nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒09‒28
eleven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Global Competition, Worker Retention, and Immigrant Employment in Manufacturing SMEs By HASHIMOTO Yuki
  2. Data: A collaborative ? By Jean-Sebastien Lacam
  3. Factors Influencing Resilience of Micro Small and Medium Entrepreneur (MSME) during Covid 19 Outbreak in South Sulawesi Province Indonesia By Hidayat, Muhammad; Latief, Fitriani; Nianti, Dara Ayu; Bahasoan, Shandra; Widiawati, Andi
  4. ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria By Alhassan A. Karakara; Evans S. Osabuohien
  5. Entrepreneurial Orientation of the Companies in Bosnia and Herzegovina: The Importance of Contextual Factors By Veselinović, Ljiljan; Kulenović, Mirza; Šunje, Aziz
  6. Innovation, Firm Survival and Productivity: The State of the Art By Ugur, Mehmet; Vivarelli, Marco
  7. Quadratic Costs, Innovation and Welfare: The Role of Technology By Sugata Marjit; Suryaprakash Mishra
  8. Entrepreneurial Recovery from COVID-19: Decentralization, Democratization, Demand, Distribution, and Demography By Naudé, Wim
  9. Declining Business Dynamism among Our Best Opportunities: The Role of the Burden of Knowledge By Thomas Astebro; Serguey Braguinsky; Yuheng Ding
  10. The Geography of New Technologies By Nicholas Bloom; Tarek A. Hassan; Aakash Kalyani; Josh Lerner; Ahmed Tahoun
  11. Understanding conceptual impact of scientific knowledge on policy: The role of policy-making conditions By Edler, Jakob; Karaulova, Maria; Barker, Katharine

  1. By: HASHIMOTO Yuki
    Abstract: By focusing on Japanese manufacturing small and medium-sized enterprises (SMEs) that were affected by global competition in the 1990s, we examine the interplay between global competition, immigrant employment, and research and development (R&D) investment in these organizations. To do this, we use firm-level survey data including information on the influence of past globalization, current challenges, and future plans for migrant hiring and R&D investment, showing the process by which firms move toward labor-intensive production as a result of import competition. Our major finding is that manufacturing SMEs facing fierce global competition are more likely to hire immigrant workers and invest less in R&D. In this process, the current poor retention of native young workers plays a substantial role as a channel between past globalization and future immigrant employment. On the other hand, intensifying global competition is directly linked to a decrease in future R&D investment. Neither the shortage of production workers nor the high growth rate in recent years are important determinants of subsequent immigrant hiring or R&D investment.
    Date: 2020–08
  2. By: Jean-Sebastien Lacam (ESSCA Research Lab - ESSCA - Groupe ESSCA, CleRMa - Clermont Recherche Management - Clermont Auvergne - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne)
    Abstract: This study examines the interdependence of relational strategies and data management policies of SMEs during product innovation. The type of data management developed by a small firm to support its innovation efforts requires it to engage in competitive, vertical cooperative or coopetitive relationships. An empirical study of 109 leaders of French high-tech SMEs provides a descriptive and explanatory analysis of this question. This empirical study combines three theoretical dimensions: the characteristics of a Big Data policy, of an innovation product and of a relational strategy. We enrich the existing knowledge concerning the exploitation of data by SMEs by presenting a typology of their data strategies. We also find that Big data and Smart data policies are deployed by SMEs to support product innovation. Finally, we show that SMEs implement data management individually to support radical product innovation but will collaborate to support incremental product innovation. The nature of the data innovation guides the relational context of the SME. This study deepens the interdependence of data management and relational strategies among SMEs.
