nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒10‒08
fifteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Information communication technologies and environmental innovations in firms: joint adoptions and productivity effects By Davide Antonioli; Grazia Cecere; Massimiliano Mazzanti
  2. Firms’ perceived benefits of shared facilities on Dutch science parks: empirical evidence. By Robin Junker; Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Theo Arentze
  3. Serious Gaming in Real Estate Education – Case study ‘The Blue Game’ By Juerg Bernet; Eamonn D'Arcy
  4. Knowledge spillovers in the mutual fund industry through labor mobility By Cici, Gjergji; Kempf, Alexander; Peitzmeier, Claudia
  5. Globalization, Structural Change and Innovation in Emerging Economies: The Impact on Employment and Skills By Marco Vivarelli
  6. Small firms in the sustainable transformation of food industry: entangling entrepreneurship and activism in grassroots innovation processes By Emilie Lanciano; Séverine Saleilles
  7. Externalities from FDI on domestic firms’ Productivity: A Literature Review for Developed Countries By Santos, Eleonora
  8. "Danger to the old lady of Threadneedle Street? The Bank Restriction Act and the regime shift to paper money, 1797-1821" By Nuno Palma; Patrick O’Brien
  9. Impact of Structural Change on Corporate Real Estate Ownership: Evidence from the German Corporate Real Estate Market By Julian Seger; Andreas Pfnür
  10. Skills, entrepreneurship and new business models: Ways to rejuvenate the German industrial model By Bienert, Jörg; Deutsch, Klaus-Günter; Klös, Hans-Peter; Röhl, Klaus-Heiner
  11. Personal And Social Proximity: Shaping Leadership In A Free Software Project By Clement Bert-Erboul; Nicholas S. Vonortas
  12. University governance: effects on campus strategies and university performance By Magorzata Rymarzak; Alexandra den Heijer; Flavia Teresa de Magdaniel; Monique A
  13. Innovation Capital By Audretsch, David; Link, Albert
  14. The added value of the European university campus: challenges for collecting management information By Flavia Teresa de Magdaniel; Alexandra den Heijer; Monique Arkesteijn
  15. The formation and take-off of the Sao Paulo automobile-industry cluster By Tomàs Fernández-de-Sevilla; Armando J Dalla Costa

  1. By: Davide Antonioli (Università degli Studi "G. D'Annunzio" di Chieti-Pescara, Italy); Grazia Cecere (Télécom Ecole de Management, Institut Mines-Télécom, Paris, France); Massimiliano Mazzanti (Department of Economics and Management, University of Ferrara, Italy)
    Abstract: Information communication technology (ICT) and environmental innovation (EI) are relevant waves of the ongoing technological revolution. We study the complementarity in innovation adoption to test the research hypothesis that the higher the diffusion and intensity of usage of ICT and EI, the higher a firm’s productivity performance might be. However, it is not certain that the use of different innovations stemming from different innovation paths generates higher productivity. To test our hypothesis we use original survey data concerning manufacturing firms in Northeast Italy including detailed information on both ICT and EI. Empirical evidence shows that there are still wide margins to improve the integration between EI and ICT in order to exploit their potential benefits on productivity. The awareness of specific synergies seems to mainly characterize the heavy polluting firms that are subject to more stringent environmental constraints, while some trade-offs tend to emerge for the remaining firms.
