nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒05‒21
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Heterogeneous Foreign Direct Investment and Local Innovation in Italian Provinces By Andrea Ascani; Pierre-Alexandre Balland
  2. Getting the Facts Right on Born Globals By Ferguson, Shon; Henrekson, Magnus; Johannesson, Louise
  3. The Impact of Exports on Innovation: Theory and Evidence By Philippe Aghion, Antonin Bergeaud, Matthieu Lequien, Marc J. Melitz
  4. Innovation activities of gazelles in business services as a factor of sustainable growth in the Slovak Republic By Dana Benešová; Viera Kubičková; Anna Michálková; Monika Krošláková
  5. Important factors in a nations international competitiveness ranking By Mashabela, Juliet; Raputsoane, Leroi
  6. Industrial cooperation and its influence on sustainable economic growth By Alena Fomina; Oksana Berduygina; Alexander Shatsky
  7. Strategic Management Research in India : Contribution of Top Business Schools during last 5 Years – A Critical Study By Aithal, Sreeramana

  1. By: Andrea Ascani; Pierre-Alexandre Balland
    Abstract: Countries and regions all over the world compete to attract Foreign Direct Investment (FDI) as a way to access knowledge, technology, and boost economic development. Although the literature shows a positive impact of FDI on local economies, little is known about (1) the impact on innovation of neighbouring regions and the type of FDI that generates the strongest learning effects. To fill this gap, this article investigates the relationship between FDI and the innovation capacity of Italian provinces (NUTS3). In order to capture the heterogeneity of FDI in terms of knowledge inputs, we apply the Pavitt categorisation of manufacturing sectors to inward FDI within Italian provinces, thus accounting for the nature and sources of knowledge in different sectors where foreign multinationals are active. Our results suggest that only some specific typologies of inward FDI, such as that in "Science based" sectors and to a lesser extent in "Specialised supplier" activities, benefit local economies. Nevertheless, other types of inward FDI can produce possible negative outcomes in terms of local innovation. We detect only weak evidence on the spatial implications of inward FDI.
    Keywords: foreign direct investment, spillovers, Pavitt taxonomy, FDI heterogeneity
    JEL: O3 F23 R11
    Date: 2018–05
  2. By: Ferguson, Shon (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Johannesson, Louise (Research Institute of Industrial Economics (IFN))
    Abstract: Policymakers in several countries have recently taken steps to promote the rapid export expansion of small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive firms, which are often referred to as born globals. These measures are motivated by studies claiming that born global firms are disproportionately important for job creation and economic growth. Using detailed register data on the universe of Swedish manufacturing firms born between 2001 and 2008, we find that born globals are a very small group of firms whose long-run size and growth do not outperform other exporting firms. Thus, the notion that born globals are superior to firms that follow a more gradual internationalization process, a conclusion largely based on case studies and surveys, does not withstand scrutiny. Policymakers must therefore be aware that encouraging more born globals need not necessarily lead to large benefits for the overall economy, especially in terms of employment.
    Keywords: Born globals; Exporting; Firm growth; Globalization; Job creation
    JEL: F14 F23 L25 M13
    Date: 2018–05–03
  3. By: Philippe Aghion, Antonin Bergeaud, Matthieu Lequien, Marc J. Melitz
    Abstract: This paper investigates the effect of export shocks on innovation. On the one hand a positive shock increases market size and therefore innovation incentives for all firms. On the other hand it increases competition as more firms enter the export market. This in turn reduces profits and therefore innovation incentives particularly for firms with low productivity. Overall the positive impact of the export shock on innovation is magnified for high productivity firms, whereas it may negatively affect innovation in low productivity firms. We test this prediction with patent, customs and production data covering all French manufacturing firms. To address potential endogeneity issues, we construct firm-level export proxies which respond to aggregate conditions in a firm's export destinations but are exogenous to firm-level decisions. We show that patenting robustly increases more with export demand for initially more productive firms. This effect is reversed for the least productive firms as the negative competition effect dominates.
