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on Economics of Strategic Management |
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Issue of 2016‒03‒23
twenty papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Stefano Bianchini (BETA, University of Strasbourg); Federico Tamagni (Scuola Superiore San'Anna); Gabriele Pellegrino (WIPO & EPFL & IEB) |
| Abstract: | In this work, we explore the relations between sales growth and a set of innovation indicators that capture the different sources, modes and results of the innovative activity undertaken within firms. We exploit a rich panel on innovation activity of Spanish manufacturing firms, reporting detailed CIS-type information continuously over the period 2004-2011. Standard GMM-panel estimates of the average effect of innovation activities reveal significant and positive effect for internal R&D, while no effect is found for external sourcing of knowledge (external R&D, acquisition of embodied and disembodied technologies) as well as for output of innovation (process and product innovation). However, fixed-effects quantile regressions reveal that innovation activities, apart from process innovation and disembodied technical change, display a positive effect on high-growth performance. Finally, we find evidence of super-modularity of the growth function, revealing complementarities of internal R&D with product innovation, and between product and process innovation. |
| Keywords: | Firm growth, product and process innovation, internal and external R&D, embodied and disembodied technical change, fixed-effects quantile regressions, complementarity |
| JEL: | C21 D22 O31 O32 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2016-10&r=cse |
| By: | Cecere, Grazia; Rexhäuser, Sascha; Schulte, Patrick |
| Abstract: | This paper aims to shed light on the role of technological opportunities for green innovation by studying the case of Green ICT innovation. We test two hypotheses: (1) Firms active in low-opportunity technological areas are less innovative; (2) Firms active in low-opportunity technological areas are more likely to change their direction of technical change. To do so, we construct a firm-level panel data set for the years 1992-2009 combining patent data from the European Patent Office with firm-level data from the German Innovation Panel (Mannheim Innovation Panel). The results are based on dynamic count data estimation models applying General Methods of Moments estimators. Our results support our hypotheses: firms active in low-opportunity technological areas are less innovative but are more likely to switch from pure ICT innovation to Green ICT innovation. |
| Keywords: | technological opportunities,innovation,information and communication technology (ICT),green ICT,firm-level patent data,dynamic count data model |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:15091&r=cse |
| By: | Caterina Santi; Pietro Santoleri |
| Abstract: | We employ a balanced panel dataset representative of the entire Chilean productive structure in order to investigate the relation between the introduction of innovation and subsequent firm growth in terms of sales. Recent contributions examining the returns to innovation on firm performance have stressed the need of going beyond the analysis of the `average effect for the average firm'. However, previous studies in the case of Latin American economies have often overlooked the importance of analyzing which firms benefit more from the introduction of innovations. Our analysis consists of a series of parametric and non-parametric exercises which take into account the properties of the firm growth distribution. In particular, we adopt quantile treatment effects (QTE) which allow to estimate the effect of the introduction of innovation by comparing firms with a similar propensity to innovate for different quantiles of the firm growth distribution. On one hand, our results indicate that process innovation shows a positive and significant relation with firm growth for those firms located at the 75th and 90th percentiles. On the other, product innovation shows a negative association only for high-growth firms. |
| Keywords: | innovation, firm growth, Chile, quantile regression, quantile treatment effects |
| Date: | 2016–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/09&r=cse |
| By: | Usman, Ojonugwa; Olorunmolu, Joseph O. |
| Abstract: | This paper examined 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 showed an increase in all the profitability ratios after privatization. However, only the return on assets and return on sales were significant in explaining the difference between pre- and post-privatization performance of firms in Nigeria. The result of the operational efficiency showed a significant increase in the mean (median) values of sale efficiency and income efficiency. Interestingly, while output (real sales) and employee income of firms significantly increased after privatization, the number of employees decreased insignificantly after privatization. The paper concluded 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: | L32 |
| Date: | 2015–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69816&r=cse |
| By: | Maria Luisa Petit (La Sapienza University of Rome); Francesca Sanna-Randaccio (Sapienza University of Rome) |
| Abstract: | This paper examines the impact of the firms'mode of foreign expansion on the incentive to innovate as well as the effects of R&D activities and technological spillovers on the firms' international strategy. We consider a two country imperfect competition model where the firms' face three different type of decisions: how to expand abroad, how much to spend in R&D and how much to sell in each market Market structure is therefore endogenously determined as the equilibrium solution of a three stage game. It is shown that the firm that invests more in research is the one which is a MNE while the rival is an exporter, whereas the firm that invests less is the one that exports while the rival is a MNE. The results indicate that there is a positive relationship between multinational expansion and R&D investment and that, in turn, investment in research leads oligopolistic firms'towards multinational expansion. The value of the spillover parameter too can be an important determinant of firms'international strategy. |
