nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒06‒25
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation and Trade Policy in a Globalized World By Ufuk Akcigit; Sina T. Ates; Giammario Impullitti
  2. Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firmlevel Evidence from Vietnam By Stephan Kyburz, Huong Quynh Nguyen
  3. Agri-food manufacturing sector in Romania –internal sizes and in the European context By Rusali, Mirela-Adriana
  4. From knowledge to business ecosystems: emergence of an entrepreneurial activity during knowledge replication By Amel Attour; Nathalie Lazaric
  5. Knowledge Management in a Higher Education Institutions By Ali Maskur
  6. An environmentally sustainable global economy. A coopetitive model By Carfì, David; Donato, Alessia; Schilirò, Daniele
  7. Italian industrial districts: theories, profiles and competitiveness By Schilirò, Daniele
  8. Entrepreneurial skills and growth of Small and Medium Enterprise (SMEs): A comparative analysis of Nigerian entrepreneurs and Minority entrepreneurs in the UK By Eunice Abdul, Omolara
  9. Public R&D Support and Firms’ Performance. A Panel Data Study By Arvid Raknerud; Diana-Cristina Iancu; Øivind A. Nilsen
  10. Analysis of competitiveness on the market of milk and dairy products in Romania By Nica, Maria

  1. By: Ufuk Akcigit; Sina T. Ates; Giammario Impullitti
    Abstract: How do import tariffs and R&D subsidies help domestic firms compete globally? How do these policies affect aggregate growth and economic welfare? To answer these questions, we build a dynamic general equilibrium growth model where firm innovation endogenously determines the dynamics of technology, market leadership, and trade flows, in a world with two large open economies at different stages of development. Firms’ R&D decisions are driven by (i) the defensive innovation motive, (ii) the expansionary innovation motive, and (iii) technology spillovers. The theoretical investigation illustrates that, statically, globalization (defined as reduced trade barriers) has ambiguous effects on welfare, while, dynamically, intensified globalization boosts domestic innovation through induced international competition. Accounting for transitional dynamics, we use our model for policy evaluation and compute optimal policies over different time horizons. The model suggests that the introduction of the Research and Experimentation Tax Credit in 1981 proves to be an effective policy response to foreign competition, generating substantial welfare gains in the long run. A counterfactual exercise shows that increasing tariffs as an alternative policy response improves domestic welfare only when the policymaker cares about the very short run, and only when introduced unilaterally. Tariffs generate large welfare losses in the medium and long run, or when there is retaliation by the foreign economy. Protectionist measures generate large dynamic losses by distorting the impact of openness on innovation incentives and productivity growth. Finally, our model predicts that a more globalized world entails less government intervention, thanks to innovation-stimulating effects of intensified international competition.
    Keywords: Economic growth ; Short- and long-run gains from globalization ; Foreign technological catching-up ; Innovation policy ; Trade policy ; Competition
    JEL: F13 F43 O40
    Date: 2018–06–15
  2. By: Stephan Kyburz, Huong Quynh Nguyen
    Abstract: Inward foreign direct investment (FDI) is regarded as a key engine of industrial growth and technological progress, especially in emerging markets. Regarding the relevance of geographic proximity between foreign and domestic firms for FDI spillover effects, there is yet little clear evidence, owing to a lack of precise location specific firm-level data. This paper presents the so far spatially most detailed analysis of FDI spillover effects by geo-referencing the census of Vietnamese enterprises for the period 2005 to 2010, allowing us to measure the changing presence of foreign invested firms around each domestic firm. We apply a first-differenced two-stageleast- squares estimator to identify spillover effects from proximate FDI exposure on TFP growth of domestic manufacturing firms. We find positive and significant within-industry (horizontal) spillover effects within radii of 2 to 10 km, that decay beyond. Importantly, in particular small and medium enterprises (SMEs) gain from foreign firms in their vicinity. Furthermore, vertical spillovers through forward and backward linkages to other manufacturing firms are localized, while vertical spillovers from foreign firms in the service sector are less geographically restricted.
    Keywords: foreign direct investment, spillover effects, geographic proximity, horizontal and vertical linkages
    JEL: D22 D24 F23 O12 O14 O33 R11 R32
    Date: 2017–10
  3. By: Rusali, Mirela-Adriana
    Abstract: The sustainability of the food supply of the population in all Member States is a priority objective of the current CAP, with important implications both for ensuring food security and for developing the rural economy. In this context, the European sustainable development economic model promotes based on competitiveness, innovation and knowledge, where a key role lies with the small and medium-sized enterprise sector, due to its great flexibility in adapting the business to new market requirements. The research method used the comparison of the relevant economic and financial indicators for the activity of enterprises in the agro-food industry, in order to analyze the structure and level of development of the sector and to identify possible divergences between Romania and EU-28. The statistical material was provided mainly by Eurostat and NIS - The survey on the activity of the manufacturing enterprises data - NACE Rev.2 codes.
