nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒03‒10
twenty-two papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  2. R&D, Export, and Investment Decision By O.A. Carboni; G. Medda
  3. EU Regional and Cluster policies within their synergic effects By Marcel Kordos; Sergej Vojtovic
  4. A parametric frontier model for measuring eco-efficiency By Orea, Luis; Wall, Alan
  5. Contextualizing Knowledge Sharing Strategy: The Case of an International Organization in the area of Development assistance By Thierno Tounkara; Pierre-Emmanuel Arduin
  6. The Organisation of Services of General Interest in Finland By Johan WILLNER; Sonja GRÖNBLOM
  7. Does Privatization Increase Firm Performance in Nigeria?: An Empirical Investigation By Abutu, Usman Ojonugwa
  8. The influence of CEO departure type and board characteristics on firm performance By Wided Bouaine; Lanouar Charfeddine; Mohamed Arouri; Frédéric Teulon
  9. Does Techological Progress Affect the Location of Economic Activity? By Tabuchi, T.; Thisse, J.-F.; Zhu, X.
  10. Innovation decision of Tunisian service firms: an empirical analysis By Hanen SDIRI; Mohamed AYADI
  11. Circular Causality of R&D and Export in EU countries By Dilek Cetin; Michele Cincera
  12. Does Greater Capital Hamper the Cost Efficiency of Banks? By Jitka Lesanovska; Laurent Weill
  13. Sustainable Intrapreneurship - The GSI Concept and Strategy - Unfolding Competitive Advantage via Fair Entrepreneurship By Anton, Roman
  14. Judicial Independence, Judges’ Incentives and Efficiency By Melcarne, Alessandro; Ramello, Giovanni B.
  15. Supporting export competitiveness through port and rail network reforms : a case study of South Africa By Pieterse,Duncan; Farole,Thomas; Odendaal,Martin; Steenkamp,Andre
  16. Structural Reforms and Productivity Growth in Emerging Market and Developing Economies By Era Dabla-Norris; Giang Ho; Annette Kyobe
  17. Firm Dynamics and Employment Protection: Evidence from Sectoral Data By A. Bottasso; M. Conti; G. Sulis
  18. The quest for status and R&D-based growth By Hof, Franz X.; Prettner, Klaus
  19. Essay on the State of Research and Innovation in France and the European Union By Antoine Kornprobst
  20. Is investing in apprentices related to decision-makers’ altruism and their high time preference? By Jansen A.
  22. Management Board Composition of Banking Institutions and Bank Risk-Taking: The Case of the Czech Republic By Diana Zigraiova

  1. By: Percin Batum (Anadolu University)
    Abstract: The purpose of the exploratory study is to compare the perspectives of management and marketing sciences on networks and reveal out why and how firms become connected and interdependent, and how the relationships affect their ability to compete according to these perspectives. For this purpose, network theory has been taken as a common ground. The management theories which form the network theory and relationship marketing have been discussed. In this paper, the difference between the perception of management and marketing sciences on networks have been expressed in terms of the components of ARA Model. It is possible to notice that some issues have been reverted under different components. This paper aims to put emphasize on that the two arm in arm sciences are in the opposite edges and explain why by presenting the attitude of two different sciences to networks through a model which explains the network theory. It is hoped that this paper helps decision takers to be enlightened if they act as a manager or marketer.
    Keywords: Relationship marketing, The network approach, ARA model, Interaction approach, Resource dependence theory, Social exchange theory, Institutional theory
    JEL: M31 L19 M19
  2. By: O.A. Carboni; G. Medda
    Abstract: This paper provides an empirical analysis of the mechanism through which R&D and export influence investment decision. The analysis is based on a large representative and cross-country comparative sample of manufacturing firms across seven European countries. To control for reverse causality between export decision and R&D spending and investment, we use an instrumental variable analysis to overcome the problem of endogeneity. Employing a three step procedure, it is assumed that R&D decision is endogenously determined by receiving public subsidies, and, in turn, affect investments through its impact on engagement by the firm in international trade. The results suggest that R&D positively affects export propensity. We find that there is an average increase in propensity to invest for those firms which decide to engage in R&D activities. The results also reveal that the effect of decision to export on investment behaviour is positive and highly significant, when accounting for endogeneity of export activity.
