nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒02‒12
fourteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Sharing of Tacit Knowledge in Organizations: A Review By Mohajan, Haradhan
  2. Triple Helix Model’s (THM) impact on enhancing creativity and skills within UAE public and private sectors By Salem, Fatima
  3. Creative and science-oriented employees and firm-level innovation By Stephan Brunow; Antonia Birkeneder; Andrés Rodríguez-Pose
  4. Evolution of Regional Innovation with Spatial Knowledge Spillovers: Convergence or Divergence? By Junwen Qiu; Wenjian Liu; Ning Ning
  5. Technological catching-up, sales dynamics and employment growth: evidence from China’s manufacturing firms By Dosi, Giovanni; Yu, Xiaodan
  6. Technology, market structure and the gains from trade By Giammario Impullitti; Omar Licandro; Pontus Rendahl
  7. An Analysis on BCG Growth Sharing Matrix By Mohajan, Haradhan
  8. Structural analysis of the offshore wind innovation system in Poland By Jakub Sawulski
  9. Does trade openness affect manufacturing growth in EMCCA countries? A panel cointegration analysis By Takam Fongang, Guy Martial; Kamdem, Cyrille Bergaly; Litchepah Tambo, Christian
  10. Internalizing global value chains: a firm-level analysis By Alfaro, Laura; Antras, Pol; Chor, David; Conconi, Paola
  11. An Analysis of Knowledge Management for the Development of Global Health By Mohajan, Haradhan
  12. Higher Education for Smart Specialisation: The case of North East Romania By Elisabetta Marinelli; John Edwards; Cosmina Mironov
  13. Access to finance and innovative activity of EU firms: A cluster analysis By Ferrando, Annalisa; Lekpek, Senad
  14. Knowledge Management Strategy to Improve Business Sector By Mohajan, Haradhan

  1. By: Mohajan, Haradhan
    Abstract: Knowledge is regarded as a strategic factor in knowledge management implementation. It is mainly divided into two types: tacit and explicit. Tacit knowledge is created in the human mind as individual know-how and can be expressed as innovation. It is unwritten, unspoken and hidden vast storehouse of knowledge of a person. It is obtained as a result of the direct interaction between individuals and their peers in the organization. For the sustainable development of the modern global economy tacit knowledge can play an important role. Acquire and extract of tacit knowledge is not a very easy task, since it is very complex in its nature. The success and well-being of humankind is an essential issue in the twenty first century and use of tacit knowledge makes the job easier. Management of tacit knowledge effectively and efficiently is a key success factor for the organizations. The paper tries to discuss sharing of tacit knowledge for the sustaining of the long-term capabilities and performance in organizations. It analyzes the importance and difficulties of sharing tacit knowledge. This paper also makes an effort to explore the properties and characteristic of tacit knowledge thinking for the new readers.
    Keywords: Explicit and Tacit Knowledge, Knowledge Sharing and Transfer, Polanyi, Nonaka
    JEL: M1 M12
    Date: 2016–06–05
  2. By: Salem, Fatima
    Abstract: Organizations and businesses cannot depend completely on their own to generate new ideas for innovation and development in present knowledge based societies. Consequently, the United Arab Emirates (UAE) announced 2015 as the Year of Innovation and excellence awards have been established aiming to boost cooperation between various sectors in the country. Therefore, the concept of the Triple Helix (university–industry–government) was found as a model of innovation. The aim of this research is to establish the impact of a Triple Helix approach on enhancing creativity and skills within UAE public and private sectors. It explores the concept of the Triple Helix Model (THM) in the context of the UAE public and private sectors focusing on its existence, implementation, barriers and drivers. Methods of analysis include both qualitative and quantitative approach in which a conceptual framework was derived from the literature review, a survey was developed and distributed to a sample of employees from different organizations, and follow-up interviews were carried out with key stakeholders (in which their departments are implementing/ involved in the THM). The findings exposed the stakeholders’ perception about the importance of the concept and each actor’s role in the THM, the limited utilization of the concept among the organizations, and the challenges in terms of relational barriers and knowledge sharing. The research findings reveal that TH approach has a positive influence on enhancing creativity and skills within UAE sectors and several recommendations have been proposed such as leadership involvement and support, designing organizational innovation strategy, and the addition of society helix.
