nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒02‒05
27 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Localized Knowledge Spillovers: Evidence from the Agglomeration of American R&D Labs and Patent Data By Buzard, Kristy; Carlino, Gerald A.; Hunt, Robert M.; Carr, Jake; Smith, Tony E.
  2. Innovation and SMEs Patent Propensity in Korea By Han, Junghee; Heshmati, Almas
  3. Boosting the EU’s attractiveness to international R&D investments: what matters? What works? By Fernando Hervas Soriano; Iulia Siedschlag; Alexander Tuebke
  4. Internationalization and innovation of firms: evidence and policy By Carlo Altomonte; Tommaso Aquilante; Gábor Békés; Gianmarco I. P. Ottaviano
  5. Knowledge acquisition in small and medium-sized enterprises By Beata Glinkowska
  6. The Impact of External and Internal Factors on Strategic Management Practices of Agribusiness Firms in Tanzania By Dominic, Theresia; Theuvsen, Ludwig
  7. Cultural diversity, innovation and entrepreneurship: firm-level evidence from London By Neil Lee; Max Nathan
  8. The Impact of Foreign Firms on Industrial Productivity: A Bayesian-model averaging approach By TANAKA Kiyoyasu
  9. When does Innovation Matter for Exporting? By Blyde, Juan; Iberti, Gonzalo; Mussini, Micaela
  10. Knowledge spillovers from clean and dirty technologies By Antoine Dechezlepretre; Ralf Martin; Myra Mohnen
  11. Corporate Governance, Innovation and Firm Age: Insights and New Evidence. By Bianchini, Stefano; Krafft, Jackie; Quatraro, Francesco; Ravix, Jacques
  12. Export-Learning and FDI with Heterogeneous Firms By Amanda Jakobsson
  13. Strategic R&D Commitment and the Gains from Trade By Gerda Dewit; Dermot Leahy
  14. An Overview of Models of Distributed Innovation. Open Innovation, User Innovation, and Social Innovation By Garry Gabison; Annarosa Pesole
  15. Innovation, Governance and Competition By Roychoudhury, Saurav; Bhowmik, Anuj; Chattopadhyay, Srobonti
  16. Culturally clustered or in the cloud? location of internet start-ups in Berlin By Kristoffer Moeller
  17. ICT and environmental innovations in a complementary fashion. Is the joint adoption by firms economically visible? By Davide Antonioli; Grazia Cecere
  18. Exports, agglomeration and workforce diversity : an empirical assessment for German establishments By Brunow, Stephan; Grünwald, Luise
  19. Technology and Intergenerational Persistence: Theory and Some Evidence. By Brant Abbott; Giovanni Gallipoli
  20. Dynamic selection: an idea flows theory of entry, trade and growth By Thomas Sampson
  21. Optimal contracting and the organization of knowledge By William Fuchs; Luis Garicano; Luis Rayo
  22. Learn to teach, teach to learn: A within-pupil across-subject approach to estimating the impact of teacher subject knowledge on South African grade 6 performance By Debra Shepherd
  23. Does management matter in schools? By Nicholas Bloom; Renata Lemos; Raffaella Sadun; John Van Reenen
  24. Cultural Diversity: A Matter of Measurement By Nijkamp, Peter; Poot, Jacques
  25. Winning virtuous strategy creation by interlocking interconnecting directors in boards of directors in firms in information century By Ledenyov, Dimitri O.; Ledenyov, Viktor O.
