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on Economics of Strategic Management |
| By: | Nurulhasanah Abdul Rahman (School of Management, Universiti Sains Malaysia, 11800 Penang, Malaysia Author-2-Name: Daisy Mui Hung Kee Author-2-Workplace-Name: School of Distance Education, Universiti Sains Malaysia, 11800 Penang, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - Despite extensive research on Entrepreneurial Orientation (EO) and innovation and performance, there are still limited resources on how these areas benefit Small and Medium Enterprises (SMEs). There are various financial aids and support services that are provided to SMEs. Despite this, SMEs still tend to perform quite low. This paper aims to identify the link between EO and SME performance using innovation as a mediator. Methodology/Technique - To achieve this objective, a quantitative approach is used. Questionnaires are collected from 285 SMEs in Peninsular Malaysia. Structural Equation Modelling (SEM) analysis is applied to test the hypotheses on the direct and indirect relationships between EO and SME performance through innovation. Finding - The findings of this study show that only two aspects of EO (innovativeness and proactiveness) have significant relationships with SME performance. Interestingly, all dimensions of EO have a direct impact on innovation. Further, innovation has a direct effect on SME performance and is a significant mediator between EO and SME performance. Novelty - These findings indicate that EO is a strong predictor of Innovation and SME performance. The discussion provided in this paper strengthens the body of knowledge on Entrepreneurship and acts as a benchmark for future studies on EO, Innovation and SME Performance. Type of Paper - Empirical. |
| Keywords: | Malaysia; Entrepreneurial Orientation; Innovation; SME Performance. |
| JEL: | M13 M19 L25 |
| Date: | 2020–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr558&r=all |
| By: | Marco Bettiol (DSEA - University of Padova); Mauro Capestro (DSEA - University of Padova); Eleonora Di Maria (DSEA - University of Padova); Stefano Micelli (Department of Management - Ca’ Foscari University) |
| Abstract: | The debate on the adoption of industry 4.0 technologies focuses on the transformation of organizations and business opportunities towards a new industrial revolution, driven by a recent emerging technological scenario. Despite this growing discussion, little has been said on the relationship with the previous waves of digital technologies and specifically how Information and Communication Technologies (ICT) are related with the adoption of industry 4.0 technologies. The paper explores the relationship between the antecedents driving industry 4.0 investments, examining how the firm’s ICT endowment relates to the industry 4.0 technologies adopted, in terms of intensity as well as of types of ICT associated with specific types of industry 4.0 technologies, and the role of strategic motivations on the investment 4.0. Based on unique data gathered in 2017 on a sample of 1,229 Italian firms, results on 165 adopters show the positive relation between the adoption of ICT and industry 4.0 technologies as well as between specific groups of ICT technologies – that we identify into three ones: web ICT, management ICT, and manufacturing ICT – and groups of industry 4.0 ones (data-driven tech 4.0, production tech 4.0, and customization tech 4.0). Results highlight the strong connection between firm experience with prior digital investments and the consequent Industry 4.0 adoption. Moreover, there is a relation between specific clusters of ICT technologies – Web ICT, Operation ICT, and Management ICT – and industry 4.0 technologies. Among the strategic motivations driving industry 4.0 the relevant one is product variety, consistently with the selective technologies chosen, taking into account the ICT path of adoption. On the contrary efficiency is negatively related to the adoption of industry 4.0 technologies, stressing the more important role of market-driven variables for technological investments. A second relevant result is related to the role of ICT-related competences firms have to internally develop in order to adopt industry 4.0 technologies, beyond size. For firms – also SMEs – it becomes more important in the context of “Industry 4.0†to rely on internal resources (know-how connected to the ICT domain) that can positively enact the selection and exploitation of industry 4.0 technologies. As a policy implication, pushing the adoption of industry 4.0 technologies in firms with limited ICT resources should be coupled with actions supporting the development of such know-how and broader ICT competences as the roots for industry 4.0. |
| Keywords: | digital technologies, ICT, strategy, industry 4.0, fourth industrial revolution |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0253&r=all |
| By: | Jean Pierre Huiban (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique); Antonio Musolesi (Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement) |
