nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒04‒27
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Learning in foreign and domestic value chains – The role of opportunities and capabilities By Rene Belderbos; Christoph Grimpe
  2. An Analysis on Human Resource Management in Australia Small and Medium Enterprises By Noimilynn Nabetin; Stephane Pabangou
  3. R&D or R vs. D? Firm Innovation Strategy and Equity Ownership By James Driver; Adam Kolasinski; Jared Stanfield
  4. Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour By Nils Grashof
  5. Linking supervisor incivility with job embeddedness and cynicism: The mediating role of employee self-efficacy By Uju Violet Alola; Simplice A. Asongu; Andrew Adewale Alola
  6. Patents to Products: Product Innovation and Firm Dynamics By David Argente; Salomé Baslandze; Douglas Hanley; Sara Moreira
  7. Have R&D Spillovers Declined in the 21st Century? By Lucking, Brian; Bloom, Nicholas; Van Reenen, John

  1. By: Rene Belderbos; Christoph Grimpe
    Abstract: We suggest that the benefits of learning in international value chains for firms’ innovation performance are heterogeneous and depend on the specific source of learning (customers, suppliers, or competitors), whether these sources are based in countries that are technologically advanced or less advanced (learning opportunities), on technology leadership (learning capabilities) on the part of the focal firm, and on the simultaneous learning that occurs from domestic firms. Using direct survey evidence on learning and innovation by German firms, we confirm that technology leaders benefit from advanced foreign customer and supplier learning, that technology laggards benefit from less advanced foreign customer learning and advanced foreign competitor learning, and that both leaders and laggards benefit from domestic customer learning. The findings suggest a tradeoff between the opportunities to learn from foreign or domestic customers.
    Keywords: learning from internationalization, innovation, technology leadership
    Date: 2020–04–16
  2. By: Noimilynn Nabetin (Business School [Hohai University] - Hohai University); Stephane Pabangou (Yangzhou University)
    Abstract: While it is widely known that human resource management (HRM) is vital to competitive success, discussion has rarely included small and medium-sized enterprises (SMEs) let alone SMEs in Australia. This neglect is surprising given that SMES play an important role in the development of every economy especially in Australia's economy. With the globalization of the world economy, knowledge, and information technology expanding, the survival and development of small and medium enterprises are facing more competition pressure. This has made the investment in human resources a necessity in such a way that helps small and medium enterprises be able to resist the challenges they face in the hostile environment they operate in. If managed effectively and efficiently, human resources management can play a critical role in achieving the objectives and goals of any and all enterprises. This paper analyzes the many different issues faced by human resource management in Australia's small and medium enterprises such as recruitment, performances, succession planning, Time Management, Skill Management, Training and at the same time provides countermeasures which would contribute to the lasting succession and progress of small and medium enterprises.
    Keywords: Australia,small and medium enterprises,human resource management,challenges,countermeasures
    Date: 2020–03–29
  3. By: James Driver; Adam Kolasinski; Jared Stanfield
    Abstract: We analyze a unique dataset that separately reports research and development expenditures for a large panel of public and private firms. Definitions of “research” and “development” in this dataset, respectively, correspond to definitions of knowledge “exploration” and “exploitation” in the innovation theory literature. We can thus test theories of how equity ownership status relates to innovation strategy. We find that public firms have greater research intensity than private firms, inconsistent with theories asserting private ownership is more conducive to exploration. We also find public firms invest more intensely in innovation of all sorts. These results suggest relaxed financing constraints enjoyed by public firms, as well as their diversified shareholder bases, make them more conducive to investing in all types of innovation. Reconciling several seemingly conflicting results in prior research, we find private-equity-owned firms, though not less innovative overall than other private firms, skew their innovation strategies toward development and away from research.
