nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒10‒29
twenty-one papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The relationships among different types of market knowledge, ambidextrous learning, and different types of innovations By Kuan-Yang Chen; Chih-Hui Hsiao; Po-Yuan Chen; Cheng-Fei Lee
  2. Absorptive capacity, economic freedom and the conditional effects of regional policy. By Jonathan Eberle; Thomas Brenner; Timo Mitze
  3. Contemporary Frontier Transformation for Inclusive Growth: The Dual Role of "Smart" Competitiveness Factors By Kritsada Patluang
  4. What do we know about R&D spillovers and productivity? Meta-analysis on heterogeneity and statistical power By Ugur, Mehmet; Awaworyi Churchill, Sefa; Luong, Hoang Minh
  5. Connections matter: the influence of network sparseness, network diversity and a tertius iungens orientation on innovation By Llopis, Oscar; D’Este, Pablo; Adrián A. Díaz-Faes
  6. Asymmetric information and heterogeneous effects of R&D subsidies: evidence on R&D investment and employment of R&D personel By Ugur, Mehmet; Trushin, Eshref
  7. EU regions and the upgrading for the digital age By Antonio Vezzani; Emanuele Pugliese; Petros Gkotsis
  8. Cross Holdings and Strategic Manager Compensation. The Case of an Asymmetric Triopoly By Stadler, Manfred; Neus, Werner
  9. An Empirical Review of the Integrated Tourism and Leisure Enterprise on Corporate Social Responsibility Engagements - The Macao Context By Margaret Ngan-Fung Tang
  10. Resource Dependence and the Causes of Local Economic Growth: An Empirical Investigation By Rian Hilmawan; Jeremy Clark
  11. On the competitiveness effects of quality labels: Evidence from the French cheese industry By Sabine Duvaleix-Treguer; Charlotte Emlinger; Carl Gaigné; Karine Latouche
  12. Who Provides High Quality Services?: Evidence from the Survey on Customer Satisfaction (Japanese) By ISHIKAWA Takayuki; EDAMURA Kazuma; TAKIZAWA Miho; MIYAKAWA Daisuke; MIYAGAWA Tsutomu
  13. Comparative advantage and Provincial Competitiveness of the main industries in South Africa: An Economic Base Analysis Approach By Ferdinand Niyimbanira
  14. Innovation from science: the role of network content and legitimacy ties By D'Este, Pablo; Mc Kelvey, Maureen; Yegros-Yegros, Alfredo
  15. The role of Foreign Direct Investment in higher education in the developing countries (Does FDI promote education?) By Mazhar Yasin Mughal; Natalia Vechiu
  16. The cognitive foundations of cooperation By Carlos Alós-Ferrer; Michele Garagnani
  17. Innovation and SME internationalization in Korea and Latin America and the Caribbean: Policy experiences and areas for cooperation By -
  18. The Context of Service Innovation in Alibaba By Mei-Tai Chu
  19. Social Capital and Innovation - Can Social Trust Explain the Technological Innovation of the High-performing East Asian Economies? By Seo-Young Cho
  20. What Drives Marketing and Organizational Innovation in the Food Industry? A Comparison between Italy and Germany By Stefano Ciliberti; Laura Carraresi; Stefanie Bröring
  21. Closing Gender Gaps in India: Does Increasing Womens’ Access to Finance Help? By Purva Khera

  1. By: Kuan-Yang Chen (National Taipei University of Nursing and Health Sciences); Chih-Hui Hsiao (National Chiayi University); Po-Yuan Chen (National Dong Hwa University); Cheng-Fei Lee (Shih Chien University, Kaohsiung Campus)
    Abstract: In the knowledge economy era, both academia and industry alike have been focused on the impact of market knowledge on innovation performance. However, research addressing the inconsistencies in empirical findings about its impact (such as a negative or insignificant affect) is scarce. Moreover, ambidexterity (exploratory learning/exploitative learning) is one of the central topics in knowledge management. This article marks the first endeavor to adopt the knowledge-based theory and the ambidextrous learning perspective, attempt to create a theoretical framework of knowledge-learning-innovation, and thoroughly examine related causal relationships between different dimensions of the constructs. The empirical results demonstrated the following: market knowledge depth directly and positively impacts process innovation and product innovation; market knowledge breadth indirectly and positively impacts process innovation and product innovation; and there is no significant difference in the effects of the two types of knowledge on the two types of innovation performance. Ambidextrous learning directly and positively affects process innovation and product innovation; ambidextrous organizational learning mediates the effect of market knowledge breadth on process innovation and product innovation, and this mediating effect is more pronounced with exploitative learning; ambidextrous organizational learning does not mediate the effect of market knowledge depth on both types of innovation performance.