| Abstract: | We investigate the impact of pollution abatement effort on the economic performances by exploiting a rich panel data set composed of French food industry firms, observed over the 1993-2007 period. We test the Porter hypothesis, assuming that pollution abatement effort has a positive effect on the firm performance by triggering innovation. This is done by estimating a production function augmented with knowledge capital, such a capital being produced by both pollution abatement and R&D investments. Using different estimation methods, including structural semi-parametric ones, we first show than the so-called Porter assumption cannot be rejected when focusing on the full population of French food industry firms since the estimations indicate a positive and significant (though rather small) contribution of the pollution abatement capital to the firm productivity. Then, we consider a more restrictive sample of (potentially) innovative firms, actually engaging both RD and pollution abatement investments. Henceforth, the contribution of pollution abatement capital becomes not significant in regard to the R&D's one. These results do not support the sometimes invoked hypothesis according to which the positive effect of pollution abatements efforts on firms' performances is linked to the induced increased innovation. At the same time, the standard hypothesis, assuming that pollution abatement effort significantly decreases the firm performance is always rejected. |
| Keywords: | productivity, environmental investment, R&D, knowledge capital, food industry |
| Date: | 2020–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02804599&r=all |
| By: | Kuznetsov, Dmitriy (Кузнецов, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | In the presented paper cross-sectional and time-series patterns of the formation of the export product scope of Russian manufacturing enterprises are studied. The main conclusions of the analysis can be formulated as follows. Firstly, in the detailed data of Russian exports indicate that the relatively greater importance of the specific competencies of firms (specific productivity) compared to the efficiency of managing business processes in an enterprise (company-wide productivity). Secondly, there is a dependence of the Russian firms export product scope and its concentration on the various characteristics of importing countries, reflecting, among other things, the proximity of the market and the local level of competition. It is further demonstrated that the shocks of competition levels in export markets translate into firm productivity shocks through redistribution of resources within firms. These shocks can make a significant contribution to the dynamics of productivity of manufacturing enterprises. Thirdly, the most successful products of the company are products of high quality. Fourth, the formation of the export product scope of Russian firms takes place mainly in the direction of goods close to the current basket of export firms in terms of labor structure, as well as the structure of intermediate consumption. To a somewhat lesser extent, the “export proximity” of goods is associated with vertical production ties between sectors. In turn, the proximity of the product to the comparative advantages of the region increases the likelihood of exporting this product and is positively related to the volume of exported goods. |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:032036&r=all |
| By: | Anelli, Massimo (Bocconi University); Basso, Gaetano (University of California, Davis); Ippedico, Giuseppe (University of California, Davis); Peri, Giovanni (University of California, Davis) |
| Abstract: | Emigration of young, motivated individuals may deprive countries-of-origin of entrepreneurs. We isolate exogenous variation in a large emigration wave from Italy between 2008 and 2015 by interacting diaspora networks with economic pull factors in destination countries, and find that larger emigration rates reduced firm creation and innovative start-ups. We estimate that for every 100 emigrants, 26 fewer firms were created. An accounting exercise shows that 37 percent of the effect was due to the disproportionate loss of young people. The remaining effect was due to selection into emigration of highly entrepreneurial individuals, as well as negative spillovers on firm creation. |
| Keywords: | emigration, demography, brain drain, entrepreneurship, innovation, EU integration |
| JEL: | J61 H7 O3 M13 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13390&r=all |
| By: | Serguey Braguinsky; Atsushi Ohyama; Tetsuji Okazaki; Chad Syverson |
| Abstract: | We explore how firms grow by adding products. In contrast to most earlier work on the topic, our conceptual and empirical framework allows for separate treatment of product innovation (vertical differentiation) and diversification (horizontal differentiation). The market context is Japan’s cotton spinning industry at the turn of the last century. We find that introducing innovative products outside of the previously feasible is a key to firm growth. It provides opportunities to capture high-end vertically differentiated product markets when successful while also facilitating the firm’s growth through horizontal expansion in product space. However, this process involves a high degree of uncertainty, so firms tend to introduce innovative products on experimental basis. In long-term outcomes, the right tail of the firm size distribution becomes dominated by firms that were able to expand in both directions: moving first into technologically challenging vertically differentiated products, and then later applying their newly acquired high-end technical competence to horizontal expansion of their product portfolios. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1091&r=all |
