nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒03‒29
fifteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. How does multinational production affect the measurement of competitiveness? By Stefano Federico
  2. Inter-organisational network configurations for ski areas innovations By Veronique Favre-Bonté; Elodie Gardet; Catherine Thevenard-Puthod
  3. Human resource management practices and organizational performance. The mediator role of immaterial satisfaction in Italian Social Cooperatives By Silvia Sacchetti; Ermanno C. Tortia; Francisco J. López Arceiz
  4. Business Practices in Small Firms in Developing Countries By McKenzie, David; Woodruff, Christopher
  5. Agglomeration and innovation By Carlino, Gerald; Kerr, William R.
  6. Emerging multinational corporations: Theoretical and conceptual framework By Mustafa Sakr and Andre Jordaan
  7. Choosing the Right Partner: R&D Cooperations and Innovation Success By Sandra M. Leitner
  8. Opening up the innovation system framework towards new actors and institutions By Warnke, Philine; Koschatzky, Knut; Dönitz, Ewa; Zenker, Andrea; Stahlecker, Thomas; Som, Oliver; Cuhls, Kerstin; Güth, Sandra
  9. Legitimizing farmers' new knowledge, learning and practices through communicative action: Application of an agro-environmental policy By Jean Pierre Del Corso; Charilaos Kephaliacos; Gaël Plumecocq
  10. The structure of global inter-firm networks By Mizuno, Takayuki; Ohnishi, Takaaki; Watanabe, Tsutomu
  11. Europe's digital future: Focus on key priorities By Bertschek, Irene; Ohnemus, Jörg
  12. Technological Change and Reallocation By Junghoon Lee
  13. Patents and Research Investments: Assessing the Empirical Evidence By Eric Budish; Benjamin N. Roin; Heidi L. Williams
  14. Innovation in Clean Coal Technologies: Empirical Evidence from Firm-Level Patent Data By Kruse, Jürgen; Wetzel, Heike
  15. The Innovation-Employment nexus: a critical survey of theory and empirics By Flavio Calvino; Maria Enrica Virgillito

  1. By: Stefano Federico (Banca d'Italia)
    Abstract: This work assembles a unique bilateral dataset on multinational production in the manufacturing sector, in which value added and factor incomes are broken down by location country and by ultimate owner country. Using this dataset, which covers 44 countries over the years 2004-11, we compute measures of production capabilities in which value added is allocated across countries not according to the location of the activity but according to the nationality of the firm or of the factors involved in production (Baldwin and Kimura 1998). These indicators based on the ownership of production are then compared with standard geography-based indicators. This framework is also applied to the analysis of the two modes of supply of foreign markets (exports and FDI) using a common metric based on value added (domestic value added in exports versus value added of foreign affiliates). Overall, the evidence suggests that there are significant differences between geography-based and ownership-based measures, proving that, in an increasingly integrated global economy, ownership matters for the measurement of competitiveness.
    Keywords: multinational companies, foreign direct investment, ownership-based competitiveness, global value chains
    JEL: F21 F23 F14 L60
    Date: 2016–01
  2. By: Veronique Favre-Bonté (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Elodie Gardet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Catherine Thevenard-Puthod (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Unlike industrial innovations, service innovations cannot be protected by patents or designs. Thus, the implementation of innovation networks is often seen as a key to generate a sustainable competitive advantage. In this paper, we are interested in the main forms of inter-organizational networks that led to service innovations. More precisely, this article aims to examine the relationship between the characteristics of inter-organizational networks and the type of service innovation. A typology of service innovations and a network analysis framework allowed us to study the innovations implemented by two major French winter sports resorts: the Portes du Soleil and Paradiski. In total, we studied the structure of 12 innovation networks. Our results show that, depending on the type of innovation implemented, networks are different in terms of partners involved, regulation mode and geographic scope. However, regardless of the innovation developed, it seems necessary to have a central actor to orchestrate the various partners.
