nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒09‒03
six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Overcoming sustainability barriers through Formalized Network Contracts (FNCs): the experience of Italian SMEs. By Laura Corazza; Maurizio Cisi; Greta Falavigna
  2. Entrepreneurship and Knowledge Spillovers from the Public Sector By Audretsch, David; Link, Albert
  3. R&D, embodied technological change and employment: Evidence from Spain By Pellegrino, Gabriela; Piva, Mariacristina; Vivarelli, Marco
  4. Hysteresis of economic networks in an XY model By Ali Hosseiny; Mohammadreza Absalan; Mohammad Sherafati; Mauro Gallegati
  5. The public sector of the Russian economy: it’s size and dynamics By Radygin Alexandr; Abramov Alexander; Aksenov Ivan; Chernova Maria
  6. Barriers to Entry and Regional Economic Growth in China By Loren Brandt; Gueorgui Kambourov; Kjetil Storesletten

  1. By: Laura Corazza (Dipartimento di Management, Università di Torino); Maurizio Cisi (Dipartimento di Management, Università di Torino); Greta Falavigna (CNR-IRCRES, National Research Council, Research Institute on Sustainable Economic Growth, via Real Collegio 30, Moncalieri (TO) – Italy)
    Abstract: The role of formal business networking in SMEs is receiving more attention from scholars and practitioners. However, several aspects remain unclear, including if and how, corporate sustainability approaches are implemented and aligned within such networks, mostly created for competitiveness and resource efficiency purpose. With the aim of filling this gap in the literature over Small Business Social Responsibility, an empirical investigation is proposed by analyzing 389 Formalized Network Contracts and their original legal document, following Bocken et al. (2014) business model archetypes and NBS (2012) studies on sustainable innovation and, normative-making perspectives. Findings include the addition of a new general aims for such FNC that is the creation and enablement of clusters, following the perspective of Creation of Shared Value. In addition, we demonstrate that FNC is a suitable tool for micro, SMEs, and individual entrepreneurs to meet sustainability issues introducing eco-innovations, eco-efficiency and shared value herein their products/services, business models and organizational changes as roughly half of these contracts include a reference to sustainability issues.
    Keywords: Formalized Network Contracts (FNCs), Sustainability, Creation of Shared Value (CSV), Corporate Social Responsibility (CSR)
    JEL: L22 M14 Q01 Q56
    Date: 2018–06
  2. By: Audretsch, David (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: A compelling body of research has found that investments in knowledge from other firms and universities spill over to enhance the performance of entrepreneurial firms. This literature has shown that firm performance is positively related to investments in new knowledge by other firms and research universities. This paper addresses a gap in the literature by positing that public sector knowledge is also conducive to enhancing performance by knowledge intensive entrepreneurial (KIE) firms. Our findings suggest that the public sector provides a fertile source of knowledge for enhancing KIE firm performance.
    Keywords: entrepreneurship; performance; knowledge spillovers; public sector
    JEL: H41 L26
    Date: 2018–08–22
  3. By: Pellegrino, Gabriela (EPFL, Lausanne); Piva, Mariacristina (Università Cattolica del Sacro Cuore, Piacenza); Vivarelli, Marco (UNU-MERIT, and Universita’ Cattolica del Sacro Cuore, Milano)
    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 labour-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 labour-saving nature when SMEs are singled out.
    Keywords: Innovation, R&D, Embodied Technological Change, Employment, GMM-SYS
    JEL: O33
    Date: 2018–06–11
  4. By: Ali Hosseiny; Mohammadreza Absalan; Mohammad Sherafati; Mauro Gallegati
    Abstract: Many-body systems can have multiple equilibria. Though the energy of equilibria might be the same, still systems may resist to switch from an unfavored equilibrium to a favored one. In this paper we investigate occurrence of such phenomenon in economic networks. In times of crisis when governments intend to stimulate economy, a relevant question is on the proper size of stimulus bill. To address the answer, we emphasize the role of hysteresis in economic networks. In times of crises, firms and corporations cut their productions; now since their level of activity is correlated, metastable features in the network become prominent. This means that economic networks resist against the recovery actions. To measure the size of resistance in the network against recovery, we deploy the XY model. Though theoretically the XY model has no hysteresis, when it comes to the kinetic behavior in the deterministic regimes, we observe a dynamic hysteresis. We find that to overcome the hysteresis of the network, a minimum size of stimulation is needed for success. Our simulations show that as long as the networks are Watts-Strogatz, such minimum is independent of the characteristics of the networks.
    Date: 2018–08
  5. By: Radygin Alexandr (Gaidar Institute for Economic Policy); Abramov Alexander (Gaidar Institute for Economic Policy); Aksenov Ivan (RANEPA); Chernova Maria (RANEPA)
    Abstract: Two main channels can be pointed out whereby the state participates in value added chains: through the operation of companies with state stakes, and through the services (in a broader sense of the work) produced by enterprises with state stakes and budget-funded organizations. Consequently, the assessment of the state sector scope inside the national economy consists, as a rule, of two components: an analysis of the relative share of biggest companies with state stakes – state-owned enterprises (SOE) in a country's aggregate economic statistics (the scope of state ownership); and an estimation of the input of the general government sector (GGS) in GDP.
    Keywords: Russian economy, public sector, privatization
    JEL: K11 H82 L32 L33
    Date: 2018
  6. By: Loren Brandt (University of Toronto); Gueorgui Kambourov (University of Toronto); Kjetil Storesletten (University of Oslo)
    Abstract: The non-state manufacturing sector has been the engine of China's economic transformation. Up through the mid-1990s, the sector exhibited large regional differences; subsequently we observe rapid convergence in terms of new firm start-up rates, productivity, and wages. To analyze the drivers of this behavior, we construct a Melitz (2003) model that incorporates location-specific capital wedges, output wedges, and a novel entry barrier. Using Chinese Industry Census data for 1995, 2004, and 2008, we estimate these wedges and examine their role in explaining differences in performance across prefectures and over time. Entry barriers turn out to be the salient friction for explaining performance differences. We investigate the empirical covariates of these entry barriers and find that barriers are causally related to the size of the state sector. Thus, the downsizing of the state sector after 1997 may be important in explaining the rapid manufacturing growth over the 1995-2008 period.
    Date: 2018

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