nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒09‒10
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Towards a network model of innovation in sport – the case of product innovation in nautical sport clusters By Anna Gerke
  2. Knowledge spillovers and absorptive capacity - institutional evidence from the 'German Mittelstand' By Proeger, Till
  3. Accessibility, absorptive capacity and innovation in European urban areas By Clément Gorin
  4. The Dynamics of Inter-firm Networks and Firm Growth By FUJII Daisuke; SAITO Yukiko; SENGA Tatsuro
  5. Firm Capabilities, Technological Dynamism and Innovation Internationalisation – a Behavioural Approach By Schubert, Torben; Baier, Elisabeth; Rammer, Christian
  6. Strategic planning and city/regional development: Review, analysis, critique and applications for Greece By Gavriilidis, Gaby; Metaxas, Theodore
  7. Creativity under Strong Constraints: the Hidden Influence of Design Models traduction By Armand Hatchuel; Milena Klasing Chen
  8. Measuring Productivity and Absorptive Capacity Evolution in OECD Economies By De Visscher, Stef; Eberhardt, Markus; Everaert, Gerdie
  9. The evolution of coopetitive architecture in the emergence of an ecosystem By Magali Malherbe
  10. Boosting firm dynamism and performance in China By Margit Molnar
  11. Trade and Investment in the Global Economy By James E. Anderson; Mario Larch; Yoto V. Yotov
  12. Leading in the Unknown with Imperfect Knowledge: Situational Creative Leadership Strategies for Ideation Management By Hicham Ezzat; Pascal Le Masson; Benoit Weil

  1. By: Anna Gerke (Audencia Recherche - Audencia Business School)
    Abstract: Sport and sport equipment are permanently subject to innovation. The current research on innovation sources in sport industries has focused on user innovation and firm-internal sources of innovation. This paper uses the network approach to analyze external links as sources of product innovation in nautical sport clusters. It addresses the question: how can sport organizations effectively use interorganizational links for innovation? An empirical study identifies and compares innovation practices in the Auckland sailing cluster in New Zealand with the Victorian surfing cluster in Australia. In total 52 firms, non-profit-organizations, and governing bodies were interviewed. In spite of much existing research focusing on internal firm resources and end users as sources of innovation in the sport sector, interorganizational linkages provide rich sources of innovation for organizations located in clustered sport industries. This research identifies 11 practices that can be imitated by other organizations located in sport clusters or similar settings. Eight practices occur in both clusters while three only occur in one of both. This paper contributes to knowledge on mechanisms for information and knowledge transfer that leverage innovation via interorganizational linkages.
    Keywords: interorganizational links, product innovation, sport clusters, networks, sailing, surfing
    Date: 2017–06–15
  2. By: Proeger, Till
    Abstract: Recent extensions to the knowledge spillover theory of entrepreneurship (KSTE) show that the successful commercialization of new knowledge by incumbents depends on their absorptive capacities. For policy-makers focusing on increasing incumbents' innovative performance, the systematic reduction of knowledge filter through improved absorptive capacities thus becomes a crucial goal. While the general working mechanisms of knowledge filter have been analyzed within the KSTE framework, few institutional solutions to increase absorptive capacities have been put forth. This study provides an initial case study explaining a specific institutional framework fostering the systematic penetration of knowledge filters by incumbent firms in the case of German SMEs. Using a set of 177 in-depth interviews with firm representatives, the system of interrelated organizations, institutional arrangements, shared values and economic incentives associated with the institutional structures for knowledge spillovers for German SMEs are described. I identify institutional characteristics connected to the dual system of vocational training, regulatory measures and economic incentives mutually enforcing and fostering broad knowledge spillovers. This exploratory approach enables deriving hypotheses for the further study of knowledge filters as well as policy implications for the design of institutions increasing incumbents' absorptive capacities.
    Keywords: absorptive capacity,entrepreneurship,knowledge filter,knowledge spillovertheory of entrepreneurship,networks,small and medium enterprises
    JEL: D21 D82 H41 K23 L14
    Date: 2017
  3. By: Clément Gorin (Univ Lyon, UJM Saint-Etenne, GATE L-SE UMR 5824, F-42023 Saint- Etienne, France)
    Abstract: Empirical studies on the geography of innovation have established that skilled workers’ mobility and collaboration networks shape the diffusion of knowledge across firms and regions. At the same time, the literature on absorptive capacity insisted on the importance of local research capabilities to take advantage of knowledge developed elsewhere. This paper inves- tigates both phenomena in an integrated framework by assuming that mobility and networks provide access to knowledge, but the proportion of accessible knowledge effectively used for innovation depends on absorptive capacity. Such complementaries in regional research efforts are effectively captured using a spatial Durbin model in which the connectivity structure stems from mobility and collaboration patterns. Results confirm the relative importance of these two channels in the diffusion of knowledge, and suggests that human capital increases absorptive capacity. These findings have implications for the geography of innovation. While greater accessibility encourages convergence, the notion of absorptive capacity implies a self-reinforcing effect leading to divergence.
