nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒03‒19
fourteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Firm and Regional Factors of Productivity: A Multilevel Analysis of Tunisian Manufacturing By Mohamed Amara; Khaled Thabet
  2. Foreign Rivals are Coming to Town: Responding to the Threat of Foreign Multinational Entry By Cathy Ge Bao; Maggie X. Chen
  4. Determinantes y efectos de la productividad en la industria manufacturera uruguaya (2001 -2009) By Leonel Muinelo-Gallo; Macarena Suanes
  5. Considering the (Un)observed: temporary agency work in productivity estimations By Schiersch, Alexander
  6. Transfer of improved varieties in informal markets and the diffusion of embedded innovation: experimentation with genetic resources in Uganda By Martina Bozzola; Tim Swanson; Helena Ting
  7. Politica industriale e tecnologia in Italia By Lucchese, Matteo; Nascia, Leopoldo; Pianta, Mario
  8. The Internationalisation of Firms and Management Practices: A Survey of Firms in Viet Nam By Isao Kamata; Hitoshi SatoKiyoyasu Tanaka; Kiyoyasu Tanaka
  10. The employment impact of R&D expenditures and capital formation By Mariacristina Piva; Marco Vivarelli
  11. Heterogeneous exporters: quantitative differences and qualitative similarities By Casas, Camila; Diez, Federico J.; Gonzalez, Alejandra
  12. Collective Learning in China's Regional Economic Development By Jian Gao; Bogang Jun; Alex "Sandy" Pentland; Tao Zhou; Cesar A. Hidalgo
  13. Understanding the Dynamics of Household Enterprises in Egypt: Birth, Death, Growth and Transformation By Caroline Krafft
  14. Competitiveness factors of a tourism destination and impact on residents’ quality of life: The case of Cittaslow-Seferihisar By Küçükaltan, Ebru Günlü; Pirnar, Ige

  1. By: Mohamed Amara (University of Tunis); Khaled Thabet
    Abstract: In this paper, we use multilevel models to simultaneously analyze individual, sectoral and regional characteristics that might affect the total factor productivity of Tunisian manufacturing firms for the period 1998-2004. Our results show that the individual characteristics of the firm have an important effect on both total factor productivity and labor productivity. We find that the oldest small firms are more productive than larger firms. Regional context has a significant direct impact on firms’ performance. More specifically, industrial density has a positive influence on total factor productivity. Our results show also that interaction effects or indirect effects are mostly driven by sectoral context. The intra-industrial wage disparities are beneficial only for firms with higher human capital and R&D. The interaction effects also show that larger and older firms will benefit more from industrial agglomeration. We conclude that multilevel models better fit our research questions that combine firm and contextual characteristics simultaneously, because they allow firm-specific characteristics to be differently associated to their regional and sectoral contexts.
    Date: 2016–01–09
  2. By: Cathy Ge Bao (University of International Business and Economics); Maggie X. Chen (George Washington University)
    Abstract: This paper quantiÖes the threat of foreign competition by exploring news of foreign multinational investment appearing in over 35,000 newspapers, business presses, magazines, newswires, and other forms of media in 200 countries. Using unique time-variant firm-specic measures of foreign multinational threat, the analysis shows that domestic firms respond to the threats by upgrading productivity, raising innovation, investment and wage rate, and altering product composition. However, the responses exhibit substantial heterogeneity across firms: within each industry, the right tail of the domestic productivity distribution responds by increasing innovation while the left tail escapes competition threats by dropping products, leading to a U-shape relationship between initial productivity and productivity growth. Actual multinational competition, in contrast, leads to product dropping only. These previously unexplored responses to the threat of foreign competition constitute an economically important source of gains from globalization and convey new implications for the timing, evolvement, and form of industrial, trade and investment policies.
    Keywords: threat, foreign investment news, and domestic Örm responses
    JEL: F1 F2 L2 D2
    Date: 2016
  3. By: Galbreath, Jeremy
    Abstract: Employing resource-based perspectives of the firm as a theoretical foundation, this article empirically examines the relationship between women in two different types of leadership roles and environmentally sustainable firms. I study an unbalanced panel data set of 2,006 wine firms in Australia for the period 2007–2014. The results suggests that when accounting for their individual, independent effects, women in technical leadership roles are positively associated with environmental sustainability, while women in professional leadership roles are not. However, the potential complementarities of women in both roles are explored, their interactive, co-joint (complementary) effect explains significantly more variance in the environmental sustainability variable than their individual effects. The results are discussed along with limitations and directions for future research.
    Keywords: Agribusiness, Production Economics,
    Date: 2017–01
  4. By: Leonel Muinelo-Gallo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Macarena Suanes (UniversitatAutònoma de Barcelona (Spain). Departamentd’Economia Aplicada)
    Abstract: This paper analyzes the relationship between investment in R&D, innovation generation and productivity changes in Uruguayan manufacturing firms during 2001-2009. The production function structural model is sequentially applied to data from the "Survey of innovation activities in enterprises" of Uruguay. The empirical results suggest a positive link between R&D activities and the generation of technological innovations, as well as a positive effect of the latter on firm’s productivity.
