nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒11‒05
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. How Does the Global Network of Research Collaboration Affect the Quality of Innovation? By IINO Takashi; INOUE Hiroyasu; SAITO Yukiko; TODO Yasuyuki
  2. Innovation in Croatian Organizations as a Tool for Improvement of National Competitiveness By Pureta, Igor; Pureta, Tanja
  3. Digital Innovation Hubs in Smart Specialisation Strategies By Gabriel Rissola; Jens Sorvik
  4. Causal Effects of Software Patents on Firm Growth: Evidence from a policy reform in Japan By YAMAUCHI Isamu
  5. Financial constraints matter : Empirical evidence on borrowing behavior, microfinance and firm productivity By M.A. Boermans; Daan Willebrands
  6. High Growth Young Firms: Contribution to Job, Output and Productivity Growth By John Haltiwanger; Ron S. Jarmin; Robert Kulick; Javier Miranda
  7. Basic Information and Communication Technology Skills among Canadian Immigrants and Non-Immigrants By Truong, N. T. Khuong; Sweetman, Arthur
  8. Enabling Creative Destruction : An Entrepreneurial Ecosystem Approach to Industrial Policy By F.C. Stam
  9. Innovation induced by public procurement: A firm-level analysis for Italy and Norway By Divella, Marialuisa; Sterlacchini, Alessandro
  10. New perspectives in European innovation policy By Krieger, Bastian; Licht, Georg; Pellens, Maikel
  11. Governance and social media in African countries: an empirical investigation By Simplice Asongu; Nicholas Odhiambo
  12. Strategic Leadership Style and Commitment to Service Quality on Services Innovation in Local Enterprise Water Services By Nur Afifah

  1. By: IINO Takashi; INOUE Hiroyasu; SAITO Yukiko; TODO Yasuyuki
    Abstract: This study examines how the research collaboration of firms affects the quality of their innovation outcomes using comprehensive patent data for firms in the world from 1991 to 2010. Identifying research collaboration by co-patenting relationships, we find that research collaboration with other firms, particularly with foreign firms, leads to substantial improvement in innovation quality. We also observe an inverted U-shaped effect of the density of a firm's ego network and a positive effect of brokerage in the global network, especially for firms with international collaboration experiences. These results are applicable to the effect on the quality of innovation achieved individually without any collaboration, suggesting that the knowledge of firms diffuses to and is acquired by their collaboration partners. Finally, we find that the collaboration effect is larger in the 2000s than in the 1990s and varies across countries.
    Date: 2018–10
  2. By: Pureta, Igor; Pureta, Tanja
    Abstract: It is in the interest of companies and the overall economy to create favorable conditions for the implementation of innovation activities. For an organization to operate successfully and survive in the modern market, characterized by rapid changes, it is important to continually examine all aspects of business, constantly innovate them, and successfully adapt to new requirements. As the success and innovation of the organization depends on successful and innovative employees, the aim of this study was to determine the extent to which innovation has become implemented in Croatian organizations, how employees feel involved in innovative thinking about business, how much they care about it, and what the key factors are that promote or hinder the development of an innovative climate. The purpose of this study was to understand current business practices and attitudes of employees at different management levels, to understand innovation in the organizations that they work, and to devise various measures for improvement which are in line with modern scientific theories and can be used to encourage Croatian national competitiveness.
    Keywords: innovation, competitive advantage, transformational leadership,organizational performance
    JEL: J24 O15 O31
    Date: 2017–03
  3. By: Gabriel Rissola (European Commission - JRC); Jens Sorvik
    Abstract: This report examines the synergetic place-based relationships of Digital Innovation Hubs (DIH) and Smart Specialisation Strategies (S3) in selected European regions, with DIHs being the policy outcome of a S3 process or an active actor participating in S3 entrepreneurial discovery processes (EDP) and implementing parts of a S3. By supporting the digitisation of the local industry DIHs also enhance the regional innovation ecosystem, either with the provision of horizontal digitalisation support or by leading a S3 priority area. One clear role of DIHs is to make available support easier to find for local SMEs and industry. DIHs work according to different business models and a targeted funding mix plus a matrix of different funding instruments for the digital transformation of SMEs are required for their sustainability. The report compiles 7 relevant examples (1 national and 6 regional).