    Keywords: Innovation, Mobility, Network, Absorptive capacity, Spatial Durbin model, Urban areas
    JEL: C33 J61 O31 O33
    Date: 2017
  4. By: FUJII Daisuke; SAITO Yukiko; SENGA Tatsuro
    Abstract: Recent empirical evidence has revealed that firm age is one of the key determinants for firm growth, while other literature points out the importance of customer-supplier networks for firm growth. This paper investigates how the inter-firm transaction network evolves over the firm lifecycle and its relationship with firm growth using large-scale firm network data in Japan. Old firms are large in size and well connected compared to young firms. In particular, older firms are connected to other older firms exhibiting positive assortativity of age. Younger firms tend to add and drop links more frequently, and the stability of a transaction link increases with its duration of active relationships, implying gradual learning of link-specific productivity over time. Moreover, firm's sales growth is positively related with the expansion of transaction partners in various measures, conditional on firm age. This suggests that the observed relationship between firm age and firm growth may be due to the lifecycle pattern of building inter-firm networks.
    Date: 2017–08
  5. By: Schubert, Torben (CIRCLE, Lund University); Baier, Elisabeth (HWTK, Baden-Baden); Rammer, Christian (ZEW, Mannheim)
    Abstract: We develop a behavioural framework of bounded rational decision-making under uncertainty by which we analyse the effect of technological dynamism in the firm’s environment on its decisions to internationalise innovation. Arguing that the firm’s technological performance lev-el affects its risk-preferences, a key-prediction is that firms with low technological compe-tences will internationalise innovation when faced by technological uncertainty while firms with high competences will withdraw from international innovation. A fully rational absorptive-capacity framework would predict the opposite relationship because it ignores the role of dif-ferential risk-preferences. We test our framework using data from the German Community Innovation Survey (CIS).
    Keywords: innovation internationalisation; speed of technological change; bounded rationality; prospect theory; uncertainty; technological capabilities
    JEL: F21 F23 L22 O32
    Date: 2017–09–01
  6. By: Gavriilidis, Gaby; Metaxas, Theodore
    Abstract: The aim of this paper was to analyze the impact of Strategic Planning (SP) in city/regional development, as well as to identify which strategies, in the context of planning, can be used for achieving local economic development. For that purpose, a review of the relevant literature was conducted. In the analyzed papers, different regions were used as case studies. Additionally, eight areas were identified in which SP was successfully implemented, namely: City/urban development, Tourism, Transportation, Health Care, Education, Energy, Land use and Housing, and Local Governance, revealing the wide applicability of strategic planning in regional development. Several key policies in the context of planning which lead to regional development were identified for each domain. The results indicated that there is a positive association between strategic planning and regional development. More specifically, it was found that strategic planning contributed to the economic development of the examined regions, indicating that it is an efficient tool which can be used by local authorities for enhancing the performance of their regions. The findings are expected to help local actors and urban planners to obtain a more comprehensive view of the advantages, effectiveness and limitations of strategic planning, as well as to identify which strategies mentioned in the academic literature, and were applied in other countries, can be used for achieving local economic development outcomes in Greek regions.
    Keywords: Strategic Planning, Regional Development, City Development, Greece.
    JEL: R58
    Date: 2017–06
  7. By: Armand Hatchuel (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Milena Klasing Chen (SNCF, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In engineering design, constraints can stimulate creativity but are also often cited as obstacles to innovation. So do constraints hinder or foster creativity? Despite a number of studies, the reason why constraints can have a positive or a negative impact on creativity is still unknown. In this paper, we will propose, theoretically and empirically, that the link between creativity and constraints is not determined by the type of constraints, but by the type of 'design model' used. Using C-K theory, a well-documented, general, and formalized theory of design, we first prove that the dual impact of constraints on creativity is predictable. Then we use C-K operators to distinguish two different design models: rule-based design and innovative design. We show that the first model organizes a negative link between constraints and creativity while the second model enables a positive effect. We illustrate these mechanisms through the analysis of several product developments based on both secondary and primary sources.
    Keywords: C-K, innovation, creativity ,design theory, constraints
    Date: 2017
  8. By: De Visscher, Stef; Eberhardt, Markus; Everaert, Gerdie
    Abstract: We develop a new way to estimate cross-country production functions which allows us to parametrize unobserved non-factor inputs (total factor productivity) as a global technology process combined with country-specific time-varying absorptive capacity. The advantage of our approach is that we do not need to adopt proxies for absorptive capacity such as investments in research and development (R&D) or human capital, or specify explicit channels through which global technology can transfer to individual countries, such as trade, FDI or migration: we provide an endogenously-created index for relative absorptive capacity which is easy to interpret and encompasses potential proxies and channels. Our implementation adopts an unobserved component model and uses a Bayesian Markov Chain Monte Carlo (MCMC) algorithm to obtain posterior estimates for all model parameters. This contribution to empirical methodology allows researchers to employ widely-available data for factor inputs (capital, labor) and GDP or value-added in order to arrive at policy-relevant insights for industrial and innovation policy. Applying our methodology to a panel of 31 advanced economies we chart the dynamic evolution of global TFP and country-specific absorptive capacity and then demonstrate the close relationship between our estimates and salient indicators of growth-enhancing economic policy.
