nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒06‒04
twenty papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Case Studies on Open Innovation in ICT By Alberto Di Minin; Chiara Eleonora De Marco; Cristina Marullo; Andrea Piccaluga; Elena Casprini; Maral Mahdad; Andrea Paraboschi
  2. La innovación como determinante pare el emprendimiento By Molina, Jose Alberto; Velilla, Jorge
  3. Complex Internationalization Strategies and Firm Export Dynamics: Crisis and Recovery By David Córcoles; Carmen Díaz-Mora*; Rosario Gandoy
  4. Governance and Performance in the U.S. Agri-Food Industry: A Comparative Study of Firms and Cooperatives By Grashuis, Jasper; Cook, Michael
  5. Entrepreneurial activity in the OECD: Pooled and cross-country evidence By Molina, Jose Alberto; Velilla, Jorge; Ortega, Raquel
  6. ‘Better late than never’: a longitudinal quantile regression approach to the interplay between green technology and age for firm growth By Riccardo Leoncini; Alberto Marzucchi; Sandro Montresor; Francesco Rentocchini; Ugo Rizzo
  7. Industrial penetration and internet intensity By Chia-Lin Chang; Michael McAleer; Yu-Chieh Wu
  8. Lock-in of mature innovation systems, The transformation toward clean concrete in the Netherlands By Wesseling, Joeri H.; van der Vooren , Alexander
  9. Multinational enterprises and economic development in host countries: What we know and what we don't know By Narula, Rajneesh; Pineli, André
  10. The Productivity Impact of R&D Investment: A Comparison between the EU and the US By Castellani, Davide; Piva, Mariacristina; Schubert, Torben; Vivarelli, Marco
  11. Does bank competition reduce cost of credit? Cross-country evidence from Europe By Fungáčová, Zuzana; Shamshur, Anastasiya; Weill, Laurent
  12. Public and Private Agricultural R&D Investment and Research Productivity of in China By Jin, Yanhong; Hu, Yahong; Pray, Carl; Hu, Ruifa
  13. Birth Weight and Family Resource Allocations: New Evidence from Twins By Carrillo, B.; Branco, D.
  14. Local and regional spatial interactions of Norwegian farm growth By Storm, Hugo; Heckelei, Thomas
  15. The Economic Implications of Social Capital on Hispanic Entrepreneurship By Torres, Ariana; Marshall, Maria; Delgado, Michael
  16. Corruption and innovation: the mediating role of trade By DeMaria, Federica; Franco, Chiara; Solferino, Nazaria
  17. Innovation and Firm Productivity: Evidence from the US Patent Data By Cui, Jingbo; Li, Xiaogang
  18. Technology assessment in Non-PTA countries: an overview of recent developments in Europe By Nuno Boavida; António Brandão Moniz
  19. Talent management in conditions of globalization as a challenge for modern enterprises By Sylwia Nadolna
  20. Do Regions Gain from an Open Economy? By Ernesto M. Pernia; Janine Elora M. Lazatin

  1. By: Alberto Di Minin (Scuola Superiore Sant'Anna); Chiara Eleonora De Marco (Scuola Superiore Sant'Anna); Cristina Marullo (Scuola Superiore Sant'Anna); Andrea Piccaluga (Scuola Superiore Sant'Anna); Elena Casprini (Scuola Superiore Sant'Anna); Maral Mahdad (Scuola Superiore Sant'Anna); Andrea Paraboschi (Scuola Superiore Sant'Anna)
    Abstract: This report synthesizes the results of 13 case studies on innovative ICT and ICT-enabled companies across Europe. It aims to assess the impact of Open Innovation strategies (OISs) on their innovation processes and to highlight the role played by ICT.
    Keywords: Open Innovation, ICT, Innovation Ecosystem, SMEs, LE
    Date: 2016–05
  2. By: Molina, Jose Alberto; Velilla, Jorge
    Abstract: This project analyzes specifically how innovation and technological aspects influence the entrepreneurial activity around the world and in Spain. Recent international microdata GEM Global Individual (2014) are applied using a novel econometric methodology based on the Machine Learning techniques for selecting variables based on their predictive ability. Our results, both for Spain and internationally, support the importance of innovation as a critical component of the enterprise, characterizing in this way an "entrepreneurship by innovative vocation" in the sense that the fundamental reason that motivates entrepreneurship is the desire to deliver new services, products or technologies.
