nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒05‒08
twenty papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. “Innovation, heterogeneous firms, and the region” By Enrique López-Bazo; Elisabet Motellón
  2. Innovation Strategies in Indian Textile Sector – Evidence from Surat Textile Cluster By Pohit, Sanjib; Jamal, Tabassum; Suman, Yogesh; Kumar Yadav, Nitesh; Kumar Saini, Mahesh
  3. Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks By Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
  4. Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms By Amandine Pinget; Rachel Bocquet; Caroline Mothe
  5. Regional distribution of the national system of innovation actors and economic development: an international comparison By Ulisses Pereira dos Santos
  6. University differences in the graduation minorities in STEM fields: evidence from California By Peter Arcidiacono; Esteban M. Aucejo; V. Joseph Hotz
  7. Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  8. The catch-22 of external validity in the context of constraints to firm growth By Gregory Fischer; Dean Karlan
  9. Using Continuous Improvement and Innovation Principles for Strategic Planning in a Government Department By Griffith, G.R.; Mullen, J.D.
  10. Impacts of Self-efficacy on Perceived Feasibility and Entrepreneurial Intentions: Empirical Evidence from China By Peng, Yan-ling; Kong, Rong; Turvey, Calum G.
  11. Testing the effect of firm performance on growth for the Chilean agribusiness By Brenes-Munoz, Thelma
  12. Industrial Penetration and Internet Intensity By Chia-Lin Chang; Michael McAleer; Yu-Chieh Wu
  13. Banking Consolidation and Small Firm Financing for Research and Development By Chang, Andrew C.
  14. Innovation and Access to Finance – A Review of the Literature By Michele Cincera; Anabela Marques Santos
  15. Analyses of Aggregate Fluctuations of Firm Networks Based on the Self-Organized Criticality Model and Control Theory By INOUE Hiroyasu
  16. Promoting Innovation in Small Markets: Evidence from the market for rare and intractable diseases By IIZUKA Toshiaki; UCHIDA Gyo
  17. The concept of “empowerment†in the research on organization and innovativeness By Nicoletta Baskiewicz; Aneta Pachura
  18. Is a positive relationship between fertility and economic development emerging at the sub-national regional level? Theoretical considerations and evidence from Europe By Jonathan F. Fox; Sebastian Klüsener; Mikko Myrskylä
  19. Innovating rural resources governance through new policy instruments: the case of “network contracts” By Secco, Laura; Abatangelo, Chiara; Pisani, Elena; Gallo, Diego; Pettenella, Davide; Gatto, Paola; Dare, Riccardo; Vidale, Enrico
  20. Entrepreneurial University Culture: The Clash of Values And Resistance to Change By Gerasim A. Mkrtychyan

  1. By: Enrique López-Bazo (AQR Research Group-IREA, University of Barcelona); Elisabet Motellón (AQR Research Group-IREA, University of Barcelona. Universitat Oberta de Catalunya)
    Abstract: This paper investigates the role of regional determinants on innovation performance controlling by the firm’s absorptive capacity and other sources of firm heterogeneity. The findings for a sample of firms in Spain support the hypothesis that regional determinants matter, though their role is subtler than the one frequently assumed. Rather than a direct influence on firm’s innovation, the regional context moderates the effect of internal determinants. In the case of product innovation the most important mechanism of interaction seems to be operating through cooperation in innovation, whereas for process innovation it seems to be through highly skilled labour.
    Keywords: product innovation, process innovation, firm, multilevel modelling, Spanish regions JEL classification: D21; O31; R10; R15
    Date: 2016–04
  2. By: Pohit, Sanjib; Jamal, Tabassum; Suman, Yogesh; Kumar Yadav, Nitesh; Kumar Saini, Mahesh
    Abstract: Though India has comparative advantage in labour intensive sector like textile, India’s performance in this sector is not too impressive on the export front. In this context, this paper argues that lack of innovation culture could be one of the principal reasons for India’s poor performance. This hypothesis is tested by conducing primary survey in one of the more dynamic textile cluster in Northern India namely, Surat and adjoining areas. Our findings do indicate lack of product as well as organisational innovation culture in this region, which may be a serious bottleneck in competitive export market. We do find that firms score well in respect of marketing innovation which probably suggests that competitive pressure has increased due to the globalization of the economy. Firms are also found to be keen in respect of process innovation to reduce cost in the aftermath of increased pace of competition in the sector.
