nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒04‒01
thirteen papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Do companies benefit from public research organizations? The impact of the Fraunhofer Society in Germany By Comin, Diego; Licht, Georg; Pellens, Maikel; Schubert, Torben
  2. Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs By Okamuro, Hiroyuki; Nishimura, Junichi
  3. The relationship of policy induced R&D networks and inter-regional knowledge diffusion By Marcel Bednarz; Tom Broekel
  4. Use and sharing of big data, firm networks and their performance By KIM YoungGak; MOTOHASHI Kazuyuki
  5. SMEs: Key drivers of green and inclusive growth By Shashwat Koirala
  6. Innovative Events By Max Nathan; Anna Rosso
  7. Knowledge Sharing among Employees in Organizations By Mohajan, Haradhan
  8. Business Strategy as a Mediation of Management Capabilities and Entrepreneurial Orientation in Business Performance By Giriati
  9. Market Power and Innovation in the Intangible Economy By De Ridder, M.
  10. Public research and innovative entrepreneurship: Preliminary cross-country evidence from micro data By Stefano Breschi; Julie Lassébie; Alexander Lembcke; Carlo Menon; Caroline Paunov
  11. Digitalization of manufacturing process and open innovation: Survey results of small and medium sized firms in Japan By MOTOHASHI Kazuyuki
  12. The Effect of Productivity and Innovation on the Competitiveness of Batik SMEs in West Java Indonesia By Yana Hendayana
  13. Configuration of Organizational Capability to Enhancing Service Performance and Impact on Sustainable Local Enterprise Water Services By Nur Afifah

  1. By: Comin, Diego; Licht, Georg; Pellens, Maikel; Schubert, Torben
    Abstract: Among available policy levers to boost innovation, investment in applied research organisations has received little empirical attention. In this paper, we analyse the case of the Fraunhofer Society, the largest public applied research organization in Germany. We analyse whether project interaction with Fraunhofer affects the performance and strategic orientation of firms. To that end, we assemble a unique dataset based on the confidential Fraunhofer-internal project management system and merge it with the German contribution to the Community Innovation Survey (CIS), which contains panel information on firm performance. Using instrumental variables that exploit the scale heteroscedasticity of the independent variable (Lewbel, 2012), we identify the causal effects of Fraunhofer interactions on firm performance and strategies. We find a strong, positive effect of project interaction on growth in turnover and productivity. In particular, we find that a one percent increase in the size of the contracts with FhG leads to an increase in growth rate of sales by 1.3 percentage points, and to an increase in the growth rate of productivity by 0.8 percentage points in the short-run. We also provide evidence of considerable long-run effects accumulating to 18% growth in sales and 12% growth in productivity over the course of 15 years. More detailed analyses reveal, amongst others, that the performance effects become stronger the more often firms interact with Fraunhofer and that interactions aiming at generation of technology have a stronger effect than interactions aiming merely at the implementation of existing technologies. Finally, we provide evidence on the macroeconomic productivity effects of Fraunhofer interactions on the German economy. Our results indicate that doubling Fraunhofer revenues from industry (+€ 0.68 bn.) would increase overall productivity in the German economy by 0.55%.
    Keywords: innovation,R&D,diffusion,applied research,Fraunhofer
    JEL: O33 O38
    Date: 2019
  2. By: Okamuro, Hiroyuki; Nishimura, Junichi
    Abstract: Regional innovation policies have been implemented in several countries. In Japan, controlled decentralization of traditionally centralized innovation policy is ongoing, so that we can observe multilevel policy mix of public R&D subsidies by national, prefecture and city governments. Based on original survey data and financial data of manufacturing SMEs, we empirically estimate their TFP (Total Factor Productivity) and investigate the effects of public R&D subsidies by national, prefecture and city governments. We employ firm-level fixed effect panel estimation in order to control for the effects of any time-invariant factors. We find that only the prefecture subsidy has a positive and significant impact on the TFP of recipient firms, while interactive effect with city subsidy is also positive and significant, if we consider remaining effects after subsidy period. These results suggest that multilevel policy mix of R&D subsidies significantly increase recipients' productivity and that this effect if durable.
    Keywords: R&D subsidy, local authority, multilevel policy mix, SMEs, policy evaluation
    JEL: H71 O38 R58
    Date: 2019–03
  3. By: Marcel Bednarz; Tom Broekel
    Abstract: Knowledge diffusion is argued to be strongly influenced by knowledge networks and spatial structures. However, empirical studies primarily apply an indirect approach of measuring their impact. Moreover, little is known about how policy can influence the spatial diffusion of knowledge. This paper seeks to fill this gap by empirically testing the effects of policy induced knowledge networks on the propensity of inter-regional patent citations. We use patent citation data for 141 labor market regions in Germany between 2000 to 2009, which is merged with information on subsidized joint R&D projects. Based on the latter, we construct a network of subsidized R&D collaboration. Its impact on inter-regional patent citations is evaluated with binomial and negative binomial regression models. Our findings do not indicate that inter- regional network links created by public R&D subsidies facilitate patent citations and hence, inter-regional knowledge diffusion.