  26. Institutions and Development in MENA Region: Evidence from the Manufacturing Sector By Arayssi, Mahmoud; Fakih, Ali
  27. Profit with purpose? a theory of social enterprise with experimental evidence By Timothy Besley; Maitreesh Ghatak

  1. By: Buzard, Kristy (Syracuse University); Carlino, Gerald A. (Federal Reserve Bank of Philadelphia); Hunt, Robert M. (Federal Reserve Bank of Philadelphia); Carr, Jake (The Ohio State University); Smith, Tony E. (University of Pennsylvania)
    Abstract: We employ a unique data set to examine the spatial clustering of private R&D labs, and, using patent citations data, we provide evidence of localized knowledge spillovers within these clusters. Jaffe, Trajtenberg, and Henderson (1993, hereafter JTH) provide an aggregate measure of the importance of knowledge spillovers at either the state or metropolitan area level. However, much information is lost regarding differences in the localization of knowledge spillovers in specific geographic areas. In this article, we show that such differences can be quite substantial. Instead of using fixed spatial boundaries, we develop a new procedure — the multiscale core-cluster approach — for identifying the location and size of specific R&D clusters. This approach allows us to better capture the geographic extent of knowledge spillovers. We examine the evidence for knowledge spillovers within R&D clusters in two regions: the Northeast Corridor and California. In the former, we find that citations are from three to six times more likely to come from the same cluster as earlier patents than in comparable control samples. Our results are even stronger for labs located in California: Citations are roughly 10 to 12 times more likely to come from the same cluster. Our tests reveal evidence of the attenuation of localization effects as distance increases: The localization of knowledge spillovers is strongest at small spatial scales (5 miles or less) and diminishes rapidly with distance. At the smallest spatial scales, our localization statistics are generally much larger than JTH report for the metropolitan areas included in their tests.
    Keywords: Spatial clustering; R&D; Knowledge spillover;
    JEL: O31 R12
    Date: 2015–01–01
  2. By: Han, Junghee (Chonnam National University); Heshmati, Almas (Jönköping University, Sogang University)
    Abstract: This paper analyzes the patent propensity as an outcome of innovative activities of regional SMEs. To achieve the aims, we apply robust regression analysis to estimate the models to test 5 research hypotheses using 263 firm level data located at Gwangju region in Korea. Our empirical results show that a firm's industry characteristics, such as machinery and automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz firms designated as innovative SMEs by the government are not performing differently than general firms. Only the CEO's academic credentials are positively related with propensity to patent. From the findings, we can conclude that patenting propensity is not directly related with a firm's characteristics but mainly to CEO's managerial strategy. Also, we cannot find evidence for policy effectiveness from public support given to InnoBiz firms as part of the state policy to nurture photonic industry to boost regional economic development. Given the lack of strong policy effects, a new industry policy should be considered to actively promote SMEs innovativeness.
    Keywords: patent propensity, photonic industry, SMEs growth, R&D, innovation, InnoBiz, Korea
    JEL: C51 D22 O31 O32
    Date: 2015–01
  3. By: Fernando Hervas Soriano (European Commission JRC-IPTS); Iulia Siedschlag (European Commission JRC-IPTS); Alexander Tuebke (European Commission JRC-IPTS)
    Abstract: This Policy Brief discusses recent evidence on patterns and trends in the internationalisation of EU corporate R&D activities and the factors which drive location choices. This evidence suggests that boosting international investment in R&D activities requires a combination of policy measures aimed at enhancing the knowledge base of locations, and investment promotion policies tailored to investors from different countries. The policy mix should include measures aiming at improving the efficiency of national and regional innovation systems, particularly through: a) Increasing the quality of education systems and skills, to enable the emergence of centres of research excellence, b) Facilitating the clustering of R&D activities, given the importance of proximity for knowledge spillovers.
    Keywords: international, R&D, investment, EU
    Date: 2014–12
  4. By: Carlo Altomonte; Tommaso Aquilante; Gábor Békés; Gianmarco I. P. Ottaviano
    Abstract: We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom). We find strong evidence of positive association among the three firm-level characteristics across countries and sectors. We also find that the positive correlation between internationalization and innovation survives after controlling for productivity, with some evidence of causality running from the latter to the former. Our analysis suggests that export promotion per se is unlikely to lead to sustainable internationalization because internationalization goes beyond export and because, in the medium-to-long term, internationalization is driven by innovation. We recommend coordination and integration of internationalization and innovation policies ‘under one roof’ at both the national and EU levels, and propose a bigger coordinating role for EU institutions.
