nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒10‒17
twenty-two papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Foreign direct investment and technology spillovers in low and middle-income countries : a comparative cross-sectoral analysis By Jacob J.; Sasso S.
  2. From knowledge to knowing, from boundaries to boundary construction By Claude Paraponaris; Martine Sigal
  3. Knowledge Spillovers through FDI and Trade: Moderating Role of Quality-Adjusted Human Capital By Muhammad Ali; Uwe Cantner; Ipsita Roy
  4. Automation, Performance and International Competition: Firm-level Comparisons of Process Innovation By Kromann, Lene; Sørensen, Anders
  5. Gender and Constraints to Entrepreneurship in Africa: New Evidence from Swaziland By Zuzana Brixiová; Thierry Kangoye
  6. International Deal Experience and Cross-Border Acquisitions By Caleb
  7. Micro-evidence on product and labor market regime differences between Chile and France By Dobbelaere S.; Lauterbach R.; Mairesse J.
  8. ICT-enabled Social Innovation in support of the Implementation of the Social Investment Package (IESI) - Mapping and Analysis of ICT-enabled Social Innovation Initiatives promoting Social Investment through Integrated Approaches to the Provision of Social Services By Gianluca Misuraca; Clelia Colombo; Csaba Kucsera; Stephanie Carretero; Margherita Bacigalupo; Raluca Radescu
  9. Knowledge Clusters and Multidimensional Proximity: An Agent-Based Simulation. By Bottai, carlo; Iori, Martina
  10. Analysis of Factors Constraining the Competitiveness of Sesame Export in the Sudan By Abdel Karim, Imad Eldin Elfadil
  12. Measuring innovation in all sectors of the economy By Gault F.
  13. Deindustrialisation, structural change and sustainable economic growth By Tregenna F.
  14. Investment strategy and selection bias: An equilibrium perspective on overconfidence By Jehiel, Philippe
  15. Explaining total factor productivity growth in German dairy farming: A Malmquist Index Analysis By Allendorf, Joseph
  16. Export Spillover and Export Performance in China By Hu, Cui; Tan, Yong
  17. Public-private partnerships in research and innovation: Case studies from Australia, Austria, Sweden and the United States By Koschatzky, Knut; Kroll, Henning; Meyborg, Mirja; Stahlecker, Thomas; Dwertmann, Anne; Huber, Monika
  18. The paradox of openness revisited : collaborative innovation and patenting by UK innovators By Arora A.; Athreye S.; Huang C.
  19. The relevance of inter-personal and inter-organizational ties for interaction quality and outcomes of research collaborations in South Korea By Hemmert, Martin
  20. The Economic Properties of Information and Knowledge: An Introduction. By Antonelli, Cristiano; David, Paul
  21. A Regional Analysis of Markets Uncertainty Spillover By Kamel Malik BENSAFTA
  22. A Theoretical Approach to Power Sources and Styles of Leadership By Demir, Beyhan; Derya Düşün, Zeynep

  1. By: Jacob J.; Sasso S. (UNU-MERIT)
    Abstract: In this paper we analyse the trends in Foreign Direct Investment FDI flows worldwide across sectors and across value-chain activities, with a particular focus on low- and middle-income countries in comparison with advanced countries. We begin by discussing the growing fragmentation of global production and the opportunities this presents to todays developing countries for benefiting from FDI. Our review of the literature on knowledge spillovers via FDI indicates that spillovers typically occur along the value chain, from foreign firms to their local suppliers or clients but not to their competitors, and that tapping into the technological resources of foreign firms is not an automatic process but hinges on a few host-economy characteristics. Our analysis of worldwide FDI flows during 2008-2013 indicates the growing importance of countries outside the traditional industrialised world, accounting for nearly half of inward greenfield FDI projects. While FDI flows into industrialised economies and emerging industrial economies take place mainly in high- or medium-tech manufacturing, other developing countries and least developed countries tend to attract FDI in medium- and low-tech manufacturing. When we examine FDI flows across value-chain activities, we find that emerging economies are attracting increasingly more knowledge-based FDI, with China and India hosting the highest number of FDI projects in innovation activities. Finally, our analysis suggests that - especially in the manufacturing sector - Multinational Enterprises MNEs tend to invest more in countries where domestic technological efforts are higher, pointing to the importance of indigenous technological capacities in attracting FDI in the first place, but also in ensuring that these investments generate knowledge spillovers that are crucial for technological catching up by developing countries.