    Keywords: r&d, IV model, export
    JEL: O32 F14 B22
    Date: 2016
  3. By: Marcel Kordos (Alexander Dubcek University in Trencin); Sergej Vojtovic (Alexander Dubcek University in Trencin)
    Abstract: EU Regional policy appears to be one of the most important current programs and agenda at EU level which support clusters in emerging industries in EU. Based on the comparative analysis of European cluster policy and EU Regional policy mutual interaction the object of the paper is to assess the impact of the EU Cluster policy effects on the EU Regional policy regarding the EU competitiveness enhancement in the international economics system. Technological advance, knowledge based production, innovation implemented into new technologies are the outputs of effective synergy how the EU cluster policy can be involved in the EU Regional policy. Those are the tools leading to increasing economic growth, sustainable social and economic development and higher quality of life of European Communities inhabitants. The EU position analysis in international economic relations will also be the object of study with regards to its competitiveness enhancement possibilities within the global economic environment while using the latest science and technology achievements as a synergic output of the EU Regional and Cluster policy interaction.
    Keywords: social and economic development, technology and innovation, international economics, EU competitiveness enhancement
    JEL: O52
  4. By: Orea, Luis; Wall, Alan
    Abstract: Eco-efficiency has been defined by the OECD as “the efficiency with which ecological resources are used to meet human needs” and can be considered a measure of environmental performance that takes into account both the environmental and economic objectives of firms. Frontier models are an ideal tool for measuring eco-efficiency. While the literature applying frontier models to the empirical measurement of eco-efficiency has been growing steadily in recent years, it has exclusively relied on non-parametric Data Envelopment Analysis (DEA) methods to measure eco-efficiency and its determinants. We propose a parametric Stochastic Frontier (SF) model to measure eco-efficiency, arguing that this has several potential advantages. We provide an empirical application using cross-sectional data from Spanish dairy farms which includes information on environmental and economic indicators as well as a series of potential socio-economic determinants of eco-efficiency.
    Date: 2015
  5. By: Thierno Tounkara (TEM Research (Institut Mines-Télécom-Télécom Ecole de Management)); Pierre-Emmanuel Arduin (DRM - Dauphine Recherches en Management - Université Paris IX - Paris Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper proposes an operational evaluation grid which helps Organizations to determine the perception employees have about the degree of alignment between their Information System (IS) supporting knowledge sharing and different organizational culture contexts. Relying on this perception, Organizations can: (1) analyze barriers to a successful use of information system functionalities for greater efficiency of knowledge sharing and (2) identify appropriate IS functionalities they should invest on to increase the dynamic of knowledge sharing. A case study illustrates the use of our evaluation grid and the implications of this work are finally discussed at the end of this paper.
