nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒01‒26
twenty-two papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Universities' Role as Knowledge Sources for Product Innovations By Kohei Nishikawa; Daisuke Kanama
  2. Relations between innovation activities and exports in food and agriculture firms By Alarcón, Silverio; Sánchez, Mercedes
  3. An Innovation Policy Framework: Bridging the Gap between Industrial Dynamics and Growth By Braunerhjelm, Pontus; Henrekson, Magnus
  5. Mobility of ideas for innovation: The role of inventor-specific knowledge flows By Koski, Heli; Pajarinen, Mika
  6. Isolation and Innovation – Two Contradictory Concepts? Explorative Findings from the German Laser Industry By M. Kudic; Wilfried Ehrenfeld
  7. Tacit knowledge, embedded agency and learning: local nodes and global networks By Lam, Alice
  8. Identification of regions with less developed research and innovation systems By Trippl, Michaela; Asheim, Björn; Miorner, Johan
  9. Business Strategy and the Management of Firms By Mu-Jeung Yang; Lorenz Kueng; Bryan Hong
  10. Assessing the Role of PPPs in Addressing Proximity and Systemic Challenges in Regional Innovation Policy By Kristensen, Iryna
  11. Technological parks and the innovation activity of enterprises in the industrial networks – developed regions vs. the intermediate ones By Jadwiga Goraczkowska
  12. An empirical study of technological leadership and persistence in product innovation By Roberto Fontana,; Diana Moriniello,; Andrea Vezzulli Abstract. We study how technological leadership affects persistence in product innovation. Relying upon a database of 1818 products marketed between 1990 and 1999 by 265 firms active in three markets of the Local Area Network (LAN) industry we first construct a measure of technological leadership and then relate this measure to persistence in innovation. We find that leaders are systematically more persistent innovators than laggards. We also find that leaders in one market can also systematically innovate in a related and adjacent market. Finally, we find a positive correlation between prior patenting activity and persistence in product innovation.
  13. Capacities and Absorptive Barriers for International R&D Spillovers through Intermediate Inputs By Neil Foster-McGregor; Johannes Pöschl; Robert Stehrer
  14. Does Market Orientation in Small-Scale farms pay off? A study of Innovation behaviour in Spanish agriculture By López-Mosquera, Natalia; Álvarez-Coque, José María García; Sánchez, Mercedes
  15. Universities,Industrial Clusters, and Economic Development in Egypt By Ali, Hoda Abd El Hamid
  16. Organizational Citizenship Behaviors in Small and Medium Enterprises in the Context of Leadership Behavior By Kararti, Tuncay; Yuksekbilgili, Zeki
  17. Are you creating or capturing value? A dynamic framework for sustainable strategy By Paul Verdin; Koen Tackx
  18. The Analysis of Leadership Formation in Networks Based on Shapley Value By Belik, Ivan; Jörnsten, Kurt
  19. Technical Efficiency, Ecological Efficiency and Grassland Ecological Performance of Grazing in China By Huang, Wei; Brümmer, Bernhard; Huntsinger, Lynn
  20. Export Performance and Survival in Russia: Why some Regions grow fast and others don't By Sergey Kadochnikov; Anna Fedyunina
  21. Managerial delegation in a dynamic renewable resource oligopoly By L. Lambertini
  22. Increasing the competitiveness through development of an integrated market of agricultural products By Miličić, Vesna; Udovč, Andrej

  1. By: Kohei Nishikawa; Daisuke Kanama
    Abstract: This study verified innovation objectives for Japanese SMEs' access to university knowledge the effects of university knowledge on innovation outcomes. The analysis found the following three points. First, Japanese SMEs do not access university knowledge strategically according to innovation objectives but decide whether to use university knowledge in consideration of such factors as proactive R&D spending, financial constraints on innovations and the effectiveness of legal means to secure profit from innovations. Next, product innovations for "improving product or service quality," "expanding product or service lineups," "replacing existing products or services" and "exploring new markets" can lead to financial successes without university knowledge, rather than with such knowledge. Finally, the utilization of university knowledge does not necessarily lead to greater technological capabilities. In Japan, science, technology and innovation policy has strongly encouraged university-industry collaboration from later 1990¡¯s aiming to support innovation activities for SMEs. The results of this study do not confirm the total effects of the policy. Length: 38 pages
  2. By: Alarcón, Silverio; Sánchez, Mercedes
    Abstract: The paper examines the innovation and export strategies of Spanish food and agriculture firms. It is based on a sample of these firms selected by PITEC for the period 2003-2010. The results show the key role of internal innovation efforts in international commercial activity. This highlights the importance of the capacity to absorb internal innovation efforts. Furthermore, process innovation has a greater effect than product innovation on the internationalization strategy, both for the agricultural and the food firms.
