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on Economics of Strategic Management |
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Issue of 2018‒03‒12
fifteen papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Dina Pereira (University of Beira Interior (UBI), UBImedical, CEG-IST, University of Lisbon); João Leitão (University of Beira Interior (UBI), CEG-IST, University of Lisbon & C-MAST, UBI, Instituto Multidisplinar de Empresa, Universidad de Salamanca) |
| Abstract: | The firm’s absorptive capacity triggers its propensity to capture external knowledge, spurred by internal levers and cooperation liaisons, stimulating innovativeness. This paper revisits Zahra and George’s model of absorptive capacity and others, analysing the firm’s internal and liaison factors that affect its absorptive capacity, in order to predict their influence on innovation. Being the firm an open system, managers acknowledging such effects can design a more efficient open innovation business model in order to generate more innovation. We analyse firm-level internal indicators measuring firm’s absorptive capacity and a set of liaison factors, using a Portuguese sample of 571 service firms and 562 manufacturing firms that participated in the European Community Innovation Survey (CIS), 2010. Results reveal that internal R&D, acquisition of external R&D, acquisition of external knowledge (i.e., equipment, software, licenses and employee training) affect firms' generation of innovation, according to the different sub-samples, which provides several implications for science and innovation policy. |
| Keywords: | Absorptive Capacity; Innovation; Liaisons; Internal and External Knowledge |
| JEL: | M20 M21 L25 L26 O32 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0096&r=cse |
| By: | Joana Costa (Universidade de Aveiro); Anabela Botelho (Universidade de Aveiro); Aurora Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto) |
| Abstract: | The analysis of persistence in innovation can improve the understanding of firm dynamics, anticipate the effects of the different policy actions, correct macroeconomic disequilibria, help in designing the correct policies to boost R&D and, consequently, generate prosperity. Persistence of innovation is empirically explored mostly using the case of innovation leaders or followers, which may not apply to countries with poorer performances in terms of innovation. Studying the case of a moderate innovator may shed some light into the different conditions of firms and their attitude towards persistence, as well as the adoption of different policy actions to observe this heterogeneity. Additionally, the effect of firm size and industry has not yet been fully explored by the literature on innovation persistence. The present paper analyses the persistence of innovation using a dynamic panel comprising 1099 firms operating in all economic sectors of a moderate innovator country, Portugal. Firms are observed in three waves of the Portuguese part of the Community Innovation Survey (CIS), from 2004 to 2010. Using the random effects probit model, the persistence hypothesis fails to be corroborated. Such result suggest that innovation policy programs do not have long-lasting effect on innovative behavior of firms and it is unlikely that incumbent past innovators be the drivers of creative accumulation and future innovation. There is, however, some evidence that new, smaller, innovators might lead the creative wave. In this vein, there might be a rational to encourage public policies targeting start-up firms and new market entrants when innovation is the main primary funding goal. |
| Keywords: | Persistence, Innovation, State dependence, Firms, Community Innovation Survey, Portugal |
| JEL: | D22 L20 O31 O32 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0094&r=cse |
| By: | Aurora Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Tec; OBEGEF); André Monteiro (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Studies on the efficiency of TTOs have mainly focused on well-developed countries (US and UK), whereas intermediate technology countries have been rather neglected. This study intends to complement existing empirical work on this matter by providing evidence on Portugal, an intermediate technology country, which has invested quite heavily in technological support infrastructures (including TTOs) in the last decade. Using the Data Envelopment Analysis approach to 18 Portuguese TTOs over the period 2007-2011, we found that TTOs had improved their efficiency especially in the more upstream stages of the technology transfer process (invention disclosures and priority filings). Additionally, based on econometric models, we found that universities characteristics do matter, with universities with a large number of accumulated patents and publications being associated to more efficient TTOs in terms of invention disclosures and priority filings. Moreover, the regional industrial basis, most notably the weight of the manufacturing industry and new high- and medium-tech firms in regions where the university is located, contributes significantly to the efficiency of TTOs, in both the more upstream (invention disclosure and priority filings) and downstream (start-ups) phases, reflecting the importance of strong business regional spillovers for TTOs efficiency. |
| Keywords: | Technology Transfer Offices, Efficiency, Data Envelopment Analysis, Universities, Portugal |
