nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒03‒17
fifteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  2. New firm formation in the wake of mergers and acquisitions: Are employees pushed or pulled into entrepreneurship? By Lougui, Monia; Broström, Anders
  3. Upstreamness in the Global Value Chain: Manufacturing and Services By Kenji Suganuma
  4. Innovation systems and policy: A tale of three countries By Jan Fagerberg
  5. The ‘fit’ between forward-looking activities and the innovation policy governance sub-system By Attila Havas; K. Matthias Weber
  6. Dimensions of internationalisation – universities at home and abroad By Luke Georghiou; Philippe Larédo
  7. Size dependent tax incentives, threshold effects and horizontal subcontracting in Indian manufacturing: Evidence from factory and firm-level panel data sets By K.V. Ramaswamy
  8. Small, young, and exporters: New evidence on the determinants of firm growth By Marco Grazzi; Daniele Moschella
  9. Is small better? A comparison of the effect of large and small dams on cropland productivity in South Africa By Elodie Blanc; Eric Strobl
  11. Gender, ethnicity and teaching evaluations : Evidence from mixed teaching teams By Wagner, N.; Rieger, M.; Voorvelt, K.J.
  12. Technical Efficiency of Takaful Industry: A Comparative Study of Malaysia and GCC Countries By Hela Miniaoui; Anissa Chaibi
  13. Proactive CSR: Analytical Hierarchy Process And Empirical Assessment In The French Context By Mohamed Akli Achabou; Sihem Dekhili; Linda Prince
  14. Occupational Choice, Human Capital, and Financial Constraints By Rui Castro; Pavel Sevcik
  15. Women’s Leadership and Corporate Performance By Qian, Meijun

    Abstract: The analysis of the functioning of Poland within the European Union allows to conclude that the economy of our country effectively adapts to the structures of the European Union. The visible positive effects include a.o. an increase of the financial credibility and of the investment attractiveness.The current economic growth is a result of entrepreneurship, cheap labor force, the catch-up effect resulting from the import of technologies from developed countries. The growth is mainly due to an increase in the total factor productivity. This means innovation and its ability to be implemented. Poland's shift in the innovation ranking of the EU countries up from the group of modest innovators in 2012 to moderate innovators in 2013 is not very satisfactory. The goal of this paper is to present the role of EU funds in improving innovation both within the "Innovative Economy" program 2007-2013 and the "Smart Growth" program 2014-2020.Special attention was paid to small and medium-sized enterprises, which are the driving force of economic development, and to balancing the levels of development of Polish regions. A new strategy for the financing of small and medium-sized enterprises in both analyzed periods was also presented. Particular attention was paid to the promotion of research and its links with business, the development of innovative technologies and actions improving the competitiveness of enterprises.The paper is also focused on the evolution of financial instruments allowing the change from the business innovation model based on buying innovative solutions to the creation of the firm's own innovations. The creation of a viable model of knowledge-based economy linking science with business is the most important task for improving innovation.The new perspective and new aid programs 2014-2020 will provide strong support for future beneficiaries of the EU budget grants. Smart use of EU support for innovative economy is the biggest challenge faced not only by Poland but the whole Central and Eastern Europe.
    Keywords: EU funds, SMEs, financing innovation
    JEL: O31 M13 D92
  2. By: Lougui, Monia (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This study investigates the relationship between mergers and acquisitions (M&A) and employee entrepreneurship in human capital-intensive service sectors. We investigate two sets of theoretical mechanisms. First, M&As may push employees entrepreneurship by lowering the average barriers of leaving the current employment (i.e. being associated with general deterioration of working conditions). Second, M&A activities may generate new entrepreneurial opportunities, which are first and foremost accessible by employees directly affected by M&As. Results on employee entrepreneurship in 3 039 Swedish firms during the time period 2000-2009 confirm that the number of firms spawned from a specific incumbent increases following an M&A. Push-oriented factors are found to contribute to this effect, but a dominating part of the total effect remains unexplained. This suggests that pull-oriented explanations of opportunity creation in the wake of M&As constitute an important avenue for further research on employee entrepreneurship.
    Keywords: employee entrepreneurship; mergers; acquisitions; opportunity costs; entrepreneurial opportunity
    JEL: G34 L26 L80 M50
    Date: 2016–02–22
  3. By: Kenji Suganuma (Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail:
    Abstract: This paper investigates gupstreamness, h which measures the distance of an industry from the final use in terms of the number of production stages, using the WIOD global input-output tables, which cover 40 major countries. We find that global upstreamness increased in the mid -2000s. This trend is mainly due to developments in the manufacturing sector, but the service sector also contributed to the increase. In manufacturing, upstreamness has increased mainly in East Asian economies including Japan, which is consistent with the recent deepening of global value chains in this area. In services, the growing role of business services contributed to the deepening of value chains, such as outsourcing via leasing and staff agencies, and linkages to new businesses through mobile telecommunications. In further research, the concept of upstreamness can be applied to the analysis of industries f international competitiveness and of the influence of demand shocks across countries.