    Keywords: R&D, product innovation, process innovation, internationalization, agrifood firms, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–08
  3. By: Braunerhjelm, Pontus (Swedish Entrepreneurship Forum); Henrekson, Magnus (Research Institute of Industrial Economics (IFN))
    Abstract: This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity.
    Keywords: Entrepreneurship; Innovation; Institutions; Innovation policy; R&D; Technology transfer; University-industry relations
    JEL: J24 O31 O32 O57
    Date: 2015–01–12
  4. By: Paola Cardamone; Valeria Pupo (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)
    Abstract: This paper utilizes the Efige data (2007-2009) to identify the determinants of university-industry cooperation in five European countries (France, Germany, Italy, Spain, UK). We use a probit model for firm level data which incorporates variables of innovation activities and traditional determinants of R&D cooperation. The results of analysis support the view that the relationships between firms and universities have a high degree of heterogeneity. Traditionally evaluated firm variables, such as age, exporting, belonging to a sector, process innovation, are significant in only some countries. There are also common patterns: the probability of cooperating with universities increases for innovative firms and firms with R&D capacity in almost all countries. Policies in support of R&D and size are also an important factor.
    Date: 2015–01
  5. By: Koski, Heli; Pajarinen, Mika
    Abstract: Our data from 351 innovating firms for the years 2001–2012 generally suggest that patentable ideas are strongly linked to the mobility of individual inventors, or that the knowledge flows transmitted are sticky inventor-specific. In other words, the larger the knowledge pool of an inventor entering (leaving) the firm, the more the firm’s innovation performance increases (decreases). However, our separate estimations for six different technology classes suggest that this does not apply for all technologies. Our data indicate that the knowledge flows are mobile inventor-specific for chemicals and pharmaceuticals and mechanical engineering such that the mobility of an inventor to a firm increases its innovation performance but the mobility of an inventor from a firm does not affect its innovation performance. We further find that particularly innovation coopetition (i.e., collaboration with a firm’s competitors) is an important source of knowledge spillovers. Furthermore, the magnitude of overall localized innovation activity positively relates to the firm’s innovation performance providing support for agglomeration externalities.
    Keywords: labor mobility, knowledge spillovers, patents, innovation
    JEL: J62 D22 D62 L2 O3
    Date: 2015–01–05
  6. By: M. Kudic; Wilfried Ehrenfeld
    Abstract: We apply a network perspective and study the emergence of core-periphery (CP) structures in innovation networks to shed some light on the relationship between isolation and innovation. It has been frequently argued that a firm’s location in a densely interconnected network area improves its ability to access information and absorb technological knowledge. This, in turn, enables a firm to generate new products and services at a higher rate compared to less integrated competitors. However, the importance of peripheral positions for innovation processes is still a widely neglected issue in literature. Isolation may provide unique conditions that induce innovations which otherwise may never have b een invented. Such innovations have the potential to lay the ground for a firm’s pathway towards the network core, where the industry’s established technological knowledge is assumed to b e lo cated. The aim of our paper is twofold. Firs tly, we propose a new CP indicator and apply it to analyze the emergence of CP patterns in the German laser industry. We employ publicly funded Research and Development (R&D) cooperation pro ject data over a period of more than two decades. Secondly, we explore the paths on which firms move from isolated p ositions towards the core (and vice versa). Our exploratory results op en up a number of new research questions at the intersection between geography, economics and network research.