| Keywords: | Multinational firm. export, direct investment, R&D, innovation, intellectual property rights. |
| JEL: | F12 F23 L10 |
| URL: | http://d.repec.org/n?u=RePEc:rsp:wpaper:wp40&r=cse |
| By: | Lackner M.; Stracke R.; Sunde U.; Winter-Ebmer R. (ROA) |
| Abstract: | This paper investigates empirically whether decision makers are forward looking indynamic strategic interactions. In particular, we test whether decision makers in multistage tournaments take heterogeneity induced changes of continuation values and the ability of their immediate opponent into account when choosing effort. Usingdata from professional and semi-professional basketball tournaments, we find thateffort is negatively affected by the ability of the current opponent, consistent with thetheoretical prediction and previous evidence. More importantly, the results indicatethat the expected relative strength in future interactions does affect behavior in earlier stages, which provides support for the standard view that decision makers are forward looking in dynamic strategic interactions. |
| Keywords: | Expectations; Speculations; Intertemporal Choice and Growth: General; Compensation Packages; Payment Methods; Personnel Economics: Firm Employment Decisions; Promotions; |
| JEL: | D84 D90 M51 J33 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umaror:2015010&r=cse |
| By: | Mariotto, Carlotta; Verdier, Marianne |
| Abstract: | Over the recent years, the development of Internet banking and mobile banking has had a considerable impact on competition in the retail banking industry. In some countries, the regulatory framework has been adapted to allow non-banks to operate in retail payments and compete with banks for deposits. Several platforms or large retailers have started to offer innovative financial products to their customers. In this paper, we survey the issues related to innovation and competition in Internet banking and mobile banking and discuss some perspectives for future research. |
| Keywords: | bank competition, bank regulation, non-banks, payment systems, Internet banking, mobile banking, platform markets |
| JEL: | E42 G21 L96 |
| Date: | 2015–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:urn:nbn:fi:bof-201511261452&r=cse |
| By: | Oasis Kodila-Tedika (Université de Kinshasa Département d’Eco); Julius A. Agbor (Stellenbosch University) |
| Abstract: | Differences in trust levels between countries explain the observed discrepancies in entrepreneurial spirit amongst them. We test this hypothesis with a cross-section of 60 countries in 2010. Our findings suggest that about half of the variation in entrepreneurial spirit across countries in the world is driven by trust considerations. This result is robust to regional clustering, to outliers and to alternative conditioning variables. The findings of the study suggest that while formal incentives to nurture entrepreneurship must be maintained, policy-makers should also seek to pay attention to the role of trust cultivated through informal networks. |
| Keywords: | trust, institution, entrepreneurship |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:15/057&r=cse |
| By: | Jansen A. (ROA) |
| Abstract: | In this article, the relation between firms engagement in apprenticeship trainingand two important economic preferences, i.e. the decision makers altruism and timepreference, 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 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umaror:2016002&r=cse |
| By: | Bettina Peters; Mark J. Roberts; Van Anh Vuong |
| Abstract: | This article investigates how a firm's financial strength affects its dynamic decision to invest in R&D. We estimate a dynamic model of R&D choice using data for German firms in high-tech manufacturing industries. The model incorporates a measure of the firm's financial strength, derived from its credit rating, which is shown to lead to substantial differences in estimates of the costs and expected long- run benefits from R&D investment. Financially strong firms have a higher probability of generating innovations from their R&D investment, and the innovations have a larger impact on productivity and profits. Averaging across all firms, the long run benefit of investing in R&D equals 6.6 percent of firm value. It ranges from 11.6 percent for firms in a strong financial position to 2.3 percent for firms in a weaker financial position. |
| JEL: | O3 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22035&r=cse |
| By: | Christopher Heard (School of Economics, The University of Queensland); Flavio M. Menezes (School of Economics, The University of Queensland); Alicia Rambaldi (School of Economics, The University of Queensland) |
| Abstract: | This paper exploits a large panel to study trends in, and determinants of, the decisions made by the four largest Australian banks about whether to establish or maintain branch†and ATM†level presence in a local market between 2002 and 2013. These decisions are potentially important for competition in local banking markets. Our analysis suggests that past presence is the most important factor for explaining current presence in a particular local market. Moreover, we present evidence that the four largest banks co†locate branches. The impact of the location of other (smaller) banks on the location of the four largest banks is less clear; there is some limited evidence that this impact is negative for two of the four largest banks. Our results also suggest that the four largest banks responded differently to the GFC in terms of their branch location decisions. Our analysis of ATM location decisions reveals that the four largest banks follow different strategies. These results suggest that Australian banks did not shy away from competition, either before or after the GFC. Creation-Date: 2016-03-08 |
