nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2014‒12‒19
eighteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation and productivity in services: Empirical evidence from Latin America By Crespi G.A.; Tacsir E.; Vargas F.
  2. Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles By René Bohnsack; Jonatan Pinkse; Ans Kolk
  4. Cluster Policies and Firm Selection: Evidence from France By Lionel Fontagné; Pamina Koenig; Florian Mayneris; Sandra Poncet
  5. Capability Lifecycle and its motivating force on strategy: the case of Green IT/S Dynamic Capability By Paola Floreddu; Claudio Vitari
  6. Combining technology and work organization: An analysis of complementarity between IT and decentralization across firms of different size By Rasel, Fabienne
  7. A Theory of Trade Liberalization and Innovations with Heterogeneous Firms By Christian Rutzer
  8. European competitiveness - A semiparametric stochastic metafrontier analysis at the firm level By Verschelde, Marijn; Dumont, Michel; Rayp, Glenn; Merlevede, Bruno
  10. An analysis of conditions and the state of development of the agri-food clusters in Poland By Figiel, Szczepan; Kuberska, Dominika; Kufel, Justyna
  11. A consistent set of multilateral productivity approach-based indicators of price competitiveness By Fischer, Christoph; Hossfeld, Oliver
  12. University Technology Transfer offices : the search for identity to build legimacy By Conor O'kane; Vincent Mangematin; Will Geoghegan; Ciara Fitzgerald
  13. Trade Costs, Financial Constraints, and Firm Performance in Developing Countries By TSENG, ERIC
  14. Are intangibles more productive in ICT-intensive industries? Evidence from EU countries By Chen, Wen; Niebel, Thomas; Saam, Marianne
  15. Bargaining in vertical relationships and suppliers' R&D profitability By Köhler, Christian
  16. Moving Towards a More Dynamic Business Sector in Spain By Alberto González Pandiella
  17. The Impact of Top Management Team Characteristics on Firms Growth. By Colombelli, Alessandra
  18. Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance By Flabbi, Luca; Macis, Mario; Moro, Andrea; Schivardi, Fabiano

  1. By: Crespi G.A.; Tacsir E.; Vargas F. (UNU-MERIT)
    Abstract: This paper analyses and compares the determinants of innovation in the service industry and its impact on labour productivity at the firm level in three countries of Latin America Chile, Colombia, and Uruguay. The main findings show that, similar to what is observed in the manufacturing industry, service firms that invest the most in innovation activities are more likely to introduce changes or improvements in their production process and/or product mix, and those firms that innovate have higher labour productivity than non-innovative firms. Size was found to be a less relevant determinant of innovation in services than in manufacturing, suggesting that the need for infrastructure and associated sunk costs are lower in services. Conversely, cooperation was found to be far more important for innovation in services than in manufacturing, in line with the more interactive nature of innovation in services. Yet, large differences in statistical significance and size of the coefficients of explanatory variables among the countries studied suggest that the framework conditions where a firm operates have an important role in innovation decisions.
    Keywords: Microeconomic Analyses of Economic Development; Industrialization; Manufacturing and Service Industries; Choice of Technology; Innovation and Invention: Processes and Incentives; Technological Change: Choices and Consequences; Diffusion Processes; Economic Growth and Aggregate Productivity: General; Economywide Country Studies: Latin America; Caribbean;
    JEL: O12 O14 O31 O33 O40 O54
    Date: 2014
  2. By: René Bohnsack (University of Amsterdam Business School - University of Amsterdam Business School); Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam)
    Abstract: Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and overcome the barriers that stand in the way of their market penetration. A key issue is the respective impact of incumbent and entrepreneurial firms' path-dependent behaviour on the development of such new business models. Embedded in the literature on business models, this paper explores how incumbent and entrepreneurial firms' path dependencies have affected the evolution of business models for electric vehicles. Based on a qualitative analysis of electric vehicle projects of key industry players over a five-year period (2006-2010), the paper identifies four business model archetypes and traces their evolution over time. Findings suggest that incumbent and entrepreneurial firms approach business model innovation in distinctive ways. Business model evolution shows a series of incremental changes that introduce service-based components, which were initially developed by entrepreneurial firms, to the product. Over time there seems to be some convergence in the business models of incumbents and entrepreneurs in the direction of delivering economy multi-purpose vehicles.