    Keywords: ICT, environmental innovations, polluting sectors, complementarity, labour productivity
    Date: 2018–11
  2. By: Robin Junker; Wei Keat Benny Ng; Rianne Appel-Meulenbroek; Theo Arentze
    Abstract: Science parks as area developments have existed for decades and have captivated the attention of academics and policy-makers for their supposedly positive impact on resident organisations and regions. To date there is mixed empirical evidence to indicate the performance enhancing effects of specific science park features on research & development, economic output or improved collaboration between users. Furthermore, limited attention is given to the demands and perceptions of science park users. This study focuses on one of the main features of science parks, namely the shared facilities and services on-site and how users perceive the benefits of these facilities.An online survey is distributed to 594 resident organisations on eight science parks in the Netherlands to which 112 participated. Within the questionnaire respondents are inquired on organisational characteristics in order to distinguish tenant types through clustering on aspects, such as R&D activity, organisation size, sector diversity. Then respondents indicate the benefits they perceive for specific presented shared facilities and services retrieved from science park literature based on their importance. Finally, respondents indicated meaningful associations between shared facilities and benefits. Results show that among resident organisations three distinguishable clusters emerge; ‘non-R&D organisations’, ‘R&D start-ups’, and ‘R&D small-medium enterprises’ with each cluster mentioning different benefits that they value . In general, knowledge sharing and on-site collaboration are most frequently mentioned as important science park benefits and are mostly associated to training programs and information access. Both ‘R&D start-ups’ and ‘non-R&D organisations’ value the opportunity to be near customers for different reasons, while ‘R&D small medium entrepreneurs’ perceive social events as a means to be close to the university or other higher educational institutions. The associations between various types of shared facilities and benefits that residents seek provide insights for practitioners in terms of the design and management of science parks and add to the body of knowledge of science park literature.
    Keywords: Perceived Benefits; Quantitative Analysis; science parks; Shared Facilities
    JEL: R3
    Date: 2018–01–01
  3. By: Juerg Bernet; Eamonn D'Arcy
    Abstract: The development of people skills has become a key element of management training in the real estate profession. Strategic skills and implementation skills can make or break business success. Universities and business schools are up to better integrate these challenges of the real world in the classroom. This paper debates the teaching experience with the ‘The Blue Game’; a serious business simulation game for experiental learning, developed and used since 2012 at the Henley Business School, University of Reading. The game is set within a capstone term in the MSc real estate programme and delivers a strategy training in responsible investment in real estate.The students’ object in the game is to solve an actual business dilemma in the Australian real estate market. To win the game, the students team up in groups and take on roles. They develop winning strategies for their companies, incorporating the dynamic interplay of competition and cooperation. A blend of both online and on-site learning tools includes a physical ‘Real Investor’ game box with game money and agreement cards, an electronic memory stick with data about real world portfolios of assets, lecture-style tutorials in game theory, networking applications of the social media Facebook and Twitter, and an interactive e-book for iBooks.‘The Blue Game’ allows participants to develop a range of personal transferable skills, such as negotiation, team working, leadership, strategic thinking, managing complex relationships, meeting deadlines and delivering professional presentations and reports. It also contributes to delivering professional values and wider value sets relevant to the real estate sector such as sustainability and social responsibility. However, instrumental for a successful learning outcome is an experienced game master – making a stimulating setting available for dynamic exploration, steering a successful workflow, and providing intermediate feedback and individual coaching.Different from a fun game, ‘The Blue Game’ is a serious game, based on the behavioral concepts of game theory. In the past 6 years more than 1000 students have played the game and enjoyed their exciting learning experience. Positive feedback from the industry qualifies ‘The Blue Game’ as a highly effective learning tool – facilitating the development of interpersonal skills and contributing to the actual challenges of employability in the real estate sector.
    Keywords: business simulation; Game Theory; Real Estate Education; responsible investment in real estate; strategy training
    JEL: R3
    Date: 2018–01–01
  4. By: Cici, Gjergji; Kempf, Alexander; Peitzmeier, Claudia
    Abstract: Firms' competitive advantages are unsustainable when competitors poach their employees away to learn about their organization processes. We document inter-firm knowledge spillovers through such personnel moves in the mutual fund industry. Almost two thirds of the competitive advantage of the originating fund family spills over to the recipient family. This effect intensifies when the switching manager has amassed more organizational knowledge at the originating family. Performance deterioration at the originating family suggests erosion of its competitive advantage, which intensifies when more money chases the newly-transferred knowledge at the recipient family. This implies wealth transfers across investors in respective families.
    Keywords: organization capital,knowledge spillovers,mutual funds,learning-by-hiring
    JEL: D86 G23 K12 K31 M5
    Date: 2018
  5. By: Marco Vivarelli
    Abstract: This paper aims to provide a critical overview of the drivers that the relevant theoretical and empirical literature suggests being crucial in dealing with the challenges an emerging country may encounter in its attempts to further catch-up a higher income status, with a particular focus devoted to the implications for the domestic labor market. In the first part of the paper, attention will be focused on structural change, capability building and technological progress, trying to map - using different taxonomies put forward by the innovation literature - the concrete ways through which an emerging country can engage a successful catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technology transfer. In the second part of the paper, the focus will be moved to the possible consequences of this road to catching-up in terms of employment and skills. In particular, the prescriptions by the conventional trade theory will be contrasted with a view taking into account technology transfer, labor-saving technological progress and skill-enhancing trade.
