nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒10‒26
eight papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Inter-industry FDI spillovers from foreign banks: Evidence in transition economies By Shusen Qi; Kent Hui; Steven Ongena
  2. Does trade participation limit domestic firms’ productivity gains from inward foreign direct investment? By Rene Belderbos; Vincent Van Roy; Leo Sleuwaegen
  3. Cyclical phenomena in technological change By Mario Coccia
  4. Dynamic financial landscapes and entrepreneurial cultures on new firm formation in different industries By Sin Tian Ho, Cynthia; Fili, Andreas
  5. Entrepreunial Orientation : Open Innovation Concept and Risk Management Measurement By mosse, Michelle veren
  6. Influence of entrepreneurial orientation: How open innovation and risk governance affects firm performance By Susanto, Stefanny Magdalena
  7. R&D and ICT in the Innovation Process of Japanese Innovative SMEs: Panel Data Analysis Based on Firm-Level Survey Data By Shigeno, Hidenori; Bunno, Teruyuki; Abu Taher, Sheikh; Tsuji, Masatsugu
  8. Multinational enterprises, service outsourcing and regional structural change By Ascani, Andrea; Iammarino, Simona

  1. By: Shusen Qi (Xiamen University - School of Management); Kent Hui (Xiamen University); Steven Ongena (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; KU Leuven; Centre for Economic Policy Research (CEPR))
    Abstract: Too little is known about the inter-industry spillovers from foreign direct investment (FDI) in services. We therefore study whether and how spillovers from FDI in the banking sector occurs. We access a sample of non-financial domestic firms in transition economies from Eastern Europe and Central Asia and find that the innovation pursued by domestic firms benefits from foreign bank penetration. This positive interindustry spillover surprisingly (and in contrast to conventional wisdom) does not seem to work through enhanced credit access, but rather through the improvement of the local market of fee-based banking services and through the transfer of knowledge to domestic firms in non-contractual interactions. These positive spillovers occur mainly for foreign banks that use relationship lending, domestic firms that do not export, and host countries that are less open to the global market.
    Keywords: FDI spillovers, knowledge transfer, foreign banks, services FDI, innovation
    Date: 2020–10
  2. By: Rene Belderbos; Vincent Van Roy; Leo Sleuwaegen
    Abstract: We examine to what extent domestic firms reap differential productivity gains from the presence of manufacturing affiliates of multinational firms in the home country (FDI spillovers), in the context of simultaneous participation in international trade through exporting and importing. FDI spillovers can occur within the industry (horizontal) and across industries due to client (forward) or supplier (backward) linkages of multinational firms, but the mechanisms underlying spillover effects may be attenuated if local firms are less reliant on inputs, clients, and competition in the domestic market. Fixed effects panel analyses on a sample of 4594 domestic Belgian firms during 2000-2007 reveal positive effects from horizontal, backward, and forward FDI spillovers on the productivity levels of domestic firms, as long as these firms do not engage in international trade. Horizontal spillovers from FDI are weaker for firms engaging in trade, while forward FDI spillovers do not benefit importing firms. Two-way traders benefit least from FDI spillovers. Forward and backward spillovers, are enhanced by human capital levels in local firms, while horizontal spillovers are reduced. The findings are broadly consistent with the notion that trade engagement and inward FDI can be substitutes in their effects on domestic firms’ productivity.
    Keywords: Foreign Direct Investment, Trade, Spillovers, Productivity
    Date: 2020–10–06
  3. By: Mario Coccia
    Abstract: The process of technological change can be regarded as a non-deterministic system governed by factors of a cumulative nature that generate cyclical phenomena. In this context, the process of growth and decline of technology can be systematically analyzed to design best practices for technology management of firms and innovation policy of nations. In this perspective, this study focuses on the evolution of technologies in the U.S. recorded music industry. Empirical findings reveal that technological change in the sector under study here has recurring fluctuations of technological innovations. In particular, cycle of technology has up wave phase longer than down wave phase in the process of evolution in markets before it is substituted by a new technology. Results suggest that radical innovation is one of the main sources of cyclical phenomena for industrial and corporate change, and as a consequence, economic and social change.