    Keywords: knowledge sharing,knowledge management,information system,organizational culture,strategic alignment
    Date: 2015–09–03
  6. By: Johan WILLNER (Åbo Akademi University, Department of Economics, Turku, Finland); Sonja GRÖNBLOM
    Abstract: Like in most other European countries, services of general interest in Finland have in recent years been subject to competition, increased private provision, and in some cases privatisation. This development is motivated by expected cost reductions, by EUregulations, by ideology and fashion, and in some cases also by a desire to generate sales revenues. Empirical evaluations have provided mixed results, but the relatively successful history of Finland’s state enterprises makes it hard to believe that the public sector would be unable to organise SGI-services efficiently. A number of potential market failures suggest that renationalisation should be taken seriously as an alternative to regulation. This would not necessarily be a very radical policy, because public ownership is still fairly prominent among SGIs in Finland
    Keywords: public ownership, privatisation, cost efficiency, social objectives
    JEL: H11 H42 H44 L33 L90
    Date: 2015
  7. By: Abutu, Usman Ojonugwa
    Abstract: The public enterprises have generally failed to provide the social and economic development sought by the post-independence era in African countries, hence privatization has been central to policy making in the recent times. This paper offers insight into the validity of the efficacy of privatization by investigating not only whether privatization has improved financial (profitability) performance of firms but also whether such improvement has impact on the operational efficiency of privatized firms for the period 1990-2001 in Nigeria. Using a panel data for a sample of 20 privatized firms obtained from the Nigerian Stock Exchange and Securities and Exchange Commission, the result shows an increase in all the profitability ratios after privatization. However, only the return on assets and return on sales are significant in explaining the difference between pre- and post-privatization performance of firms in Nigeria. The result of the operational efficiency shows a significant increase in the mean (median) values of sale efficiency and income efficiency. Interestingly, while output (real sales) and employee income of firm significantly increase after privatization, the number of employees insignificantly decreases after privatization. The paper concludes that privatization in Nigeria has worked in the sense that it improves the financial and operational efficiency performance of firms.
    Keywords: Privatization, Firm Performance, Operational Efficiency, Profitability, Nigerian Stock Exchange
    JEL: L33
    Date: 2015–10–03
  8. By: Wided Bouaine; Lanouar Charfeddine; Mohamed Arouri; Frédéric Teulon
    Date: 2016–02–18
  9. By: Tabuchi, T. (University of Tokyo); Thisse, J.-F. (Université catholique de Louvain, CORE, Belgium); Zhu, X. (Zhejiang University)
    Abstract: We show that how technological innovations and migration costs interact to shape the space-economy. Regardless of the level of transport costs, rising labor productivity fosters the agglomeration of activities, whereas falling transport costs do not affect the location of activities. When labor is heterogeneous, the number of workers residing in the more productive region increases by decreasing order of productive efficiency when labor productivity rises. This process affects in opposite directions the welfare of those who have a lower productivity.
    Date: 2015–01–14
  10. By: Hanen SDIRI; Mohamed AYADI
    Date: 2016–02–18
  11. By: Dilek Cetin; Michele Cincera
    JEL: F14 O33
    Date: 2015–12–01
  12. By: Jitka Lesanovska; Laurent Weill
    Abstract: The aim of our research is to analyze the relation between capital and bank efficiency by considering both directions of the Granger causality for the Czech banking industry. We use an exhaustive dataset of Czech banks from 2002 to 2013. We measure the cost efficiency of banks using stochastic frontier analysis. We perform Granger-causality tests to check the sign and significance of the causal relation between capital and efficiency. We embed Granger-causality estimations in the GMM dynamic panel estimator. We find no relation between capital and efficiency, as neither the effect of capital on efficiency, nor the effect of efficiency on capital is significant. The financial crisis does not influence the relation between capital and efficiency. Our findings suggest that tighter capital requirements like those under Basel III do not affect financial stability through the efficiency channel. Policies favoring capital levels and efficiency of the banking industry can therefore be designed separately.