| JEL: | O34 O39 C14 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0093&r=cse |
| By: | Bengtsson, Lars (Faculty of Engineering, Lund University); Tavassoli, Sam (RMIT) |
| Abstract: | We analyze the effect of Business Model Innovation (BMI) on the product innovation performance of firms, based on a dynamic capabilities theoretical framework. Our empirical study is based on a large-scale representative sample of cross-industry Swedish firms participating in the last three waves of the Community Innovation Survey (CIS) from 2006–2012. Our findings provide support for the dynamics capabilities theoretical framework as well as broad evidence of a significant and positive association between BMI and product innovation performance. Our results imply that BMI in the form of product innovations combined with different complementary innovations will act as isolating mechanisms towards replication by competitors. Therefore, managers should frame product innovations as part of a business model innovation and dynamically adapt the key elements of the firm’s business model. |
| Keywords: | Business model innovation; Business models; Dynamic capabilities; product innovation; Innovation performance; Community Innovation Survey |
| JEL: | D22 L20 O31 O32 |
| Date: | 2018–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2018_004&r=cse |
| By: | Birkeneder, Antonia; Brunow, Stephan; Rodríguez-Pose, Andrés |
| 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: | Creative workers; Germany; Innovation; Smart Cities; Spillover; STEM workers |
| JEL: | J24 R23 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12695&r=cse |
| By: | Zheng, Zhijie; Huang, Chien-Yu; Yang, Yibai |
| Abstract: | This paper investigates the effects of monetary policy on long-run economic growth via different cash-in-advance constraints on R&D in a Schumpeterian growth model with vertical and horizontal innovation. The relationship between inflation and growth is contingent on the relative extents of CIA constraints and diminishing returns to two types of innovation. The model can generate a mixed (monotonic or non-monotonic) relationship between inflation and growth, given that the relative strength of monetary effects on growth between different CIA constraints and that of R&D-labor-reallocation effects between different diminishing returns vary with the nominal interest rate. In the empirically relevant case where horizontal R&D suffers from greater diminishing returns than vertical R&D, inflation and growth can exhibit an inverted-U relationship when the CIA constraint on horizontal R&D is sufficiently larger than that on vertical R&D. Finally, the model is calibrated to the US economy, and we find that the growth-maximizing rate of inflation is around 2.8%, which is closely consistent with recent empirical estimates. |
| Keywords: | Inflation; Endogenous growth; CIA constraint on R&D |
| JEL: | E41 O30 O40 |
| Date: | 2018–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84768&r=cse |
| By: | Huber, Alexander |
| Abstract: | Entrepreneurship and entrepreneurial activities influence the development and well-being of both economies and societies to a large extent. At the heart of all entrepre-neurial activities are new ventures - vehicles which entrepreneurs use in order to ex-ploit opportunities through the commercialization of newly developed products or services. In addition to the many obstacles entrepreneurs face when creating a new venture and entering new markets, the financing of these entrepreneurial initiatives becomes a large obstacle. In particular, uncertainties regarding market acceptance of the identified opportunity and thus survival and ultimately growth limit the financing options of new ventures notably. Further, the financing decisions made at the begin-ning of the entrepreneurial process have a lasting impact on the development of the new venture once a certain type of financing is acquired. Hence, securing the necessary financing is not only a major challenge for the entrepreneur at the beginning of the entrepreneurial career. The selection of the right amount of financing from the right source also influences the development of the new venture over and beyond the early days of existence. In line with this argumentation and while acknowledging the limited number of fi-nancing options available to new ventures, venture capital is often identified as a via-ble option for firms during in their early stages of development. This form of financing is characterized to be provided by institutional investors that jointly invest financial means, experience, and networks into the firms they consider to be able to generate the desired growth in return. Given the large array of new ventures however, only a few are considered a potential investment, and thereof only a fraction receives the necessary funding. Regarding the latter group of investees however, a venture capital investment has empirically proven to positively influence new venture survival and growth, translating into increased performance of venture capital-backed over non-venture capital-backed firms. Given the fact that venture capital itself is a fascinating field of research but likewise of great importance for the financing of new ventures at the same time, this dissertation develops new empirical insights about the role of ven-ture capital in the context of new