    Keywords: Textile industry, Surat, Innovation, Survey
    JEL: L67
    Date: 2016–03–30
  3. By: Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
    Abstract: This paper analyses how the formation of collaboration networks affects firm-level innovation by applying the ‘Goldilocks principle’. The ‘Goldilocks principle’ of optimal distance in innovation networks postulates that the best firm-level innovation results are achieved when the partners involved in the network are located at the ‘right’ distance, i.e. ‘not too close and not too far’ from one another, across non-geographical proximity dimensions. This principle is tested on a survey of 542 Norwegian firms conducted in 2013, containing information about firm-level innovation activities and key innovation partners. The results of the ordinal logit regression analysis substantiate the Goldilocks principle, as the most innovative firms are found amongst those that collaborate with partners at medium levels of proximity for all non-geographical dimensions. The analysis also underscores the importance of the presence of a substitution-innovation mechanism, with geographical distance problems being compensated by proximity in other dimensions as a driver of innovation, whilst there is no support for a potential overlap-innovation mechanism.
    Keywords: Proximities, innovation, networks, collaboration, Goldilocks principle, Norway
    JEL: O31 O33 D85
    Date: 2016–05
  4. By: Amandine Pinget (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Recent literature explores the determinants of environmental innovations (EI) but rarely addresses obstacles to these innovations. To our knowledge, no previous study accounts for antecedents of EI to explore the various perceived barriers to EI for small and medium-sized enterprises (SMEs). Noting the importance of SMEs in European economies, this article identifies the extent to which SMEs perceive barriers to environmental innovations, considering their type, number, and intensity. With a merged data set of 435 French SMEs, we investigate different perceptions of environmentally innovative SMEs, compared with those of technologically innovative SMEs and non-innovative ones, using a multiple treatment model that integrates the antecedents. We thereby analyze SME CEO's perceptions of barriers to EI. The barriers are not only more numerous but also more important for SMEs that engage in environmental innovation activity compared with those that have introduced only technological innovation or those that do not undertake any innovation activity.
    Keywords: SME,Multiple treatment model,CEO perceptions,Antecedents,Barriers,Environmental innovation
    Date: 2015
  5. By: Ulisses Pereira dos Santos (Cedeplar-UFMG)
    Abstract: It is believed that actors of the National System of Innovation (NSI) influence and are influenced by regional aspects, such as geographical distribution. Based on this perspective the scientific, technological and economical performances in sub-national divisions of nine developed and developing countries are analyzed in this paper. The aim is to evaluate the hypothesis on the existence of higher regional concentration of NSI actors in developing countries. The results suggest that this hypothesis may be correct, since science, technology and innovation activities are more likely to be regionally concentrated in the richest regions in the developing countries under consideration, contrary to that observed in developed countries.
    Keywords: National Systems of Innovation, Regional Development, Economic Development, Developing Countries.
    JEL: O10 O57 R58
    Date: 2016–03
  6. 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
  7. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB) (Sustainable Development and Climate Change Department, ADB); Asian Development Bank (ADB)
    Abstract: Globalized production networks, or global value chains, provide an opportunity for small and medium-sized enterprises (SMEs) to upscale their business models and to grow across borders. This process can enhance SME competitiveness, create more jobs, and promote inclusive growth in developing Asia. The Asian Development Bank and the Asian Development Bank Institute recognize the importance of integrating SMEs into global value chains. To provide pathways for such integration, this study examines ways of encouraging participation in value chains, and explores policy solutions to address the financial and nonfinancial barriers faced by these enterprises.
    Keywords: small and medium enterprise; global value chains; sme finance; production networks; supply chain finance; trade finance; SME internationalization
    Date: 2015–10
  8. By: Gregory Fischer; Dean Karlan
    Abstract: We document the presence of multiple and varied constraints to small and medium firm growth. This presents both a practical problem for business training programs and a challenge to academic economists trying to identify mechanisms though which these programs may affect outcomes. External validity needs theory. This pushes researchers to narrowly defined and highly selected sample frames, which limits the potential for clear, generalizable policy prescriptions. Ultimately, larger samples, multi-arm evaluations, process documentation, and narrowly-focused, theory-supported empirical work are all needed, but the complexity of the problem limits what we learn from any single study.
    JEL: J1
    Date: 2015–05
  9. By: Griffith, G.R.; Mullen, J.D.
    Abstract: Continuous Improvement and Innovation (CI&I) is both a management process and a management strategy. In this paper we describe how CI&I principles have been used in a strategic planning context by the research economists’ group in the NSW Department of Primary Industries. We provide some background on the development of CI&I as a management concept and describe the steps involved in implementing the CI&I process in this context. We conclude with some observations about the usefulness of this approach for planning in a government department.
