nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2018‒12‒03
thirteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation and Productivity in the Food vs. the High-Tech Manufacturing Sector By Frick, F.; Jantke, C.; Sauer, J.
  2. The Boundary of Agricultural Marketing Cooperatives in Africa: A Conceptual framework and empirical evidence from Ethiopia By Tadesse, G.; Badiane, O.
  3. Gender and Leadership ? Do female leaders perform a different, better or even a healthier Leadership Style? By Frank Hager
  4. Productivity spillovers from multinational activity to local firms in Ireland By Mattia Di Ubaldo; Martina Lawless; Iulia Siedschlag
  5. Mobilising European Structural and Investment Funds and Horizon 2020 in support of innovation in less developed regions By Dimitrios Pontikakis; Mathieu Doussineau; Nicholas Harrap; Mark Boden
  6. Making ideas work for society: University cooperation in knowledge transfer By Ritzen, Jo
  7. Effect of Transformation Leadership on Innovative Work Behavior ? A case study of Thai Service Provider By Ek-anong TANGRUKWARASKUL; Kiriya KULCHANARAT
  8. On the Competitiveness Effects of Quality Labels: Evidence from the French Cheese Industry By Sabine Duvaleix-Treguer; Charlotte Emlinger; Carl Gaigné; Karine Latouche
  9. An analytical framework to assess the governance of universities and their involvement in Smart specialisation strategies By Eskarne Arregui-Pabollet; Mathieu Doussineau; Markus Dettenhofer
  10. Innovation policies in the digital age By Dominique Guellec; Caroline Paunov
  11. Government Ownership, Firm Performance and Corporate Philanthropy in Thai Listed Firms By Usarat Thirathon; Suneerat Wuttichindanon
  12. Higher Education Instruments and Smart Specialisation Innovative Industrial Doctorates and Higher Technical Institutes in Puglia By Elisabetta Marinelli; Alessio Cavicchi; Annamaria Fiore; Gigliola Paviotti; Elisa Gerussi; Simona Iammarino
  13. Smart Specialisation at work: Assessing investment priorities By Carlo Gianelle; Fabrizio Guzzo; Krzysztof Mieszkowski

  1. By: Frick, F.; Jantke, C.; Sauer, J.
    Abstract: The food sector is considered a mature and a research and development (R&D) extensive industry. Nevertheless, also food companies face numerous challenges and cannot abstain from innovation activity if they want to keep their competitive stance. We examine the impact of innovation on labor productivity in European food companies in comparison to results for firms operating in high-tech sectors. The central motivation of our study is that the observed low R&D intensity in the food sector should be mirrored in different productivity effects of innovation when compared to the high-tech sector. We use microdata from the European Union s Community Innovation Survey (CIS) and apply an endogeneity-robust multi-stage model that has been applied by various recent studies. Our results point out major differences between the examined subsectors. While we find strong positive effects of innovation on labor productivity for food firms, we find insignificant effects in the high-tech sector. This suggests that the returns to innovation might be best evaluated separately by sector rather than for the manufacturing sector as a whole. Acknowledgement :
    Keywords: Labor and Human Capital
    Date: 2018–07
  2. By: Tadesse, G.; Badiane, O.
    Abstract: Informed by the boundary of the firm, this paper explains the concepts, determinants and importance of boundary in cooperative organizations. In a marketing cooperative context, we define boundary as the type and number of marketing activities or services that a cooperative organization provides to its members. Using a mix of theory from transaction cost economics, industrial organization and collective actions, the conceptual analysis predicts the importance of the type of goods (being a club good or not) the cooperatives generate to their members, as opposed to market imperfection per se, to define a competitive boundary. We then empirically tested if the observed weak performance of marketing cooperatives in Africa is explained by the strategic failure of engaging in markets where they do not have the competitive and comparative advantages using a unique data set from Ethiopia. The empirical tests proofed that the competitiveness of a cooperative in attracting and committing its members is positively and significantly related to the likelihood of a cooperative providing a club good. However, significant number of cooperatives in Ethiopia engaged in services for which the markets are not convincingly imperfect. Furthermore, they participate in markets that generate public goods rather than club goods. Acknowledgement :
    Keywords: Marketing
    Date: 2018–07
  3. By: Frank Hager (University of Latvia - Faculty of Economics and Management)
    Abstract: Organizations are facing new challenges due to the constantly changing world of work. In addition to technical developments and innovations in work and organizational processes, the human factor is increasingly becoming part of competitiveness. Businesses benefit greatly from their employees, their knowledge and skills during this fast-moving time. Healthy employees are a prerequisite for innovation, progress and growth, which must be protected as part of a sustainable corporate strategy. Thus, in scientific discussions, both, workplace health promotion and healthy leadership are considered to be successful components in dealing with volatile, dynamic and complex conditions. Conduct of executives has a significant influence on the well-being of the employees and thus a direct effect on the company's success. Managers can influence social relationships as well as prevailing work situations ? and finally the health status of employees. In occupational science studies as well as in leadership research, the differences in leadership between men and women are analyzed. There are very few studies on healthy leadership that examine gender differences more closely. This paper deals with the question of how gender differences affect leadership behavior, leadership styles, and ultimately leading employees in a health oriented way.
