nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒04‒06
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones? By Mathew, Nanditha; Paily, George
  2. Success factors of innovations By Sterenn Lucas; Louis-Georges Soler; Etienne Rouvin
  3. Do Elite Colleges Matter? The Impact of Elite College Attendance on Entrepreneurship Decisions and Career Dynamics By Naijia Guo; Charles Ka Yui Leung
  4. Intrapreneurship and trust By Niklas Elert; F.C. Stam; Mikael Stenkula
  5. Industrial Policies, Patterns of Learning and Development: an Evolutionary Perspective By Mario Cimoli; Giovanni Dosi; Xiaodan Yu
  6. Business model innovation in incubators: the role played by dynamic capabilities theory By Amandine Maus; Sylvie Sammut
  7. Internationalization and family ownership. Does the life-cycle of destination markets matter? By Marco Cucculelli; Yu Sun; Yi Zhu
  8. Global Software Piracy, Technology and Property Rights Institutions By Simplice A. Asongu
  9. Entrepreneurial Ecosystems Elements By F.C. Stam

  1. By: Mathew, Nanditha (UNU-MERIT); Paily, George (Centre for Development Studies, Trivandrum)
    Abstract: This paper examines the effect of dfferent innovation strategies followed by small and large firms on their overall performance in the capital goods industry. Following the wider literature on national innovation systems, we categorise the innovation modes as formal Science, Technology and Innovation (STI) and informal learning by Doing, Using and Interacting (DUI) mode. We observe that, in the case of small firms the informal learning and experience based innovation mode is related to improved performance, while the formal STI mode does not have any effect. On the other hand, for large firms, both STI and DUI innovation modes are positively related to its sales growth. Our results indicate that building certain DUI capabilities may act as a pre-condition to enhance the strength of science and technology based innovation strategies.
    Keywords: STI, DUI, Modes of innovation, Capabilities accumulation, Corporate performance, capital goods industry, India
    JEL: O32 O33 L20
    Date: 2020–02–11
  2. By: Sterenn Lucas; Louis-Georges Soler; Etienne Rouvin
    Abstract: The French seafood sector is currently confronted with increasing competition from imported products, price fluctuations and new challenges such as environmental issues. In the face of these issues, producers may not be able to meet consumer expectations, and new products intended to boost growth in the seafood sector may not succeed. To clarify the drivers of competitiveness in the seafood sector, a greater understanding of the success factors behind seafood innovation is needed. We use an original database obtained from the merger of two databases. We combine Mintel’s Global New Products Database, which identifies new products launched in France in 2010, 2011 and 2012, with consumption data spanning 2010 to 2014 from a household panel (Kantar). The data allow us to track the quantities of 246 new products purchased in the year after their launch. We run an ordered logit model to measure the impact of product, marketing and market variables on the probability of a product becoming successful. We identify three possibilities: success, i.e., the product is still on the market one year after its launch with an increased quantity; stagnation, i.e., the product is still on the market one year after its launch with a decreased quantity; and failure, i.e., the product is no longer on the market at all a year after its launch. We also run a Cox proportional hazards model with the products’ time on the market as the dependent variable. The model estimates the time that elapses before the product disappears. The results show that three kinds of factors influence competitiveness: firm characteristics (size, specialization), market economic situation and, to a lesser extent, the marketing process.
    Keywords: Innovation, measurement of success, seafood sector, ordered logit model, Cox model
    JEL: L1 Q31 L66 C25
    Date: 2020
  3. By: Naijia Guo (Chinese University of Hong Kong); Charles Ka Yui Leung (City University of Hong Kong)
    Abstract: Elite college attendance significantly impact on subsequent entrepreneurship decisions and career dynamics. We find that an elite college degree is positively correlated with entrepreneurship (defined as owning an incorporated business) but not with other forms of self-employment. We develop an overlapping generations model that captures self-selection in education and career choices based on heterogeneous ability and family wealth endowments over the lifecycle. Our estimates show that (1) entrepreneurs and other self-employed individuals require different types of human capital and (2) elite colleges generate considerably more human capital gain than ordinary colleges, particularly for entrepreneurs. Distinguishing between elite and ordinary colleges improves our prediction of entrepreneurship decisions. Our simulation shows that moving elite college graduates to non-elite colleges significantly reduce their likelihood of becoming entrepreneurs, but not other self-employment. Overall, providing subsidies for elite colleges is more efficient than subsidizing their non-elite counterparts in encouraging entrepreneurship, improving intergenerational mobility and welfare.
    Keywords: entrepreneurship, elite college, intergenerational transfer
    JEL: I20 J24
    Date: 2020–03–30
  4. By: Niklas Elert; F.C. Stam; Mikael Stenkula
    Abstract: Trust and entrepreneurship are seen as key ingredients of long term prosperity. However, it is not clear how these two are related. Part of the confusion can be traced back to the measurement of entrepreneurship, biased towards independent entrepreneurship (self-employed and new firms), and excluding entrepreneurship within established organizations. We shed new light on the relationship between trust and entrepreneurship, by proposing two mechanisms relating trust to entrepreneurship by employees, so-called intrapreneurship. We hypothesize that generalized trust influences the prevalence of intrapreneurship in an economy, and the allocation of entrepreneurial talents between independent entrepreneurship and intrapreneurship, through two mechanisms. First, generalized trust may substitute for complete contracts as a means of organizing labor in society, enabling a level of job autonomy in organizations necessary for intrapreneurship to flourish. Second, by way of its influence on the size and scope of the welfare state, generalized trust may increase the benefits of employment relative to self-employment, causing entrepreneurial individuals to elect to be intrapreneurs rather than independent entrepreneurs. Using a novel dataset, we find support for these hypotheses in a cross-country regression model covering the time period 2011–2017.
