nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2015‒10‒25
fifteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Governance and Performance of Publicly Funded R&D Consortia By OKAMURO, Hiroyuki; NISHIMURA, Junichi
  2. Human Resources and Innovation: Total Factor Productivity and Foreign Human Capital By Fassio, Claudio; Kalantaryan, Sona; Venturini, Alessandra
  3. R&D Spillovers and Employment: A Micro-econometric Analysis By Aldieri, Luigi; Garofalo, Antonio; Vinci, Concetto Paolo
  4. Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields By Stuetzer, Michael; Obschonka, Martin; Audretsch, David B.; Wyrwich, Michael; Rentfrow, Peter J.; Coombes, Mike; Shaw-Taylor, Leigh; Satchell, Max
  5. Challenging Competition at Public Procurement Markets: Are SMEs Too Big to Fail? The Case of BiH and Croatia By Suncana Slijepcevic; Jelena Budak; Edo Rajh
  6. Skills and training for a more innovation-intensive economy By Geoff Mason
  7. The impact of skill endowments and collective bargaining on knowledge-intensive greenfield FDI By Sara Amoroso; Mafini Dosso; Pietro Moncada-Paterno-Castello
  8. Innovation Allocation, Knowledge Composition and Long-Run Growth By Nan Li; Jie Cai
  9. Relational dynamics in the multi-helices knowledge production system: A new institutionalism perspective By Thai Thi Minh; Carsten Nico Hjotrsø
  10. Thai Automotive Industry: International Trade, Production Networks, and Technological Capability Development By Patarapong INTARAKUMNERD
  11. Exporter behavior, country size and stage of development : evidence from the exporter dynamics database By Fernandes,Ana Margarida; Freund,Caroline; Pierola Castro,Martha D.
  12. State-business relations as drivers of economic performance By te Velde Dirk Willem; Lemma Alberto
  13. Employment Effect of Innovation By D'Artis Kancs; Boriss Siliverstovs
  14. Leading Leadership style to motivate cultural-oriented female employees in the I.T sector of developing country: I.T Sectors responses from Pakistan By Haque, Adnan ul; Faizan, Riffat; Zehra, Nasreen; Baloch, Akhtar; Nadda, Vipin; Riaz, Fayyaz
  15. SWOT Analysis in Strategıc Management and a Sample Applicatıon in Public By Tuncay, Musa

  1. By: OKAMURO, Hiroyuki; NISHIMURA, Junichi
    Abstract: R&D consortia have been regarded as an effective means of promoting innovation, and several R&D consortia obtain public financial support, which may affect its governance structure and performance. This study investigates the governance mechanisms of publicly funded R&D consortia and their effects on innovation. Regarding R&D consortia, few studies have empirically addressed the effect of project monitoring by the government. Moreover, the role of project leadership in R&D consortia remains poorly explored. Focusing on a major support program for R&D consortia in Japan and using a sample of 315 firms that participated in publicly funded R&D consortia from 2004 to 2009, we empirically confirm that project leadership by a private firm, especially its coordination capability, significantly increases the probability of project success (early commercialization of innovation outcomes). We also find that project performance is positively affected by the strictness of project monitoring and evaluation by the government. Finally, we find no complementarity between project leadership and government monitoring with regard to the effects on project performance.
    Keywords: R&D consortia, public subsidy, leadership, monitoring, commercialization
    JEL: O31 O32 O38
    Date: 2015–10
  2. By: Fassio, Claudio (Lund University); Kalantaryan, Sona (Migration Policy Centre); Venturini, Alessandra (University of Turin)
    Abstract: The objective of this paper is to analyse the role of migrants in innovation in Europe. We use Total Factor Productivity as a measure of innovation and focus on the three largest European countries – France, Germany and the United Kingdom – in the years 1994-2007. Unlike previous research, which mainly employs a regional approach, we analyse the link between migration and innovation at the sectoral level. This allows us to measure the direct contribution of migrants in the sector in which they are actually employed. Moreover, it allows a distinction between the real contribution of migrants to innovation from possible inter-sectoral complementarities, which might as well foster innovation. We control for the different components of human-capital, such as age, education and diversity of origin. To address the possible endogeneity of migration we draw on an instrumental variable strategy originally devised by Card (2001) and adapt it at the sector level. The results show that overall migrants are relevant in all sectors, but some important differences emerge across sectors: highly-educated migrants show a larger positive effect in the high-tech sectors, while middle- and low-educated ones are more relevant in manufacturing. The diversity of countries of origin contributes to innovation only in the services sectors, confirming that in empirical analyses at the regional or national level the diversity measure might capture the complementarity between sectors rather than the contribution of different national skills.
