nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2019‒11‒18
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. On the relationship between corporate social responsibility and competitive performance in Brazilian Small and Medium Enterprises - empirical evidence from a stakeholders’ perspective By Back, Paula Regina
  2. Concordance and Complementarity in IP Instruments By Marco Grazzi; Chiara Piccardo; Cecilia Vergari
  3. Emergence of Unorthodox Ownership and Governance Structures in East Asia By Laixiang, Sun
  4. Knowledge Begets Knowledge: Knowledge Spillovers and the Output of Scientific Papers from U.S. Small Business Innovation Research (SBIR) Projects By Audretsch, David; Link, Albert; van Hasselt, Martijn
  5. Heterogeneity of Returns to Business R&D: What Does Make a Difference? By Petr Pleticha
  6. Evidence of innovative assessment: Literature review and case studies By Georgios Kapsalis; Anusca Ferrari; Yves Punie; Johannes Conrads; Antonio Collado; Risto Hotulainen; Irene Rama; Laura Nyman; Sanna Oinas; Paul Ilsley
  7. New Paradigms on Ownership of the Firm A comparative Analysis across Development Stages and Institutional and Technological Contexts By Sun, Laixiang
  8. When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships By Fang, F.
  9. The Speed of Innovation Diffusion in Social Networks By H Peyton Young; Itai Arieli; Yakov Babichenko; Ron Peretz

  1. By: Back, Paula Regina
    Abstract: This paper aims to show that the strategic incorporation of socially responsible actions, in small and medium enterprises contribute to improving the competitiveness of those organizations. The analysis is from a multi-stakeholder perspective. It investigates the link among firms’ relationship with key stakeholders with the objective to find out if there is a competitive advantage in applying Corporate Social Responsibilities practices. Besides the direct influence of Corporate Social Responsibility practices on competitive performance, the mediating connection of relationship improvements has been analyzed. By using their influence, stakeholders hold the key to the environment in which the organization operates and its subsequent financial performance. The empirical analysis was constructed on survey data through structural equation modeling (SEM). To accomplish this assignment data were collected from a sample of Brazilian SMEs. Participants were firms from the Southern region of Brazil mainly from the State of Rio Grande do Sul, Santa Catarina, and Parana. The outcome shows that there is a strong connection between the development of Social Responsibilities practices and relational improvements. In addition, the significant relationship in developing Social Responsibilities Practices positively translates, with a high accuracy outcome into competitive performances.
    Date: 2019–01–14
  2. By: Marco Grazzi; Chiara Piccardo; Cecilia Vergari
    Abstract: This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues, growth and profitability. By resorting to the virtual universe of Italian manufacturing firms this work provides a rather complete picture of the Intellectual Property (IP) strategies pursued by Italian firms, in terms of patents and trademarks, and we study whether the two instruments for protecting IP exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance exert any effect on performance.
    Keywords: Trademarks, Patents, Innovation, Intellectual Property, Complementarity, Concordance, Technological proximity, firm performance, firm growth, firm performance, firm growth
    Date: 2019–11
  3. By: Laixiang, Sun
    Abstract: This paper examines the nature of the unorthodox ownership and governance structures that are emerging among firms and the way these structures are supporting the remarkable economic growth in the transition economies of East Asia, as represented in particular by China and Vietnam. These economies are embarked on a distinctive process of property rights reform that resists widespread privatization in favour of evolutionary transformation. From the perspective that organizational innovation is an adaptive recombination and ownership is a bundle of rights, this paper focuses on an evaluation of the extent and consistency of property rights reform in the state-owned enterprise sector of these economies. It reveals the features of the ownership and governance structures of Chinese township-village-enterprises and their consequences for liability and incentives and justifies the fact that private entrepreneurs are typically willing to include community authority as an ambiguous owner or shelter within the embrace of state-owned enterprises. The paper also explores the conditions which have motivated the reform, the impact of property rights structure and reform on enterprise performance, and the relationship between adaptability and accountability.
    Keywords: International Development
  4. By: Audretsch, David (Indiana University); Link, Albert (University of North Carolina at Greensboro, Department of Economics); van Hasselt, Martijn (University of North Carolina at Greensboro, Department of Economics)
    Abstract: Scientific papers submitted for publication from U.S. Small Business Innovation Research (SBIR)-funded research projects are an innovative output that has yet to be studied systematically. Using a knowledge production framework, we identify empirically covariates with the number of scientific papers resulting from SBIR projects over the period 1992 through 2001. We find empirically that when the firm involves a university in its funded project, more scientific papers result. When the form of university involvement is taken into account, we find the greatest impact on the output of scientific papers comes from the inclusion of an individual from the university who originally developed the technology being pursued by the firm in its SBIR project. In other words, the project-specific technical human capital knowledge from the university that spills over to the firm's projects begets (i.e., brings about) additional knowledge in the form of scientific papers submitted for publication.
    Keywords: innovative; technology; scientific publications; R&D; university knowledge spillovers; Small Business Innovation Research (SBIR) program; patents;
    JEL: J24 O31 O33 O38
    Date: 2019–09–30
  5. By: Petr Pleticha (CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences, Prague, Czechia; Institute of Economic Studies, Faculty of Social Sciences, Charles University, Czechia)
    Abstract: Business R&D spending has been showed to exert a positive direct as well as indirect, spillover effects on value added. Nevertheless, heterogeneity of the returns to R&D has been seldom examined. Using detailed sectoral data from Czechia over the period 1995-2015, this study finds that privately funded business R&D has both direct and spillover effects, but that the publicly funded part of business R&D only leads to spillovers. The results further suggest that both upstream and downstream spillovers matter, regardless of the source of funding, and that the R&D returns were heavily affected by the economic crisis. Lastly, private R&D offers significant returns only after reaching a critical mass, while the effects of public R&D spending do not profess such non-linearity. The heterogeneity of returns to business R&D needs to be reflected in the design of innovation policy.
