nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒08‒19
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Analysis of the competitive dimensions of medium-sized companies in the Bucaramanga Metropolitan Area By Marelvy Cristina Contreras Pacheco; Karen Dayanna Carrillo Rey; Indira María Cumaco Duran; Kelly Johanna Villamizar Blanco
  2. Does Import Competition Reduce Domestic Innovation? Evidence from the 'China Stock' and Firm-Level Data on Canadian Manufacturing By Myeongwan Kim
  3. Corporate Governance and Efficiency of Rural and Community Banks (RCBs) in Ghana By OTENG-ABAYIE, ERIC Fosu; Affram, Anthony; Mensah, Henry Kofi
  4. Danger To The Old Lady Of Threadneedle Street? The Bank Restriction Act And The Regime Shift To Paper Money, 1797-18211 By Patrick K. O’Brien; Nuno Palma
  5. Modelling the Green Knowledge Production Function with Latent Group Structures for OECD countries By Saptorshee Kanto Chakraborty; Massimiliano Mazzanti
  6. Cooperation with a multiproduct corporation in a strategic managerial delegation By Garcia, Arturo; Leal, Mariel; Lee, Sang-Ho
  7. Learning from Siblings within Multinational Firms By CHEN Cheng; SUN Chang; ZHANG Hongyong

  1. By: Marelvy Cristina Contreras Pacheco (UDI - Universidad de Investigación y Desarrollo); Karen Dayanna Carrillo Rey (UDI - Universidad de Investigación y Desarrollo); Indira María Cumaco Duran (UDI - Universidad de Investigación y Desarrollo); Kelly Johanna Villamizar Blanco (UDI - Universidad de Investigación y Desarrollo)
    Abstract: Based on the behavior of medium-sized companies in the Bucaramanga Metropolitan Area, it is necessary to carry out research and data collection processes that allow for an analysis of competitiveness that influences the growth of these companies and which factors influence the closure of the same. In the metropolitan area of Bucaramanga, there are 76.3% of the companies incorporated in Santander, of which 0.01% are medium-sized companies which generate a positive impact, contributing to the creation of new jobs, contributing to the growth and economic development of the region [1]. That is why an investigation is carried out in three medium-sized companies in Bucaramanga: Ans communications, Educational Solutions and Estupiñan Furniture, in order to identify weaknesses and strengths through the analysis of 8 competitive dimensions such as: Quality, Innovation, Human Talent, Customer Service, Strategic Planning, Organizational Culture, Family Business, and Financial Accounting; in such a way that internal situations are reinforced within medium-sized companies. Finally, an instrument is used that consists of 8 dimensions with 8 questions each, designed to be solved only by the company manager, showing the level of competitiveness in which each of the companies under study is located of the project to suggest strategies for continuous improvement in the weaknesses identified.
    Abstract: A partir del comportamiento de las medianas empresas en el Área Metropolitana de Bucaramanga, es necesario realizar procesos de investigación y recopilación de datos el cual permita hacer un análisis de competitividad que influyan en el crecimiento de dichas empresas y que factores inciden en el cierre de las mismas. En el área metropolitana de Bucaramanga se encuentran el 76.3% de las empresas constituidas en Santander, de ellas el 0.01% son medianas empresas las cuales generan un impacto positivo, contribuyendo a la creación de nuevos empleos, aportando al crecimiento y desarrollo económico de la región, así como fortaleciendo su competitividad [1]. Es por ello que se realiza una investigación a tres medianas empresas de Bucaramanga: Ans comunicaciones, Soluciones educativas y Muebles Estupiñan, con el fin de identificar las debilidades y fortalezas mediante el análisis de 8 dimensiones competitivas como son: Calidad, Innovación, Talento Humano, Servicio Al Cliente, Planeación Estratégica, Cultura Organizacional, Empresa Familiar, y Contabilidad Financiera; de tal modo que se refuercen situaciones internas dentro de las medianas empresas. Para finalizar se hace uso de un instrumento que consta de 8 dimensiones con 8 preguntas cada una, diseñada para que solo sea resuelta por el gerente de la empresa, arrojando el nivel de competitividad en el que se encuentra cada una de las empresas objeto de estudio del proyecto para con ello sugerir estrategias de mejora continua en las debilidades identificadas.
    Keywords: family business and financial accounting.,organizational culture,strategic planning,customer service,human talent,innovation,quality,medium-sized business,competitiveness,Dimensions,talento humano,servicio al cliente,planeación estratégica,cultura organizacional,innovación,calidad,mediana empresa,competitividad,Dimensiones,empresa familiar y contabilidad financiera.
    Date: 2019–08–07
  2. By: Myeongwan Kim
    Abstract: A key economic issue in Canada is the declining Business Enterprise Research and Development in manufacturing since the early 2000s. Accompanying this, the total factor productivity (TFP) growth in manufacturing slowed after 2000. However, there has not been a definitive explanation for these trends. To deepen our understanding of this phenomenon, we focus on the increasing Chinese import share in the total domestic absorption in Canadian manufacturing since the early 2000s, which appears to be driven by positive supply shocks within Chinese manufacturing. Based on a firm-level database covering all incorporated firms in Canadian manufacturing, we find that rising Chinese import competition led to declines in R&D expenditure and TFP growth within firms but reallocated employment towards more productive firms and induced less productive firms to exit. The negative within-effects were pronounced for firms that were initially smaller, less profitable, and less productive. These firms also experienced declines in their profit margins due to rising Chinese import competition while larger and better-performing firms did not. Our estimates imply that rising Chinese import competition can explain about 7 per cent of the total decline of $1.36 billion (2007 CAD) in R&D expenditure in Canadian manufacturing between 2005 and 2010. Although it led to declines in TFP within firms, the positive reallocation effects more than offset the negative within-effect. Had there been no increase in Chinese import competition between 2005 and 2010, TFP in Canadian manufacturing would have declined by 1.26 per cent per year instead of the actual 1.09 per cent per year over this period.
