nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒01‒22
thirteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Cluster dynamics: learning from Competitiveness Cluster policy. The case of ‘Secure Communicating Solutions’ in the French Provence-Alpes-Côte d’Azur Region By Christian Longhi
  2. Business Model Design: Lessons Learned from Tesla Motors By Yurong Chen; Yannick Perez
  3. Smart Specialisation, seizing new industrial opportunities By Antonio VEZZANI; Marco BACCAN; Alina CANDU; CASTELLI; Mafini DOSSO; Petros GKOTSIS
  4. Entrepreneurship and Sustainability Goals: The Need for Innovative and Institutional Solutions By Adel Ben Youssef; Sabri Boubaker; Anis Omri
  5. Heterogeneity in the Internationalization of R&D: Implications for Anomalies in Finance and Macroeconomics By Patrick Grüning
  6. The organizational design of high-tech startups and product innovation By Grimpe, Christoph; Murmann, Martin; Sofka, Wolfgang
  7. Attracting FDI in middle-skilled supply chains By Moran, Theodore; Görg, Holger; Serič, Adnan; Krieger-Boden, Christiane
  8. Duplicative research, mergers and innovation By Denicolò, Vincenzo; Polo, Michele
  9. On the Measurement of Upstreamness and Downstreamness in Global Value Chains By Pol Antràs; Davin Chor
  10. Knowledge transfer obstructs knowledge application: Qualitative study on open innovation By Shohei Funatsu; Yasuo Sugiyama
  11. Why do firms collaborate with local universities? By Rune Dahl Fitjar; Martin Gjelsvik
  12. Does Knowledge Management Influence the Customer's Satisfaction and Intention to Quit? Mediating Role of Customer Relationship Management By Adeel Mehmood; Muhammad Yousaf Zain Ul Abedin
  13. Higher Education for Smart Specialisation: The case of Navarre, Spain By Igor Campillo; Eskarne Arregui-Pabollet; Javier Gomez Prieto

  1. By: Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur)
    Abstract: The paper aims to identify the forms and dynamics of the organizational structures of high-tech clusters overtime. Since Markusen (1996), it is well acknowledged that diversity is an emergent property of clusters, but the interactions between local and non-local actors of the clusters are difficult to trace because of lack of relevant data. The cluster policies developed to fix the network failures between the heterogeneous actors – large and small firms, universities, research institutes – of the current processes of innovation provide new information opportunities. In France, Competitiveness Clusters work as a “factories of project”; the information they produce on collective R&D projects applying for subsidies provides a proxy of local and non-local relations of the clusters. Social network analysis is used to infer the organizational structure of the collective learning networks and trace their dynamics. The case studies considered are Sophia-Antipolis and Rousset, two high tech clusters which belong to the same Competitiveness Cluster, ‘Secure Communicating Solutions’ in the Provence-Alpes-Côte d’Azur Region. The paper highlights the decoupling of the two clusters overtime as a consequence of distinctive organizational structures. The diversity of the dynamics of the collective learning networks which emerges through the analysis of the collective R&D projects in the two high tech clusters shows that knowledge creation and innovation can follow different paths and questions the public policies implemented.
    Keywords: Innovation, Collective Learning Networks, Competitiveness Cluster, Social Network Analysis, Rousset,Cluster Policy, Sophia Antipolis
    Date: 2017
  2. By: Yurong Chen (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Yannick Perez (UP11 - Université Paris-Sud - Paris 11)
    Abstract: Electric vehicle (EV) industry is still in the introduction stage in product life cycle, and dominant design remains unclear. EV companies, both incumbent from the car industry and new comers, have long taken numerous endeavors to promote EV in the niche market by providing innovative products and business models. While most carmakers still take 'business as usual' approach for developing their EV production and offers, Tesla Motors, an EV entrepreneurial firm, stands out by providing disruptive innovation solutions. We review the business model approach in the literature, then classify the innovation dimensions in the EV ecosystem. We study Tesla Motors in terms of: (i) innovation related to the vehicle, (ii) innovation related to the battery (iii) innovation concerning the recharging system, and (iv) innovation toward the EV ecosystem. Lessons for incumbent carmakers for their EV business model design: Tesla Motors 1) holds a product strategy entering from high-end market and moving to mass market, with a high level of innovation adaptation and learning by doing; 2) pays considerable attention to reduce range anxiety by high performance supercharger station network and high capacity battery; 3) shows a very high level of integration of information technology into many aspects of the EV business model, such as advanced in-car services and digital distribute channel; 4) shows a new value configuration which involving in high level of vertical integration towards battery and recharging network. All these lessons of this chapter would be worth the attention of the carmakers if the disruptive choices of Tesla succeed in challenging the dominant design.