    Keywords: Enprepreneurship, Innovation, Machine Learning, GEM Data
    JEL: D22 J21
    Date: 2016–05–19
  3. By: David Córcoles (University of Castilla-La Mancha); Carmen Díaz-Mora* (University of Castilla-La Mancha); Rosario Gandoy (University of Castilla-La Mancha)
    Abstract: The aim of this paper is to investigate the dynamics of the exporting activity of manufacturing firms that are involved in complex internationalization strategies. We consider complex internationalization to be when firms are simultaneously active in exporting, importing intermediates and international production, which are typically associated with participation in GVCs. Our descriptive data show that these triple mode internationalized firms belong to an elite group of firms that exhibit a higher level of labour productivity, are larger and show a higher likelihood of engaging in product innovation. On the basis of the estimation of a random-effects probit model with panel data, we find that once such firm characteristics are controlled for, internationalization complexity plays an important role in continuing to export. Additionally, the results from a dynamic panel data model show that being involved in more sophisticated internationalization modes positively influences the level of exports. Thus, it seems that firms active in a complex mix of internationalization strategies have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood of ceasing exporting and to higher export values. We go one step further and investigate whether the impact is different during the trade collapse in 2009 and the following recovery.
    Keywords: Export dynamics, firms' characteristics, complex internationalization, trade collapse and recovery
    Date: 2016–05
  4. By: Grashuis, Jasper; Cook, Michael
    Abstract: This paper presents a unique descriptive and empirical study of governance and performance in the U.S. agri-food industry with specific emphasis on the boards of directors of firms and cooperatives. Per the summary statistics, the average firm has more assets, more sales, and more profits, yet efficiency and profitability ratios indicate the average cooperative is superior. Using seven board and management characteristics, a three-stage least squares model is specified for two samples of 128 firms and 456 cooperatives in order to address the hypothesized endogenous nature of the governance-performance relationship. For the cooperative sample, the impact of board size on performance is estimated to be negative, while female directorship, director independence, and director ownership have a positive and significant causal relationship to various proxies of performance. Overall, in relation to financial performance, governance as proxied by board and management characteristics is concluded to be more impactful for the cooperative sample, which implies a significant difference between corporate and cooperative governance.
    Keywords: Governance, Agricultural Cooperative, Three Stage Least Squares, Comparative Study, Agribusiness, Industrial Organization, Q13, Q14, Q15,
    Date: 2016
  5. By: Molina, Jose Alberto; Velilla, Jorge; Ortega, Raquel
    Abstract: This paper analyzes the role of innovation, and other socio-demographic variables, in the entrepreneurial activity in the OECD. We use the index from the GEM 2014 Global Individual Level database, which contains international micro-data for individuals. Our pooled and cross-country results show that young male individuals tend to entrepreneur more than their counterparts. Innovation is also positive strongly related to entrepreneurship. Furthermore, making use of unbiased estimates based on relatively novel and underused techniques we give strong robustness to this result. We find that family and well-being variables follow a mixed relationship with entrepreneurship. Skills, transmission by meeting and opportunities also play an important role.
    Keywords: Entrepreneurship, TEA, OECD.
    JEL: C21 L26 O31
    Date: 2016–05–25
  6. By: Riccardo Leoncini (University of Bologna (Italy); Freiburg Institute for Advanced Studies (FRIAS), University of Freiburg (Germany); IRCrES-CNR (Italy)); Alberto Marzucchi (Catholic University of Milan (Italy)); Sandro Montresor (Kore University of Enna (Italy)); Francesco Rentocchini (Southampton Business School, University of Southampton (UK)); Ugo Rizzo (University of Ferrara (Italy))
    Abstract: This paper investigates the relationships between green/non-green technologies and firm growth. By combining the literature on eco-innovations with industrial organisation and entrepreneurial studies, this relationship is investigated by considering its dependence on the pace at which firms grow and the moderating role of age. Based on a sample of 5498 manufacturing firms in Italy for the period of 2000-2008, we estimate longitudinal fixed effects quantile models in which age is set to moderate the effects of green and non-green patents on employment growth. The results indicate a positive role of green technologies in growth greater than the effect of non-green technologies. This result is valid with the exception of struggling and rapidly growing firms: the relevance of moderately growing firms thus emerges in contrast to the more celebrated “elite of superstar” growing companies. Age plays a moderating role in the growth effects of green technologies. Not completely inconsistent with the extant literature, this moderation effect is positive, indicating the importance of firm experience in benefiting from green technologies in terms of growth, possibly relative to the complexity of their management.