    Keywords: China Shock, Canada, Imports, Productivity, Innovation
    JEL: O32 O51 O53 L60
    Date: 2019–08
  3. By: OTENG-ABAYIE, ERIC Fosu; Affram, Anthony; Mensah, Henry Kofi
    Abstract: Corporate governance crises that occur in the banking sector normally cripple economies and bring many hardships to individuals, corporate entities, communities, and the nation at large. In this study, we sought to examine the level of technical efficiency and productivity growth of rural and community banks (RCBs) and the impact of corporate governance indicators on the RCBs' efficiency performance in Ghana. A sample of 70 out of 140 RCBs was selected based on the ARB Apex Bank's performance ratings and data availability. Data envelopment analysis (DEA) was used to determine the technical efficiency scores of the selected RCBs. In the second stage of the analysis, these computed efficiency scores were regressed on the corporate governance variables to assess the effects of the latter. The findings from the DEA approach show that 11% to 20% of the sampled RCBs in Ghana operate close to the efficiency frontier, whereas the majority - about 65% to 81% - underperformed within the study period of 2007 to 2013. The study further established that the number of board members, frequency of board meetings, and corporate social responsibility have significant influence on RCB efficiency.
    Keywords: Corporate governance, efficiency, Rural banks, Ghana, DEA
    JEL: G2 G21
    Date: 2018–12
  4. By: Patrick K. O’Brien; Nuno Palma
    Abstract: The Bank Restriction Act of 1797 was the unconventional monetary policy of its time. It suspended the convertibility of the Bank of England's notes into gold, a policy which lasted until 1821. The current historical consensus is that it was a result of the state's need to finance the war, France’s remonetization, a loss of confidence in the English country banks, and a run on the Bank of England’s reserves following a landing of French troops in Wales. We argue that while these factors help us understand the timing of the suspension, they cannot explain its success. We deploy new long-term data which leads us to a complementary explanation: the policy succeeded thanks to the reputation of the Bank of England, achieved through a century of prudential collaboration between the Bank and the Treasury.
    Keywords: Bank of England, financial revolution, fiat money, money supply, monetary policy commitment, reputation, time-consistency, regime shift
    Date: 2019–08
  5. By: Saptorshee Kanto Chakraborty (University of Ferrara, Italy); Massimiliano Mazzanti (University of Ferrara; SEEDS, Italy)
    Abstract: We explore the green knowledge production function and human capital spillovers in the OECD region using a latent group structure. The number of groups and the group membership are both unknown, we determine these unknowns using a penalized regression technique in the presence of cross-sectional dependence in error terms and nonstationarity. We find substantial heterogenous groups classified under three distinctive groups and their efficient estimates. We try to model the green knowledge production function with Latent-Group Structures using PPC- base method with one unobserved global non-stationary factor, we find heterogeneous behaviour in green technologies using a Cup-Lasso estimate. Human capital and expenditure in Research and Development plays an important part in our findings
    Keywords: Green Innovation, Human Capital Spillover, Gross Research and Development, OECD, C-Lasso
    Date: 2019–08
  6. By: Garcia, Arturo; Leal, Mariel; Lee, Sang-Ho
    Abstract: We consider an industry comprised of a multiproduct corporation that adopts CSR as a strategic managerial del egation and examine the profit-incentive to form a cooperative group. We find that competition is an equilibrium for any degree of substitutability and yields the highest CSR, which is increasing in the degree of substitutability. We also show that full cooperation is an equilibrium for lower substitutability but induces no CSR while partial cooperation with one uniplant firm is an equilibrium for higher substitutability but yields lower CSR than that under competition. Therefore, cooperation might reduce strategic CSR activities while competition will encourage higher CSR but yield lower industry profits.
    Keywords: corporate social responsibility (CSR); consumer-friendly activities; full cooperation; partial cooperation; multiproduct corporation;
    JEL: L3 L44
    Date: 2019–07–29
  7. By: CHEN Cheng; SUN Chang; ZHANG Hongyong
    Abstract: Using a unique dataset of Japanese multinational corporations (MNCs), we provide evidence that MNCs learn about potential profitability in the destination market by observing the performance of their affiliates (henceforth "siblings") in other nearby markets. Specifically, good historical performance of siblings in nearby markets raises the probability of foreign direct investment (FDI) entries into the destination market. For a market where the MNC has established an affiliate, good sales performance of nearby siblings raises the sales expectations of affiliates established in that market. To explain these facts, we provide a simple model of a multinational firm learning about its profitability in multiple markets. The model further predicts that nearby siblings' historical performance has a larger impact on the established affiliate's expectations when the affiliate is less experienced and/or its own signals are noisier. We confirm both predictions in our data.
    Date: 2019–07

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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.