    Keywords: International Investment; Long-term Capital Movements; Macroeconomic Analyses of Economic Development; Technological Change: Choices and Consequences; Diffusion Processes;
    JEL: F21 O11 O33
    Date: 2015
  2. By: Claude Paraponaris (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix-Marseille Université - CNRS - Université de Provence - Aix-Marseille 1 - Université de la Méditerranée - Aix-Marseille 2); Martine Sigal (LEST - Laboratoire d'économie et de sociologie du travail - Fédération Hospitalière de France)
    Abstract: This special issue is concerned with knowledge sharing and boundary crossing. Knowledge management is a constantly expanding field. Like any research area, it is shot through with complex questions. This is certainly the case with regard to boundaries, since they constitute both a bounding line that has to be crossed if the knowledge required for innovation is to be diffused and a form of protection for scientific and technological organisations and institutions. The studies published in this special issue clearly illustrate this complexity, since they are concerned with processes such as learning, the dynamic of expertise, the joint creation of knowledge, the resource-based view, brokering activities, HRM (Human Resources Management) processes and the dynamic of scientific disciplines. The objects under investigation are very diverse; they include project teams, luxury hotels, urban projects, hospitals, clusters, the aeronautics industry and agricultural systems. These studies draw on approaches that have become established over time. There is a history behind the succession of approaches in the field of knowledge management (Snowden, 2002),so it may be useful to put these various pieces of research into context. The central question of this special issue is that of boundaries: between projects, between organisations, between types of knowledge, between scientific disciplines and, of course, between actors. This examination of boundaries leads to a state of the art review that begins with the question of knowledge transfer. Van Wijk & al. (2008) consider the antecedents of the transfer considering three major topics: knowledge, organizational and network characteristics. We take adifferent approachusing ahistorical approach to theconcepts. Following Tsoukas (1996, 2009), we propose to criticize the dominant approach of the transfer. In addition, we want to show and comment the change from the concept of knowledge transfer to the concept of boundary. In a constructivist way (Le Moigne, 1994, Von Glasersfeld, 1995) and with Holford (2015) we propose the concept of boundary construction in order to underline the role of interactions " actors-objects-actors " .
    Keywords: Communities of practice,Knowledge-based systems,Cognition,Knowledge transfer,Interaction,Knowledge sharing
    Date: 2015–10–01
  3. By: Muhammad Ali (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Ipsita Roy
    Abstract: The paper extends the findings of Coe and Helpman (1995) model of R&D spillovers by considering foreign direct investment (FDI) as a channel for knowl- edge spillovers in addition to imports. Deeper insights on the issue are provided by examining inter-relationship between knowledge spillovers from imports and inward FDI. Moreover, human capital is added to the discussion as one of the appropri- ability conditions for knowledge spillovers. However, in comparison to most studies that rely on physical, monetary or indicator-based measures of human capital, the current study proposes a quality-based indicator of human capital that allows for better comparison of human capital stock across countries. Quality adjusted hu- man capital is derived by weighting human capital data based on average years of schooling using journal publications in science and technology and patent ap- plications. Using cointegration estimation method on 20 European countries from 1995 to 2010, the direct effects of FDI-related as well as import-related spillovers on domestic productivity are confirmed. Furthermore, a strong complementary rela- tionship is found between knowledge spillovers through the channels of imports and inward FDI implying strong joint effect on domestic productivity. When consider- ing quality-adjusted human capital, countries with better human capital are found to benefit not only from direct productivity effects, but also from absorption and transmission of international knowledge spillovers through imports and inward FDI. Finally, technological distance with the frontier does not appear to play a role in the absorption of knowledge spillovers.