    Keywords: leadership, health-oriented leadership, leadership styles
    JEL: M12 I15
    Date: 2018–11
  4. By: Mattia Di Ubaldo (Economic and Social Research Institute); Martina Lawless (Economic and Social Research Institute); Iulia Siedschlag (Economic and Social Research Institute)
    Abstract: As well as their direct effects on output and employment, the attraction of foreign direct investment is sometimes argued to provide further economic benefits through spillover effects that potentially increase the productivity performance of domestic firms. Empirical evidence on these indirect effects has however tended to be mixed. This paper uses Irish firm-level data on both manufacturing and services firms to re-examine and update evidence on intra-industry and intra-region spillovers and then extends the previous research by examining if spillovers are more likely to occur through supply chain linkages. In addition, we consider the heterogeneity of investors and allow the spillover effects to differ for foreign affiliates owned by EU and non-EU based parent companies. Finally, we examine the role of domestic firms’ absorptive capacity in conditioning the effects of spillovers from multinationals on their productivity. Overall, we find limited evidence or a negative link between the presence of foreign-owned firms and the productivity of domestic firms in the same industry or the same region. Examining forward and backward linkages through supply chains indicates that on average, selling to foreign-owned firms had a positive effect while buying from foreign owned firms had a negative effect on the average productivity of domestic firms. Finally, considering the absorptive capacity of domestic firms and allowing the spillover effects to differ depending on the origin of the parent companies, we find that the positive productivity spillovers come from supply chain linkages between domestic firms investing in R&D and foreign affiliates of multinationals with headquarters based outside the EU.
    Keywords: absorptive capacity, Foreign direct investment, productivity spillovers
    JEL: D22 F23 O33
    Date: 2018–11–30
  5. By: Dimitrios Pontikakis (European Commission - JRC); Mathieu Doussineau (European Commission - JRC); Nicholas Harrap (European Commission - JRC); Mark Boden (European Commission - JRC)
    Abstract: How can EU policies support the development of innovation capabilities in less developed regions? This note examines the mobilisation of the EU’s two major innovation support instruments: the European Structural and Investment Funds (ESIF) and Horizon 2020 (H2020). Using data from Eurostat and European Commission administrative data on ESIF and H2020 funding, we observe a number of salient patterns: While newer member states benefit from higher research and innovation allocations from ESIF, participation in H2020 remains a formidable challenge. Across Europe we find that H2020 participation is closely associated with a number of proxies of the development of national and regional innovation systems. With few exceptions (most notably Slovenia and the Czech Republic) newer member states are characterised by lower overall R&D intensity, their research and innovation systems are less internationalised and most R&D is performed by public research institutions rather than businesses. Based on a review of literature on the determinants of participation in the H2020 (and its predecessor Framework Programmes), the history of today's advanced innovation systems and a consideration of the objectives of, modes of intervention of and possible complementarities between ESIF and H2020 we single out international collaboration and business innovation capabilities as important instrumental objectives for development-minded policy.
    Keywords: Synergies, Horizon 2020, ESIF, Innovation
    Date: 2018–11
  6. By: Ritzen, Jo (UNU-MERIT)
    Abstract: Sustainable economic growth is more brought about by ideas, knowledge and human capital than by physical capital, like machines, buildings or land. Universities are one of the sources of ideas and of human capital. We focus on the third function of universities, next to education and research, in particular on knowledge transfer. Knowledge transfer is highly visible in agglomerations like Silicon Valley. Many countries nowadays have strategies to step up knowledge transfer as a source of sustainable economic growth. Knowledge is recognised to have its strongest potential impact close to the place where it is generated. This makes a university attractive to the region in which it is located. The university contributes to sustainable economic growth not only through the expenditures associated with the running of the university, but perhaps more by the knowledge transfer. This involves amongst others partnerships with business. Knowledge transfer does not come by itself. It requires action and strategy on the part of the university, the region and local public or private actors (businesses and public organisations). It appears that US and UK top-universities are more prominent not only in realising cooperation with business, but also among each other.