    Keywords: Triple Helix Model, Innovation, Challenges, United Arab Emirates
    JEL: G28 L80 L84 L88 O31 O32 O38
    Date: 2017–02–10
  3. By: Stephan Brunow; Antonia Birkeneder; Andrés Rodríguez-Pose
    Abstract: This paper examines the link between innovation and the endowments of creative and science-oriented STEM - Science, Technology, Engineering and Mathematics ? workers at the level of the firm and at the city-/regional-level in Germany. It also looks into whether the presence of these two groups of workers has greater benefits for larger cities than smaller locations, thus justifying policies to attract these workers in order to make German cities 'smarter'. The empirical analysis is based on a probit estimation, covering 115,000 firm-level observations between 1998 and 2015. The results highlight that firms that employ creative and STEM workers are more innovative than those that do not. However, the positive connection of creative workers to innovation is limited to the boundaries of the firm, whereas that of STEM workers is as associated to the generation of considerable innovation spillovers. Hence, attracting STEM workers is more likely to end up making German cities smarter than focusing exclusively on creative workers.
    Keywords: Innovation, Creative workers, STEM workers, Smart Cities, Spillover, Germany
    JEL: D22 J82 R12 J21 J24 R23
    Date: 2018–02
  4. By: Junwen Qiu; Wenjian Liu; Ning Ning
    Abstract: Based on endogenous economic growth models and the panel data of 31 regions in China, this paper explores the following four questions: Do spatial knowledge spillovers among regions exist? Do spatial knowledge spillovers promote regional innovative activities? What is the radiation range of spatial knowledge spillovers? Do external knowledge spillovers affect the evolution of regional innovations in the long run? The results show that spatial knowledge spillovers exist, and though the range of knowledge spillover is within 1000 kilometers in China, it pushes up regional innovative activities. Moreover, since developing regions benefit more from external knowledge spillovers than developed regions, it leads to the convergence of regional knowledge growth rate.
    Date: 2018–01
  5. By: Dosi, Giovanni; Yu, Xiaodan
    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
    JEL: D22 J01 O33
    Date: 2018
  6. By: Giammario Impullitti; Omar Licandro; Pontus Rendahl
    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: gains from trade, heterogeneous firms, oligopoly, innovation, endogenous markups, endogenous market structure.
    Date: 2018
  7. By: Mohajan, Haradhan
    Abstract: In the 21st century, sustainable improvement of business faces various challenges for the global economic competition. But, these challenges can be overcome by the efficient business strategies. The Boston Consulting Group (BCG) helps the business organizations to develop their efficiency for the successful operation of their business activities. To develop the efficiency of marketing decision making, the BCG Matrix plays an effective tool for strategic planning of product performance in industry and company level. It analyses to identify which strategic business units to invest in, which to sell off, and which to shut down. It helps a company to distribute their available resources through the efficient business management. It is one of the most popular and helpful consulting firms. The paper tries to provide a guideline to the business organizations to choose the best business policies by the use of BCG matrix.
    Keywords: BCG Matrix, Business Organizations, Business Improvement
    JEL: L2
    Date: 2017–11–16
  8. By: Jakub Sawulski
    Abstract: The paper is a preliminary evaluation of the offshore wind innovation system in Poland. The analysis is based on the Technology Innovation System concept. The paper includes the two first steps of the procedure: the structural analysis and the technology stage of development analysis. We found that, although there are not any offshore wind farms in Poland yet, Polish industry has broad experience in implementing offshore wind projects and can cover a large part of the offshore wind farm investment. However, knowledge area is not a strong point of the innovation system. Also the institutional (political) uncertainty, as well as inadequate public system of support for RES, may be significant barriers for the development of the technology. So far, the Baltic Sea has remained weakly explored in terms of offshore wind deployment. Poland, with its large sea space and good wind and soil conditions, may play a pivotal role in kick-starting the offshore market in this area.
    Keywords: RES, offshore wind, innovation system, TIS
    JEL: O31 O33 Q42 Q55
    Date: 2017–12
  9. By: Takam Fongang, Guy Martial; Kamdem, Cyrille Bergaly; Litchepah Tambo, Christian
    Abstract: This study uses panel data covering the period from 1984 to 2014, panel cointegration as well as Dynamic Ordinary Least Square method to investigate the effect of trade openness on manufacturing growth in Economic and Monetary Community of Central Africa (EMCCA) countries. The results reveal two effects. Firstly, there is a positive and significant effect of Foreign Direct Investment and investment on manufacturing growth. Secondly, there is an ambiguous effect of trade openness on manufacturing growth. Indeed, trade openness affects either negatively the manufacturing growth or has no effect on manufacturing growth in EMCCA countries. Whatever the case, EMCCA countries should develop their manufacturing sector before fully trading with foreign countries.