    Keywords: Continuous improvement and innovation, process, strategy, planning, action, Industrial Organization,
    Date: 2016
  10. By: Peng, Yan-ling; Kong, Rong; Turvey, Calum G.
    Abstract: This paper presents a structural equation model of entrepreneurial intentions as influenced by self-efficacy and perceived feasibility. In this paper self-efficacy refers to a kind of subjective perception and belief that the farmers complete the entrepreneurial activities on the basis of their capacity defined as entrepreneurial self-efficacy, which measured by five dimensions including resource acquisition, opportunity recognition, interpersonal relations, risk management, innovation management. The main findings are that most farmers appear to have a remarkable degree of entrepreneurial intentions; besides, self-efficacy has a significant and positive impact on farm households’ entrepreneurial intentions, and the effect is 0.669; furthermore, perceived feasibility of farmers play a significant role on entrepreneurial intentions; finally, the perceived feasibility of farmers has a partial mediating effect between entrepreneurial self-efficacy and the entrepreneurial intentions.
    Keywords: Agricultural and Food Policy,
    Date: 2015
  11. By: Brenes-Munoz, Thelma
    Abstract: Previous studies of the industrial organization field find that the relationship between firm performance and growth is weak. The objective of this paper is to test this relationship at different quantiles of the firm growth distribution. We also explore the effect of technology gaps and export status on growth. For this, we use Penalized Quantile Regression with Fixed Effects on 420 Chilean agribusiness firms. Key results show that performance, measured as technical efficiency, has a significant and heterogeneous impact on revenue growth. The effect is stronger on slow growing firms: one point increase in technical efficiency increases revenue growth by 1.2 % at the 0.10 quantile, the effect is 0.4 % at the 0.90 quantile. Hence, two key aspects shall be considered in future studies of firm growth and performance: first, to use adequate indicators for performance which capture the entirety of the production process, and second, to consider the non-linearity of their relationship.
    Keywords: firm growth, technical efficiency, quantile regression, panel data, fixed effects, Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies, L20, D22, C21, C23,
    Date: 2015
  12. By: Chia-Lin Chang (National Chung Hsing University, Taichung, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands, and Complutense University of Madrid, Spain); Yu-Chieh Wu (National Chung Hsing University, Taichung, Taiwan)
    Abstract: This paper investigates the effect of industrial penetration and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet intensity; (2) for two-digit industries, industrial penetration generally decreases the total expenditure on internet intensity; and (3) industrial penetration and internet intensity are substitutes.
    Keywords: Industrial penetration; Internet intensity; Sample selection; Incidental truncation
    JEL: D22 L60
    Date: 2016–04–25
  13. By: Chang, Andrew C.
    Abstract: This paper examines the effect of increased market concentration of the banking industry caused by the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) on the availability of finance for small firms engaged in research and development (R&D). I measure the financing decisions of these small firms using a balanced panel of Small Business Innovation Research (SBIR) applications. Using difference-in-differences, I find IBBEA decreased the supply of finance for small R&D firms. This effect is larger for late adopters of IBBEA, which tended to be states with stronger small banking sectors pre-IBBEA.
    Keywords: Banking Deregulation ; IBBEA ; Interstate Bank Branching Deregulation ; Market Concentration ; Research and Development ; Riegle-Neal ; Small Business Innovation Research
    JEL: G21 G28 G39 O30
    Date: 2016–04–08
  14. By: Michele Cincera; Anabela Marques Santos
    JEL: O31 O38 O52
    Date: 2015
  15. By: INOUE Hiroyasu
    Abstract: This study examines the difference in the size of avalanches among industries triggered by demand shocks, which can be rephrased by control of the economy or fiscal policy, and by using the production-inventory model and observed data. In addition, we investigate how differently demand shocks affect each firm by using control theory that utilizes network topology. We obtain the following results. (1) The size of avalanches follows power law. (2) The mean sizes of avalanches for industries are diverse, but their standard deviations highly overlap. (3) We compare the simulation with an input-output table and with the actual policies and find them to be compatible. (4) The expectations about becoming involved in avalanches are diverse and depend on the industries. (5) It is difficult for service industries and small firms to be affected by the control. On the other hand, mining, manufacturing, and wholesale industries are strongly affected by the control. (6) If we clip a network in descending order of capital size, we do not lose the control effect.
