nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2017‒10‒29
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. ICT Use, Connectivity, and Innovation Capability in Japanese SMEs By Shigeno, Hidenori; Tsuji, Masatsugu; Matsuzaki, Taisuke; Shinohara, Sobee
  2. A preliminary analysis of mergers and acquisitions by Microsoft from 1992 to 2016: A resource and competence perspective By Lopez Giron, Ali Jose; Vialle, Pierre
  3. The Demography of Enterprises and Employment in the European Union Countries By Rafik Abdesselam; Jean Bonnet; Patricia Renou-Maissant
  4. Technological catching-up, sales dynamics and employment growth: evidence from China's manufacturing firms By Giovanni Dosi; Xiaodan Yu
  5. Ambidextrous Learning in Innovation-Active Companies of BRIC: Convergence or Divergence Trends? By Alsufyev, Artem I.; Zavyalova, Elena K.
  6. Welfare effects of R&D support policies By Takalo, Tuomas; Tanayama, Tanja
  7. Do Bank Shocks Hamper Firms’ Innovation? By Mariana Spatareanu; Vlad Manole; Ali Kabiri
  8. BIG SCIENCE, LEARNING AND INNOVATION: EVIDENCE FROM CERN PROCUREMENT By Anna Giunta; Massimo Florio; Francesco Giffoni; Emanuela Sirtori
  9. Technology, Market Structure and the Gains from Trade By Impullitti, Giammario; Licandro, Omar; Rendahl, Pontus
  10. Spillover from the Haven: Cross-border Externalities of Patent Box Regimes within Multinational Firms By Schwab, Thomas; Todtenhaupt, Maximilian
  11. Gender, Access to Finance, Occupational Choice, and Business Performance By Nelli S. Gazanchyan; Nigar Hashimzade; Yulia Rodionova; Natalia Vershinina
  12. Motivations to Start Businesses: Institutional Context By Aleksandrova, Ekaterina A.; Verkhovskaya, Olga R.

  1. By: Shigeno, Hidenori; Tsuji, Masatsugu; Matsuzaki, Taisuke; Shinohara, Sobee
    Abstract: This paper seeks to construct a new theory on SME innovation by reviewing and comprehending findings and knowledge obtained to date from a unified perspective. Conventional research on innovation in general has focused thematically on individual factors such as absorptive capability, R&D, and open innovation. While this approach has its advantages, it is critical to research innovation as a single process from a broad perspective and framework. This analyzes how SMEs acquire new information and ideas that are the source of innovation, organize and conduct R&D to integrate these ideas with management resources within the frim, and finally, how they produce the concrete output of these steps that lead to the development of new products. Our research especially seeks to answer what elements are needed in this process, and how they should be combined. In addition, this paper focuses on internal innovation capability which includes factors such as technologies that the company own, human resources (human factor), managerial organizational form (organization), leadership, and so on. These factors also consist of detailed sub-factors. The examples of the third layer contain as the following factors, for example. The technological factor includes the following factors: (a) ratio of R&D expenditure to sales; (b) the number of intellectual property right owned; and (c) technical and management systems such as R&D. (ii) Managerial organization indicates whether the managerial organization is designed and functioning to encourage exchange and share information among employees or communications inside the firm for innovation. This consists of the following sub-factors: (d) practicing QC circle; (e) cross-functional team; (f) information sharing system using ICT; and (g) the traditional background to stimulate discussions and communications among sections of the firms. Finally, the human resources is an important factor for engaging in innovation activities as well as for design and managing R&D, which consist of the following sub-factors: (h) ability of top management such as degrees or experiences; (i) leadership of top management; (j) degrees and experiences of employees; and (k) the Human Resource Development scheme (HRD) such as OJT (On-the-job training) or OFFJT (Off-the-job training). This paper particularly focuses on factors such as technology, R&D, and ICT use.
    Keywords: External linkages,SEM,causality,open innovation
    Date: 2017
  2. By: Lopez Giron, Ali Jose; Vialle, Pierre
    Abstract: Merger and acquisitions (M&A) have been a frequently used growth mode in the ICT Industry during the last two decades. They did so for several reasons, such as expanding the scale and scope of their business or acquire new capabilities Microsoft is highly representative of those ICT firms who have intensively relied on M&A for growth. Microsoft since its foundation has acquired around 200 companies; in average 6 companies per year and has targeted different sectors of the ICT business. Up to the authors’ knowledge, no exhaustive analysis of the acquisitions made by Microsoft over a long period has been made, in particular with a focus on Resources and Competence. In this paper, we aim at identifying the patterns behind the acquisition of numerous companies made by Microsoft since 1992, in terms of end-product, type of business, core product, resource and competences. We put a particular emphasis on the resource and competence acquired through these deals. By document research, we have been able to collect relevant information on 178 acquisitions between 1992 and 2016. In this paper, we present the methodology we have followed and some preliminary results. We conclude by discussing possible research extensions based on the current research.