    Keywords: Internationalization; innovation; firm-level data; exports; foreign direct investment; outsourcing
    JEL: F13 F23 O31 O38
    Date: 2014–04
  5. By: Beata Glinkowska (Uniwersytet Lodzki)
    Abstract: This article applies to the process of organizational knowledge acquisition by managers and specialists with possesses manager license. In the theoretical part explained concepts of knowledge, knowledge management, knowledge sources, the step of creating and acquiring knowledge. The research part focuses on the presentation and analysis of obtained results of research performed by the author.
    Keywords: small and medium- sized enterprises, manager, knowledge, absorption of knowledge, knowledge acquisition
    JEL: L21
    Date: 2015–01
  6. By: Dominic, Theresia; Theuvsen, Ludwig
    Abstract: All firms need to work out strategic plans to exploit the existing market, but they differ in their capacity to implement and manage strategies. Considering the industrial organization and resource-based views in the strategic management literature, we understand that firm attributes, resources and external environmental factors are critical links to strategic practices. With regard to African agribusiness firms, there is scant research on how these factors determine the successful application of strategic management practices. Therefore, this study uses empirical data from 229 agribusiness firms in Tanzania to obtain insights into the determinants of their choice of strategic management practices. The results show significantly that better strategic actions reside in the capabilities of firm managers, whereas many external factors, such as access to public infrastructure, did not turn out to have a significant influence. The findings have interesting implications for the management of agribusiness firms in African countries and other developing and emerging economies.
    Keywords: strategic management practices, agribusiness, structural modelling, Tanzania, Agribusiness, Agricultural and Food Policy, Marketing, Q13, Q18, M31, L10,
    Date: 2015–01
  7. By: Neil Lee; Max Nathan
    Abstract: A growing body of research is making links between diversity and the economic performance of cities and regions. Most of the underlying mechanisms take place within firms, but only a handful of organization-level studies have been conducted. We contribute to this underexplored literature by using a unique sample of 7,600 firms to investigate links among cultural diversity, innovation, entrepreneurship, and sales strategies in London businesses between 2005 and 2007. London is one of the world's major cities, with a rich cultural diversity that is widely seen as a social and economic asset. Our data allowed us to distinguish owner/partner and wider workforce characteristics, identify migrant/minority-headed firms, and differentiate firms along multiple dimensions. The results, which are robust to most challenges, suggest a small but significant “diversity bonus” for all types of London firms. First, companies with diverse management are more likely to introduce new product innovations than are those with homogeneous “top teams.” Second, diversity is particularly important for reaching international markets and serving London's cosmopolitan population. Third, migrant status has positive links to entrepreneurship. Overall, the results provide some support for claims that diversity is an economic asset, as well as a social benefit.
    Keywords: cultural diversity; innovation; entrepreneurship; management; immigration; economic development; diasporas; cities; London
    JEL: N0
    Date: 2013–07–02
  8. By: TANAKA Kiyoyasu
    Abstract: Inward foreign direct investment affects industrial productivity in a host country through a wide range of channels as the presence of foreign firms is heterogeneous across industries, regions, and their characteristics such as entry mode and nationality. Because a wide variety of potential variables pose serious model uncertainty, I adopt a Bayesian-model averaging (BMA) approach to estimate the impact of foreign firms on industry- and prefecture-level productivity in Japan. I find that the foreign presence may contribute to industrial efficiency directly through their above-average productivity and indirectly through positive spillovers in intra-industry and local backward linkages. These positive impacts are likely to occur as a result of the foreign firms being owned by North American and European investors and the foreign firms making joint venture and merger and acquisition (M&A) investments to enter the Japanese market. By contrast, the foreign presence in distant downstream sectors and local upstream sectors may have negative impacts.
