nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒11‒16
eight papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The role of gender in linking external sources of knowledge and R&D intensity By AMOROSO Sara; AUDRETSCH David
  2. The Impact of Product innovation on Performance: The Influence of Uncertainty and Managerial Accounting Information Systems By Tsai, Ming-Hsiu; Chang, Jung-Hsin; Lin, Yuan-Sheng; Cheng, Kuo-Chih
  3. Business Dynamism in the UK: New Findings Using a Novel Dataset By Silvia Lui; Russell Black; Josefa Lavandero-Mason; Mohammad Shafat
  4. Exchange Rates, International Outsourcing, and Firm Export Dynamics By INUI Tomohiko; Young Gak KIM
  5. Global value chains and technology transfer: new evidence from developing countries By Rigo, Davide
  6. Immigrant Communities and Knowledge Spillovers: Danish-Americans and the Development of the Dairy Industry in the United States By Boberg-Fazlić, Nina; Sharp, Paul
  7. Real effects of lending-based crowdfunding platforms on the SMEs By Olena Havrylchk; Aref Mahdavi Ardekani
  8. Is the productivity premium of internationalized firms technology-driven? By Michele Battisti; Filippo Belloc; Massimo Del Gatto

  1. By: AMOROSO Sara (European Commission - JRC); AUDRETSCH David
    Abstract: Scholars examining the effect of knowledge spillovers on R&D and innovation all agree on one thing—there is a strong relationship between the firm’s R&D effort and knowledge spillovers. The sign of this relationship depends, however, on many things, such as the type of spillovers (horizontal, vertical, or from other sources), the level of appropriability, the type of firm (e.g., age and sector), and the measurement of the spillover itself. A missing piece of evidence to this literature is the role of gender in the founding team of the firm. Our contribution is to fill this gap by explicitly analysing the role played by gender in the founding team. Given that the relationship between a firm’s R&D intensity and external knowledge spillovers is ultimately context-specific, we analyse the differences between male-owned and female-owned young entrepreneurial firms with respect to the influence that knowledge spillovers have on their R&D intensity.
    Keywords: Women entrepreneurs, absorptive capacity, knowledge intensive enterprise, spillovers, Europe
    Date: 2020–10
  2. By: Tsai, Ming-Hsiu; Chang, Jung-Hsin; Lin, Yuan-Sheng; Cheng, Kuo-Chih
    Abstract: This paper reports on a survey of Taiwanese high-tech firms, using a path analysis to examine the effects of managerial accounting information systems (MAIS) on the relationship between product innovation and organizational performance. Two of the major characteristics suggested by Chenhall and Morris (1986), broad scope and timeliness, are systematically related to the subject matter of this study, thus, employing these two characteristics to explore the connection between MAIS, product innovation and organizational performance. We find that product innovation has a positive effect on organizational performance through the use of MAIS, and find the extent of this positive effect is more significant in business environments marked by high levels of uncertainty. This study provides evidence to understand whether product innovation requires more extensive use of MAIS in highly uncertain environments and whether the use of MAIS can improve organizational performance. The results also help practicing managers realize the importance of MAIS in modern organizations and the benefits of using MAIS to the organization. Finally, we remind managers engaging in product innovation practices that they should place importance on the use of MAIS, because traditional cost control systems no longer help in solving the problems that are specific to the current, modern business environment.
    Keywords: Information Systems; Managerial Accounting
    JEL: M4 M40 M49
    Date: 2020–09–14
  3. By: Silvia Lui; Russell Black; Josefa Lavandero-Mason; Mohammad Shafat
    Abstract: We use a novel firm-level dataset to measure employment dynamics of UK businesses from 1999 to 2019, building on microdata from the Inter-Departmental Business Register (IDBR) and administrative data on employment from PAYE records at HMRC. We construct a new quarterly dataset by using consecutive snapshots of the IDBR to deduce signs of activity of firms. We present detailed descriptive analysis showing the quarterly averages for job creation and destruction by size, sector, transition status and age. In addition, we compute the marginal effects of age and size on growth using the Davis, Halitwanger and Schuh (DHS) approach. Our results show that business dynamism has slowed down since the 2008-2009 financial crisis on two levels: firstly, a decline in job destruction and secondly, a decline in job creation due to entry. Age has an important role in UK’s business dynamism – young firms are the most dynamic group of enterprises, independently of size.
