nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒10‒15
sixteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The Role of Leadership Styles and Entrepreneurial Orientation in Distingushing more from less Succcessful Organizations By Pureta, Igor; Pureta, Tanja
  2. The role of international and domestic R&D outsourcing for firm innovation By María García-Vega; Elena Huergo
  3. Assessing the Impact of Foreign Direct Investment on Domestic Manufacturing Firms’ Productivity: A Database for Portugal By Santos, Eleonora
  4. The R&D funding scenario: Can capabilities foster product innovation of firms? El escenario de financiación de I + D: ¿pueden las capacidades fomentar la innovación de productos de las empresas? By Martha Torres-Barreto; Marianela Briceño; Mileidy Alvarez-Melgarejo
  5. Globalization, Structural Change and Innovation in Emerging Economies : The Impact on Employment and Skills By Vivarelli, Marco
  6. European Regional Productive Performance under a Metafrontier Framework. The role of patents and human capital on technology gap? By Kounetas, Kostas; Napolitano, Oreste; Stavropoulos, Spyridon; Burger, Martijn
  7. Inventive Capabilities in the Division of Innovative Labor By Ashish Arora; Wesley M. Cohen; Colleen M. Cunningham
  8. Economic impact of STEM immigrant workers By Baum, Christopher F.; Lööf, Hans; Stephan, Andreas
  9. What happens when firms invest? Investment events and firm performance By Michał Gradzewicz
  10. "Universities, spillovers and the resilience of inequality in the human-capital century" By Alexandra López Cermeño
  11. Innovation, Knowledge Diffusion, and Globalization By Nelson Lind; Natalia Ramondo
  12. Entrepreneurial orientation of employees By Pureta, Igor; Pureta, Tanja
  13. Is Austria’s Economy Locked-in in the CESEE Region? Austria’s Competitiveness at the Micro-level By Mahdi Ghodsi
  14. International spillovers of monetary policy: lessons from Chile, Korea, and Poland By Krzysztof Gajewski; Alejandro Jara; Yujin Kang; Junghwan Mok; David Moreno; Dobromił Serwa
  15. The competitiveness of French agri-food exports: a methodological and comparative approach By Cheptea, Angela; Huchet-Bourdon, Marilyne
  16. Drivers and Synergies in the Adoption of Sustainable Agricultural Intensification Practices: A Dynamic Perspective By Oumer, Ali M.; Burton, Michael

  1. By: Pureta, Igor; Pureta, Tanja
    Abstract: Competitive advantage has an extremely important place in strategic thinking both within the organization and the country. The international competitiveness of a country is a reflection of the ability of the organizations within it to achieve success both on the national and international markets. The latest scientific researches attribute organizational performance and consequently competitive advantage to its leaders and their ability to optimally use available resources. Sources have shown that leaders facing the ongoing globalization market challenges through their behaviour can improve the organization's performance. Effective leaders enable it by increasing the level of entrepreneurial orientation of the organization (nurturing its proactive, innovative and risk-taking characteristics) through the interrelationships among its workers as well as their commitment, confidence and motivation for greater work quality. All these favourable effects are primarily enabled by transformational leadership style, first described by Burns (1978), and elaborated in detail by Bass (1985a), whose implementation is dominantly advocated in modern organizations. This paper explores which leadership characteristics can be used to improve the organization's performance, and whether less successful organizations can be distinguished from the ones that are more successful. The results of this study show that there are specific characteristics that the organization should nurture if it wants to be successful and that less successful organizations can be distinguished from the ones that are more successful according to leadership style they use.
    Keywords: competitive advantage, entrepreneurship orientation, organizational performance, leadership style
    JEL: L26 L29
    Date: 2018–03
  2. By: María García-Vega; Elena Huergo
    Abstract: Firms are increasingly outsourcing their high-tech services. Theory suggests that R&D outsourcing allows firms to specialize in core knowledge-intensive tasks, thereby increasing innovation, but R&D outsourcing may also undermine internal capabilities. Our goal is to empirically assess the relative importance of these two possibilities, distinguishing between national and international R&D outsourcing and firms’ exporting status. We examine R&D purchases of more than 10,000 Spanish firms for the period 2004-2014. We show that R&D outsourcing improves firm innovation. Product innovation rises mostly with domestic outsourcing, while process innovation increases with both domestic and international R&D outsourcing. In addition, we find that international outsourcing provides an extra premium, mostly for exporters. Our results contribute to a better understanding of how firms organize the production of knowledge and innovation.
