nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒06‒05
28 papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Networking, context and firm-level innovation: Cooperation through the regional filter in Norway By Fitjar, Rune Dahl; Rodriguez-Pose, Andres
  2. A New Approach to Estimation of the R&D-Innovation-Productivity Relationship By Baum, Christopher F; Lööf, Hans; Nabavi, Pardis; Stephan, Andreas
  3. Knowledge externalities and knowledge creation: the role of inventors’ working relationships and mobility By Favaro, Donata; Ninka, Eniel; Turvani, Margherita
  4. On firms’ product space evolution: the role of firm and local product relatedness By Alessia Lo Turco; Daniela Maggioni
  5. Location Strategies of Multinationals from Emerging Countries in the EU Regions By Riccardo Crescenzi; Carlo Pietrobelli; Roberta Rabellotti
  7. The Impact of Aligning IT Capability and Operations Strategy on Operational Performance By Masini, Andrea; Bacchetti , Andrea; Perona, Marco; Zanardini, Massimo
  8. Trade Liberalization and Optimal R&D Policies with Process Innovation By Thanh Le; Cuong Le Van
  10. Should the host economy invest in a new industry? The roles of FDI spillovers, development level and heterogeneity of firms By Huu Thanh Tam Nguyen; Ngoc-Sang Pham
  11. Economies to Scale and the Importance of Human Capital in the Moulds Industry in Portugal: A Micro Panel Data Approach By Fátima Diniz; Elias Soukiazis
  14. University Technology Transfer offices : the search for identity to build legimacy By Conor O'Kane; Vincent Mangematin; Will Geoghegan; Ciara Fitzgerald
  15. AGGRESSIVE IMPLEMENTATION OF DIGITIZATION IN THE MODERN BUSINESS By Nebojsa Gijic, Oliver Dimitrijevic, Adriana Jovic-Bogdanovic
  17. How high-tech entrepreneurs bricole the evolution of business process management for their activities By Severine Le Loarne; Adnane Maalaoui
  20. Stimulating Knowledge Search Routines and Architecture Competences: The Role of Organizational Context and Middle Management By Esther Tippmann; Pamela Sharkey Scott; Vincent Mangematin
  21. European Export Performance By Angela Cheptea; Lionel Fontagné; Soledad Zignago
  22. Comparative Analysis of the Development of Human and Intellectual Potential in the Global Economy and in Russia By Doctorovich, Anatoly; Zimin, I
  23. Impact of the economic integration in the international economic structure. The case of international mergers and acquisitions of Spanish multinational firms By David de Matías Batalla
  24. Macroeconomic policy and potential growth By Jérôme Creel; Maurizio Iacopetta
  26. COMPETITIVELY LEADING AND LAGGING EUROPEAN COUNTRIES By Slobodan Cvatanovic, Miroljub Nikolic, Dragoslava Sredojevic

  1. By: Fitjar, Rune Dahl; Rodriguez-Pose, Andres
    Abstract: The paper assesses the role for innovation of one aspect which has been generally overlooked by evolutionary economic geography: context. It analyses how context shapes the impact of collaboration on firm-level innovation for 1604 firms located in the five largest city regions of Norway. Specifically, the analysis shows how the benefits to firms of collaborating within regional, national, and international innovation networks are affected by the knowledge endowments of the region within which the firm is located. Using a logit regression analysis, we find, first, that only national and international networking have a significant positive impact on the likelihood of innovation (the former only for process innovation), whereas the regional knowledge endowments have no direct effect. Second, regional cooperation is particularly effective in regions with high investments in R&D, whereas international cooperation is important in regions with an educated workforce – and regional and national collaboration may be ineffective in such cases. We conclude that, in the case of Norway, context is essential in determining the capacity of firms to set up networks and innovate. Regions with an educated workforce can use the resulting absorptive capacity to successfully assimilate knowledge being diffused through global pipelines from faraway places. However, this absorptive capacity is likely to be heavily filtered if regional firms mainly rely on internal connections within Norway.
