nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒10‒14
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation mechanisms of fintech start-ups: insights from SWIFT Innotribe competition By Gozman, Daniel; Liebenau, Jonathan; Mangan, Jonathan
  2. Effects of R&D subsidies on regional economic dynamics: Evidence from Chinese provinces By Eberle, Jonathan; Böing, Philipp
  3. Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa By Torreggiani Sofia; Andreoni Antonio
  4. International Talent Inflow and R&D Investment: Firm-level Evidence from China By Hao Wei; Ran Yuan; Laixun Zhao
  5. Japanese Knowledge Transfer via Training in Mexico?s Automotive Industry By LEO GUZMAN-ANAYA
  6. Skill Shortages as a Barrier to Women’s Start Ups: A Model with Evidence from Eswatini By Zuzana Brixiová; Thierry Kangoye
  8. Young farmers as innovation enablers in rural areas: the role of the EU’s support in a Portuguese peripheric region, Trás-os-Montes By Ana Isabel Guerra; João Carlos Lopes
  9. International knowledge flows between industry inventors and universities: The role of multinational companies By Fassio, Claudio; Geuna, Aldo; Rossi, Federica
  10. The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of 'Make-To- Order' SMEs By Yosef Budi Susanto

  1. By: Gozman, Daniel; Liebenau, Jonathan; Mangan, Jonathan
    Abstract: The emergence of nascent forms of financial technology around the globe is driven by efforts to de-construct and reimagine business models historically embedded within financial services. Entrepre-neurial endeavors to this end are diverse. Indeed, the propensity towards complexity across the fintech landscape is considerable. Bridging as it does a diverse range of financial services, markets, innova-tions, industry participants, infrastructures and technologies. This study aims to improve the compre-hension of the global fintech landscape. It is based on the analysis of start-ups who participated in SWIFT’s Innotribe competition over a three-year period. We used cluster analysis to group 402 fintech start-up firms, and then selected representative cases to create a foundational understanding of the structure of the fintech landscape. We found that six clusters capture the variety of firms and their activities. The main findings of this work are: (1) the development of fintech clusters to classify core services, business infrastructures and underlying component technologies, which characterize the fintech landscape; (2) an analysis of how fintechs synthesize different technologies to restructure and coordinate flows of financial information through competitive and cooperative mechanisms of disin-termediation, extension of access, financialization, hybridization and personalization; (3) an analysis of related strategies for value creation connected with the competitive and cooperative mechanisms that were identified. Collectively, our results offer new insights into the diversity and range of emer-gent innovations and technologies which are transforming the financial services industry worldwide.
    Keywords: business models; cluster analysis; data analytics; financialization; fintech start-ups; SWIFT Innotribe; technology ecosystems; technological innovation; value proposition
    JEL: J50 F3 G3
    Date: 2018–03–30
  2. By: Eberle, Jonathan; Böing, Philipp
    Abstract: We investigate the impact of research and development (R&D) subsidies on R&D inputs of large- and medium-sized firms and on additional innovation and economic activities in Chinese provinces. A panel vector autoregressive (VAR) model and corresponding impulse response function (IRF) analysis allow us to differentiate between direct and indirect effects, which add up to total effects. We find that an increase of R&D subsidies significantly decreases private R&D investments, although there is a significant positive effect on the R&D personnel employed in firms. We interpret these findings as a partial crowding-out effect because public funds substitute some private funds while total R&D inputs still increase. Complementarily, we find a positive secondary effect on the provincial patent activity, our measure of technological progress. Interestingly, we also find potentially unintended effects of R&D subsidies on increases in the investment rate in physical capital and residential buildings. Although R&D subsidies fail to incentivise private R&D expenditures, firms increase total R&D inputs, and provincial economies benefit from secondary effects on technological progress and capital deepening.