    Keywords: green technology; firm growth; age; quantile fixed effects
    JEL: L26 O33 Q55
    Date: 2016–05
  7. By: Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University Taichung, Taiwan.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute, Erasmus School of Economics Erasmus University Rotterdam and Tinbergen Institute, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain.); Yu-Chieh Wu (Department of Applied Economics 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
  8. By: Wesseling, Joeri H. (CIRCLE, Lund University); van der Vooren , Alexander (Sustainable Development Department, PBL)
    Abstract: Energy-intensive processing industries like the concrete industry form the base of the economy and account for a large part of greenhouse gas emissions. Sectoral transformation to cleaner basic materials is therefore crucial, and institutional pressure to do so is increasing. These sectors have nevertheless been largely omitted by socio-technical studies. This paper therefore sets out to analyze the systemic problems that inhibit the transformation of the mature innovation system of the concrete sector toward the development, diffusion and adoption of clean concrete innovations, for the case of the Netherlands. A coupled structural-functional approach has been frequently applied to identify such systemic problems, but has been limited to emerging technological innovation systems. Consequently, the approach tends to overlook the systemic lock-in that arises from interdependent systemic problems and vested interests that characterize mature innovation systems. This paper analyzes these characteristics to extend the application of the structural-functional approach to the transformation of mature innovation systems. Interviews with 28 stakeholders were conducted and triangulated with reports, websites and other documents. A list of systemic problems was identified that originate within actors, institutions, networks, technology and infrastructure and that impaired the performance of all system functions except knowledge development. Systemic problems are indeed found to be strongly interdependent, leading to systemic lock-in. Through strategic, often collective action, established firms with vested interests were able to reinforce these systemic problems to inhibit clean concrete innovation. The study concludes that systemic lock-in inhibits the sustainability transformation of the mature innovation system of concrete in the Netherlands and confirms that the application of the structural-functional approach can be extended from emerging to mature innovation systems.
    Keywords: system failures; system functions; vested interest; sectoral innovation system; sectoral system of innovation and production; technological innovation system
    JEL: O25 O31 O33 O38 Q01
    Date: 2016–05–13
  9. By: Narula, Rajneesh (Henley Business School, University of Reading); Pineli, André (Henley Business School, University of Reading)
    Abstract: The attraction of multinational enterprises (MNEs) has become a key component of development policies. Generous incentive packages are offered by governments to attract foreign direct investment (FDI), although few countries perform proper cost/benefit analyses. MNEs can have a decisive influence on the development path of countries, although the effectiveness of an FDI-assisted development strategy depends on a variety of factors. Net benefits depend not only on quantity, but also on the quality of FDI. Quality has to do with the MNE's investment motivations, the affiliates' mandate and autonomy, which in turn determine the potential for linkages and spillovers. These effects also depend on the capacity of domestic firms to absorb, internalise and upgrade their knowledge assets. A sound FDI policy must not be exclusively concerned with attracting capital investment, but must prioritise enhancing the local embeddedness of the MNEs. Globalisation and subsequent changes in economic organisation require both policy makers and scholars to reconsider their understanding of FDI and development. "FDI" and "MNEs" are no longer synonyms, as MNEs are increasingly able to control value chains without ownership through equity. Poor data and weak methodologies mean making realistic estimations of development effects is also increasingly fraught with difficulty. The tools to measure linkages and spillovers are increasingly outdated, as we cannot estimate non-equity engagements or knowledge flows, and this means we are unable to objectively judge if foreign investments have a net positive or negative effect, and whether such effects persist or attenuate over time.
    Keywords: multinational enterprises, foreign direct investment, economic development, developing countries, externalities, spillovers, linkages
    JEL: D62 F23 O14 O19 O24
    Date: 2016–05–10
  10. By: Castellani, Davide (University of Reading); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Schubert, Torben (Lund University); Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech industries), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change at least in medium and low-tech sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which – instead of purely aiming at stimulating higher R&D expenditures – works on improving the firms' capabilities to transform R&D into productivity gains.
