and activities networks of actors can strategically engage in to collectively build up a favourable environment for their innovative sustainability technology. Furthermore, we develop a strategy framework for collective system building. To underpin the theoretical analysis empirically, we conducted a case study in the Dutch smart grids field. The resulting strategy framework consists of four key areas for strategy making: technology development and optimization, market creation, socio-cultural changes and coordination. Each of these key strategic areas is composed of a set of system building activities.
    Keywords: System building; technological innovation systems; strategic collaboration; collective strategy; sustainability innovation
    Date: 2014–09
  8. By: Olaf Merk; Oguz Bagis
    Abstract: This working paper offers an evaluation of the performance of the port of Mersin, an analysis of the impact of the port on its territory and an assessment of policies and governance in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the ports on economic and environmental questions is studied and quantified where possible. The value added of the port cluster of Mersin is calculated and its interlinkages with other economic sectors in Turkey delineated. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. These include measures instituted by the port authorities, as well as by local, regional and national governments. Governance mechanisms at these different levels are described and analysed. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the port of Mersin on its territory.
    Keywords: transportation, regional development, ports, input-output, urban growth, regional growth, inter-regional trade
    JEL: D57 L91 R11 R12 R15 R41
    Date: 2013–02–20
  9. By: Kee, Hiau Looi
    Abstract: Trade liberalizations have been shown to improve domestic firms'performance through the new varieties of imported intermediate inputs. This paper uses a unique, representative sample of Bangladeshi garment firms to highlight that local intermediate inputs may also enhance domestic firms'performance, through the shared supplier spillovers of foreign direct investment (FDI) firms. An exogenous EU trade policy shock is shown to cause some FDI firms in Bangladesh to expand, which led to better performance of the domestic firms that shared their suppliers. Overall, the shared supplier spillovers of FDI explain 1/4 of the product scope expansion and 1/3 of the productivity gains within domestic firms.
    Keywords: Markets and Market Access,Water and Industry,Economic Theory&Research,E-Business,Labor Policies
    Date: 2014–09–01
  10. By: Douglas Hanley; Ufuk Akcigit; Nicolas Serrano-Velarde
    Abstract: This paper introduces a model of endogenous growth through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and embed them in a general equilibrium framework with private firms and a public research sector. After characterizing the equilibrium, we estimate our model using micro-level data on research expenditures by French firms. Our key finding is that standard R&D policies can accentuate the dynamic misallocation in the economy. We also find a strong complementarity between the property rights of basic research and the optimal funding of public research.
    Keywords: Innovation, basic research, applied research, research and development, govern- ment spending, endogenous growth, spillover
    JEL: O31 O38 O40 L78
    Date: 2014–01
  11. By: Luukkonen, Terttu
    Abstract: An important prerequisite for the renewal of Finland’s industrial and economic base is the ability of the universities to promote the renewal of the knowledge base. The UNI project studied ways in which changes in external funding mechanisms and recent governance changes in Finnish universities have changed the framework conditions influencing innovativeness and innovation in university research. Innovation here refers to novel approaches and potentially, breakthrough research, requiring risk-taking. The UK provided a comparative perspective for the study. This report reprints four separate policy briefs and reports that the UNI project has produced and provides an overall concluding chapter for them. A major conclusion of the study is that, so far, there has not been much impact from the recent policy changes on intellectual innovation in research in Finland. University governance influences research content very indirectly and is mediated by multiple other factors, meaning that policy changes are not, at least in the short run, translated into changed research content. As far as research funding organisations are concerned, Finland has not had a funding organisation that encourages risk-taking and intellectual innovation in research. Recent policy changes have not fundamentally altered this situation. In the UK, the established practice of performance measurement of universities seems to narrow notions of appropriate research content and standards of performance and is becoming an ominous factor in reducing variety and risk-taking in university research. This phenomenon is further developed in the UK, but Finland seems now to be ‘catching up’. In industry-university collaboration short-term commissions and most of Tekes’ industrial collaboration support draw on existing knowledge and know-how and are not intended to promote highly innovative and high-risk activities. More flexible and longer-term contracts can in principle promote such research activities provided that the knowledge they produce will be in the public arena since scientific breakthroughs, to bear fruit, require a great deal of further development and wide adoption of the novel concepts, methods etc. by the scientific community.