    Keywords: Upstreamness, Global value chain, Production fragmentation, I-O tables
    JEL: D57 F14 O14 O24 O53 O57
    Date: 2016–02
  4. By: Jan Fagerberg (University of Oslo, Ålborg University and University of Lund)
    Abstract: Nordic policy makers have long been aware of the fact that prosperity requires more than just, say, well-functioning labor markets and/or generous social and educational policies. It also requires that the capabilities of the labor force are put to productive use in a way that enhances the productivity of the nation and hence the returns for the stakeholders. Nordic policy makers have therefore for a long time experimented with various policy instruments supporting productivity growth. Over the years different labels have been attached to such policy experiments (science, technology, industry policy etc.), but more recently the term innovation policy has become more widely used, and this practice is also adopted here. The paper provides an account of how innovation policies have evolved in three Nordic countries (Sweden, Norway and Finland) and considers the possible lessons from what has been done. The discussion informed by the literature on national innovation systems (introduced in the second section of the paper).
    Date: 2016–02
  5. By: Attila Havas (Institute of Economics - Centre for Economic and Regional Studies, Hungarian Academy of Sciences); K. Matthias Weber (AIT Austrian Institute of Technology GmbH, Donau-City-Straße 1, 1220 Vienna, Austria)
    Abstract: Forward-looking activities (FLAs) can influence innovation systems in various ways to a significant extent. This paper focuses on changes induced by FLAs in the innovation policy governance sub-systems (IPGSs) of the national innovation system (NIS). Our knowledge is surprisingly limited even on this subset of FLA impacts, despite several decades of practice and non-negligible analytical efforts. We propose new taxonomies of FLAs and IPGSs and explore hypotheses on the likely ‘fit’ between different types of FLAs and various IPGSs. Countries selected to illustrate the relevance of our analytical framework include Germany, Greece, and Hungary. Our intention is contribute to a more refined theory building concerning the role and likely impacts of FLAs. Further, as a better understanding of impacts supports the design of more appropriate and effective FLAs, as well as more insightful evaluation of FLAs, this approach is of practical relevance, too.
    Keywords: Forward-looking activities (FLAs); Impacts of FLAs; STI policy governance sub-systems; Tentative taxonomies
    JEL: B52 O30 O38 O39
    Date: 2016–01
  6. By: Luke Georghiou (The University of Manchester [Manchester], MIoIR - Manchester Institute of Innovation Research - MBS - Manchester Business School); Philippe Larédo (MIoIR - Manchester Institute of Innovation Research - MBS - Manchester Business School, LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Société - Institut national de la recherche agronomique (INRA) - UPEM - Université Paris-Est Marne-la-Vallée - École des Ponts ParisTech (ENPC) - ESIEE Paris - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Educational activities have not been exempt from the trends towards globalisation of economic and cultural activity. The environment in which universities operate is characterised by finance, goods, services, knowledge and cultural activities flowing across borders in the context of worldwide markets, multinational organisations and competition. Most pertinent is the growing movement of people, temporary and permanent. Analysts of the international activities of universities regularly distinguish between internationalisation and the wider context of globalisation. In this chapter we shall define internationalisation as the sum total of the practices universities develop to adapt to this new context.
    Keywords: university,internationalization,higher education,distance education
    Date: 2015
  7. By: K.V. Ramaswamy (Indira Gandhi Institute of Development Research; Institute of Economic Growth)
    Abstract: India's industrial protection and promotion policies for small-scale enterprises have figured prominently in the literature on industrialization policies in developing countries. These size dependent tax incentives could encourage fragmentation of production and prevent natural up-scaling of firm sizes. The author presents a new empirical application of the idea of threshold burden of tax incentives in India. The study is based on a large unbalanced panel of manufacturing factories in the formal sector spanning the period 1999-2008 and a panel of manufacturing companies covering the period 1990-2010. Average subcontracting intensity was found to be significantly higher in manufacturing factories and firms with sales turnover below the ceiling level set by the tax rules. Econometric tests based on Fixed Effect models supported the hypothesis that firms take advantage of tax incentives by staying below the threshold sales turnover. This is consistent with the idea of threshold effects of size dependent tax incentives.