    Keywords: R&D, productivity, economic crisis, US, EU
    JEL: O33 O51 O52
    Date: 2016–05
  11. By: Fungáčová, Zuzana; Shamshur, Anastasiya; Weill, Laurent
    Abstract: Despite the extensive debate on the effects of bank competition, only a handful of single-country studies deal with the impact of bank competition on the cost of credit. We contribute to the literature by investigating the impact of bank competition on the cost of credit in a cross-country setting. Using a panel of firms from 20 European countries covering the period 2001–2011, we consider a broad set of measures of bank competition, including two structural measures (Herfindahl-Hirschman index and CR5), and two non-structural indicators (Lerner index and H-statistic). We find that bank competition increases the cost of credit and observe that the positive influence of bank competition is stronger for smaller companies. Our findings accord with the information hypothesis, whereby a lack of competition incentivizes banks to invest in soft information and conversely increased competition raises the cost of credit. This positive impact of bank competition is however influenced by the institutional and economic framework, as well as by the crisis.
    Keywords: bank competition, bank concentration, cost of credit
    JEL: G21 L11
    Date: 2016–03–30
  12. By: Jin, Yanhong; Hu, Yahong; Pray, Carl; Hu, Ruifa
    Abstract: Employing the count data analysis based on survey data of 1355 firms in China’s 29 provinces collected in 2007, this study analyzes the impact of public and private agricultural R&D investments on research productivity measured by the number of patents granted to agricultural firms. We find that private R&D investments and having an own R&D research center increase the number of patents granted. However, the public R&D investments do not have a statistically significant effects on the number of patents granted. We also find that the number of research staff, especially of doctoral research staff, has a positive and statistically significant effect on the number of patents granted. Multi-national firms and firms located in central China have fewer patents than their counterparts. The main findings suggest that it is more efficient for Chinese government to improve research productivity if it encourages private agricultural R&D investments and helps agricultural firms to build their own R&D centers. Chinese government may also need to strengthen the legal framework and institutional resources for the protection and enforcement of intellectual properties to encourage domestic and international firms patent their new technologies.
    Keywords: Research and Development Investment, Agricultural Research Productivity, Public R&D, Private R&D, International Development, Productivity Analysis,
    Date: 2016
  13. By: Carrillo, B.; Branco, D.
    Abstract: It is now widely recognized that birth endowments can have long-lasting effects on later-life outcomes. An intriguing question is how parents respond to shifts in child endowments. Some of the estimates in literaturemay be affected by small samples and unobservable mother-specific factors, limiting the power of policy implications. We exploit variation within twins to estimate the effect of birth weight on health investments in children. Using data from 68 developing countries, we find that lower birth weight babies receive less health care investments in infancy. These effects are larger for countries with higher infant mortality rates, lower life expectancy,and poorer sanitation facilities. Collectively, the findings suggest that parental behaviors contribute to amplify the baseline effects of birth endowments on long-run outcomes.
    Keywords: twins; birth weight; parental investments;
    JEL: D1 I1 J1
    Date: 2016–05
  14. By: Storm, Hugo; Heckelei, Thomas
    Abstract: A major challenge in the analysis of micro level spatial interaction is to distinguish actual interactions from the effects of spatially correlated omitted variables. We approach this problem by considering a spatially lagged explanatory model (SLX) employing two spatial weighting matrices differentiating between local and regional neighbourhoods. We empirically analyse spatial interaction between individual farms in Norway and additionally perform Monte Carlo simulations exploring the model’s performance under different data settings. Results show that including two spatial weighting matrices can indeed reduce the bias resulting from omitted variables. In the empirical application, it allows identifying different significant interaction effects.
    Keywords: farm growth, spatial competition, spatial interaction, omitted variables, spatially lagged explanatory model, Agricultural and Food Policy, Land Economics/Use, Research Methods/ Statistical Methods, C10, C21, Q12, Q18,
    Date: 2016–05–24
  15. By: Torres, Ariana; Marshall, Maria; Delgado, Michael
    Abstract: This project assesses the effect of social capital, defined as the clustering of Hispanics, on the probability of Hispanic business creation. A big issue in the social capital literature is identification. We use new econometric procedures to try to address this possible endogeneity and draw causal conclusions on the effect of social interactions on individual economic behavior. This essay provide robust empirical evidence on the role of social capital on Hispanic entrepreneurship. We also tackle the constructs of Hispanic heterogeneity and find a potential indicator for the Hispanic entrepreneurial environment.
