nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒04‒30
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Academic Inventors and the Antecedents of Green Technologies. A Regional Analysis of Italian Patent Data. By Quatraro, Francesco; Scandura, Alessandra
  2. Absorptive capacity in New Zealand firms: Measurement and importance By Richard Harris; Trinh Le
  3. The Impact of Management Practices on SME Performance By Forth, John; Bryson, Alex
  4. The locations of innovation: Revising a planning tool for campus development across thirty-nine cases in industrialised countries. By Flavia Curvelo Magdaniel
  5. Investigation of Business Strategies in Higher Education Service Model of Selected Private Universities in India By Aithal, Sreeramana; Kumar, Anil; M, Madhushree; R, Revathi
  6. Do Financial Constraints Hamper Environmental Innovation Diffusion? An Agent-Based Approach By Paola D’Orazio; Marco Valente
  7. The International Competitiveness of Chinese Construction Firms By Puying Li; Ali Parsa; Simon Huston; Anil Kashyap; Jim Kempton
  8. Growth, heterogeneous technological interdependence,and spatial externalities: Theory and Evidence By Miranda, Karen; Manjón Antolín, Miguel C.; Martínez Ibáñez, Oscar
  9. Self Confidence Spillovers and Motivated Beliefs By Ritwik Banerjee; Nabanita Datta Gupta; Marie Villeval
  10. Innovation-based regional structural change: Theoretical reflections, empirical findings and political implications By Koschatzky, Knut

  1. By: Quatraro, Francesco; Scandura, Alessandra (University of Turin)
    Abstract: This work investigates the generation of green technologies (GTs) in Italian NUTS 3 regions across time, by focusing on the knowledge generation mechanisms underlying the creation of green patents. Firstly, we hypothesize that inventions in non-green technological domains positively influence the generation of GTs, because the latter occur as the outcome of a recombination process among a wide array of technological domains. Secondly, we hypothesise that the involvement of academic inventors in patenting activity bears positive effects on the generation of GTs, because they are able to manage the recombination across different technological domains. Thirdly, we explore the interaction effect between academic inventors’ involvement and non-green technologies to investigate whether the former are especially relevant in presence of higher or lower levels of the latter. We estimate zero-inflated negative binomial, spatial durbin and logistic regressions on a dataset of 103 Italian NUTS 3 regions for which we collected patent and regional data for the time span 1998-2009. The results suggest that both academic inventors and spillovers from polluting technologies bear positive direct effects on the generation of GTs; moreover, we find that academic inventors compensate for low levels of spillovers.
    Date: 2018–04
  2. By: Richard Harris (Durham University Business School and New Zealand Productivity Commission); Trinh Le (Motu Economic and Public Policy Research)
    Abstract: To the best of our knowledge, this paper reports the first set of nationally representative results on the importance of ‘absorptive capacity’. Absorptive capacity is generally defined as a firm's ability to internalise external knowledge. Using data principally from the New Zealand Business Operations Survey, we measure absorptive capacity across a 10-year period and investigate if it remains stable in the long term. This is followed by considering how firms’ characteristics vary across levels of absorptive capacity and most importantly whether such capacity determines firms’ productivity performance across the primary, manufacturing and service sectors. Our results show that relative to other influences, absorptive capacity as measured here has a substantial influence on exporting, innovation, and undertaking R&D. Set against relatively poor performance, the paper concludes with a discussion of how government should consider helping firms to boost their levels of absorptive capacity.
