nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒02‒18
eleven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. “Technological cooperation and R&D outsourcing at the firm level: The role of the regional context ” By Damián Tojeiro-Rivero; Rosina Moreno
  2. A multi-dimensional analysis on how different types of innovations impact SMEs business performance By Juan A. Sanchis-Llopis; Alfonso Expósito
  3. Innovation, productivity, exports and the investment climate: A study based on Indian manufacturing firm-level data By Patrick Plane; Marie-Ange Veganzones-Varoudakis
  4. “Green regions and local firms’ innovation” By Lorena M. D’Agostino; Rosina Moreno
  5. Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis By Christian Hundt; Linus Holtermann; Jonas Steeger; Johannes Bersch
  6. Product Innovation and Educational Diversity in Top and Middle Management Teams By Schubert, Torben; Tavassoli, Sam
  7. Analysis of two public-private collaborative R & D support schemes By Ch. BELLÉGO; V. DORTET-BERNADET; M. TÉPAUT
  8. Are “happy” firms all alike? A comparative analysis of Italian and German manufacturing systems By A. Arrighetti; F. Landini
  9. Industry Competitiveness Indicators By Mette Asmild; Tomas Baležentis; Jens Leth Hougaard
  10. Binding constraints of economic growth on poverty: A dynamic panel data analysis By Ngepah, Nicholas; Espoir, Delphin Kamanda
  11. Assessing the innovation capability of EU companies in developing dual use technologies By Federico Caviggioli; Antonio De Marco; Giuseppe Scellato

  1. By: Damián Tojeiro-Rivero (AQR-IREA Research Group, University of Barcelona. Department of Econometrics, Statistics and Applied Economics. Av. Diagonal 690, 08034 Barcelona, Spain. Tel.(+34) 934 021 412.); Rosina Moreno (AQR-IREA Research Group, University of Barcelona. Av. Diagonal 690 - 08034 Barcelona (Spain). Tel. +34934021823 - Fax +34934021821.)
    Abstract: Much has been said about the role that technological networking activities play on the innovative performance of firms, but little is known about the relevance of the context where the firm is locate shaping the efficiency of such networking activities. In this article we hypothesize that the transformation of firms' networking activities into innovation may vary depending on the regional environment in which the firm is located. For Spanish manufactures in the period 2000-12 and through the use of a multilevel framework, we obtain that after controlling for the firm's characteristics, the regional context has not only a direct effect on firms' innovation performance, but it also conditions the returns to firms' networking activities, although differently in the case of cooperation and outsourcing. Cooperating in innovation activities is more beneficial for those firms located in a knowledge intensive region, whereas R&D outsourcing seems to be more profitable for firms in regions with a low knowledge pool.
    Keywords: Technological cooperation, R&D Outsourcing, Local Knowledge Spillovers; Multilevel; Panel data; Spanish Firms, Manufactures. JEL classification: D21, D22, O31, R10, R15
    Date: 2019–02
  2. By: Juan A. Sanchis-Llopis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).); Alfonso Expósito (Department of Economic Analysis and Political Economy, University of Seville, Calle San Fernando 4, 41004 Sevilla (Spain).)
    Abstract: This paper examines the impact of innovation decisions on business performance for small and medium-sized enterprises based on a multi-dimensional analytical approach. With this aim, the impact of the firm’s innovation decisions (in terms of the introduction of product, process, and/or organisational innovation) on four alternative performance indicators (two financial indicators: sales increase and cost reduction; and two operational indicators: increase of productive capacity and improvement in quality) is analysed. Additionally, an array of potential moderating determinants (such as firm and entrepreneur characteristics) are controlled for. Our findings highlight the existence of positive impacts of innovation decisions on both dimensions of business performance (financial and operational), but these impacts significantly differ depending on the type of innovation and the performance indicator considered. Thus, in order to study the multifaceted effects of innovation decisions made by the firm, results point out that the relationship between innovation (product, process, or organisational) and business performance should be analysed from a multi-dimensional approach. These findings imply significant implications for the design and implementation of innovation strategies in SMEs, since these should be tailored according to the business performance sought by the firm.
