nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒04‒04
twenty-one papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Sectoral Systems or Distance-to-the-Frontier Effects in Innovation? A Comparison of Three Medium-Technology Sectors in Germany, Italy and Spain By Fassio, Claudio
  2. Open Innovation in clusters: The Portuguese case By Santos, Antonio Bob
  3. Sharing Knowledge in a Shared Services Center Context: An Explanatory Case Study of the Dialectics of Formal and Informal Practices By Dragos Vieru; Pierre-Emmanuel Arduin
  4. How Does Innovation Differ across Business Functions? Employee-level Analysis of a Multinational Company By Fulvio Castellacci; Magnus Gulbrandsen; Jarle Hildrum; E. Martinkenaite; Erlend Simensen; Vegard Tveito
  5. Foreign acquisition and internal organization By Paulo Bastos; Natália P. Monteiro; Odd Rune Straume
  6. Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome By Eugenio Jose Silva Bitti; Muriel Fadairo; Cintya Lanchimba; Vivian-Lara Silva
  7. The Impact of Entrepreneurship on Knowledge Economy in Africa By Asongu, Simplice; Tchamyou, Vanessa
  8. Creativity Under Fire: The Effects of Competition on Creative Production By Daniel P. Gross
  9. How transformational leadership shapes team proactivity: the mediating role of positive affective tone and the moderating role of team task variety By Chia-Huei Wu; Zhen Wang
  10. The Localization of Interfirm Transaction Relationships and Industry Agglomeration By Nakajima, Kentaro; Saito, Yukiko Umeno; Uesugi, Iichiro
  11. Emerging Multinational Corporations: A Prominent Player in the Global Economy By Mustafa Sakr; Andre Jordaan
  12. Innovation and collaboration patterns between research establishments By Inoue, Hiroyasu; Nakajima, Kentaro; Saito, Yukiko Umeno
  13. International spillovers and policies By Musalem, Alberto G.
  14. Food and gastronomy as elements of regional innovation strategies By Alessio CAVICCHI; Katerina CIAMPI STANCOVA
  15. Models for evaluating territorial competitiveness By Chitea, Mihai Alexandru
  16. Collective Efficacy of a Regional Network: Extending the Social Embeddedness Perspective of Entrepreneurship By Muhammad, Nabeel; Léo-Paul, Dana
  17. Individual Choice or Policies? Drivers of Female Employment in Europe By Lone Engbo Christiansen; Huidan Lin; Joana Pereira; Petia Topalova; Rima Turk
  18. Networks in Economics: A Perspective on the Literature By Sanjeev Goyal; ; ;
  19. How does the Gender Difference in Willingness to Compete evolve with Experience? By Thomas Buser
  20. Business Dynamism and Economic Growth: U.S. Regional Evidence By Miguel Casares; Hashmat U. Khan
  21. Effect of location incentives on regional distribution of foreign direct investment in Ghana By Obeng, Camara Kwasi

  1. By: Fassio, Claudio (LUISS School of European Political Economy)
    Abstract: This study analyzes empirically whether the Sectoral Systems of Innovation or the Distanceto-the-Frontier perspective more accurately describe the patterns of innovation in medium technology sectors in Germany, Italy and Spain. While the Sectoral Systems of Innovation predicts the existence of technology-related similarities in innovative patterns in the same sectors across countries, the Distance-to-the Frontier suggests the existence of important differences related with the level of technological development of each national sector. Using Community Innovation Survey data and applying an econometric strategy specifically devised for innovations survey I am able to test a set of hypotheses directly related with each of the two theories. The results of the econometric analysis show that relevant differences across countries exist with respect to the intensity of R&D activities and the economic impact of different types of innovations, confirming the Distance-to-the-Frontier hypothesis, while great cross-country similarity emerges among the sources of knowledge used to develop new innovations, in line with the Sectoral Systems of Innovation framework. The results highlight the importance to take into account both frameworks for a useful analysis of innovation within sectors.
    Keywords: Sectoral Systems of innovation; Distance-to-the-Frontier; R&D and productivity
    JEL: L60 O31
    Date: 2014–05–20
  2. By: Santos, Antonio Bob
    Abstract: Given the lack of academic research linking open innovation with the clusters literature, this paper analyze the determinants of open innovation adoption in clusters, based on the Portuguese case. This paper is structured as follows: 1) introduction; 2) methodology; 3) theoretical analysis of clusters and open innovation; 4) cluster policy evolution in Portugal; 5) results of an online questionnaire launched to the Portuguese clusters members, identifying the main constraints for the development of open innovation activities; 6) conclusions and implications. The factors that hinder the use of open innovation by clusters members are related to internal problems (e.g., management skills) and external factors (e.g., funding access). This paper also allows the understanding of the importance of belonging to a cluster for the usage of open innovation activities, contributing to the discussion of the necessity of having a more open innovation policy approach in Portugal.