| By: | Amat Adarov (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The study analyses the relationships between capital dynamics, productivity, global value chains and foreign direct investment using panel data techniques. Among other results, we confirm the high importance of tangible and intangible ICT capital for productivity and GVC integration. We examine the extent of underinvestment in ICT in the EU relative to other major economies and identify bottlenecks for efficient capital allocation. The sluggish economic performance of the EU in the post-crisis period has been further challenged by the COVID-19 outbreak. Consolidating policy efforts to facilitate ICT investment, tackling the barriers to ICT adoption and broad-based digitalisation are critical for the EU in order to maintain a competitive edge and unlock new growth opportunities in the new normal. |
| Keywords: | Productivity, digitalisation, ICT capital, FDI, global value chains, barriers to ICT investments, intangible capital |
| JEL: | F14 F15 F21 E22 O47 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:446&r=all |
| By: | MOTOHASHI Kazuyuki; ZHU Chen |
| Abstract: | Internet platforms in China (BAT: Baidu, Alibaba, Tencent) are receiving growing attention in terms of their technological competitiveness compared to US players (GAFA: Google, Amazon, Facebook, Apple). Using text information of patent information in China and the US, this study analyzes Baidu's technological catching up process with Google. Based on document-level embedding results, we conduct cluster analysis and generate new indicators of technology cumulativeness and impact based on neighbor patents in the content space. The results reveal that Baidu follows a trend of US rather than Chinese technology which suggests Baidu is aggressively seeking to catch up with US players in the process of its technological development. At the same time, the impact index of Baidu patents increases over time, reflecting its upgrading of technological competitiveness. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:20045&r=all |
| By: | Nazaria Solferino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | We aim to investigate the drivers and barriers of eco-innovations in Calabria and the role of intermediaries to enhance in the organizations the concept of sustainable development. We analyse three case studies of environmentally sustainable companies. Our analysis shows that several critical issues need to be addressed by national and regional policies to remove relevant barriers to these investments. The interwied companies identified these difficulties mainly in the problems to access credits and get funds alongside to the excess of complicate beaurocracy. On the other side, the attention foto the environmental issues and the opportunity to promote products and services with a lower environmental impact on the market, in order to obtain a competitive advantage and possibly increase the turnover and customer portfolio, represents the most pushing factor for the adoption of radical eco-innovations. Nevertheless, intermediaries play an important role as these companies have in common that hey had the possibility to benefit from the expertises and competences of a provider of services. |
| Keywords: | Eco-innovations, Environmental sustainability, Case study method |
| JEL: | O31 O33 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:202004&r=all |
| By: | Ralph Siebert; Zhili Tian |
| Abstract: | Pharmaceutical firms spend increasing amounts in mergers and acquisitions (M&As), which raises the question of whether sufficient investment is left after mergers to further develop firms’ internal drug development capability. We evaluate the effects of M&As on firms’ post-merger R&D investments and drug development capabilities across drug development phases. This study builds on a novel database that enables us to evaluate the post-merger effect at the research project level and across development phases. A further novel feature of the study is allowing measurement errors to enter firms’ R&D investments. Our study adopts a structural equation modeling approach, which is appropriate for evaluating a system of equations through which we examine the direct and indirect merger effects on R&D capabilities across development phases. We find that M&As have a strong effect on firms’ drug development at the late development phases through economies of scope. At the early development phases, M&As serve to replenish firms’ drug pipelines. The study shows that M&As have a direct and negative effect on firms’ R&D investments. However, the overall effect on R&D investments accounting for enhanced post-merger R&D capabilities and product approvals turns out to be positive. M&As can be an effective instrument for firms to acquire drug development knowledge and technology in late stages of the development process (Phases 3 clinical testing and regulatory filing). Our study provide empirical evidence that investments in M&As in late stage of drug development help firms’ growth and increase firms revenue. |
| Keywords: | drug development phases, dynamics, innovation management, merger and acquisition, pharmaceutical drug development, R&D capabilities |
| JEL: | L11 L13 L52 O31 O32 O38 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8303&r=all |