    Keywords: Tourism, Typology,Innovation, Service, Inter-organizational network
    Date: 2016
  3. By: Silvia Sacchetti (University of Stirling); Ermanno C. Tortia (University of Trento); Francisco J. López Arceiz (Faculty of Economics and Business Studies, Universidad de Zaragoza)
    Abstract: The paper deals with the mediating role of immaterial satisfaction between substantive human resources (HR) features and organizational performance. We address this relationship in the Italian social service sector using a survey dataset that includes 4134 workers and 320 not-for-profit social cooperatives. The obtained results show that human resource management (HRM) practices influence immaterial satisfaction and, satisfaction positively impacts on firm performance. However, the impact of the different HRM practices is not the same. In this sense, worker involvement and workload pressure have a positive impact on firm performance; but task autonomy or collaborative teamwork do not have impact on organizational performance.
    Keywords: Immaterial satisfaction; workload pressure; autonomy; involvement; teamwork; firm performance.
    JEL: J28 J81 L15 L25 L84 M54
    Date: 2016–02
  4. By: McKenzie, David (World Bank); Woodruff, Christopher (University of Warwick)
    Abstract: Management has a large effect on the productivity of large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? We develop 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria and Sri Lanka. We show that variation in business practices explains as much of the variation in outcomes – sales, profits and labor productivity and TFP – in microenterprises as in larger enterprises. Panel data from three countries indicate that better business practices predict higher survival rates and faster sales growth. The association of business practices with firm outcomes is robust to including numerous measures of the owner’s human capital. We find that owners with higher human capital, children of entrepreneurs, and firms with employees employ better business practices.
    Keywords: business practices; small enterprises; productivity; management JEL Classification: O12; L26; M20; O17; M53.
    Date: 2016
  5. By: Carlino, Gerald; Kerr, William R.
    Abstract: This paper reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance).
    Keywords: agglomeration, clusters, innovation, invention, entrepreneurship
    JEL: J2 J6 L1 L2 L6 O3 R1 R3
    Date: 2015–12–10
  6. By: Mustafa Sakr and Andre Jordaan
    Abstract: Given the looming significance of emerging multinational corporations, this article outlines the primary theoretical aspects pertaining to this growing phenomenon. The following four main aspects are covered: The concept of emerging multinational corporations, theories explaining their evolution, market penetration modes, and finally the types of such firms. Based on the motive of multinationality, it is proposed to classify the different theories into three groups, namely: Firm advantages (asset exploiting), host country advantages (asset seeking), and both firm and host country advantages. This article distinguishes between 10 different types of emerging multinational corporations, based on the timing and the motives for initiating the multinationality process, the relation between the headquarters and affiliates, and the geographical dispersion of foreign activities. Entry modes adopted by emerging multinational corporations vary significantly according to ownership, the nature of overseas' operations, the control of parent firms over these activities, and the extent of externalising and internalising.
    Keywords: emerging multinational corporations, foreign market entry modes, theories of emerging multinational corporations, and types of emerging multinational corporations
    JEL: P45 F21
    Date: 2016
  7. By: Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Abstract Generally, establishments can choose among different cooperation partners for innovation. However, the choice of a particular partner is pivotal to the success of any cooperative arrangement for innovation and therefore not an easy one. The ensuing analysis uses a comprehensive firm-level dataset of Central, East and Southeast European (CESEE) and Former Soviet Union (FSU) countries to shed light on the role of different cooperative arrangements – cooperations with domestic suppliers, domestic client firms, foreign suppliers, foreign client firms and with external academic or research institutes – for a product innovators’ success, captured in terms of either annual average sales per new or significantly improved product or, alternatively, the probability of applying for a patent. It demonstrates that the choice of cooperation partner is essential Innovators profit greatly from innovation partnerships with foreign suppliers only in terms of higher sales from novel or improved products but, in turn, are less likely to apply for patents if engaged in cooperative arrangements with foreign suppliers or client firms, indicating that patenting is probably predominantly undertaken by foreign cooperation partners. Furthermore, it highlights that establishment size, ownership structure, trading status or absorptive capacity greatly matter and that the institutional environment is essential for an innovator’s commercial success, which assigns a decisive role to policy-makers in building an environment that helps innovators extract returns to innovations to the fullest extent possible.