    Keywords: open innovation, clusters, cluster policy, innovation policy
    JEL: O25 O31 O32 O38
    Date: 2015
  3. By: Dragos Vieru (Université du Québec - Université du Québec - Université du Québec); Pierre-Emmanuel Arduin (DRM - Dauphine Recherches en Management - Université Paris IX - Paris Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This study focuses on how knowledge sharing across boundaries of merging entities during an information system (IS) implementation project in a shared services center (SSC) context affects the resulting system functionality. Although the literature stresses the growing adoption of the SSC as an outsourcing model, there is a lack of studies that examine shared services as a dynamic process of knowledge sharing across the organizational boundaries. We draw on a sociomaterial practice perspective and on the theory of workarounds to analyze an IS implementation project in a healthcare organization resulting from a merger of previously independent hospitals. The results suggest that new technology can be enacted in different ways as it links up with practices of different communities of users. We propose a multilevel process model that indicates at the end of the project a resulting mix of formal and informal (workarounds) practices that emerged from a dialectic process of resistance to, and negotiation of, the IS configuration during its implementation.
    Keywords: Shared services center,Knowledge sharing,Sociomaterial practice perspective,Workarounds,Performativity,Sociomaterial assemblages
    Date: 2016–02
  4. By: Fulvio Castellacci (TIK Centre, University of Oslo); Magnus Gulbrandsen (TIK Centre, University of Oslo); Jarle Hildrum (Telenor Research); E. Martinkenaite (Telenor Research); Erlend Simensen (TIK Centre, University of Oslo); Vegard Tveito (TIK Centre, University of Oslo)
    Abstract: This paper investigates how innovation differs across a company’s business functions. We argue that employees working in different functions of a corporation (e.g. marketing, R&D, top management) differ in terms of the types of innovation they are engaged in, the strategies they adopt to organize their innovative activities, and the factors that spur or hamper their innovation performance. Little is known about this issue, however, which we investigate by making use of a rich novel dataset at the employee-level for the multinational company Telenor. We combine a large survey among nearly 16,000 Telenor employees with an extensive qualitative data collection through interviews in different business units and functions. The empirical results point out the relevance of climate and culture, quality-oriented tasks and external interactions as the key factors supporting employees’ innovation activities. The effects of these factors on innovation are substantially different across business functions of the company.
    Date: 2016–03
  5. By: Paulo Bastos (World Bank); Natália P. Monteiro (Department of Economics/NIPE, University of Minho); Odd Rune Straume (Department of Economics/NIPE, School of Economics and Management, University of Minho)
    Abstract: We study the effect of foreign takeovers on firm organization. Using a comprehensive data set of Portuguese firms and workers spanning two decades, we find that foreign acquisitions lead to: (1) an expansion in the scale of operations; (2) a higher number of hierarchical layers; (3) increased span of control among top managers; and (4) increased wage inequality across layers. These results accord with a theory of knowledge-based hierarchies in which foreign takeovers improve management practices and reduce communication costs within the acquired firms. Evidence from auxiliary survey data provides support to this mechanism by suggesting that acquired firms are more likely to use information technologies that reduce internal communication costs.
    Keywords: Foreign direct investment, internal organization, wage inequality, information technologies.
    JEL: D24 E23 F23 M10 M16 O30
    Date: 2016
  6. By: Eugenio Jose Silva Bitti (School of Economics, Business Administration and Accounting, University of São Paulo, Brazil); Muriel Fadairo (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Cintya Lanchimba (Escuela Politécnica Nacional, Ecuador, Ladron de Guevera E11-253, Quito 170517, Ecuador); Vivian-Lara Silva (Center for Organization Studies (CORS), University of São Paulo (USP), Brazil)
    Abstract: This empirical article deals with the location strategy and performance outcomes of franchised chains in Brazil. Brazilian franchising has experienced vertiginous process of expansion in recent years, being present in different regions of this country of continental size, including the most remote and less developed. Based on the background literature in economics and management regarding location choices and spatial competition in retailing, we use a new and unique dataset to distinguish several behavior categories in spatial strategies of franchising chains in Brazil, via a two-step cluster analysis. The performance outcomes are then studied with econometric estimations on panel data. Our results provide evidence that the choice for agglomeration, and the location in areas with a high population and a high human development index, lead to higher chain performances.