    Keywords: innovation networks, core-p eriphery, laser industry
    JEL: C45 D85 O31 O32
    Date: 2015–01
  7. By: Lam, Alice
    Abstract: Tacit knowledge, embedded agency and learning: local nodes and global networks
    Keywords: knowledge, tacit knowledge, learning, innovation, agency
    JEL: Z0 Z00 Z1
    Date: 2014–03
  8. By: Trippl, Michaela (CIRCLE, Lund University); Asheim, Björn (CIRCLE, Lund University); Miorner, Johan (CIRCLE, Lund University)
    Abstract: The aim of this working paper is to contribute to the debate on how to identify regions with less developed research and innovation systems. We look at both conceptual and empirical approaches that figure prominently in scholarly work on regional innovation systems. Based on a critical review and discussion of the literature we shed light on a large number and variety of barriers and weaknesses that may hamper regional innovation and industrial change. It is shown in this paper that the regional innovation system concept can essentially inform the current debate on the design and implementation of smart specialisation strategies. It offers rich insights into various dimensions of regional innovation systems that may be weakly developed and allows for the development of typologies that capture the heterogeneity of these systems. We also demonstrate that empirical approaches to identify regions with less-developed research and innovation systems fall short of taking account of the conceptual advances made in the recent past.
    Keywords: Regional innovation systems; innovation barriers; regional industrial change; smart specialisation strategies
    JEL: O30 O31 O38 R10 R11 R50
    Date: 2015–01–02
  9. By: Mu-Jeung Yang; Lorenz Kueng; Bryan Hong
    Abstract: Business strategy can be defined as a firm's plan to generate economic profits based on lower cost, better quality, or new products. The analysis of business strategy is thus at the intersection of market competition and a firm's efforts to secure persistently superior performance via investments in better management and organization. We empirically analyze the interaction of firms' business strategies and their managerial practices using a unique, detailed dataset on business strategy, internal firm organization, performance and innovation, which is representative of the entire Canadian economy. Our empirical results show that measures of business strategy are strongly correlated with firm performance, both in the cross-section and over time, and even after controlling for unobserved profit shocks exploiting intermediates utilization. Results are particularly striking for innovation, as firms with some priority in business strategies are significantly more likely to innovate than firms without any strategic priority. Furthermore, our analysis highlights that the relationship between strategy and management is driven by two key organizational trade-offs: employee initiative vs. coordination as well as exploration of novel business opportunities vs. exploitation of existing profit sources.
    JEL: D22 D23 D24 D92 M21
    Date: 2015–01
  10. By: Kristensen, Iryna (University of Salzburg)
    Abstract: Public-Private Partnerships (PPPs) are argued to be able to add greater value to innovation processes by fortifying the quality of innovation systems by linking regional public and private actors together and exploiting a wide range of sources of innovation. The effectiveness of interface management and resource allocation as well as the dynamics of multifaceted interactions, however, will strongly depend on the degree of proximity between innovation agents. While it is difficult to determine the optimal degree of proximity for multi-sector cooperation in addressing systemic challanges, there is little doubt that certain level of cognitive, organizational, institutional, social and geographical closeness is conductive to interaction and learning. This paper applies a partnership-based approach to investigate the interrelation between dimensions of proximity and systemic failures and observes potential regional and sectoral variations with respect to proximity dimensions and their implication for regional innovation system efficiency. A matrix linking five dimensions of proximity with four categories of systemic problems serves as a basis for analysis. Six PPPs from two regions in Sweden (i.e. Sydsverige and Övre Norrland) are selected for empirical study.