    Keywords: Knowledge spillovers, foreign direct investment, international trade, human capital
    JEL: F14 I25 J24
    Date: 2015–10–08
  4. By: Kromann, Lene (Department of Economics, Copenhagen Business School); Sørensen, Anders (Department of Economics, Copenhagen Business School)
    Abstract: This paper presents new evidence on tradeinduced automation in manufacturing firms using unique data combining a retrospective survey that we have assembled with register data for 2005-2010. In particular, we establish a causal effect where firms that have specialized in product types for which the Chinese exports to the world market has risen sharply invest more in automated capital compared to firms that have specialized in other product types. We also study the relationship between automation and firm performance and find that firms with high increases in scale and scope of automation have faster productivity growth than other firms. Moreover, automation improves the efficiency of all stages of the production process by reducing setup time, run time, and inspection time and increasing uptime and quantity produced per worker. The efficiency improvement varies by type of automation.  
    Keywords: automation; productivity; production theory; efficiency
    JEL: D24 L11 L22 O33
    Date: 2015–10–01
  5. By: Zuzana Brixiová (SALDRU, University of Cape Town and IZA); Thierry Kangoye (African Development Bank)
    Abstract: This paper contributes to closing a knowledge gap on gender, entrepreneurship and development by linking the entrepreneurial productivity to start-up capital and skills. The empirical analysis of a survey of entrepreneurs in Swaziland confirmed the importance of start-up capital for sales. Women entrepreneurs have smaller start-up capital and are less likely to fund it from the formal sector than their men counterparts, pointing to a possible room for policy interventions. Further, business training is positively associated with sales performance of men entrepreneurs, but has no effect on women. However, this does not call for abolishing training programs for women entrepreneurs. Instead their design and targeting should be revisited.
    Keywords: Gender and entrepreneurship, start-up capital, skills, training, multivariate analysis
    JEL: L53 O12
    Date: 2015
  6. By: Caleb (Department of Economics, Davidson College)
    Abstract: By tracing nearly thirty thousand directors as they move across firms during a twenty-eight year period, I show that that a firm's decision to undertake its first cross-border acquisition is positively influenced by experience with these transactions gained by its current board members during their prior service on other companies' boards. Board experience most affects acquisitions of targets headquartered in culturally or institutionally dissimilar countries, with these deals being more likely to be completed successfully and to be received favorably by financial markets. These findings imply that the geography of international fixed capital investments is influenced by the experiential human capital of a firm's board of directors. Publication Status: Working Paper
  7. By: Dobbelaere S.; Lauterbach R.; Mairesse J. (UNU-MERIT)
    Abstract: Institutions, social norms and the nature of industrial relations vary greatly between Latin American and Western European countries. Such institutional and organizational differences might shape firms operational environment in general and the type of competition in product and labor markets in particular. Contributing to the literature on estimating simultaneously product and labor market omperfections, this paper quantifies industry differences in both types of imperfections using firm-level data in Chile - a non-OECD member under the considered time period - and France. We rely on two extensions of Halls econometric framework for estimating price-cost margins by nesting three labor market settings perfect competition or right-to-manage bargaining, efficient bargaining and monopsony. Using an unbalanced panel of 1,737 firms over the period 1996-2003 in Chile containing unique data on firm-level output price indices and 14,270 firms over the period 1994-2001 in France, we first classify 20 comparable manufacturing industries in 6 distinct regimes that differ in the type of competition prevailing in product and labor markets. We then investigate industry differences in the estimated product and labor market imperfections. Consistent with differences in institutions and in the industrial relations system in the two countries, we find important regime differences across the two countries. In addition, we observe cross-country differences in the levels of product and labor market imperfections within regimes.