    Keywords: context; firms; human capital; innovation; interaction; networking; Norway; R&D
    JEL: O31 O32
    Date: 2015–05
  2. By: Baum, Christopher F (Department of Economics, Boston College and Department of Macroeconomics, DIW Berlin); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stephan, Andreas (Jönkoping International Business School and Centre of Excellence for Science and Innovation Studies.)
    Abstract: We evaluate a Generalized Structural Equation Model (GSEM) approach to the estimation of the relationship between R&D, innovation and productivity that focuses on the potentially crucial heterogeneity across technology and knowledge levels. The model accounts for selectivity and handles the endogeneity of this relationship in a recursive framework. Employing a panel of Swedish firms observed in three consecutive Community Innovation Surveys, our maximum likelihood estimates show that many key channels of influence among the model's components differ meaningfully in their statistical significance and magnitude across sectors defined by different technology levels.
    Keywords: R&D; Innovation; Productivity; Generalized Structural Equation Model; Community Innovation Survey
    JEL: C23 L60 O32 O52
    Date: 2015–06–01
  3. By: Favaro, Donata; Ninka, Eniel; Turvani, Margherita
    Abstract: We study the transmission of tacit knowledge arising from working relationships established by inventors and its impact on firms’ knowledge creation. First, we consider knowledge spillovers that originate through inventor working relationships that are not the result of collaboration agreements among patenting firms. Second, we analyse their effect on the creation of new knowledge as measured by companies’ patenting activity. The study focuses on the role played by geographical proximity. The analysis was carried out on the population of firms located in the Italian region of Veneto and is based upon the original OECD REGPAT database that records all patenting applications at EPO.
    Keywords: patenting activity, knowledge externalities, working relationships, mobility, geographical proximity
    JEL: J24 O3 R1
    Date: 2014–12
  4. By: Alessia Lo Turco; Daniela Maggioni
    Abstract: We explore the role of firm and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms' product space evolution is characterised by strong cognitive path dependence which, however, is relaxed by firm heterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly related to the evolution of their industrial output, is mainly affected by firm internal product specific resources. On the contrary, product innovations in Western advanced regions hinge relatively more on the availability of suitable local competencies.
    Keywords: Product relatedness, Firm heterogeneity, Product Innovation
    JEL: D22 O53 O12
    Date: 2015–05
  5. By: Riccardo Crescenzi; Carlo Pietrobelli; Roberta Rabellotti
    Abstract: This paper contributes to the current debate in both Economic Geography and International Business on the nature and strategies of Multinational Enterprises (MNEs) from emerging countries (EMNEs). The paper fills a relevant gap in the existing literature by shedding new light on the location strategies of EMNEs at the national and regional level, looking at their investment drivers and systematically comparing them with those of multinationals from advanced countries (AMNEs). The empirical analysis looks at the location choices of MNEs in the European Union (EU-25) regions and unveils that EMNEs follow distinctive location strategies. Their attraction into large regional markets is similar to AMNEs as well as their irresponsiveness to efficiency seeking motives. Conversely, the most knowledge-intensive investments of EMNEs respond mainly to two ‘attraction’ factors: strategic assets (in the form of local technological dynamism) and the agglomeration of foreign investments in the same business functions. In addition, both the national and the regional levels are simultaneously relevant to EMNEs decisions.
    Keywords: multinationals, emerging countries, regions, European Union
    JEL: F21 F23 O33 R12 R58
    Date: 2015–05
  6. By: Vojislav Iliæ, Vladimir Nediæ (University of Belgrade, Faculty of Teacher Education, University of Kragujevac, Faculty of Philology and Arts)
    Abstract: Knowledge and innovation have had the biggest significance in development since the very beginnings of human civilization. However, globalisation and technological revolution in the last few decades have made knowledge a key factor of macro competitiveness and economic growth in certain countries. Both developed and developing countries tend to raise the level of their own readiness for development of knowledge economy to the greatest possible extent. Putting knowledge in the center of economic processes, economy is being transformed to knowledge economy. Assesing countries' readiness to develop knowledge-based economy is significant due to the fact that results will be the basis for defining development policy and a necessary element of its implementation at different levels of economic structure of society.