    Keywords: product innovators, types of R&D cooperations, innovation success, Central, East and Southeast Europe
    JEL: O30 O32 O34
    Date: 2016–02
  8. By: Warnke, Philine; Koschatzky, Knut; Dönitz, Ewa; Zenker, Andrea; Stahlecker, Thomas; Som, Oliver; Cuhls, Kerstin; Güth, Sandra
    Abstract: The paper revisits the established framework of the national and regional innovation system (NIS/RIS) in the light of recent insights from innovation research in order to increase its capacity for generating meaningful insights for policy makers and other actors wishing to influence innovation capacity of nations, regions or sectors. We review six research strands that challenge the classical NIS/RIS framework by pointing to a wider range of actors, institutions and innovation modes relevant for the innovation landscape: User innovation, social innovation, collaborative innovation, new innovation intermediaries, venture philanthropy, social and relational capital and non-R&D intensive industries. We find that each of these phenomena points to relevant contributions to national or regional innovation capacities that are not well captured by the established NIS/RIS framework. While some aspects could easily be integrated by adding some "arrows and boxes" in the graphics usually used for representing the framework, we find that several phenomena point to the need for a more fundamental revision of the innovation system framework. In particular it emerges that a distinctive assignment of actors to functions in the innovation process is no longer possible. Given, for example, the research insights on user innovation, social innovation and collaborative innovation, societal actors can no longer be assigned to the role of "demand articulation". Rather they actively contribute or sometimes even take over the generation of knowledge and innovation ideas as well as other functions such as financing, e.g. through crowdfunding activities. The broadened view on innovation also requires a wider understanding of the infrastructures and frameworks forming the enabling basis for innovation activities. Social and relational capital for instance that is deeply embedded in the cultural context of a region becomes a key enabler for trustful interactions of the diverse innovation actors such as low R&D intense firms that make huge contributions to innovation and employment but generate their knowledge through interaction with customers. The growing recognition of the economic and social relevance of collaborative and social innovation implies that collaboration platforms become as relevant infrastructures as classical technology transfer schemes. Finally the broadened view on innovation points to a wide range of intermediaries that form the backbone of an innovation system without necessarily seeing innovation as their primary purpose. As a consequence of these insights we suggest a revised innovation system framework. This system captures three types of contributions: Innovation supply and demand, innovation influx and innovation framework. Actors that may provide relevant contributions in one of these domains are grouped in open clouds, emphasizing the fluidity between functions and actors. We hope that this framework will allow for a more meaningful analysis of the innovation capacity of specific NIS/RIS systems.
    Date: 2016
  9. By: Jean Pierre Del Corso (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Institut d'Études Politiques [IEP] - Toulouse - UT1 - Université Toulouse 1 Capitole - UT2 - Université Toulouse 2 - École Nationale de Formation Agronomique - ENFA); Charilaos Kephaliacos (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Institut d'Études Politiques [IEP] - Toulouse - UT1 - Université Toulouse 1 Capitole - UT2 - Université Toulouse 2 - École Nationale de Formation Agronomique - ENFA); Gaël Plumecocq (AGIR - AGrosystèmes et développement terrItoRial - Institut national de la recherche agronomique (INRA), LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Institut d'Études Politiques [IEP] - Toulouse - UT1 - Université Toulouse 1 Capitole - UT2 - Université Toulouse 2 - École Nationale de Formation Agronomique - ENFA)
    Abstract: This article examines the role of communication in the process that guides economic actors to integrate the moral obligations implied by adopting sustainability principles in their action choices and to reexamine their practices. We analyze two approaches to implementing agro-environmental measures that encourage farmers to preserve water resources. Verbal interactions between farmers and agricultural advisors, who are part of these policy programs, are analyzed drawing on Jürgen Habermas's theory of communicative action. The discourse analysis used here shows that communicative action encouraged participants to reexamine the validity of the technical, experiential, and normative knowledge that legitimized their reasons for acting. This study brings to light the fact that, in the context of a business primarily oriented towards making a profit, committing to sustainable development does not only operate in technical terms; such a commitment also requires collective validation of the effectiveness of alternative farming practices.
    Keywords: Agricultural advice , Communicative action theory , Agricultural innovations , Learning processes , Agro-environmental policy
    Date: 2015
  10. By: Mizuno, Takayuki; Ohnishi, Takaaki; Watanabe, Tsutomu
    Abstract: We investigate the structure of global inter-firm relationships using a unique dataset containing information on customers, suppliers, licensors, licensees and strategic alliances for each of 412,814 major incorporated non-financial firms in the world. We focus on three different networks: customer-supplier network, licensee-licensor network, and strategic alliance network. In/out-degree distribution of these networks follows a Pareto distribution with an exponent of 1.5. The shortest path length on the networks for any pair of firms is around six links. The networks have a scale-free property.