    Keywords: market knowledge (depth and breadth), ambidextrous learning, process innovation, product innovation
    JEL: M10
    Date: 2018–07
  2. By: Jonathan Eberle (Department of Geography, Philipps University Marburg); Thomas Brenner (Department of Geography, Philipps University Marburg); Timo Mitze (Department of Business and Economics, University of Southern Denmark)
    Abstract: This paper analyzes the role played by regional conditioning factors, namely absorptive capacity and economic freedom, for the working of regional policy in Germany. We construct synthetic composite indicators to measure differences in these factors across German regions and stratify regions by their respective values. We then identify the subsample-specific transmission channels of regional policies in a spatial panel vector-autoregressive (VAR) framework and compare the direction and magnitude of effects by impulse-response function analysis and ex-post t-tests. The results point to two main channels of policy impact: While regions with low levels of absorptive capacity and economic freedom benefit from public funding only in terms of a traditional funding channel (i.e. higher investment rates and partly increased human capital levels), the link between regional policy, GDP and technology growth is very weak for these regions. In comparison, our findings hint at significant positive effects on regional GDP per workforce and patent activity for regions with a high absorptive capacity and economic freedom (i.e. a knowledge-based funding channel). This underlines the role of regional conditions for the direction and magnitude of funding effects and should be considered by policy makers as a means to trigger policy effectiveness in times of stagnating or decreasing funding volumes.
    Keywords: regional policy, production function, absorptive capacity, economic freedom, SpPVAR, impulse-response functions
    JEL: C33 R11 R58 O38 O47
    Date: 2018–10
  3. By: Kritsada Patluang (Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - This paper aims to contribute to inclusive development literature by empirically verifying that some "smart" or "knowledge-and innovation-related" competitiveness enhancing factors, besides raising competitiveness and growth, enable inclusiveness and sustainability. Methodology/Technique - The methodology used includes making ranks of frontier, advanced countries based on World Economic Forum data regarding competitive quantities and qualities of smart factors and growth and inclusive and sustainable outcomes. Then, a Spearman's rank correlation analysis is used to determine the similarities between each factor rank and each outcome rank. Findings - The smart factors show a significant relationship with both growth and inclusiveness/sustainability outcomes; this may be a target for use as policy instruments to promote both growth and inclusiveness. The study found that higher levels of business-sophistication and network-related training, access and use of existing-technology, and ICT utilization factors contribute to higher levels of growth and also infer higher levels of employment, intergeneration eco-adjusted savings and lower levels of inequality, poverty and carbon intensity. Novelty - Given that current government and international organization policies aimed at improving competitiveness/growth vis-à-vis inclusiveness/sustainability remain separated, the results of this study may assist in improving the collaboration between these two objectives. The policy implications of this study include: certain dual competitive-inclusive enhancing policies can be suitably designed and targeted to uplift smart elements and the acceleration of inclusiveness and sustainability alongside the competitiveness-growth nexus. Further, developing countries may learn to leapfrog the development frontier without developing competitiveness and inclusiveness/sustainability separately, but rather each at a time.
    Keywords: Competitiveness; Inclusive Development; Smart Policy; Sustainability; Frontier Transformation.