    Keywords: Sustainable technology; business models, evolution; path dependencies; electric vehicles
    Date: 2014
  3. By: Juana Sanchez
    Abstract: This paper uses new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011 to relate the discrete innovation choices made by U.S. companies to features of the company that have long been considered to be important correlates of innovation. We use multinomial logit to model those choices. Bloch and Lopez-Bassols (2009) used the Community Innovation Surveys (CIS) to classify companies according dual, technological or output-based innovation constructs. We found that for each of those constructs of innovation combinations considered, manufacturing and engaging in intellectual property transfer increase the odds of choosing innovation strategies that involve more than one type of categories (for example, both goods and services, or both tech and non-tech) and radical innovations, controlling form size, productivity, time and type of R&D. Company size and company productivity as well as time do not lean the choices in any particular direction. These associations are robust across the three multinomial choice models that we have considered. In contrast with other studies, we have been able to use companies that do and companies that do not innovate, and this has allowed to rule out to some extent selectivity bias.
    Keywords: Innovation, R&D, productivity, intellectual property, generalized logistic regression, choice models
    Date: 2014–10
  4. By: Lionel Fontagné (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Department of Economics - European University Institute, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Pamina Koenig (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Florian Mayneris (UCL - Université Catholique de Louvain - Université Catholique de Louvain (UCL) - Belgique, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique); Sandra Poncet (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: In this paper, we shed light on the selection of the benefi ciaries from the French competitiveness cluster policy which was launched in 2005 and extended to 2012. We disentangle the selection and self-selection eff ects, as emphasized in the theoretical literature on regional and industrial policy. Our main conclusion is that winners were (self-)selected at both steps of the procedure, and that this holds for the three cluster types: worldwide clusters , potentially worldwide clusters and national clusters . We thus provide a methodology which allows us to contrast the e ffective outcomes of the selection process and the official objectives of cluster policies in terms of targeting, and which thus helps in their econometric evaluation.
    Keywords: Competitiveness, clusters, international trade, fi rm selection
    Date: 2013–12–09
  5. By: Paola Floreddu (Università di Cagliari - Università di Cagliari); Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: While a great amount of literature has focused on dynamic capability and IT dynamic capabilities, there has been little theory and systematic research done on their lifecycle. Based on the dynamic capability and IS literature, this paper aims to contribute to this body of knowledge by studying the lifecycle of the Green Information Technologies/Systems (IT/S). Dynamic Capability is defined as the two-fold organizational process of: (1) recognizing the role played in ecological sustainability by the Information Technologies and Systems (IT/S), and (2) the contribution made to the ecological sustainability by the IT/S. We advance a research model aimed at understanding the role of the Green IT/S' Dynamic Capability in choosing and managing green IT/S strategies. Keywords: Dynamic
    Keywords: Dynamic capabilities framework; Green IT/IS, Capabilities; Capability Lifecycle; Green IT/S strategies
    Date: 2013
  6. By: Rasel, Fabienne
    Abstract: This paper examines whether information technology (IT) and decentralized work organization are complementary only for large firms or also for smaller firms. Empirical evidence, which suggests complementarity between IT and decentralization, is mainly based on large firms. Using data from a sample of 3292 SMEs and of 598 larger firms from the manufacturing and service sector in Germany, I can observe firms' IT intensity in terms of enterprise software and computer use and whether firms have a decentralized work organization. I find that SMEs with decentralized work practices tend to use IT more intensively. Moreover, for the sample of SMEs, IT and decentralized work organization are individually associated with higher productivity but the combination of IT and decentralization does not yield a productivity premium. Contrarily, for the sample of larger firms, the results show that the productivity of IT depends positively on decentralization. The findings suggest that combining IT and decentralized work organization seems to be a successful strategy only for larger firms.