    Keywords: agri-food manufacturing, sustainable development; European Union
    JEL: L6 O5 Q1
    Date: 2017–11–16
  4. By: Amel Attour (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); Nathalie Lazaric (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)
    Abstract: Our article emphasizes the relationship between knowledge and business ecosystems. Transformation of a knowledge ecosystem can lead to the emergence of a technological platform embodying a business ecosystem and providing the resources required especially for firm startup. The role of knowledge replication in an innovation ecosystem is identified through exploratory research and a qualitative case study in the technology hotspot of Sophia-Antipolis. Our findings provide evidence of a new technological trajectory in near field communication ecosystems resulting from a radical transformation of traditional knowledge ecosystems. We show that the role of a knowledge filter is reduced by some public actors and universities acting as the “tenant anchor” and accelerating the replication of knowledge, and the resolution of intellectual property rights issues in emergent business ecosystems. We highlight the critical role of a public actor in enabling the emergence and creation of a business ecosystem, and its involvement in this entrepreneurial activity.
    Keywords: Knowledge ecosystem, entrepreneurial opportunities, technological platform, knowledge replication, academic actor.,entrepreneurial opportunities,technological platform,knowledge replication,academic actor
    Date: 2018–04–13
  5. By: Ali Maskur (Faculty of Administrative Science, University of Brawijaya Author-2-Name: Siswidiyanto Author-2-Workplace-Name: Public Administration Department Universitas Brawijaya, MT. Haryono Road 163, 65145, Malang, Indonesia Author-3-Name: Hermawan Author-3-Workplace-Name: Public Administration Department Universitas Brawijaya, MT. Haryono Road 163, 65145, Malang, Indonesia Author-4-Name: Choirul Saleh Author-4-Workplace-Name: Public Administration Department Universitas Brawijaya, MT. Haryono Road 163, 65145, Malang, Indonesia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective – This study examines the concept of knowledge management in higher education institutions, followed by a systematization of knowledge practices and tools to link several stakeholders in the process of knowledge management in higher education institutions and promote knowledge sharing across several key processes and services in higher education institutions. Methodology/Technique – This study uses a mixed approach of qualitative and quantitative methods. The respondents include stakeholders in public administrative departments between the ages of 30 and 66. The number of respondents represents 20 to 30% of the total population. This study concludes that in general, the Department of Public Administration Universitas Brawijaya has successfully implemented the concept of knowledge management. However, a lack of knowledge and stakeholder acceptance has lead to less effective implementation. Findings – This research suggests that there is a need for new strategies to improve stakeholders' knowledge and acceptance of Department and University strategies. Novelty – The study proposes a framework to improve knowledge sharing and collaboration in higher education institutions, fostering an environment of continuous learning and discovery. The study also makes conclusion and suggestions for future work.
    Keywords: Higher Education; Knowledge Management; Knowledge Sharing; Knowledge Collaboration; Public Administration.
    JEL: I23 O34
    Date: 2018–04–14
  6. By: Carfì, David; Donato, Alessia; Schilirò, Daniele
    Abstract: This paper proposes a model representing a global economy which aims to become environmentally sustainable. The model looks both at the production side and the consumption side of the economy. Regarding the production side, the suggested model considers investment and innovation in climate technologies, whereas on the side of the consumption it takes into account economic and policy instruments to change the patterns of consumption of the households. The model follows a game theory approach and applies a theoretical framework à la Cournot. The results of the paper are the following: the model provides win-win solutions, namely strategic situations in which each country takes advantages by cooperating and competing at the same time within the global economy, and where each country gets a positive return. In fact, the model shows the convenience for each country to cooperate and suggests the implementation of policies in order to satisfy the basic requirements of 2030 Agenda for Sustainable Development, in terms of production, consumption and climate change.
