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on Economics of Strategic Management |
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Issue of 2020‒05‒18
seven papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Alhassan A. Karakara (University of Cape Coast, Ghana); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria. Design/methods/approach – The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method. Findings – The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy. Originality/value – This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely: Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa. |
| Keywords: | Firms, ICT adoption, Innovation, West Africa, World Bank Enterprise Survey data, Ghana, Nigeria |
| JEL: | D21 L60 L80 O14 O30 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/023&r=all |
| By: | Betul Gur (Istanbul Commerce University, Department of Economics) |
| Abstract: | The power that makes countries superior to each other in global competition is their ability to be innovative. With Industry 4.0, today's industrial policies are being established on an innovation basis. The degree of countries' trade openness in the economy is very important for developing countries in terms of learning and developing information and technology and ultimately contributing to the improvement of their innovation capacities. This study aims to determine the effects of the main foreign trade indicators on innovation with respect to the developing countries group BRICS-T through panel cointegration analysis for the period 2007-2019. In terms of foreign trade, "export", "import", and "foreign direct investment" have been taken into account, and the "global innovation index" has been taken into consideration as the indicator of innovation. As a result of the cointegration analysis, it has been determined that the variables are related in the long run, exports have a positive effect on innovation, whereas imports and foreign direct investments adversely affect innovation. As a result of causality analysis, a two-way causality relationship has been found between export and innovation while a one-way causality has been detected with direct foreign investment and import. |
| Keywords: | Innovation, Foreign Trade, Panel Cointegration Analysis |
| JEL: | O30 O57 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ana:wpaper:20003&r=all |
| By: | Sonia Benito-Hernandez (Universidad Politecnica de Madrid); Cristina Lopez-Cozar Navarro (Universidad Politecnica de Madrid); Gracia Rubio Martin (Universidad Complutense de Madrid) |
| Abstract: | This paper provides empirical evidence of efforts to enable Spanish manufacturing companies to boost their economic profitability rates through the development of Corporate Social Responsibility (CSR) policies. This study aims to develop new approaches and sensibilities towards work from an ethical, values (virtues) and CSR perspective, showing how internal and externaldimensions of CSR -such as those related to relationships with employees, relationship with the community and responsibility in process quality management -contribute to improve the economic profitability of the company (ROA) in addition to improving society. The results of a sample of 6,186 businesses show that, in general, the implementation of collaboration policies have increased relationships with the community. Alliances with competitors, institutions and suppliers had a significant positive effecton increased ROA. Nevertheless, as we anticipated, cooperation with customers had a negative impact on ROA. In addition, to improve relationships with employees, the implementation of quality policies had a positive and relevant impact on the ROA. |
| Keywords: | Economic Profitability, Policies of CSR, Employees’ Relations, Responsibility in Quality Management, Community Relations |
| JEL: | M14 L20 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ana:wpaper:20002&r=all |
| By: | Vania Pacheco (CATIM– Centro de Apoio Tecnologico a Industria Metalomecanica); Nuno Araujo (CATIM– Centro de Apoio Tecnologico a Industria Metalomecanica); Luis Rocha (CATIM– Centro de Apoio Tecnologico a Industria Metalomecanica) |
| Abstract: | Popularized in the early of 2000s, the concept of Open Innovation (OI) is a systematic process that instigates the circulation of ideas among different exploitation vectors focused on value creation. Over the past decade, the OI paradigm had a significant impact on the emergence of innovation networks and ecosystems. With the emergence of digital disruptive technologies, a new approach to OI has emerged -Open Innovation 2.0 (OI2) -incorporating technological, social, political, environmental dimensions, based on principles of integrated collaboration and co-created shared value, cultivating innovation ecosystems, unleashing the power of exponential technologies, with extraordinarily rapid adoption. This article will begin by explaining the evolution from IO to IO2. Key incentives, risks and costs associated with this new strategic approach to innovation will also be identified, as well as, the factors and the conditions of success that lead companies to formulate OI2 strategies starting from OI. This study will culminate in the identification of some initiatives developed in Portugal that are contributing to this transition. The analysis carried out will show that OI2 is not a panacea that can solve any challenge, but help drive significant structural changes and benefits through innovation to society and industry. |
