nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒10‒08
eleven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. "Environmental Uncertainty and Market Orientation on Business Performance with Innovation as an Intervening Variable: A Survey of Banking Industry in Indonesia" By Setyani Dwi Lestari
  2. "Determinant Factors of Trade Industry Performance in Indonesia: AHP Approach" By Malik Cahyadin
  3. Building Knowledge Economies in Africa: A Survey of Policies and Strategies By Asongu, Simplice; Nwachukwu, Jacinta
  4. The Externalities of Corruption: Evidence from Entrepreneurial Activity in China By Giannetti, Mariassunta; Liao, Guanmin; You, Jiaxing; Yu, Xiaoyun
  5. Imports and Intellectual Property Rights on Innovation in China By Chu, Angus C.; Shen, Guobing; Zhang, Xun
  6. "Experimental Research: BASO Model-Based Strategic Planning Training Mediated by Training Follow up Sessions and Moderated by Transformational Leadership Impact on Mosque Organizational Effectiveness" By Syed Jamal Abdul Nasir Syed Mohamad
  7. "Innovation Capability and Customer Relationship Management in Building Competent Young Entrepreneurs" By Intan Widuri Sakti
  8. The Competitiveness Creation Strategy of Islamic Banking By Laila Refiana Said
  9. The Effect of Competition Law on Brunei’s Small and Medium Enterprises By Michael, Bryane
  10. The human capital and development. The Romanian case study By Elena Pelinescu
  11. "The Relationship Between Strategic Management, Employee Engagement on Customer Satisfaction and Customer Loyalty (Newest Empirical Approach 2013-2015): A Conceptual Model " By "Sudjatno "

  1. By: Setyani Dwi Lestari (Budi Luhur University, Indonesia)
    Abstract: "Objective – This causal research is aimed at obtaining information related to the effect of uncertainty environment, market orientation, and innovation in direct and indirect effect on the business performance in a holistic co-alignment perspective. Methodology – In this research, 90 samples were randomly selected and the data were analysed by path analysis after all variables were put into the correlation matrix. Findings –The results showed that: (1) environment uncertainty has a significant direct effect of the innovation; (2) environment uncertainty has a significant direct effect on the business performance; (3) market orientation has a significant direct effect on the innovation; (4) market orientation doesn’t have a significant direct effect on business performance; (5) innovation has a significant direct effect on the business performance; (6) environment uncertainty has a significant indirect effect on the business performance but through the innovation; and (7) market orientation has a significant indirect effect on the business performance but through the innovation. Novelty – Based on those findings, it could be concluded that any change or variation in the business performance was affected by environment uncertainty, market orientation, and innovation. Therefore, to improve variation in the business performance, environment uncertainty, market orientation, and innovation should be put into strategic planning in the banking industry in Indonesia. However, other variables are necessary to be taken into account in the next research."
    Keywords: Environmental Uncertainty; Market Orientation; Business Performance; Innovation.
    JEL: G21 L15 M31
    Date: 2017–04–24
  2. By: Malik Cahyadin (Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia Author-2-Name: Sutomo Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia Author-3-Name: Lely Ratwianingsih Author-3-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia)
    Abstract: "Objective – This research analyses determinant factors and priority factors of trade industry performance based on 15 industries in Indonesia. Today, trade industry tends to develop well in Indonesia. It covers exporters, importers, modern markets (hypermarket and minimarket), and traditional markets. Methodology/Technique – This research uses Analytic Hierarchy Process (AHP) to analyse primary data on factors of trade industry performance. Findings – Research results indicate that there are seven factors on trade industry performance. These are NF (AHP score: 0.37), ICT (0.19), BIT (0.10), BR (0.10), BP (0.09), DC (0.08), and BE (0.07). It means that number of firm becomes the first factor while business efficiency becomes the last factor that drives business performance. Novelty – This finding can be used by trade industry associations and policy makers to manage and regulate firms involved in commerce. In addition, governments can support ICT development to improve trade industry performance."
    Keywords: Determinant Factor; Trade Industry; Business Performance; AHP.
    JEL: L11 L25
    Date: 2017–04–06
  3. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: Compared to other regions of the world, Africa is lagging in its drive toward knowledge-based economies. This study surveys the literature in order to highlight the policies and strategies with which African countries can accelerate their current drive towards knowledge economies. These are discussed in terms of the four pillars of the World Bank’s knowledge economy framework. They are the indices for: (i) education and skilled population, (ii) information and communication technology, (iii) economic incentives and institutional regime and (iv) innovation systems.