    JEL: O20 O32 O38 O43 P48 Q30 Q50
    Date: 2018–09–30
  4. By: Ugur, Mehmet; Awaworyi Churchill, Sefa; Luong, Hoang Minh
    Abstract: Endogenous growth theory and the knowledge capital model predict that research and development (R&D) investment is associated with increasing returns and positive externalities. These insights have informed public support for R&D investment directly and indirectly. We aim to establish where the balance of the evidence lies, the extent to which the evidence has adequate statistical power, and which factors may explain the variation in the empirical findings. Drawing on 983 spillovers and 501 own-R&D effect-size estimates from 60 empirical studies, we find that the average productivity effect of spillovers: (i) is smaller than what is reported in most narrative reviews; (ii) is even smaller when only adequately-powered evidence is considered; (iii) differs by spillover types; and (iv) is not larger than that of own-R&D. We also report that the percentage of adequately-powered evidence is low (30%-55%). We highlight the implications of these findings for future research and public policy design.
    Keywords: Knowledge externalities; R&D spillovers; productivity; public policy; meta-analysis;
    JEL: C1 D24 O30 O32 O33
    Date: 2018–10–16
  5. By: Llopis, Oscar; D’Este, Pablo; Adrián A. Díaz-Faes
    Abstract: This study examines the relationship between personal network characteristics and innovation performance. Specifically, it investigates the effects of two properties of personal networks on actors’ propensities to engage in innovation activities: network sparseness and network diversity. The study contributes also to decoupling social network structure and individual agency (i.e. tertius iungens orientation) as critical factors influencing engagement in innovation. The study highlights the importance of a particular strategic behavioral orientation of individuals to coordinate and mobilize network resources to foster the implementation of innovative ideas. Our findings show an inverted U-shaped relationship between network sparseness, network diversity and innovation, and a positive moderating role of a tertius iungens orientation on the curvilinear relationship between both network properties and innovation. Our hypotheses are tested on a large sample of Spanish biomedical scientists working in diverse institutional settings.
    Keywords: network sparseness, network diversity, brokerage, tertius iungens, innovation
    Date: 2018–03–20
  6. By: Ugur, Mehmet; Trushin, Eshref
    Abstract: Public subsidies are expected to stimulate business R&D investment by correcting market failures. However, the existing evidence varies considerably and the causes of heterogeneous effect sizes remain largely unexplored. We draw on the theory of contracts to argue that effect-size heterogeneity is due to different levels of informational rents that heterogeneous firm types can extract in a second-best environment of asymmetric information, risk aversion and incomplete contracting. Using two estimators and a panel dataset of 43,650 R&D-active UK firms from 1998-2012, we report that the effect of the subsidy on innovation inputs (i) is smaller or even negative during economic downturns; (ii) is positive among start-ups, younger and smaller firms, but negative among older and larger firms; and (iii) follows an inverted-U pattern when evaluated against the firm’s R&D intensity. Our findings are consistent across two estimation methods (propensity score matching and double robust estimators) and two innovation inputs (privately-funded R&D investment and employment of scientists and technicians).
    Keywords: Contract theory; treatment effect; R&D subsidy; innovation; additionality;
    Date: 2018–10–16
  7. By: Antonio Vezzani (European Commission – JRC); Emanuele Pugliese (European Commission - JRC); Petros Gkotsis (European Commission - JRC)
    Abstract: In this work we use patent data from the European patent office (EPO) to assess the capabilities of EU regions in developing digital technologies especially focusing on those that are more closely related to the digital transformation. More specifically, we measure ICT patents by considering those containing digital codes, as defined by the OECD. The penetration of digital technologies in the development of innovative products is instead captured by the co-occurrence of digital and non-digital codes within patent documents; we call these patents ICT-combining patents.
