nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒07‒23
eleven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The source of the US /EU Productivity Gap:Less and less effective R&D By Davide Castellani; Mariacristina Piva; Torben Schubert; Marco Vivarelli
  2. Sustainability Business Model: a case study of the evolution of activity system by eco-design and eco-innovation practices to value wine production By Hiam Serhan; Gwenola Yannou-Le Bris
  3. Beyond R&D:The role of embodied technological change in affecting employment By Gabriele Pellegrino; Mariacristina Piva; Marco Vivarelli
  4. The impact of management practices on SME performance By John Forth; Alex Bryson
  5. Public R&D Support and Firms’ Performance A Panel Data Study By Nilsen, Øivind A.; Raknerud, Arvid; Iancu, Diana-Cristina
  6. The moral consequences of economic growth on the local business development: A case of Phitsanulok investigation By Bhagaporn Wattanadumrong; Nattachet Poonchareon; Warawude Rurkwararuk
  7. Human Capital as a Source of Social and Economic Development in Modern Conditions By Aganbegyan, Abel; Kleeva, Lyudmila; Krotova, Nadezhda
  8. Strengthening innovation in Poland By Nicola Brandt
  9. European Industrial Energy Intensity: The Role of Innovation 1995-2009 By Ajayi, V.; Reiner, D.
  10. Determinants of FDI Attraction in the Manufacturing Sector in Mexico, 1999-2015 By Fonseca Felipe J.; Llamosas-Rosas Irving
  11. ICT investment and economic growth in India: An industry perspective By K L Krishna; Abdul A Erumban; Bishwanath Goldar; Deb Kusum Das; Suresh Chand Aggarwal; Pilu Chandra Das

  1. By: Davide Castellani; Mariacristina Piva; Torben Schubert; Marco Vivarelli
    Abstract: Using data on the US and EU top R&D spenders from 2004 until 2012, this paper investigates the sources of the US/EU productivity gap. We find robust evidence that US firms have a higher capacity to translate R&D into productivity gains (especially in the high-tech industries), and this contributes to explaining the higher productivity of US firms. Conversely, EU firms are more likely to achieve productivity gains through capital-embodied technological change at least in medium and low-tech sectors. Our results also show that the US/EU productivity gap has worsened during the crisis period, as the EU companies have been more affected by the economic crisis in their capacity to translate R&D investments into productivity. Based on these findings, we make a case for a learning-based and selective R&D funding, which - instead of purely aiming at stimulating higher R&D expenditures - works on improving the firms' capabilities to transform R&D into productivity gains.
    Keywords: R&D; productivity; economic crisis; US; EU
    Date: 2018–06–17
  2. By: Hiam Serhan (AgroParisTech); Gwenola Yannou-Le Bris (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)
    Abstract: Innovation, sustainability, sustainability innovations are the challenges that today's businesses are facing. While many scholarly researches have produced a great deal of useful knowledge about various forms of sustainability and innovation and their integration in business models, there has been no attention given to the process through which a business activity model evolves from a quality management system to a sustainability business model. In this paper, through a case study, we address this gap in research by focusing on the evolution of management practices related to the dynamics of new knowledge introduced by management innovations, i.e. the implementation of management tools, ideas, processes and practices in organizations, intended to alter the way in which the managerial work is performed and to further organizational goals. Building on Engeström theoretical model of activity system and expansive learning, we show how a French wine Château has learned to improve its capabilities to reinvent its business model through the implementation of ISO standards and created sustainability values to its products, services and customers. Our results show how sustainable development is achieved through the implementation of eco-design and eco-innovation practices. They also show that sustainability in business models and practices is a dynamic and expansive learning mechanism. It is leveraged by management tools and management philosophy that help organizations exploiting their good practices, and exploring and seizing in their environment and among their key partners, the opportunities that can reconfigure the value of their products and services.