    Keywords: information technology,decentralized work organization,complementarity,productivity,enterprise software,firm-level data
    JEL: D22 D24 L20 O33
    Date: 2014
  7. By: Christian Rutzer (University of Basel)
    Abstract: This paper extends the firm heterogeneity model of Melitz (2003) by introducing a new concept of endogenous investments in process R&D. The novelty is that if a firm invests more in R&D its expected innovation return hazard rate stochastically dominates the return of less R&D investments. Due to this property, entrants invest more in R&D in response to trade liberalization. As a result, the aggregate productivity is affected by a reallocation of resources to more productive firms and a simultaneous increase in firms' investments in innovations, which is consistent with empirical findings. At the same time the firms' increased R&D investments lead to a sector distribution with a higher right-tail compared to the distribution prior to trade liberalization. Hence, the model gives an explanation for the empirically found differences in the distribution tails among sectors with different trade openness levels. Another advantage of this paper's framework compared to other trade models with innovations is its foundation in and extension of Melitz (2003). It enables most of the heterogeneous firms trade models to be extended by endogenous firm-level R&D in an empirically relevant and analytically tractable way.
    Keywords: Aggregate Level, Firm Size Distribution, Heterogeneous Firms, R&D Investments, Trade Liberalization
    JEL: F12 F13 O31
    Date: 2014
  8. By: Verschelde, Marijn; Dumont, Michel; Rayp, Glenn; Merlevede, Bruno
    Abstract: In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firm-level competitiveness in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency, noise and do not impose a functional form on the input-output relation. Using AMADEUS firm-level data covering 10 manufacturing sectors from seven EU15 countries, (i) we document substantial, persistent differences in competitiveness (with Belgium and Germany as benchmark countries and Spain lagging behind) and a wide technology gap, (ii) we confirm the absence of convergence in TFP between the seven selected countries, (iii) we confirm that the technology gap is more pronounced for smaller firms, (iv) we highlight the role of post-entry growth for competitiveness. JEL Classification: C14, D24, L25, M13, O33
    Keywords: competitiveness, cross-country analysis, firm heterogeneity, post-entry growth, total factor productivity
    Date: 2014–07
  9. By: Paul O'Sullivan (Economics, National University of Ireland, Maynooth);
    Abstract: This paper analyses the desirability of RJV formation when firms may choose their R&D investment before or after any demand uncertainty is resolved. If a R&D leader accommodates a follower, multiple Nash equilibria are possible under both R&D competition and RJV formation. If a R&D leader prevents activity by the follower, this is only expected to be profitable at very low spillover and unit R&D cost levels. Whether R&D leadership when competing in R&D is expected to be more profitable than waiting and forming a RJV will depend on unit R&D costs and spillovers. Maximising expected welfare may require an active role for government.
    JEL: D21 D81 L13
    Date: 2014
  10. By: Figiel, Szczepan; Kuberska, Dominika; Kufel, Justyna
    Abstract: The economic substance of the cluster concept. Key conditions for the emergence and development of agri-food clusters in Poland. Identification and spatial distribution of agri-food clusters. Examples of global agri-food clusters.