    Keywords: Firm Size, Threshold Effects, Regulations, manufacturing and small-scale enterprises
    JEL: O14 O17 L60 H32 H25
    Date: 2016–02
  8. By: Marco Grazzi; Daniele Moschella
    Abstract: This work investigates how the export status of the firm influences the patterns of growth at different age classes. We address this research question resorting to a novel set of data that links together the universe of Italian firms and detailed data on export transactions. We find that the positive relationship between export status and growth declines with firm age. Further, we also find that, even when accounting for the role of age, the negative size-growth relationship does not disappear, contrary to some recent evidence. These results, which are robust to a series of controls, suggest for a positive signaling role of the export status which is stronger for young exporters or born globals. Exploiting the product-country level dimension of the customs data we also provide, for the first time, evidence on differences in exchange rates pass through between young and experienced exporters. In particular, we find that early exporters appear to be well equipped to face exchange rates variations as their exports decrease less following a currency appreciation.
    Keywords: Firm age and performance, Firm growth, International trade, Born global, Exchange rates pass-through
    Date: 2016–02–25
  9. By: Elodie Blanc; Eric Strobl
    Date: 2016–02–18
  10. By: Y.-F Livian (Centre de Recherche Magellan - Université Jean Moulin - Lyon III - Institut d'Administration des Entreprises (IAE) - Lyon)
    Abstract: Beyond the debate about cultural obstacles to introducing management in Central Europe, the article highlights some basic principles relevant in any case about HRM practices useful in this region.
    Keywords: HRM, Central Europe,culture
    Date: 2015
  11. By: Wagner, N.; Rieger, M.; Voorvelt, K.J.
    Abstract: This paper studies the effect of teacher gender and ethnicity on student evaluations of teaching quality at university. We analyze a unique data-set featuring mixed teaching teams and a diverse, multicultural, multi-ethnic group of students and teachers. Co-teaching allows us to study the impact of teacher gender and ethnicity on students’ evaluations of teaching exploiting within course variation in an empirical model with course-year fixed effects. We document a negative effect of being a female teacher on student evaluations of teaching, which amounts to roughly one fourth of the sample standard deviation of teaching scores. Overall women are 11 percentage points less likely to attain the teaching evaluation cut-off for promotion to associate professor. The effect is robust to a host of co-variates such as course leadership, teacher experience and research quality. There is no evidence of a corresponding ethnicity effect. Our results point to an important gender bias and indicate that the use of teaching evaluations in hiring and promotion decisions may put female lectures at a disadvantage.
    Keywords: student evaluations of teaching, gender, ethnicity, bias, course fixed effects
    JEL: I21 J71
    Date: 2016–03–01
  12. By: Hela Miniaoui; Anissa Chaibi
    Date: 2016–02–18
  13. By: Mohamed Akli Achabou; Sihem Dekhili; Linda Prince
    Date: 2016–02–18
  14. By: Rui Castro (University of Western Ontario); Pavel Sevcik (ESG UQAM)
    Abstract: We study the aggregate productivity effects of firm-level financial frictions. Credit constraints affect not only production decisions but also household-level schooling decisions. In turn, entrepreneurial schooling decisions impact firm-level productivities, whose cross-sectional distribution becomes endogenous. In anticipation of future constraints, entrepreneurs under-invest in schooling. Frictions lower aggregate productivity because talent is misallocated across occupations, and capital misallocated across firms. In addition, firm-level productivities are also lower due to distortions induced by the schooling responses. We find that these effects combined account for about 1/5 of the U.S.-India aggregate productivity difference. Requiring the model to match schooling differences significantly amplifies the impact of frictions, and the model accounts for 58% of the aggregate productivity difference.
    Keywords: Aggregate Productivity; Financial Frictions; Entrepreneurship; Human Capital
    JEL: E24 I25 J24 O11 O15 O16
    Date: 2016
  15. By: Qian, Meijun (Australian National University)
    Abstract: This paper examines the gender diversity in corporate boardrooms in Asia and the Pacific and how the diversity affects corporate performance. We find that boardroom gender diversity is low in Asia with 7.5% female representation on average in 2012, but showing a 1.8% improvement in 2013. The appointment of female directors and a gender-diverse boardroom are on average positively associated with a firm’s subsequent performance, but with large cross-country and cross-measurement differences. Firm performance is the highest when there are two females on the board. Using two-stage analyses, we find that (i) a firm’s past performance does not predict its choice to add female directors; (ii) cross-country differences in female corporate leadership respond to its economic demand and supply as measured by gender equality in college education, labor participation, wages, and infant survival; and (iii) female representation on the board, when determined by these economic factors, is a significant predictor of a firm’s future performance.
    Keywords: corporate performance; development equality; director choices; female leadership
    JEL: G38 J71 O16
    Date: 2016–01–26

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