    Keywords: Innovation, trade, export, demand shocks, patents
    JEL: D21 F13 F14 F41 O30 O47
    Date: 2018
  4. By: Dana Benešová (University of Economics in Bratislava); Viera Kubičková (University of Economics in Bratislava); Anna Michálková (University of Economics in Bratislava); Monika Krošláková (University of Economics in Bratislava)
    Abstract: Gazelles create greater share of new jobs in comparison with other businesses operating on the market. These are young businesses of various sizes, but mainly small businesses. They generate a high rate of growth of production within a short time, which is based on the use of innovation, they are also the bearers of innovation. They are characterized by effective use of creativity and human resource capacities. They may be found in all sectors of economy, but to the greatest extent in the services sector and within that sector mainly in business services characterized by high knowledge intensity, high dynamics and continuous growth in employment. Gazelles of business services in the Slovak Republic intensively use all types of innovation. Management ability to optimize innovative processes according to needs of the enterprise seems to be of importance. Human resources and performance is considered to be the most important area of innovation influence. With its innovative activity they act as the accelerator of economy and changes in the thinking and culture of both enterprises, as well as the whole company toward sustainable growth.
    Keywords: sustainable growth,performances,knowledge-intensive services,innovation,gazelles,fast-growing companies,business services
    Date: 2018–03–30
  5. By: Mashabela, Juliet; Raputsoane, Leroi
    Abstract: This paper analyses the importance of competitiveness factors in international competitiveness ranking of South Africa. In particular, the paper investigates the odds in favour of an improved, as opposed to a deteriorated, Overall international competitiveness ranking due to a change in selected competitiveness factors. The results show that the autonomous improvement in Overall international competitiveness ranking is statistically insignificant while the effect of a change in Government efficiency also has a statistically insignificant effect on the odds in favour of an improved Overall international competitiveness ranking. The results further show that a change in Economic performance, Business efficiency and Infrastructure increase the odds in favour of an improved Overall international competitiveness ranking. Finally, a change in Infrastructure has the biggest odds in favour of an improvement in Overall international competitiveness ranking compared to a change in Economic performance and Business efficiency.
    Keywords: Competitiveness factors, International competitiveness ranking
    JEL: C12 E02 F23 I31
    Date: 2018–05–02
  6. By: Alena Fomina (Central Research Institute of Economy Management and Information Systems "Electronics"); Oksana Berduygina (Tyumen Industrial University); Alexander Shatsky (Russian State Social University)
    Abstract: The stability of economic development is determined by the features of the network structure in collaborative engagement of enterprises. Industrial cooperation is just one part of that process; it differs in spatial coverage and range of activity. The complexity of taking into account the synergistic effect that arises in this case stresses the importance of this question from the theoretical and practical points of view. For this purpose, the paper considers the essence of industrial cooperation, some approaches to agglomerative tendencies and conceptual visions of cooperation from the standpoint of institutional theory. The investigation of the influence of cooperation on economic growth is based on several hypotheses. The first one is about the positive correlation between the studied parameters; the second one is about the fact that protection of institutional property rights is an important factor in cooperation development. These theories have been studied within the frame of loglinear model using the table of data about 20 European countries for the forecast period of 2017-2021. The results show that the mature system of industrial cooperation allows providing an additional economic growth at the level of 2.3-3.0%. It is also important to conclude that cooperation enhances the factor impact of the usual determinants of economic growth (working labor, capital and export). The model also takes into account some other possible determinants of economic growth such as expenses on research and development, use of a right of intellectual property and the Index of Economic Freedom. At the same time, a lax regulation in the sphere of property rights protection can become an incentive for co-operators. These and some other provisions determine the ways of enhancing of activity of enterprises for their close collaboration; it is emphasized that the development of co-operational relations has a great impact on competitiveness and sustainability.
    Keywords: sustainable economic growth,industrial cooperation,determinants of economic growth,integrated entities,effects of cooperation
    Date: 2018–03–30
  7. By: Aithal, Sreeramana
    Abstract: Strategic management is a subject added to business management area during 1960-1970 with an intention of supporting top level management of business organizations to suggest a method to fullfill the goals, purpose, and initiatives of the organization. This also includes the formulation and implementation of the objectives of the organization by means of optimum utilization of various resources and by analysing internal and external environment of the organization including its competitors. Number of strategic management models and frameworks are developed by many researchers and practitioners during last 50 years to which supports organizations to identify and face the challenges both internally and externally to the organizations by means of effective utilization of all possible resources in a systematic and smart manner to ensure winning in any situations. Various generic strategies at operational level, business level, and corporate level are identified/developed by many researchers and their effectiveness are tested by means of model development, empirical studies, and also through case analysis. Many institutions of business management are started strategic management division in their faculties and focussed on strategic management research. This paper focuses on the present status of strategic management research in some of top management research institutions in India including many Indian Institute of Managements. The contributions of research & publications of the strategic management divisions of these top business schools for the last 5 years are identified and analysed.
    Keywords: Strategic Management Research in India, Strategic management divisions, Indian business schools, Research publications.
    JEL: I23 M19
    Date: 2018–04–21

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