    Keywords: absorptive capacity; common factor model; MCMC; time-varying parameters; total factor productivity; unobserved component model
    JEL: C21 C23 F43 O33
    Date: 2017–08
  9. By: Magali Malherbe (Institut d'Administration des Entreprises (IAE) - Caen)
    Abstract: This article aims to understand the dynamic of the three types of coopetition (horizontal, vertical, and diagonal) in the emergence of a business ecosystem that is not initiated by a single leading firm. By combining literature on coopetition with literature on business ecosystem, we define a conceptual framework around three types of inter-organizational conflicts: role conflicts, value-related conflicts, and resource conflicts. We produce a processual analysis based on a single case study and nurtured with different sources of data: interviews, direct observation, and archival data. We study the emergence of mobile contactless services that have initiating a new business ecosystem through the convergence of several industries: mobile phone industry, financial, transportation and other services industries, and Internet industry. The study of the emergence of mobile contactless services has led to the determination of the most critical types of coopetition in this process and their impact on the coopetitive architecture (i.e. the mutual dependencies between actors and their specified roles) of the business ecosystem. In this dynamic, the resolution of role conflicts is particularly determinant as they may hamper the benefits of coopetition. Finally, we identify mechanisms that sustain or change the coopetitive architecture.
    Keywords: ecosystem, coopetition, conflicts, NFC
    Date: 2016–06
  10. By: Margit Molnar
    Abstract: With persisting slower growth worldwide and in China, over-capacity in some heavy industry sectors, declining profitability, and intensifying competition from other, lower-cost emerging economies, corporate behaviour in China needs to change and focus more on efficiency and sustainability. This need is further intensified by mounting environmental pressures and China’s ambition for greener and more sustainable growth. A larger proportion of firms, including state-owned enterprises, should step up innovation efforts and improve corporate governance practices. To this end, supportive policies are needed, fostering an environment that is more conducive to innovation and entrepreneurship, and facilitating resource reallocation through the exit of unviable firms. At the same time, fraudulent corporate practices must be halted and State assets need to be better managed. Reforms are under way or envisaged that will help improve corporate performance and, more broadly, deliver more resilient and environmentally sustainable growth and continuing progress in living standards. This Working Paper relates to the 2017 OECD Economic Survey of China ( y-china.htm).
    Keywords: bankruptcy, business environment, corporate debt, corporate governance, entrepreneurship, industrial policy, Innovation, intellectual property rights, overcapacity, research and development, state-owned entreprise reform, zombie firms
    JEL: G34 G38 L26 L52 O3 P31
    Date: 2017–09–11
  11. By: James E. Anderson; Mario Larch; Yoto V. Yotov
    Abstract: We develop a dynamic multi-country trade model with foreign direct investment (FDI) in the form of non-rival technology capital. The model nests structural gravity sub-systems for FDI and trade, with accumulation/decumulation of phyisical and technology capital in transition to the steady state. The empirical importance of the FDI channel is demonstrated comparing actual aggregate cross-section data for 89 countries in 2011 to a hypothetical world without FDI. The gains from FDI amount to 9\% of world's welfare and to 11% of world's trade, unevenly distributed among winners and losers. Net exports of FDI substitute for export trade in the results.
    JEL: F10 F43
    Date: 2017–08
  12. By: Hicham Ezzat (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In a fast-changing world, constantly innovating remains one of the principal challenges most organizations are facing nowadays. Survival of organizations became principally linked to the creative generation capacity of their staffs. Nonetheless, fixation imposes a key constraint to the aptitude of individuals to constantly come up with innovative ideas. Numerous studies have highlighted the significant role that could be played by leadership in this regard. Nevertheless, most of these works studied leadership's role from a social perspective, reducing the function of creative leaders as facilitators. From a more cognitive perspective, very few works have shed the light on the role of creative leaders during ideation processes. However, very recent studies showed that leaders could efficiently play the role of de-fixators, by preparing carefully their interventions (instructions, feedbacks, etc.) within the ideation process, according to their capacity to recognize the frontier between fixation and de-fixation of a project. In the present paper, we have furthered these findings, by exploring the effect of feedbacks, in specific cases in which leaders lead their teams in the unknown with imperfect knowledge. Based on varying levels of knowledge (leaders' ability to recognize if a particular idea generated by his team is inside or outside fixation), we implemented a theoretical model for ideation management using design and probability theories. Using a theory-driven experimental procedure, we showed in this paper that leadership strategies for ideation management should adopt less generic and universal tactics (such as brainstorming rules for example), but rather more situational approaches depending on followers' capacity to think out of the dominant design. 2
    Keywords: leadership, creativity, ideation, fixation, contingency,Feedback
    Date: 2017–06–11

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