    Date: 2020–04
  4. By: Nils Grashof (Centre for Regional and Innovation Economics, University of Bremen, Germany)
    Abstract: Human resources are a key factor for firm success, particularly nowadays when most industrial economies face an increasing shortage of qualified labour. With their pooled labour markets, regional clusters have been shown to be a preferable location for firms in order to satisfy their demand for skilled employees. Nevertheless, in light of possible disadvantages (e.g. labour poaching) and the broad field of studies dealing with firm performance differentials, the prevalent assumption that all companies profit equally from the specialized labour pool in clusters must be questioned. Consequently, the aim of this paper is to empirically investigate the conditions and mechanisms through which companies located in clusters can gain, in terms of innovativeness, from the specialized labour pool. By synthesizing theoretical streams from the strategic management (e.g. resource-based view) and the economic geography literature (e.g. cluster approach), variables from three different levels of analysis (micro-level, meso-level and macro- level) are examined separately as well as interactively. Apart from revealing that being located in a cluster indeed increases on average firm innovativeness, one of the central findings is that firms benefit unequally within the cluster environment depending on the specific firm-level, cluster-level, industry-/market-level conditions and their respective interactions.
    Keywords: specialized labour pool, cluster, agglomeration, firm performance differentials, innovation
    JEL: C31 J24 L22 O30 R10 R23
    Date: 2020–04–12
  5. By: Uju Violet Alola (Istanbul Gelisim University, Istanbul, Turkey); Simplice A. Asongu (Yaoundé, Cameroon); Andrew Adewale Alola (Istanbul Gelisim University, Istanbul, Turkey)
    Abstract: Applying the conservation of resources theory and the self-efficacy theory, this study investigates the relationship between supervisor incivility, self-efficacy, cynicism and the job embeddedness of employees in the hotel industry. The role of self-efficacy, as an important variable that mediates the relationship between the predictor and the criterion variable, is significantly evaluated. A non-probability sampling technique was used to collect 245 questionnaires from frontline employees of five- and four-star hotels in Nigeria. The findings reveal that supervisor incivility has a negative effect on self-efficacy and a positive effect on cynicism, and that self-efficacy negatively affects cynicism. There was no significant relationship with job embeddedness in the study. Importantly, the investigation establishes that self-efficacy is a mediating variable between supervisor incivility and cynicism. The study noted the importance of adopting a policy that introduces periodic seminars and professional training for both employees and supervisors, as a means for curbing incivility and cynicism. The study concludes with theoretical and practical implications, leaving room for further investigation.
    Keywords: supervisor incivility; cynicism; self-efficacy; job embeddedness; Nigeria
    JEL: D23 M12 O55
    Date: 2019–01
  6. By: David Argente; Salomé Baslandze; Douglas Hanley; Sara Moreira
    Abstract: We study the relationship between patents and actual product innovation in the market, and how this relationship varies with firms’ market share. We use textual analysis to create a new data set that links patents to products of firms in the consumer goods sector. We find that patent filings are positively associated with subsequent product innovation by firms, but at least half of product innovation and growth comes from firms that never patent. We also find that market leaders use patents differently from followers. Market leaders have lower product innovation rates, though they rely on patents more. Patents of market leaders relate to higher future sales above and beyond their effect on product innovation, and these patents are associated with declining product introduction on the part of competitors, which is consistent with the notion that market leaders use their patents to limit competition. We then use a model to analyze the firms' patenting and product innovation decisions. We show that the private value of a patent is particularly high for large firms as patents protect large market shares of existing products.
    Keywords: patent value; productivity; creative destruction; patents; product innovation; growth
    JEL: O3 O4
    Date: 2020–04–17
  7. By: Lucking, Brian; Bloom, Nicholas; Van Reenen, John
    Abstract: Slow growth over the last decade has prompted policy attention towards increasing R&D spending, often via the tax system. We examine the impact of R&D on firm performance, both by the firm's own investments and through positive (and negative) spillovers from other firms. We analyse panel data on US firms over the last three decades, and allow for time-varying spillovers in both technology space (knowledge spillover) and product market space (product market rivalry). We show that the magnitude of R&D spillovers remains as large in the second decade of the 21st century as it was in the mid 1980s. Since the ratio of the social return to the private return to R&D is about four to one, this implies that there remains a strong case for public support of R&D. Positive spillovers appeared to temporarily increase in the 1995–2004 digital technology boom. We also show how these micro estimates relate to estimates from the endogenous growth literature and give some suggestions for future work.
    Keywords: innovation; patents; productivity; R&D; spillovers
    JEL: O31 O32 O33 F23
    Date: 2019–12–01

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