    Keywords: university research, research funding, intellectual innovation in research, university governance
    JEL: O38 O39
    Date: 2014–09–25
  12. By: Sourafel Girma; Yundan Gong; Holger Görg; Sandra Lancheros
    Abstract: We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms
    Keywords: foreign direct investment, treatment effects, SUTVA, propensity score matching
    JEL: F23 C19
    Date: 2014–09
  13. By: Tomohiko INUI (Gakushin University); Keiko ITO (Senshu University); Daisuke MIYAKAWA (Harvard University)
    Abstract: This paper examines how the Japanese firms’ export decision is affected by the availability of information on export markets, focusing on whether the availability of such information has a different impact on the export decision between large firms and small and medium-sized enterprises (SMEs). Unlike existing studies which solely focus on information sharing among firms, we are interested in the role of firms’ lender banks as an additional source of information. Specifically, using a unique dataset containing information not only on firms’ export activities but also on their lender banks’ exposure to other exporting firms and lender banks’ own overseas activities, we find that information spillovers through lender banks positively affect SMEs’ decision to start exporting and the range of destinations to which they export. Such information spillovers also reduce the likelihood that exporter firms exit from export markets. The export-to-sales ratio of exporter firms, however, is not affected by such information spillovers. These results imply that information on foreign markets provided by lender banks substantially reduces the fixed entry costs associated with starting exporting and entering new export markets as well as firms’ costs associated with continuing to export. Our results highlight that channels of information spillovers other than those examined in the literature so far may be of considerable importance, especially for SMEs
    Keywords: Export Decision; Lender Bank; Information Spillover; Extensive and Intensive Margins
    JEL: F10 F14 G21 L25
    Date: 2014
  14. By: Cassey LEE (Institute of Southeast Asian Studies)
    Abstract: The main purpose of this study is to examine whether the relationship between exporting and productivity differs across firm sizes in the Malaysian manufacturing sector. A firm-level panel data from the Study on Knowledge Content in Economic Sectors in Malaysia (MyKE) is used in the study. Overall, exporters were found to be more productive than non-exporters. This productivity gap becomes less important as firms become larger. There is evidence that the selection process for exporting is binding only for small firms. Policies that are meant to encourage small firms to export need to focus on enhancing human capital and foreign ownership.
    Keywords: Globalisation, Firm Size, Exporting, Productivity
    JEL: L60 O30 F14
    Date: 2014
  15. By: Rui Mansidão (School of Technology of Setúbal/IPS); Luís A. G. Coelho (CEFAGE-UE and Management Department, Évora University)
    Abstract: This paper presents a theoretical conceptual model for evaluation of logistics performance for small and medium enterprises (SMEs). Based on recent theoretical developments, grounded in a survey of the most important literature in the field, it analyzes the impact of the logistics function on organizational performance. The three main models of logistics performance applied to SMEs inspire the model presented: Fugate et al (2010), Aramyan et al (2007) and Töyli et al (2008). The conceptual model developed in this work is built on three basic elements: organizational performance, competitive advantage and logistics performance, which are grounded in the dimensions of efficiency, effectiveness and service level.
    Keywords: Logistics Performance; Organizational Performance; Competitive Advantage; Efficiency, effectiveness and SMEs.
    JEL: D21 D24 M10
    Date: 2014
  16. By: Grzegorz Karasiewicz (University of Warsaw, Faculty of Management); Jan Nowak (Tischner European University)
    Abstract: The purpose of this paper was to determine the nature of the relationship between multinationality and performance (M-P relationship) among Polish companies. It is based on a sample of over 300 Polish companies listed on Warsaw Stock Exchange, studied over two years (625 observations were used for statistical processing). Multiple regression and t-statistic analyses were applied to test three hypotheses. The dependent variable was company performance and the independent variable was the degree of company internationalization. A number of control variables were also incorporated in the regression models. The statistically significant results of the multiple regression analyses show that Polish companies experience a negative linear relationship between their degree of internationalization and performance for two variants of the dependent variable, and a non-linear, U-shaped relationship for one dependent variable. The results also show that companies operating on international markets achieve lower market-valuation results than their domestic counterparts, and companies with lower levels of multinationality perform better than those with higher levels of multinationality.