    Keywords: innovation, research, productivity, structural production function model
    JEL: O31 D24 J24 O4
    Date: 2017–01
  5. By: Schiersch, Alexander
    Abstract: The study focuses on the question of whether or not productivity estimates are biased due to the emergence of a new input that is usually omitted: temporary agency worker (TAW). The study analyzes labor productivity and TFP by means of a structural approach using a representative dataset of German manufacturing firms. The empirical results show, once TAW is taken into account, that: i) labor productivity in most manufacturing sectors is significantly lower; ii) average TFP differs significantly in most sectors; but iii) the coefficients for regular labor are not significantly different between estimations with and without TAW.
    JEL: D24 J24 L60
    Date: 2016
  6. By: Martina Bozzola; Tim Swanson; Helena Ting
    Abstract: We look at the diffusion of seed technology among Ugandan farmers. We present a target-input model to conceptualize the adoption decisions of a new technology in which the best use of inputs is unknown. In this framework, there is path dependency in the adoption process. We show that the group of innovators is well-defined but too small to overcome the system’s inertia. We find little evidence that seed policy reforms implemented in Uganda in the past 20 years boosted agricultural productivity, largely on account of a lack of local experimentation and inadequate use and diffusion of new seed varieties.
    Keywords: Improved Seed, Seed Policy Reforms, Peer Effects, Uganda.
    JEL: D10 O33 O34 Q12
    Date: 2016–11–17
  7. By: Lucchese, Matteo; Nascia, Leopoldo; Pianta, Mario
    Abstract: Italian Abstract La crisi iniziata nel 2008 ha accelerato il declino dell’industria italiana. Gli strumenti di politica industriale introdotti negli ultimi anni non sono stati in grado finora di sostenere una ripresa della produzione e degli investimenti e di ridurre il gap tecnologico dell’Italia rispetto al resto d’Europa. Una ripresa del sistema produttivo è possibile solo con l’attuazione di un più ambizioso piano di politica industriale in Italia e in Europa. English Abstract After the crisis started in 2008 Italy’s industry has lost close to one quarter of its industrial production. The possibility for the country to reconstruct its production capacity largely depends on whether a new industrial policy is developed. The article documents the decline of Italy’s industry and technology and the impact of the crisis. The demise of traditional industrial policy in Italy and Europe in the last two decades is examined, assessing the consequences of the retreat of public action in this field and the evolution of the current debate. A detailed analysis of the current tools used in Italy’s industrial and innovation policy is carried out, showing its ‘horizontal’ approach, limited resources, fragmented measures, modest impact. Current initiatives appear unable to support a revival of production and domestic private investment, close Italy’s gap in R&D and innovation and upgrade its technological activities. In conclusion, a proposal for a new industrial policy combining Italian and European initiatives is summarised.
    Keywords: Politica industriale, Innovazione, Italia.
    JEL: L5 L6 O3
    Date: 2017–01
  8. By: Isao Kamata; Hitoshi SatoKiyoyasu Tanaka (Institute of Developing Economies Japan External Trade Organization(IDE-JETRO)); Kiyoyasu Tanaka (Institute of Developing Economies Japan External Trade Organization(IDE-JETRO))
    Abstract: This study examines the role of management practices in the internationalisation of domestic firms through directly exporting and/or supplying to local affiliates of multinationals. An original survey of manufacturing firms in Viet Nam was conducted, investigating their management practices such as human resource management and internationalisation status. The survey results shed light on similarities and dissimilarities among firms in several dimensions of management practices. Findings reveal that internationalised firms tended to be more enthusiastic about the formal training of production workers, the modernisation of production and operation, and product and process innovation. Differences in skills and experience requirements for newly employed managers were less recognisable, but internationalised firms tended to have managers who studied overseas. Furthermore, the use of public support to employee training, teamwork in production, and unionisation of employees did not show a significant difference between internationalised and non-internationalised firms.
    Keywords: Management Practices, Firm Heterogeneity, Global Value Chains
    JEL: F23 F61 M11 M50
    Date: 2017–03
  9. By: BEN KHALIFA, Adel
    Abstract: This paper defends the idea that the transition of countries, particularly developing countries, to the knowledge economy depends on the ability of their territories (sub-national levels) to diffuse and appropriate the new ICT paradigm. This paper proposes a framework for modeling the process of diffusion and appropriation of ICTs and suggests an ideal-type model of territory that supports the diffusion and appropriation of ICTs. This model of '' Appropriating Territory '' questioned the resources and the possible actions that will develop any territory to enter the knowledge economy based on ICT. While ICT offer potentials for all spaces, the ways and effectiveness with which territory exploit these potentials vary from one territory to another. We distinguish between ‘‘Appropriating Territories’’ and connected to the archipelago economy (architecture of the knowledge economy) and other non Appropriating and thus disconnected and marginalized.