    Keywords: cluster, agri-food cluster, global cluster, Agribusiness,
    Date: 2014
  11. By: Fischer, Christoph; Hossfeld, Oliver
    Abstract: We propose a novel, multilaterally consistent productivity approach-based indicator to assess the international price competitiveness of 57 industrialized and emerging economies. It is designed to be a useful assessment tool for monetary policy authorities and, thereby, differs from previously proposed indicators, which are hardly applicable on a day-to-day basis. Special attention has been paid to an appropriate selection of price and productivity data in levels as opposed to indices, and to the treatment of country fixed effects when interpreting currency misalignments. The discussion of the results focuses on the larger economies of the sample. At the current juncture, and in contrast to the prevailing view, we find US price competitiveness to be above and China’s price competitiveness to be below its derived benchmark. JEL Classification: F31, C23
    Keywords: equilibrium exchange rates, panel cointegration, price competitiveness, productivity approach
    Date: 2014–08
  12. By: Conor O'kane (Department of Management - University of Otago); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Will Geoghegan (Whitman School of Management - Syracuse University); Ciara Fitzgerald (University College Cork - University College Cork)
    Abstract: Technology transfer offices (TTOs) are of strategic importance to universities committed to the commercialization of academic knowledge. Within the university, TTOs' relationship with academics and management is single agent-multiple principal. When two principals exist in an agency relationship, conflicting expectations can naturally arise. We explore how TTOs build legitimacy by shaping identity with university academics and management. In undertaking this research we draw on 63 interviews with TTO executives across 22 universities in the Ireland, New Zealand and the United States. We find that TTOs use identity-conformance and identity-manipulation to shape a dual identity, one scientific and the other business, with academics and management respectively. We show how this combination of identity strategies is ineffective for legitimizing the TTO. We propose that TTOs' identity shaping strategies are incomplete and need to incorporate a wholly distinctive identity to complement and reinforce preliminary legitimacy claims made through conformance and manipulation. We discuss the potential implications of these findings for scholars, TTO executives and university management.
    Keywords: Technology transfer office; legitimacy; identity; strategy;
    Date: 2014
  13. By: TSENG, ERIC
    Abstract: This paper extends on work done in the heterogenous-firms trade literature by addressing both heterogeneity in trade costs at the firm level as well as the existence of financial constraints. These extensions to the heterogenous-firms models are also applied in the context of a developing country. Utilizing a framework that endogenizes technological choice, the analysis shows that falling trade costs and improving credit markets (or less financial constraints) improve firm performance. Also, firm-level trade costs are shown to impact a firm’s ability to enter the export market, implying heterogeneity in trade costs at the firm level. The current results show inconclusive evidence for the effect of industry-level trade costs and financial constraints on the ability to enter the export market, but future additions to the robustness of the data in this working paper will address this issue.
    Keywords: International Trade Financial Constraints Firm Performance Trade Costs Heterogenous Firms, Financial Economics, International Development, International Relations/Trade, Productivity Analysis,
    Date: 2014
  14. By: Chen, Wen; Niebel, Thomas; Saam, Marianne
    Abstract: Using sectoral intangible investment data we confirm that intangible capital is a significant determinant of labour productivity growth. The sectoral setting further allows us to identify the differential impacts of intangible capital across industries with varying degrees of ICT intensity. Intangible capital appears to be significantly more productive in ICT-intensive sectors than in those that use little ICT. This finding remains robust across various alternative industry ICT intensity measures and aligns with the prior firm-level studies that place emphasis on the complementary role of intangible assets in ICT investment.
    Keywords: Intangible capital,ICT,economic growth,labour productivity
    JEL: E22 J24 O47
    Date: 2014
  15. By: Köhler, Christian
    Abstract: This paper explores the effect of bargaining in vertical relationships on the profitability of suppliers' R&D investments. Studies on the relationship between R&D and firm profitability mostly concentrate on the impact of horizontal market structure and neglect vertical interac-tions. Building on theoretical and empirical evidence about the effects of bargaining in vertical relationships, the crucial determinants of a supplier's bargaining power are identified as the market position and the degree of concentration in the buyer portfolio. With respect to R&D profitability the latter is expected to diminish returns from R&D, while the former is expected to increase it. The hypotheses are tested using a sample of 472 German manufactur-ing firms. The empirical findings support all hypotheses and highlight the importance of tak-ing a supplier's bargaining power into account when estimating R&D profitability. The esti-mated effects are considerable: for an average R&D performing supplier an increase of R&D intensity in 2010 by a percentage point would reduce profits by about 14 % in 2012 given the supplier depends completely on the largest three buyers and does hold an average market share. Contrastingly, a monopolist R&D performing supplier with average buyer concentra-tion would experience a profit increase by 10 % in 2012.