    Keywords: Public-Private Partnerships; Regional Innovation Policy
    JEL: L32 O38
    Date: 2015–01–08
  11. By: Jadwiga Goraczkowska (Uniwersytet Zielonogorski, Poland)
    Abstract: Currently, technological parks constitute the most organisational and conceptually developed type of innovation centres and entrepreneurship. This results in the fact that they can be encountered in all highly developed countries in the world. They are also formed in the catching-up countries. However, one should consider whether the stimulation of innovation in the countries, which are not based on knowledge through institutional solutions used in the developed countries will turn out to be effective. Because between these countries there is a technological gap. The aim of the article was therefore to determine, using the probit modelling, the direction and strength of technological parks on the innovation activity. The study covered two provinces: Silesian, which is one of the most developed regions in Poland and Pomeranian with the intermediate industrial system. The influence of technological parks on innovation was determined based on the survey conducted in 1453 industrial enterprises. The main conclusions are brought down to the following theses: (1) using the technological parks increases the chance for the implementation of new solutions by enterprises, (2) parks to a greater extent stimulate the innovation activity in the developed province, (3) enterprises entering in the cross-regional network relations favours the selection of the technological park as the catalyst for innovation processes.
    Keywords: innovation, industry, technological parks, network
    JEL: L60 O31 O32
    Date: 2014–12
  12. By: Roberto Fontana,; Diana Moriniello,; Andrea Vezzulli Abstract. We study how technological leadership affects persistence in product innovation. Relying upon a database of 1818 products marketed between 1990 and 1999 by 265 firms active in three markets of the Local Area Network (LAN) industry we first construct a measure of technological leadership and then relate this measure to persistence in innovation. We find that leaders are systematically more persistent innovators than laggards. We also find that leaders in one market can also systematically innovate in a related and adjacent market. Finally, we find a positive correlation between prior patenting activity and persistence in product innovation.
    Date: 2014–12
  13. By: Neil Foster-McGregor (The Vienna Institute for International Economic Studies, wiiw); Johannes Pöschl (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Abstract Trade in goods and services is likely to be an important channel for international knowledge diffusion. This paper considers the extent of R&D spillovers through intermediate inputs for a sample of up to 40 developed and developing countries. Results suggest that such spillovers are present and are economically important. We find that countries and industries initially further behind the technological frontier enjoy stronger foreign R&D spillovers. Furthermore, foreign R&D spillovers are stronger in countries with greater absorptive capacity as measured by average years of secondary schooling and R&D spending. In terms of absorption barriers, the results are mixed With the exception of regulations on temporary workers we find that stronger labour market regulation and greater union density is associated with lower foreign R&D spillovers. The evidence for other absorption barriers related to product market, financial and investment regulation provide however no evidence of low regulation encouraging foreign R&D spillovers, with - in some cases - the reverse being found to hold true. Finally, we find that stronger levels of IPR protection can limit the extent of foreign R&D spillovers, possibly by limiting the ability to copy and borrow technology from abroad.
    Keywords: R&D spillovers, intermediates trade, productivity
    JEL: F15 O14 O19
    Date: 2014–10
  14. By: López-Mosquera, Natalia; Álvarez-Coque, José María García; Sánchez, Mercedes
    Abstract: The paper underlines the importance of adopting a ‘market-orientation’ strategic approach in order to improve the performance of the firms, previously influenced by the ‘adoption of innovations’ of interest to the agricultural firms in two Spanish regions. The methodology selected has been a Multi-Group Structural Equation Modelling applied to the data obtained by personal interviews to a sample of farmers. Agricultural producers are more oriented, from the market point of view, to their regular customers and to controlling the quality of their production. The results also show a positive impact of market orientation activities on the performance to all firms.