ventures that were created in an academic context. Further, crowdfunding as a new means of entrepreneurial finance is analyzed against the background of its signaling value in the investment decision of venture capitalists. The first empirical contribution uses a proprietary dataset of 98 German research-based spin-offs founded between 1997 and 2012 and assesses which firm-specific and system-inherent factors are decisive for the spin-offs’ growth while drawing on the re-source-based view of the firm as theoretical framework. Specifically, this dissertation aims to evaluate whether venture capital-backed research-based spin-offs outperform non venture capital-backed research-based spin-offs and whether a performance differ-ence is explained by venture capitalists’ scouting or coaching capabilities. The empiri-cal findings suggest that a homogeneous educational background of the academic en-trepreneurs is positively associated with the research-based spin-off’s growth. Similar-ly, a training provided by the parent research organization intended to develop entre-preneurial skills and to establish a network to outside professionals as well as the commercialization of a novel technology have a positive impact on a research-based spin-off’s growth. Concerning the involvement of venture capitalists, venture capital-backed research-based spin-offs show a superior employment and revenue growth compared to non-venture capital-backed research-based spin-offs. As a possible cause for this superior performance, the empirical findings support the view that this growth difference can be attributed to venture capitalists’ coaching rather than their scouting capabilities. The second empirical contribution addresses the increasing popularity of crowdfund-ing as a new means to finance new ventures. In particular, this dissertation assesses whether and how crowdfunding campaign-specific signals that affect campaign success influence venture capitalists’ selection decisions in new ventures’ follow-up funding rounds. By doing so, this empirical contribution relies on cross-referencing a proprie-tary dataset of 66,000 crowdfunding campaigns that ran on Kickstarter between 2009 and 2016 with 100,000 investments in the same period from the Crunchbase dataset. Using this approach, 267 new ventures with at least one crowdfunding campaign could be identified. While drawing on signaling theory and the venture capital and micro-finance literature, the empirical findings reveal that a successful crowdfunding cam-paign leads to a higher likelihood to receive follow-up venture capital financing, and that an inverted U-shaped relationship exists between the funding received compared to the funding desired and the probability to receive venture capital funding. Further, the analyses provide statistical evidence that a special endorsement of campaigns by the crowdfunding platform provider as well as social media presence in the form of word-of-mouth volume has a likewise positive impact on the receipt of follow-up ven-ture capital. Interpreting these findings, this dissertation concludes that the results sup-port the view that venture capitalists apparently rely on the decision of the crowd in order to evaluate the potential of the entrepreneurial initiative when selecting new investment opportunities. Over and beyond the signals that a crowdfunding campaign produces and that are ap-parently factored into the investment decision of venture capitalists, this dissertation also elaborates on how the presence of a crowdfunding campaign itself, disregarding all its campaign-relevant aspects, influences the investment decision of venture capital-ists in terms of their decision to form syndicates. For the purpose of this research ques-tion, this dissertation relies again on signaling theory and builds on the syndication literature. The overarching empirical finding is that crowdfunding seems to influence the syndication behavior of venture capitalists. For one thing, the presence of a crowd-funding campaign negatively influences both the likelihood of a syndicated investment as well as the number of syndicate partners. For another, the findings reveal that crowdfunding positively influences the formation of international syndicates. Hence, the results support the assumption that the importance of crowdfunding is also fac-tored into the investment decision of venture capitalists in terms of their decision to syndicate. This dissertation concludes with the major contributions for both theory and practice. In essence, the results derived provide novel insights about growth factors of research-based spin-offs by widening the focus of analysis. This is done by incorporating venture capital into the research scope so as to advance the resource-based view of the firm. Also, this dissertation shows that crowdfunding serves as a catalyst reducing the per-ceived risk in the form of information asymmetries related to new ventures. Thus, this dissertation advances signaling theory and also provides important implications for the microfinance and VC literature. |
| Date: | 2017–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:94924&r=cse |
| By: | Rafael S. M. Ribeiro (Federal University of Minas Gerais); John S. L. McCombie (Federal University of Minas Gerais); Gilberto Tadeu Lima (University of São Paulo) |
