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on Economics of Strategic Management |
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Issue of 2018‒08‒27
twelve papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | David Autor (Massachusetts Institute of Technology); David Dorn (University of Zurich); Gary Pisano; Gordon Hanson (University of California, San Diego); Pian Shu (Georgia Institute of Technology) |
| Abstract: | The competitive shock to the U.S. manufacturing sector spurred by rising China import competition could either catalyze or stifle innovation. Using three distinct sources of variation to identify rising trade exposure, we provide a causal analysis of the effect of surging import competition on U.S. innovative activities. Applying a novel internet-based matching algorithm to map all U.S. utility patents granted by 2013 to firm-level data, and carefully accounting for the shifting concentration of patenting activity across sectors, we document a robust, negative impact of rising Chinese competition on firm-level and technology class-level patent production. Accompanying this fall in innovation, global employment, sales, profitability, and R&D expenditure all decline within trade-exposed firms. The trade-induced contraction along all margins of adjustment and for all measures of valuation suggest that the primary response of firms to greater import competition is to scale back their global operations. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:239&r=cse |
| By: | Margarian, Anne; Lankau, Matthias; Lilje, Alena |
| Abstract: | This report summarises the results of the sub-project “Local strategies for economic development” of the European Research Project TRUSTEE that ran from 2014 to 2016. Against the background of the expected scarcity of professional workers, the Lower Saxon food industry is used as an example to show how local job markets impact mainly small and medium size enterprises (SMEs) in terms of strategies and developments (1); to what extent businesses can achieve independence from the local job market (2); how the businesses, on their part, influence the local job markets (3). The study design includes three core elements: In the summer 2015 a standardized survey was carried out in the food industry in Lower Saxony with 200 responding firms. In autumn 2015 and winter 2015/16 workshops on the topic of professional staff needs were organized, documented and afterwards evaluated in a rural and in a more urban region of Lower Saxony. Finally, interviews were conducted with participants on the regional continuing education landscape in selected lower Saxon regions in the early summer 2016. The regional workshops have shown that the job market actors in the case study regions see their development as limited due to the declining number of available qualified labour. Particularly affected were meat processing firms and large companies which require special qualifications and undertake large growth steps. Efforts to improve the situation are undertaken including the improvement of the attractiveness of jobs and training offers, international recruiting, improvement of internal staff development and increased cooperation between the different employment institutions and the companies. However, the preparedness or the ability to contribute, particularly in small businesses, is often low because of their limited management resources. The example of the participating large businesses has, however, shown that businesses with adequate resources can become partially independent from limited job markets due to their greater attractiveness as employers. One requirement is that they do not rely upon the advantages of their size. On the other hand, due to their specific qualification requirements and greater growth steps, sometimes they are also strongly affected by a scarcity of local professionals. The study of the regional continuing education landscape has shown that the regional further training offerings are not so much adapted to the specific needs of local businesses in either a qualitative or quantitative perspective, but rather much more influenced by the individual targeting of the employment administration, by the presence or absence of chambers of commerce and other providers and by the competition between providers. The desire and ability of smaller businesses from low-technology sectors like the food processing industry to have a targeted impact on the further training offerings is quite low. The main focus of the report is on an extensive presentation of the survey results. These confirmed that the business development is much more strongly affected by firm-level determinants than by the local environment. Free resources and established leadership structures favour the establishment of effective management measures and routines, which, for their part lead to successful communication in the company and an according transfer of knowledge and innovative ability. Only in very small businesses can a lack in formal structure be compensated partially with spontaneous communication. From the different requirements on business management originates a critical growth threshold for small businesses, where new management competence and new staff have to be acquired. If this is successful, the positive development is less likely to be slowed by a shortage in the labour market because growing businesses have fewer recruitment problems than do stagnated or shrinking businesses. Thus structural change due to labour market development tends to be faster and more to the favour of more competitive businesses. Small businesses in rural regions with lower competitive pressure can possibly have more opportunity to overcome the critical growth threshold than do small businesses in urban centres, but only when they succeed in developing their internal labour market. Here, targeted support of continuing education and business consulting provide a toehold for help within the framework of the existing system. |
| Keywords: | Crop Production/Industries, Labor and Human Capital |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwo:266399&r=cse |
| By: | Nilsen, Øivind Anti (Norwegian School of Economics); Raknerud, Arvid (Statistics Norway); Lancu, 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 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11651&r=cse |
| By: | Connie Bayudan-Dacuycuy; Lora Kryz C. Baje |