    Keywords: R&D outsourcing; transaction cost economics; innovation; international versus domestic outsourcing; exporters.
    Date: 2018
  3. By: Santos, Eleonora
    Abstract: The lack of a database that integrates a significant number of the variables necessary to empirically investigate the existence of externalities from FDI in Portugal represents an important limitation in this area. This paper presents a new balanced panel dataset with a total of 5,045 manufacturing firms (domestic and foreign) for the period 1995-2007. We use multiple imputation in Stata 13.0 to construct a large dataset containing several indicators taken from AMADEUS, Quadros do Pessoal, EU Klems and OCDE databases, that allow us to congregate variables that measure three dimensions: total factor productivity; foreign presence and factors that may influence the productivity of domestic firms, such as indicators of firm efficiency and R&D activities. Our panel dataset provides a set of useful 15 indicators for the analysis of externalities from FDI in 4,685 domestic manufacturing firms. We perform correlation analysis by technological groups based on Pavitt’s Taxonomy. Results indicate that the foreign presence is positively and significantly correlated with the TFP growth. Moreover, the sign and magnitude of the coefficients for the control variables indicate that concentration, the stock of foreign knowledge and the technological gap potentially assist the TFP growth of domestic firms, but only in some technological groups.
    Keywords: firm-level data, productivity, FDI Externalities, Portugal
    JEL: F23 O30
    Date: 2017–09–30
  4. By: Martha Torres-Barreto (UIS - Universidad Industrial de Santander [Bucaramanga]); Marianela Briceño (Universidad Pontificia Bolivariana (UPB)); Mileidy Alvarez-Melgarejo
    Abstract: Product innovation is a widespread scheme of organizational innovation recognized by OECD (2005), hence the concept of innovation itself has driven much attention of many agendas as the Strategic European Research one (European Commision, 2013). In this artecle we develop an analytical model of the technological impact of public funding for private R&D activities in terms of product innovations achieved, to study if its differential effects among firms depend to some extent on firm´s resources and capabilities. This analysis is based on firm level data from the manufactory industry under the ESSE (Spanish survey for Firms Strategy), for the period 2000-2012. We identify the technological activities of 3350 Spanish firms, characterize their resources and capabilities and identify the most relevant ones regarding its influence on product innovation. We detect that both: public R&D funds and private investment help in the new product generation; but also, that the innovation capabilities and inter-firm cooperation positively affect the technological outcome.
    Abstract: La innovación de productos es un esquema generalizado de innovación organizacional reconocido por el Manual de Oslo, de ahí que el concepto de innovación ha atraído la atención de muchas agendas como Strategic European Research (European Commision, 2013). En este artículo se desarrolla un modelo analítico del impacto tecnológico del financiamiento público para actividades privadas de I + D en términos de innovaciones de producto logradas, para estudiar si sus efectos diferenciales entre empresas dependen en cierta medida de los recursos y capacidades de la empresa. Este análisis se basa en los datos a nivel de empresa de la industria de la manufactura bajo ESSE (encuesta española para estrategia de las empresas), para el período 2000-2012. Se identificaron las actividades tecnológicas de 3350 empresas españolas, se caracterizaron sus recursos y capacidades e identificaron las más relevantes en cuanto a su influencia en la innovación de productos. Se encontró que tanto los fondos públicos de I + D como la inversión privada ayudan en la generación de nuevos productos; pero también, que las capacidades de innovación y la cooperación inter-empresarial afectan positivamente el resultado tecnológico.
    Keywords: Capabilities,innovation,public funding,resources.,Capacidades, innovación, financiamiento público, recursos.
    Date: 2018–09–04
  5. By: Vivarelli, Marco
    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
    JEL: O14 O33
    Date: 2018
  6. By: Kounetas, Kostas; Napolitano, Oreste; Stavropoulos, Spyridon; Burger, Martijn
    Abstract: Assessing regional convergence is an important issue both at the national and at the supranational level, such as the level of European regions. Regional convergence and productivity growth are also principles of the European regional policy. This paper studies regional productivity convergence among 232 NUTS-2 European regions for the period 2003-2011. Despite the European regional policies implemented in the last two decades, the technology gap between European regions has only increased. The objective of this paper is to provide new evidence on production efficiency and the technology gap in European regions. We present a two-stage model of regional productive performance using a meta-frontier framework and a PVAR analysis. The main conclusion is that there exist significant differences in productive performance that confirm the North-South division in Europe. Finally, the results from the PVAR model provide robust evidence for the role played by human capital and innovation activity through patent realization in the technology gaps at the regional level in Europe.