    Date: 2015–01
  9. By: Blyde, Juan; Iberti, Gonzalo; Mussini, Micaela
    Abstract: A growing number of studies that look at the relationship between innovation and exports find that more innovation tends to allow firms to export more. But very little is known about the heterogeneous impacts of innovation on exports. Since innovation is not a costless activity, it is important to know the specific situations in which a firm most likely needs to innovate to raise its exports. Using data from Chile, we combine information on innovation activities at the firm level with a rich dataset on exports at the transaction level. We find that the firms that engage in innovation tend to export more than other firms because they are able to sell goods and target markets that reward innovation. We show that the goods and markets in which innovative exporters outperform non-innovative exporters are those where innovation can lead to substantial differences in terms of quality. Innovative firms do not have an edge in exporting goods and in targeting markets that do not reward innovation. In particular, innovative firms do not outperform non-innovative firms when exporting goods and penetrating markets in which differentiation in terms of quality is not possible or not relevant.
    Keywords: Innovation, exports, product quality
    JEL: F10 F14 O30
    Date: 2015–01–23
  10. By: Antoine Dechezlepretre; Ralf Martin; Myra Mohnen
    Abstract: How much should governments subsidize the development of new clean technologies? We use patent citation data to investigate the relative intensity of knowledge spillovers in clean and dirty technologies in two technological fields: energy production and transportation. We introduce a new methodology that takes into account the whole history of patent citations to capture the indirect knowledge spillovers generated by patents. We find that conditional on a wide range of potential confounding factors clean patents receive on average 43% more citations than dirty patents. Knowledge spillovers from clean technologies are comparable in scale to those observed in the IT sector. The radical novelty of clean technologies relative to more incremental dirty inventions seems to account for their superiority. Our results can support public support for clean R&D. They also suggest that green policies might be able to boost economic growth through induced knowledge spillovers.
    Keywords: Innovation spill-overs; Climate Change; Growth; Patents; Clean technology; Optimal climate policy
    JEL: H23 O30 O54 O55 Q58
    Date: 2014–09
  11. By: Bianchini, Stefano; Krafft, Jackie; Quatraro, Francesco; Ravix, Jacques (University of Turin)
    Abstract: This paper investigates the relationship between corporate governance (CG) and innovation according to firms’ age by combining insights from the recent strand of contributions analysing CG and innovation with the lifecycle literature. We find a negative relationship between CG and innovation which is stronger for young firms than for mature ones. The empirical analysis is carried out on a sample of firms drawn from the ISSR isk Metrics database and observed over the period 2003 -2008. The parametric methodology provides results that are consistent with the literature and supports the idea that mature firms are better off than young ones. We check for possible non-linearities by implementing a non-parametric analysis and suggest that the negative relationship between CG and innovation is mostly driven by higher values of CG.
    Date: 2015–01
  12. By: Amanda Jakobsson (Singapore Management University)
    Abstract: I present a dynamic general equilibrium model with heterogeneous firms that can innovate, learn how to export and then go on to become multinational firms. Entering the foreign market is a dynamic process where firms first learn how to export and then can learn how to adapt production to a low-wage location. In the model, innovation and international technology transfer are affected by both exporting and FDI which offers new insights about the effects of policy changes such as trade liberalization and intellectual property rights reform on consumer welfare. In particular, I disentangle the effects of such policy changes on reallocation of labor resources within regions: across activities (production, innovation, export-learning and adaption), across high-productivity and low-productivity firms, and within firms. I obtain higher rates of export-learning and FDI for high-productivity firms than for low-productivity firms. As a result, exporters are on average more productive than non-exporters, and multinational firms are on average more productive than exporters. In equilibrium, there are still some low-productivity exporters, some low-productivity multinational firms and some high-productivity non-exporters. Low-productivity firms export and engage in FDI but they are just not as successful in these activities as high-productivity firms.
    Date: 2014
  13. By: Gerda Dewit (Department of Economics, Finance and Accounting, Maynooth University.); Dermot Leahy (Department of Economics, Finance and Accounting, Maynooth University.)