    Keywords: Franchising, Location Strategy, Spatial Competition, Emerging Market, Panel Data
    JEL: M21 C23
    Date: 2016
  7. By: Asongu, Simplice; Tchamyou, Vanessa
    Abstract: Purpose - The paper assesses how entrepreneurship affects knowledge economy (KE) in Africa. Design/methodology/approach – Entrepreneurship is measured by indicators of starting, doing and ending business. The four dimensions of the World Bank’s index of KE are employed. Instrumental variable panel fixed effects are applied on a sampled of 53 African countries for the period 1996-2010. Findings –The following are some findings. First, creating an enabling environment for starting business can substantially boost most dimensions of KE. Second, doing business through mechanisms of trade globalisation has positive effects from sectors that are not ICT and High-tech oriented. Third, the time required to end business has negative effects on KE. Practical implications – Our findings confirm the narrative that the technology in African countries at the moment may be more imitative and adaptive for reverse-engineering in ICTs and high-tech products. Given the massive consumption of ICT and high-tech commodities in Africa, the continent has to start thinking of how to participate in the global value chain of producing what it consumes. Originality/value – This paper has a twofold motivation. First, given the ambitions of African countries of moving towards knowledge based economies, the line of inquiry is timely. Second, investigating the nexus may have substantial poverty mitigation and sustainable development implications. These entail inter alia: the development of technology with value-added services; enhancement of existing agricultural practices; promotion of conditions that are essential for competitiveness and adjustment of globalization challenges.
    Keywords: Entrepreneurship; Knowledge Economy; Development; Africa
    JEL: L59 O10 O20 O30 O55
    Date: 2015–02
  8. By: Daniel P. Gross (Harvard Business School, Strategy Unit)
    Abstract: Though fundamental to innovation and essential to many industries and occupations, the creative act has received limited attention as an economic behavior and has historically proven difficult to study. This paper studies the incentive effects of competition on individuals' creative production. Using a sample of commercial logo design competitions, and a novel, content-based measure of originality, I find that competition has an inverted-U effect on creativity: some competition is necessary to induce agents to produce radically novel, untested ideas over incrementally tweaking their earlier work, but heavy competition drives them to stop investing altogether. The results are consistent with economic theory and reconcile conflicting evidence from an extensive literature on the effects of competition on innovation, with implications for R&D policy, competition policy, and organizations in creative or research industries.
    Keywords: Creativity; Incentives; Tournaments; Competition; Radical vs. incremental innovation
    JEL: D81 D82 D83 L4 M52 M55 O31 O32
    Date: 2016–03
  9. By: Chia-Huei Wu; Zhen Wang
    Abstract: The authors examine how and when transformational leadership can contribute to team proactivity. Drawing on the affect-as-resources perspective, they propose that transformational leadership will contribute to team proactivity by cultivating positive group affective tone within teams. They further indicate that the function of positive group affective tone in shaping team proactivity will be stronger when team task variety is higher. These hypotheses were supported by results based on 76 teams in the same organization. The results reveal that the mediation effect of positive group affective tone on the association between transformational leadership and team proactivity is stronger when team task variety is high rather than low. This investigation contributes to the literature by suggesting how to promote proactivity at a team level.
    Keywords: transformational leadership; proactivity; group affective tone; work design; team
    JEL: J50
    Date: 2015
  10. By: Nakajima, Kentaro; Saito, Yukiko Umeno; Uesugi, Iichiro
    Abstract: Using a unique and massive dataset on firms' suppliers and customers, we examine the localization of transaction relationships to find the following. First, based on a counterfactual that controls for the location of firms and their potential partners, transaction relationships in about 90 to 95% of the three-digit manufacturing industries are localized within 40km. Second, based on a counterfactual that controls for the average distance of transaction relationships in the entire manufacturing sector, in about 40% of industries transaction relationships are localized. Third, the extent of industry agglomeration and the extent of the localization of transaction relationships are positively correlated.