    Keywords: innovation, business performance, SMEs, Spain
    JEL: M21 L25 O30
    Date: 2019–02
  3. By: Patrick Plane (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Marie-Ange Veganzones-Varoudakis (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We study the interactions between firm-level innovation, productivity and exports in the case of the Indian manufacturing sector. To differentiate the incentives to innovate from the ability to innovate, we distinguish the inputs of innovation (R&D and training), from the outputs. Our findings highlight a virtuous circle between the three components of innovation, as well as between firm-level R&D, innovation and exports. The results suggest a positive effect of R&D on innovation (product innovation in particular), of innovation on exports (product and marketing innovation especially), and of exports on R&D. Furthermore, it seems that training and R&D reinforce each other in the Indian firm-level innovation process: doing R&D incites firms to train their workforce, and training stimulates R&D in return. Productivity of the Indian manufacturing firms seems to benefit from that dynamics, as exporting and innovating would improve firm-level TFP. As for the investment climate, our results suggest that the differences in the Indian firm-level environment participate in the firms' performance gaps. These results are all the more important in the context of the Make in India campaign and the business environment deficiencies.
    Keywords: Innovation,Productivity,Exports,Investment climate,Manufacturing,Firm-level data.
    Date: 2019–01–23
  4. By: Lorena M. D’Agostino (Department of Economics and Management. University of Trento); Rosina Moreno (AQR-IREA Research Group.)
    Abstract: Technological innovation is essential to achieve simultaneously economic, environmental and social goals (i.e. the green growth). Indeed, many studies found that environmental innovation spurs overall innovation. However, this topic has not been investigated by taking into account the geographical context. Therefore, our paper seeks to investigate whether ‘green regions’, with an increased public and private commitment in environmental issues, are related to innovation of local firms. Using data on Spanish manufacturing firms and regions, we find that environmental technologies (especially in green energy), environmental investments, and environmental management at the level of regions are positively associated to local firms’ innovation.
    Keywords: innovation; region; firm; green patents; environment JEL classification: R11; O31; O44
    Date: 2019–01
  5. By: Christian Hundt; Linus Holtermann; Jonas Steeger; Johannes Bersch
    Abstract: In this paper, we examine the macro-to-micro-transition of cluster externalities to firms and how it is affected by the macroeconomic instability caused by the recessionary shock of 2008/2009. Using data from 16,166 manufacturing and business services firms nested in 390 German regions, we employ within-firm regression techniques to estimate the impact of cross-level interactions between firm- and cluster-level determinants on phase-related differences in firm performance between a pre-crisis (2004-2007) and a crisis period (2009-2011). The empirical results validate the existence of a macro-to-micro-transition that evolves best in the case of broad firm-level capabilities and variety-driven externalities. Furthermore, the results indicate that the transition strongly depends on the macroeconomic cycle. While the transition particularly benefits from a stable macroeconomic environment (2004-2007), its mechanisms are interrupted when being exposed to economic turmoil (2009-2011). Yet, the crisis-induced interruption of the transition is mainly restricted to the national recession in 2009. As soon as the macroeconomic pressure diminishes (2010-2011), we observe a reversion of the transmission mechanisms to the pre-crisis level. Our study contributes to the existing literature by corroborating previous findings that the economic performance of firms depends on a working macro-to-micro transition of external re-sources, which presupposes sufficient cluster externalities and adequate firm-level combinative capabilities. In contrast to previous studies on this topic, the transition mechanism is not modeled as time-invariant. Instead, it is coupled to the prevailing macroeconomic regime.
    Keywords: Macro-to-micro-transition, combinative capabilities, agglomeration economies, cluster-level externalities, unrelated variety, related variety, macroeconomic regimes, Great Recession, economic resilience
    JEL: C33 R11 R58
    Date: 2019–02
  6. By: Schubert, Torben (CIRCLE, Lund University); Tavassoli, Sam (RMIT University)
    Abstract: The effects of diversity in management teams on firm innovation have become an important topic in strategic management. With a few exceptions, however, the literature has focused on diversity in Top Management Teams (TMTs), while the role of lower management levels, particularly in Middle Management Teams (MMTs), has usually been neglected. In this paper, we intend to fill this gap by explicitly differentiating between the effects of diversity in TMTs and MMTs. By matching various firm-level and individual-level datasets, we compiled a linked employer-employee panel dataset for Sweden for the period 2004–2012. Focusing on measures of educational diversity, we find that the effects differ considerably between MMTs and TMTs. TMTs diversity determines whether firms engage in innovation activities at all (strategic decision), while MMTs diversity affects the actual outcome of innovation processes (successful product innovations and their degree of market novelty).
