nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒08‒31
twelve papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Business Ecosystems Policy in Stra.Tech.Man Terms: The Case of the Eastern Macedonia and Thrace Region By Vlados, Charis; Chatzinikolaou, Dimos
  2. Partnership for inclusive growth: Can linkages with large firms spur the growth of SMEs in Tanzania? By Josaphat Kweka; Fadhili Sooi
  3. University-Industry-Government Linkages and the Helix Theory on the Fourth Industrial Revolution By Chatzinikolaou, Dimos; Vlados, Charis
  4. Does Emigration Drain Entrepreneurs? By Massimo Anelli; Gætano Basso; Giuseppe Ippedico; Giovanni Peri
  5. Stra.Tech.Man (Strategy-Technology-Management): Theory and Concepts By Vlados, Charis
  6. Science, technology, innovation, theory and evidence: the new institutionality in Colombia By Alexander Cotte Poveda; Clara Inés Pardo
  7. Why Do Japanese MNEs Enter and Exit Foreign Markets? By Ivan DESEATNICOV; FUJII Daisuke; Konstantin KUCHERYAVYY; SAITO Yukiko
  8. Firm’s innovation strategies and employment: new evidence from Uruguay By Carlos Bianchi; Hugo Laguna
  9. Challenges of Industrial Policy to Enhance Competitiveness By Vlados, Charis; Chatzinikolaou, Dimos
  10. Porter’s Diamond Approaches and the Competitiveness Web By Vlados, Charis
  11. Entrepreneurship, Human Capacity Development and Youth Employment Generation: A Study of Selected Sub-Saharan Africa Countries By Oyolola, Feyisayo; Otonne, Adewumi
  12. R&D Spillovers throught RJV Cooperation By Albert Banal-Estañol; Tomaso Duso; Jo Seldeslachts; Florian Szücs

  1. By: Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics)
    Abstract: In the current state of globalization’s restructuring, numerous studies are examining policies to strengthen local entrepreneurship and productive systems, in terms of clusters and ecosystems. In this article, we apply and extend the Stra.Tech.Man approach to entrepreneurial dynamics as an alternative base of articulating a business ecosystems development policy. By studying the case of the Eastern Macedonia and Thrace region, one of the less developed regions in Greece, we find that there are possibilities for using the Stra.Tech.Man approach to imprint, record and, by extension, give the possibility of strengthening the strategic, technological, and managerial capacity of the “cells” of specific business ecosystems. In this context, the aim of this study is to outline a new possible direction for policy planning and implementation, in order to expand the local business ecosystems’ innovative and competitive competence, especially in the context of a less developed region, by the usage of the ILDI (Institutes of Local Development and Innovation) mechanism. In this direction, we present an “introductory” and qualitative field research we carried out in the region of Eastern Macedonia and Thrace, on a sample of SMEs, in diagnostic terms of Stra.Tech.Man physiology.
    Keywords: business ecosystems policy; clusters; Stra.Tech.Man physiology; small and medium entrepreneurship; Eastern Macedonia and Thrace region; globalization dynamics
    JEL: L26 L50 R58
    Date: 2019–08–26
  2. By: Josaphat Kweka; Fadhili Sooi
    Abstract: A recent strand of literature on small and medium enterprise (SME) development identifies linkages with large firms as some of the enablers of development and competitiveness. However, there is a dearth of empirical studies on the topic. In this study, we assess the extent and determinants of linkages between SMEs and large firms in Tanzania and to what degree the linkage is an important driver of SME performance.
    Keywords: SMEs, firm linkages, firms, SME growth
    Date: 2020
  3. By: Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics)
    Abstract: In the current era of the fourth industrial revolution, the creation of new knowledge and the production and diffusion of innovation constitute the most critical dimensions of development and under-development. In this direction, for over two decades, a useful conceptual contribution is the triple-helix theory: the interconnection of universities, firms, and governmental policies. The aim of this study is through a periodization of the helix theory literature to understand how this approach is related to new perceptions of innovation and to describe its possible future analytical perspectives. Within the present phase of the fourth industrial revolution, the institutional dimensions of a socioeconomic system (including universities, industries, and government policies) are following complex and co-evolving development trajectories and we must perceive them in their specific historical and spatial configurations.