    Keywords: Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series; Firm Behavior: Theory; Trade Unions: Objectives, Structure, and Effects; Oligopoly and Other Imperfect Markets;
    JEL: C23 D21 J51 L13
    Date: 2015
  8. By: Gianluca Misuraca (European Commission – JRC - IPTS); Clelia Colombo (European Commission – JRC - IPTS); Csaba Kucsera (European Commission – JRC - IPTS); Stephanie Carretero (European Commission – JRC - IPTS); Margherita Bacigalupo (European Commission – JRC - IPTS); Raluca Radescu (Author-Workplace-Homepage:)
    Abstract: This report presents the results of the mapping and analysis of ICT-enabled social innovation initiatives promoting social investment through integrated approaches to the provision of social services, which was conducted as part of the research on ICT-Enabled Social Innovation in support of the Social Investment Package (SIP). The main goal of the research carried out by the European Commission's JRC-IPTS jointly with the Directorate General Employment, Social Affairs and Inclusion, was to explore the potential contribution of ICT-enabled social innovation as an enabler of change in the EU Member States’ efforts to pursue active policies to prioritise social investment and modernise their welfare systems. More specifically, building on a review of existing literature and theoretical approaches, this report defines the state of the art in the field under investigation and develops the conceptual and analytical framework of the research. The report also provides an overview of the findings from analysis of initiatives from both a quantitative and a qualitative perspective. The results of the analysis of the empirical findings are illustrated through a 'Knowledge Map' of ICT-enabled social innovation initiatives promoting social investment through integrated approaches to the provision of social services, including a special focus on the area of active and healthy ageing and long-term care for older people. The report concludes by outlining implications and directions for future research.
    Keywords: Social policy, Innovation ICTs, Integration; Services
    Date: 2015–10
  9. By: Bottai, carlo; Iori, Martina (University of Turin)
    Abstract: We will use an Agent-Based Model in order to study how innovation can emerge from the interaction between firms. In particular, we are interested in studying how the clusters that emerges from these interactions influence the ability of bounded rational firms in reacting creatively to out-of-equilibrium conditions. Moreover, we will introduce two type of firms – traditional and innovative – and we will observe if and how this difference influences the outcomes.
    Date: 2015–07
  10. By: Abdel Karim, Imad Eldin Elfadil
    Abstract: The paper analyzed sesame export performance and competitiveness and its main constraints in Sudan. Vector error correction model was applied using data from 1970-2014. The results showed that low yield, area variation and unstable fluctuating exchange rate are the main factors affecting sesame export earnings in the long run, and area variation in the short run. Improvement of sesame yield and stabilized exchange rate will have positive impact on sesame export value in the long run, while expansion of area under sesame production could have negative influence on sesame export value due to Sudan large share of sesame export in the world market. In order to improve foreign exchange earnings from sesame export, Sudan should address the problem of low yield, area variation and fluctuating exchange rate especially in the long run. The paper recommends adopting economic policies that lead to improvement of sesame yield, control of area under sesame production and to stabilize exchange rate of Sudanese currency.
    Keywords: Sesame export, Competitiveness, Constraints, Sudan, Agricultural and Food Policy, Crop Production/Industries, International Relations/Trade, Land Economics/Use, Production Economics, Productivity Analysis,
    Date: 2015–10–08
  11. By: Allendorf, Joseph; Hirsch, Stefan
    Abstract: This paper presents factor productivity growth measures in the European food industry over the period 2001-2008 by using data envelopment analysis. The Malmquist productivity growth indicator is used to identify the contributions of technical change, technical efficiency change and scale change. The study contributes to the literature by analysing the dairy and meat processing industries in eight European countries based on a sample of 4,584 firms. Results will underline differences between these countries concerning the productivity growth measures as well as differences between different company sizes. Further research should include an impulse response analysis for the effect of investment spikes.