    Keywords: migration, innovation, highly skilled migrants, low skilled migrants
    JEL: F22 O31 O32
    Date: 2015–10
  3. By: Aldieri, Luigi; Garofalo, Antonio; Vinci, Concetto Paolo
    Abstract: In this paper we analyze the relationship between R&D activity, spillovers and employment at the firm level. A reduced form labour demand equation is estimated. R&D expenditures can account for both product and process innovation. The analysis is based upon a new dataset composed of 879 worldwide R&D-intensive manufacturing firms whose information has been collected for the period 2002-2010. We use data from all EU R&D investment scoreboards editions issued every year until 2011 by the JRC-IPTS (scoreboards). The main contribution to the existing literature is to investigate also the impact of outside R&D activity on own employment level. In particular, the paper investigates the role of R&D spillovers within the pillars of the Triad: United States, Japan and European economic area, but it goes beyond the previous studies by considering more opportune spillover components. Indeed, the potential stock of spillovers is dissociated into four components: the national stock, the international stock, the intra-industry stock and finally the inter-industry one. In this way, we will be able to appreciate to what extent geographical and cultural contiguity matters, by using an updated sample relative to large worldwide firms. The empirical results suggest a significant impact of R&D spillover effects on firms’ employment but the results are quite differentiated according to the spillover stock type and this may represent a relevant source of policy implications.
    Keywords: Panel Data Models, R&D Spillovers, Employment
    JEL: J20 O33
    Date: 2015–10–16
  4. By: Stuetzer, Michael; Obschonka, Martin; Audretsch, David B.; Wyrwich, Michael; Rentfrow, Peter J.; Coombes, Mike; Shaw-Taylor, Leigh; Satchell, Max
    Abstract: There is mounting evidence demonstrating that entrepreneurship is spatially clustered and that these spatial differences are quite persistent over long periods of time. However, especially the sources of that persistence are not yet well-understood, and it is largely unclear whether persistent differences in entrepreneurship are reflected in differences in entrepreneurship culture across space as it is often argued in the literature. We approach the cluster phenomenon by theorizing that a historically high regional presence of large-scale firms negatively affects entrepreneurship, due to low levels of human capital and entrepreneurial skills, fewer opportunities for entry and entrepreneurship inhibiting formal and informal institutions. These effects can become self-perpetuating over time, ultimately resulting in persistent low levels of entrepreneurship activity and entrepreneurship culture. Using data from Great Britain, we analyze this long-term imprinting effect by using the distance to coalfields as an exogenous instrument for the regional presence of large-scale industries. IV regressions show that British regions with high employment shares of large-scale industries in the 19th century, due to spatial proximity to coalfields, have lower entrepreneurship rates and weaker entrepreneurship culture today. We control for an array of competing hypotheses like agglomeration forces, the regional knowledge stock, climate, and soil quality. Our main results are robust with respect to inclusion of these control variables and various other modifications which demonstrates the credibility of our empirical identification strategy. A mediation analysis reveals that a substantial part of the impact of large-scale industries on entrepreneurship is through human capital.