    Date: 2016–03
  16. By: IIZUKA Toshiaki; UCHIDA Gyo
    Abstract: In many medical care markets with limited profit potential, firms often have little incentive to innovate. These include the markets for rare diseases, "neglected" tropical diseases, and personalized medicine. Governments and not-for-profit organizations attempt to promote innovation in such markets, but empirical evidence on the policy effect is limited. We study this issue by analyzing the impact of a demand-side policy in Japan, which reduces the cost sharing of patients with some rare and intractable diseases and attempts to establish and promote the treatment of those diseases. Using clinical trials data taken from public registries, we identify the effect of the policy using a difference-in-difference approach. We exploit the institutional detail that the diseases covered by the policy increased in an arbitrary fashion over time. We find that the demand-side policy increased firms' incentive to innovate: firm-sponsored new clinical trials increased by as much as 181% when covered by the policy. This result indicates that the demand-side policy can be an important part of innovation policies in markets with limited profit potential.
    Date: 2016–03
  17. By: Nicoletta Baskiewicz (Technical University of Częstochowa, Faculty of Management); Aneta Pachura (Technical University of Częstochowa, Faculty of Management)
    Abstract: The dynamic nature of the socio – economic environment and a necessity to improvement of management systems of today's organizations leads to undertaking a research on an importance of organizational social potential and its dimensions. The theory of management science has a rich set of management concepts related to social potential. Very valuable concepts seem to be highly exposing the subjectivity and individuality of employees in organization. The aim of this study is an attempt to interpret the concept of empowerment from the perspective of this research on organization, and its potential of innovation.The study was focused on basic interpretation and systematization of the empowerment concept. The text indicated selected properties of empowerment such as engagement, initiative, creativity, autonomy, freedom, responsibility, efficiency etc. Further conceptualization of the concept was carried out from the managerial perspective as well as psychological dimension. On this background the study distinguished attributes and possibility of application of the empowerment concept in the area of development of the innovation potential of the organization. Among others, it was pointed out, for example: the space of social relationships, social awareness, organizational climate, active and free information exchange, access to knowledge, creation of new knowledge, organizational roles, flexibility and decentralization of organizational structures.
    Keywords: empowerment, innovativeness, organization, management, conceptualisation
    JEL: M51 O15 O31
  18. By: Jonathan F. Fox (Max Planck Institute for Demographic Research, Rostock, Germany); Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Evidence for nation-states suggests that the long-standing negative relationship between fertility and economic development turns positive at high levels of development. Here we investigate whether such a turnaround could also occur at the sub-national regional level in highly developed countries. In the theoretical section we discuss important trends that might foster the emergence of a positive relationship within such countries. Our empirical analysis focuses on Europe, which is comprised of a number of highly developed countries with comparatively high fertility levels. We investigate data for 20 countries between 1990 and 2012. Using panel regression techniques, we find evidence for the emergence of a positive—or, at the very least, less negative—relationship between fertility and economic development within many countries. These findings do not seem to be driven by postponement effects alone. Moreover, the results indicate that there is substantial variation in the fertility and the economic development levels at which such tendencies toward a reversal are observed.
    Keywords: Europe, economic development, fertility
    JEL: J1 Z0
    Date: 2015–11
  19. By: Secco, Laura; Abatangelo, Chiara; Pisani, Elena; Gallo, Diego; Pettenella, Davide; Gatto, Paola; Dare, Riccardo; Vidale, Enrico
    Keywords: Agricultural and Food Policy,
    Date: 2015–06
  20. By: Gerasim A. Mkrtychyan (National Research University Higher School of Economics)
    Abstract: This paper introduces an original methodology for assessing the organizational culture of an entrepreneurial university. Methods for the assessment of values in research activity and of resistance to organizational change have been developed. The study of values and characteristics of resistance to change was conducted on the academic staff of the faculties of Economics and Management at the Nizhny Novgorod campus of the Higher School of Economics. It was found that the campus professors' academic orientation in research activity dominates their entrepreneurial orientation and that the strength of this influence differs amongst them, depending on their values. Additionally, greatest resistance in professors is caused by changes in human resources policy and management; this resistance is of moderate intensity and passive. The study confirms a positive relationship between the academic orientation of the "motivation" and "reward" values and the intensity of resistance to change in personnel policy and management.
    Keywords: entrepreneurial university, organizational culture, academic values, entrepreneurial values, resistance to change.
    JEL: M14
    Date: 2016

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