    Keywords: strategic decisions, market orientation, adoption of innovation, SEM multigroup analysis, firm performance, Research and Development/Tech Change/Emerging Technologies,
    Date: 2014–08
  15. By: Ali, Hoda Abd El Hamid
    Abstract: This paper explores the role of industrial clusters in the development of the Egyptian universities & research institutes (URIs), and economic performance. The study hypothesizes that the large industrial clusters in Egypt are old and traditional, and have weak impact on URIs, and economic performance. To this end, we examine Egypt regions where that contain long-existing and traditional industrial clusters are compared to all other regions. The analysis is conducted separately for seven industries, and by using a Mann-Whitney U test and a spearman correlation we find that the more recent and technical industrial clusters in Egypt have a positive and significant impact on URIs , but they have a weak impact on economic performance. The Egyptian experience suggests that the most important contribution of clusters to URIS is one in which corporations contribute money to universities, or enter in to informal consulting arrangements with a professor, neither of which typically of professional patent applications or even through the mobility of university graduates.
    Keywords: Egypt, universities and research institutes, clusters, National innovation system, and development
    JEL: O1 O12 O14 O3
    Date: 2100
  16. By: Kararti, Tuncay; Yuksekbilgili, Zeki
    Abstract: The purpose of this paper is to find out “What is the effect of different types of leadership behavior on organizational citizenship behavior shown by employees within small and medium enterprises” Past literature research in the field of small and medium enterprises shows that SMEs research is related to the human research management. Most of past research about leadership behavior has been done on large organization. A little level of research about leadership behavior has been done on small and medium level enterprises. The question arises that leadership behavior on large organizational are same as in small and medium enterprises or different. Due to the personal and close relationship, short communication, informality and hierarchy structure cause the leader to behave in different way within small and medium size enterprises. These factors have a different effect by the leader toward their employees which is helpful to motivate the employees to perform beyond the requirement. It is expected that transformational leaders have a strong and positive effect on organizational citizenship behavior shown by employees as transformational leader encourage the employees in order to perform beyond the requirement. It is also expected that contingent rewarding leadership behavior have positive effect on employees to show organizational citizenship behavior because after getting reward upon their performance, they feel more motivated to perform more than the requirement. Management by exception has two categories which are active behavior and passive behavior. It is expected that management by exception active have a positive effect because he works in an active way. He can find mistakes, failure and errors before its effect and try to solve these mistakes, failure and error as soon as possible. It is expected that management by exception passive have negative behavior because passive leader waiting for mistakes, failures and errors. Trust is also an important factor between leadership behavior and employees. It is accepted that some certain degree of trust motive the employees to show organizational citizenship behavior. Next to this it also help the employees to perform beyond the requirement. The data were collected from the past researcher in order to find out results. Past research shows that when firm face serious problems or mistake, errors or any failure leader should be there in order to solve problems, mistakes, failure and error. Leader in small and medium enterprise are required to give the authority to the employees in order to solve problems themselves. Leader should also create certain level of trust which is encouraging the employees to show organizational citizenship behavior. Most of leader in small and medium enterprises do not know about their effect on employees. This research is based on past research. This research make aware the leader, how to influence the employees to show organizational citizenship behavior.
    Keywords: leadership behavior, leadership, leadership in SME
    JEL: M12 M14
    Date: 2014–07–01
  17. By: Paul Verdin; Koen Tackx
    Abstract: Is value the holy grail for every company? Definitely it is something executives, investors and researchers are interested in since decades. If we only look at 4 major strategy journals over the last 20 years (Strategic Management Journal, California Management Review, Harvard Business Review and Sloan Management Review), together they published 189 articles with the word value in the title, meaning that on average about every month a new article was published focusing on the concept. Yet, value is perhaps one of the most used and misused terms in the history of management literature. To say the least, a lot of confusion persists not only about the meaning of the term, even more about ways to achieve it in a sustainable way. In this article, we start from a clear distinction between value creation and valuecapturing and propose a simple and intuitive framework showing the critical role of managing the interaction and the dynamics between these two strategic imperatives for achieving sustainable success for any company. We illustrate the framework with recent data from companies across a variety of industries providing further support for the relevance of the model.