    Keywords: Data management,product innovation,competition,vertical cooperation,coopetition,SMEs,Big data challenges
    Date: 2020–05
  3. By: Hidayat, Muhammad (STIE Nobel Indonesia); Latief, Fitriani; Nianti, Dara Ayu; Bahasoan, Shandra; Widiawati, Andi
    Abstract: Aim: To find out factors influencing resilience of Micro Small and Medium Entrepreneur MSME entrepreneurs during the worlwide spread of COVID-19 pandemic, this study aims at empirically examine the influence of entrepreneurial personality in utilizing technology and government support for business resilience through crisis management as an intervening variable. Research design, data and method: This research is a quantitative study analyzing sample of 97 small and medium enterprises actors in South Sulawesi, Indonesia, chosen by using purposive sampling. The main data in this study is results of questionnaires distributed to respondents which is analyzed by using Partial Least Square (PLS analysis). Results and Findings: This study proves a positive and significant relationship between entrepreneurship personlity and crisis management. There is no significant relationship between utilizing of technology toward crisis management. There is a positive and significant relationship between government support toward crisis management. This research also proves a positive and significant influence between crisis management on business resilience.
    Date: 2020–06–11
  4. 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
  5. By: Veselinović, Ljiljan; Kulenović, Mirza; Šunje, Aziz
    Abstract: Entrepreneurial orientation (EO) represents a firm-level construct that captures innovativeness, proactiveness, and risk-taking of the existing companies. The main focus of this paper is to present the EO of 477 companies in Bosnia and Herzegovina and to compare EO between companies operating within different contextual factors. We used descriptive statistics and statistical testing to draw conclusions. Our paper presents the mean values of entrepreneurial orientation for each NACE industry category. In addition, our results confirm that there are statistically significant differences in entrepreneurial orientation between (a) the companies operating in a more competitive environment and the companies operating in a less competitive environment; (b) the companies with acquired ISO certificates and high level of TQM practices and the companies without ISO certificates and low level of TQM practices; (c) the companies operating in predominantly export-oriented markets and the companies operating in predominantly local markets; and finally (d) the companies located in Federation of Bosnia and Herzegovina and the companies located in Republic of Srpska. However, there are no statistically significant differences in entrepreneurial orientation between the older companies (older than two, five and ten years) and younger companies; nor between companies of different sizes. By analyzing organizational contextual factors, this paper identifies key variables that may play an important role in designing more complex structural models. Additionally, this paper presents the current state of entrepreneurial orientation of existing companies in Bosnia and Herzegovina.
    Keywords: entrepreneurial orientation,contextual factors,firm behavior,entrepreneurship,Bosnia and Herzegovina
    JEL: L2
    Date: 2019
  6. By: Ugur, Mehmet (University of Greenwich); Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: We review the theoretical underpinnings and the empirical findings of the literature that investigates the effects of innovation on firm survival and firm productivity, which constitute the two main channels through which innovation drives growth. We aim to contribute to the ongoing debate along three paths. First, we discuss the extent to which the theoretical perspectives that inform the empirical models allow for heterogeneity in the effects of R&D/innovation on firm survival and productivity. Secondly, we draw attention to recent modeling and estimation effort that reveals novel sources of heterogeneity, non-linearity and volatility in the gains from R&D/innovation, particularly in terms of its effects on firm survival and productivity. Our third contribution is to link our findings with those from prior reviews to demonstrate how the state of the art is evolving and with what implications for future research.
    Keywords: innovation, R&D, survival, productivity
    JEL: O30 O33
    Date: 2020–09
  7. By: Sugata Marjit; Suryaprakash Mishra
    Abstract: In a Cournot oligopoly set up with constant marginal cost and linear demand, innovation is rewarding. In this paper we work with a Cournot oligopoly framework with increasing marginal cost and linear demand and show that innovation may not be rewarding. We endogenize the success probability of R&D and its response to the intensity of competition and specifically show that if the technology is already advanced and competition intensifies then firms wouldn’t innovate. The dynamic interaction we attempt to capture and explain is the one of technology with the possibility of innovation via the intensity of competition. We finally conclude that the intensity of competition and welfare may not have the usual (direct) relationship and suggest ‘monitored competition’, wherein initially (at initial stages of innovation) competition is encouraged and then (at later stages of innovation) curtailed, to encourage innovation and thus welfare, as a suitable policy measure. Thus, entry should be restricted in order to foster innovation while innovation itself encourages entry.