    Keywords: Exports; R&D; innovation; absorptive capacity
    JEL: L25 O24 O32 R11
    Date: 2018–02
  3. By: Forth, John (National Institute of Economic and Social Research (NIESR)); Bryson, Alex (University College London)
    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
  4. By: Flavia Curvelo Magdaniel
    Abstract: Innovation is a buzzword promoting urban development and many public/private resources are invested in developing particular areas. Since the late 1950s, campuses have been the most popular areas developed to stimulate innovation in many industrialised regions. Many campuses developed as isolated locations in the periphery of cities. With the increased urbanisation processes, some of these locations are already in the inner city or adjacent to urban areas. More recently, the perception of cities as the natural environments for innovation is leading towards an urban shift in innovation-driven area development.Either way, this practice has been influenced by the assumption that geographical proximity plays a central role in the creation, diffusion and application of knowledge, which is widely discussed in economic geography. Accordingly, there has been a theoretical debate on whether diverse or specialised environments are more favourable for innovation (i.e. cities or regional clusters respectively). Although ‘diversity’ is considered an essential aspect of innovation processes, the existing research explaining which type of environment is more beneficial to innovation is inconclusive. This ambivalence poses challenges for stakeholders involved in campus development. On the one hand, planners and developers of new areas struggle with location decisions since different locations have associated advantages and/or disadvantages in stimulating innovation. On the other hand, managers of existing campuses deal with implementing strategies to support their goal of stimulating innovation at chosen and/or given locations.This paper aims to support strategic decisions in the development of new and existing campuses intended to stimulate innovation based on different location alternatives. This paper assesses a planning tool that proposes relevant aspects to stimulate innovation in different locations (Curvelo Magdaniel, 2016). This tool is used to analyse and compare 39 campuses with different locations characteristics across industrialised countries.Findings reveal five types of location patterns in existing campuses developed to stimulate innovation. These patterns show differences in connectivity aspects outlined in the tool as relevant for innovation. These findings demonstrate the usefulness of this planning tool, which considers location as a relevant decision shaping campus development and other innovation-driven area developments.
    Keywords: Campuses; Innovation; Knowledge economy; Location; Urban Development
    JEL: R3
    Date: 2017–07–01
  5. By: Aithal, Sreeramana; Kumar, Anil; M, Madhushree; R, Revathi
    Abstract: Many Countries in the globe have adopted private University system as a part of their higher education offering strategy. India, being second in the number of private universities in the World, has given exactly 50 % shares to privately governed Universities (Private & Deemed to be universities together) and remaining 50% are Govt. Funded universities (Central & State Govt. together). Presently in India, there are 264 private universities spread over 22 states. Due to non-availability of any financial support from the state and central governments, private universities are trying to sustain through their only strategy of service differentiation through 21st century curriculum and industry integrated programme design. In this paper, we have studied the business strategies of some of the private universities in India which include Admission Strategies, Growth strategies, Innovative strategies, Research Strategies, Collaboration Strategies, Placement Strategies, and Technology adoption strategies to add competitive values to services provided to the stakeholders The paper also suggests some recommendations based on the observations and intuition to contribute to the business strategies to improve the performance and brand image of private universities.
    Keywords: Private universities, Business strategies, Admission strategies, Growth strategies, Research strategies, Collaboration strategies, Placement strategies, Technology adoption strategies.
    JEL: A21 A23 I2 I23 O31
    Date: 2018–03–03
  6. By: Paola D’Orazio (Lehrstuhl für Makroökonomik, Faculty of Economics and Management, Fakultät für Wirtschaftswissenschaft, Ruhr-Universität Bochum, Universitätsstraße 150, 44801 Bochum (Germany).); Marco Valente (Dipartimento di Ingegneria Industriale e dell’Informazione e di Economia, University of L’Aquila (Italy); LEM Sant’Anna, Pisa (Italy); SPRU, University of Sussex (UK) and Ruhr-Universität Bochum (Germany).)
    Abstract: We develop a model that combines evolutionary economics concepts and methods with environmental economics concerns. The model is populated by consumers, heterogeneous firms, and a financial sector and is used to investigate the dynamic interactions between the demand and supply side, and the role played by binding financial constraints, in the diffusion of environmental innovations. The aim of the model is to understand how environmental goals can be effectively promoted and achieved in presence of a financial sector whose lending attitude is guided by long-termism rather than shorttermism. We show that financial constraints act as a deterring barrier and affect firms’ innovation strategies as well as the evolution of technological paradigms. When financial constraints are less binding, firms do not perceive hindrances to the adoption of eco-innovation and, as a result, the presence of the average green technology in the market increases.
    Keywords: Environmental Innovation, Agent-based Computational Economics, Financial Barriers, Green Finance, Short-termism, Deterring barriers, Credit constraints.
