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on Economics of Strategic Management |
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Issue of 2016‒04‒09
fifteen papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | José Ernesto Amorós; María Soledad Etchebarne; Isabel Torres Zapata; Christian Felzensztein (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | The internationalization of new small and medium-sized enterprises is a challenge for many developing countries, especially those with open economies and small internal markets like Chile. This study, in an exploratory way, analyzes some of the factors that determine how new ventures are oriented to international markets from their early-stages. This paper develops a model that integrates variables related to firm characteristics like industrial sector, competitiveness, and size of the firm with a degree of internationalization. The empirical analysis uses data from the Global Entrepreneurship Monitor´s (GEM) adult population survey carried out in Chile during the period 2007-2013 (n=4,208). An ordinal logit regression model was used to test the hypotheses. Descriptive results show that 12.8% of Chilean entrepreneurs in the sample have a relatively high tendency towards internationalization and that the factors related to competitiveness are significant in respect to this tendency. The size of the firm and the propensity to create employment are also significant. Practical implications are discussed |
| Keywords: | Early internationalization; industrial sector; size; competitiveness; Chile; Global Entrepreneurship Monitor |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:29&r=cse |
| By: | Davide Luzzini (Audencia Recherche - Audencia); Markus Amann (Bundeswehr University Munich); Federico Caniato (Politecnico di Milano [Milan]); Michael Essig (Bundeswehr University Munich); Stefano Ronchi (Politecnico di Milano [Milan]) |
| Abstract: | This paper aims to investigate the effects of supplier collaboration on the firm innovation performance as well as the enabling characteristics of the purchasing function. This is an original contribution as few papers empirically test the effect of supplier collaboration (meant as supplier involvement, development, and integration) on innovation performance and –simultaneously – the contribution of strategic sourcing activities and purchasing knowledge. Also, we explore the technological uncertainty of the purchase as an important contingent factor that might influence the firm’s innovation strategy and the emphasis on supplier collaboration or strategic sourcing. Towards this end, we develop a theoretical framework and test it through a survey conducted on a sample of 498 companies worldwide. Results show that innovation, as a category priority, does lead to emphasize supplier collaboration and strategic sourcing which, in turn, ensure better innovation performance. Empirical evidence also shows that, on the one hand, adequate purchasing (managers) knowledge enables greater supplier collaboration and strategic sourcing; on the other hand, technological uncertainty put greater emphasis on innovation strategy as well as on strategic sourcing. |
| Keywords: | Innovation, Supplier collaboration, Strategic sourcing, Purchasing knowledge, Technological uncertainty |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01289738&r=cse |
| By: | Tavassoli, Sam (CIRCLE, Lund University); Bengtsson, Lars (Faculty of Engineering, Department of Industrial Management and Logistics, Lund University); Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies (CESIS), KTH, Stockholm; Jönköping International Business School & Blekinge Institute of Technology, Karlskrona, Sweden) |
| Abstract: | The literature in the Strategic Entrepreneurship (SE) is increasingly embracing the concept and implication of knowledge spillovers. In this paper, we add to the theoretical literature on SE and knowledge spillovers by investigating the types of knowledge spillovers and what they imply for various dimensions of SE. On the one hand, we distinguish between spatial and aspatial knowledge spillovers. On the other hand, we distinguish between various dimensions of SE, i.e. inputs, resource orchestration, and output. Finally, we conceptually link the various types of knowledge spillovers and dimensions of SE and discuss the implications. Doing so, we argue that spatial knowledge spillovers (inter-firm) play the major role in increasing the amount of ‘inputs’ dimension of SE, while the aspatial knowledge (either inter-regional or intra-firm) play the major role not only for ‘inputs’, but also for ‘rresource orchestration’ dimension. At the end, the paper provides suggestions for future research and managerial implications. |
| Keywords: | Strategic entrepreneurship; knowledge spillovers; spatial; aspatial |
| JEL: | L26 O31 R23 |
| Date: | 2016–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_008&r=cse |
| By: | Andrew B. Bernard; Valerie Smeets; Frederic Warzynski |