    Keywords: Innovation Management,Business Model,Electric Vehicle,Tesla Motors
    Date: 2017–12–01
  3. By: Antonio VEZZANI (European Commission - JRC); Marco BACCAN (Finlombarda S.p.A. (Italy)); Alina CANDU (Finlombarda S.p.A. (Italy)); CASTELLI (Finlombarda S.p.A. (Italy)); Mafini DOSSO (European Commission - JRC); Petros GKOTSIS (European Commission - JRC)
    Abstract: This study offers a novel analytical approach to inform the regional search for new industrial opportunities, as promoted by smart specialisation in the EU Cohesion policy context. The analysis departs from the challenges of practicing smart specialisation and its entrepreneurial discovery process in a dynamic perspective. It argues that the adoption of a dynamic approach to identify new opportunities implies mapping regional business and innovation assets as well as, assessing their position within the global technological and industrial landscape. The study brings a case study of Lombardy region, spurring the S3 Lab initiative (in collaboration with Baden-Württemberg, Catalonia and Lapland), together with a comparative analysis of its technological profile. The empirical study combines patent data from OECD REGPAT and territorial proprietary micro-data from Lombardy region on firm creation in emerging industries (EI) – new industrial sectors or existing sectors evolving into new industries (European Cluster Observatory). These industries represent a priority area for Lombardy's innovation-led development strategy. The initial observations confirm the importance of such industries in the region; they represent more than one-third of employment, almost a half of the regional value-added and feature together the majority of start-ups, suggesting the relevance of the regional strategic development choices. Also, in terms of productive advantages, Lombardy ranks high in some key EI. The mapping of technological competences through patent indicators, e.g. specialisation, diversification and ability to specialise in fast-growing and niche fields gives relevant insights on the technological potential of the region, providing further guidance for better targeted interventions.
    Keywords: smart specialisation, emerging industries, regional search, technological specialisation
    JEL: O25 O33 O38 R58
    Date: 2017–11
  4. By: Adel Ben Youssef (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Sabri Boubaker (Champagne School of Management groupe ESC Troyes - Champagne School of Management groupe ESC Troyes); Anis Omri (FSEGN - Faculté des Sciences Economique et de gestion de Nabeul - Faculté des Sciences Economique et de gestion de Nabeul)
    Abstract: The relationship between entrepreneurship and sustainable development has received considerable attention from academics and policymakers, as society searches for solutions leading to sustainability. The role of innovation and institutional quality in reaching sustainability goals is one of the key areas tackled by the current sustainable development debate, particularly in developing countries. Using a modified environmental Kuznets curve model, this study attempts to better improve our understanding of the critical roles of innovation, institutional quality, and entrepreneurship in the structural change toward a sustainable future in Africa. The empirical results show that both formal and informal entrepreneurship are conducive to less environmental quality and sustainability in 17 African countries where the contribution of informal entrepreneurship is much higher compared to the formal one. However, the relationship between entrepreneurship and sustainable development becomes strongly positive when the levels of innovation and institutional quality are higher. This research makes a contribution to this important emerging research area in that it clarifies conditions through which countries and firms in Africa can move toward more sustainable products and services. Formalizing the informal sector can lead to the improvement of the environmental and economic performance.
    Keywords: Innovation,Institutions quality 2,Entrepreneurship,Sustainability
    Date: 2017–12–01
  5. By: Patrick Grüning (Bank of Lithuania & Faculty of Economics, Vilnius University)
    Abstract: Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation, have a higher degree of internationalization in their R&D technologies than entrants, i.e. new firms engaging in radical innovation, in a two-country endogenous growth general equilibrium model. In particular, this assumption allows the model to break the perfect correlation between incumbents’ and entrants’ innovation probabilities and to match the empirical counterpart exactly.