    Keywords: Knowledge economy; Development; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2017–06
  4. By: Giannetti, Mariassunta; Liao, Guanmin; You, Jiaxing; Yu, Xiaoyun
    Abstract: We show that corruption affects negatively the performance of small entrepreneurial firms, which compete with corrupted industry peers. We exploit the Chinese anti-corruption campaign to establish causality and identify the channels through which corruption causes negative externalities. Small firms have lower sales growth in industries with high corruption, arguably because demand is diverted to the largest firms in their industries, which spend more in corrupting officials. Small firms also have higher financing costs in industries with high corruption and therefore invest less. Furthermore, corruption decreases the efficiency of labor and capital allocation and deters firm entry.
    Keywords: capital and labor allocation; China; corporate governance; Corruption
    JEL: D22 D62 G30 L20 O12 P26
    Date: 2017–10
  5. By: Chu, Angus C.; Shen, Guobing; Zhang, Xun
    Abstract: In an open-economy R&D-based growth model with two intermediate production sectors, we find that strengthening intellectual property rights (IPR) has a positive effect on innovation in the sector that uses domestic inputs but both positive and negative effects on innovation in the sector that uses foreign inputs. We test these results using an empirical analysis of matching samples that combine Chinese provincial IPR data with industrial enterprises database and customs database.
    Keywords: Intellectual property rights; imports; knowledge spillovers; innovation
    JEL: F43 O31 O34
    Date: 2017–09
  6. By: Syed Jamal Abdul Nasir Syed Mohamad (Faculty of Business and Management, Universiti Teknologi MARA, Malaysia. Author-2-Name: Roshidi Hassan Author-2-Workplace-Name: Faculty of Business and Management, Universiti Teknologi MARA, Malaysia. Author-3-Name: "Mohamed Zakaria Mohamed Yahya" Author-3-Workplace-Name: Faculty of Business and Management, Universiti Teknologi MARA, Malaysia.)
    Abstract: "Objective – The objective of this quasi-experimental study is to examine the impact of BASO Model-Based Strategic Planning Training (as the independent variable) and Training Follow up Sessions (as the mediating variable) towards Rural Community Mosque organizational performance. This research also examines the effect of transformational leadership as a moderating factor towards mosque organizational effectiveness. Methodology/Technique – This study uses BASO Model-Based Strategic Planning Training and is supported by Follow up Sessions. The study shows that mosque leaders can produce a comprehensive BASO model-based document outlining the strategic intentions for all four sample mosques. The present study also gathered results six months after the initial test, on the execution of the sample mosques’ short-term action plans. Findings – The empirical data demonstrates a significant contribution of technical consultancy, peer review meetings and management support as mediating factors towards mosque organisational effectiveness. Therefore, BASO model-based strategic planning training is supported by the training follow up sessions. Novelty – This method is considered useful for implementation in Rural Mosques, within the context of FELDA, Malaysia and globally. "
    Keywords: Organisational Effectiveness, Strategic Planning Training, Training Follow Up, Transformational Leadership.
    Date: 2017–06–08
  7. By: Intan Widuri Sakti (Universitas Widyatama, Indonesia Author-2-Name: Gallang Perdana Dalimunthe Author-2-Workplace-Name: Universitas Pendidikan Indonesia)
    Abstract: "Objective – The study aims to learn effect of Innovation Capability and Customer Relationship Management on young entrepreneur’s competency. Methodology/Technique – Questionnaire used for the data collection in this study. The sampling method is probability sampling with simple random sampling technique. The population is all the Marketing students’ year 2012, and the calculated sampling is 100 respondents Findings – From the analysis and explanation using SEM, it is found that Innovation Capability and CRM have a big influence towards young entrepreneurs. Those variables also stimulate them to sharpen their business intuition. Novelty – The study proves importance of Innovation Capability and CRM on development of entrepreneurs."
    Keywords: Innovation Capability; CRM; Young Entrepreneurs; Structural Equation Modelling; SEM.