    Keywords: helix theory; socioeconomic development; the fourth industrial revolution; university-industry-government linkages; local development
    JEL: O30
    Date: 2019–05–30
  4. By: Massimo Anelli; Gætano Basso; Giuseppe Ippedico; Giovanni Peri
    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 H70 O30 M13
    Date: 2020
  5. By: Vlados, Charis (Democritus University of Thrace, Department of Economics)
    Abstract: This volume presents some fundamental elements to the Stra.Tech.Man approach, which the author of this book tried to develop during the last few years. The main challenge of the Stra.Tech.Man approach is to synthesize interpretatively the analytical spheres of strategy, technology, and management, upon the effort of any socioeconomic organization to innovate, survive, and develop. The following chapters search to define and apply in particular the multiple applications of the Stra.Tech.Man concept. They use this approach as an analytical mechanism to perceive in the context of the current transformative phase of globalization the aspects of competitiveness, innovation, and change management. This volume includes the following chapters that apply the aspects of the Stra.Tech.Man analysis: I. The Greek firms into globalization: The Stra.Tech.Man approach II. Innovation in Stra.Tech.Man terms III. Innovation in economics and management: The Stra.Tech.Man synthesis IV. Change management and innovation in Stra.Tech.Man terms V. Fostering micro and meso competitiveness in Stra.Tech.Man terms In conclusion, the “Stra.Tech.Man approach” attempts to define a unifying and evolutionary field of research, by initiating its exploration on the inner “physiology” of the socioeconomic organization. This approach extends analytically from the micro to the meso- and macro- level of socioeconomic system dynamics and vice versa.
    JEL: L19 O39
    Date: 2019–07–01
  6. By: Alexander Cotte Poveda; Clara Inés Pardo
    Abstract: It is widely recognized that the design and application of suitable and robust science, technology and innovation (STI) policies and appropriate STI institutions promote development, economic growth and competitiveness in the long run. This paper analyses the dynamics of STI in Colombia over the 1995–2019 period to determine its relationship with its most important determinants and its collateral relationship with economic growth as an input afecting diferent issues; this work takes into account the creation of the new ministry of science, technology and innovation (MSTI) and uses diferent time series techniques. According to the analysis, a positive relationship exists between investments in research and development, STI activities, and the independence and transparency of STI management by the new MSTI, which could generate higher productivity, technological change, economic growth and development. The results of the models also demonstrate the longrun relationship and short-run dynamics related to STI investment and research results and the importance of transparency and independence. It is important to establish adequate STI governance and allow new ministries to play an important role to achieve a society based on knowledge that produces relevant research, technology and innovation based on the needs and resources of the country
    JEL: O10 O30 O38
    Date: 2020–08–21
  7. By: Ivan DESEATNICOV; FUJII Daisuke; Konstantin KUCHERYAVYY; SAITO Yukiko
    Abstract: This paper examines the FDI entry and exit behavior of Japanese multinational enterprises (MNEs) in foreign markets using firm-level panel data for the period of 1995-2015. We construct "sales verticalness" and "purchase verticalness" for each country, which is a novel index to measure the degree of connection with Japan in terms of overseas affiliate sales and procurement and present several stylized facts. Unlike exporter dynamics, the exit rates of FDI are much lower, but increase with market-specific age, implying larger sunk costs pertaining to FDI. At the country level, the exit rates of FDI increase with distance whereas entry rates show no correlation. Sales verticalness declines with distance exhibiting gravity, while purchase verticalness does not. Probit regression analysis of firm entry and exit of FDI reveals that a firm's past experience of exporting raises the probability of FDI entry and lowers the probability of exit in the region implying that learning by exporting reduces the uncertainty entailed in FDI. Sales verticalness promotes entry and lowers exit propensity after controlling for country characteristics such as GDP and distance. In contrast, purchase verticalness discourages entry and raises exit propensity.