    Keywords: Business model, Eco-conception, Eco-innovation, Management,innovation, Sustainability, Value creation,Track: Governance,Word count: 9612 words,2
    Date: 2018–04–12
  3. By: Gabriele Pellegrino; Mariacristina Piva; Marco Vivarelli
    Abstract: In this work, we test the employment impact of distinct types of innovative investments using a representative sample of Spanish manufacturing firms over the period 2002-2013. Our GMM-SYS estimates generate various results, which are partially in contrast with the extant literature. Indeed, estimations carried out on the entire sample do not provide statistically significant evidence of the expected labor-friendly nature of innovation. More in detail, neither R&D nor investment in innovative machineries and equipment (the so-called embodied technological change, ETC) turn out to have any significant employment effect. However, the job-creation impact of R&D expenditures becomes highly significant when the focus is limited to the high-tech firms. On the other hand - and interestingly - ETC exhibits its labor-saving nature when SMEs are singled out.
    Keywords: Innovation; R&D; Embodied Technological Change; Employment; GMM-SYS
    Date: 2018–06–17
  4. By: John Forth (National Institute of Social and Economic Research); Alex Bryson (University College London, National Institute of Social and Economic Research and Institute for the Study of Labor)
    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: 2018–05–01
  5. By: Nilsen, Øivind A. (Dept. of Economics, Norwegian School of Economics and Business Administration); Raknerud, Arvid (Statistics Norway); Iancu, Diana-Cristina (Statistics Norway)
    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: 2018–06–20
  6. By: Bhagaporn Wattanadumrong (Naresuan University); Nattachet Poonchareon (Department of Economics Faculty of Business, Economics and Communications, Naresuan University); Warawude Rurkwararuk (Department of Business Administration Faculty of Business, Economics and Communications, Naresuan University)
    Abstract: This paper analyses regional investment in Phitsanulok Province located in the lower north of Thailand. Using data for 3,623 local business registered from 1906 to 2015. This study examines their performance of the city growth and socio-economic problems to promote entrepreneurship based on locally-owned (LOEs) enterprises and nonlocally-owned (NLOEs) enterprises. The key determinants are identified using a unique assembled data recorded by local authority recording and comprising all local business sectors over time. The descriptive analytical approach will be applied to full sample (all sectors) and other relevant issues (capital based, size of business into SMEs; Small Medium Enterprises). Most enterprises are small business; while, there are few medium and large sizes in the community areas.The aim of the research is to explore the evolution of local business development in the province and the major determinants to increase the investment into local. The quantitative approach has been investigated together with face to face interview from the purposive samples by sectors. The results show that local entrepreneurs experience the high competitiveness from outsides especially from the large and medium nonlocally-owned enterprises. The development of entrepreneurship in the areas based of Phitsanulok has gradually changed. The huge capital investment from outside has injected into the areas. The phenomenon how the small ? medium enterprises will be survived from the large enterprises dominated into the areas has to be discussed in terms of policy priority actions and the economic and social instruments at the level of economic entities of local business development in the areas. This study briefly examines the city growth of businesses? existence and its changes over time. This approach can be applied to analyze the city growth at provincial-level of the country.
    Keywords: regional investment, SMEs, Phitsanulok, local business development
    JEL: O18 M21 L26
    Date: 2017–07
  7. By: Aganbegyan, Abel (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kleeva, Lyudmila (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Krotova, Nadezhda (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper analyzes the features of Russia's social and economic development in recent decades. Assessing the quality of economic growth in Russia, identifying its main sources, as well as the reasons that hamper socio-economic development, have made it possible to identify key opportunities for activating and improving the quality of economic growth by stimulating the development of human capital.
    Date: 2018–06
  8. By: Nicola Brandt
    Abstract: Poland’s catch up with other OECD country has been largely based on productivity growth resulting from restructuring towards more productive sectors and foreign technology absorption. The economy’s own innovation capacity is relatively weak, with low investment in research and development, no tradition of commercialising research and very limited innovation activity within firms. The government plans a higher education reform to strengthen the quality of research output, science-industry cooperation and international collaboration, which are all weak. Considerable EU funding is available to support innovation. Most of it is conditioned on science-industry co-operation, which is showing initial benefits. A lively start-up scene is gradually emerging, and the government foresees considerable public support for venture capital financing. Yet, investment in higher education and research trails behind economies that have been able to build strong science and high-tech start-up activity. Poland’s many small and medium-sized enterprises have particularly low productivity, partly related to weaknesses in vocational training and adult education, as too many workers have weak basic and digital skills. The government's education reform and digital strategy address some of these issues.