    Keywords: Knowledge economy, ICT paradigm, Appropriating Territory
    JEL: O33 R11 R12 R58
    Date: 2017–03–14
  10. By: Mariacristina Piva (DISCE, Università Cattolica); Marco Vivarelli (DISCE, Università Cattolica - UNU-MERIT, Maastricht, The Netherlands and IZA, Bonn, Germany)
    Abstract: The aim of this paper is twofold. On the one hand, the economic insights about the employment impact of technological change are disentangled starting from the classical economists to nowadays theoretical and empirical analyses. On the other hand, an empirical test is provided; in particular, longitudinal data - covering manufacturing and service sectors over the 1998-2011 period for 11 European countries - are used to run GMM-SYS and LSDVC estimates. Two are the main results: 1) a significant labour-friendly impact of R&D expenditures (mainly related to product innovation) is found; yet, this positive employment effect appears to be entirely due to the medium-and high-tech sectors, while no effect can be detected in the low-tech industries; 2) capital formation is found to be negatively related to employment; this outcome points to a possible labour-saving effect due to the embodied technological change incorporated in gross investment (mainly related to process innovation).
    Keywords: technological change, employment, sectoral analysis, EU
    JEL: O33
    Date: 2017–01
  11. By: Casas, Camila (Banco de la República (Colombia)); Diez, Federico J. (Federal Reserve Bank of Boston); Gonzalez, Alejandra (Banco de la República (Colombia))
    Abstract: We combine two detailed datasets on Colombian manufacturing firms and document several stylized facts on exporter heterogeneity of total factor productivity (TFP) and export-market orientation, refining some previously known facts and unveiling some new others. We first show that the exporter productivity premium is remarkably robust across the methodologies used to recover TFP. We then document that the most productive exporters are those that export (1) a higher share of their total production, (2) to a larger number of countries, (3) to destinations less frequently reached by other exporters, (4) a larger number of products, and (5) with greater frequency and stability. In contrast, (6) the type of destination country or (7) the type of exported product has no significant effect on exporter productivity differences. These facts are robust to alternative definitions and specifications and can provide useful guidelines for policy makers.
    Keywords: productivity premium; export intensity; export extensive margins
    JEL: D24 F14 L60
    Date: 2017–01–13
  12. By: Jian Gao; Bogang Jun; Alex "Sandy" Pentland; Tao Zhou; Cesar A. Hidalgo
    Abstract: Industrial development is the process by which economies learn how to produce new products and services. But how do economies learn? And who do they learn from? The literature on economic geography and economic development has emphasized two learning channels: inter-industry learning, which involves learning from related industries; and inter-regional learning, which involves learning from neighboring regions. Here we use 25 years of data describing the evolution of China's economy between 1990 and 2015--a period when China multiplied its GDP per capita by a factor of ten--to explore how Chinese provinces diversified their economies. First, we show that the probability that a province will develop a new industry increases with the number of related industries that are already present in that province, a fact that is suggestive of inter-industry learning. Also, we show that the probability that a province will develop an industry increases with the number of neighboring provinces that are developed in that industry, a fact suggestive of inter-regional learning. Moreover, we find that the combination of these two channels exhibit diminishing returns, meaning that the contribution of either of these learning channels is redundant when the other one is present. Finally, we address endogeneity concerns by using the introduction of high-speed rail as an instrument to isolate the effects of inter-regional learning. Our differences-in-differences (DID) analysis reveals that the introduction of high speed-rail increased the industrial similarity of pairs of provinces connected by high-speed rail. Also, industries in provinces that were connected by rail increased their productivity when they were connected by rail to other provinces where that industry was already present. These findings suggest that inter-regional and inter-industry learning played a role in China's great economic expansion.
    Date: 2017–03
  13. By: Caroline Krafft (Department of Economics, St. Catherine University)
    Abstract: Micro and small household enterprises play an enormous role in growth and employment in developing economies such as Egypt. Despite the importance of household enterprises, little is known about the creation, survival, and growth of such enterprises. This paper examines the dynamics of household enterprises, using household panel data from 1998, 2006, and 2012 in Egypt. As well as identifying the patterns of enterprise creation, dissolution, and growth, the paper identifies the individual, household, and enterprise characteristics that contribute to these dynamics. The findings demonstrate that the recent economic downturn in Egypt had a strong negative effect on household enterprise survival as well as employment growth within surviving enterprises.
    Date: 2016–03
  14. By: Küçükaltan, Ebru Günlü; Pirnar, Ige
    Abstract: This research investigates whether tourism development related destination competitiveness have any direct effect on the quality of life of the residents. To reflect the developments in a destination, one of the best known recent trends that stimulates destination competitiveness and directly relates to an increase in the quality of life of the residents, “Cittaslow”, is preferred as a case study. Therefore, the developments in Seferihisar, the first Cittaslow of Turkey, are emphasized based on Enea and Tanasoiu (2009)’s research which proposes the effects of tourism development and quality of life. Qualitative research is adapted where the techniques are prefered as case study and documentation. The originality of the paper results from the construction of the theory on a live sample that captures the practical evidences.
    Keywords: Destination competitiveness, quality of life, competitiveness index, Cittaslow, Seferihisar
    JEL: L83 M1 O1
    Date: 2016–02–17

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