    Keywords: Inter-firm relationship, Scale-free network
    Date: 2016–02
  11. By: Bertschek, Irene; Ohnemus, Jörg
    Abstract: Customised products and services, flexible working arrangements, productivity growth, and increasing prosperity - these are just some of the advantages promised by a digitised and connected economy. Business managers and politicians are keen to reap the potential benefits of the digital transformation. Such a transformation of the economy, however, is a complex task which goes hand in hand with a significant number of challenges. Digital transformation brings about changes in production and innovation processes, in markets and working environments, and also has societal implications. In particular, there are widespread fears that the increased use of machines and robots for tasks previously completed by humans shall result in job losses. Actors at both European and national levels have launched numerous agendas, initiatives and directives in order to support the digital transformation. The Digital Agenda, part of the Europe 2020 Strategy consists of seven pillars (EU Commission, 2016a): i) Digital Single Market, ii) Interoperability & Standards, iii) Trust & Security, iv) Fast and ultra-fast Internet access, v) Research and innovation, vi) Enhancing digital literacy, skills and inclusion, vii) ICT-enabled benefits for EU society. These seven pillars comprise 132 actions ranging from simplifying Pan-European licensing for online works (action 1), to investing in High-Performance Computing (action 132).
    Date: 2016
  12. By: Junghoon Lee
    Abstract: This paper considers a technological change which can be utilized only by production units that adapt to new knowledge. A simple firm dynamics model is used to show that such an innovation enhances reallocation, whereas a technological advance that is available to all production units does not. This implication is used in structural vector autoregressions to study the driving force behind cyclical movements in reallocation and the rival/nonrival nature of technology. This paper finds that one single shock explains most of the unpredictable movements in reallocation over a three- to ten-year horizon and that this shock is closely related to the investmennt-specific technology shock identified by long-run restrictions. The investment-specific shock also accounts for more than 35 percent of hours forecast errors over a two- to ten-year horizon. These findings imply that technology shocks fostering an ongoing reallocation are responsible for a large portion of economic fluctuations, confirming a rival or Schumpeterian nature of technological progress.
    Date: 2016–03
  13. By: Eric Budish; Benjamin N. Roin; Heidi L. Williams
    Abstract: A well-developed theoretical literature — dating back at least to Nordhaus (1969) — has analyzed optimal patent policy design. We re-present the core trade-off of the Nordhaus model and highlight an empirical question which emerges from the Nordhaus framework as a key input into optimal patent policy design: namely, what is the elasticity of R&D investment with respect to the patent term? We then review the — surprisingly small — body of empirical evidence that has been developed on this question over the nearly half century since the publication of Nordhaus's book.
    JEL: O3
    Date: 2016–01
  14. By: Kruse, Jürgen (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Wetzel, Heike (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: This article empirically analyzes supply-side and demand-side factors expected to affect innovation in clean coal technologies. Patent data from 93 national and international patent o ces is used to construct new firm-level panel data on 3,648 clean coal innovators over the time period 1978 to 2009. The results indicate that on the supply-side a firm's history in clean coal patenting and overall propensity to patent positively a↵ects clean coal innovation. On the demand-side we find strong evidence that environmental regulation of emissions, that is CO2, NOx and SO2, induces innovation in both e ciency improving combustion and after pollution control technologies.
    Keywords: clean coal technologies; innovation; patents; technological change
    JEL: C33 O31 Q40 Q55
    Date: 2016–02–01
  15. By: Flavio Calvino; Maria Enrica Virgillito
    Abstract: Understanding whether technical change is beneficial or detrimental for employment is at the center of the policy debate, especially in phases of economic recession. So far, the effects of innovation ó in its manifold declinations and intrinsic complexity ó on labour demand have proven to be not unequivocal. This essay critically reviews the role of technical change in shaping employment dynamics at different levels of aggregation. Firstly, it disentangles theoretically the role of different compensation mechanisms through which employment adjusts after an innovation is introduced. Secondly, it critically presents the most recent empirical evidence on the topic, with a focus on methods and limitations. Finally, it provides an attempt to conceptualize a number of stylized facts and empirical regularities on the innovation-employment nexus.
    Keywords: Innovation, Technological Unemployment, Compensation Mechanisms
    Date: 2016–03–13

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