    Abstract: This paper examines how trade liberalisation affects innovation, profits and welfare in a reciprocal markets model when firms pre-commit to R&D investment. First, we show that, for a range of trade costs, there are multiple equilibria, implying that the path of trade liberalisation is not unique. Second, welfare at “incipient” trade always exceeds welfare in autarky. Third, we show that, if the effectiveness of R&D is sufficiently high, trade always yields higher welfare than autarky. These new results suggests that when firms, operating in an oligopolistic environment, strategically precommit to R&D, the welfare gains from trade liberalisation are enhanced.
    Keywords: Reciprocal Markets, Strategic R&D Investment, Trade Costs, Trade Liberalisation, Effectiveness of R&D
    JEL: F12 F13 F15 L13
    Date: 2015
  14. By: Garry Gabison (European Commission – JRC - IPTS); Annarosa Pesole (European Commission – JRC - IPTS)
    Abstract: This report discusses models of distributed innovation and how they differ in their nature, effects, and origins. Starting from Open Innovation, the paper analyses its methodological evolution, some of its applications, and the opportunities to apply it in a social context. Open Innovation has gained traction in the last ten years and because of this popularity, Open Innovation has been endowed with numerous meanings. This paper dives into the large literature associated with Open Innovation. First, this paper describes Open Innovation. Second, it explains how Open Innovation has evolved from a linear model of innovation to a model that includes feedback loops. Third, it describes the parallel evolution of Open Innovation and User Innovation, where users are actively involved. This new perspective on the user involvement further contributes to the evolution of Open Innovation into Open Innovation 2.0. Finally, the paper considers the role of Open Innovation in tackling societal challenges and how and if this new innovation process could help Social Innovation to find ways to scale up and reproduce successful results.
    Keywords: Ditributed Innovation, Open Innovation, User Innovation
    Date: 2014–12
  15. By: Roychoudhury, Saurav; Bhowmik, Anuj; Chattopadhyay, Srobonti
    Abstract: We consider a two period career concern model where corporate governance is a decisive factor for innovation efforts by a manager. In the beginning of the frst period, a manager decides whether to innovate. Prior to the innovation decision, the ability of the manager is unknown to the firm but known to the manager and an expected wage is paid based on a probability distribution of managerial abilities. The success of the innovation is both a function of the managerial ability and the product market competition and the beliefs about the managerial ability is updated if the manager innovates and the wage is set for the second period accordingly. Our model predicts that the rate of innovation would be higher under a more democratic governance structure and relatively low product market competition. Using a panel dataset from 1990s, compiled from Aghion et al.(2013b) and Gompers, Ishii,and Metrick (2003), containing time-varying information of patent citations, R&D, product market competition, and Governance index, we show that there is a robust association between innovation and the quality of governance and this relationship is strongest in industries with relatively low competition.
    Keywords: Governance, Compeition
    JEL: G3
    Date: 2015–01–15
  16. By: Kristoffer Moeller
    Abstract: Knowledge based firms like IT companies do neither have a capital- nor a land intensive production. They predominantly rely on qualified labour and increasingly depend on the location of its (potential) employees. This implies that it is more likely that firms follow workers rather than the other way around. Contributing to the literature of firm location and consumer cities I empirically test the amenity oriented firm location hypothesis. In particular I investigate whether Berlin internet start-up firms, representing a footloose knowledge-based service industry, locate in urban amenity-rich places. Identification builds on the sudden fall of the Berlin Wall. The intra-city analysis yields a significant impact of urban amenities on the location of internet start-up. A comparison with other service industries suggests that amenities are significant to the location choice of creative sectors whereas no effect can be observed for non-creative firms.