    JEL: L26 O32
    Date: 2017–03–20
  8. By: Laila Refiana Said (Universitas Lambung Mangkurat, Kalsel, Indonesia Author-2-Name: Siti Aliyati Albushairi Author-2-Workplace-Name: Universitas Lambung Mangkurat, Kalsel, Indonesia Author-3-Name: Gusti Rina Fariany Author-3-Workplace-Name: Universitas Lambung Mangkurat, Kalsel, Indonesia)
    Abstract: "Objective – The development of Islamic banks in Indonesia requires a new strategy. The size of the population of Indonesia is a potential market for Islamic banks to target religious and non-religious customers and implement quality innovation to create value-based services to support the competitiveness of regional economies. This may improve the standard and quality of living. Specifically, this study investigated the influence of Islamic banking service quality dimensions to consumer satisfaction, word-of-mouth communication and loyalty. Methodology/Technique – This study was conducted in Banjarmasin, South Kalimantan, which is an Indonesian province that has a fairly a rapid rate of development of Islamic banking. The study focused on 191 people. Data collection was done by observation and interviews using questionnaires. Findings – Using Partial Least Squares, the results demonstrates the effects of variable compliance, empathy, and value proposition quality on overall satisfaction. This showed that overall satisfaction influences word-of-mouth communication and loyalty. This indicates that both the religious market consumers and the floating market consumers desire the establishment of a strong emotional bond between the Islamic bank, customers and shareholders that are developed together in the face of business risks and share profits fairly and honestly, in accordance with the principles of Islamic law. Furthermore, they want employees to be more empathetic and respond individually to customers. Novelty – The study suggest that a strategy be created in relation to competitiveness in Islamic banking in Banjarmasin to improve the quality of service-based value, and to increase the cultivation of religious customers as well as penetrating the floating market segment."
    Keywords: Carter-Item; Floating-Based Market; Islamic Bank; Religious-Based Market; Servqual.
    JEL: G21 M21 M31
    Date: 2017–04–27
  9. By: Michael, Bryane
    Abstract: Brunei must enact an effective competition policy in order to participate as a member in regional trading blocs like the APEC, ASEAN and the Trans-Pacific Partnership. What effect would Brunei’s Competition Order have on Brunei – and specifically its small and medium enterprises or SMEs (the motor of non-petrol led growth)? We develop an indication of the scope of competition policy – and use that indicator in cross-country analysis to figure out competition’s effect on Brunei’s SMEs. Using back-of-the-envelope calculation methods, increasing competition under the status quo would likely cost Brunei US$100 million. Yet, if serious innovation policy tags along with Brunei’s expanding competition policy, Brunei’s SMEs could experience a $10 billion jump in GDP. Without policies to boost the effectiveness of the US$1.5 billion in Wawasan innovation spending, increased competition could harm Brunei’s SMEs. We identify the lack of Competition Commission independence and information dissemination.
    Keywords: antitrust,Brunei,competition policy,Competition Order
    JEL: K21 L44
    Date: 2017
  10. By: Elena Pelinescu (Institute for Economic Forecasting, Romanian Academy)
    Abstract: The human capital is the main driver of development and economic growth. This paper is focused on human capital and tries to show how the human capital, as an important economic factor contributes to the growth of the economy. Romer (1969) identified a positive relation between the initial level of literacy and its rate of growth and the increase of income per capita. Benhabib, and Spiegel (1994) showed that the growth rate of total factor productivity depends on the human capital stock level. Wilson and Briscoe (2004) in a literature review of relation between human capital and economic performance at macroeconomic level highlighted that the increases in economic growth across the EU are associated with increases in both education and training. This paper is focused on the relation between human capital and development in Romania and uses econometric techniques to highlight the role of human capital in increasing the country’s wealth.
    Keywords: human capital, development, inovation
    JEL: E24 J24 O15 O31
    Date: 2017–09
  11. By: "Sudjatno " (Faculty of Economics and Business, Universitas Brawijaya, Indonesia)
    Abstract: "Objective – Customer satisfaction is the main goal of every company’s strategy for maintaining its global/local business. However, achieving Customer Satisfaction needs strategic management commitment which is related to how the shareholders and executives plan their business investment in employee engagement. The purpose of this study is to reveal the collaboration of the strategic management and employee engagement for achieving customer satisfaction. Methodology/Technique – The study employs the analytical method (literature study) to analyse data gained from literature review Findings – The relationship between strategic management, employee engagement and customer satisfaction is revealed. It is also noted that customer dimension, in the newest context, is goods or service value plus value added from positive emotion, expectation, switching cost. Novelty – This study explores employee engagement and customer satisfaction from the newest literature review combined with four strategic management’s newest book literature. "
    Keywords: Strategic Management, Employee Engagement, Customer Satisfaction
    JEL: M10 M12 M31
    Date: 2016–12–23

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