    Keywords: Metafrontier, DEA bootstrap, PVAR, Spillovers, European Regions.
    JEL: C15 D24 O47 R11
    Date: 2018–01–06
  7. By: Ashish Arora; Wesley M. Cohen; Colleen M. Cunningham
    Abstract: We study how the inventive capability of a firm conditions its participation in a division of innovative labor. Capable firms are, by definition, able to invent; for them, external inventions substitute for their own R&D. However, external knowledge is an input into internal invention, and thus, more valuable to firms with inventive capability. Using a simple model of innovation and imitation, we explore how inventive capability affects a firm’s R&D investments, and thus whether and how it innovates, imitates, or does neither. Further, we study how these outcomes are conditioned by the supply of external knowledge as well as the supply of external inventions. In an advance over the literature, we treat firm inventive capability as unobserved, and use a latent class multinomial model to infer its value. Using a recent survey of product innovation and the division of innovative labor among US manufacturing firms, we find that high capability firms tend to use internal, rather than externally generated inventions, to innovate, and they use external knowledge to enhance their internal inventive activity. By contrast, lower capability firms are more likely to introduce “me-too” or imitative products, and when they innovate, are more likely to rely on external sources of inventions. Our findings suggest the successful pursuit of R&D-led growth depends both on firm inventive capability and the external knowledge environment.
    JEL: O31 O32
    Date: 2018–09
  8. By: Baum, Christopher F.; Lööf, Hans; Stephan, Andreas
    Abstract: STEM-focused industries are critical to the innovation-driven economy. As many firms are running short of STEM workers, international immigrants are increasingly recognized as a potential for high-tech job recruitment. This paper studies STEM occupations in Sweden 2011–2015 and tests hypotheses on new recruitment and the economic impact of foreign STEM workers. The empirical analysis shows that the probability that a new employee is a STEM immigrant increases with the share of STEM immigrants already employed, while the marginal effect on average firm wages is positively associated with the share of immigrant STEM workers. We also document heterogeneity in the results, suggesting that European migrants are more attractive for new recruitment, but non-EU migrants have the largest impact on wage determination.
    Keywords: STEM,migration,employment,wages,correlated random effects
    JEL: C23 J24 J61 O14 O15
    Date: 2018
  9. By: Michał Gradzewicz (Narodowy Bank Polski and Warsaw School of Economics)
    Abstract: The aim of the study is to investigate the firm-level relationship between investment spikes and subsequent productivity developments. We used census data of Polish firms with employment above 9 persons, we measured investment spike and constructed a control sample for comparison. We showed various performance indicators before and after investment spike. We tested for the effects of a spike using generalized difference-in-difference models. The results suggest different effects for SMEs and larger companies. In smaller firms investment spike is associated with subsequent sales and employment expansion and lagged labor productivity rise, consistently with learning-by-doing model. TFP of smaller firms falls directly after a spike and only gradually rises thereafter. In larger firms investment spike also result in expansion of sales, but labor productivity is not improving relative to control group, despite a drop of employment. Moreover, capital deepening of larger firms results in significantly lower TFP, both in absolute and relative terms.
    Keywords: investment spike, productivity, TFP, efficiency, firm-level data, difference-in-difference
    JEL: D22 D24 L16 O3
    Date: 2018
  10. By: Alexandra López Cermeño (Lund University)
    Abstract: "This paper explores the impact of new universities established in the United States between 1930-2010. Differences in differences analysis on a sample of counties selected through propensity score matching enables the assessment of the impact of these universities on GDP, population, and different scales of market size. Evidence suggests that hosts of new universities grew around 20 per cent more, and the effect expanded to the nearby areas. Controlling for research quality and infrastructures shows that new cultural amenities generate growth that expands to nearby areas through the agglomeration of population but only during the short run."