    Date: 2020–10
  4. By: Sin Tian Ho, Cynthia (Department of Real Estate and Construction Management, Royal Institute of Technology); Fili, Andreas (Department of Real Estate and Construction Management, Royal Institute of Technology)
    Abstract: In this paper, the effect of local entrepreneurial attitudes and proximity to bank branches on new firm formation in different industries is analysed using spatial Durbin models for a panel dataset of two years — 2007 and 2013 on the municipal level. Previous studies have shown that a high level of regional social legitimacy increases the demand for entrepreneurship due to perceivably better access to resources and the entrepreneur has also higher confidence in his ability to run a business in the area (Kibler, Kautonen, and Fink 2014). Furthermore, previous studies has also shown that the proximity of banks is important for local entrepreneurial activity (Agarwal and Hauswald 2010; Backman 2015; Backman and Wallin 2018; Ho and Berggren 2020). It is also noted that every entrepreneurial ecosystem in each municipality is unique and can be industry specific. The results from our spatial models show that an increase in the local public attitudes has positive significant effects on new firm formation in these following industries: manufacturing, construction and ‘financial and business services’ industries. Our results also show that when weighted mean distance to the nearest bank branch doubled, there is a 4.5% decrease in the total number of new firms formed. Weighted mean distance to the nearest bank branch has also been shown to lower new firm formation especially in two industries — ‘financial and business services’ and ‘education, health and others’.
    Keywords: Attitudes; Banks; New Firm Formation; Industries; Spatial Analysis
    JEL: C23 G21 L26
    Date: 2020–10–12
  5. By: mosse, Michelle veren
    Abstract: Entrepreneurial Orientation is an orientation part of entrepreneurship which consists of a process of making strategies and policies that form the basis of entrepreneurship (Rauch, Wiklund, Lumpkin & Frese). Entrepreneurial Orientation is an important thing as a basis for strength in an organization to improve the course of the entrepreneurial process and can lead to a pattern of business behavior that is applied if you want to maintain a business. There are 5 dimensions of entrepreneurial orientation, namely Innovation, fgProactiveness, Risktaking (Miller, 1983), Autonomy Orientation and Competitive Aggressiveness according to (Lumpkin & Dess, 1996). A company is said to be able to apply an entrepreneurial orientation if the company has characteristics such as first in market product innovation, has the courage to take risks, is proactive in making innovations.
    Date: 2020–10–01
  6. By: Susanto, Stefanny Magdalena
    Abstract: Entrepreneurial Orientation adalah proses pembuatan strategi yang mewakili kebijakan dan praktik sebagai dasar dalam bertindak dan mengambil keputusan dalam berwirausaha (Zhang, O'Kane, & Chen, 2020). Dalam penerapannya, Entrepreneurial Orientation sendiri selalu mengedepankan karakter open innovation dan pengelolaan risikonya dengan harapan dapat mengembangkan organisasi / perusahaan di semua tingkat khususnya terhadap unit bisnisnya (Hughes & Hodgkinson, 2020).
    Date: 2020–10–01
  7. By: Shigeno, Hidenori; Bunno, Teruyuki; Abu Taher, Sheikh; Tsuji, Masatsugu
    Abstract: This study seeks the elements of R&D and ICTs that play a role in the innovation process, and how these two are integrated with each other to achieve innovation. To achieve this goal, this paper uses panel data analysis. A fairly large number of panel data studies on innovation have appeared thus far, but the novelty of this paper lies in the authors' own firm-level survey data. The surveys were conducted in February 2012 and March 2017. The number of achieved innovations in the questionnaire is taken as an outcome variable. Explanatory variables related to R&D and ICTs were extracted from related questions by factor analysis. The fixed effect robust model with an instrumental variable (IV) is estimated, since the error term may contain heteroscedasticity. The significant variables are R&D autonomy (p
    Keywords: random effect,instrumental variable,R&D autonomy,R&D orientation,factor analysis
    Date: 2020
  8. By: Ascani, Andrea; Iammarino, Simona
    Abstract: This article offers a joint analysis of two phenomena characterising most advanced economies in recent decades: the rise of foreign ownership in manufacturing activities and the pervasiveness of the service economy. The analysis focuses on a specific intersectoral demand-side channel for structural change: the forward linkage established by foreign manufacturing multinational enterprises (MNEs) with service providers through outsourcing in the UK local labour markets. Descriptive evidence shows that service outsourcing by foreign manufacturing plants is notably larger than that of their domestic counterparts. On this basic premise, we estimate the local multiplier effect that foreign manufacturing activity has on service employment. To test our hypotheses, the methodology adopts an instrumental variable approach. Our findings suggest that foreign MNEs in manufacturing can act as a catalyst for regional structural change by stimulating employment in intermediate services via demand linkages. While the composition of this effect seems to be homogeneous in terms of the knowledge content of services, differences are found once the degree of their spatial concentration is accounted for.
    Keywords: multinational enterprises; service outsourcing; regional structural change; local markets; multiplier; ES/M008436/1
    JEL: O3 R1
    Date: 2018–11–01

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