    Keywords: Industrial transformation, Industry, Digital technologies, ICT, Regional specialisation
    JEL: O30 O14 R10 R58
    Date: 2018–10
  8. By: Stadler, Manfred; Neus, Werner
    Abstract: We study an asymmetric triopoly in a heterogeneous product market where quantity decisions are delegated to managers. The two biggest firms are commonly owned by shareholders such as index funds while the smallest firm is owned by independent shareholders. Under such a cross-holding owner structure, the owners have an incentive to coordinate when designing their manager compensation schemes. This type of coordination leads to compensation contracts which make the managers less aggressive such that the firms involved in the coordination reduce their output while the outside firm increases its output. The reallocation of production induces a redistribution of profits: the outside firm and the most efficient firm owned by the index funds gain from the coordination while the less efficient firm owned by the index funds might suffer from a loss of profit if cost differences are large. The trade volume in the market is reduced so that shareholder coordination is detrimental to consumer surplus as well as welfare.
    Keywords: Index funds,cross holdings,shareholder coordination,strategic manager compensation
    JEL: G32 L22 M52
    Date: 2018
  9. By: Margaret Ngan-Fung Tang (Institute of Macao Polytechnic)
    Abstract: As the global business platform has accelerated innovative competitive advantage to a new frontier, more countries and organizations engage corporate social responsibility (CSR) practices, both public organizations and private enterprises penetrate deeper philosophy with enhanced understanding to reinforce the CSR for one?s long-term sustainable development in the global market environment. Corporate social responsibility has been nurtured for more than a few decades. It has been taken long tail period to develop from intangible ideology to the current status with popular general acceptance by broad stakeholders. As the well-off developed nations and countries have cascaded to the developing regions to proceed the latent CSR, it is denoted that the execution of such good intent is inherent to particular local conditions to interpret its unique corporate social responsibility dimensions and perspectives. In this empirical study, the research aims to inquire and assess the dimensions and experience of the integrated tourism and leisure enterprise (ITLE) in Macao on CSR and their effects. The research methodology adopted a combined approach. The qualitative content analysis draws on data from real-time seminar presentation reporting of the six gaming and leisure enterprises and an interview. One of the findings is that the government deemed having a key role to impact CSR engagements in an evolving contextual environment. Another finding is that the developing region may display an outside-in management perspective with shifting pattern CSR initiatives to share discretionary corporate management reporting. The research result provides researchers evaluative angles to gain pertinent understanding and aggregate insights to alert CSR directions for Macao. It also provides a snapshot of the future strategic CSR management development angles to advocate Macao towards a world-class leisure and resort tourism hub. The research results add understanding of the practical knowledge to the contextual CSR engagement and implication. Future research is proposed for the mixed method in order to comprehend and track sustainable CSR development under the hybrid competitive environment. The research concludes with business marketing and management implications.
    Keywords: corporate social responsibility (CSR), Integrated Tourism and Leisure Enterprise (ITLE)
    JEL: M16
    Date: 2018–07
  10. By: Rian Hilmawan; Jeremy Clark (University of Canterbury)
    Abstract: Previous research has found that in Indonesia, a resource giant in South East Asia, resource dependence is positively associated with economic growth, contrary to a 'resource curse' hypothesis. We test four potential causal mechanisms for this positive effect: spill overs to manufacturing, higher education provision, improvements in institutional quality, and investment in public capital. We follow 390 districts within Indonesia from 2006 to 2015, using four alternative measures of resource dependence, and instrumenting for their potential endogeneity. We first confirm a positive overall effect of resource dependence on real per capita Gross Regional Domestic Product. We then test the extent to which resource dependence positively affects manufacturing, education, public investment, and district institutional quality. We finally test the extent to which these factors contribute to growth. We find that resource dependence aids growth in part by raising measures of district institutional quality. Resource dependence also raises net high school enrolment rates, though we do not find that this in turn raises growth. Conversely, while higher capital spending by districts raises growth, we find no evidence that this share is affected by resource dependence. In auxiliary analysis, we find little support for the hypothesis that resource dependence benefits growth more (or only) for districts that begin with higher institutional quality.