    Keywords: knowledge, knowledge-based economy, economic growth, assesing knowledge economy
    JEL: I25
    Date: 2014–10
  7. By: Masini, Andrea; Bacchetti , Andrea; Perona, Marco; Zanardini, Massimo
    Abstract: This paper examines the relationship among IT capability, operations strategy decisions and operational performance. Using primary data from a sample of European firms, the authors test a model of fit between two specific IT capability-building decisions and three competitive priorities, and they analyze the impact of IT capability alignment on several dimensions of process performance. After uncovering three stylized configurations, they note that firms tend to adopt internally coherent IT capability-building decisions but they find only mixed evidence of alignment between IT capability-building decisions and competitive priorities. Interestingly, however, failing to achieve alignment has negative performance consequences but only for firms that develop limited IT capability. Their results suggests that IT plays a central role in the fulfillment of a firm’s operations strategy, not only for firms that pursue differentiation and are interested in improving the effectiveness of their customer-oriented functions, but also for firms seeking efficiency improvements in back-office operations. Although it is, a priori, more expensive, the development of advanced IT capability can support cost leadership strategies more effectively than a frugal approach, as long as IT projects are used to generate operational knowledge and thus improve process efficiency. At the same time, their results cast further doubt on the value of frugal IT capability, even for firms that strive to reduce cost.
    Keywords: Operations strategy; IT capability; process performance; configurations; empirical analysis
    Date: 2015–01–26
  8. By: Thanh Le (University of Queensland, Brisbane, Australia); Cuong Le Van (IPAG - Business School, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, VCREME - VanXuan Center of Research in Economics, Management and Environment - VanXuan Center of Research in Economics, Management and Environment, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)
    Abstract: We set up a theoretical framework to discuss the impact of trade liberalization and R&D policies on domestic exporting firms' incentive to innovate and social welfare. In this framework, exporting firms invest in R&D to reduce their production costs and, in return, receive R&D subsidies from the government. While firms target at maximizing their profits, the government aims to maximize the social welfare. We consider different settings of firm competition to explore their strategic behaviors as well as the government's strategic behavior at the policy stage. We find that trade liberalization in the foreign market always increases firms' output sales and social welfare and, in most cases, leads to higher R&D investments and productivity at firms as well as industry level. When firms are independent monopolies in the overseas market, it is optimal for the government not to provide any R&D subsidy. When goods are close substitutes, the social optimum can be achieved as a Nash equilibrium by applying an optimal R&D tax. Trade liberalization induces a higher R&D tax rate to be levied on firms. When firms also conduct business in the home market, it is always optimal for the government to provide firms with a financial support to their R&D activity. While this R&D subsidy is decreasing in the trade cost when firms are independent monopolies, its monotonicity in the trade costs is determined by the convexity of the R&D cost function when firms produce close substitutes.
    Date: 2014–10
  9. By: Dalibor Paniæ (Ministry of Finance of the Republic of Serbia - Tax Administration, Uzice)
    Abstract: Contemporary markets that are distinguished by high degree of instability have prompted the necessity for correction of development models in all economies that are market-orientated and aspiring to be competitive on a global level. As a response to the challenge, many countries have ’turned’ to the sector of small and medium-size companies that have the necessary degree of business flexibility and adaptability in response to external influences. The fundamental development resource of the „small business“ subject is the entrepreneurship. Understanding of this concept is a primary prerequisite of its implementation. Thus, the aim of this paper is to highlight the main characteristics and implications of entrepreneurship, with a special emphasis on agro-business, considering the importance of this area not only in economical parameters.
    Keywords: entrepreneurship, small and medium-sized enterprises, agro-business;
    JEL: L Q
    Date: 2014–10
  10. By: Huu Thanh Tam Nguyen (EPEE - Centre d'Etudes des Politiques Economiques - Université d'Evry-Val d'Essonne); Ngoc-Sang Pham (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)
    Abstract: We consider a small open economy with two productive sectors (an old and a new). There are two types of firms in the new industry: a well planted multinational firm and a potential domestic firm. Our framework highlights a number of results. First, in a poor country with low return of training and weak FDI spillovers, the domestic firm does not exist in the new industry requiring a high fixed cost. Second, once the host economy has the capacity to create the new firm, the productivity of the domestic firm is the key factor allowing it to enter into the new industry, and even eliminate the multinational firm. Interestingly, in some cases where FDI spillovers are strong, the country should invest in the new industry, but not train specific workers. Last, credit constraints and labor/capital shares play important roles in the competition between the multinational firm and the domestic one.