| Keywords: | branch location; exit; entry; banking |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:556&r=cse |
| By: | Maroto Sánchez, Andrés (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.); Rubalcaba Bermejo, Luis (World Bank. Trade and Competitiveness Practice. Washington DC.); Gallego Martinez, Jorge (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.) |
| Abstract: | Public sectors are under increasing pressure to improve their efficiency and to provide better services in order to boost economic growth and social welfare. One significant way in doing this is the promotion of innovation through research and development (R&D) policies. In this context, the aim of the paper is twofold. On the one hand, to briefly review the framework and state of the art on the relationships between R&D, general innovation systems and public sectors. On the other hand, to test the role of public R&D spending on public sector performance (using multivariate techniques and econometric analyses) and efficiency (using a non- parametric approach) in the European case. Results indicate that publicly funded R&D should be considered a dimension of public sector performance, but that it also plays a key role in its efficiency, mainly when the private and public develop complementarities among them. Managerial implications for R&D policy makers follow from these results. Both performance and efficiency of public sectors could be improved through effective R&D public spending. |
| Keywords: | R&D, Innovation, Public sector, Performance, Efficiency, Europe |
| JEL: | H11 H50 C61 O38 O52 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:201602&r=cse |
| By: | Federica Bertamino (Agency for Territorial Cohesion); Raffaello Bronzini (Banca d'Italia); Marco De Maggio (University of Salento); Davide Revelli (Banca d'Italia) |
| Abstract: | In this paper we study a policy tool called technology districts, implemented in Italy over the last decade to foster local innovation activity. First, we examine the characteristics of technology districts and those of the firms within them. Next, we assess the performance of district firms. We find that in the Southern regions technology districts are more numerous but smaller than those located in the Centre-North, are poorly diversified from a sectorial point of view and more distant from the economic structure of the area. We find that the firms that did join a district had previously been, on average, larger, more innovative and profitable, and also show higher leverage than the others. Our results show that overall after the birth of a district the performance of the firms that joined it did not differ significantly from that of similar firms that did not. |
| Keywords: | technology districts, innovation, patents, public policies, matching, differences-in-differences |
| JEL: | O31 R0 H2 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_313_16&r=cse |
| By: | Nesterenko, Nadezhda; Vysoskaya, Ekaterina (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | In article modern approaches to motivation as to an inst-rument of attraction and deduction of the personnel of the organizations (enterprises) in the conditions of economic instability are described. Mo-tivation tools which are actual for the enterprises of the food industry of the Saratov area are considered, improvement of the methods of motivation existing at these enterprises is offered and new instruments of motivation for attraction and deduction of the personnel in the conditions of economic instability are recommended. |
| Keywords: | motivation, stimulation, material (nemonitarnaya) motivation, benefity, motives and incentives |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:nerpc2&r=cse |
| By: | Ono, Arito; Saito, Yukiko; Sakai, Koji; Uesugi, Iichiro |
| Abstract: | Using a unique and massive firm-bank matched panel dataset, this paper examines the causal link between the geographical distance between a firm and its main bank and the probably that a firm will switch its main bank. Utilizing the exogenous change in firm-main bank distances brought about by bank mergers and bank branch consolidations in Japan during 2000–2010, the analysis – the first of its kind – finds the following. First, an increase in lending distance positively affected switching of firm-main bank relationships. Second, the average lending distance for firms that switched to new main banks significantly decreased afterwards. Third, the lending distance of new firm-main bank relationships after the switch did not have a significant impact on firms' probability of ex-post default, suggesting that larger lending distance does not necessarily result in a deterioration in the quality of soft information. |
| Keywords: | lending distance, firm-bank relationships, bank mergers, main bank |
| JEL: | G21 R12 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:remfce:40&r=cse |
| By: | Basu,Kaushik |
| Abstract: | The many and varied crises in the world economy since 2007 seem to have different origins and diverse manifestations. This paper contends that there is however a structural shift beneath the global economy that is now reaching a critical mass, and that accounts for many of these crises, despite the diversity of manifestations. This shift is occasioned by two kinds of technological changes--the familiar labor-saving and what is here called"labor-linking."The paper argues that these changes (1) create a short-term window of opportunity for developing and emerging economies, but (2) in the long run constitute a major, multilateral policy challenge for all. To meet this challenge, we have to think outside the box and conceive of innovative policies. The paper briefly speculates on what those policies might be. |