    Keywords: Resource dependence, causal channels, economic growth, institutional quality
    JEL: Q32 Q33 Q38 O13 O43 O47
    Date: 2018–10–01
  11. By: Sabine Duvaleix-Treguer; Charlotte Emlinger; Carl Gaigné; Karine Latouche
    Abstract: The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese and cream industry. We use firm level data from the French custom and an original dataset of firms and products concerned by Protected Designations of Origin (PDO). Our estimations show that PDO labeling allows firms to increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO label as much as EU consumers.
    Keywords: Geographical Indication;PDO;Trade Margins;Product Quality;Price
    JEL: F10 F14
    Date: 2018–10
  12. By: ISHIKAWA Takayuki; EDAMURA Kazuma; TAKIZAWA Miho; MIYAKAWA Daisuke; MIYAGAWA Tsutomu
    Abstract: Quality is the most important characteristic of services. Using the survey on customer satisfaction conducted by the Japan Productivity Center, we examine what types of firms tend to provide higher quality services. Our empirical analysis suggests the following three features on the association between firm attributes and the quality of services provided by them. First, firms holding larger liquidity assets tend to provide higher quality service, which implies that customer satisfaction is associated with the accumulation of intangible manageable assets. Second, older firms tend to provide higher quality service, which implies that the accumulation of business experiences leads to higher quality service. Third, while we confirm that firms exhibiting substantially high productivity tend to obtain high customer satisfaction, we also find firms with seemingly low productivity also obtain high customer satisfaction. Such a non-linear relationship between productivity and customer satisfaction depends on industry characteristics.
    Date: 2018–09
  13. By: Ferdinand Niyimbanira (University of Mpumalanga)
    Abstract: Economic disparities across provinces and local municipalities are remarkable in developing countries such as South Africa. Economic development practitioners, policy makers, development planners, investors and business people alike have much to gain from a careful consideration of the economy. It is very important for local and foreign investors to know which industry is more concentrated in a particular area and which is non-existent. The identification of these industries allow investors to carefully take calculated opportunities and for development policy makers to prudently provide the right economic development direction. The main objective of this paper is to offer an empirical investigation of the geographic concentration of the main South African industries. This paper focuses on two economic base analysis techniques namely the location quotient and shift share technique that both seek to examine industrial dis/advantages, structure and competitiveness. The goal of economic base analysis is to uncover and reveal characteristics, strengths, weaknesses and trends that describe a regional economy. In this case, the industry Location Quotient (LQ) is a way of quantifying how concentrated industries are for each province compared to South Africa as a whole. Using data from Quarterly Labour Force Survey (QLFS) by Statistics South Africa (Stats SA) the paper report the findings over the period of 2012 to 2016. Preliminary key findings indicate that the comparative advantage of agriculture and mining declined between 2012 and 2016 in Mpumalanga, Limpopo and North West, whereas that of utilities, manufacturing improved in Northern Cape, KwaZulu Natal, Free State and Limpopo Provinces has increased. Furthermore, under the dynamic location quotient analysis, the agriculture and mining both have a location quotient in excess of 1.0, but require ?intensive care? in terms of planning and investment as their advantage have declined over time in three out of nine provinces. In addition, in terms of the dynamic location quotient, community services, finance, manufacturing and transport (ranked according to employment size) can be regarded as ?pre-emergent? industries in the Mpumalanga, Gauteng and Western Cape Provinces. In terms of shift share analysis, employment changes due to regional competitiveness were similar to changes due to industrial mix factors experienced in the mining, construction, transport and finance in the Eastern Cape, Mpumalanga and North West Provinces. Overall, the results suggest that policy makers should speed up the construction of large and medium sized industrial enterprises, promoting the development of secondary industry and actively enhance development of the tertiary industry.