    Keywords: Merger and acquisitions,resource and competence,strategy,Microsoft
    Date: 2017
  3. By: Rafik Abdesselam (Université de Lyon, Lumière Lyon 2, COACTIS, France); Jean Bonnet (Normandie University, UNICAEN, CREM UMR CNRS 6211, France); Patricia Renou-Maissant (Normandie University, UNICAEN, CREM UMR CNRS 6211, France)
    Abstract: The aim of this contribution is to establish a typology of European entrepreneurship countries with respect to variables related to entrepreneurial activity and economic development. Using a combined use of multidimensional data analyses allows to extend the concept of “entrepreneurial regimes” proposed by Audretsch and Fritsch (2002) and leads to distinguish five entrepreneurial regimes. Moreover, in order to better characterize classes, a wide set of illustrative variables representative of national economic development, labour market functioning, formal and unformal institutional environment as well as variables specific to the entrepreneurial population are considered. Finally, discriminant analyzes show that the five explanatory themes that are considered (Innovation, Employment, Formal Institutions, Entrepreneurship and Governance) differentiate the classes and significantly explain the diversity of entrepreneurial regimes. These findings have important implications for the implementation of public policy in order to promote entrepreneurial activity and reduce unemployment.
    Keywords: Entrepreneurship, Cluster analysis, Discriminant analysis, Entrepreneurial regimes
    JEL: L26 C38 O1
    Date: 2017–10
  4. By: Giovanni Dosi; Xiaodan Yu
    Abstract: This paper investigates the microeconomics of employment dynamics, using a Chinese manufacturing firm-level dataset over the period 1998-2007. It does so in the light of a scheme of "circular and cumulative causation", whereby firms' heterogeneous productivity gains and sales dynamics, and innovation activities ultimately shape the patterns of employment dynamics. Using firm's productivity growth as a proxy for process innovation, our results show that the latter correlates negatively with firm-level employment growth. Conversely, relative productivity levels, as such a general proxy for the broad technological advantages/disadvantages of each firm, do show positive effect on employment growth in the long-run through replicator-type dynamics. Moreover, firm-level demand dynamics play a significant role in driving employment growth, which more than compensate the labour-saving effect due to technological progress. Finally, and somewhat puzzlingly, the direct effects of product innovation and patenting activities on employment growth appear to be negligible.
    Keywords: Employment Growth, Demand, Product Innovation, Process Innovation, Export, China catching-up
    Date: 2017–10–24
  5. By: Alsufyev, Artem I.; Zavyalova, Elena K.
    Abstract: The purpose of the study is to identify the specific characteristics of HRM practices aimed at ambidextrous learning in innovation-active companies of the BRIC countries. The study for the first time compares the ambidextrous learning practices and their trends for convergence in BRICs. The methodology involves descriptive analysis of HRM practices in 200 innovation active companies of BRICs. Results of the study indicate that there are considerable convergence trends within innovation-active companies of BRIC. All countries in general are oriented on knowledge exploitation with their use of specific HRM practices. There are however significant differences within BRIC countries with regard to knowledge exploration.(pp. 7-9)
    Keywords: ambidextrous learning, personnel training, personnel development, comparative analysis, BRIC,
    Date: 2016
  6. By: Takalo, Tuomas; Tanayama, Tanja
    Abstract: We conduct a welfare analysis of R&D subsidies and tax credits using a model of innovation policy in corporating externalities, limited R&D participation and finanial market imperfetions. We estimate the model using R&D projet level data from Finland. The optimal R&D tax credit rate (0.24) is lower than the average R&D subsidy rate (0.36). The intensive, not the extensive margin of R&D is important for poliy. Tax credits and subsidies inrease R&D investments and spillovers compared to laissez-faire but to levels below the first best. R&D support policies don't improve welfare.
    JEL: O38 O31 L53 C31
    Date: 2017–10–16
  7. By: Mariana Spatareanu; Vlad Manole; Ali Kabiri
    Abstract: Using a unique matched bank-firm-innovation data for the UK, this paper finds that bank shocks negatively affected firms’ innovations during the recent crises. After carefully controlling for several potential biases in estimation we find that firms whose relationship banks were distressed patented less, and those patents were of lower technological value, less original and of lower quality. The impact is larger in the case of small and medium enterprises (SMEs). We also show that banks’ specialization in financing innovation mitigates the impact of bank distress on firms’ innovation. The results highlight the significantly negative impact of distress in the banking sector on firm’s innovation and potential future economic growth.