    Keywords: Bank capital, Basel III, efficiency
    JEL: G21 G28
    Date: 2015–12
  13. By: Anton, Roman
    Abstract: Entrepreneurship and intrapreneurship are among the most important prerequisites and concepts of modern economics and free market theory. Intrapreneurship is defined here in its broadest definition, as grades of entrepreneurship within a given system or entity, such as a company, organization, sector, cluster, national or even global economy. Hereby, intrapreneuring is more than only providing some opportunity to some employees. The wider definition rather unfolds intrapreneuring into a new universal concept of economics, efficiency, and effectiveness, which helps to solve some key dilemmas including the principal-agent-problem (PAP). This study reviews intrapreneuring in the public and private sector based on major empirical research. To optimally manage intrapreneuring, a set of sound goals and incentives, contextual, structural, behavioral, and legal-contractual measures are needed, as well as fair chances and a fair bargain for all. Free markets require internal opportunity and frameworks of fair competition. On this account, sustainable intrapreneurial modules could give rise to industry5.0. Intrapreneuring is proposed to reflect all grades of entrepreneurship that are itemized into its key dimensions independence, opportunity risk, and reward. Balanced dimensions of the right level assure graded sustainable intrapreneuring (GSI) for optimal output. Due to the universality of this concept, it applies for all work systems and sectors, public or private, micro- and macroeconomically, together with other 3D-concepts of economics. Social intrapreneurship, 3BL-GSI, or shared value strategies, could solve most societal problems if financed via QE in a GSI-conform digital full-reserve economy.
    Keywords: entrepreneurship; entrepreneuring; intrapreneurship; intrapreneuring; fairness; fair; equal opportunity; risk; reward; competition; economy; independence; concept; GSI; graded; sustainable; intrapreneuring; Pinchot; innovation; competitive; advantage; strategy; HR; organizational; development; social; shared value; public; private; public-private; partnership; sector; dimension; reserve; work; system; mission; vision; 3BL; TBL; optimal; output; monetary; incentive; opportunity; possibility; discrimination; economic; profit; environment; business; free; market; intra; extra; open; access; correlation; macroeconomics; country; national; economics; KPIs; performance; network; PAP; PAPs; PA; principal; agent; principal-agent; problem; entrepreneurialism; proportionality; equilibrium; equilibria; regression; review; research; analysis; compilation; sustainably; decentralization; hierarchy; structure; top-down; bottom-up; management; TCT; SMEs; SME; MNCs; MNC; R&D; SMART; life; IT; EVP; theory; extrapreneuring; ICS; CEOs; MPS; JDR; LMX; PEAA; PrI; TPM; PVM; E-Gov; PI; GI; TTIP; industry4.0; industry5.0; Corporate; Firm; employee; entrepreneurial; activity; frameworks; platforms; life-cycle; entry-level; positions; intramarket; extramarket; US; EU; world; global; international; comparison; growth; GDP; index; economical; empirical; data; statistical; organizational; culture
    JEL: A1 D0 D00 D01 D02 D20 D21 D22 D23 D50 E00 H0 H00 I0 M0 M00 M10 M12 M2 M5 M50 M51 M52 M54 P1 P10 Z1 Z10
    Date: 2014–10–31
  14. By: Melcarne, Alessandro; Ramello, Giovanni B.
    Abstract: Although often assumed by economic theory, an efficient judicial system sounds an oxymoron. In this work we suggest an innovative approach investigating the determinants of court performance. Our focus is on the ideal institutional environment fostering the appropriate set of incentives for judges to operate efficiently. In this setting, we find evidence that greater independence enjoyed by the judiciary from politics induces more competition among judges to obtain professional upgrades. Such environment will incentivize ambitious individuals to be more efficient, thus positively affecting the aggregate performance of the judiciary.
    Keywords: Judicial Efficiency, Judicial Independence, Judicial Decision-Making, DEA, Clearance Rate
    JEL: K41 K49 C14 C34
    Date: 2015–11
  15. By: Pieterse,Duncan; Farole,Thomas; Odendaal,Martin; Steenkamp,Andre
    Abstract: Transport and logistics infrastructure is a critical determinant of the competitiveness of a country's producers and exporters. Well-functioning transport and logistics infrastructure relies not just on hardware, but critically on the operating environment that emerges from the interaction between private sector operators; national policies and regulatory regimes; and, in many countries, state-owned owners and operators of core infrastructure. This paper looks at the case of South Africa, where constraints in access, pricing, reliability, and network interfaces, particularly in the port and rail network, are eroding the competitiveness of South African exporters. The paper draws on interviews with a wide range of exporters along with secondary research to examine South Africa's port and rail network, and explores the underlying factors contributing to these constraints, including chronic underinvestment, an inadequate regulatory environment, insufficient private sector participation, and weak regional integration. The paper concludes with a review of the reforms needed to deliver a more broadly accessible and competitive rail and port sector based on international case examples. It highlights the need for institutional reforms to promote competitive pricing; private sector participation to increase investment and improve service delivery; information and coordination to address market failures and improve access; and cooperation to improve intermodal, interregional, and institutional interfaces.