    Keywords: Total factor productivity, Malmquist-Index, dairy industry, meat industry, Industrial Organization, Productivity Analysis,
    Date: 2015
  12. By: Gault F. (UNU-MERIT)
    Abstract: This paper reviews the history of measurement of innovation using definitions in three editions of the Oslo Manual. It then draws on work on innovation in the public sector and innovation by households to generalise the Oslo Manual definitions for application in all sectors of the economy, as defined in the 2008 Manual for the System of National Accounts. The generalised, or meta-definitions are then discussed in the context of each sector and linked to current literature. Finally, the role of measurement in policy learning is considered as well as the importance of innovation indicators for the development, monitoring and evaluation of innovation policy across the economy.
    Keywords: Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access; Technological Change; Research and Development; Intellectual Property Rights: General; Innovation and Invention: Processes and Incentives; Technological Change: Government Policy; Cultural Economics: Public Policy;
    JEL: C82 O30 O31 O38 Z18
    Date: 2015
  13. By: Tregenna F. (UNU-MERIT)
    Abstract: This paper reviews the literature and empirical evidence on deindustrialisation, with a focus on premature deindustrialisation. Structural change and industrialisation have long been considered important for developing countries to catch up. However, there has been widespread deindustrialisation over the past few decades, which is setting in at lower levels of income per capita and lower shares of manufacturing in the employment or GDP than earlier. Premature deindustrialisation can be defined as deindustrialisation that begins at a lower level of GDP per capita and/or at a lower level of manufacturing as a share of total employment and GDP, than is typically the case internationally. Many of the cases of premature deindustrialisation are in sub-Saharan Africa, in some instances taking the form of pre-industrialisation deindustrialisation. It is argued here that premature deindustrialisation is likely to have especially negative effects on growth. In addition to being influenced by the level of income per capita and share of manufacturing in the economy when deindustrialisation begins, the effects of deindustrialisation on growth are also expected to depend on whether or not it is policy induced and the nature of the activities that are relatively contracting and expanding. The paper concludes by exploring the implications for policymakers facing deindustrialisation.
    Keywords: Labor Force and Employment, Size, and Structure; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices; Industrialization; Manufacturing and Service Industries; Choice of Technology; Industrial Policy;
    JEL: L16 J21 O14 O25
    Date: 2015
  14. By: Jehiel, Philippe
    Abstract: Prospective investors of new projects consider the returns of implemented projects with similar (observed) attributes and invest if the empirical mean return exceeds the cost. The steady states of such economies result in suboptimal investment decisions due to the selection bias in the sampling procedure. Assuming higher attributes are associated with higher returns, there is systematic overinvestment as compared with the Bayesian benchmark, thereby illustrating that selection bias may explain entrepreneurial overconfidence. Various extensions are considered to illustrate the negative externality that rational investors exert on other investors, the effect of correlation between the attributes considered by various investors, and how trading may be affected by the sampling procedure.
    Keywords: investment strategy; overconfidence; selection bias
    JEL: C70 D82 D83 D84
    Date: 2015–10
  15. By: Allendorf, Joseph
    Abstract: This study assesses the total factor productivity (TFP) growth for a sample of North-Rhine Westphalian dairy farms over the periods 2007-2014 and provides first-hand evidence of productivity growth of these farms before the milk market is liberalised. As first step a non-parametric Malmquist approach is therefore used to identify the productivity indices. The second step includes a panel regression to shed light on determinants of TFP growth. Expected results will show how TFP growth is influenced by their core components and which exogenous drivers affect the productivity growth.