    Keywords: Hispanic, entrepreneurship, social capital, clustering, endogeneity, instrumental variable, Latino, Community/Rural/Urban Development, Labor and Human Capital,
    Date: 2016
  16. By: DeMaria, Federica (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Franco, Chiara (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Solferino, Nazaria (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)
    Abstract: The paper aims to investigate the relationship among corruption, innovation and trade. We develop a model where a firm producing an innovation may pay some bribes to sell its own products in the domestic or international market. The government official may accept or not the bribes and choose whether or not to be honest, eventually, gaining some illegal beneficial. Firm’s profit may be affected by the costs of innovation and on the cost of corruption. Firm’s ability to sell new products in the foreign market also assumes a strategic role by playing a part in determining the efficient enterprises.
    Keywords: Corruption; Innovation; Export; Institutions
    JEL: D73 F13 O31
    Date: 2015–04–13
  17. By: Cui, Jingbo; Li, Xiaogang
    Keywords: Productivity, Backward Citations, Innovation, Knowledge Stock, Industrial Organization, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, d22, O31,
  18. By: Nuno Boavida (IET/CICS.NOVA, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia, Portugal and ITAS, Karlsruhe Institute of Technology, Germany); António Brandão Moniz (IET/CICS.NOVA, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia, Portugal and ITAS, Karlsruhe Institute of Technology, Germany)
    Abstract: This work aims to describe the latest developments in European countries or regions that lack a structure to develop Parliamentary Technology Assessment activities (named non-PTA). They are countries or regions where parliamentary-oriented technology assessment activities have not yet resulted in a formal structure, but where these activities can be detected to some extent. We will concentrate on activities in Portugal, Wallonia, and other Central and Eastern countries such as the Czech Republic, Hungary, Poland, Lithuania and Bulgaria. Catalonia is mentioned as a specific case where a formal PTA structure exists but the way it is organized and financed is similar to the national and regional experiences at the non-PTA countries. We can conclude that TA institutionalization in non-PTA countries appears to be dependent on the level of public production of knowledge. In fact, the presence or absence of Science & Technology (S&T) issues on the public agenda of these countries and regions affects the need for parliamentary policy advice: in their presence, S&T agenda pushes the need for TA advice by parliamentarians; in their absence, the promotion of innovation tries to keep up with globalization pressures and to generate economic growth, without significant demands for TA advice.
    Keywords: Parliamentary Technology Assessment, Europe, Science & Technology, innovation
    JEL: E61 O33 O38
    Date: 2015–12
  19. By: Sylwia Nadolna (Nicolaus Copernicus University)
    Abstract: The aim of the article is a descriptive approach and present the growing importance of the - talent management concept in enterprises. The discussed issues were to explain the definition, the essence and objectives of talent management and visualize them on the background of the changes caused by globalization. The scientific studies on the subject of human resources management and globalization are used as a main sources of the article. The analysis of the literature and self-analysis of the opportunities and threats arising from the implementation of the concept of talent management are used as a research methods.. These considerations helped to justify the importance of this concept, as well as the legitimacy of its implementation in enterprise, since the chances exceeded the associated risks. In the first part of the article the definition of talent, and talent management are presented. Several different approaches within the meaning of the talent management process are cited, and also the most important of its components are listed. In the second part the essence and the main objectives of talent management are presented. The next part describes shortly an idea, and the essence of the globalization. The last part is devoted to the analysis of opportunities and risks associated with the talent management in the enterprise. It allows to illustrate of both of these factors and to show the value and legitimacy of the talent management concept. implementation.
    Keywords: globalization, talent, talent management, human resources
    JEL: J2 J24 M5 M54
    Date: 2016–05
  20. By: Ernesto M. Pernia (School of Economics, University of the Philippines Diliman); Janine Elora M. Lazatin (School of Economics, University of the Philippines Diliman)
    Abstract: This paper looks into whether and how sub-national regions can benefit from a country’s economic openness. Using data on the Philippines, it first notes marked disparities across its regions as reflected in economic and social indicators. The dominance of Metropolitan Manila in the national economic landscape persists, albeit spread effects into adjacent regions are increasingly apparent. Applying econometric analysis to panel data, the paper then examines how regional economic growth is influenced by economic openness. Results show that regional gains appear to be uneven with the ex-ante lagging regions at a disadvantage; by extension, the welfare effect on the poor appears unequal, as well.
    Keywords: economic openness, regional development; poverty, Philippines, Asia
    JEL: I32 O18 R11
    Date: 2016–02

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