    Keywords: "Economic Geography, Spillovers, Universities, United States"
    JEL: L8 N72 R12 I23
    Date: 2017–04
  11. By: Nelson Lind; Natalia Ramondo
    Abstract: We review a recent body of theoretical literature that links the creation and diffusion of knowledge and technology to openness. We analyze two channels through which the spread of new ideas occurs: international trade and the activity of multinational firms (multinational production). The unifying theme of our survey is methodological. We focus on quantitative general equilibrium models that treat productivities as Fréchet random variables—as in the model of trade in Eaton and Kortum (2002) (EK). We present models in the literature that extend the EK model of trade to innovation, diffusion, and multinational firms, and examine the implications for counterfactuals related to the gains from trade. We finalize with new directions for research.
    JEL: F1 O4
    Date: 2018–09
  12. By: Pureta, Igor; Pureta, Tanja
    Abstract: Entrepreneurial orientation is a tendency of businesses to act autonomously and innovative, take risks and is taking proactive initiatives to potential market conditions There is a positive relationship between entrepreneurial orientation and business performance of the company. Although the entrepreneurial orientation commonly referred to as a feature the company and not the individual, since the people are supporting tasks within business, there are defined characteristic behaviors that define the entrepreneurial orientation of individuals. This behavior have so far examined the entrepreneurs, not the employees. This paper aims to determine the extent to which employees in the organization have developed entrepreneurial behavior (vision of their own areas of responsibility development, goal setting needed to achieve the vision, planning of specific activities, actively seeking information, persistence in its realization in spite of obstacles and actively seeking feedback about own performance), and whether employees with more developed entrepreneurial behavior more represented in private companies or in the public sector, and if they have intention to found their own company.
    Keywords: entrepreneurial orientation, entrepreneurial behavior, proactivity
    JEL: J5 J50
    Date: 2017–03
  13. By: Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper analyses the competitiveness of Austrian manufacturing industries by comparing the performance of Austrian firms with the Western European firms using recent estimates of TFP across Wider Europe (EU-28 plus Western Balkans) during the period 2007-2015. According to the TFP estimates, Austrian firms with larger turnovers, and less employment, in regions with less regional-industrial concentration of labour have become more competitive in terms of TFP. Using firm’s TFP and other characteristics aggregated by industries across Wider Europe, a gravity model for exports is estimated. Results show that larger trade across countries in the sample is driven by intra-firm trade, better efficiency of industries in terms of simple average of TFP growth of firms and more allocation of capital to more efficient firms. Comparing the actual values of exports from Austria to CESEE with the predicted values of the gravity model, I found that since 2012 excessive exports were directed to Western Europe rather than to CESEE. In a robustness check using unilateral exports value, these interesting findings also confirmed that a potential Austrian lock-in effect in the CESEE region reversed and trade diverged to the more competitive market of Western Europe.
    Keywords: firm performance, total factor productivity (TFP), gravity model, exports performance, lock-in effect
    JEL: D22 D24 F14 F15 F23 L25
    Date: 2018–10
  14. By: Krzysztof Gajewski (Narodowy Bank Polski); Alejandro Jara (Banco Central de Chile); Yujin Kang (Bank of Korea); Junghwan Mok (Bank of Korea); David Moreno (Banco Central de Chile); Dobromił Serwa (Narodowy Bank Polski)
    Abstract: In this paper, we assess evidence on international monetary policy spillovers to domestic bank lending in Chile, Korea, and Poland, using confidential bank-level data and different measures of monetary policy shocks in relevant currency areas. These three emerging market economies are small and open, their banking systems do not have significant presence overseas, and they can be considered as price takers in the world economy. Such features allow for better identification of binding financial constraints and foreign monetary policy shocks. We find that the monetary policy shocks spill over into domestic bank lending, modifying the degree to which financial frictions tighten or relax, and this evidence is consistent with international bank lending and portfolio channels.
    Keywords: monetary policy spillovers, international bank lending channel.
    JEL: E32 F32 F34 G21 G15
    Date: 2018
  15. By: Cheptea, Angela; Huchet-Bourdon, Marilyne
    Keywords: International Trade, Research Methods/Econometrics/Stats, Food and Agricultural Policy Analysis
    Date: 2018–06–20
  16. By: Oumer, Ali M.; Burton, Michael
    Keywords: Food and Agricultural Policy Analysis, Natural Resource Economics, Rural/Community Development
    Date: 2018–06–20

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