    Keywords: quadratic costs, innovation, welfare, technology
    JEL: L11 L13 L21
    Date: 2020
  8. By: Naudé, Wim
    Abstract: Entrepreneurship, as re ected in the start-up of new firms, the growth and market exit of existing firms, and the ow of venture capital, has been severely curtailed by the lockdown and social distancing measures taken by governments around the world in the fight against COVID-19. This paper, after documenting preliminary evidence on these declines, argues that there is a strong possibility that the unintended damage to entrepreneurship, innovation and growth could be persistent. This requires that short-term economic and business rescue packages be complimented by measures aimed at the longer-term, and that these be based on at least five principles. These 5 principles (5Ds) refer to decentralization, democratization, demand, distribution and demography.
    Keywords: Entrepreneurship,innovation,COVID-19,public policy,economic growth,development
    JEL: I18 L26 L53 M13
    Date: 2020
  9. By: Thomas Astebro; Serguey Braguinsky; Yuheng Ding
    Abstract: We document that since 1997, the rate of startup formation has precipitously declined for firms operated by U.S. PhD recipients in science and engineering. These are supposedly the source of some of our best new technological and business opportunities. We link this to an increasing burden of knowledge by documenting a long-term earnings decline by founders, especially less experienced founders, greater work complexity in R&D, and more administrative work. The results suggest that established firms are better positioned to cope with the increasing burden of knowledge, in particular through the design of knowledge hierarchies, explaining why new firm entry has declined for high-tech, high-opportunity startups.
    JEL: J24 J3 O3
    Date: 2020–09
  10. By: Nicholas Bloom (Stanford University); Tarek A. Hassan (Boston University); Aakash Kalyani (Boston University); Josh Lerner (London Business School); Ahmed Tahoun (Harvard University)
    Abstract: We identify novel technologies using textual analysis of earnings conference calls, newspapers, announcements, and patents. Our approach enables us to document the rollout of 20 new technologies across firms and labor markets in the U.S. Four stylized facts emerge from our data. First, as technologies develop, the number of new positions related to them grows, but the average education requirements and wage levels of the positions drop. Second, as technologies develop, their employment impact diffuses across the country: initially, technologies are concentrated in local hubs, but over time, their adoption diffuses geographically. Third, despite this diffusion, the initial hubs retain a disproportionate share of employment in the technology, particularly at the high-skill end of the spectrum. Finally, technology hubs are more likely to arise in areas with universities and high skilled labor pools.
    Keywords: Technology, Geography, Employment, Innovation, R and D
    JEL: O31 O32
    Date: 2020–06–15
  11. By: Edler, Jakob; Karaulova, Maria; Barker, Katharine
    Abstract: This paper presents a framework to understand the impact of scientific knowledge on the policy-making process, focusing on the conceptual impact. We note the continuing dissatisfaction with the quality and effects of science-policy interactions in both theory and practice. We critique the current literature's emphasis on the role and the activities of scientists to generate policy impact, neglecting the conditions and roles of "user" pol-icy-making organisations. The framework offered in the paper addresses these cri-tiques by developing an argument about the essential role of institutional "user side" conditions for scientific knowledge to achieve impact. The framework is informed by the reflexive institutionalist and the neo-institutionalist theoretical approaches. The main contribution of the framework is that it unpicks the institutional conditions within policy-making organisations that influence the uptake of scientific knowledge and provides an operationalisation to analyse them. The wider relevance of the paper is in moving the focus from the activities of scientists and the incentive structure in scientific organisa-tions to the policy user side.
    Date: 2020

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