| Abstract: | Manufacturing in high-income countries is on the decline and Denmark is no exception. Manufacturing employment and the number of firms have been shrinking as a share of the total and in absolute levels. This paper uses a rich linked employer-employee dataset to examine this decline from 1994 to 2007. We propose a different approach to analyze deindustrialization and generate a series of novel stylized facts about the evolution. While most of the decline can be attributed to firm exit and reduced employment at surviving manufacturers, we document that a non-negligible portion is due to firms switching industries, from manufacturing to services. We focus on this last group of firms before, during, and after their sector switch. Overall this is a group of small, highly productive, import intensive firms that grow rapidly in terms of value-added and sales after they switch. By 2007, employment at these former manufacturers equals 8.7 percent of manufacturing employment, accounting for half the decline in manufacturing employment. We focus on the composition of the workforce as firms make their transition. In addition, we identify two types of switchers: one group resembles traditional wholesalers and another group that retains and expands their R&D and technical capabilities. Our findings emphasize that the focus on employment at manufacturing firms overstates the loss in manufacturing-related capabilities that are actually retained in many firms that switch industries. |
| JEL: | D21 L25 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22114&r=cse |
| By: | Inoue, Hiroyasu; Nakajima, Kentaro; Saito, Yukiko Umeno |
| Abstract: | This study investigates the localization of establishment-level knowledge creation using data from a Japanese patent database. Using distance-based methods, we obtain the following results. First, Japanese patent-creating establishments are significantly localized at the 5% level, with a localization range of approximately 80 km. Second, localization is observed for all patent technology classes, and the extent of localization has a positive relationship with the level of technology measured by R&D investment. Finally, the extent of localization is stronger for establishments that are more productive in terms of both the number of patents and the number of citations received, i.e., quantitatively and qualitatively. These results indicate that geographical proximity is important for knowledge spillover, particularly for knowledge-demanding establishments. |
| Keywords: | Knowledge spillover, Agglomeration, Micro-geographic data |
| JEL: | R11 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:remfce:47&r=cse |
| By: | Miguelez,Ernest |
| Abstract: | This paper documents the influence of diaspora networks of highly-skilled individuals -- that is, inventors -- on international technological collaborations. Using gravity models, it studies the determinants of the internationalization of inventive activity between a group of industrialized countries and a sample of developing and emerging economies. The paper examines the influence exerted by skilled diasporas in fostering cross-country co-inventorship as well as R&D offshoring. The study finds a strong and robust relationship between inventor diasporas and different forms of international co-patenting. However, the effect decreases with the level of formality of the interactions. Interestingly, some of the most successful diasporas recently documented -- namely, Chinese and Indian ones -- do not govern the results. |
| Keywords: | E-Business,ICT Policy and Strategies,Technology Industry,Real&Intellectual Property Law,Population Policies |
| Date: | 2016–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7619&r=cse |
| By: | Pedro Bento (Texas A&M University, Department of Economics) |
| Abstract: | I look at manufacturing firms across countries and over time, and find that barriers to competition actually increase the number of firms. This finding contradicts a central feature of all current models of endogenous markups and free entry, that higher barriers should reduce competition and firm entry, thereby increasing markups. To rationalize this finding, I extend a standard model in two ways. First, I allow for multi-product firms. Second, I model barriers as increasing the cost of entering a product market, rather than the cost of forming a firm. Higher barriers to competition reduce the number of products per firm and per market, but increase markups and the total number of firms. Calibrating the model to U.S. data, I estimate cross-country differences in consumption as large as 65 percent from observed differences in barriers to competition. In addition, increasing barriers generates either a negative or inverted-U relationship between firm-level innovation and markups. While higher markups encourage product-level innovation through the usual Schumpeterian mechanism, firm-level innovation (at least eventually) drops as firms reduce their number of products. I provide new evidence supporting these two novel implications of the model - that product-level innovation increases with barriers to competition, while the number of products per firm decreases. |
| Keywords: | product market regulation, entry costs, firm size, productivity, innovation, markups, competition, multi-product firms, innovation, inverted-U |
| JEL: | L1 L5 O1 O3 O4 |
| Date: | 2016–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:txm:wpaper:20160323-001&r=cse |