    Keywords: Bargaining,Firm performance,Vertical relationships
    JEL: D22 L22 O32
    Date: 2014
  16. By: Alberto González Pandiella
    Abstract: Policy efforts to revitalise entrepreneurship and investment in Spain are key to generating growth and new jobs. The government has a substantial reform program to make it easier to do business in Spain, which should in some cases be deepened. Boosting economic growth requires a new generation of high-growth companies and that resources flow towards the most productive firms. For this to happen, barriers to business growth have to be reduced by streamlining regulations and licencing procedures, internationalisation needs to be fostered, and competition strengthened. In addition, the negative impact of the crisis on companies, notably the high level of indebtedness and difficulties to obtain financing faced by some firms has to be relieved. This would be facilitated by more efficient insolvency procedures and further development of non-bank financing.<P>Dynamiser le secteur des entreprises en Espagne<BR>Les efforts faits par les autorités pour revitaliser l’entrepreneuriat et l’investissement en Espagne revêtent un rôle essentiel pour soutenir la croissance et la création d’emplois. Un important programme de réformes a été mis en oeuvre afin de faciliter l’activité d’entreprise en Espagne, dont certains aspects devraient être approfondis. Pour stimuler la croissance économique, il faut que voit le jour une nouvelle génération d’entreprises à forte croissance et que des ressources soient acheminées vers les entreprises les plus productives. Dans cette optique, les obstacles à la croissance des entreprises doivent être réduits en simplifiant les réglementations et les procédures d’agrément, l’internationalisation doit être encouragée et la concurrence doit être renforcée. En outre, les effets négatifs de la crise sur les entreprises, notamment le niveau élevé d’endettement et les difficultés rencontrées pour obtenir des financements, doivent être atténués, ce qui exige des procédures d’insolvabilité plus efficaces et un développement plus marqué des financements non bancaires.
    Keywords: venture capital, firm size, productivity, electricity, entrepreneurship, competitiveness, Spain, internationalisation, ports, constant market share analysis, judicial efficiency, insolvency, competition, exports, regulation, professional services, regulators, structure effect, licences, mutual guarantee schemes, young firms, business sector, credit register, trade specialisation, indebtedness, market share effect, corporate tax, ports, analyse des parts de marché constantes, effet de la structure, régulateurs, sociétés de caution mutuelle, secteur des entreprises, spécialisation du commerce, capital risque, certifications, effet de part de marché, services professionnels, endettement, impôt des sociétés, registre de crédit, électricité, insolvabilité, internationalisation, jeunes entreprises, efficacité judiciaire, réglementation, Espagne, compétitivité, entrepreneuriat, exportations, productivité, concurrence, taille des firmes
    JEL: D21 D40 F10 G21 G24 G33 H25 K20 L11 L12 L25 L50
    Date: 2014–11–13
  17. By: Colombelli, Alessandra (University of Turin)
    Abstract: This study attempts to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange’s market dedicated to young and growing companies. We investigate the post IPO growth of a panel consisting of 665 companies listed on the AIM from 1995 to 2006. Our empirical model is estimated using the GMM - System (GMM - SYS) estimator. Our findings confirm that small companies listed on the AIM grow at a faster rate after the IPO. It seems that both human capital and firm characteristics are important determinants of their fast growth. The results of this study carry some policy implications. Policy makers could take into account the relevance of an efficient financial system. Moreover, it is important to look at the process of transformation in the cultural and behavioural attitudes of many countries towards entrepreneurship.
    Date: 2014–10
  18. By: Flabbi, Luca (Inter-American Development Bank); Macis, Mario (Johns Hopkins University); Moro, Andrea (Vanderbilt University); Schivardi, Fabiano (Bocconi University)
    Abstract: We analyze a matched employer-employee panel data set and find that female leadership has a positive effect on female wages at the top of the distribution, and a negative one at the bottom. Moreover, performance in firms with female leadership increases with the share of female workers. This evidence is consistent with a model where female executives are better equipped at interpreting signals of productivity from female workers. This suggests substantial costs of under-representation of women at the top: for example, if women became CEOs of firms with at least 20% female employment, sales per worker would increase 6.7%.
    Keywords: executives' gender, gender gap, firm performance, glass ceiling, statistical discrimination
    JEL: M5 M12 J7 J16
    Date: 2014–10

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