    Keywords: Knowledge transfer, innovation, public-private collaboration, university-business cooperation, triple helix
    JEL: I21 I25 O31 O32 O33 O34
    Date: 2018–11–09
  7. By: Ek-anong TANGRUKWARASKUL (Kasetsart University); Kiriya KULCHANARAT (Kasetsart University)
    Abstract: Competing in an innovation-driven economy, firms are striving for innovation success in order to stay in a competitive edge. Employee innovative work behavior (IWB) is considered as a source and strategic factor driving organization to become more innovative and, hence to better perform. A number of literatures confirm the effect of leadership on employee performance. Likewise, it is assumed in this study that employee innovative work behavior should also be effected from the leadership of their team leaders. A transformational leader transforms how employees work and innovate. This transformation motivates employees to strive for the collective goals of becoming innovative organization. This study explore the effect of transformational leadership on employee?s work behavior and was carried out on a purposively selected sample of 260 IT employees working in a service provider company in Thailand. While employee?s work behavior was measured using 11-items measure based on the framework developed by De Jong and Den Hartog (2010), transformational leadership was measured in four dimensions; (1) idealized influence, (2) inspirational motivation, (3) intellectual stimulation behavior, and (4) individualized consideration, according to the framework proposed by Bass and Avolio (1990). Factor analysis and multiple regression analysis were carried out. The result suggests that transformational leadership has positive effect on innovative work behavior and could explain employee work behavior up to 26.7%.
    Keywords: Innovative Work Behavior, Transformational Leadership, Service Provider
    JEL: M15 O33
    Date: 2018–11
  8. By: Sabine Duvaleix-Treguer (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Charlotte Emlinger (Centre d'Etudes Prospectives et d'Informations Internationales); Carl Gaigné (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST, CREATE - CREATE); Karine Latouche (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)
    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: product quality,trade margins,geographical indication,PDO,price
    Date: 2018
  9. By: Eskarne Arregui-Pabollet (European Commission - JRC); Mathieu Doussineau (European Commission - JRC); Markus Dettenhofer (CEITEC- Central European Institute of Technology)
    Abstract: The renewed EU agenda for higher education (European Commission, 2017) has emphasized that higher education institutions are not contributing as much as they should to innovation in their regions and countries. The engagement of universities in S3 has shown to be particularly important in countries and regions with weaker regional innovation systems and sub-critical public institutional capacity. The ability of universities to bring together education, research and innovation, places them as particularly important stakeholders to contribute to the research and innovation system. Nevertheless, becoming more engaged in regional innovation policies and S3 requires an important strategic vision and institutional change by HEIs to be able to engage in co-creation dynamics with quadruple helix actors. Moreover, the ability of universities to adjust their working agenda could require some change in their common practices. How they can manage this, mandates a governance framework which can allow for agility from institutes steeped in tradition. The issue of governance is complex, multi-dimensional, and often involves changes in policy, behaviour and outreach for a successful implementation of set objectives. Institutional governance in general and for universities in particular, implies setting in motion or overseeing various institutional processes and regulatory provisions to allow for the planned targets and outcomes to be achieved. The current policy brief proposes an analytical framework for university governance allowing the comparison and benchmarking of governance systems across EU member states, which could serve as guidance for university managers and policy makers to design the institutional incentives and funding programmes for increased engagement in S3. This analytical framework is experimented through a survey involving 74 European universities, the analysis of country annual reports of the Research and innovation observatory (RIO) and the knowledge generated in S2E project covering particularly EU13 countries and the higher education for Smart specialisation initiative (HESS). The main results and limits are commented and discussed with some recommendations.
    Date: 2018–11
  10. By: Dominique Guellec (OECD); Caroline Paunov (OECD)
    Abstract: This paper looks at how digitalisation is transforming innovation, and the consequent need for innovation policies to adapt. The paper shows that the digital transformation affects the economics of information and knowledge, in particular pricing and allocation. The reduced costs of producing and handling information and knowledge and the increased fluidity change innovation dynamics. Data have become a core input for innovation. Other changes include more opportunities for versioning; an acceleration in innovation, more experimentation and collaboration; servitisation; and higher risk associated with these general purpose technologies. The digital transformation also has economy-wide effects in terms of business dynamics, market structures and distribution. In view of this transformation, changes to innovation policy are required in the digital age. Innovation policies need to address data access issues; become more agile; promote open science, data sharing and co-operation among innovators; and review competition for innovation and intellectual property policy frameworks.