    Keywords: R&D returns, spillovers, Czechia
    JEL: O32 O33 O47 L14
    Date: 2019–11
  6. By: Georgios Kapsalis (European Commission – JRC); Anusca Ferrari (European Commission – EAC); Yves Punie (European Commission – JRC); Johannes Conrads (CARSA); Antonio Collado (CARSA); Risto Hotulainen (University of Helsinki, Centre for Educational Assessment); Irene Rama (University of Helsinki, Centre for Educational Assessment); Laura Nyman (University of Helsinki, Centre for Educational Assessment); Sanna Oinas (University of Helsinki, Centre for Educational Assessment); Paul Ilsley (University of Helsinki, Centre for Educational Assessment)
    Abstract: This report presents the outcomes and analyses of the study Evidence of Innovative Assessment. It provides an overview of innovative (digital and non-digital) assessment approaches and evidence on how these have been implemented to various settings. The first part describes the rational of the study, defines innovative assessment and gathers evidence on the effectiveness of a variety of assessment practices such as self- and peer-assessment, open badges, simulation and learning analytics. The second part presents eight case studies that have integrated innovative assessment approaches from a range of different contexts (formal, non-formal learning, employment, elderly care), covering different age groups, assessment purposes and implementation strategies. Through cross comparisons, the report identifies the challenges and success factors and the replicability of these cases. The report ends with recommendations for research, educational policy and practice.
    Keywords: Innovative assessment, self-assessment, peer-assessment, digital badges, simulations, learning analytics, case studies
    Date: 2019–10
  7. By: Sun, Laixiang
    Abstract: This paper establishes a theoretical framework for the ongoing research project of UNU/WIDBR on Property Rights Regimes, Microeconomic Incentives and Development. It identifies the major research interests, questions, and focuses. The theoretical emphasis is on the very relevance of concrete institutional context, development stages, and technological environment to the determination of ownership and governance structures of the firm, and on the rationality behind the emergence of unconventional ownership and governance structures of the firm in the industrial sector. Four types of examples are presented to show the characteristics of major emerging unconventional ownership forms, which include the rise of institutional ownership in large publicly traded corporations in the US and UK; the expansion of employee stock ownership in the US; the emergence of joint- stock co-operatives on a large scale in China; the famous Mondragon co- operative group in Spain and Italian co-operatives in the La Lega network. Four cases are analysed to demonstrate how the changes in institutional and technological fundamentals alter the comparative cost-benefit balance of a given ownership form, which include the story of both bright and dark sides of Japanese 'companyism' and the shift in the balance between these two sides in the 1990s; the reasons why group affiliations and business diversification increase the total value of the relevant firms in India and Chile; the successful experience from Italy in imposing and sustaining a hard budget constraint to state-owned enterprises (SOBs) by supranational forces, and the evidence from China in hardening the budget constraints of local governments and local SOBs through the evolving fiscal decentralisation and monetary centralisation. In terms of policy implication, four general lessons for developing and transition economies are highlighted.
    Keywords: International Development
  8. By: Fang, F. (Tilburg University, School of Economics and Management)
    Abstract: This dissertation investigates how two different governances (contractual and relational) and performance affect each other in a public – private partnership (PPP). It contributes to the governance literature by providing an integrated view of the dynamic process, not only of how these two governances affect project performance, but also how project performance affects the use of the two mechanisms in a PPP. The research studies four PPPs formed between Dutch Water Authorities (DWAs) and their contractors. In all cases two parties (DWAs and contractors) encountered a performance shortfall (i.e. actual project performance being lower than contractually required performance). When a performance shortfall occurs, business relationship is slightly changed, it deteriorates and its outcome is uncertain. Contractual and relational strategies have been used to deal with this situation. The contractual strategy focuses on solving the performance shortfall through a formal and written contract which explicitly stipulates the responsibilities and obligations of each party, while the relational strategy focuses on solving the performance shortfall through informal relations and shared norms. The results shows that once a performance shortfall occurs, a relational strategy is likely to help enhance the project performance and this results in a good relational outcome. In turn, enhanced project performance and a better relationship promotes the continuous use of a relational strategy. In contrast, a contractual strategy is likely to have negative impact on project performance, thus leading to a bad relational outcome. As a result, it is likely to trigger the repeated use of the contractual strategy.
    Date: 2019
  9. By: H Peyton Young; Itai Arieli; Yakov Babichenko; Ron Peretz
    Abstract: New ways of doing things often get started through the actions of a few innovators, then diffuse rapidly as more and more people come into contact with prior adopters in their social network. Much of the literature focuses on the speed of diffusion as a function of the network topology. In practice the topology may not be known with any precision, and it is constantly in flux as links are formed and severed. Here we establish an upper bound on the expected waiting time until a given proportion of the population has adopted that holds independently of the network structure. Kreindler and Young [38, 2014] demonstrated such a bound for regular networks when agents choose between two options: the innovation and the status quo. Our bound holds for directed and undirected networks of arbitrary size and degree distribution, and for multiple competing innovations with different payoffs.
    Date: 2019–11–04

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