    Keywords: Total factor productivity, Malmquist-Index, dairy farms, DEA, Farm Management, Production Economics, Productivity Analysis,
    Date: 2015
  16. By: Hu, Cui; Tan, Yong
    Abstract: This paper examines the local export spillover effect on firm-level decisionsto start exporting (the extensive margin) and export volume (the intensive margin) by exploiting a unique dataset of Chinese export firms. Based on a gravity-type equation estimated at firm level, we find thatboth nearby products anddestination specific exporterspositivelyinfluence the individual decisions of firmsto start exporting and their exportvolumes. Several methods are used to verify the robustness of these results. The results imply that the local export spillover lowers both the fixed and variable cost of exporting. In addition, we find that the effect of export spillover on exporting that is both product and destination specificis stronger than it is on exporting that iseither product or destination specificalone, but not both. Small and multi-product firmsare more likely to be influenced by the spillover effect in their decisionsto start exporting, and less likely to be influenced in theirexport volumes. Geographically, local export spillover effect is strongest on firms located in the same city;its effect on firms located in the same province but in different citiesranks second in terms of strength. This result indicates that the effect oflocal export spillover exhibits spatial decay in China.
    Keywords: Export spillover; Extensive margin; Intensive margin
    JEL: F10 R12
    Date: 2015–10–08
  17. By: Koschatzky, Knut; Kroll, Henning; Meyborg, Mirja; Stahlecker, Thomas; Dwertmann, Anne; Huber, Monika
    Date: 2015
  18. By: Arora A.; Athreye S.; Huang C. (UNU-MERIT)
    Abstract: We revisit the paradox of openness in the literature which consists of two conflicting views on the link between patenting and open innovation-the spillover prevention and the organisational openness views. We use the data from the Survey of Innovation and Patent Use and the Community Innovation Survey CIS6 in the UK to assess the empirical support for the distinct predictions of these theories. We argue that both patenting and external sourcing openness are jointly-determined decisions made by firms. Their relationship is contingent upon whether the firms are technically superior to their rivals and lead in the market or not. Leading firms are more vulnerable to unintended knowledge spillovers during collaboration as compared to followers, and consequently, the increase in patenting due to openness is higher for leaders than for followers. We develop a simple framework that allows us to formally derive the empirical implications of this hypothesis and test it by estimating whether the reduced form relationship between patenting and collaboration is stronger for leaders than for followers.
    Keywords: Management of Technological Innovation and R&D; Intellectual Property Rights;
    JEL: O32 O34
    Date: 2015
  19. By: Hemmert, Martin
    Abstract: Informal social ties have long been recognized as relevant not only for interaction between individuals, but also for knowledge transfer and other important outcomes of business activities. This applies in particular to East Asian countries such as South Korea where informal networks are widely believed to be prevalent in economy and society. However, less is known about their role in interorganizational collaboration efforts, such as research collaborations. This research examines the relevance of interpersonal and interorganizational ties for interaction quality and outcomes of research collaborations in South Korea. Two types of research collaborations are studied: new product development (NPD) collaborations between companies and university-industry research collaborations (UICs). Interpersonal ties are found in a majority of both types of collaborations being studied. However, whereas interorganizational tie strength is strongly related to interaction quality and outcomes of research partnerships, interpersonal ties are not. Implications for research and for the management of interorganizational research collaborations are shown.
    Keywords: social ties,research collaborations,interaction quality,knowledge acquisition,Korea
    Date: 2015
  20. By: Antonelli, Cristiano; David, Paul (University of Turin)
    Date: 2015–10
  21. By: Kamel Malik BENSAFTA
    Date: 2014
  22. By: Demir, Beyhan; Derya Düşün, Zeynep
    Abstract: In today’s global world, everything is subject to change as well as organizations. Nowadays, organizations have to keep up with the changes occurring around them. Otherwise, they become unable to realize their goals, and they eventually disappear. Businesses need high quality leaders in order to keep up with these changes. Organizational change can be carried out only by leaders, not by ordinary managers. While managers maintain the existing system and find solutions to the problems within the system, leaders can make fundamental changes for organizational effectiveness and efficiency.
    Keywords: Change, organization, leader
    JEL: M12
    Date: 2015–06

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