    Keywords: international business, company internationalization, company performance, emerging markets, Poland
    JEL: M16 L25 F23 L21
    Date: 2014–04
  17. By: Robert Wolañski (Faculty of Management, University of Warsaw)
    Abstract: The article discusses the problem of the relationship between the capital structure and the level of competitiveness of SMEs in Poland. The objective of the article is to determine the impact capital structure has on the level of competitiveness of SMEs in Poland. The capital structure of SMEs is dominated by internal funds. Among external sources of financing, bank loans and leasing are predominant. This structure is consistent with the relevant theoretical models. The study shows no significant differences in the financing of current operations, innovation, and competitiveness improvement. The lack of relationship indicates that the capital structure of SMEs has little impact on their competitiveness. The results of the study demonstrate that all external sources of financing improve the competitiveness of SMEs, but the strength of their impact is different. The strongest impact is shown for venture capital, guarantees, and leasing; the weakest – for bank loans and the issuance of shares and bonds. A significant factor is the degree of alignment of a particular financing source with the special needs of SMEs. This significant relationship is demonstrated for all the sources most commonly used by SMEs.
    Keywords: : SMEs, competitiveness, capital structure
    JEL: L25 L26
    Date: 2013–05
  18. By: Lauren Klaus (Department of Education, Employment and Workplace Relations, Australia); Mario Fernando (School of Management, Management Science and Marketing, University of Wollongong, Australia)
    Abstract: There have been increasing calls for business leaders to follow profit making strategies that are aligned with a social purpose. The challenge for leaders is to identify and develop novel and unique organisational initiatives promoting better alignment between the competing interests of business and society. Social purpose related profit making often requires organisations to generate socially innovative ways of operating businesses. In this paper, we examine how social innovation is promoted by successful leaders in organisations through spiritual leadership. Using Parameshwar’s (2005) ego-transcendence based spiritual leadership model, we explore the processes through which business leaders can foster social innovation. Spiritual leadership can help leaders with ethical decision making and help their organisations create a healthy balance between profits, people and the planet (Fernando, 2011). It is in this context that this paper explores the role of spiritual leadership in generating profits whilst at the same time delivering win-win outcomes to organisation’s stakeholders and society through socially innovative ideas. This paper reports on influential business leaders who are credited by the media for pioneering social innovations. Leader case studies are analysed using a cross-case and within-case analysis of representative excerpts from publicly available data. We analyse in particular the instances of oppressive conditions of personal and business failures. These highlight the extreme conditions of human adversity and oppression, which demands engaging several dimensions of leader behaviour to overcome the challenging circumstances. The study aims to capture the processes these successful leaders use when overcoming challenges to create socially innovative ideas. By exploring the responses of the selected business leaders to the challenging circumstances of their social innovations, this paper describes the potentially significant role played by spiritual leadership, particularly the role of higher purpose, in the development of social innovations.
    Date: 2013–09
  19. By: Joelle Forest (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - Institut National des Sciences Appliquées [INSA] : - LYON - École Normale Supérieure (ENS) - Lyon - École Nationale Supérieure des Mines - Saint-Étienne)
    Abstract: We live in a society in which technical objects are omnipresent; where technology transforms our world and conceives its future shape. However, we are faced with a paradox which becomes more and more pressing. Technique influences us and we remain largely unaware of it. If R&D seems to be an enabler of innovation, it is not sufficient by itself. Thus, the objective of this special issue is to question the relations between science and technology. What are the risks in continuing to use the linear model of innovation as the basis for policies to promote innovation? Is it not possible to go against the established paradigm of the application of sciences?
    Keywords: Innovation, science, linear model of innovation, tehnology,
    Date: 2014–09–15
  20. By: Lucian, Cernat (DG Trade); Ana, Norman-López (DG Trade); Ana, Duch T-Figueras (DG Trade)
    Abstract: This paper highlights the heterogeneity among SMEs exporting outside the EU across EU Member States and reviews how barriers facing SMEs can be tackled trade policy discussions. With over 600,000 goods exporting SMEs (over 80% of the total number of EU goods exporting firms) accounting for one third of total EU exports and employing over 6 million people in Europe, EU exporting SMEs play a non-negligible role in EU trade performance. However, SMEs have an untapped export potential, given the intrinsic and trade-specific hurdles that SMEs still face.