    Keywords: knowledge diffusion, subsidized R&D-networks, gravity model, negative binomial regression, proximity, spillover
    JEL: L14 O18 O33 O38 C31 D83 O18
    Date: 2019–03
  4. By: KIM YoungGak; MOTOHASHI Kazuyuki
    Abstract: RIETI conducted the Survey of Big Data Use and Innovation in Japanese Manufacturing Firms in 2015. This paper uses this survey data, linked with TSR data of inter-firm transactions, to examine the relationship between supplier and customer (business partner) network structures and the data sharing with these business partners. It is found that, in general, the number of suppliers is positively correlated with the likelihood of internal use of data and data sharing with suppliers, customers, and other third-party firms. On the contrary, the number of customers is negatively correlated with data use and sharing, especially with customers. The analysis results also show that long-term relationships with suppliers contribute negatively to data sharing, but contribute positively to data sharing with customers. Interestingly, the more customers a firm's suppliers have, or the more suppliers a firm's customers have in their transaction networks, the less likely it is that the firm shares big data with other third-party firms. We find that data sharing has a positive and significant impact on firm productivity. However, we find no positive contribution of data sharing to attracting new customers or suppliers. We do not find any significant effect of data sharing on the extensive margin of transactions.
    Date: 2019–03
  5. By: Shashwat Koirala
    Abstract: Small and medium-sized enterprises (“SMEs”) are important stakeholders for both environmental and economic policymaking. Among OECD countries, they represent roughly 99.7% of all enterprises and 60% of total employment. Simultaneously, while their individual environmental footprint is small, on aggregate, SMEs contribute up to 70% of industrial pollution in Europe. Thus, they have tremendous potential as drivers of green and inclusive growth. Through a comprehensive literature review, this issue paper assesses the trade-offs and synergies between SMEs’ ability to deliver green growth – through greening processes like eco-innovation and adoption of green measures - and their ability to contribute to inclusive growth – through job creation and inclusive business models. This issue paper also reviews relevant policy measures that can help SMEs navigate the opportunities and challenges in delivering green and inclusive growth.
    Date: 2019–03–29
  6. By: Max Nathan; Anna Rosso
    Abstract: We take a fresh look at firms' innovation-productivity linkages, using novel data capturing new aspects of innovative activity. We combine UK administrative microdata, media and website content to develop experimental metrics - new product/service launches - for a large panel of SMEs. Extensive validation and descriptive exercises show that launches complement patents, trademarks and innovation surveys. We also establish connections between launches and previous innovative activity. We then link IP, launches and productivity, controlling for media exposure and firm heterogeneity. Launch activity is associated with higher SME productivity, especially in the service sector. High-quality launches and medium-size firms help drive this result.
    Keywords: innovation, productivity, ICT, data science
    JEL: L86
    Date: 2019–03
  7. By: Mohajan, Haradhan
    Abstract: Knowledge is considered as the basis for developing sustained long-term competitive advantage for every organization. In the 21st century every organization becomes knowledge based for the sustainable development. Knowledge sharing is an important instrument that turns individual knowledge into group organizational knowledge. It is one of the main knowledge processes in a present dynamic and competitive era for the development of organizations. The knowledge sharing practice plays a remarkable role in the development and innovation in many areas of organizations. In this paper an attempt has been taken to discuss techniques, barriers and benefits of knowledge sharing in organizations.
    Keywords: Knowledge sharing, organization, globalization
    JEL: A2 L3
    Date: 2019–01–10
  8. By: Giriati (Faculty of Economics and Business, University of Tanjungpura, Pontianak, Indonesia. 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 article aims to analyze the influence of mediating Business Strategy variables on Management Capabilities (MC) and Entrepreneurial Orientation (EO) toward Business Performance. Methodology/Technique – This study was conducted on group of students of Economics and Business Department who practiced as entrepreneurs, using Path Analysis (Amos,18.0). Findings – The results of the analysis show that the management capabilities do not support the indirect influence of business strategies on business performance. However, entrepreneurial orientation supports the indirect influence of business strategies on business performance. Meanwhile, management capabilities have a significant direct effect on business performance. Novelty – Without going through a business strategy, entrepreneurial orientation does not have a significant direct effect on business performance, because business strategy supports business performance or direct influence. Type of Paper: Empirical
    Keywords: Business Strategy; Management Capabilities; Entrepreneurial Orientation; Business Performance.
    JEL: M16 M21 M29
    Date: 2019–03–18
  9. By: De Ridder, M.
    Abstract: Productivity growth has stagnated over the past decade. This paper argues that the rise of intangible inputs (such as information technology) can cause a slowdown of growth through the effect it has on production and competition. I hypothesize that intangibles create a shift from variable costs to endogenous fixed costs, and use a new measure to show that the share of fixed costs in total costs rises when firms increase ICT and software investments. I then develop a quantitative framework in which intangibles reduce marginal costs and endogenously raise fixed costs, which gives firms with low adoption costs a competitive advantage. This advantage can be used to deter other firms from entering new markets and from developing higher quality products. Paradoxically, the presence of firms with high levels of intangibles can therefore reduce the rate of creative destruction and innovation. I calibrate the model using administrative data on the universe of French firms and find that, after initially boosting productivity, the rise of intangibles causes a 0.6 percentage point decline in long-term productivity growth. The model further predicts a decline in business dynamism, a fall in the labor share and an increase in markups, though markups overstate the increase in firm profits.