    Date: 2014–10
  11. By: Fátima Diniz (Faculty of Economics, University of Coimbra, Portugal); Elias Soukiazis (Faculty of Economics, University of Coimbra and GEMF, Portugal)
    Abstract: The mould for plastics industry in Portugal is highly technological, innovative and modern, with a clear focus on exports. It is one of the most successful sectors in this country with high reputation in the world markets. The main aim of this study is to explain this success by detecting the main factors which determine the dynamic production structure of this industry and its transformation over time. Focus is given on the multiple aspects of human capital, such as work experience, learning by doing tendencies, innovation, dissemination of knowledge and business cooperation between companies that generate positive externalities in the production process. All these factors contribute significantly to explain the success this industry has achieved over the recent decades. A production function framework is employed in line with the neoclassical approach where human capital is the engine of growth as has been postulated by the endogenous growth theory. The production function is estimated by using unbalanced panel data and applied to a sample of firms operating in this industry, over the period 1987-2012. Our empirical evidence suggests that factors such as physical capital(cutting edge technology, including specific software) and quantitative as well as qualitative factors associated with human capital are the key factors explaining the production dynamics of the moulds industry in Portugal. Increasing returns to scale and human capital externalities are also identified as special characteristics in this sector.
    Keywords: Production function, economies to scale, human capital externalities, panel data, moulds industry.
    JEL: D24 D62 F43 I25
    Date: 2015–05
  12. By: Vladimir Mitroviæ, Ivana Mitroviæ
    Abstract: Creating a highly competitive economy is a goal of every country. However, even after more than 10 years of transition, competitiveness of our economy is extremely low according to all criteria and indicators recognized by relevant institutions. Incomplete and inefficient structural reforms in industry and activation of the industrial export and development resources are limiting the efficency of our industry’ s involvement on the international market. Serbia, as a small country, by nature of things is focused on trade exchange and international economical cooperation and without that has no chance for independent development, not even a chance to sustain the existing level of production. It can only develop if its industrial companies make their products for the international market and expand their business networks worldwide. For this to be achievable, Serbia first must adjust its products to the demands of the international market, by implementing adequate technology and increasing production efficiency levels. The aim of this work is to shed light on important conditions, factors, strategic goals and incentive policy for increasing the competitiveness of industries in Serbia, because only a strong and competitive industry can withstand the challenges and pressures of other participants, and at the same time, provide the quality and the range of export, in other words, economical growth and social welfare.
    Keywords: competitiveness, determinants of competitiveness, economy and industrial policy, re-industrialism, export industry
    JEL: F43 P45
    Date: 2014–10
  13. By: Milorad Bejatovic, Goran Bejatovic, Gordana Bejatovic (University Business Academy in Novi Sad, Belgrade Business School, University Business Academy in Novi Sad)
    Abstract: In order for a small country, such as Serbia, to be included in the trends of the modern world market primarily depends on the quality of the functioning of domestic enterprises as leaders of the economic integration. This serious and responsible task should enable domestic enterprises to handle international competition successfully. Having that in mind, this paper emphasizes the need for creating and strengthening the international business orientation of Serbian enterprises which function in conditions of the world economic crisis.
    Keywords: global environment, international competition, menagers, enterprises, innovation
    JEL: L12 M54
    Date: 2015–01
  14. 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.
    Date: 2015
  15. By: Nebojsa Gijic, Oliver Dimitrijevic, Adriana Jovic-Bogdanovic (University "Union-Nikola Tesla", Faculty for business studies and law)
    Abstract: The global economic crisis business environment pressures companies to streamline their operations and thus forcing them to significantly speed up the process of digitizing, creating a kind of digital markets. It becomes clear that those who recognize the moment and who are willing to think a modern and unconventional, in terms of innovation, customer and business partners engagement, corporative organization, strategies, business models and the role of technology in their business enterprise, will be those who will be well-positioned in this new market, which will enable them to significant revenue growth. On the other hand, there is a significant business risk of fatal business loss in case of inaction, slowness, neglect and lack of understanding of this very important process in the business.