    Date: 2020–05
  8. By: Carlos Bianchi (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Hugo Laguna (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración)
    Abstract: A large and rich body of literature has shown that the relationship between innovation and employment is complex and dynamic in nature. From a firm’s level analysis, recent researches have shown heterogeneous empirical patterns for developed and developing countries. This paper contributes by inquiry in the role of innovation strategies as determinants of the firm’s employment growth in a Latin American small middle-income country. Adapting econometric structural models currently in vogue, we discuss the effects of three innovation strategies (Make, Buy, Make&Buy) on the firm’s workforce growth. In line with the literature, we identify a significant positive relation between product innovation associated with Make and Make&Buy strategies, however, on the contrary to most recent research we find a positive and significant effects of process innovation associated to Buy strategies. Considering technological, sectoral and firm characteristics, our findings show a clear positive effect of any innovation strategy in the growth of the firm’s workforce. Meanwhile, no innovative strategies negatively affect workforce growth. Our findings contribute by deepening the understanding of the firm level determinants of employment in developing countries. We analyze our result in the light of a recent but extensive evidence on the relationship between innovation and employment at firm’s level in Uruguay. In particular, we discuss the traditional explanation on the firm’s technological behavior in Latin America, to discuss the effects on employment of integrative innovation strategies in Uruguay.
    Keywords: innovation strategies, employment, Latin America, Uruguay
    JEL: O33 D22 J23
    Date: 2020–05
  9. By: Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics)
    Abstract: This study explores how the traditional approaches of perceiving competitiveness and industrial policy could be enriched through a synthetic and evolutionary perspective. Competitiveness, in particular, tends to be studied in the literature in a relatively fragmented way, focusing either on the level of individual nations, or on the sectors of economic activity, or on the firm level. As a result, the evolutionary structures that define competitiveness in a unified socioeconomic way are usually bypassed. In this context, the traditional approach to industrial policy-making, which has as sole objective the strengthening of specific sectors, is inadequate to enhance the multilevel socioeconomic competitiveness in our days. Therefore, we suggest a comprehensive re-positioning of the concept of "organic competitiveness" in overall and synthetic socioeconomic terms (firms-sectors-socioeconomic systems) as useful for a redirected modern industrial policy.
    Keywords: Competitiveness; Industrial policy; Evolutionary link between competitiveness and industrial policy; Globalization
    JEL: B52 F63 L52
    Date: 2019–06
  10. By: Vlados, Charis (Democritus University of Thrace, Department of Economics)
    Abstract: This study explores Porter’s diamond of national competitiveness, by critically examining both the analytical virtues, the extensions, and the criticisms it has received over time. The aim is to analyse the stage in which the study of the diamond is currently in, about twenty years after the introduction of M. Porter, suggesting that its analytical contribution focusing on the industrial dynamics (meso-competitiveness) is still relevant even though significant analytical repositioning and improvements are possible. This research attempts to integrate a set of evolutionary socioeconomic dimensions into the “diamond’s” analytical perspective, ending up with a proposed “competitiveness web” conceptual model.
    Keywords: Porter‘s diamond; Porter‘s diamond extensions; Porter‘s diamond criticisms; Porter‘s diamond repositioning; competitiveness web
    JEL: L00 L20
    Date: 2019–09–11
  11. By: Oyolola, Feyisayo; Otonne, Adewumi
    Abstract: This study examined entrepreneurship, human capacity development and youth employment generation in 20 selected sub-Saharan African countries from 2005 to 2017. We employed the fixed effect Panel estimator on the secondary annual data sourced for the study. Findings from the study show that entrepreneurial activities and infrastructural development are important determinants of youth employment generation in the selected countries. The implication of these findings is that entrepreneurial activities and infrastructural development should be of concern to policy makers, and well meaning private individuals as they are observed to be significant determinant of youth employment. More importantly, individual are required to posses refined skills to match the quality of infrastructural facilities in the work place. Therefore, as a matter of policy implication these African Countries should ensure that the conclusion of this study is considered and implemented, and make considerable effort to reduce the large informal sector by putting in place laws and rules that will ensure that the activities of the self-employed people are recognized and accounted for on a large scale.
    Keywords: Human Capacity Development, Entrepreneurship and Youth Employment Generation
    JEL: J0
    Date: 2020–03–18
  12. By: Albert Banal-Estañol; Tomaso Duso; Jo Seldeslachts; Florian Szücs
    Abstract: We investigate the dimensions through which R&D spillovers are propagated across firms via cooperation through Research Joint Ventures (RJVs). We build on the framework developed by Bloom et al. (2013) which considers the opposing effects of technology spillovers and product market rivalry, and extend it to account for RJVs. Our main findings are that the adverse effects of product market rivalry are mitigated if firms cooperate in RJVs and that R&D spending is reduced among technologically close RJV participants.
    Keywords: Spillovers, R&D, research joint ventures, market value, patents
    JEL: L24 L44 K21 O32
    Date: 2020

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