    Keywords: China,R&D subsidies,regional economic development,panel VAR,impulse response function
    JEL: C33 R11 R58 O38 O47
    Date: 2019
  3. By: Torreggiani Sofia; Andreoni Antonio
    Abstract: Using firm-level tax administrative data from 2010 to 2017, we study the impact of Chinese import penetration on the performances of manufacturing firms in South Africa, and whether firms investing in capabilities development are more resilient to such competitive pressure. Specifically, by instrumenting Chinese import penetration with China’s share in other low- and middle-income countries’ imports, we first explore whether Chinese import exposure— both direct (e.g. affecting the sector in which the firm itself operates) and indirect (e.g. through input–output linkages along the domestic value chain)—have been associated with firms downsizing in terms of decreasing employment and sales growth and higher probability of exiting the market. Second, we examine whether firms investing in process and product innovation and skills development perform better in response to import competition. Our results indicate that rising Chinese import exposure—not only direct, but also in downstream segments of the domestic value chain—leads to slower sales and employment growth for the entire sample of surviving firms and to higher probability of shutdown for firms not undertaking any spending in capabilities development. However, we also find that the negative impact of Chinese import penetration is partially mitigated by investments in capital, innovation, and skills development.
    Keywords: Capabilities,Import,Import competition,Manufacturing
    Date: 2019
  4. By: Hao Wei (Department of International Economics, Beijing Normal University); Ran Yuan (Department of International Economics, Beijing Normal University); Laixun Zhao (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)
    Abstract: Using firm-level R&D data with regional international talent data, we find that international talent increases the R&D investment of Chinese manufacturing firms, a result that is further confirmed with patent data and under a number of robustness checks. These findings stem from two mechanisms: international talent boosts human capital accumulation and provides a diversified labor force. Further, the R&D promoting effect is stronger if firms are located in eastern China rather than in other regions, of small and medium-sized rather than large-sized, of domestic ownership rather than foreign ownership. The policy implication is, the introduction of international talent can be a new way to promoting R&D investment, especially for skilled-labor constrained countries.
    Keywords: International talent inflow, Manufacturing firms, R&D, Patent application
    JEL: F16 F22 O32
    Date: 2019–09
  5. By: LEO GUZMAN-ANAYA (University of Guadalajara)
    Abstract: The automotive industry has been considered a source for development because of its impact on employment, knowledge transfer capabilities and backward and forward linkages with other industries. However, only a handful of developing countries have achieved an internationally competitive automotive industry. This might be attributable to the industry requiring not only skilled labor but also a strong supporting industry able to provide from 20,000 to 30,000 parts and components. In an ideal setting, supplier firms and assembly plants work interconnected creating positive externalities to each other, but for developing countries, it has been shown that this is difficult to achieve. The case of Mexico stands out as a country that has successfully attracted major automotive assemblers but has not been able to develop a solid supplier base. Despite the increasing presence of Japanese firms in Mexico, local firms have not been able to enter automotive chains primarily due to the inability to meet technological and quality requirements. This study analyzes specific cases of knowledge transfer to local firms under a training project from the Japan International Cooperation Agency (JICA). The results show improvements in quality and productivity measurements of participating firms. The knowledge acquired through training was internalized and diffused within the firm allowing for industry-specific certifications, market growth, and market diversification.
    Keywords: Knowledge Transfer, Training Programs, Automotive Industry
    JEL: M53 L62 O19
    Date: 2019–10
  6. By: Zuzana Brixiová; Thierry Kangoye
    Abstract: The shortages of entrepreneurial skills, both perceived and actual, have lowered the rate of opportunity-driven women’s entrepreneurship. This paper contributes to the literature on entrepreneurship, gender and development with a theoretical and empirical analysis linking gender differences in entrepreneurial outcomes to skills and business training. The role of skills, including self-confidence, and training for the entrepreneurial performance is tested on a survey of urban entrepreneurs in Swaziland. The results help explain why narrow business training programs for female entrepreneurs have often limited success in improving performance of women-run firms. Training programs for women entrepreneurs encompassing advanced business and technical (e.g. hard) skills as well as networking and confidence building (e.g. soft skills) could be more effective.