    Keywords: Transport and Trade Logistics,Common Carriers Industry,Railways Transport,Airports and Air Services,Transport Economics Policy&Planning
    Date: 2016–01–11
  16. By: Era Dabla-Norris; Giang Ho; Annette Kyobe
    Abstract: This paper empirically assesses the role of structural and institutional reforms in driving productivity growth across countries at different stages of development, using a distance-to-frontier framework. It gauges whether particular policies and reforms matter more for increasing productivity growth at the aggregate and sectoral levels for some emerging market and developing economies (EMDEs) than others. Recognizing the possibility of time lags between reform implementation and reform payoffs, the paper also examines how productivity gains from various reforms evolve over the the short- and medium-term.
    Keywords: Fiscal reforms;Labor productivity;Total factor productivity;Labor market reforms;Agricultural sector;Manufacturing sector;Services sector;Emerging markets;Developing countries;Total factor productivity; Labor productivity; Economic Growth; Structural Reforms; Institutions; Emerging Market and Developing Countries; Agriculture; Industry; Services
    Date: 2016–02–09
  17. By: A. Bottasso; M. Conti; G. Sulis
    Abstract: In this paper we analyse the impact of employment protection legislation (EPL) on firms’ entry and exit rates for a large sample of industries of thirteen countries selected from the most recent version of the OECD Structural and Business Statistics Database. Using a differences-in-differences identification strategy, we find that more stringent EPL is associated to lower entry and exit rates, particularly in industries characterized by higher job reallocation intensity. We also find that both collective and individual dismissal regulations reduce firms’ entry and exit rates. Interestingly, our results suggest that the negative effects of EPL is stronger in the case of firms between one and nine employees while, in the case of larger ones, results are not clear-cut. An extensive sensitivity analysis confirm the robustness of our findings.
    Keywords: entry & exit, turnover, employment protection legislation, reallocation
    JEL: J65 L11 L26
    Date: 2016
  18. By: Hof, Franz X.; Prettner, Klaus
    Abstract: We analyze the impact of status preferences on technological progress and long-run economic growth. For this purpose, we extend the standard relative wealth approach by allowing the two components of the representative household's wealth, physical capital and shares, to differ with respect to their status relevance. Relative wealth preferences imply that the effective rate of return of saving in the form of a particular asset is the sum of its market rate of return and its status-related extra return. It is shown that the status relevance of shares is of crucial importance: First, an increase in the intensity of the quest for status raises the steady-state economic growth rate only if the status-related extra return of shares is strictly positive. Second, for any given degree of status consciousness, the long-run economic growth rate depends positively on the relative status relevance of shares. Third, while in the standard model the decentralized long-run economic growth rate is less than its socially optimal counterpart, the wealth externalities in our model counterbalance this distortion to some extent provided that shares matter for status.
    Keywords: status concerns,relative wealth,technological progress,long-run economic growth,social optimality
    JEL: D31 D62 O10 O30
    Date: 2016
  19. By: Antoine Kornprobst (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Innovation in the economy is an important engine of growth and no economy, whatever its complexity and degree of advancement, whether it is based on industry, agriculture, high tech or the providing of services, can be truly healthy without innovating actors within it. The aim of this work, done by an applied mathematician working in finance, not by an economist or a lawyer, isn't to provide an exhaustive view of the all the mechanisms in France and in Europe that aim at fostering innovation in the economy and to offer solutions for removing all the roadblocks that still hinder innovation; indeed such a study would go far beyond the scope of this study. What I modestly attempted to achieve in this study was firstly to draw a panorama of what is working and what needs to perfected as far as innovation is concerned in France and Europe, then secondly to offer some solutions and personal thoughts to boost innovation.