    Keywords: Trade openness, Panel Cointegration, Dynamic Ordinary Least Square, Manufacturing growth, EMCCA countries
    JEL: F41 F43 O14
    Date: 2017–11
  10. By: Alfaro, Laura; Antras, Pol; Chor, David; Conconi, Paola
    Abstract: In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert over the different segments of their production processes. We describe a property-rights model of firm boundary choices along the value chain that generalizes Antràs and Chor (2013). To assess the evidence, we construct firmlevel measures of the upstreamness of integrated and non-integrated inputs by combining information on the production activities of firms operating in more than 100 countries with Input-Output tables. In line with the model's predictions, we find that whether a firm integrates upstream or downstream suppliers depends crucially on the elasticity of demand for its final product. Moreover, a firm's propensity to integrate a given stage of the value chain is shaped by the relative contractibility of the stages located upstream versus downstream from that stage, as well as by the firm's productivity. Our results suggest that contractual frictions play an important role in shaping the integration choices of firms around the world
    Keywords: global value chains; sequential production; incomplete contracts
    JEL: D23 F14 F23 L20
    Date: 2017–10–01
  11. By: Mohajan, Haradhan
    Abstract: Recently knowledge management (KM) has become very important part of the everyday work in healthcare practices. The KM transforms a health organization into a learning organization able to generate new knowledge, create knowledge systems and base organizational actions on knowledge in healthcare. It makes the close and long-term relationship among healthcare providers and patients to create a greater mutual understanding, trust, and patient involvement in decision making. The paper discusses telemedicine, information technology, efficient nursing system, medical errors and reduction of these errors, healthcare cooperation among different healthcare providers in healthcare systems. It briefly discusses healthcare strategy in four developed and developing countries. This paper investigates the creation, sharing, storing and utilization of knowledge in medical science. The aim of this study is to apply the concept of KM and to investigate the use of KM to the health sector. An attempt has been taken here to discuss overview of KM, its methods and techniques, and applications of efficient KM in health sector.
    Keywords: Knowledge, Knowledge Management, Healthcare, Health Information, Health Organizations, Healthcare Cost, Nursing, Medical Errors
    JEL: I1 I15 M12
    Date: 2016–07–16
  12. By: Elisabetta Marinelli (European Commission - JRC); John Edwards (European Commission - JRC); Cosmina Mironov (Bucharest University)
    Abstract: This report synthesises the findings of the project Higher Education and Smart Specialisation (HESS) in North East Romania, a region that has been examined as one of the case studies. The project analyses the links between the higher education (HE) system and the development and implementation of Smart Specialisation Strategies (S3). On the one hand, the report identifies the challenges that S3 and the shift towards place-based innovation raise for Higher Education Institutions (HEIs) in the region; on the other, it explores how HEIs' activities can best support S3 in a region with an early-stage regional innovation system. The case of North East Romania is particularly interesting, as the region hosts well-established universities , that are anchored to their traditional missions of teaching and research, while facing critical questions posed by S3. In particular the report explores how HEIs can contribute to knowledge-based regional development, not only through locally-relevant teaching programmes, but also through territorially grounded research, technology transfer and societal engagement. The case study has employed participatory and qualitative research methods, which have been complemented by desk based research on the policy and socio-economic context.
    Keywords: Smart specialisation, higher education
    Date: 2017–12
  13. By: Ferrando, Annalisa; Lekpek, Senad
    Abstract: The way firms finance their investments can potentially explain the heterogeneity of firms in terms of their innovation. We use a novel firm-level survey of the European Investment Bank (EIBIS) which provides information about a wide range of financing sources that firms use to fund their investment activities. The aforementioned survey also reveals a firms' degree of innovativeness. By applying a cluster analysis to group firms using information on their financing decisions, we investigate the link between finance and innovation of EU firms. We identify seven financing clusters to show that the degree of innovativeness (defined in terms of R&D or software investment, R&D and software turnover ratios, and the introduction of new products) increases with the diversification of financial instruments. Firms that use several financing instruments are more likely to invest in R&D and software activities and develop new products compared to firms that use a more limited number of financing instruments.
    Keywords: innovation,R&D,internal and external finance,cluster analysis
    JEL: D22 G32 O31
    Date: 2018
  14. By: Mohajan, Haradhan
    Abstract: Every organization needs the proper knowledge management (KM) strategy for the development of the organization. In the last decades the business environment has changed and recently it becomes more dynamic and more complex. At present KM is valuable not only for individuals, and organizations, but also, for global humanity. So, the directors of the organizations must emphasize on the existing knowledge and try to develop them to achieve the competitive advantage. The purpose of the study is to explore the recent KM practice in the organizations and to show the ways to develop the new KM strategy in future. An attempt has been taken here to apply KM strategy in business performance, business intelligence, and e-business.
    Keywords: Knowledge, knowledge management, business intelligence, business performance, e-business
    JEL: M1 M16
    Date: 2017–03–10

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.
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.