    Keywords: women’s entrepreneurship, firm performance, hard and soft skills, model, micro data
    JEL: L53 O12 J4
    Date: 2018–12
  7. By: Murat Sadiku (South East European University); Luljeta Sadiku (International Balkan University); Nasir Selimi (South East European University)
    Abstract: The level of trade openness plays a crucial role on boosting countries? competitiveness, innovation and productivity. Thus, the purpose of this paper is to empirically analyze the linkage of trade openness and competitiveness for Western Balkan countries covering the time period 2005-2017. The research method consists of a panel regression analysis by examining the static models for both fixed and random effects and using the Hausman test for deciding for the most appropriate model for the proposed sample countries. First, the gross competitiveness index is modelled as dependent variable on trade openness and a set of control variables such as: GDP per capita, gross fix capital formation, FDI, inflation and several interaction variables with trade openness. Second, innovation is taken as dependent variable whereas trade openness and the aforementioned indicators as independent variables. The empirical results of the fixed effects model suggest that trade openness positively affect competitiveness, as well as trade openness enhance innovation as in both models the coefficients of trade openness seem to be statistically significant and with positive signs. Regarding interaction variables between trade and FDI as well as trade and gross capital formation, it is confirmed that countries with higher level of FDI and higher physical capital benefit more from international trade, and in turn increase competitiveness. The findings of this research reveal important policy implications for Western Balkan countries, in terms of strengthening the mutual trade cooperation and joining the efforts for increasing even more their participation into the global market. It will imply extension of competitiveness and a range of paybacks, such that job creation, poverty alleviation and better standards of living of their citizens.
    Keywords: Trade openness, competitiveness, innovation, Western Balkan, panel regression analysis
    JEL: F14 O10 O47
    Date: 2019–10
  8. By: Ana Isabel Guerra; João Carlos Lopes
    Abstract: The European Union has suggested several approaches to decrease regional asymmetries and develop rural areas around member states. The main purpose of this paper is to study one of these policies,the Young Farmers Program, in a rural and peripheric region of Portugal, Trás-os-Montes. Since severe depopulation and ageing are some of this region’s biggest threats, initiatives like the Young Farmers Program might represent a gradual reversion of such phenomenon and contribute to the attractiveness of the rural lifestyle tothe younger generations. But do these farmers truly bring innovation and modernization to Trás-os-Montes? Do they have a significant environmental and sustainability awareness? Is the digital usage already a reality? Are the associative leaders encouraging the sustainable development of the region? Is this new generation aware of the meaning and potentialities of the circular economy? Does it intend to adopt its innovative and modern practices? A tentative answer to these questions is searched by means of a detailed survey by questionnaire to a representative sample of young farmers in the region and by directly interviewing their main associative leaders.
    Keywords: Rural development; Agricultural policy; Young farmers; Portugal
    Date: 2019–09
  9. By: Fassio, Claudio (Lund University); Geuna, Aldo (University of Torino); Rossi, Federica (University of London)
    Abstract: We investigate the determinants of industry researchers’ interactions with universities in different localities, distinguishing between local and international universities. We analyze the extent to which local and international interactions are enabled by different types of individual personal networks (education, career based), and by their access to different business networks through their employer companies (local vs. domestic or international multinational company networks). We control for selection bias and numerous other individual and firm-level factors identified in the literature as important determinants of interaction with universities. Our findings suggest that industry researchers’ personal networks play a greater role in promoting interactions with local universities (i.e. in the same region, and other regions in the same country) while researcher employment in a multinational is especially important for establishing interaction with universities abroad.
    Keywords: University-industry interaction; international knowledge flows; MNEs; social network; education network; career network
    JEL: F23 I23 L24 O31
    Date: 2019–10–04
  10. By: Yosef Budi Susanto (Universitas Multimedia Nusantara, Jl. Boulevar Gading Serpong, Tangerang, 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 - Literature suggest that companies should focus their Market Orientation (MO) on good marketing and business performance. However, previous research in this area deals mostly with large companies. The objective of this research is to study the significance of MO for small and medium enterprises (SMEs) with the specific production strategy of Make-To-Order.Methodology/Technique - The sample of this study is 111 Indonesia SMEs. The descriptive research design is supported by exploratory research. The structural model is analysed using the Structural Equation Modelling approach with LISREL 8.8 and SPSS 16.00.Finding - The result shows that MO does not have a significant impact on Marketing Performance. In the context of MTO, SMEs do not need to have a high Market Orientation to have satisfactory performance. It is more important for them to take care of the relationship with their principal companies. Government regulations, such as raw material regulations, also have an impact on SMEs performance. It is recommended that future research explore the types of capabilities of SMEs relating with the era of Industry 4.0. Other strategic orientations, such as production orientation, could be considered as factors in future research. Type of Paper - Empirical.
    Keywords: Strategic Leadership Competence; Entrepreneurial Orientation; Market Orientation; Dynamic Marketing Capability; Business Environment; Marketing Performance; Maklun (MTO Strategy).
    JEL: M3 M30 M31
    Date: 2019–09–20

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