    Keywords: Heterogeneous innovation, Technology spillover, Endogenous growth, Creative destruction, International finance
    JEL: E22 F31 G12 O30 O41
    Date: 2017–10–20
  6. By: Grimpe, Christoph; Murmann, Martin; Sofka, Wolfgang
    Abstract: We investigate whether appointing a middle management level affects startups' innovation performance. Additional hierarchical levels are often suspected to restrict innovative activities. However, founders' capacities for information processing and resource allocation are usually strongly limited while, at the same time, R&D decisions are among the most consequential choices of startups. We argue that middle management is positively related to introducing product innovations because it improves the success rates from recombining existing knowledge as well as managing R&D personnel. In addition, we suggest that the effectiveness of these mechanisms depends on the riskiness of a startup's business opportunity. Based on a sample of German high-tech startups, we find support for our conjectures.
    Keywords: middle management,innovation performance,R&D,startups,organizational design,R&D management
    Date: 2017
  7. By: Moran, Theodore; Görg, Holger; Serič, Adnan; Krieger-Boden, Christiane
    Abstract: While popular opinion often pictures FDI flowing in search of lowest-wage, lowest- skilled activities in emerging markets, actual FDI to such countries increasingly addresses medium to high-skilled manufacturing sectors. Such FDI might be called "Quality FDI" that contributes to the creation of decent and value-adding jobs, enhancing the skill base of host economies, facilitating transfer of technology, knowledge and know-how, boosting competitiveness of domestic firms and enabling their access to world-wide markets, as well as operating in a socially and environmentally responsible manner. To attract such quality FDI, host countries need mindfully tailored policies. Recent research offers evidence for strategies in developing countries that successfully turned FDI into such quality FDI.
    Keywords: foreign direct investment,developing countries,emerging countries,industrial policy
    JEL: F14 F16 O24 O25
    Date: 2018
  8. By: Denicolò, Vincenzo; Polo, Michele
    Abstract: We show that in the model of Federico, Langus and Valletti (2017) [A simple model of mergers and innovation, Economics Letters, 157, 136-140] horizontal mergers may actually spur innovation by preventing duplication of R&D efforts. This possibility is more likely, the greater is the value of innovations, the less rapidly diminishing are the returns to R&D, and the more highly correlated are the R&D projects of different firms. Federico, Langus and Valletti (2017) do not obtain this result because they focus only on the case in which the merged firm spreads total R&D expenditure evenly across the individual research units of the merging firms -- a strategy which is optimal, however, only if the returns to R&D diminish sufficiently rapidly.
    Keywords: Horizontal mergers; Innovation
    Date: 2017–12
  9. By: Pol Antràs; Davin Chor
    Abstract: This paper offers four contributions to the empirical literature on global value chains (GVCs). First, we provide a succinct overview of several measures developed to capture the upstreamness or downstreamness of industries and countries in GVCs. Second, we employ data from the World Input-Output Database (WIOD) to document the empirical evolution of these measures over the period 1995-2011; in doing so, we highlight salient patterns related to countries’ GVC positioning – as well as some puzzling correlations – that emerge from the data. Third, we develop a theoretical framework – which builds on Caliendo and Parro’s (2015) variant of the Eaton and Kortum (2002) model – that provides a structural interpretation of all the entries of the WIOD in a given year. Fourth, we resort to a calibrated version of the model to perform counterfactual exercises that: (i) sharpen our understanding of the independent effect of several factors in explaining the observed empirical patterns in the period 1995-2011; and (ii) provide guidance for how future changes in the world economy are likely to shape the positioning of countries in GVCs.