    Keywords: business dynamism, employment, administrative data
    JEL: C81 D22 L25
    Date: 2020–10
  4. By: INUI Tomohiko; Young Gak KIM
    Abstract: Using the most comprehensive Japanese firm-level dataset, we investigate the effect of exchange rate fluctuations on Japanese firms' performance in the international market. We examine firm characteristics based on firm export dynamics. The estimation results overall indicate the depreciation of the yen may play an important role in the expansion of export, but a limited role in terms of entry to the export market. The results also show that export elasticity is significantly affected by import intensity, and decreases from 0.81 in 1997 to 0.64 in 2015 because of the increased import intensity, indicating that fully globalized firms utilize imports to alleviate negative shocks from exchange rates on exports and to improve price competitiveness.
    Date: 2020–10
  5. By: Rigo, Davide
    Abstract: International trade has long been considered a channel of technology transfer. This paper draws from the World Bank’s Enterprise Surveys to provide a sample of 18 developing and emerging economies to investigate whether global value chains (GVCs) are a vehicle for the transfer of technology. It focuses on one specific channel for technology transfer, namely, the licensing of foreign technology. To control for the possible endogeneity of technology licensing, propensity score matching is combined with a difference-in-differences approach. The results show a positive effect of being involved in two-way trading on the licensing of foreign technology. Firms that become two-way traders are significantly more likely to use foreign-licensed technology than firms starting to export or import. This evidence suggests that the complexity associated with the mode of internationalisation determines the licensing of foreign technology. GVC participation also appears to foster firms’ performance, reflecting my findings that the acquisition of foreign technology leads to significant productivity improvements.
    Keywords: developing countries; global value chains; international technology transfer; productivity; technology licensing
    JEL: R14 J01 L81
    Date: 2020–10–29
  6. By: Boberg-Fazlić, Nina; Sharp, Paul
    Abstract: Despite the growing literature on the impact of immigration, little is known about the role existing migrant settlements can play for knowledge transmission. We present a case which can illustrate this important mechanism and hypothesize that nineteenth century Danish-American communities helped spread knowledge on modern dairying to rural America. From around 1880, Denmark developed rapidly and by 1890 it was a world-leading dairy producer. Using a difference-in-differences strategy, and data taken from the US census and Danish emigration archives, we find that counties with more Danes in 1880 subsequently both specialized in dairying and used more modern practices.
    Keywords: International Development, Industrial Organization
    Date: 2020–06
  7. By: Olena Havrylchk (Centre d'Economie de la Sorbonne & LabEx ReFi); Aref Mahdavi Ardekani (Centre d'Economie de la Sorbonne)
    Abstract: This paper explores the short-term impact of borrowing via lending-based crowdfunding on performance and health of small and medium enterprises (SMEs) in France. We find that firms borrowing from lending-based crowdfunding platforms are more dynamic (higher asset growth and higher profitability) and innovative, but they have lower leverage, less cash, higher funding costs and less tangible assets that could be pledged as a collateral. To account for this selection bias, we construct three control groups by using Propensity Score Matching, Mahalanobis Distance Matching and Coarsened Exact Matching methods and then run difference-in-difference regressions. We find that borrowing via lending-based crowdfunding platforms increases SMEs' leverage and interest rate burden in the short-term, but these impacts disappear after two years. We observe asset growth during the year of borrowing, but no impact on sales growth, investment, employment or profitability
    Keywords: lending-based crowdfunding; firm financing; firm performance; informational asymmetry
    JEL: G21 G23 G31 G32
    Date: 2020–08
  8. By: Michele Battisti; Filippo Belloc; Massimo Del Gatto
    Abstract: We ask whether the productivity advantage of internationalized firms documented by the international trade literature can be interpreted most accurately in terms of proximity to the “technological frontier". We answer in the affermative using a methodology (based on mixture models) of unbundling technology and total factor productivity (TFP) by estimating “technology-specic" production function parameters. Exploiting detailed data provided by the EFIGE database (a sample of firms distributed across Austria, France, Germany, Hungary, Italy, Spain, and the United Kingdom), we nd technology gaps (with respect to the frontier) more than three times larger than the TFP gaps on average. We also nd sizable technology advantages for firms undertaking foreign direct investment and/or exporting to other European Union countries or to China, for importers of materials, and for firms with competitors in China and the United States. Medium and large firms feature a higher technology premium, which is even higher for firms operating in country-sectors that are more exposed to import competition from China. Younger firms use better technologies but less effectively.
    Keywords: heterogenous firm, productivity premium, selection effect, technology, TFP, trade model
    JEL: F12 F14 D24
    Date: 2020–08

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