| Abstract: | Innovation is the synergistic use of resources, technology, capital, and information to achieve growth at different levels of the economy. Many studies abroad have already supported the hypothesis that innovation leads to a good firm performance and long-term economic growth. In the Philippines, some studies already analyzed the effects of simple innovations on firm performance. However, emerging literature shows that complex innovation strategies have bigger impacts than simple ones. This paper analyzes the effects of simple and complex innovations on labor productivity and employment growth. Results show that there is no single best innovation strategy that a firm must undertake. However, if firms are constrained by their budget, a simple innovation will help in improving labor productivity and, to some extent, employment growth. Firms that do not face cost issues can benefit more from adopting a complex innovation strategy. In addition, several specific types of complex innovation strategies can be adapted depending on whether the firm aims to increase its employment or to boost its labor productivity. |
| Keywords: | labor productivity, Philippines, innovation, employment growth, simple innovation, complex innovation |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2018-09&r=cse |
| By: | Murat Celik (University of Toronto); Xu Tian (University of Toronto) |
| Abstract: | Whether a CEO manages the innovation efforts of the firm in line with shareholder preferences has a substantial impact on market value and firm growth, which in turn influence aggregate productivity growth and welfare. Using data on U.S. public firms, we find that (i) firms with better corporate governance tend to adopt highly incentivized contracts rich in stock options; and (ii) such contracts are more likely to lead to disruptive innovations -- patented inventions that are in the upper tail of the distribution in terms of quality and originality. We develop and estimate a new dynamic general equilibrium model of firm-level innovation with agency frictions and endogenous determination of executive contracts. The model is used to study the joint dynamics of corporate governance, managerial compensation, and disruptive innovations. Better corporate governance can reduce the influence of the CEO in the determination of the compensation structure. This leads to more incentivized contracts and boosts innovation, with substantial benefits for the shareholders, as well as the broader economy through knowledge spillovers. Shutting down the agency frictions leads to an increase in long-run output growth, which translates into a significant welfare gain in consumption equivalent terms. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:590&r=cse |
| By: | Ly, Bora |
| Abstract: | UNWTO predicts that by 2030, the number of international arrivals will only increase by 3% each year. That is, from the current 1.1 billion international visitors to 1.8 billion by 2030. This is IATA's forecast that air traffic will increase by 4% annually over the next two decades. WTTC stated that tourism and tourism (T&T) are part of the world’s largest economy, accounting for 9% of global GDP, 30% of exports, and 1 of 11 global jobs. If there is cross-examination, changes in volatility and uncertainty will occur. Policymakers' charges must be based on a strong future strategy to make room for tomorrow's story. Tourism is very important. It is regarded as the fastest growing industry and contributes to the economic growth. This article examines Cambodian tourism and tourism talent management. It also shows the benefits of managing on-site talent and details the talent management processes used in tourism and tourism. Focusing on how the tourism industry faces the challenge of obtaining talent and supporting professional development is a complex and necessary issue that has a major impact on the future of the industry. With the development and evolution of T&T, it will require new skills in new locations. Companies need to develop appropriate plans to understand the skills requirements of domestic employees. This may be related to working with academic systems to solve skills and gaps in training, an attractive career path, and investments in the development of existing workforces. |
| Keywords: | Developing Tourism, Talent, Cambodia |
| JEL: | A13 O1 |
| Date: | 2018–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87957&r=cse |
| By: | Gaganan Awano; Nicholas Bloom; Ted Dolby; Paul Mizen; Rebecca Riley; Tatsuro Senga; John Van Reenen; Jenny Vyas; Philip Wales |
| Abstract: | In the current climate, it is difficult to over-state the importance of improving our understanding of the economic impact of uncertainty. While it is widely accepted that uncertainty depresses economic activity, there is scarce quantitative evidence, particularly at the firm-level, to examine this relationship. This paper exploits a new data source on business-level expectations – the Management and Expectations Survey conducted by the Office for National Statistics (ONS) in collaboration with the Economic Statistics Centre of Excellence (ESCoE) – to give insight into British firms’ expectations and uncertainty concerning their turnover, expenditure, investment and employment growth for 2017 and 2018, as well as real UK GDP growth for 2018. Our results suggest that firms’ expectations of UK GDP growth for 2018 are more pessimistic, compared with recent trends and professional forecasters. We find that younger businesses and those with more structured management practices are more optimistic of their future turnover growth, while foreign-owned firms are more pessimistic than domestically-owned firms. We measure the uncertainty that businesses have around these expectations, and find that firms that are smaller, younger, domestically-owned, family- owned-and-family-managed and less productive display higher levels of uncertainty. We also identify a relationship between firms’ micro- and macro-economic expectations: firms that are more optimistic of future GDP growth are also more optimistic of their own future performance, and firms that are more uncertain of future GDP growth are also more uncertain of their own future performance. We establish a relationship between firms’ past experiences and their uncertainty for the future: firms that operate in industries with typically volatile growth are more uncertain of their future growth. |
| Keywords: | Expectations, uncertainty, productivity, management practices |
| JEL: | L2 M2 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:escoed:escoe-dp-2018-10&r=cse |
| By: | Alexandre Moeuf (Quartz - Laboratoire Quartz - ENSEA - Ecole Nationale Supérieure de l'Electronique et de ses Applications - SUPMECA - Institut supérieur de mécanique de Paris - EISTI - Ecole Internationale des Sciences du Traitement de l'Information); Samir Lamouri (Arts et Métiers ParisTech); Robert Pellerin (EPM - École Polytechnique de Montréal); Romain Eburdy; Simon Tamayo (MINES ParisTech - École nationale supérieure des mines de Paris, CAOR - Centre de Robotique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University) |