    Keywords: Product innovation; diversity; middle management; top management; firm performance
    JEL: M12 M14 O30
    Date: 2019–02–12
  7. By: Ch. BELLÉGO (Insee, Crest); V. DORTET-BERNADET (Insee); M. TÉPAUT (Direction générale des entreprises)
    Abstract: In 2005, two mechanisms were set up to support collaborative research and development (R & D) between companies and research organizations. One carried by the National Research Agency (ANR) subsidizes projects that are more oriented towards basic research. The other supported by the Interministerial Fund (FUI) supports R & D activities that are more applied. This study presents a first exploitation of a database concerning these two schemes over the 2007-2014 period. This analysis allows to describe the selected projects, to examine the determinant of the participation of companies, and to investigate the decision of the two organizations to finance or not a project. This work confirms that the ANR and FUI mechanisms pursued different objectives: on average, the projects supported by the ANR are smaller than those supported by the FUI, they involve relatively more public research organizations, and R & D spending per partner is almost three times lower. In addition, in line with the policy of the competitiveness clusters (‘‘Pôles de Compétitivité’’), the FUI program seems to have favored more projects involving partners of the same territory whereas the ANR has more financed distant collaborations and projects with partners located in Ile-de-France. However, the selection process decreases the difference between the two devices: the ANR selects rather large projects, while the FUI rather retains those granting more to research organizations. In addition, the two schemes are aimed at the same very specific population of companies: companies that are already innovative, that carry out more R & D than others, that are more frequently members of a competitiveness cluster, and that have a better knowledge of the public support system for innovation. This last point raises the question of the redundancy of the other devices supporting collaborative R & D created in 2010, which are addressed in principle to the same population of companies.
    Keywords: R&D, Innovation, Collaborative R&D, public subsidizes
    JEL: D31 L38 O31 O38
    Date: 2018
  8. By: A. Arrighetti; F. Landini
    Abstract: Recent works in the socio-economic and comparative political economy literature suggest the emergence of a predominant neoliberal model of capitalism, which is gradually being adopted by most advanced countries. A similar trend is present in the management literature where competitive advantages are increasingly being associated with a predominant strategic paradigm (integrated global engagement) leaning on the complementarities among R&D, human capital and entry into foreign markets, regardless of the country and industry a firm belongs to. While both views imply a growing tendency towards institutional and strategic homologation, other studies show only a partial convergence in institutional settings and highlight the presence of considerable heterogeneity in managerial conducts. In this paper we explore these contrasting interpretations by comparing the characteristics of manufacturing firms in Italy and Germany. The analysis suggests that (a) independently of the country of origin, globally engaged firms are relatively similar in characteristics that are usually positively correlated with economic performance such as size, age and innovation, but remain highly differentiated in terms of institutions-related variables; b) firms that have not adopted a strategy of global engagement are markedly heterogeneous in terms of both structural characteristics and institutions-related variables. In other words, global engagement is associated with a lower degree of the differentiation between Italian and German firms, but the variety of institutional settings continues to affect the evolution of businesses. Policy implications are discussed.
    Keywords: varieties of capitalism; business strategy; global engagement, firm heterogeneity; Italy; Germany
    JEL: P51 B52 L25 D22 F23
    Date: 2018
  9. By: Mette Asmild (Department of Food and Resource Economics, University of Copenhagen); Tomas Baležentis (Lithuanian Institute of Agrarian Economics); Jens Leth Hougaard (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: It can be argued that the competitiveness of an industry consists of two main parts: The production conditions and the utilization of these. The production conditions are largely determined by factors exogenous to the firms comprising the industry, including the economic environment, regulatory framework, etc. The utilization of the production conditions corresponds to the classic economic notion of structural efficiency. We here argue that it is crucial for policy analysis to be able to quantify each of these two aspects separately, since the production conditions are partly in the hands of the policy makers, whereas the utilization is mainly the responsibility of firm management. In this paper we define two new bilateral indicators; the Bilateral Industry Utilization (BIU) indicator, and the Bilateral Production Conditions (BPC) indicator. These are applied to a large data set of dairy farms across 19 European countries provided by the Farm Accountancy Data Network (FADN). With focus on the competitiveness of Danish dairy farms we show that dairy farms in most other countries have significantly better production conditions than those in Denmark while Sweden is the only country with significantly better utilization. Finally, we asses potential causes behind the differences and discuss possible remedies.