    Keywords: Entrepreneurship; entrepreneurship culture; Industrial Revolution; industry structure; personality
    JEL: L26 L64 N13 N53 N94
    Date: 2015
  5. By: Suncana Slijepcevic (The Institute of Economics, Zagreb); Jelena Budak (The Institute of Economics, Zagreb); Edo Rajh (The Institute of Economics, Zagreb)
    Abstract: This study empirically evaluates the role and perspectives for SMEs to successfully compete at public procurement markets. The government procurement markets in post-transition countries make a significant share of national economy and seemingly their importance rises in the times of economic crisis. The literature on public procurement and involvement of SMEs noted severe obstacles for companies to access public procurement markets, and the set of policies were established in the EU to promote SMEs’ involvement in public procurement. This case study encompasses business sector in two post-transition countries, Croatia and Bosnia and Herzegovina (BiH) in order to explore competitiveness and entry barriers specifically for SMEs to participate at the public procurement market. We compare the views of managers and business people representing companies of the small and medium size on the level of competition and on the range and intensity of obstacles to participate at public procurement tenders, in terms of availability of resources, corruption risks, transparency and fairness of procedure, clarity of documentation, principles and standards achieved, price, deadlines and other dimensions of public procurement. If there are differences between the two countries, do they stem from the different EU membership status? Are there differences between subgroups of micro, small, and medium companies? In order to provide plausible answers to these questions, we use the empirical evidence collected through the survey of companies in BiH in 2014, and comparable data on Croatian companies surveyed in 2013. The findings are put in the context of public procurement as an opportunity to enhance growth and economic development in post-transition era.
    Keywords: public procurement, small and medium enterprises, post-transition countries, competition
    JEL: D73 H57 L25
    Date: 2015–10
  6. By: Geoff Mason
    Abstract: There is now intense interest in developing a new industrial policy for the UK which, among other aims, will encourage more UK-based firms to shift towards higher value added activities in a range of industries. In this paper we argue that, if any such industrial policy is to be effective in improving UK economic performance, it needs to stimulate higher levels of innovation by firms. In particular, the policy must encourage a sizeable number of firms who do not currently engage in innovation to start doing so. This in turn implies an increased demand for innovation-related skills and knowledge by UK firms that is unlikely to be met by an industrial training system which is beset by historical weaknesses. Thus the emergence of new industrial policy needs to be complemented by new training policies designed to make skills development and utilisation more cost-effective and to stimulate higher levels of employer demand for innovation-related skills and training. These new policies will need to be balanced in three dimensions: between technical and generic skills, between higher and intermediate skills, and between initial and continuing education and training.
    Date: 2014–07
  7. By: Sara Amoroso (European Commission – JRC - IPTS); Mafini Dosso (European Commission – JRC - IPTS); Pietro Moncada-Paterno-Castello (European Commission – JRC - IPTS)
    Abstract: This paper assesses the contribution of skilled employment and labour market conditions to the ability of attracting knowledge intensive and manufacturing greenfield FDI. We carry out our analysis by controlling for a wide range of labour market features, such as the collective bargaining coverage rate, the non-wage labour costs, and the occupational skills of employment. It departs from the existing literature in two respects. First, it deepens the analysis on the effect of labour market regulations and skills endowments on greenfield FDI inflows. Second, it investigates the extent to which labour market characteristics matter for discriminating among ‘resource-seeking’ and ‘efficiency/strategic asset-seeking’ greenfield FDI activities (e.g. manufacturing versus knowledge-intensive foreign investments, respectively). Our empirical analysis suggests that the quality of employment and the technological knowledge base have different impact on the location of knowledge-intensive and on low-cost labour-intensive manufacturing foreign investments. Further, associating the collective bargaining coverage of unions with the level of regulation in the labour market, our results can provide insights into the effectiveness of labour market policies that aim at attracting knowledge-intensive investments. Length: 25 pages
    Keywords: foreign direct investment, unions R&D
    JEL: O32 F16 J51
    Date: 2015–08
  8. By: Nan Li (International Monetary Fund); Jie Cai (University of New South Wales)
    Abstract: Technologies differ in their scopes of applications. The types of knowledge a country possesses have important implications on its growth. This paper develop a multi-sector model of innovation, trade and growth, in which knowledge in one sector is applicable to innovation in another sector in various degrees and a country's composition of knowledge is endogenously determined. We find that lower trade costs and better institutions (that increase production productivity) improve aggregate innovation efficiency through the within-country allocation of R&D towards sectors with higher knowledge applicability. We construct measures quantifying the sectoral knowledge applicability using cross-sector patent citations. Based on this index, we present cross-country evidence that broadly supports the model's implications.