| Abstract: | This article seeks to reassess the empirical literature on real exchange rate misalignment and growth in light of the extensive discussion about the relationship between income distribution and growth in developing economies. We state that the relationship between changes in the real exchange rate and growth can be characterised by two conflicting partial effects, as follows: i) undervaluation stimulates technological change and knowledge spillovers, thus affecting positively output growth; ii) undervaluation raises income inequality and hence harms output growth. Though there are a vast number of empirical studies presenting robust evidence of a positive relationship between currency undervaluation and growth for developing economies, none has yet explicitly considered the potentially negative distributional effects of undervaluation on growth. Our empirical model adds to this literature by suggesting that, once both functional income distribution and the level of technological capabilities are explicitly taken into account, the direct impact of real exchange rate misalignment on growth becomes statistically non-significant for a sample of developing countries. Further, based on our results, we state that the real exchange rate only affects growth indirectly through its impacts on functional income distribution and technological innovation. Our estimates have shown that the indirect impact of undervaluation on growth in developing countries is negatively signed. |
| Keywords: | Exchange rate, growth, income distribution, technological capabilities |
| JEL: | F43 F31 D63 O33 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td574&r=cse |
| By: | Samuel Bazzi; Amalavoyal V. Chari; Shanthi Nataraj; Alexander D. Rothenberg |
| Abstract: | Despite the importance of agglomeration externalities in theoretical work, evidence for their nature, scale, and scope remains elusive, particularly in developing countries. Identification of productivity spillovers between firms is a challenging task, and estimation typically requires, at a minimum, panel data, which are often not available in developing country contexts. In this paper, we develop a novel identification strategy that uses information on the network structure of producer relationships to provide estimates of the size of productivity spillovers. Our strategy builds on that proposed by Bramoulle et al. (2009) for estimating peer effects, and is one of the first applications of this idea to the estimation of productivity spillovers. We improve upon the network structure identification strategy by using panel data and validate it with exchange-rate induced trade shocks that provide additional identifying variation. We apply this strategy to a long panel dataset of manufacturers in Indonesia to provide new estimates of the scale and size of productivity spillovers. Our results suggest positive productivity spillovers between manufacturers in Indonesia, but estimates of TFP spillovers are considerably smaller than similar estimates based on firm-level data from the U.S. and Europe, and they are only observed in a few industries. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:ran:wpaper:wr-1182&r=cse |
| By: | Nicola Francesco Dotti; André Spithoven |
| Abstract: | Knowledge brokers have emerged as a new type of actors shaping scientific production, influencing science–policy relationships, and thereby contributing to regional competitiveness. Yet, the spatial dimension of these knowledge brokers has received little attention. Using Framework Programme participations in European cities, we analyse and discuss the location strategy of knowledge brokers, highlighting the importance of co-location with the funding source. Our findings show that knowledge brokers are clustered in Brussels, and not elsewhere, to be closer to the European Commission in order to access strategic, informal and tacit information, while contributing to the construction of transnational R&D networks. While this ‘local buzz’ has positive side effects on the regional innovation system of Brussels; knowledge brokers emerge as a new type of spatially clustered actors shaping the distribution of EU funding for ‘European knowledge pipelines’. |
| Keywords: | Brussels; Europe; Framework Programme; Knowledge brokers; local buzz |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/260690&r=cse |
| By: | Natália Barbosa (School of Economics and Management, University of Minho); Ana Paula Faria (School of Economics and Management, University of Minho) |
| Abstract: | We investigate the role of different entrepreneurial origin on firms’ performance by comparing academic spinoff firms with their non-academic counterparts and using alternative growth measures. Estimates based upon dynamic panel-data models reveal that academic spinoffs grow through resources accumulation and internationalization. However, comparatively to non- academic counterparts, they fail to translate these advantages into productivity gains. Also, despite younger academic spinoff outperform, in terms of sales growth, firms from different entrepreneurial origin, they fail to retain these scale effects, as they grow older. Portuguese academic spinoffs are contributing to economic development by creating new jobs, yet their relevance as a source of sustained economic value is limited so far. Policy implications are discussed in light of these findings. |
| Keywords: | Academic Spinoff, firm growth, dynamic estimators |