    Keywords: Employment, economic growth, competitiveness, Location quotient, shift-share analysis
    JEL: R12 J21 B49
    Date: 2018–07
  14. By: D'Este, Pablo; Mc Kelvey, Maureen; Yegros-Yegros, Alfredo
    Abstract: This study contributes to advance understanding on the micro-level foundations of the relationship between scientific research and innovation. We adopt a relational approach to scientific research networks through the analysis of the content of network ties, in contrast to more standard network approaches which are grounded on structural features of networks. We argue that the perceived legitimacy afforded through ties within research networks play a critical role in reconciling the conflicting logics of science and innovation. The proposed hypotheses are empirically tested in the context of the Spanish biomedical research system, drawing on a large scale survey of biomedical scientists. Our results indicate that the scientists’ acquisition of legitimacy through their research network play a critical role in the context of the translation from scientific research to technological achievements and innovations. Our findings also show that past scientific impact has a reinforcing effect on the relationship between legitimacy acquisition and technological achievements. On the contrary, we find that direct interaction with beneficiaries provides an alternative path to reconcile the conflicting logics of science and market, by compensating for the lack of acquired legitimacy from research network.
    Date: 2018–03–20
  15. By: Mazhar Yasin Mughal (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Natalia Vechiu (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)
    Abstract: This paper studies the impact of FDI inflows on higher education in developing countries for the period 1998-2008. A large panel of developing countries is analyzed using different econometric techniques and specifications. We find evidence of short-term negative effect of the FDI on tertiary education measured by school enrolment. The negative effect of FDI is confirmed for both secondary and tertiary education when measured as the adult population having acquired the level. Among other control variables, GDP, demographic growth and the services sector value added seem to have a significant impact on higher education. GDP and services value-added show the expected positive impact, while population growth appears to affect education enrollment and attainment negatively. The study highlights the need for considering the differential aspects of foreign investments' nature and characteristics, rather than treating them as a cure-all pill for the developing countries' development problem.
    Keywords: FDI,Education,Human capital,Developing countries
    Date: 2018–10–01
  16. By: Carlos Alós-Ferrer; Michele Garagnani
    Abstract: Why do some individuals cooperate with their fellow human beings while others take advantage of them? The human drive for cooperation and altruism is one of the most powerful forces shaping our society, but there is an enormous behavioral variance in individual behavior. At the same time, whether it is intuitive to behave in a cooperative manner or whether such behaviors are calculated deeds remains an unanswered question. Indeed, recent empirical investigations regarding the spontaneity of human cooperation have found mixed evidence, possibly due to a failure to induce compliance in the behavioral manipulations employed. We conducted a laboratory experiment inducing intuitive and deliberative behavior through gradual economic incentives that ensure compliance. To account for individual heterogeneity, we independently measured social value orientation and aversion to interpersonal (strategic) uncertainty. We find that these measures determine the intrinsic predisposition towards cooperation. Subjects with more altruistic social values or a higher tolerance towards interpersonal uncertainty are more cooperative. Crucially, we find causal evidence that there is no universal default mode of behavior. Rather, intuition enhances intrinsic predispositions, while deliberation moderates them towards socially acceptable behavior. That is, subjects with a higher (resp. lower) predisposition towards cooperation became more (resp. less) cooperative under time pressure compared with time delay.
    Keywords: Cooperation, heterogeneity, time manipulations
    JEL: D01 D81 C9
    Date: 2018–10
  17. By: -
    Abstract: Economic relations between the Republic of Korea and Latin American and the Caribbean have expanded rapidly since 2000. Bilateral trade in goods increased more than fivefold, while the region has also become an important destination for Korean foreign direct investment. The region’s interest in Korea also stems from this country’s successful economic and social development experience, as it developed from being one of the poorest countries in the world to a high-income economy within less than six decades. To better understand the divergent trends in Korea and the region, this document reviews the most important innovation and small and medium-sized enterprises (SMEs) internationalization policies in both in three sections. The first section looks at the role of Latin America within Korea’s trade and integration strategy. The second reviews policies from both partners related to science, technology, innovation and labor skills. The final section focuses on SME internationalization policies. These reviews are complemented by a synthesis of recent bilateral cooperation initiatives and suggestions to increase these ties further.