    Keywords: catching-up, structural change, globalization, capabilities, technological transfer
    Date: 2018–09–28
  6. By: Emilie Lanciano (COACTIS - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne]); Séverine Saleilles (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)
    Abstract: The literature in Social Movement Theory, Organization Studies and Entrepreneurship emphasizes on the linkages between social movement action and economic organization. Indeed, social entrepreneurship and social movement studies tend to be more and more linked: activists and social entrepreneurs do not represent separate and distinct actors with different logics of action, but tend to transfer their tactics, such as framing, mobilization, protest and negation. This paper explores how activism and entrepreneurship can be combined in an innovative way by small firms in order to contribute to an industry's transformation towards sustainable development. We specially investigate the field of food industry and Alternative Food Networks. In a context of growing interest and sensitivity towards more sustainable food models, how do small firms combine activism and entrepreneurship to frame grassroots innovation processes and translate this frame into organizational model?
    Date: 2017–08
  7. By: Santos, Eleonora
    Abstract: In this paper, we analyse the transmission mechanisms of externalities from FDI on the productivity of domestic firms, focusing on establishing the main linkages between them. Considering the complexity of the mechanisms involved, the analysis of the factors determining their effectiveness is far from being fully exploited. We expect to contribute to the existing literature by providing a broader picture of the determinant factors of externalities from FDI, through its classification, along the lines of the Theory of Heterogeneous Firms. This allows for a better understanding of the relevant variables to include in the empirical studies. Moreover, the transmission mechanisms of externalities from FDI are different according to the stage of development of the recipient countries. However, the existing literature reviews and meta-analysis include both Developed and Developing countries, hindering the learning process regarding the transmission mechanisms of externalities in the Developed Countries. We attempt to fill this gap by reviewing the empirical literature for five Western European countries and suggest some explanations for the mixed results.
    Keywords: FDI, linkages, vertical externalities, Developed Countries.
    JEL: F23
    Date: 2017–09–30
  8. By: Nuno Palma (University of Groningen); Patrick O’Brien (London School of Economics)
    Abstract: "The Bank Restriction Act of 1797 suspended the convertibility of the Bank of England's notes into gold. The current historical consensus is that the suspension was a result of the state's need to finance the war, France’s remonetization, a loss of confidence in the English country banks, and a run on the Bank of England’s reserves following a landing of French troops in Wales. We argue that while these factors help us understand the timing of the Restriction period, they cannot explain its success. We deploy new long-term data which leads us to a complementary explanation: the policy succeeded thanks to the reputation of the Bank of England, achieved through a century of prudential collaboration between the Bank and the Treasury."
    Keywords: "Bank of England, financial revolution, fiat money, money supply, monetary policy commitment, reputation, and time-consistency, regime shift, financial sector growth"
    JEL: N13 N23 N43
    Date: 2017–04
  9. By: Julian Seger; Andreas Pfnür
    Abstract: In the last decades US non-property companies have opened up increasingly to alternatives to real estate ownership and thus have reduced their holdings. European companies followed this trend in a more cautious way still showing generally higher ownership ratios. Incentives might become stronger in the future though, if owning real estate competes with new business requirements and thus harms firm performance. Despite the great number of articles analyzing the contribution of real estate ownership to non-property company’s performance, the business environment and especially external trends are rarely considered. Therefore, this paper addresses two main questions: Firstly, how real estate ownership affects organizational performance in general and secondly, whether the contribution of ownership changes considering future market trends. Using the example of German non-property companies, the article analyzes whether firms affected by structural change demonstrate a higher willingness to reduce corporate real estate (CRE) ownership holdings. The paper begins with a literature based elaboration of the term structural change followed by a comparison of international ownership holdings. In a next step the relationship between ownership and its impact on organizational performance considering influences of business environment is summarized in a theoretical framework. Hereafter, a multivariate cluster analysis is performed on a dataset taken from the study by Just and Pfnuer (2016). In a last step, the identified firm clusters are tested regarding their tendency to reduce ownership holdings. The article provides diverse explanations of why ownership could harm firm performance if market trends are considered. In accordance with these findings, the results of the multivariate analysis suggest that the higher firms are affected by structural change, the higher is their willingness to reduce ownership by sale-and-rent-back transactions.This article differs from existing literature in two ways. Instead of using balance sheet data, the analysis applied in this article is based on a dataset of surveyed CRE managers. Moreover, the paper takes a broader view on ownership and firm performance by including the business environment. First hints show that structural change and associated new business requirements change the relevance of CRE ownership. In order to avoid competitive disadvantages, especially European firms should scrutinize their high ownership ratios.