    Keywords: innovation, bank distress, crisis, UK
    JEL: G21 G34 O16 O30
    Date: 2017–09
  8. By: Anna Giunta; Massimo Florio; Francesco Giffoni; Emanuela Sirtori
    Abstract: We study the way in which public procurement by big research infrastructures enhances suppliers’ performance. Using survey data on 669 CERN suppliers, we built a unique data set to analyse, through an ordered logit model and Bayesian networks, the determinants of suppliers’ sales, profits and development activities. We find that collaborative relations between CERN and its suppliers improve suppliers’ performance and increase positive spill overs along the supply chain. This suggests that public procurement for innovation policies should promote cooperative relations and not only market mechanisms.
    Keywords: Big Science, Public Procurement, CERN, Suppliers
    JEL: O31 O33 O38 C11
    Date: 2017–10
  9. By: Impullitti, Giammario; Licandro, Omar; Rendahl, Pontus
    Abstract: We study the gains from trade in an economy with oligopolistic competition, firm heterogeneity, and innovation. Oligopolistic competition together with free entry make markups responsive to firm productivity and trade costs. Lowering trade costs reduces markups on domestic sales but increases markups on export sales, as firms do not pass the entire reduction in trade costs onto foreign consumers. Nevertheless, the downward pressure dominates and the average markup declines, deterring firms from entering the market and leading to higher market concentration. Neither the increased concentration nor the incomplete pass-through of trade costs to export markups are strong enough to compensate for the increase in competition on domestic sales. Thus the overall effect of trade on markups is pro competitive and a key source of the associated welfare gains. In addition to markups, selection and innovation provide additional channels through which the trade-induced effect on competition impacts welfare. In a quantitative exercise, we decompose the total gains from trade into these three contributing channels; we find that innovation plays a small but non-negligible role, while the main component is equally split between the pro-competitive and the selection channel.
    Keywords: Endogenous Market Structure; Endogenous Markups; Gains from trade; Heterogeneous Firms; Innovation; oligopoly
    JEL: F12 F13 O31 O41
    Date: 2017–10
  10. By: Schwab, Thomas; Todtenhaupt, Maximilian
    Abstract: We analyze cross-border externalities of patent box regimes. Tax cuts in one location of a MNE reduce the user cost of capital for the whole group if they have no nexus requirement. This spillover effect of foreign tax cuts raises domestic R&D activity. The implementation of a patent box in an affiliate country of a MNE, increases domestic R&D by about 1% per implied tax rate differential. Furthermore, patent boxes generate negative spillovers on average patent quality.
    JEL: H23
    Date: 2017
  11. By: Nelli S. Gazanchyan; Nigar Hashimzade; Yulia Rodionova; Natalia Vershinina
    Abstract: We present a theoretical and empirical analysis of the links between the gender of an entrepreneur, access to finance, occupational choice, and business performance. Our theoretical model predicts that, when lenders discriminate against women entrepreneurs, the average entrepreneurial skill of women who become entrepreneurs or enter paid employment as managers is higher than that of their men counterparts. This suggests that the firms owned or managed by women should perform better than the firms owned or managed by men, ceteris paribus. We find empirical support for the assumptions and the predictions of our model using firm-level data for 28 emerging economies in Europe and Asia; the effect is especially strong in the small and medium enterprises, possibly, because in large firms borrowing is a less essential source of finance. An important policy implication of our findings is that discrimination in the capital market spills over to the labour market, leading to the distortion of occupational choice and inefficiency in allocation of physical and human resources.
    Keywords: occupational choice, discrimination, finance, gender, small and medium enterprises
    JEL: J24 J71
    Date: 2017
  12. By: Aleksandrova, Ekaterina A.; Verkhovskaya, Olga R.
    Abstract: This paper presents the results of a research which purpose was to investigate the link between institutional features and the motivation of entrepreneurial activity on the country level. Taking into account Scott's institutional theory, the main factors of the institutional environment were identified. The empirical analysis was conducted using the Global Entrepreneurship Monitor Survey for 2009 - 2014. Using data from various sources, such as GCR, WB, Doing Business, Economic Freedom, Hofstede's Indicators, we determined proxy-variables for every institutional dimension. The results of econometric analysis indicate that the regulatory, normative, and cognitive factors influence not only the level of TEA, but also the share of necessity-driven entrepreneurs.
    Keywords: entrepreneurship, necessity-driven entrepreneurship, institutional, Global Entrepreneurship Monitor Survey, cross-country analysis,
    Date: 2016

This nep-cse issue is ©2017 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.