| JEL: | L21 L25 M13 H32 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0095&r=cse |
| By: | Charles Kenny (Center for Global Development); Mallika Snyder (Center for Global Development); Dev Patel (Center for Global Development) |
| Abstract: | This paper attempts a first-cut listing of global public goods and international spillover activities, as well as providing some data on their global distribution alongside basic correlational analysis. Few if any goods are “pure” global public goods and there is a spectrum of the extent of spillovers. Some global public goods are not well measured. The listing is far from exhaustive, nor is it based on rigorous selection criteria. But it does suggest considerable diversity in trends, levels and sources of public good and spillover activities. |
| Keywords: | Global public goods, globalization, international institutions |
| JEL: | F55 H87 |
| Date: | 2018–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:474&r=cse |
| By: | João Martins (University of Minho and NIPE, Escola de Economia e Gestão; United Nations University-Operating Unit on Policy Driven Electronic Governance (UNU-EGOV)); Linda Veiga (University of Minho and NIPE, Escola de Economia e Gestão; United Nations University-Operating Unit on Policy Driven Electronic Governance (UNU-EGOV)) |
| Abstract: | Administrative and regulatory burden reduction is considered nowadays a priority to improve governmental efficiency and economic competitiveness. Innovations in government through Information Communication Technology (ICT) are seen as key tools in designing policies to achieve those goals. Using a large panel dataset, covering 174 countries from 2004 to 2016, we investigate a possible contribution of innovations in digital governments to facilitate business, and extract implications for Portugal. Progress in digital government is proxied by the United Nations’ e-gov index, while the business environment is proxied by the World Bank’s Ease of Doing Business indicators. Empirical results suggest that progress in e-gov may contribute to the creation a more business-friendly environment in several areas, particularly at starting a business, dealing with construction permits, getting electricity, paying taxes, getting credit, trading across borders, and protecting minority investors. Although Portugal has been evolving positively both in the Doing Business and e-gov rankings, it is still far from the top performers in several aspects, and gains could be obtained from improvements in digital government intended to facilitate business. Among the variables used in the construction of the Ease of Doing Business indicators, Portugal is always below the best performing countries in those that measure the number of procedures, time, costs and transparency. These are aspects where we can easily foresee a positive role of e-gov. Creating a favourable environment for business is particularly relevant for a country whose economy has been growing slowly over the last decades, has a GDP per capita that represents 80% of the EU average, and a public debt level of 130% of GDP. We believe that in a constantly evolving world, in which only the most innovative remain competitive, governments can play a strategic role as business facilitators |
| Keywords: | Doing business, digital government, Portugal |
| JEL: | O3 D2 H5 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0097&r=cse |
| By: | Alex Bryson; John Forth |
| Abstract: | We examine the impact of management practices on firm performance among SMEs in Britain over the period 2011-2014, using a unique dataset which links survey data on management practices with firm performance data from the UK’s official business register. We find that SMEs are less likely to use formal management practices than larger firms, but that such practices have demonstrable benefits for those who use them, helping firms to grow and increasing their productivity. The returns are most apparent for those SMEs that invest in human resource management practices, such as training and performance-related pay, and those that set formal performance targets. |
| Keywords: | SMEs, small and medium-sized enterprises, employment growth, high-growth firms, productivity, workplace closure, management practices, HRM, recession |
| JEL: | L25 L26 M12 M52 M53 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesrd:488&r=cse |
| By: | Ejermo, Olof (Department of Economic History, Lund University); Toivanen, Hannes (Teqmine) |
| Abstract: | In 2007 Finland changed ownership rights to inventions from its employees – "the professor’s privilege" – to universities. We investigate how this change affected academic patenting using new data on inventors and patenting in Finland for the period 1995- 2010. Matched sample panel data regressions using difference-in-differences show that patenting by individuals dropped by at least 29 percent after 2007. Unlike other countries studied, in Finland the reform was known before implementation. Adding the period after announcement to the reform period increases the drop in academic patenting to 46 percent. Our and others’ results call into question whether the European reform of the professor’s privilege were good innovation policy. |
| Keywords: | academic patenting; Finland; professor’s privilege; university ownership |
| JEL: | I23 I28 O31 O32 O34 O38 |
| Date: | 2018–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2018_006&r=cse |