    Keywords: acceleration of innovation, digital innovation, digital technologies, economics of knowledge and information, innovation policy, market structures, servitisation
    JEL: L20 O31 O33
    Date: 2018–11–13
  11. By: Usarat Thirathon (Kasetsart University); Suneerat Wuttichindanon (Kasetsart University)
    Abstract: Studies in corporate social responsibility (CSR) have been tremendously conducted in both terms of CSR determinants and consequences. The results, however, are inconclusive yet. Rather using an aggregated score, this study focuses on one CSR strategy at a time. Philanthropy is focused because it is extensively chosen. Thailand is a Buddhist-based country and documented that philanthropy outstandingly appears. The disclosures on philanthropy activities are observed. Using a path analysis, this research found that philanthropy makes firm financial performance increased. Firm size and industry are important factors of philanthropy. Large firms and firms in high impact industry (i.e. oil and gas, and chemical) have a higher number of philanthropy activities. Government ownership, however, has no impact on philanthropy. The empirical findings support the corporate visibility as a determinant of CSR.
    Keywords: CSR in Thailand, philanthropy, CSR-CFP link
    JEL: M49
    Date: 2018–11
  12. By: Elisabetta Marinelli (European Commission – JRC); Alessio Cavicchi (Universita di Macerata); Annamaria Fiore (ARTI Puglia); Gigliola Paviotti (Universita di Macerata); Elisa Gerussi (European Commission – JRC Seville); Simona Iammarino (London School of Economics and Political Sciences)
    Abstract: Universities have been mainly included in the S3 debate as creators or vectors of knowledge, their higher education mission has been somewhat overlooked. For this reason, in March 2016, the Joint Research Centre of the European Commission has started a project on the role of Higher Education in Smart Specialisation (HESS). This document reports the action-research activities conducted under the HESS project in the region of Puglia (IT). The authors explored two instruments at the opposite end of the higher education spectrum: Istituti Tecnici Superiori (ITSs), i.e. Higher Technical Institutes, a form of technology-based vocational education and training. Innovative Industrial Doctorates (IIDs). These new instruments have not been explicitly taken into account during the development and early implementation of the strategy; however, it has become increasingly important to reflect on the process of human capital creation for S3. The two instruments appear suited to this reflection as they implement curricula designed in collaboration with the local private sector and with an explicit focus on technological development and employability. The report explores the challenges and opportunities ITSs and IIDs pose, as a first step to understand their potential contribution to Smart Specialisation.
    Keywords: Smart Specialisation, Innovation, Vocational Training, Higher Education, Universities, Puglia, Apulia
    Date: 2018–10
  13. By: Carlo Gianelle (European Commission - JRC); Fabrizio Guzzo (European Commission - JRC); Krzysztof Mieszkowski (European Commission - JRC)
    Abstract: This paper provides a methodology to assess how national and regional authorities define their research and innovation investment priorities for smart specialisation. It then tests the methodology empirically, based on a significant sample of research and innovation strategies for smart specialisation from Italy and Poland. The paper helps to fill a gap in the emerging literature on smart specialisation regarding the definition of investment priority areas, while providing useful analytical elements to orient policy impact evaluation exercises. We found that research and innovation priorities in Italy and Poland are defined in line with a multi-level, tree-like structure whose higher hierarchical level usually contains a few broad dimensions, and whose branches cover several specific activities. When considered individually, most of those activities represent suitable smart specialisation priorities. Yet, some of the examined strategies contain priorities that do not fully reflect the smart specialisation logic. Several strategies encompass tens or even hundreds of activities. It is beyond the scope of the present study to evaluate the appropriateness of a certain set of investment priorities in relation to the characteristics of a region or country. However, our analysis raises an important question about the capacity of the strategy management bodies to effectively support the development of huge sets of activities each of which potentially requires specific competences and dedicated administrative and technical resources. Also, large sets of priorities may de facto circumvent the smart specialisation principle of selective intervention, as the strategies ultimately cover broad economic areas.
    Keywords: Regional innovation policy; smart specialisation; investment priorities; selective intervention
    JEL: O25 O30 R12 R58
    Date: 2018–11

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