    Keywords: Interfirm transactions, agglomeration, transaction distance
    JEL: R11
    Date: 2016–03
  11. By: Mustafa Sakr (Department of Economics, University of Pretoria); Andre Jordaan (Department of Economics, University of Pretoria)
    Abstract: As emerging market multinational corporations (EMNCs) tend to remarkably expand their global presence, it is of the utmost importance to explore the salient attributes of such unfolding phenomenon. One of the key findings is that top EMNCs are displaying a leapfrogging internationalisation process. Moreover, natural resources related sectors, in particular energy, have been proven to dominate the non-financial industry structure of EMNCs. In addition, various interesting findings have been concluded by this article. Regarding the preferred destination for their outward foreign direct investment (OFDI), EMNCs currently tend to invest more in developing markets. However, the relevance of developed markets is growing over time. Available statistics furthermore exhibit that greenfield is often preferred above mergers and acquisitions (M&As) as an entry mode into developing markets. The opposite is true in developed markets. EMNCs are domiciled predominantly in BRICS countries which account collectively for most of the OFDI getting from EMs. Emerging African MNCs are dramatically losing ground in the EMNC landscape. Regarding internationalisation, ownership, industry and geographical structure and preferred entry modes, remarkable differences are easily seen in the salient features of EMNCs compared to those based in developed markets.
    Keywords: Emerging MNCs, BRICS MNCs, African MNCs, emerging markets’ OFDI, differences between EMNCs and DMNCs
    JEL: P45 F21
    Date: 2016–03
  12. By: Inoue, Hiroyasu; Nakajima, Kentaro; Saito, Yukiko Umeno
    Abstract: This study empirically investigates the determinants of the productivity of knowledge creation by collaboration. By using the Japanese patent database, we extracted establishment-level patent co-invention information, and found the following results. First, we find an inverse U-shaped pattern in the relationship between the similarity of knowledge stocks and the quality of patents. That is, moderate diversity in knowledge stocks between establishments rather than extreme similarity or extreme diversity is important for knowledge creation. Second, focusing on the differences in technology class, we find inverse U-shaped pattern only in the high-technology class. This implies that the common knowledge between establishments is important in the invention of high technology patents. Third, we find that the physical distance between collaborating establishments has a negative effect on the quality of patents.
    Keywords: Diversity, Knowledge creation
    JEL: O31 R11 D23
    Date: 2016–03
  13. By: Musalem, Alberto G. (Federal Reserve Bank of New York)
    Abstract: Remarks at the People’s Bank of China-Federal Reserve Bank of New York Joint Symposium, Hangzhou, Zhejiang, China.
    Keywords: Mundell-Fleming logic; macroeconomic transmission; financial transmission; transmission channels; currency stability; trilemma
    Date: 2016–03–15
  14. By: Alessio CAVICCHI (University of Macerata, Department of Education, Cultural Heritage and Tourism); Katerina CIAMPI STANCOVA (European Commission – JRC - IPTS)
    Abstract: The paper discusses recent innovation and diversification paths in agro-food, specifically the linkage between food, territory and branding, the emerging phenomenon of Food Cities and increasing interest in healthier and more sustainable food products. It also focuses on EU policies and instruments in support of R&I activities in agro-food and explores agro-food domain within the context of smart specialisation.
    Keywords: EU policies, regional policies, regional innovation, smart specialisation, agro-food, gastronomy, branding
    Date: 2016–03
  15. By: Chitea, Mihai Alexandru
    Abstract: The present study aims to highlight the main models for evaluating territorial competitiveness used at international and European level starting from the following premise: despite the difficulties encountered in the process of defining and understanding the competitiveness term and of numerous and different scientific approaches, there are, though, common elements that can be found at the level of the majority of models for evaluating national, regional and local competitiveness. The paper turns to bibliographic study and comparative analysis, highlighting the main theoretical approaches of competitiveness and the models developed on their basis. Although the indices used within the models present certain specific characteristics derived from the theoretical approach on which it is based, but also implied by the selected aggregation level, there are several central elements that can be found at the level o the majority of evaluation models such as: economic performances, investments level, institutions, infrastructure, education, health and population's welfare.
    Keywords: territorial, regional competitiveness, evaluation models, indices
    JEL: C43 C52 R13 R52
    Date: 2015–11–20
  16. By: Muhammad, Nabeel; Léo-Paul, Dana
    Abstract: Through participatory observation and in-depth interviews with members of the Memon community, in Pakistan, this paper probes into how the collective efforts of a regional network can facilitate entrepreneurship, social enterprises and regional development. The setting is a developing country that is lacking a large-scale entrepreneurial culture. Despite caste differences, Memons throughout the Karachi region meet and share experiences with other Memon members of their network – including Memons from unlike castes. Within this regional network Memons help one another. They give preferential treatment to other Memons of their regional network and sometimes also to co-ethnics from other regional networks. Entrepreneurship is encouraged by a collective effort without suppressing individual goals; this extends the social embeddedness perspective of entrepreneurship allowing for a collective efficacy along a regional network, facilitating entrepreneurship among individuals.