    Keywords: Business Dynamism, Growth, Intangibles, Productivity, Market Power
    Date: 2019–03–25
  10. By: Stefano Breschi (Bocconi University); Julie Lassébie (OECD); Alexander Lembcke (OECD); Carlo Menon (Laterite); Caroline Paunov (Laterite)
    Abstract: This paper provides a first assessment of the degree to which public research contributes to innovative entrepreneurship, using data on start-ups and venture capital (VC). It looks at academic start-ups founded by recent undergraduates and doctorate students or researchers. It shows that academic start-ups represent 15% of all start-ups in the specific sample under scrutiny. Their share is higher in science-based technological fields such as biotechnology (23%). Across the majority of countries and technology fields, start-ups created by undergraduate students represent the highest share of all academic start-ups. As to their performance, start-ups founded by researchers are more likely to patent and those founded by students introduce innovations that are more radical compared to other start-ups. While start-ups founded by undergraduate students receive less VC funding and are less likely to exit via IPO or acquisition, those created by researchers are as successful as their non-academic counterparts.
    Keywords: academic entrepreneurship, innovative entrepreneurship, knowledge transfer, public research, student entrepreneurship
    JEL: L26 O30
    Date: 2019–03–28
  11. By: MOTOHASHI Kazuyuki
    Abstract: Digitalization has a transformative impact on innovation in firms and industry. In this paper, the results of the Survey on the Changing Nature of Manufacturing Processes and New Product Development are presented to show how the nature of Japanese SMEs in manufacturing industry is changing in the new IT era (AI, big data and IoT). It is found that a firm applying new IT, such as data analytics by machine learning, is likely to be involved in delivering digital services as well as new products (servitalization) and innovation ecosystem, interacting with multiple firms. Such firms address wider customer needs, instead of just meeting existing customer requirements, meaning that its product innovation is likely to happen in new business fields. In addition, a firm which extensively uses its customer data gains more sales and profit contributions from its new product.
    Date: 2019–03
  12. By: Yana Hendayana (Universitas Pendidikan Indonesia, Universitas Widyatama, Bandung, Indonesia Author-2-Name: Suryana Author-2-Workplace-Name: Universitas Pendidikan Indonesia, Bandung, 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 research aims to test the effect of productivity and innovation toward competitiveness of batik SMEs in West Java. Methodology/Technique – The study uses Partial Least Square (PLS) for data analysis, as well as an explanatory method and simple random sampling. Findings – The results of the data testing show that competitiveness is effected by productivity and innovation by 71.7%. Novelty – The objective of this study is to analyse the gap in productivity and innovation and its effect on the competitiveness of batik SMEs in West Java Indonesia. Batik centre in West Java was developed by the government in collaboration with the private sector to increase the level of production of batik SMEs. In reality, there is a gap in productivity between written batik and stamped batik. Written batik design innovations and production methods need to be improved to compete and survive in the batik industry. Porter (1995:5) describes competition as the core of the success or failure of firms. Productivity of written batik has declined in the past 5 years. From recent BPS data, processed by the Pusdatin Ministry of Industry 2017, the industry has declined by around 10% per year between 2012 and 2017. Type of Paper: Empirical
    Keywords: Productivity; Innovation; Competitiveness; Batik; Small and Medium Enterprises.
    JEL: M10 M11 M19
    Date: 2019–03–04
  13. By: Nur Afifah (Faculty of Economic and Business, Universitas Tanjungpura, Indonesia Author-2-Name: Ilzar Daud Author-2-Workplace-Name: Management Study Program, Faculty of Economics and Business, 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 – Configuration of organizational capability plays a very important role in creating service performance, and superior and sustainable company performance. The purpose of this study is to propose a conceptual to explain the role between configuration of organizational capability to service performance and its impact on sustainable local enterprise water services in West Kalimantan, Indonesia. Methodology/Technique – The data was collected from 100 managers at the local enterprise water service in West Kalimantan Indonesia using a purposive sampling method. The analysis tool used was structural equation modeling partial least square (SEMPLS). Findings – The model in this study was confirmed by the data collected which shows the importance of configuring organizational capability to improve both service performance and sustainability of the local enterprise water services in West Kalimantan. The classification of configuration organizational capability in local enterprise water services includes human capability, information technology capability, system capability, and dynamic capability. Novelty – Most of the previous research focus on western countries. Therefore, this research is novel as it is carried out in the context of developing countries, particularly in local enterprise water services in West Kalimantan, Indonesia. Type of Paper: Empirical.
    JEL: M20 M29
    Date: 2019–03–16

This nep-cse issue is ©2019 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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