    Keywords: Digital Innovation Hubs, DIH, Smart Specialisation Strategies, S3, RIS3, digital growth, digital transformation, digitisation, industry, SME, regional policy, regional cases
    Date: 2018–10
  4. By: YAMAUCHI Isamu
    Abstract: The patentability of software dramatically expanded in the United States, European Union, and Japan during the 1990s. Using the exogenous policy change, this paper identifies the causal effect of filing software patents through the policy reform on the firms' subsequent growth. We find that small software firms as well as large firms increase software patent applications due to the expansion of patentable subject matter. However, the results show that such patent explosion has an insignificant effect on larger firms' performance, while it improves the subsequent performance of small and medium-sized enterprises (SMEs). We also find that the number of patent attorneys in the same prefecture has a significant effect only for small firms, which is the main driving factor of improving the firm's performance. These results suggest that broadening the scope of software patents does contribute to innovation, especially for SMEs with a small patent portfolio and business assets through decreasing the cost of patenting activity.
    Date: 2018–09
  5. By: M.A. Boermans; Daan Willebrands
    Abstract: This paper examines the effect of financial constraints on firm performance using a sample of small business owners who are client at a microfinance institution (MFI). In developing countries, a lack of access to finance is seen as a key obstacle to successful entrepreneurship and economic growth. However, empirical evidence on this is still fragmented and sparse. This study contributes to the literature by applying an alternative measure of financial constraints based on actual lending and borrowing behavior to test how borrowing affects firm productivity. We use survey data of 615 entrepreneurs from Tanzania to analyze the relationship between financial constraints and labour productivity. Using OLS regression and propensity score matching techniques the results show that financial constraints impede labour productivity and are important barriers to successful entrepreneurship. Further tests suggest that financial constraints matter regardless of the measurement method used, thereby comforting researchers in a fragmented field which applies a wide range of financial constraints variables.
    Keywords: Entrepreneurship, credit constraints, access to finance, firmperformance
    Date: 2018
  6. By: John Haltiwanger; Ron S. Jarmin; Robert Kulick; Javier Miranda
    Abstract: Recent research shows that the job creating prowess of small firms in the U.S. is better attributed to startups and young firms that are small. But most startups and young firms either fail or don’t create jobs. A small proportion of young firms grow rapidly and they account for the long lasting contribution of startups to job growth. High growth firms are not well understood in terms of either theory or evidence. Although the evidence of their role in job creation is mounting, little is known about their life cycle dynamics, or their contribution to other key outcomes such as real output growth and productivity. In this paper, we enhance the Longitudinal Business Database with gross output (real revenue) measures. We find that the patterns for high output growth firms largely mimic those for high employment growth firms. High growth output firms are disproportionately young and make disproportionate contributions to output and productivity growth. The share of activity accounted for by high growth output and employment firms varies substantially across industries - in the post 2000 period the share of activity accounted for by high growth firms is significantly higher in the High Tech and Energy related industries. A firm in a small business intensive industry is less likely to be a high output growth firm but small business intensive industries don’t have significantly smaller shares of either employment or output activity accounted for by high growth firms.
    Date: 2017–02
  7. By: Truong, N. T. Khuong (McMaster University); Sweetman, Arthur (McMaster University)
    Abstract: Male immigrants are observed to be disproportionately employed in ICT information and communication technology (ICT) industries and occupations. A measure of basic ICT skills is employed to document differences in skill levels and labour market earnings across immigration classes and categories of Canadians at birth. Adult immigrants, including those assessed by the points system, are found to have lower average ICT scores than Canadians at birth, although the rate of return to ICT skills is not statistically different between them. Immigrants who arrive as children, and the Canadian-born children of immigrants, have similar outcomes to the Canadian-born children of Canadian-born parents.
    Keywords: information and communication technologies (ICT), skills, immigration, PIAAC, problem-solving in technology-rich environments (PSTRE), digital literacy, problem-solving, skill shortage
    JEL: J24 J31
    Date: 2018–09
  8. By: F.C. Stam
    Abstract: Creative destruction is important for long term economic development, but hard to target with industrial policy. How to stimulate creative destruction? In this article, we set out with a critique of existing industrial policy approaches and make a plea for a “backing challengers†industry policy, which enables the creation of innovative start-ups and Schumpeterian creative destruction. This “backing challengers†policy is least likely to fall prey to the usual information and vested interest problems of industrial policy. We construct an entrepreneurial ecosystem approach to policy, which provides a synthesis of scientific insights into entrepreneurship and economic development, and a more adequate complex system perspective on the economy. We also offer diagnostics for developing policy in consultation of and collaboration with public and private stakeholders. In this way the design and implementation of policy is informed by scientific knowledge on entrepreneurial ecosystems, but also local knowledge about the context-specific bottlenecks, and involvement of the relevant stakeholders that is necessary for a successful implementation of policy.