    Keywords: business, digitization, management, marketing, customers
    JEL: M1 M2 M3 L8 O32 O33
    Date: 2015–01
  16. By: Natasa Stojkoviæ-Krstiæ (Banka Poštanska štedionica, a.d., Beograd)
    Abstract: The integrating business performance measurement system in the enterprise has the important role of development and guidance, giving the basis for formulating and guiding the corporate strategy. Relevance of the integrating business performance measurement system, that is, application of the performance measurement process at the different levels of activities and business dimensions includes the motivation role, since it stimulates higher objectives realization. The integrating business performance measurement system seems to be the basis for creating compensation system for managers and other employees. Relevance of the cited functions of integrating business performance measurement system requires the need for higher management initiation, considering its designing, implementation, and continual development and improvement.
    Keywords: measurement, performance, organization
    JEL: M11 M21 O31
    Date: 2014–10
  17. By: Severine Le Loarne (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Adnane Maalaoui (ESG Paris – School of Business)
    Abstract: Purpose: This paper focuses on how entrepreneurs anticipate and change their company's business process management after developing a radical innovation. The paper is based on a critical approach to business process modelling (BPM) that posits that—in spite of all the claims, guides, and tools that companies employ to help them modelise their processes—business processes are developed and improved (or at least changed) by individuals who negotiate, anticipate, and compromise to make these changes occur. Thus, BPM is more a matter of "bricolage" (Levi-Strauss) than an established and defined plan. Based on this position, our paper analyses how a business process model emerges in the early phases of a high tech new venture when the entrepreneur lacks a valid template to form a conceptual representation of the firm's business processes. Design/Methodology/Approach: We adopt a perspective based on the concept of bricolage. By analysing and comparing the discourse of 40 entrepreneurs—20 involved in an activity based on a radical innovation and 20 involved in an activity based on a more incremental concept—we are able to answer the two research questions.
    Date: 2015
  18. By: Laura Južnik Rotar (Faculty of Business and Management Sciences Novo mesto)
    Abstract: The paper deals with the problem of youth unemployment and entrepreneurship as a way out of unemployment. The battle against youth unemployment is a top European priority, since the youth unemployment rate is more than twice as high as the adult one, because the chances for a young unemployed person of finding a job are low, because their jobs tend to be less stable, because there are significant skills mismatches on the labor market. Entrepreneurship is a powerful driver of economic growth and job creation; it makes economies more competitive and innovative. The motivation for entrepreneurial career is different with different age cohorts. Youth represent a group with the highest entrepreneurial potential. In the empirical study, we analyze entrepreneurial tendencies among Slovene students of business schools and with factor analysis approach we try to define underlying entrepreneurial tendency dimensions as the literature suggests that entrepreneurial characteristics play an important role in influencing the individual’ decision to become entrepreneurs. We defined four such entrepreneurial tendency dimensions: need for independence and achievement, problem solving, planning, and dealing with uncertain situations. However, the need for independence and achievement and problem solving are the strongest drivers of entrepreneurial tendency. The results of the study can be of help to policymakers when updating labor market policy measures in connection with the educational policy.
    Keywords: youth unemployment, entrepreneurship, competitiveness, self-employment, entrepreneurial characteristics.
    JEL: J21 J23 C38 L26
    Date: 2015–01
  19. By: Nevena Stanisavljeviæ
    Abstract: Improvement of products and production processes, increasement the economic efficiency, greater market power and development potentials are only a part of the benefit from a cluster organizations as a relatively new form of business networking in order to increase the competitiveness. The complexity of the structure of the cluster organization, multiple relationships of different members and partner organizations, as well as the different impact the environment in which it is formed, operates and develops, makes cluster management organization very challenging process. Therefore, the aim of this study is introduce the concept of cluster organizations and elements of its lifecycle - forming, functioninig and development. Numerous factors determine the dynamics of the transition process of a cluster organization from one stage to another of its life cycle, so their identification, consideration of interconnection and interdependence are significant for curent and potential management team of cluster organizations in the aim of effective management.