    Keywords: trust, intrapreneurship, entrepreneurship, institutions
    Date: 2019–06
  5. By: Mario Cimoli; Giovanni Dosi; Xiaodan Yu
    Abstract: This work discusses the role of industrial policies within an evolutionary view of innovation and learning as drivers of economic development. Building on the notions of technological paradigms and trajectories, it links the processes of catching-up with the dynamics of capability accumulation within and across firms. In turn such processes are embedded in broader national systems of innovation wherein industrial policies play a pivotal role.
    Keywords: Technological paradigms; Catching up; Theory of production; Absolute and Comparative Advantages; National systems of innovation; Industrial Policies; Economic Evolution and Development.
    Date: 2020–03–30
  6. By: Amandine Maus (UM - Université de Montpellier, MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier, Labex Entreprendre - UM - Université de Montpellier); Sylvie Sammut (UM - Université de Montpellier, MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier, Labex Entreprendre - UM - Université de Montpellier)
    Abstract: This conceptual paper focuses on a review of the literature based on 61 articles. It shows the adjusted transferability of the business model tool resulting in the strategic guidance of public business incubators, particularly in terms of their search for new competitive advantage. By making use of dynamic capability theory, this study reveals that the entrepreneurial behavior of the public actors in business support has led them to rethink their business model. This model allows them to boost their performances in an industry that is becoming increasingly competitive thanks to the use of new opportunities. The originality of this research lies in its use of a tool traditionally devoted to businesses, the business model, for organizations for the most part financed through public funds, business incubators.
    Keywords: Business model,business incubators,dynamic capabilities
    Date: 2018–08–12
  7. By: Marco Cucculelli (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche); Yu Sun (London School of Economics and Political Science); Yi Zhu (mail: Universite' Catholique de Louvain (Belgium) and Universita' Politecnica delle Marche)
    Abstract: Despite the conventional view on family firms that are slow to venturing into foreign markets, Hennart et al. (J Int Bus Stud, 2019) show that family firms in high-quality niche businesses are able to overcome the internationalization barriers. Eddleston et al. (J Int Bus Stud, 2019) counterpoint it by arguing that the effect only conditionally holds when external and internal contexts are considered, specified as pro-market development and professionalization practices respectively. We extend Hennart et al.'s (2019) and Eddleston et al'i.s (2019) research by explicitly considering the heterogeneity in the life-cycle of destination markets. Specifically, we show that family firms, no matter selling niche or mass products, are encouraged to internationalize given satisfactory market growth potential - an external context, as in Eddlelston et al. 2019. We develop a two-period competition model with logistic market growth to assess the role of the life cycle of export markets on the decision to entry. The empirical evidence shows that family firms are more likely to enter markets with high growth potential in their early stages of development. We also test a pricing-to-market model to show that a replication strategy, which consists of exporting products already sold in domestic markets, is a viable entry strategy for (price-taking) family firms.
    Keywords: internationalization, family firms, life-cycle, potential market growth, replication strategy, mass and niche products
    JEL: F23 F14 G32 L60
    Date: 2020–03
  8. By: Simplice A. Asongu (Yaounde, Cameroon)
    Abstract: This study extends the literature on fighting software piracy by investigating how Intellectual Property Rights (IPRs) regimes interact with technology to mitigate software piracy when existing levels of piracy are considered. Two technology metrics (internet penetration rate and number of PC users) and six IPRs mechanisms (constitution, IPR law, main IP laws, WIPO Treaties, bilateral treaties and multilateral treaties) are used in the empirical analysis. The statistical evidence is based on: (i) a panel of 99 countries for the period 1994-2010 and (ii) interactive contemporary and non-contemporary Quantile regressions.The findings show that the relevance of IPR channels in the fight against software piracy is noticeably contingent on the existing levels of technology embodied in the pirated software. There is a twofold policy interest for involving modern estimation techniques such as interactive Quantile regressions. First, it uncovers that the impact of IPR systems on software piracy may differ depending on the nature of technologies used. Second, the success of initiatives to combat software piracy is contingent on existing levels of the piracy problem. Therefore, policies should be designed differently across nations with high-, intermediate- and low-levels of software piracy.
    Keywords: Piracy; Business Software; Software piracy; Intellectual Property Rights
    JEL: F42 K42 O34 O38 O57
    Date: 2020–01
  9. By: F.C. Stam
    Abstract: There is growing interest in ecosystems as an approach for understanding the context of entrepreneurship at the macro level of an organizational community. It consists of all the interdependent actors and factors that enable and constrain entrepreneurship within a particular territory. Although growing in popularity, the entrepreneurial ecosystem concept remains loosely defined and measured. This paper shows the value of taking a systems view of the context of entrepreneurship: understanding entrepreneurial economies from a systems perspective. We use a systems framework for studying entrepreneurial ecosystems, develop a measurement instrument of its elements, and use this to compose an entrepreneurial ecosystem index to examine the quality of entrepreneurial ecosystems in the Netherlands. We find that the prevalence of high-growth firms in a region is strongly related to the quality of its entrepreneurial ecosystem. Strong interrelationships among the ecosystem elements reveal their interdependence.
    Keywords: entrepreneurial ecosystem elements, regional entrepreneurial ecosystems, entrepreneurial economy, entrepreneurship, high-growth firms, systems analysis
    Date: 2019–06

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