    Keywords: Entrepreneurial Ecosystems, Industrial Policy, Government Failures, MarketFailures, Innovative Start-ups, Creative Destruction, Tr
    Date: 2018–09
  9. By: Divella, Marialuisa; Sterlacchini, Alessandro
    Abstract: In this paper, we focus on public procurement for innovation. We provide a broad characterization of the firms involved in “innovative public procurement” as opposed to firms participating in “regular” (i.e. non innovative) public procurement, including those firms that perform innovation in an autonomous way (i.e. not related to public procurement). Moreover, we identify the main determinants of the firms’ propensity to innovate, when innovative activities are related to a public procurement contract. We carry out this study by using micro-data from two Community Innovation Surveys for Italian and Norwegian firms, which have released information on firms having public procurement contracts. Our main findings highlight important differences between firms engaged in regular or innovative public procurement, in particular regarding the role of firm size and sectors, the presence of in-house R&D activities and the educational level of employees.
    Keywords: public procurement, firms’ innovation, Italy, Norway
    JEL: H57 O31 O33 O38
    Date: 2018–10–19
  10. By: Krieger, Bastian; Licht, Georg; Pellens, Maikel
    Abstract: Innovation is essential for economic growth, and governments must encourage firms to increase their investments in innovation. Europe is losing ground to its main Asian competitors when it comes to R&D investment, and is barely keeping pace with the U.S. Moreover, the rate of return on innovation has become significantly weaker in Europe. This has been caused by its relative lack of innovative SMEs, the slow diffusion of innovation, and the increasingly competitive innovation marketplace. In this light, scholars and policy makers are arguing for a new approach to European innovation policy that puts more weight on the development of disruptive innovation and on the diffusion of new technologies throughout the market.
    Date: 2018
  11. By: Simplice Asongu (Yaoundé/Cameroun); Nicholas Odhiambo (Pretoria, South Africa)
    Abstract: This study assesses linkages between social media and governance dynamics in 49 African countries for the year 2012. The empirical evidence is based on ordinary least squares and quantile regressions. Ten bundled and unbundled governance dynamics are used, notably: (i) political governance (entailing “voice & accountability” and political stability/no violence); (ii) economic governance (involving regulation quality and government effectiveness); (iii) institutional governance (comprising the rule of law and corruption-control) and (iv) general governance (entailing political, economic and institutional governance). Social media is measured with Facebook penetration. The findings show that Facebook penetration is positively associated with governance dynamics and these positive nexuses differ in terms of significance and magnitude of significance throughout the conditional distribution of the governance dynamics.
    Keywords: Governance; Social media; Africa
    JEL: G20 O38 O40 O55 P37
    Date: 2018–01
  12. By: Nur Afifah (Universitas Tanjungpura, 78124 Pontianak, West Kalimantan, Indonesia Author-2-Name: Ilzar Daud Author-2-Workplace-Name: Universitas Tanjungpura, 78124 Pontianak, West Kalimantan, Indonesia 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 study explores and examines the theoretical framework regarding the influence of strategic leadership styles that include transformational leadership style and transactional leadership styles as well as their influence on commitment to service quality and how leadership style influences service innovation in local enterprise water services. Methodology/Technique - The number of respondents in this study were 120 employees who were selected using a purposive sampling method and were represented by each section relating to the task of serving customers. Structural Equation Modeling (SEM) is used to analyze the research data.Findings - The results show that transformational leadership style has an influence on commitment to services quality and service innovation. Novelty - Likewise, the transactional leadership style affects commitment to services quality, but it does not affect service innovation.
    Keywords: Transformational and Transactional Leadership Style; Commitment to Service Quality (CSQ); Service Innovation (SI).
    JEL: M10 M11 M19
    Date: 2018–09–29

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