    Keywords: Cluster Analysis; Corporate real estate; Firm Performance; Ownership; Structural Change
    JEL: R3
    Date: 2018–01–01
  10. By: Bienert, Jörg; Deutsch, Klaus-Günter; Klös, Hans-Peter; Röhl, Klaus-Heiner
    Abstract: New business models are at the heart of the global competitive challenge. In several areas of manufacturing and closely related services industries, new market participants, business models and technologies lead to faster change in market conditions and the competitive environment. These developments pose new challenges for the successful German industrial system. Strategic treatment of innovation, a stronger focus on disruptive technologies or business models, organ-izational experimentation such as spin-outs to retain entrepreneurial employees, less intra-cor-porate bureaucracy in such ventures and the interaction with new business partners are key elements to master the evolving challenges. Entrepreneurship, new business models and inno-vation in rapidly changing markets should be fostered by focused approaches of management and general economic policies. This includes measures to facilitate to entrepreneurship educa-tion, an entrepreurial culture and corporate training. [...]
    JEL: H25 L53 L60 O32
    Date: 2018
  11. By: Clement Bert-Erboul (University of Campinas); Nicholas S. Vonortas (National Research University Higher School of Economics)
    Abstract: Open software projects are usually portrayed by focusing on charismatic leaders, friendly communities, and meritocratic language. We dig under the surface of this stereotypical picture and analyse the social relationships of the people involved; specifically, whether they are related through personal proximity or they are distant social partners. We contribute to the literature on free/open source innovation in three ways. First, we highlight the continuum of roles played by individual leaders in the open source project, as brokers and/or initiators. Second, we delve deeper in the social networks of the Videolan software community to layout where and how leaders are organised in groups and play the role of brokers and initiators. We study leadership emergence over time by taking into account the context of activities. Finally, we produce a typology of three Videolan communities with specific social networks that evolved over time in terms of leaders and social structure
    Keywords: Open source, community, leadership, social network, proximity, computer software
    JEL: D90 L86
    Date: 2018
  12. By: Magorzata Rymarzak; Alexandra den Heijer; Flavia Teresa de Magdaniel; Monique A
    Abstract: Universities, like other public sector institutions, face the need to operate in an increasingly competitive environment. The decrease of public funding, and additionally the demographic trends and other global challenges, increase the competitiveness among higher education institutions.For several years in many European countries traditional government public funding for universities has stagnated and it is assumed that it will not increase sufficiently enough to cover the full costs of universities. Therefore, universities are forced to implement strategies that will enable them to make more effective and efficient use of all their resources (including real estate, which is the one of the key strategic resources). On the other hand, the ability to implement different strategies and consequently achieve the university’s goals are affected by the university governance model. Purpose – The aim of this paper is to present and compare the university governance model(s) and campus strategies implemented by public universities in the Netherlands and Poland.Design/methodology/approach – Literature overview discusses the relationship between university governance, campus strategies and university outcomes. In this paper, a broad perspective to define campus governance has been adopted, which enables a comparison of campus legal frameworks, management structure, degree of university autonomy, accountability and transparency as well as participation of different stakeholders in campus decision making in the two European contexts.Findings - The paper demonstrates two contrasting campus governance models. In the Netherlands, there is limited regulatory intervention of the state in campus decision making. Since 1995 Dutch universities have far-reaching autonomy and need to be transparent and accountable for their campus decisions. In their campus strategies, universities are mainly guided by changing needs of students and (academic) staff, ultimately to achieve or maintain a competitive advantage in the global higher education market. By comparison, universities in Poland operate on the basis of a significant number of regulations. They, nevertheless, have a relatively high level of autonomy in campus decision making, which is not counterbalanced by accountability and transparency to the government and other stakeholders. Their campus strategies are often isolated from socio-economic needs.