    Date: 2018–10–09
  18. By: Mei-Tai Chu (La Trobe University)
    Abstract: This paper focuses on service innovation through the discovery of Chinese type service innovation in Alibaba. The purpose of service innovation is to provide an effective way to create sustainable competitive advantage for companies. By focusing on or building service strategies can help organizations overcome the barrier of maintaining growth in saturated markets and the problem caused by the effect of digitalization. Firms and industries stand to gain a lot by adopting service based innovation strategies and policy makers and various researchers are becoming increasingly intrigued by service innovations in the East especially China because they have grown exponentially in many industrial economies and are creating a new era in service innovation.Innovation is leading the change in the structure of Chinese economy and the outcomes so far are positive. Alibaba is becoming the prime example of the rise Chinese internet economy in the world. With is global sales of $300 billion dollar, Alibaba has proven itself to be a strong competitor for Amazon. In an interview with Reuters, executives said that by using Alipay, the Chinese consumers? trump card china is planning to attract American partners and enter the US market. This methodology of research includes conducting several in-depth interviews in Hong Kong, Beijing, Hangzhou and Taipei as well as employing the case study of Alibaba?s innovation by collecting public information. It aims to unveil Alibaba?s unique approaches compared to western type innovation.According to experts, it can be difficult to predict whether the Alibaba model is potentially transferrable into other countries. However, the with the rise of the internet of things and development of mobile payment systems, the research outcomes find there is a chance that there will be a new Alibaba era in a few years. The key to success for Alibaba is the fact that the Chinese market is large enough to accommodate a large ecosystem. As Chinese companies are becoming more profitable, they are more interested to invest more, involve mergers and acquisitions, and adopt modern technologies and stating to blow the wind of Chinese innovation to the western world. From the perspective of service innovation, the success of Alibaba helps capture the three aspects of their unique value propositions, profit generation and personnel creativity.
    Keywords: Service Innovation, China, Alibaba
    JEL: O31
    Date: 2018–07
  19. By: Seo-Young Cho (University of Marburg)
    Abstract: The economic success and innovative outcomes of the high performing East Asian countries, albeit often characterized as low-trust societies, suggests reexamination of the presumed positive relationship between social trust and innovation. Multi-level analyses conducted in this paper reveal that the role of social capital in innovation is different in East Asia. Shared social norms such as growth primacy and reciprocity and values of accepting competition and performance-based incentives are the most essential driving-force of innovation in the East Asian countries, whereas social trust does not play a positive role there. The importance of the shared social norms and collective goals can be explained by the prominent role of the state in the East Asian development.
    Keywords: social capital; social trust; social norms; social values; competition; innovation; entrepreneurship; high-performing East Asian economies
    JEL: J24 L26 N15 N75 O31 O43
    Date: 2018
  20. By: Stefano Ciliberti; Laura Carraresi; Stefanie Bröring
    Keywords: Agribusiness
    Date: 2017–09–01
  21. By: Purva Khera
    Abstract: Gender gaps in womens’ economic opportunities—labor market and entrepreneurship—have remained high in India. Lack of adequate collateral limits women entrepreneurs’ ability to access formal finance, leaving them to rely on informal sources, constraining their growth. A small-open economy DSGE model is built to investigate the long-run macroeconomic impacts from closing gender gaps in financial access. Results suggest that an increase in women entrepreneurs access to formal credit results in higher female entrepreneurship and employment, which boosts India’s output by 1.6 percent. However, regulations and gender-specific constraints in the labor market limit potential gains as females’ access to quality jobs in the formal sector remains restricted. The paper shows that the factors influencing the number of females are different from those influencing the share of females in formal economic activity. Combining gender-targeted financial inclusion policies with policies that lower constraints on formal sector employment could boost India’s output by 6.8 percent.
    Date: 2018–09–28

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