    Keywords: firm location; urban amenities; consumer city; internet start-ups; entrepreneurs; Berlin
    JEL: D20 L20 R30
    Date: 2014–03
  17. By: Davide Antonioli (Dipartimento di Economia e Management, Via Voltapaletto 11, Ferrara, Italy.); Grazia Cecere (Telecom Ecole de Management, Institut Mines-Telecom d Author-Name: Massimiliano Mazzanti)
    Abstract: We analyse how the joint adoption of ICT practices and environmental innovation affect the labour productivity of firms. We study complementarity in innovation adoption, with respect to the specific research hypotheses that the higher thediffusion and radicalness of ICT and EI, the higher might firm\rquote s productivitybe. As ICT are considered to be able to reduce the environmental footprint of different economics activities. We exploit original survey data which cover manufacturing firms for a dense SME area in the North-East of Italy (Emilia-Romagna region). We originally merge innovation survey data over 2006-2008 with firm\rquote s balance sheets over 2010-2011 to achieve this aim.The empirical evidence shows that for Emilia-Romagna manufacturing firms there are still wide margins for improving ICT-EIs integration in order to exploit their potential benefits on firm economic performance. However, the awareness of specific synergies seems to mainly characterizethe heavy polluting firms, subject to ETS schemes, while for the remaining firms prevalently emerge some substitutabilityrelations between ICT and EI. The latter firms are strategically less capable of exploiting the potential synergies between ICT and EI.
    Keywords: ICT, environmental innovation, adoption, SME, polluting sectors, Porter hypothesis, complementarity, labor productivity.
    JEL: D22 L23 L25 L60 M15
    Date: 2014–06
  18. By: Brunow, Stephan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Grünwald, Luise
    Abstract: "Theoretical and empirical contributions on export behavior highlight the importance of firms' productivity and their levels of economies of scale on firms' export success in 'foreign' markets. In the context of agglomeration economies, firms enjoy productivity gains when they are located close to competitors or upstreaming industries and they benefit from knowledge spillovers and other positive externalities. In such a stimulating environment, firms become more prone to be exporters. Beyond the role played by externalities, firms may benefit when they employ a diverse workforce and when the interaction of distinct knowledge and related problem-solving abilities increases productivity and secures export success. In this paper, we ask whether German firms (i. e., establishments) benefit from localization and urbanization externalities and face higher export proportions. We also control for a variety of establishment characteristics and workforce diversity. For this purpose, a comprehensive German data set that combines survey data and administrative data is used. While controlling for firm heterogeneity in a fractional response model, we provide evidence that manufacturing establishments and smaller establishments (up to 250 employees) benefit most from externalities and especially from knowledge spillover. There is weak evidence supporting the benefit of workforce diversity; however, that factor could explain between-establishment variation." (Author's abstract, IAB-Doku) ((en))
    Date: 2015–01–20
  19. By: Brant Abbott (Yale University); Giovanni Gallipoli (UBC)
    Abstract: We develop and estimate an equilibrium model of intergenerational earnings persistence based on skill complementarity in production. We show that when a worker's productivity is relatively independent of co-workers' skills (i.e., skills are substitutable) parental investments in a child's human capital have a stronger impact on the child's future earnings. This leads to higher earnings' persistence across generations. Observed patterns of geographic variation in intergenerational income persistence, both across countries and within the US, appear to be consistent with this hypothesis. We show that differences in skill substitutability may account for up to 1/5 of cross-country variation in intergenerational earnings persistence. We also find that public policies which equalize skills are more desirable in places where skills are more complementary in production. Thus cross-country differences in production arrangements provide a rationale for the observed concurrence of proactive government policies and increased economic mobility. When accounting for this indirect effect, the model explains an even larger share of cross-country differences in mobility, up to 1/3 of the total. As a by-product of this analysis we provide the first set of estimates of skill substitutability in different industries.