    Date: 2015–01–08
  18. By: Belik, Ivan (Dept. of Business and Management Science, Norwegian School of Economics); Jörnsten, Kurt (Dept. of Business and Management Science, Norwegian School of Economics)
    Abstract: In the given research we analyse how an agent can move towards leadership in a socio-economic network. For the node’s (i.e., agent’s) importance measure we use the Shapley value (SV) concept from the area of cooperative games. We consider SV as the node’s centrality that corresponds to the significance of the agent within the socio-economic network. Using the polynomial algorithm developed by Aadithya, Ravindran, Michalak, & Jennings (2010) to compute SVs we analyze the way of creating new linkages to increase an agent’s significance (i.e., importance) in networks.
    Keywords: Socio-economic networks; Shapley value; leadership
    JEL: C00
    Date: 2015–01–09
  19. By: Huang, Wei; Brümmer, Bernhard; Huntsinger, Lynn
    Abstract: Incorporating the ecological variable of grassland Net Primary Productivity (NPP) into the production function - to be representative of grassland quality - is a new step toward the ecological efficiency analysis under the field of productivity and efficiency analysis. We measure the technical efficiency, ecological performance indicator and ecological efficiency of grazing using a multi-outputs and multi-inputs stochastic input-oriented distance function. The average technical efficiency is estimated to be 0.90 when taking grassland NPP into account, implying that cost of grazing inputs can be decreased by 10% without any deduction of outputs. The ecological efficiency is estimated to be 0.83 and the average ecological performance indicator is 0.17.
    Keywords: Technical efficiency, Ecological efficiency, Ecological performance indicator, Net primary productivity (NPP), input distance function, Productivity Analysis,
    Date: 2014–08
  20. By: Sergey Kadochnikov; Anna Fedyunina
    Abstract: In this paper, we investigate the relationship between export performance and economic growth in Russian regions. We propose a methodology for decomposition of export growth into intensive and extensive margins and distinguish between product- and geographic extensive components within extensive margin. An empirical analysis suggests that higher growth rates in Russian regions are associated with higher intensive margin. We reveal significant differences in export survival of differentiated and homogeneous flows and find evidence of strong effects of distance and institutions on export survival. We argue that Russian regions would experience higher economic growth if they were able to improve their export performance at the intensive margin by providing lower transport costs to the business and by enhancing higher quality of institutions.
    Keywords: export performance, economic growth, intensive margin, extensive margin, export survival, Russian regions
    JEL: F14 R1
    Date: 2015–01
  21. By: L. Lambertini
    Abstract: I propose a differential oligopoly game of resource extraction under (quasi-static) open-loop and nonlinear feedback strategies, where firms are managerial and two alternative types of delegation contract are considered. Under open-loop information, delegation expands the residual steady state resource stock. Conversely, under nonlinear feedback information the outcome depends on the structure of managerial incentives. If sales are used, once again delegation favours resource preservation. On the contrary, if market shares are included in the delegation contract, this combines with an underlying voracity effect in shrinking the steady state volume of the resource.
    JEL: C73 L13 Q2
    Date: 2015–01
  22. By: Miličić, Vesna; Udovč, Andrej
    Abstract: In the paper the case of cross-border area of Gorizia in Italy and Nova Gorica, Šempeter-Vrtojba in Slovenia is studied in terms of the development of an integrated market of agricultural products and the supply of services and real assets. Market research includes the analysis of the capacity of local production, the range of local products, and the consumption needs of local products within the study area. The main conclusion is that consumers in first place put the emphasis on the quality of local products and that efficient united selling point for local products needs to be established in order to sufficiently meet consumers’ demand.
    Keywords: food security, consumer behaviour, market research, supply chain, Slovenia-Italia, Marketing,
    Date: 2014–08

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