| Abstract: | The concept of Industry 4.0 has many advantages for Small and Medium-sized Enterprises (SME) in relation to other industrial management methods such as Just-In-Time or MRPII. Its adoption can be achieved through the use of many technologies. However, these technologies are not well mastered by SMEs. In order to identify the difficulties encountered by SMEs, this article presents an analysis of the exploitation of the different means of realization of the industry 4.0. From a scientific literature review, we show disparities in the exploitation of different technological group. Among the important elements, we note a sub-consideration of the data generated as a source of added value for SMEs, an under-exploitation of certain means of realization and a lack of expertise in SMEs that slows penetration of certain technological groups. The exploitation of the different technologies is often approached individually and targeted, which leads us to conclude that the concept of industry 4.0 is not approached from the angle of industrial management strategy. |
| Keywords: | SME,Industry 40,Production Planning and Control |
| Date: | 2017–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01836173&r=cse |
| By: | Wibawa, Dian Prihardini |
| Abstract: | Competence is a very important factor in increasing work productivity. A qualified workforce will have a positive impact on improving business productivity. Thus, the level of corporate profitability also increased. Human resource improvement strategy is an excellent strategy apart from other factors such as technology improves. Increased strategy through human resource competence can be done with the improvement of ability, attitude, knowledge, and expertise. The purpose of this research is to see the influence of human resource competence on the productivity of small and medium business actors with gender variable as differentiator variable in Pangkalpinang city. The result of this research indicates the male labor variable of competency which influence productivity is only knowledge variable, while other variables have no effect. While for women the ability variable, skill and knowledge have an effect on to productivity. |
| Keywords: | Competence of human resources, Gender, Productivity |
| JEL: | O15 |
| Date: | 2018–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88105&r=cse |
| By: | Terry Kelly |
| Abstract: | In almost all cases, the transport industry has adopted safety management systems (SMS) in response to a regulatory initiative. SMS vary dramatically across transport modes and jurisdictions – often because of the influence of different legacy regulatory programmes, and the attendant cultures. Consequently, there is no single path to guarantee a regulatory authority success in designing and implementing SMS regulations. For many, SMS has become a voyage of discovery, an experiment in proactive safety management that is being conducted in real time. SMS has been a “step change” that has challenged industries in all modes of transport. It has severely taxed the capabilities of many regulatory authorities. It is arguably the most significant regulatory change that has occurred in the transportation industry in recent times. Regulating SMS has often led to revised legislation, regulations or standards; whole scale restructuring of the regulatory agency; new or revised regulatory protocols, processes, activities, and tools; and new information technology (IT) and new processes for information management (IM). SMS will continue to evolve in the coming decades. The paper draws on lessons learned to explore strategies that can be used to design, implement and operate the related regulatory programmes. Observations are provided to help decision makers manage the challenges they will predictably face. The critical role of dynamic, wide-reaching communications and strategic planning, with industry and within the regulatory organisation, is underlined. |
| Date: | 2017–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2017/17-en&r=cse |
| By: | Ly, Bora |
| Abstract: | UNWTO predicts that by 2030, the number of international arrivals will only increase by 3% each year. That is, from the current 1.1 billion international visitors to 1.8 billion by 2030. This is IATA's forecast that air traffic will increase by 4% annually over the next two decades. WTTC stated that tourism and tourism (T&T) are part of the world’s largest economy, accounting for 9% of global GDP, 30% of exports, and 1 of 11 global jobs. If there is cross-examination, changes in volatility and uncertainty will occur. Policymakers' charges must be based on a strong future strategy to make room for tomorrow's story. Tourism is very important. It is regarded as the fastest growing industry and contributes to the economic growth. This article examines Cambodian tourism and tourism talent management. It also shows the benefits of managing on-site talent and details the talent management processes used in tourism and tourism. Focusing on how the tourism industry faces the challenge of obtaining talent and supporting professional development is a complex and necessary issue that has a major impact on the future of the industry. With the development and evolution of T&T, it will require new skills in new locations. Companies need to develop appropriate plans to understand the skills requirements of domestic employees. This may be related to working with academic systems to solve skills and gaps in training, an attractive career path, and investments in the development of existing workforces. |
| Keywords: | Tourism, Talent, workforces, development, Traveling, Cambodia |
| JEL: | A2 H0 M1 M2 |
| Date: | 2018–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88026&r=cse |
| By: | Klaus Desmet; Avner Greif; Stephen Parente |
| Abstract: | A market-size-only theory of industrialization cannot explain why England developed nearly two centuries before China. One shortcoming of such a theory is its exclusive focus on producers. We show that once we incorporate the incentives of factor suppliers' organizations such as craft guilds, industrialization no longer depends on market size, but on spatial competition between the guilds' jurisdictions. We substantiate our theory (i) by providing historical and empirical evidence on the relation between spatial competition, craft guilds and innovation, and (ii) by showing the calibrated model correctly predicts the timings of the Industrial Revolution and the Great Divergence. |
| JEL: | N10 O11 O14 O31 O43 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24727&r=cse |