    Date: 2014
  20. By: Thomas Sampson
    Abstract: This paper develops an idea flows theory of trade and growth with heterogeneous firms. New firms learn from incumbent firms, but the diffusion technology ensures entrants learn not only from frontier technologies, but from the entire technology distribution. By shifting the productivity distribution upwards, selection on productivity causes technology diffusion and this complementarity generates endogenous growth without scale effects. On the balanced growth path, the productivity distribution is a traveling wave with an increasing lower bound. Growth of the lower bound causes dynamic selection. Free entry mandates that trade liberalization increases the rates of technology diffusion and dynamic selection to offset the profits from new export opportunities. Consequently, trade integration raises long-run growth. The dynamic selection effect is a new source of gains from trade not found when firms are homogeneous. Calibrating the model implies that dynamic selection approximately triples the gains from trade relative to heterogeneous firm economies with static steady states.
    Keywords: International trade; firm heterogeneity; technology diffusion; endogenous growth
    JEL: F12 O41
    Date: 2014–08
  21. By: William Fuchs; Luis Garicano; Luis Rayo
    Abstract: We study contractual arrangements that support an efficient use of time in a knowledge-intensive economy in which agents endogenously specialize in either production or consulting. The resulting market for advice is plagued by informational problems, since both the difficulty of the questions posed to consultants and the knowledge of those consultants are hard to assess. We show that spot contracting is not efficient since lemons (in this case, self-employed producers with intermediate knowledge) cannot be appropriately excluded from the market. However, an ex-ante, firm-like contractual arrangement uniquely delivers the first best. This arrangement involves hierarchies in which consultants are full residual claimants of output and compensate producers via incentive contracts. This simple characterization of the optimal ex-ante arrangement suggests a rationale for the organization of firms and the structure of compensation in knowledge-intensive sectors. Our findings correspond empirically to observed arrangements inside professional service firms and between venture capitalists and entrepreneurs.
    Keywords: Contracting; experts; professional service firms; partnership; venture capital
    JEL: D86 J33 J44 L22
    Date: 2014–10
  22. By: Debra Shepherd (Department of Economics, University of Stellenbosch)
    Abstract: This paper assesses the impact of teacher subject knowledge on student performance using a nationally representative dataset of grade 6 students in South Africa. Test scores in two subjects and correlated random error models are used to identify within-pupil across subject variation in performance. Teacher knowledge is estimated to have a positive impact on performance across both the poorer and wealthier subsets of schools once controlling for teacher unobservables. The results suggest that consideration needs to be given to contextual factors such as the quality of teacher training and the working environment within schools and their relationship to the manner in which teacher knowledge is transferred to students.
    Keywords: teacher content knowledge, correlated random errors model, within-student, South Africa
    JEL: C30 I21 I24
    Date: 2015
  23. By: Nicholas Bloom; Renata Lemos; Raffaella Sadun; John Van Reenen
    Abstract: We collect data on operations, targets and human resources management practices in over 1,800 schools educating 15-year-olds in eight countries. Overall, we show that higher management quality is strongly associated with better educational outcomes. The UK, Sweden, Canada and the US obtain the highest management scores closely followed by Germany, with a gap to Italy, Brazil and then finally India. We also show that autonomous government schools (i.e. government funded but with substantial independence like UK academies and US charters) have significantly higher management scores than regular government schools and private schools. Almost half of the difference between the management scores of autonomous government schools and regular government schools is accounted for by differences in leadership of the principal and better governance.
    Keywords: Management; pupil achievement; autonomy; principals
    JEL: I2 L2 M2
    Date: 2014–11
  24. By: Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato)
    Abstract: Cultural diversity – in various forms – has in recent years turned into a prominent and relevant research and policy issue. There is an avalanche of studies across many disciplines that measure and analyse cultural diversity and its impacts. Based on different perspectives and features of the available data, a great variety of diversity indicators have emerged. The present paper aims to highlight some critical issues involved in applying such measures of cultural diversity. A selection of commonly used or recently advocated measures are reviewed. Measures of population diversity can be calculated at different spatial scales and used to analyse spatio-temporal heterogeneity. Additionally, there is a growing interest in measuring spatial dependence, particularly in the form of segregation or clusters. We conclude that there will be in the future considerable scope for adopting multidimensional and cultural distance-weighted measures of diversity. Such measures will be increasingly calculated by means of rich geo-referenced longitudinal micro data. However, adopted measures must be better motivated by behavioural theories. Further research on the determinants and impacts of observed measures of diversity is also likely to be fruitful, particularly in a dynamical setting.