    Keywords: SMEs; international trade; export performance
    JEL: F13 L11
    Date: 2014–09–19
  21. By: Douglas Hanley
    Abstract: There is substantial heterogeneity across industries in the level of interdependence between new and old technologies. I propose a measure of this interdependence—an index of sequentiality in innovation—which is the transfer rate of patents in a particular industry. I find that highly sequential industries have higher profitability, higher variance of firm growth, lower exit rates, and lower rates of patent expiry. To better understand these trends, I construct a model of firm dynamics where the productivity of firms evolves endogenously through innovations. New innovators either replace existing technologies or must purchase the rights to existing technologies from incumbents in order to produce, depending on the level of sequentiality in the industry. Estimating the model using data on US firms and recent data on US patent transfers, I can account for a large fraction of the cross-industry trends described above. Because innovation results in larger monopoly distortions in more sequential industries, there is an overinvestment of research inputs into these industries. This misallocation, which amounts to 2.5% in consumption equivalent terms, can be partially remedied using a patent policy featuring weaker protection in more sequential industries, producing welfare gains of 1.7%.
    Keywords: Innovation, firm dynamics, technological change, optimal policy
    JEL: L11 O31 O33 O34 O38
    Date: 2014–01
  22. By: Mirela PUSCASU (National Defence University “Carol I”); Radu SILAGHI
    Abstract: Participatory management and leadership can enhance an organization's effectiveness and capacity by the fact that the only asset a manager has are the people. If people show loyalty, and are willing to work at full capacity and to make extra efforts, if they trust their leaders and feel safe, then the results and efficiency will be increased. The more one can delegate the decision-making and responsibilities, the more loyalty and trust one will have from the employees.
    Keywords: participatory management, leadership
    Date: 2013–11
  23. By: Mikel Navarro (Orkestra – University of Deusto); Juan José Gibaja (University of Deusto); Susana Franco (Orkestra – University of Deusto); Asier Murciego (Orkestra – University of Deusto); Carlo Gianelle (European Commission – JRC - IPTS); Alexander Kleibrink (European Commission – JRC - IPTS); Fatime Barbara Hegyi (European Commission – JRC - IPTS)
    Abstract: One of the most basic conditions required for drawing lessons from regional benchmarking is to compare homogeneous regions and learn from equivalents. This condition is not met when regions for comparison are chosen based on their high performance, overlooking their regional context or structural conditions. This paper aims to provide a new methodology for the identification of homogeneous regions for regional benchmarking; identifying groups of homogeneous regions using variables that are similar in nature; focusing solely on structural conditions, thereby overcoming the flaws produced by mixing variables of a different nature (comparing structural indicators with performance and / or behavioural indicators). Thus, regional benchmarking can be of great help in making strategic decisions within the process of the design and implementation of regional Research and Innovation Strategies for Smart Specialisation (RIS3), taking into account the relative position of the region to other regions in Europe. Following the RIS3 approach of looking beyond the regional administrative boundaries, benchmarking based on structural similarity enables the region to identify its competitive advantages through systematic comparisons with other regions or to map the national and international context in search of examples to learn from, or to mark a difference with.
    Keywords: European cohesion policy, Structural Funds, smart specialisation, regional benchmarking, structural similarity, policy learning
    JEL: C43 R12 R58
    Date: 2014–04
  24. By: Swarnodeep Homroy; Kwok Tong Soo
    Abstract: Using data on a student group project in which groups are exogenously formed, we examine the potential productivity gains from employing work-teams which are diverse in terms of gender, nationality and ability. We find no significant effect of diversity on overall team performance, except when the team members are from different socio-cultural backgrounds. More importantly, we find that students who have worked in more diverse teams experience a subsequent improvement in individual productivity. These individual productivity gains hold for both domestic and foreign students, and for students of different levels of ability. Our results suggest a mechanism by which diversity enhances individual and collective performance.
