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on Economics of Strategic Management |
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Issue of 2017‒06‒18
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Lodefalk, Magnus (Örebro University School of Business); Kyvik Nordås, Hildegunn (Örebro University School of Business) |
| Abstract: | This paper first portraits Swedish services exporters and services MNEs; second it analyses the determinants of services exports and affiliate sales; and third it studies the choice of mode of entering a foreign market. Emanating from a heterogeneous firm internationalization model, the main contribution of the paper is to explore the interaction between firm characteristics and foreign market characteristics, particularly policy-induced services trade barriers, in shaping services trade and investment patterns. Exploiting a large and very detailed firm-level dataset for the 2008-2013 period, the descriptive analysis finds that most exporting firms export one or two products to a few, most often other Nordic countries. Still, firms that export to 25 or more markets account for more than 80% of total export value. Furthermore, firms that export to 20 countries export more than 60% to their main destination country. Similar patterns are found for affiliate sales. Using a gravity approach we then study the determinants of the extensive and intensive margin of exports and affiliate sales in pooled as well as sector level regressions. We find that trade costs, both natural and policy-induced have the largest impact on the extensive margin of trade, suggesting that trade costs facing services exporters are mainly in the form of fixed entry costs. This is further supported by the finding that incumbency is the most important determinant of future exports and affiliate sales, and incumbents tend to be protected and thrive behind trade barriers. |
| Keywords: | services trade; affiliate sales; trade costs; micro data; Sweden |
| JEL: | D22 F13 |
| Date: | 2017–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2017_004&r=cse |
| By: | Sara Amoroso (European Commission - JRC); Bettina Mueller (Centre for European Economic Research (ZEW)) |
| Abstract: | Existing evidence on the impact of foreign direct investment on domestic economies remains ambiguous. Positive technology spillovers of foreign investment may be outweighed by negative crowding out effect due to increased competition. In this paper, we employ a unique country/sector-level data set to investigate the impact of what is considered the best type of foreign investment greenfield knowledge intensive FDI on domestic entry. Our results suggest that, in the short run, this type of FDI is positively related to the entry rate in the host country, if the domestic sector is either dynamic, or highly R&D intensive. These sectors may be respectively characterized by lower entry costs, which encourage a trial and error learning business approach, and by a higher level of absorptive capacity which increases the chance of technology transfer. |
| Keywords: | foreign direct investments; knowlwdge spillovers; new firm entry |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201702&r=cse |
| By: | Allan Dahl Andersen (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Jochen Markard (Swiss Federal Institute of Technology Zurich (ETH Zurich), Switzerland) |
| Abstract: | It is a classic theme in the transitions literature that newcomers supporting a novel technology struggle for dominance against incumbent actors and ‘their’ established technologies. Our study challenges this picture in several aspects with the intention to improve conceptual frameworks in transition studies. We present a case study on high voltage direct current (HVDC) technology - a mature technology for electricity transmission that has remained in a niche for decades but recently gained new momentum in the course of the energy transition. This case highlights i) incumbent actors as key drivers for innovation, ii) coupled dynamics via interaction of multiple technologies, also across industry boundaries, as a central process in transition dynamics, and iii) the increasingly pervasive nature of the energy transition. We interpret our observations from the perspective of two established frameworks, technological innovation systems and the multi-level perspective, and discuss implications for conceptual refinement. |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20170612&r=cse |
| By: | Lampón, Jesús F.; Cabanelas, Pablo; Frigant, Vincent |
| Abstract: | This paper analyses the key factors for the adoption of the new automobile modular platforms through an eclectic perspective linking the product architecture with the manufacturing network approach. An exploratory analysis of the European production networks of seven automobile manufacturers shows that the benefits of the modular platforms’ adoption depend on two factors: the degree of platform modularity and the manufacturing issues of each carmaker —product portfolio, production volumes and network size. The results indicate that the degree of modularity of the platform chosen should be aligned with the manufacturing issues; otherwise, benefits might not reach expectations |
| Keywords: | Automobile industry; Manufacturing network; Product architecture; Modular platforms; Modularity |
| JEL: | L62 M11 M16 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79160&r=cse |
| By: | Fabio Lamantia; Mario Pezzino |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1708&r=cse |
| By: | Oscar Mauricio Valencia-Arana (Banco de la República de Colombia); Jose Eduardo Gomez-Gonzalez (Banco de la República de Colombia); Andrés Garcia-Suaza (Universidad del Rosario) |
| Abstract: | Can technological misallocation generate financial frictions? We build a theoretical model with testable implications, in which the misallocation between R&D and production activities generates borrowing constraints. The investor offers the innovator a rent that is contingent to the success of its project in order to make them exert an incentive-compatible effort level. However, this rent distorts the allocation of effort between activities. Specifically, it leads to a suboptimal level of effort impulsing a reallocation of resources from production to R&D. Consequently, the investor cannot appropriate the surplus resulting from innovation. This distortion increases the cost of external financing for firms that have large amount of intangible assets. Using Compustat data for manufacturing firms in the United States between 1982 and 2007, we show that cash-flow sensitivities are positive and increasing in firms with high R&D intensities. Classification JEL: G11, 033, D86 |
| Keywords: | Moral Hazard, Endogenous Borrowing Constraints, and Technological Misallocation |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:1004&r=cse |
| By: | Masatoshi Kato (School of Economics, Kwansei Gakuin University) |
| Abstract: | This study explores the role of founders f human capital in determining the external knowledge sourcing (licensing-in and joint R&D) of a firm during the start-up period using panel data drawn from original questionnaire surveys conducted in Japan. The results of a probit model with an endogenous regressor show that firms managed by founders with a high level of specific human capital, measured as prior work experience in a related field or as technological experience, tend to engage in external knowledge sourcing because of their absorptive capacity. The findings indicate that this type of human capital also promotes R&D investment. Contrariwise, this study finds that firms managed by founders with a high level of general human capital, measured as educational attainment, tend to invest more in R&D as an absorptive capacity-building activity, which may promote external knowledge sourcing. The implications of these findings are discussed from the perspective of economic policy. |
| Keywords: | Start-up, Founder, General human capital, Specific human capital, R&D investment, External knowledge sourcing. |
| JEL: | M13 L26 O32 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:162&r=cse |
| By: | van de Vrande, V.J.A. |
| Abstract: | Today’s business environment is characterised by fast and frequent change, which is often difficult to predict. As a consequence, companies need to continuously invest in the development of new business to remain competitive. However, due to the increasing complexity of the environment, internal development is often not enough, and collaborative innovation is becoming more important. There are three areas that warrant our attention. First, interest among employees and organisations to pursue entrepreneurial initiatives raises questions around the management and support that is needed to foster these initiatives and how to best organise internal corporate venturing. Second, the increasing number of start-ups provides opportunities for existing companies to tap into emerging technologies and business areas through corporate – start-up collaboration. Third, the changing nature of work provides an opportunity for existing organisations to rethink the relationship they have with their employees and to find a way to benefit from the increased flexibility of their own and other’s workers. I will raise a number of research questions in these areas and provide directions for future research in the field. |
| Keywords: | Entrepreneurship, Corporate venturing, Corporate venture capital, Collaboration, Innovation, Coworking, Start-ups |
| JEL: | M D21 L20 O31 |
| Date: | 2017–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ems:euriar:100028&r=cse |