    JEL: D5 F1 F2
    Date: 2018–01
  10. By: Shohei Funatsu; Yasuo Sugiyama
    Abstract: The purpose of this study is to examine the relationship between the processes through which a firm introduces or absorbs knowledge, and those through which it is applied within the firm by focusing on the in-bound type of “open innovation” process. Existing studies do not pay much attention to knowledge application and have hardly examined the relationship between knowledge transfer and application. If the transfer and application are qualitatively different, or in a mutually obstructing relationship, knowledge application would require specific management. We offer three key findings based on qualitative analysis of interviews and participant fieldwork data. As a result of the analysis, we assert the following conclusion. First, if the knowledge is more novel to the recipient, the motivation for open innovation increases, but the uncertainty in knowledge application increases at the same time. Second, if the uncertainty in knowledge application is high, or if the knowledge is novel or implicit to the recipient, the need for additional investment by firms such as establishing a new department or managing specialists will increase in order to maintain or accumulate the knowledge. Finally, if the recipient homogenizes to the source as scientific researchers, the homogenization promotes transfer but obstructs application.
    Keywords: open innovation, knowledge transfer, absorptive capacity, knowledge management, grounded theory approach
    Date: 2017–12
  11. By: Rune Dahl Fitjar; Martin Gjelsvik
    Abstract: This paper examines why firms sometimes collaborate locally rather than with higher-quality universities at a distance. Existing research has mostly relied on the localised knowledge spillover, or LKS, model to explain this. This model holds that knowledge transfer across distance is costly, and collaborating locally reduces the risk of information loss when the knowledge is transferred. However, there are various other reasons that could also explain the pattern. If the local university can make a useful contribution, firms might choose to look no further. Firms may also see collaboration as a long-term investment, helping to build up research quality at the local university with the hope of benefiting in the future. Finally, firms may want to contribute to the local community. We extend the LKS model with these additional motivations and explore their validity using data from 23 semi-structured interviews of firms that collaborate intensively with lower-tier local universities.
    Keywords: University-industry linkages, Knowledge spillovers, Geographical proximity, Collaboration
    JEL: O32 D21
    Date: 2017–12
  12. By: Adeel Mehmood (Department of Management Sciences, University of Sargodha Gujranwala campus); Muhammad Yousaf Zain Ul Abedin
    Abstract: Satisfied customers are worthy assets for any organization. This study helps in understanding how important is to retain and enlarge these assets by minimizing the intention to quit and maximizing the satisfaction of customers. This research explores the importance of knowledge management and customer relationship management in order to retain advantageous and long-term bonds with customers in hotel industry. The purpose of this study is to examine the effect of knowledge management on customers' satisfaction and intention to quit by concentrating on the mediating role of customer relationship management. Data were collected by applying simple random sampling from employees and customers of hotels in Gujranwala. Results indicated that knowledge management has significant and positive relationships with customers' satisfaction. Moreover, knowledge management is negatively and significantly related to intention to quit. Additionally, customer relationship management also significantly mediates the relationship between knowledge management and customers' satisfaction & intention to quit.
    Keywords: Intention to Quit,Knowledge Management,Customer Relationship Management,Customers Satisfaction
    Date: 2017–10–01
  13. By: Igor Campillo (University of the Basque Country); Eskarne Arregui-Pabollet (European Commission - JRC); Javier Gomez Prieto (European Commission - JRC)
    Abstract: This report gathers the main findings extracted from the Navarre case study carried out in the framework of the Higher Education and Smart Specialisation (HESS) project managed by the Joint Research Centre of the European Commission. Navarre has been one of the two regions covered as case studies during the first phase of the project. The overall aim of HESS is to understand and provide support to national and regional authorities on how to integrate higher education into the policy mixes of their Smart Specialisation Strategies (S3). This technical report provides some interesting insights into how an advanced region with high involvement of universities in the early phase of S3 definition is facing the challenges of their role in the implementation phase. On the one hand, it shows that different universities in the same region are likely to vary in nature and function and as such may contribute differently to the S3. In Navarre, one of the two universities is more research oriented with a strong focus on the attraction of international talent, while the other is more regionally rooted with close ties to local companies and stakeholders. On the other hand, the report identifies tensions in engaging individual researchers in regional development activities, as well as potential mechanisms and tools to overcome them. The methodology used during the project has included qualitative research methods, participatory workshops and desk-research activities.
    Keywords: Smart specialisation, higher education
    Date: 2017–12

This nep-cse issue is ©2018 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.
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