    Keywords: Climate Change; Environmental Sustainability; Model à la Cournot; Coopetitive Games; Green Economy
    JEL: C71 C72 C78 Q40 Q48 Q50
    Date: 2018–06
  7. By: Schilirò, Daniele
    Abstract: The paper is a contribution to the debate about the theoretical aspects, the structure, and the competitiveness of Italian industrial districts. The work first examines the theoretical strand on industrial districts ranging from Marshall to Becattini, and focusing on the contemporary distrettualism of Giacomo Becattini, where the district is essentially a socio-economic construct and an important localized productive system. Furthermore, the paper offers an updated picture of the Italian industrial districts as they are represented in the 2011 Census by the National Statistics Institute. Finally, this study underlines the resilient competitive capacity of this typical form of industrial organization. Then, through empirical literature, it analyzes the Italian district companies, and their performance and success in foreign markets, especially with regard to “Made in Italy” products.
    Keywords: Industrial districts; Italian SME; exports; competitiveness
    JEL: D0 M0 M1 M20
    Date: 2017–11
  8. By: Eunice Abdul, Omolara
    Abstract: The significance of Small and Medium Enterprises (SMEs) to an economy development of a country cannot be ignored. Therefore, the growth of a business depends on the development of abilities needed to execute a smooth running of day to day business activities. Research established the fact that the flat economy growth of region relies on the extent of trade activities in the area. Given this importance of enterprise, this present study aims at developing an understanding of the influence of entrepreneurial skills on SMEs in Nigeria compare with the UK, as perceived by SME owners. The research will benefit the researcher, SME owners in Nigeria, Policymakers, and other researchers. Data collection was through an online survey questionnaire, and it was administered to a population of 38 SME owners both in Nigeria and in the UK. The research followed judgmental sampling techniques to explore their experience, beliefs, and attitudes to entrepreneurial skills because of the limited time frame. Moreover, this survey was used to validate the study conceptual framework and establish an insight on the opinion of business owners of the context. The study findings were that entrepreneurial skills have a significant influence on the growth of SMEs in Nigeria and the UK. However, the respondent in Nigeria and the UK agreed that creative thinking, Problem solving and communication skills are critical for increase sales and competitive advantage. Moreover, the respondent in Nigeria strongly agrees that high level of creative thinking with a bit of problem solving and communication skills will SMEs growth. By contrast, UK minority entrepreneurs argue that great creative thinking and a balance of problem solving and communication skills are critical to SMEs growth.
    Keywords: Entrepreneurship, Small and Medium Enterprise (SME), Entrepreneurial Skills, Creative Thinking, Leadership, Problem-Solving, Teamwork, and Communication
    JEL: L20 L21 L25 L26 M13 M19
    Date: 2018–03–19
  9. By: Arvid Raknerud; Diana-Cristina Iancu (Statistics Norway); Øivind A. Nilsen
    Abstract: We analyse all the major sources of direct and indirect R&D subsidies in Norway in the period 2002- 2013 and compare their effects on individual firms’ performance. Firms that received support are matched with a control group of firms that did not receive support using a combination of stratification and propensity score matching. Changes in performance indicators before and after support in the treatment group are compared with contemporaneous changes in the control group. We find that the average effects of R&D support among those who obtained grants and/or subsidies are positive and significant in terms of performance indicators related to economic growth: value added, sales revenue and number of employees. The estimated effects are larger for start-up firms than incumbent firms when the effects are measured as relative effects (in percentage points), but smaller when these effects are translated into level effects. Finally, we do not find positive effects on return to total assets or productivity for firms who received support compared with the control group.
    Keywords: Public policy; Firm performance; Treatment effects; Stratification; Propensity score matching; Productivity
    JEL: C33 C52 D24 O38
    Date: 2018–06
  10. By: Nica, Maria
    Abstract: The dairy sector is indispensable for the overall development of an economy because it provides a vital link between agriculture and industry. This helps diversify and market agricultural products; increases farmer income; creates markets for food exports, and generates more employment opportunities. The purpose of this paper will be to identify consumers' preferences for these products, the reasons for non-consumers, the wishes of consumers, the economic and financial situation of the main milk and dairy producers, the competitive dairy market as well as the information revealed by the consumer profile questionnaire sources of information and brands known to consumers. The stage of the milk and dairy market in Romania will be assessed, and then the competitiveness on the milk and dairy market in Romania will be analysed. Competitiveness requires special attention, each company has to compare products, prices, promotion and have competitive advantages constantly. In order to determine competitiveness, marketing researches on consumer preferences for milk and dairy products will be used; at the same time, the economic and financial performance of the main economic agents on this market will be analysed. The end of this study will be concretized by the comparative analysis of consumer preferences and the order of companies offered by their economic performance.
    Keywords: competitiveness, milk market, economic performance, marketing research
    JEL: Q12 Q13
    Date: 2017–11–16

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