    Keywords: collective efficacy, community, cultural capital, entrepreneurship, Memon, Pakistan, participatory observation, regional development, regional network
    JEL: I25 L26 L31 N0 Q01 R11
    Date: 2015–10
  17. By: Lone Engbo Christiansen; Huidan Lin; Joana Pereira; Petia Topalova; Rima Turk
    Abstract: Female labor force participation has increased markedly in many European countries during the past decades. Nonetheless, participation rates remain low in some economies, and a significant gender gap persists in most countries. Using micro-level data to control for factors that influence personal choice, we re-examine the determinants of female employment in Europe. The results highlight the importance of positive attitudes towards women working and individual characteristics such as years of education and number of children. However, even after controlling for these factors, policies are also key drivers of female employment.
    Keywords: Euro Area;Labor markets;Labor force participation;gender gaps, International Social Survey Programme, labor force, labor, labor supply, employment, General, Economics of Gender, General, International Social Survey Programme.,
    Date: 2016–03–07
  18. By: Sanjeev Goyal; ; ;
    Abstract: It is instructive to view the study of networks in economics as a shift in paradigm, in the sense of Kuhn (1962). This perspective helps us locate the innovation that networks bring to economics, appreciate different strands of the research, assess the current state of the subject and identify the challenges.
    Date: 2015–02–24
  19. By: Thomas Buser (University of Amsterdam, the Netherlands)
    Abstract: I study how gender differences in willingness to compete evolve over time in response to experience. Participants in a lab experiment perform the same real-effort task over several rounds. In each round, they have to choose between piece-rate remuneration and a winner-takes-all competition. At the end of each round, those who compete get feedback on the competition outcome. The main result is that women are much more likely than men to stop competing after a loss, which leads to the appearance of a significant gender gap in competitiveness even among those who are initially willing to compete. This gender effect is also present for high performers. In an additional experiment, I show that giving feedback to non-competers might further increase the gender gap in willingness to compete as men who initially choose not to compete react more strongly to positive feedback compared to women.
    Keywords: competitiveness; gender; feedback; career decisions; laboratory experiment
    JEL: C91 D03 J01 J16
    Date: 2016–03–14
  20. By: Miguel Casares (Department of Economics, Universidad Pública de Navarra); Hashmat U. Khan (Department of Economics, Carleton University)
    Abstract: We document empirical evidence on the determinants of U.S. regional growth over the last 25 years, with a special attention to the role of entrepreneurial activity or `business dynamism'. The main data source is the Business Dynamics Statistics (BDS) released by the U.S. Census Bureau. The key findings are: i) business entry and exit rates are similarly distributed across states, ii) neither entry nor exit rates have had a significant impact on regional growth, iii) higher business density results in faster regional growth, iv) entry rates have fallen over time and the states with greater business detrending have had weaker economic growth, v) states where entry and exit show substantial comovement (business churning) tend to grow faster, especially after 2007, vi) state-level population growth has no substantial effect on regional growth, and vii) the convergence hypothesis holds across the states of the U.S.
    Keywords: Business dynamism; Entry-exit rates; Economic growth
    JEL: O30 O40 O51
    Date: 2016–03
  21. By: Obeng, Camara Kwasi
    Abstract: The use of location incentives for in-country dispersion of foreign direct investment (FDI) has become popular among countries in recent times in spite of the lack of consensus of its effectiveness in the literature. Location incentives are also common in Ghana. This study, therefore, explores the effect of location incentive as a tool for influencing the location of FDI away from the Greater Accra region to the remaining nine regions of Ghana, particularly, the three northern regions, Upper East region and Upper West region and Northern region. Using the Ghana Investment Promotion Centre data set from 1994 to 2015 and employing trend analysis, the results reveal that there is no relationship between location incentives and regional location of FDI. The study recommends that government should provide social and economic infrastructure in the northern part of Ghana so as to make the area attractive to foreign investors.
    Keywords: Location incentives, Foreign Direct Investment, Regional Distribution, Ghana
    JEL: F21 F3 F30
    Date: 2016–01

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