    Keywords: Group composition, diversity, performance
    Date: 2014
  25. By: Petya Koleva (University of Bedfordhsire, Business School, UK); Giuseppe Emanuele Adamo (University of Bedfordhsire, Business School, UK)
    Abstract: The aim of this paper is to revise the existing literature on corporate social responsibility (CSR) practices in the Middle Eastern countries due to their increasing importance in global business and growing flows of foreign investments. Despite that many Western theoreticians have attempted to provide universal moral and ethical grounding for CSR initiatives, they proved to be inconsistent with the Middle Eastern contextual domain. The analysis shows clear necessity of detailed understanding of local business practices in the context of the examined countries due to their heterogeneity and unique links with Islamic culture. The paper reveals that local businessman remain attached to ethical postulates originating from Islamic perspectives for social responsibility that contrasts with the conventional form of CSR. The reviewed literature demonstrates that the features of social responsibility and justice from an Islamic perspective are deeply rooted in the framework of Islam – the Qur’an and the Sunnah that present clear codification of ethical standards as well as a set of explicit postulates that practitioners and companies are considered to follow. Shari’ah (Islamic law), as a legal and moral framework with a high importance in the Islamic paradigm, provides a religious bond for business activities. The findings show that ethical codifications and standards originating from these sources offer foundation for further development and implementation of CSR practices in accordance with the needs of local customers and companies. From a methodological perspective, the paper systematically revises academic contributions belonging to the areas of Management, International Business and Marketing in accordance with the ABS classification. Finally, the paper identifies a need for further investigation and development of CSR practices which will be in consistency with the Middle Eastern domain
    Date: 2013–09
  26. By: Pablo Gutiérrez Rodríguez (Universidad de León, Facultad de Ciencias Económicas y Empresariales, Spain); José Luis Vázquez Burguete (Universidad de León, Facultad de Ciencias Económicas y Empresariales, Spain); Ana Lanero Carrizo (Universidad de León, Facultad de Ciencias Económicas y Empresariales, Spain); Pedro Cuesta Valiño (Universidad de León, Facultad de Ciencias Económicas y Empresariales, Spain)
    Abstract: The evolution of hypermarket retailers in recent years has been quite dynamic and they are trying to adjust their store formats in response to changing demographics and stronger competition. This means that hypermarkets are increasingly valued by consumers, compared to other commercial formats, which triggers the gradual disappearance of traditional markets but this doesn’t look like enough. In this context Corporate social responsibility (CSR) appears to be a subject of increasing interest amongst academics and practitioners because this policy benefits the economy, society and environment based on the idea that companies have wider responsibilities beyond commerce. This is not a new concept but when other strategies aren’t getting hoped results perhaps it’s possible to build loyalty with clients through this way for creating and sustain long-lasting relationships and repeat business. The purpose of this study was to disaggregate CSR into four dimensions based on hypermarket customer perception: (1) legal, (2) philanthropic, (3) economic, (4) environmental dimensions, and examine how each dimension would affect satisfaction and loyalty in hypermarkets. The findings can provide managers with insights into which dimensions of CSR activities would improve to increase loyalty and the important of CSR in hypermarket customer.
    Date: 2013–09
  27. By: Michael Greenacre
    Abstract: Most methods of multivariate analysis rely on a measure of proximity between individual cases or samples to quantify inter-sample differences. The choice of this measure is fundamental to the method and its subsequent results. For example, when data are abundance counts of a set of species at several sampling locations, some approaches rely on the Bray-Curtis dissimilarity measure between samples, while other approaches rely on the chi-square distance. A set of observed species abundances at a location has both size, in the form of the overall levels of the species counts, and shape, in the form of the relative values of the counts. The aim of this report is to clarify how much the chosen proximity measure is capturing differences in size between samples as opposed to differences in shape. After motivating the idea using physical morphometric data, the study is extended to nonnegative data in general, with special focus on abundance counts and biomass estimates, which are ubiquitous in ecological research.
    Keywords: Bray-Curtis dissimilarity, chi-square distance, cluster analysis, correspondence analysis, multivariate analysis, ordination, visualization.
    JEL: C19 C88
    Date: 2014–09

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