| By: | Dilli, Selin (Economic and Social History); Elert, Niklas (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Although institutional reforms are necessary to increase rates of entrepreneurship in European countries, we argue that one-size-fits-all reform strategies are unlikely to be successful. Reform strategies must be informed by a better knowledge of the varieties of European capitalism and the institutional complementarities that drive these differences. We investigate these issues by gathering a number of potentially relevant entrepreneurial regime measurements as well as indicators of formal and informal institutions based on data available from the 2000s onward. We employ principal component analysis, factor analysis and cluster analysis to examine how 21 European countries and the United States cluster in the entrepreneurial and institutional dimensions. Our results reveal six country clusters, or entrepreneurial regimes, with a distinct bundle of entrepreneurial characteristics and institutional attributes. The main implication is that different reform strategies are appropriate to promote entrepreneurship and economic growth in European countries in different clusters. |
| Keywords: | Entrepreneurship; Innovation; Institutions; Regulation |
| JEL: | L50 M13 O31 P14 |
| Date: | 2016–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1118&r=cse |
| By: | Albert Banal-Estañol; Inés Macho-Stadler; David Pérez-Castrillo |
| Abstract: | We study what makes a research grant application successful in terms of ability, type of research, experience, and demographics of the applicants. But our main objective is to investigate whether public funding organizations support the teams that are most likely to undertake transformative or "radical" research. Making use of the literature on recombinant innovation, we characterize such "radical teams" as those formed by eclectic and non-usual collaborators, and those that are heterogeneous and scientifically diverse. Our results, using data from the UK's Engineering and Physical Sciences Research Council (EPSRC), show that the more able, more basic, and more senior researchers, working in a top university, are more likely to be successful. But, radical teams are less likely to be funded by funding bodies. Our analysis of the research output of the awarded projects suggests that, voluntarily or involuntarily, the evaluation process in these organizations is biased against radical teams. |
| Keywords: | radical innovation, funding organizations, research grants |
| JEL: | O32 I23 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:890&r=cse |
| By: | Andrew B. Bernard; J. Bradford Jensen; Stephen J. Redding; Peter K. Schott |
| Abstract: | Research in international trade has changed dramatically over the last twenty years, as attention has shifted from countries and industries towards the firms actually engaged in international trade. The now-standard heterogeneous firm model posits a continuum of firms that compete under monopolistic competition (and hence are measure zero) and decide whether to export to foreign markets. However, much of international trade is dominated by a few "global firms," which participate in the international economy along multiple margins and are large relative to the markets in which they operate. We outline a framework that allows firms to be of positive measure and to decide simultaneously on the set of production locations, export markets, input sources, products to export, and inputs to import. We use this framework to interpret features of U.S. firm and trade transactions data and highlight interdependencies across these margins of firm international participation. Global firms participate more intensively along each margin, magnifying the impact of underlying differences in firm characteristics, and explaining their dominance of aggregate international trade. |
| Keywords: | firm heterogeneity, international trade, multinationals, multi-product firms |
| JEL: | L11 L21 L25 L60 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1420&r=cse |
| By: | Alexander Yu. Apokin (National Research University Higher School of Economics); Irina Ipatova (National Research University Higher School of Economics) |
| Abstract: | In this paper we estimate the impact of R&D expenditures on the total factor productivity (TFP) and technical efficiency of two panels of countries in the period 1990-2011. We obtain TFP decomposition estimates using one- and two-step Stochastic Frontier Analysis (SFA) and a modified (O’Donnell, 2008) Data Envelopment Analysis (DEA) framework. Our estimates of TFP growth rates correlate highly with those of OECD, The Conference Board and PWT. The efficiency-based rankings of the countries are similar to those from the results of other studies. The estimates of R&D’s impact on TFP and technical efficiency were obtained controlling for various factors, including the structure of the economy, institutional and infrastructural development and R&D expenditures over a total of five hundred possible model specifications. We found that the increase in total R&D expenditures by 1% of GDP in five years raises the average TFP growth rate by 5.0 to 7.7 percentage points, depending on the sample. Also, raising total R&D expenditures by $1,000 per researcher raises TFP growth five years later by 0.013 to 0.025 percentage points, depending on the sample. Also we have identified a significant impact of lagged R&D expenditures (up to ten years) on the dynamics of the global technology frontier component in the presence of a number of control variables. |
| Keywords: | DEA, SFA, total factor productivity, technical efficiency, R&D expenditures |