| Keywords: | Open Innovation, Open Innovation 2.0, Co-creation, Digital Agenda, Networking |
| JEL: | Q32 Q55 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:ana:wpaper:20001&r=all |
| By: | Nils Grashof (University of Bremen); Dirk Fornahl (University of Bremen) |
| Abstract: | In the 21st century clusters can be observed in most developed economies. However, the scientific results regarding the effect of clusters on firm performance are highly contradictive. This inconsistency in the empirical results makes it difficult to infer general conclusions about the firm-specific cluster effect, referring to the effect from being located in a cluster on firm performance, e.g. derived through the externalities within clusters. Therefore, this paper aims to reconcile the contradictory empirical findings. It investigates whether the still prevalent assumption that clusters are a beneficial location for firms is unconditionally true or whether doubts about the alleged positive effect of clusters on firm performance are justified. By conducting a descriptive meta-analysis of the empirical literature, based on four different performance variables from four separate publication databases, the study investigates the actual effect direction as well as possible moderating influences. We find evidence for a rather positive firm-specific cluster effect. However, we identify several variables from the micro-, meso- and macro-level that directly or interactively moderate the relationship between clusters and firm success. The corresponding results demonstrate, for example, that a negative firm-specific cluster effect occurs more frequently in low-tech industries than in high-tech industries. ‘To be or not to be’ located in a cluster is therefore not the question, but it rather depends on the specific conditions. |
| Keywords: | : meta-analysis, cluster effect, firm performance |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2020-01&r=all |
| By: | Heinrich, Torsten; Yang, Jangho; Dai, Shuanping |
| Abstract: | We investigate structural change in the PR China during a period of particularly rapid growth 1998-2014. For this, we utilize sectoral data from the World Input-Output Database and firm-level data from the Chinese Industrial Enterprise Database. Starting with correlation laws known from the literature (Fabricant's laws), we investigate which empirical regularities hold at the sectoral level and show that many of these correlations cannot be recovered at the firm level. For a more detailed analysis, we propose a multi-level framework, which is validated with empirically. For this, we perform a robust regression, since various input variables at the firm-level as well as the residuals of exploratory OLS regressions are found to be heavy-tailed. We conclude that Fabricant's laws and other regularities are primarily characteristics of the sectoral level which rely on aspects like infrastructure, technology level, innovation capabilities, and the knowledge base of the relevant labor force. We illustrate our analysis by showing the development of some of the larger sectors in detail and offer some policy implications in the context of development economics, evolutionary economics, and industrial organization. |
| Keywords: | Structural change; Fabricant's laws; China; labor productivity; economic growth; firm growth |
| JEL: | L11 L16 O10 O30 O53 |
| Date: | 2020–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:100106&r=all |
| By: | Tomás Gómez; Alejandro Jara; David Moreno |
| Abstract: | In this paper, we study whether prudential and monetary policy interactions play a role in the dynamic of domestic banks' lending growth rates in Chile. We look at a group of internationally active banks during 2000q1-2017q4. We ask whether the stance of domestic prudential (monetary) policies in Chile changes international monetary (prudential) policy spillovers and if the transmission of domestic monetary policy shocks to bank credit is affected by the stance of domestic prudential policy. We stress the importance of analysing each prudential policy separately, as results may vary due to banks' exposure to such policies as well as different mechanisms of transmission in place. Overall, tight foreign-currency reserve requirements seem to dampen the transmission of foreign monetary policy shocks significantly, while reinforcing that of local monetary policy. However, this result is less robust for other prudential policies considered. Finally, adverse spillovers from tightening capital requirements abroad may be amplified by a tight monetary policy at home. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:chb:bcchwp:870&r=all |