    Keywords: cluster, cluster development, cluster lifecycle
    JEL: L14
    Date: 2014–10
  20. By: Esther Tippmann (UCD - University College Dublin [Dublin] - University College Dublin); Pamela Sharkey Scott (Dublin Institute of Technology - Dublin Institute of Technology); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: This qualitative study uncovers how organizations following a replication strategy, with its focus on efficiency and standardisation, can also achieve explorative knowledge search to propose relevant solutions to unusual problems. We undertook a detailed investigation of middle managers' knowledge search routines in Gamma, a leading ICT multinational corporation (MNC), to unravel how the organizational context influences their search actions and solution development. We find that by maintaining a flexible organizational structure and not storing knowledge in central repositories - thereby foregoing the value of such mechanisms in facilitating a more efficient search and leverage of existing solutions, knowledge search routines are executed that are intense and active, break out of silos and mobilize diverse knowledge components for the architecturing of solutions. These findings contribute towards our understanding of micro-foundations of capability evolution in the context of a replication strategy by uncovering the dual workings of organizational context elements in both enabling and challenging middle managers' knowledge search actions. It also extends our understanding of the role of middle managers in capability evolution by revealing the importance of architecture competences in developing solutions that renew routines and how these competences can be stimulated by an appropriate organizational context.
    Date: 2014–08
  21. By: Angela Cheptea (SMART - Structures et Marché Agricoles, Ressources et Territoires - Institut national de la recherche agronomique (INRA) - Agrocampus Ouest); 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, Banque de France, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Soledad Zignago (Centre de recherche de la Banque de France - Banque de France)
    Abstract: Using an econometric shift-share decomposition, we explain the redistribution of world market shares at the level of the product variety and by technological content. We decompose changes in market shares into structural eff ects (geographical and sectoral) and a pure performance e ffect. We regard the EU-27 as an integrated economy, excluding intra-EU trade. Revisiting the competitiveness issue in such a perspective sheds new light on the impact of emerging countries on the reshaping of world trade. Since 1995 the EU-27 withstood the competition from emerging countries better than the United States and Japan. The EU market shares for high-technology products, as well as in the upper price range of the market, proved comparatively resilient, though less so since the crisis.
    Date: 2014
  22. By: Doctorovich, Anatoly (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Zimin, I (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: A new concept of people-centered development that is currently in development creates the need for in-depth study to date of all spectrum of problems of human development, its labor and intellectual potential. Human and intellectual capacities are considered as interconnected, as homologous concepts, and field of study includes an analysis of management strategies to their development and efficient use of intellectual capital.
    Keywords: human potential, intllectual potential
    Date: 2015–04
  23. By: David de Matías Batalla (Economics and Business Administration Dept. - University of Alcala - Madrid, Spain)
    Abstract: In this paper I present the impact of new players and determinant in international business activities, which have a direct influence on international economic structure. One of the most important determinants in last decades has been international mergers and acquisitions, an important foreign direct investment that many multinational firms have used as mode of entry to international markets. This, together with the rest of foreign direct investment, make me think to extend OLI model to OLIM. On the other hand, this new modes of entry, the disintegration of the value chain, the resources and capabilities approach and the role of national institutions imply a strong economic integration, having as consequence the extension of the international production framework that Dunning provides as a framework to study the economic structure. In order to provide empirical evidence, the paper shows an analysis and results of international mergers and acquisitions realized by Spanish multinational firms, adding as complementary evidence a business case focus on Ebro Foods
    Keywords: mergers and acquisitions, foreign direct investment, eclectic paradigm, international economic structure
    JEL: E02 E60 G15 M16 M21
    Date: 2015–07
  24. By: Jérôme Creel (OFCE); Maurizio Iacopetta (OFCE)
    Abstract: We make the case for investigating the gap between the potential and the actual level of production, and review contributions that point to the reduced power of standard policy in- struments in presence of a prolonged gap. We also highlight di¢ culties in measuring where an economy stands relative to its potential. We review links between human capital accumulation and technology, and sketch a basic Schumpeterian model that puts at the center stage of the growth process investments in innovation and the foundation of new Örms, arguably two key sources of growth that could revitalize the faltering European Economies. The gap between the short and long run behavior is illustrated through quantitative experiments
    Date: 2015–05
  25. By: Slavko Boziloviæ, Vuk Miletic (University "Union" Nikola Tesla, Belgrade,)
    Abstract: The business practices of companies indicate that the growth is greatest challenge for management in today business. Consequently there no need in particularly proving that the growth is something difficult to achieve, especially in times of economic crisis. Taking this into consideration, this paper highlights the fact that is potential of growth the key lever for the achievement of the company profit. There is many obstacles to remove on the way, and to accomplish efforts directed to achieving growth and act with a view to sustainable success. It is suggested, that the highest priority of companies management is to build the basic strategy for generating growth, the extent to which and which way to exploit own potential growth with the creation of the expected value. For these reasons, because the selection and formulation of strategy is a differentiating factor and the difference between the success and failure of business. It is understood that growth should be achieved combining strategy of mergers and acquisitions, product innovations, with effective organization and new markets.