    Date: 2018–04
  7. By: Puying Li; Ali Parsa; Simon Huston; Anil Kashyap; Jim Kempton
    Abstract: Many large Chinese Construction Firms (CCFs) have been entering and developing the overseas construction markets in line with the development of the integration of global economies since 1950s. However, two aspects affect CCFs developed their international construction market. One aspect is that many factors in the current dynamic global construction market, which may affect Chinese firms expanding their businesses overseas. The other one aspect is practical competitiveness framework for CCFs’ overseas business still absent. Therefore, it is necessary to establish a framework to analyse and improve Chinese construction firms’ international competitiveness.The aim of this PhD research is to investigate factors influencing the competitiveness of Chinese construction firms in the global market.This paper establishes a framework for improving Chinese construction firms’ international competitiveness via analysis of both quantitative and qualitative data employing a sequential explanatory strategy. Quantitative data is used to explore the top global construction firms and the key issues in the global construction market. Qualitative data is used to identify the key competitiveness indicators (KCIs) from the academic literature review and the annual reports and web pages of top global construction firms, and thus, a preliminary competitiveness framework was established by the secondary data. The Modified-Delphi method was applied in the interview to investigate the KCIs of a construction firm’s international operations, in order to refine the preliminary framework and then establish a new competitiveness framework for CCFs.
    Keywords: Chinese construction firms; Competitiveness framework; Key competitiveness indicators; Modified-Delphi method
    JEL: R3
    Date: 2017–07–01
  8. By: Miranda, Karen; Manjón Antolín, Miguel C.; Martínez Ibáñez, Oscar
    Abstract: We present a growth model with interdependencies in the heterogeneous technological progress, physical capital and stock of knowledge that yields a growth-initial equation that can be taken to the data. We then use data on EU-NUTS2 regions and a correlated random effects specifi cation to estimate the resulting spatial Durbin dynamic panel model with spatially weighted individual effects. QML estimates support our model against simpler alternatives that impose a homogeneous technology and limit the sources of spatial externalities. Also, our results indicate that rich regions tend to have higher \unobserved productivity" and are likely to stay rich because of the strong time and spatial dependence of the GDP per capita. Poor regions, on the other hand, tend to enjoy \unobserved productivity" spillovers but are like to stay poor unless they increase their saving rates. Keywords: correlated random effects, Durbin model, economic growth, spatial panel data. JEL Classifi cation: C23, O47
    Keywords: Anàlisi de dades de panel, Creixement econòmic, 33 - Economia,
    Date: 2018
  9. By: Ritwik Banerjee (IIMB - Indian Institute of Management [Bangalore]); Nabanita Datta Gupta (Aarhus University [Aarhus]); Marie Villeval (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Is success in a task used strategically by individuals to motivate their beliefs prior to taking action in a subsequent, unrelated, task? Also, is the distortion of beliefs reinforced for individuals who have lower status in society? Conducting an artefactual field experiment in India, we show that success when competing in a task increases the performers' self-confidence and competitiveness in the subsequent task. We also find that such spillovers affect the self-confidence of low-status individuals more than that of high-status individuals. Receiving good news under Affirmative Action, however, boosts confidence across tasks regardless of the caste status.
    Keywords: Motivated beliefs, spillovers, self-confidence, competitiveness, Affirmative Action, experiment
    Date: 2018–04–06
  10. By: Koschatzky, Knut
    Abstract: The objective of this paper is to broaden the knowledge base on the topic of innovation-based regional structural change and to discuss the possibilities of raising structurally weak regions to a dynamic growth path by means of innovation-promoting measures. The background to this objective are political developments in Germany with regard to the development of a comprehensive German support system for structurally weak regions from 2020 onwards. While regional structural support (ERDF and German regional support) is so far essentially concentrated on regions in the eastern federal states, it should focus in future on structurally weak regions in all federal states and eliminate the differentiation between eastern and western Germany (Deutscher Bundestag 2016, 4). The experience gained in the eastern German states with the focus on innovation as a driver of structural change is intended to provide a starting point here, but taking into account the fact that some structural factors differ markedly between East German and West German regions. Against this background, this paper focuses on the innovation policy component of a system for promoting structural change in structurally weak regions.
    Date: 2018

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.