    Date: 2015
  9. By: Thai Thi Minh; Carsten Nico Hjotrsø
    Abstract: Drawing on the triple helix model and organizational institutionalism, this article applies a qualitative research approach to analyze structures, institutional logics, power relations that shape inter-organizational relations and the structuration of a knowledge production system in an emerging economy. Findings highlight the emergence of a fifth-helices knowledge production system includes the state, science and education, industry, international actors, and society. The system comprises two major segments, one associated with the traditional command economy and characterized by institutional control that reproduces an ill-adopted and less transparent system based on systemic power. At the border of this system, a market- and quality-oriented segment emerges through marked-oriented evolution and collaborative co-evolution processes driven by institutional agency. The system-level dynamics are characterized by political ambidexterity that enables the state to maintain control by privileging traditional science and education constituencies, and at the same time support the transition of the knowledge production system towards international methodology and quality standards through relational mechanisms such as cooperation, harmonization, and partnership. Our research shows that the proposed framework offers a valuable basis for deriving realistic policy and program recommendations to guide national and international actors in designing interventions and collaboration within knowledge production systems in developing countries.
    Keywords: Triple helix, knowledge production system, organizational field, institutional logics, rational mechanisms, Vietnam
    Date: 2015
  10. By: Patarapong INTARAKUMNERD (National Graduate Institute for Policy Studies (GRIPS))
    Abstract: Over a span of 50 years, Thailand’s automotive industry changed from a small, import-substituting one to a large and vibrant exporting one. Intra-industry trade between Thailand and other countries in East Asia has risen markedly, especially in automotive parts. Its sectoral innovation system has evolved from a passive-learning and fragmented system to a more active-learning and coherent one. Foreign carmakers and first-tier suppliers as well as several local suppliers made considerable effort to enhance their technological capabilities. Universities and research institutes started to have sector-specific teaching and research programmes and closer collaboration with the industry. The sector-specific government promotion agency has been increasingly acting as an ‘intermediary’ organisation. The system gradually upgraded from being a ‘production’ system to a somewhat ‘innovation-oriented’ and ‘R&D-intensive’ one. It has also become more ‘product specific.’
    Keywords: automotive industry, Thailand, technological and innovative capabilities, sectoral innovation system, production networks
    Date: 2015–10
  11. By: Fernandes,Ana Margarida; Freund,Caroline; Pierola Castro,Martha D.
    Abstract: This paper presents new data on the micro structure of the export sector for 45 countries and studies how exporter behavior varies with country size and stage of development. Larger countries and more developed countries have more exporters, larger exporters, and a greater share of exports controlled by the top 5 percent. The extensive margin (more firms) plays a greater role than the intensive margin (average size) in supporting exports of larger countries. In contrast, the intensive margin is relatively more important in explaining the exports of richer countries. Exporter entry and exit rates are higher and entrant survival is lower at an early stage of development. The paper discusses the results in light of trade theories with heterogeneous firms and the empirical literature on resource allocation, firm size, and development. An implication from the findings is that developing countries export less because the top of the firm-size distribution is truncated.