    Keywords: strategy, business growth, enterprise management
    JEL: L12 M21 O44
    Date: 2014–10
  26. By: Slobodan Cvatanovic, Miroljub Nikolic, Dragoslava Sredojevic (University of Niš, Faculty of Economics)
    Abstract: The concept of a country’s competitiveness, in addition to numerous challenges, has risen in importance in recent years. Relying on the data obtained from the Global Competitiveness Report of the World Economic Forum, the paper analyses competitiveness of the most competitive countries and the least competitive countries in the EU. Visualisation of data on competitiveness and GDP per capita of the analysed group of countries in 2013 enabled the identification of the most critical factors of competitiveness of the EU countries. Furthermore, based on the evaluated competitiveness trend line for the observed groups of countries in the period 2006-2013, it has been concluded that it is not realistic to expect significant convergence of the analysed groups of countries in respect of competitiveness in the near future.
    Keywords: competitiveness, most competitive EU countries, least competitive EU countries
    JEL: O31
    Date: 2015–01
  27. By: Milorad Filipovic, Danijela Despotovi (University of Belgrade, Faculty of Economics, University of Kragujevac, Faculty of Economics)
    Abstract: The concept of sustainable competitiveness of a country is a newly created category by the World Economic Forum 2011. In the paper, an empirical analysis of sustainable competitiveness of European countries has been carried out, according to the World Economic Forum data for the year 2012-2013. The key research question regarding the trade-off between the Global Competitiveness Index (GCI) and the Sustainability-Adjusted Global Competitiveness Index (SCI) of European countries in 2013, has led to a negative answer, i.e., the empirical analysis did not confirm the negative relationship between these two phenomena.
    Keywords: sustainable development, components of sustainable development, environment, competitiveness, sustainable competitiveness
    JEL: O44
    Date: 2015–01
  28. By: Vladimir Nedic, Vojislav Ilic, Dusko Belovic (University of Kragujevac, Faculty of Philology and Arts, University of Belgrade, Teachers’ Training Faculty, Investment Project Group Belgrade)
    Abstract: The country’s readiness for the development of knowledge economy was measured using the Knowledge Economy Index (KEI) and the Knowledge Index (KI) of The World Bank Institute’s Knowledge for Development Program, 2012. The assessment of the position of the observed countries for the development of knowledge economy is based on the use of a number of analytical procedures. Cluster analysis was used first in order to check for the level of differences according to the KEI parameters and to group the selected countries into clusters, aimed at detecting the deviation of the observed European countries from the remainder of the group. Then we used the radar cart analysis of the four KEI pillars and their key variables in order to identify the current situation with respect to the values of partial indicators of the KEI pillars and establish the relative positions of the selected countries. Finally, over time comparison of the current values of the KEI pillars with the 2000 data was used to illustrate the dynamics of the development of the KEI pillars in crisis conditions. Research results have indicated that there is a prominent lag in the readiness of the Western Balkan countries (Albania, Bosnia and Herzegovina, Macedonia and Serbia) behind their EU environment (Austria, Greece, Bulgaria, Romania, Croatia and Slovenia).
    Keywords: knowledge economy, Knowledge Economy Index, Knowledge Index
    JEL: I25
    Date: 2015–01

This nep-cse issue is ©2015 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.