| JEL: | O11 O33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:128/ec/2016&r=cse |
| By: | Giessner, S.R. |
| Abstract: | Organisational mergers are one of the most extreme forms of organisational change processes. Consequently, they often result in difficulties for employees to adjust to the altered organisational conditions. This is often reflected in low levels of employee identification with the post-merger organisation. As a result, merging organisations experience more conflict, less employee motivation, higher turnover and lower performance levels. These low levels of post-merger identification thus often put the strategic and financial goals of the merger at risk. I argue that an organisational behaviour perspective focusing on the management of identity levels during an organisational merger provides important practical insights for employee management. I will first explain why I am personally so fascinated by this topic. I will then present an identity management perspective on organisational mergers. Here, I will consider three key aspects: (1) Identity processes; (2) Intergroup structure; and (3) Leadership. I will conclude by giving an overview of the potential challenges and directions for future research in this field. |
| Keywords: | mergers, acquisitions, esprit de corps, identity management, post-merger identification, social identity, human resource management, employee adjustment, uncertainty |
| JEL: | G34 L22 M12 M14 |
| Date: | 2016–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriar:79983&r=cse |
| By: | Amiti, Mary; Itskhoki, Oleg; Konings, Jozef |
| Abstract: | How strong are strategic complementarities in price setting across firms? In this paper, we provide a direct empirical estimate of firm price responses to changes in prices of their competitors. We develop a general framework and an empirical identification strategy to estimate the elasticities of a firm’s price response to both its own cost shocks and to the price changes of its competitors. Our approach takes advantage of a new micro-level dataset for the Belgian manufacturing sector, which contains detailed information on firm domestic prices, marginal costs, and competitor prices. The rare features of these data enable us to construct instrumental variables to address the simultaneity of price setting by competing firms. We find strong evidence of strategic complementarities, with a typical firm adjusting its price with an elasticity of 35% in response to the price changes of its competitors and with an elasticity of 65% in response to its own cost shocks. Furthermore, we find substantial heterogeneity in these elasticities across firms, with small firms showing no strategic complementarities and a complete cost pass-through, while large firms responding to their cost shocks and competitor price changes with roughly equal elasticities of around 50%. We show, using a tightly calibrated quantitative model, that these findings have important implications for shaping the response of domestic prices to international shocks. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11182&r=cse |
| By: | Cardoso-Vargas, Carlos-Enrique |
| Abstract: | This document examines whether the agglomeration of foreign processing firms (PCS) assembling imported inputs to make export products favors the incorporation to the export activity or market expansion of domestic companies. Similarly this situation is evaluated by considering ordinary foreign firms (ORD) or not manufactured processed products and non-local hybrid companies (HBR) that act in both regimes of commerce. The theoretical framework guiding the empirical evaluation is based on a simple model inspired by Melitz (2003), which is evaluated by means of a conditional logit model with panel data. The findings show evidence that the concentration of these types of foreign companies increases the probability that domestic companies show a presence in certain markets. Notwithstanding, these export spillovers widely heterogeneous in virtue of the fact that their existence and sphere of influence are associated with their specificity in terms of country or product, as well as with the regime of commerce and the technological capacity used by domestic companies vis-à-vis neighboring foreign companies. |
| Keywords: | international trade, agglomeration externalities, heterogeneity firms |
| JEL: | F13 F14 F21 |
| Date: | 2016–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70212&r=cse |
| By: | Peter Arcidiacono; Esteban M. Aucejo; V. Joseph Hotz |
| Abstract: | We examine differences in minority science graduation rates among University of California campuses when racial preferences were in place. Less-prepared minorities at higher-ranked campuses had lower persistence rates in science and took longer to graduate. We estimate a model of students' college major choice where net returns of a science major differ across campuses and student preparation. We find less-prepared minority students at top- ranked campuses would have higher science graduation rates had they attended lower-ranked campuses. Better matching of science students to universities by preparation and providing information about students' prospects in different major-university combinations could increase minority science graduation. |
| Keywords: | STEM majors; minorities; college graduation |
| JEL: | A22 I2 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:64178&r=cse |