    Keywords: Competitiveness indicators; Production conditions; Structural efficiency; Bilateral indicators; Dairy farms; Efficiency; Frontier analysis; Jackknifing.
    JEL: C61 D04 E23 O47 Q12
    Date: 2019–02
  10. By: Ngepah, Nicholas; Espoir, Delphin Kamanda
    Abstract: This study assesses the role of initial poverty and inequality in predicting the speed at which poverty responds to changes in mean income. The study sought to answer whether the initial levels of poverty and inequality muffle the speed at which growth is effective in reducing poverty and whether the initial levels of poverty are more of a binding constraints to the effects of economic growth on poverty reduction than initial levels of inequality. We used an annualised panel data (at USD1.9/day) of 112 developing countries segregated into six world regions, for the period 1981-2013. An autoregressive growth-poverty model is developed and system GMM techniques are employed. Over and above the specifications of the well-known growth-poverty identity model, the autoregressive model subjects the change in poverty to its earlier shocks. We first replicated the estimates within the growth-poverty identity model and the results support the previous findings on the negative effect of high initial inequality and high ratio poverty line over mean income on the poverty effects of growth in mean income. However, when changes in poverty were subjected to earlier shocks within the autoregressive framework, the initial poverty is found to be the most binding constraint of the poverty reduction effects of growth. As such, the results support the dominant role of high initial poverty over high initial inequality in predicting the speed at which poverty responds to changes in mean income. The autoregressive framework suggests that poverty reduction policies should be differentiated according to regional specifics. Growth versus inequality policies as measures of improving poverty reduction efforts cannot be used as a “one-size-fits-all” approach. The cross-regional variations in income and inequality elasticities suggests that redistribution policies could be more fruitful in achieving poverty reduction in Eastern Europe and Central Asia, the Middle East and North Africa, and in East Asia and Pacific. However, for regions such as Sub-Saharan Africa and South Asia, growth-boosting measures must triumph over redistribution for sustainable poverty reduction
    Keywords: : income elasticity, inequality elasticity, initial poverty, initial inequality, poverty headcount, poverty elasticity, dynamic panel data
    JEL: I32 O1
    Date: 2018–07–10
  11. By: Federico Caviggioli (Politecnico di Torino – Department of Management and Production Engineering); Antonio De Marco (Politecnico di Torino – Department of Management and Production Engineering); Giuseppe Scellato (Politecnico di Torino – Department of Management and Production Engineering)
    Abstract: This study proposes a framework to identify and analyse the European defence innovation ecosystem and to investigate the relevance of dual use inventions, extending previous empirical approaches. 63,714 defence inventions in the decade 2002-2012 were analysed by taking several dimensions into consideration: time, geography, technology, type of innovator. The main findings indicate an increasing trend of patented inventions covering a wide range of technological fields not only in the traditional defence areas, but also in Information and Communication Technology (ICT) and in instruments for measurement and control. The innovations seem to be quite concentrated: the twenty largest patent holders (firms and government agencies) account for 40% of total defence inventions. The largest geographical source of innovations is the USA, but South Korea has increased significantly in recent years. Dual use innovations, i.e. military patents subsequently cited by a civilian invention, are identified using a novel method employing patent citations. The proportion of dual use inventions in the whole dataset is 41%, but the value has been decreasing in recent years and shows heterogeneity across technological sectors and geographical areas (the USA reports the highest share, 63.9%). Analysis of knowledge flows suggests significant heterogeneity in the share of intra-border innovations: the European defence innovations are largely cited by US inventions, especially when considering dual use cases.
    Keywords: Dual use, innovation, patents, defence, technology
    Date: 2018–12

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