    Keywords: campus management; Governance; resource-efficiency; universities
    JEL: R3
    Date: 2018–01–01
  13. By: Audretsch, David (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: In this paper we compare the relationship between a firm’s innovation capital and the likelihood that a firm will commercialize an invention. Our index of innovation capital is the product of the firm’s human capital, social capital, and reputational capital. We find from our empirical experiment, which uses Small Business Innovation Research (SBIR) data, that innovation capital is a statistically more important entrepreneurial input to the innovation output of commercialization than any of its components.
    Keywords: innovation capital; human capital; social capital; reputational capital; entrepreneurship; commercialization;
    JEL: L31 O31 O38
    Date: 2018–09–21
  14. By: Flavia Teresa de Magdaniel; Alexandra den Heijer; Monique Arkesteijn
    Abstract: Universities are key agents in the knowledge-based economy and their campuses are increasingly seen as resources enabling regional innovation. Previous research outlining the university campus as a European asset (Den Heijer & Tzovlas, 2014) collected various indicators about universities’ goals, finances, users and spaces across 866 European universities. This research also found limitations for comparison (e.g. differences in university types, socio-economic contexts and data collection techniques). Both, the value of such management information and challenges to collect comparable data are addressed here. This paper aims to compare campus management information (CMI) in universities of technology located in Europe’s innovative regions. This scope allows comparing campus management in universities with a similar knowledge-base and located in similar socio-economic contexts. In order to do so, this research asks: What is the current state of the tech-campus in Europe’s most innovative regions?Four perspectives of campus management were used to develop a structured survey targeting 1) university country organisations and 2) university real estate management departments. The survey containing 19 indicators across the four perspectives was sent via email in spreadsheet format. The review of documents and statistical datasets generated by country organisations was also used as data source. Available data from country documents and statistics datasets focused on one or two types of indicators. From 62 universities contacted in 12 countries, 13 universities in 8 countries agreed to participate. The respondents provided most of the indicators and/or sent links to relevant documents to retrieve them. However, the overview of the current state of the tech-campus in Europe is limited to this relatively small sample of respondents. Although the added value of the campus for universities and Europe is relevant, collecting CMI to improve this practice is still a challenge for CREM researchers. First, the indicators in our framework integrate various perspectives and their collection may be challenged by the availability of CMI in different departments. Second, some universities may lack structural information databases and do not want to share incomplete data for comparison. Last, the benefits of collecting CMI may not (yet) seem to exceed the costs of investing time on it in absence of structured databases. These lessons can be used to improve further research.
    Keywords: campus management; European Universities; Management Information; Strategic Management; University Campus
    JEL: R3
    Date: 2018–01–01
  15. By: Tomàs Fernández-de-Sevilla (Free University of Brussels); Armando J Dalla Costa (Federal University of Paraná)
    Abstract: "The bulk of the automotive-industry in Brazil, country which is ranked in the top-ten of world cars producer since the mid-1960s, has been concentrated around the city of São Paulo. We aim to explain the formation and growth of the São Paulo auto-industry cluster. In doing so, four explanations are used: the presence of external economies (Marshall, 1890; Porter, 1990); the capabilities of large companies, which act as regional hubs (Chandler, 1990; Markusen, 1996; Lazonick, 2010); the adoption of active industrial policies (Amsden, 1989, 2001; Chang, 2002); and the institutional environment (Bagnasco, 1977; Brusco, 1982; Becattini, 1990; Porter, 1998)."
    Keywords: Industrial Districts and Clusters; Automotive Industry; External Economies; Large Companies; Active Industrial Policy; Institutions
    JEL: O14 O25 N66 N96
    Date: 2017–04

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