    Keywords: diversity, dissimilarity measurement, ethnicity, culture, segregation, polarization, fractionalization
    JEL: C00 D63 J15 R23 Z13
    Date: 2015–01
  25. By: Ledenyov, Dimitri O.; Ledenyov, Viktor O.
    Abstract: The article presents an original research on 1) the information theory of the board of directors and 2) the strategy creation by the interlocking interconnecting directors in the boards of directors in the firms in an information century. We review the possible structures of the board of directors, and show that there are the interlocking directors networks in the boards of directors in a big number of firms. Researching the strategic governance of firms, we highlight a fact that the director makes the information sensing, filtering, processing, resonant absorption, analysis, decision making, hence it can be empirically represented as a digital signal processor with the Harvard or von Neumann director’s mindset architectures. We think that the board of directors can be theoretically represented as the electronically-scanned electronically-steered phased array radar with a certain number of active antenna elements, filters banks, digital signal processors, memory chipsets in agreement with the digital signal processing and business administration sciences. Using the theoretical assumptions, we formulate the Ledenyov theory on the winning virtuous strategies creation by the interlocking interconnecting directors in the boards of directors in the firms. We suggest that 1) the transmitted information data-stream measurements, 2) the information bit error rate measurements have to be used to accurately characterize the interlocking interlinking interconnecting directors networks in addition to the well known parameters such as the director’s boards seats accumulation number, centrality, Freeman degree, Betweenness. We believe that the positive and negative feedback loops can quite possibly lead to the destructive coordination among the directors by eliminating the randomness element and by introducing the greater uniformity in the pursuing business strategies. We developed the MicroID software program to compute the probability number of the additional directorship mandates issues.
    Keywords: theory of firm, firm valuation, firm strategy creation, board of directors composition, interlocking directors networks, boards seats accumulation number, centrality, Freeman degree, Betweenness, information flows measurements, destructive coordination, microeconomics, Harvard/von Neumann director’s mindset architectures, digital signal processing, electromagnetic signals absorption, chemical elements absorption, information absorption
    JEL: G30 G34 M1
    Date: 2015–01–22
  26. By: Arayssi, Mahmoud (Lebanese American University); Fakih, Ali (Lebanese American University)
    Abstract: This paper examines the role of institutions (including civil law origin), financial deepening and degree of regime authority on growth rates in the Middle East and North Africa (MENA) region using panel data through a fixed effect model. The results reveal that English civil law origin and the establishment of the rule of law work with the development of financial institutions to increase economic growth in these economies; however, the democratization of the political institutions and foreign direct investment do not assist financial development in promoting economic growth. The findings emphasize the prominence of overcoming institutional weaknesses and establishing transparent public policy governing businesses as a pre-requisite for successful universal integration in developing countries.
    Keywords: economic growth, institutional development, financial development, MENA region
    JEL: G2 O16 P48
    Date: 2015–01
  27. By: Timothy Besley; Maitreesh Ghatak
    Abstract: When social benefits cannot be measured, a hybrid organization which selects managers based on motivation can be used to balance profi…ts with a social purpose. This paper develops a model of social enterprise based on selection of citizen-managers with this goal in mind. It develops the implications of matching between founders and managers based on their preferences for the mission. The main trade-offs suggested by the theory are tested experimentally and these are used to calibrate a matching outcome. This makes precise the parameter range in which social enterprises based on selection will be observed in a market setting; we show that they achieve gains in proficiency of around 10% over non-pro…fit enterprise.
    Keywords: social enterprise; motivated agents; non-profits
    JEL: J1
    Date: 2013–11–06

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