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on Economics of Strategic Management |
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Issue of 2020‒05‒25
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| 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 - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, 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this paper we show, by the means of a lab experiment , that past fines can have an effect on current behavior even when no longer in force.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 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-01971468&r=all |
| By: | Oleksandr Talavera (University of Birmingham); Shuxing Yin (University of Sheffield); Mao Zhang (University of St Andrews) |
| Abstract: | This study introduces a new dimension, age diversity of non-CEO executives, which moderates the relationship between promotion-based tournament incentives, measured as the pay gap between the CEO and non-CEO executives, and firm performance. For a sample of Chinese listed firms from 2005 to 2015, we find that the tournament incentives for non-CEO executives relate positively to firm performance. This relationship is weaker when non-CEO executives are from different age cohorts, whereas the tournament effect is enhanced when non-CEO executives are from the same age cohort. The negative moderation effect of age diversity is more pronounced in state firms and in the Northern China Plain cultural region. The negative moderation effect disappears in firms with CEOs who have overseas experience. We reason that the peer pressure among the similar-aged non-CEO executives enhances the tournament competition and that age hierarchy reduces incentives for younger executives to compete. Our findings have important implications for firms not only in China, but also in countries and regions where seniority is highly valued when setting executive compensation and optimizing organizational structure. |
| Keywords: | Executive compensation; Tournament effect; Non-CEO executives; Age diversity; Seniority |
| JEL: | G30 J10 J33 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:bir:birmec:20-12&r=all |
| By: | Tung, Dao Duy (Tay Do University) |
| Abstract: | Over the past few years, Vietnam has been on the path of developing Cross Border Electronic Commerce (CBEC). E-business platform enterprise growth is scalabling transactions. CBEC’s economic effects are observed under four aspects as (1) Resource aggregate effect: cost effi-ciency, trading between producers and consumers is realized by E-business platforms; (2) Net-work effect: the positive correlation of platforms’ product or services with the quantity of con-sumers in increasing; (3) Innovation effect: startup costs for innovation (promotions, business models, new-coming products and services) have been recovered with E-business platforms. (4) The value of brand effect. |
| Date: | 2020–05–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:w2db8&r=all |
| By: | Maurizio Iacopetta (Sciences Po-OFCE and SKEMA Business School); Raoul Minetti (Michigan State University); Pierluigi Murro (LUISS University) |
| Abstract: | New firms are often based on ideas that the founders developed while working for incumbent firms. We study the macroeconomic effects of spinoffs through a growth model of product variety expansion, driven by firm entry, and product innovation. Spinoffs stem from conflicts of interest between incumbent firms' shareholders and employees. The analysis suggests that incumbents invest more in product innovation when knowledge protection is stronger. An inverted-U shape relationship emerges, however, between the intensity of spinoff activities and the strength of the rule of law. A calibration experiment indicates that, with a good rule of law, loosening knowledge protection by 53 reduces product innovation by one fifth in the short run and one seventh in the long run, but boosts the spinoff rate by one tenth and one sixth in the short and long run, respectively. Nevertheless, per capita income growth drops and welfare deteriorates. The trade-offs are broadly consistent with evidence from Italian firms. |
| Keywords: | Corporate Governance, Endogenous Growth, Spinoffs. |
| JEL: | E44 O40 G30 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:2013&r=all |
| By: | OECD |
| Abstract: | This paper explores the linkages between regional strategies for the social economy and regional development in four EU countries: France, Spain, Sweden and Poland. It provides a comparative perspective of regional strategies for the social economy (Section 1), based on i) the level of recognition of the social economy itself, ii) multi-level governance arrangements, iii) the regional strategic priority given to the social economy and iv) financial resources available for regional strategies. It gives examples of strategies for the social economy in selected regions in the four countries to document the diversity of practice (Section 2). It outlines conclusions and policy orientations (Section 3) to help reinforce the positive impact of regional strategies for the social economy on regional development. |
| Keywords: | regional development, regional strategies, social economy, social enterprises, social entrepreneurship |
| JEL: | L3 L31 L38 O18 O35 P13 |
| Date: | 2020–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2020/03-en&r=all |
| By: | Dorotea Milas (Zagreb School of Business); Marija Bari?evi? (Zagreb School of Business); Luk?a Luli? (Zagreb School of Business) |
| Abstract: | The concepts of business ethics ? ethical behaviour and corporate social responsibility ? have recently become more prominent both in developed and in developing countries. Both concepts may yield considerable benefits in business and have been shown to be extremely important for the growth and success of an organisation. The notion that apart from making profit companies implement corporate social responsibility in their business has shown to be a successful component that has ensured positive relations with employees and the community, as well as a more positive public image, greater customer loyalty, and healthier community relations. This paper deals with the concepts of business ethics and social responsibility, demonstrating the importance of both concepts for the growth and success of a company. Business ethics leads to positive relations with employees and the community, and organizations that adopt the concept are considered reliable and socially responsible partners. Social responsibility is the duty of an organization to maximize the positive and minimize the negative impacts it has on society. The adoption of CSR practices should not only refer to profit increase ? it should also aim to establish responsible business as a moral and ethical imperative which will at the same time add significant value to the organization and help it to maintain its competitive advantage in a world abundant with challenges. |
| Keywords: | business ethics, corporate social responsibility, duty, responsibility, ethical behaviour, business |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:10012558&r=all |
| By: | Sami Kajalo (Aalto University School of Business) |
| Abstract: | The present paper focuses on creating an organizing framework that would integrate the two distinct research domains of Market Orientation and Corporate Social Responsibility. Market Orientation (MO) consists of intelligence gathering, dissemination and management?s efforts to implement this new market knowledge for firm?s benefit. Although there is evidence of benefits of MO, recent research also suggests that MO itself does not anymore provide superior performance. Instead MO has become a ?cost of competing?. On the other hand, there is evidence that it is difficult (or even impossible) to achieve high performance without MO. Corporate Social Responsibility (CSR) represents companies? business practices that are intended to improve societal well-being. CSR has taken its place as a key component of firms? overall strategy and its importance is represented in annual reports and corporate websites. Moreover, recent recent suggests that CSR has a small positive impact on companies? financial performance and even a positive effect on shareholder wealth. There are only few previous attemps to focus on the interplay of MO and CSR. The present paper focuses on this research gap and provides an organizing framework to facilitate further research on the interplay of MO and CSR. |
| Keywords: | Market Orientation, Corporate Social Responsibility, Marketing |
| JEL: | M31 M14 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:10012405&r=all |
| By: | World Bank Group |
| Keywords: | Agriculture - Agricultural Sector Economics Agriculture - Agricultural Trade Agriculture - Crops & Crop Management Systems International Economics and Trade - Export Competitiveness Transport - Transport and Trade Logistics |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:33703&r=all |