| Keywords: | Debt Markets,Technology Industry,Labor Policies,Emerging Markets,Labor Markets |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7590&r=cse |
| By: | Raffaello Bronzini (Bank of Italy); Alessio D'Ignazio (Bank of Italy) |
| Abstract: | In this paper we investigate whether new exporter firms have a higher probability of starting to export to the countries where their financing banks have already established their branches. The underlying mechanism we hypothesize is based on the transmission of foreign market knowledge from banks to firms, so as to cut down information barriers to international trade. In those countries where such information is arguably more precious to the firm, we found a significant positive relationship between a firm’s probability of beginning to export to one market, and the presence in the same market of a branch of the firm’s financing bank. Coherently with the mechanism hypothesized, we find a stronger effect for closer firm-bank relationships, and when banks have established their branches abroad over a longer time period. |
| Keywords: | internationalization, export, bank-firm relationships |
| JEL: | F10 G21 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1055_16&r=cse |
| By: | Stefan Bender; Nicholas Bloom; David Card; John Van Reenen; Stefanie Wolter |
| Abstract: | Recent research suggests that much of the cross-firm variation in measured productivity is due to differences in use of advanced management practices. Many of these practices - including monitoring, goal setting, and the use of incentives - are mediated through employee decision-making and effort. To the extent that these practices are complementary with workers' skills, better-managed firms will tend to recruit higher-ability workers and adopt pay practices to retain these employees. We use a unique data set that combines detailed survey data on the management practices of German manufacturing firms with longitudinal earnings records for their employees to study the relationship between productivity, management, worker ability, and pay. As documented by Bloom and Van Reenen (2007) there is a strong partial correlation between management practice scores and firm-level productivity in Germany. In our preferred TFP estimates only a small fraction of this correlation is explained by the higher human capital of the average employee at better-managed firms. A larger share (about 13%) is attributable to the human capital of the highest-paid workers, a group we interpret as representing the managers of the firm. And a similar amount is mediated through the pay premiums offered by better-managed firms. Looking at employee inflows and outflows, we confirm that better-managed firms systematically recruit and retain workers with higher average human capital. Overall, we conclude that workforce selection and positive pay premiums explain just under 30% of the measured impact of management practices on productivity in German manufacturing. |
| Keywords: | management practices, productivity, wages |
| JEL: | L2 M2 O32 O33 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1416&r=cse |
| By: | Petra Moser |
| Abstract: | A strong tradition in economic history, which primarily relies on qualitative evidence and statistical correlations, has emphasized the importance of patents as a primary driver of innovation. Recent improvements in empirical methodology – through the creation of new data sets and advances in identification – have produced research that challenges this traditional view. The findings of this literature provide a more nuanced view of the effects of intellectual property, and suggest that when patent rights have been too broad or strong, they have actually discouraged innovation. This paper summarizes the major results from this research and presents open questions. |
| JEL: | K0 K21 L51 N0 O30 O31 O34 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21964&r=cse |
| By: | Santiago J. Rubio (Department of Economic Analysis and ERI-CES, University of Valencia) |
| Abstract: | This paper examines international cooperation on technological development as an alternative to international cooperation on GHG emission reductions. In order to analyze the scope of cooperation, a three-stage technology agreement formation game is solved. First, countries decide whether or not to sign up to the agreement. Then, in the second stage, the signatories (playing together) and the non-signatories (playing individually) select their investment in R&D. In this stage, it is assumed that the signatories not only coordinate their levels of R&D investment but also pool their R&D efforts to fully internalize the spillovers of their investment in innovation. Finally, in the third stage, each country decides non-cooperatively upon its level of energy production. Emissions depend on the decisions made regarding investment and production. If a country decides to develop a breakthrough technology in the second stage, its emissions will be zero in the third stage. For linear environmental damages and quadratic investment costs, the grand coalition is stable if marginal damages are large enough to justify the development of a breakthrough technology that eliminates emissions completely, and if technology spillovers are not very important. |
| Keywords: | International Environmental Agreements, R&D Investment, Technology Spillovers, Breakthrough Technologies |
| JEL: | D74 F53 H41 Q54 Q55 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.02&r=cse |