    Keywords: Law and Economics,Financial Markets,Financial institutions,Innovation,Start-up Creation
    Date: 2016–01
  20. By: Jansen A. (GSBE)
    Abstract: In this article, the relation between firms engagement in apprenticeship training and two important economic preferences, i.e. the decision makers altruism and time preference, is analyzed. Firstly, the relation between these two preferences and a firms decision to provide apprenticeship places extensive margin is examined. Secondly, for firms that train, the effect on the amount of investments in apprenticeship training intensive margin is analyzed. The results show that the degree of altruism of a decision maker is positively, albeit weakly significant, associated to the probability to provide apprenticeship places as well as substantially related to the amount of investments in apprenticeship training. Time preferences are not related to the training decision extensive margin but significantly related to the amount of investments in training.
    Keywords: Altruism; Philanthropy; Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity; Human Capital; Skills; Occupational Choice; Labor Productivity; Personnel Economics: Training;
    JEL: J24 M53 D92 D64
    Date: 2016
  21. By: Hanh Pham (University of Greenwich)
    Abstract: This paper investigates whether firms with foreign capital participation are more productive than domestically-owned firms in Vietnam; and whether the presence of firms with foreign capital has a crowding-out effect on domestically-owned firms. We utilize a rich dataset compiled by the Vietnamese General Statistical Office (GSO) from 2001–2010 and a dynamic panel data approach proposed by Arellano and Bond (1991) and Blundell and Bond (1998) to address the issue of endogeneity. We report that the share of foreign capital in firm equity has a positive and significant effect on productivity of foreign-owned firms in Vietnam. With respect to crowding-out effects, we identify opposing dynamics at work. On the one hand, we observe a firm-level crowding-out effect due to higher shares in turnover as the level of foreign capital increases. On the other hand, we observe an industry-level crowding-in effect as the share of both domestic and foreign-owned firms in turnover is higher when the industry-level of foreign capital intensity increases. Finally, we report that the crowding-in and crowding-out effects do not differ as the level of foreign capital share differs between firms and industries. The findings indicate that domestically-owned Vietnamese firms tend to lose market share to their foreign-owned competitors when they compete head to head; but they also tend to benefit from higher levels of foreign capital invested in their industry.
    Keywords: dynamic panel, foreign direct investment, market-stealing effect, productivity, Vietnamese enterprises
    JEL: A10 C13 D20
  22. By: Diana Zigraiova
    Abstract: The paper investigates how the management board composition of banking institutions affects their risk-taking behavior in the Czech Republic. More specifically, we examine the effect of average director age, the proportion of female directors, the proportion of non-national directors, and director education level on four different bank risk proxies. We build a unique data set comprising selected biographical information on the management board members of Czech financial institutions holding a banking license over the 2001-2012 period. Our most robust finding is that higher proportions of non-national directors increase bank risk as measured by profit volatility and reduce bank stability as captured by the Z-score for the Czech banking sector overall and for the segments of general commercial banks, small and mid-sized banks and adequately capitalized banks. Moreover, we also detect risk-increasing implications of board size for the segments of building societies and small and mid-sized banks. As for average board tenure, its effect on risk-taking varies depending on bank characteristics. We find mixed evidence on the effect of female directors and do not find any strong effect of directors' age on risk in the Czech banking sector. All in all, the results of our analysis are subject to the proxy of bank risk used. The reader should keep in mind that higher absolute level of bank risk is not necessarily unfavorable as it does not capture if risk-taking behavior is excessive for a given return.
    Keywords: Banks, management board composition, panel data, risk-taking
    JEL: C33 G21 G34 J16
    Date: 2015–12

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