nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒02‒24
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan By Wadho, Waqar; Chaudhry, Azam
  2. Effects of cluster policies on regional innovation networks: Evidence from France By Konan Alain N’Ghauran; Corinne Autant-Bernard
  3. Management Practices in Croatia : Drivers and Consequences for Firm Performance By Grover,Arti Goswami; Iacovone,Leonardo; Chakraborty,Pavel
  4. Dynamic effects of enforcement on cooperation By Roberto Galbiati; Emeric Henry; Nicolas Jacquemet
  5. Firm-level employment growth in South Africa: The role of innovation and exports By Naidoo Karmen
  6. Technology Business Incubator at National Institute of Technology Calicut, India: Way forward By Joffi Thomas
  7. Foreign Direct Investment and Female Entrepreneurship By Fang,Sheng; Shamseldin,Heba M.M.; Xu,L. Colin

  1. By: Wadho, Waqar; Chaudhry, Azam
    Abstract: We examine the determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation.
    Keywords: Technological Innovation,organizational innovation,labor productivity,developing countries,Labor intensive industries
    JEL: O31 O32 L25 L67 C31 C24 D22
    Date: 2020
  2. By: Konan Alain N’Ghauran (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France); Corinne Autant-Bernard (Univ Lyon, UJM Saint-Etienne, CNRS, GATE L-SE UMR 5824, F-42023 Saint-Etienne, France)
    Abstract: Despite the growing body of literature evaluating cluster policies, it still remains difficult to establish conclusively their structural effects on regional innovation networks. Focusing on the French cluster policy during the period 2005-2010, this study aims at evaluating how cluster policies influence the structure of local innovation networks following network topologies that may be beneficial for regional innovation. Based on a panel data of four periods and 94 NUTS3 French regions, we estimate spatial Durbin models, allowing us to identify direct, indirect and total effects of cluster policies. The results suggest that cluster policies can result in both positive and negative total effects on the structure of local innovation networks depending on regions’ technological specialisation. Beyond the heterogeneous effects, the results also highlight that cluster policies may lead to a regional competition for the strengthening of innovation networks. This finding echoed previous research pointing out the possible "beggar-thy-neighbour" effects of cluster policies.
    Keywords: Cluster, Regional innovation, Innovation network, Policy evaluation
    JEL: L52 O33 R58
    Date: 2020
  3. By: Grover,Arti Goswami; Iacovone,Leonardo; Chakraborty,Pavel
    Abstract: Embedding management and operational practices survey in a broader firm capabilities survey, this paper finds that an average firm in Croatia scores 0.532 on structured management practices, which is farther from the frontier (0.615 in the United States). This average, however, masks the wide heterogeneity in management practices among firms. Relative to advanced countries, a large share of firms in Croatia are badly managed. Management is particularly worse in services and more so in non-knowledge intensive services. Better managed firms show superior performance: improving the management score from the 10th decile to the 90th decile is expected to improve sales per employee by 36 percent, profits by 33 percent and the probability to innovate by 11 percent. Likewise, better managed firms more likely use sophisticated technologies and have a higher probability of accessing external finance. What drives firms to improve their management practices? As elsewhere in the world, global linkages of firms matter. However, unlike the evidence in advanced countries, management capabilities in Croatia is negatively associated with firm age, especially in services, indicating the possibility of allocative inefficiency, where learning and selection mechanism does not weed out the badly managed firms perhaps due to the lack of pro-competitive forces.
    Date: 2019–11–22
  4. By: Roberto Galbiati (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Emeric Henry (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Nicolas Jacquemet (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: In situations where social payoffs are not aligned with private incentives, enforcement with fines can be a way to sustain cooperation. In this paper we show, by the means of a lab experiment , that past fines can have an effect on current behavior even when no longer in force. We document two mechanisms: a) past fines affect directly individuals' future propensity to cooperate; b) when fines for non cooperation are in place in the past, individuals experience higher levels of cooperation from partners and, consistent with indirect reciprocity motives, are in turn nicer towards others once these fines have been removed. This second mechanism is empirically prevalent and, in contrast with the first, induces a snowball effect of past enforcement. Our results can inform the design of costly enforcement policies.
    Keywords: experiments,Laws,social values,cooperation,learning,spillovers,persistence of institutions,repeated games
    Date: 2018–12
  5. By: Naidoo Karmen
    Abstract: This paper investigates the effect of innovation on employment growth at the firm level in South Africa. Innovation is typically associated with better export performance at the firm level due to productivity enhancements and new products.However, the link between innovation and employment is more ambiguous. R&D targeted towards product innovation has been typically associated with employment growth. Process innovations may have a positive effect, but also have the potential to reduce the demand for labour.This paper aims to isolate the impact of innovation on export performance to understand the direct and indirect channels through which innovation can influence employment growth. The analysis makes use of a novel administrative dataset of all registered firms in South Africa for the 2010–16 period.The study finds that, overall, direct innovation is positively associated with employment growth; however, the indirect innovation channel is negative and points to the idea that the productivity enhancements necessary for South African exporters to compete internationally might promote labour-saving innovations.ÂÂ
    Keywords: Firm growth,R&D,Employment,Exports
    Date: 2019
  6. By: Joffi Thomas (Indian Institute of Management Kozhikode)
    Abstract: Preethi M., Manager of the Technology Business Incubator (TBI) at National Institute of Technology Calicut (NITC) was preparing for the upcoming Board of Governors meeting scheduled on March 2014. Incidentally, two faculty members from the nearby Indian Institute of Management Kozhikode had dropped in to visit a few entrepreneurs at TBI with a view to explore collaborative opportunities for engaging with the incubates to understand various issues faced by them during the start-up phase. On accompanying them to the building where the incubatees were housed, she paused a moment at the entrance and exclaimed to herself “it is indeed a miracle that TBI was still surviving”. Since its inception in November 2003, she had been the Manager of TBI. The goal of the incubator was quite clear – to incubate start-up companies in Information Technology (IT) and Electronics industry. Since then, TBI had so far given incubation support to 42 start-ups, 80% of which had survived as of 2015. Given its initial as well as ongoing challenges, Preethi believed that TBI’s performance hadindeed been impressive. However, she was convinced that TBI could do much more may be it required stronger institutional support for resources, funds and other inputs required for its growth.As she was flipping through the slides later in the day, different issues which had a bearing on TBI’sfuture flashed across her mind. How could she garner the support from NIT and its students? How does she attract more incubatees? Where do additional resources required for capital expenditure as well as operational expenses come from? What was the role an incubator like TBI was expected to play in a technical institute like NIT? Is TBI meeting the expectations? What was the relevance of incubators like TBI for the economy at large?
    Date: 2019–03
  7. By: Fang,Sheng; Shamseldin,Heba M.M.; Xu,L. Colin
    Abstract: Using World Bank Enterprise Survey data around the world, this paper examines how foreign direct investment is associated with female entrepreneurship (that is, a firm being managed and at least partly owned by women), along with other factors such as business environment and female empowerment, and their interactions with foreign direct investment. Female entrepreneurship rises with foreign direct investment inflow, lower entry barriers for women, women's better access to finance, higher female labor force participation, and women's better education. The positive association of foreign direct investment inflow and female entrepreneurship is stronger for firms in the service sectors and small firms. The horizontal competition effects of intra-industry foreign direct investment for female entrepreneurship are reduced when women face lower entry barriers for starting a business and have a higher labor force participation rate, and the effects do not depend on women's access to finance or their level of education.
    Date: 2019–12–16

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