    Keywords: Free Trade,Economic Theory&Research,Debt Markets,Country Strategy&Performance,Currencies and Exchange Rates
    Date: 2015–10–21
  12. By: te Velde Dirk Willem; Lemma Alberto
    Abstract: Effective state-business relations (SBRs) have been lacking in industrial policy thinking despite the strong theoretical case for SBRs. The empirical study of state-business relations in developing countries has emerged only recently, with notable contrib
    Keywords: Business enterprises, Economic growth, Industrial policy
    Date: 2015
  13. By: D'Artis Kancs (European Commission – JRC - IPTS); Boriss Siliverstovs (KOF Swiss Economic Institute – ETH Zurich)
    Abstract: The present paper estimates and decomposes the employment effect of innovation by R&D intensity levels. Our microeconometric analysis is based on a large international panel data set from the EU Industrial R&D Investment Scoreboard. Employing flexible semi-parametric methods - the generalised propensity score - allows us to recover the full functional relationship between R&D investment and firm employment, and to address important econometric issues, which is not possible in the standard estimation approach used in the previous literature. Our results suggest that modest innovators do not create and may even destruct jobs by raising their R&D expenditures. Most of the jobs in the economy are created by innovation followers: increasing innovation by 1% may increase employment up to 0.7%. The job creation effect of innovation reaches its peak when R&D intensity is around 100% of the total capital expenditure, after which the positive employment effect declines and becomes statistically insignificant. Innovation leaders do not create jobs by further increasing their R&D expenditures, which are already very high.
    Keywords: Innovation, R&D investment, causal inference, semi-parametric, employment, job creation, GPS
    JEL: C14 C21 F23 J20 J23 O30 O32 O33
    Date: 2015–07
  14. By: Haque, Adnan ul; Faizan, Riffat; Zehra, Nasreen; Baloch, Akhtar; Nadda, Vipin; Riaz, Fayyaz
    Abstract: This empirical study explores different Leadership styles' dimensions influencing culturaloriented female employees' motivation in rapidly improving Pakistan's I.T sector. Hypothetico-Inductive-Deductive model was adapted to construct theoretical framework by opting mixed method under realism philosophy. Sample size is 357 female employees working in software houses of Pakistan's 10 cities selected by combining convenience sampling and stratified sampling techniques. Survey questionnaire contained close-ended questions based on Bass and Avolio (1994) Full Range MLQ Model and WMS. Moreover, 36 female employees were interviewed selected from top five business cities' of Pakistan's software houses through convenience sampling. Results indicate transformational leadership style's dimensions are dominant in motivating female employees scoring overall 0.75. Moreover, transactional has moderate positive relation (0.38) with sub-motivational variables. Though, 'Management-By-Expectation (Passive)' along with Laissez-faire leadership style has no relationship with sub-variables of motivation. In I.T sector of Pakistan, female employees are mainly motivated by interpersonal relations with supervisors, peers, and subordinate, friendly environment, flexibility, socialization, recognition, responsibility, social rewards, and most importantly improved working conditions. It is essential to motivate female workers through 'walk-the-talk' approach along with coerce and accurate vision.
    Keywords: Transformational Leadership, Transactional Leadership, Laissez Faire Leadership, Dimensions of Leadership Styles, Cultural-oriented female workforce, I.T Industry
    JEL: L29 L86 M1 M12
    Date: 2015–10–18
  15. By: Tuncay, Musa
    Abstract: In the face of rapid change and increasing competition all over the world, Strategic Management has begun to gain importance. Not only in the private sector, considering all organizations operating in the public and third sector, more strategic thinking and strategic planning has become more important than before in the face of globalization and competition cases it brings. The most important feature of strategic management is that it provides the opportunity for an organization to analyze both its own status and the environment outside of the organization. Strategic management which is in broad use in the private sector has also become indispensable for public sector. Peculiar purposes of public management present a different service understanding as compared to the private sector. Public management generally does not have profit purposes in its services and has to draw attention to and solve the social problems. This article emphasizes recognition of the importance of the strategic management in public and defines the important elements of the SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis that must be included within the integrated model of strategic management. A face-to-face citizen expectation questionnaire was conducted with 1500 people together with internal and external stakeholder questionnaires in Eyyübiye district for the Strategic Management of Eyyübiye Municipality, Şanlıurfa and a SWOT(Strengths, Weaknesses, Opportunities, Threats)analysis was established. The purpose of this article is to raise awareness of the importance of SWOT analysis in strategic management in public.
    Keywords: Strategic Management, SWOT Analysis, SWOT
    JEL: M19
    Date: 2015–06

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