    Keywords: higher education, innovation, Poland, research and development, vocational education
    JEL: I23 O31 O32 O4
    Date: 2018–06–29
  9. By: Ajayi, V.; Reiner, D.
    Abstract: We investigate the direct role of technological innovation and other influencing factors on industry-level energy intensity based on a sample of 12 industries across 17 EU countries over 1995–2009. We develop an innovative industry-level patent dataset and find compelling evidence that patent stock negatively influences industrial energy intensity. Using a fixed effects estimator, we find a much stronger effect on energy-intensive industries with an estimated coefficient of -0.138 almost double that of less energy-intensive industries (estimated at -0.085). While our results show energy price remains the major determinant of energy intensity, the chemicals industry appears to be more susceptible to energy prices relative to other energy-intensive industries that are covered by the EU Emissions Trading Scheme (ETS). Our study reveals that asymmetric response of energy intensity to energy prices in which price rises between 2004 and 2008 accounts for more change in efficiency than when prices fall. We also explore regional differences, notably that carbon tax policy in Northern European countries, which began in the early 1990s, is responsible for a significant fraction of the decline in energy intensity in Northern Europe.
    Keywords: Industrial energy intensity, innovation, energy price, carbon tax
    JEL: O13 C33 Q41 Q55
    Date: 2018–06–19
  10. By: Fonseca Felipe J.; Llamosas-Rosas Irving
    Abstract: Using an up-to-date database that improves the identification of the destination of the Foreign Direct Investment (FDI) among Mexican states and spatial panel econometric models that quantify the potential interactions and spillover effects, we analyze the main characteristics that help understand the regional distribution of manufacturing FDI in Mexico. Our main findings indicate the presence of a positive spatial relationship among states' FDI; for example, a higher investment creates a positive spillover effect on neighboring states' FDI and positive direct and indirect effects of human capital, agglomeration and states' fiscal margin. Based on the results of this research, key implications for public policy oriented to strengthen the FDI reside in increasing the average education level and improving tax revenue of Mexican states.
    Keywords: FDI;spatial panel econometric models;spillover effects
    JEL: C21 C23 R12
    Date: 2018–06
  11. By: K L Krishna (Centre for Development Economics, Delhi School of Economics); Abdul A Erumban (The Conference Board and University of Groningen); Bishwanath Goldar (Former Professor, Institute of Economic Growth, Delhi, India); Deb Kusum Das (Ramjas College, University of Delhi, India); Suresh Chand Aggarwal (Former Professor, Department of Business Economics, University of Delhi, South Campus, India); Pilu Chandra Das (Kidderpore College, University of Calcutta)
    Abstract: The role of information and communication technologies (ICT) in driving economic growth has been well established in the literature. By reducing communication and transaction costs, and improving the quality of capital, ICT helps firms improve their productivity and growth. Given her linguistic and engineering skills, India has been pioneering in ICT exports, in particular export of software services since the 1990s. However, there is hardly any attempt to understand how Indian industries have been taking advantage of the massive growth potential of ICT use in their production process, looking into the experiences of different industries. This has been primarily constrained by lack of adequate, disaggregated data on the ICT use by industries. While there are a few studies trying to understand the contribution of ICT to aggregate economic growth, almost no study has attempted to unearth the role of ICT at detailed industry level. This paper is a first attempt to construct ICT investment series for the registered or organized segment of manufacturing industries in India, and one of the first few attempts that have made so far to build such ICT series for the aggregate Indian economy. The study extends the capital asset database in India KLEMS to include ICT investment, i.e. investment in hardware, software and communication equipment, in respect of different manufacturing industries. The paper also provides preliminary estimates of the contribution of ICT capital to growth in aggregate economy and registered manufacturing sector.
    Keywords: India; economic growth; information technology; ICT; organized manufacturing; industry-wise investment, aggregate economy
    Date: 2018–03

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