nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2020‒11‒23
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. How deep is your love? Innovation, Upgrading and the Depth of Internationalization By Meyer, Birgit
  2. Start-up Acquisitions and Innovation Strategies By Schmutzler, Armin; Letina, Igor; Seibel, Regina
  3. How to not miss a productivity revival once again? By Bart van Ark; Klaas de Vries; Abdul Erumban
  4. Investments in R&D and Innovative Behavior: An Exploratory Cross-Country Study By Link, Albert
  5. Import Competition and Firm Productivity: Evidence from German Manufacturing By Slavtchev, Viktor; Bräuer, Richard; Mertens, Matthias
  6. Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures By Gries, Thomas; Naudé, Wim
  7. Influence of information technology: A relation between strategic orientation and firm performance By Susanto, Stefanny Magdalena
  8. Challenges, Opportunities and Needs for a Sustainable Bioeconomy in the Alentejo Region By MARQUES SANTOS Anabela; EDWARDS John; LARANJA Manuel
  9. Diversification, efficiency and risk of banks: New consolidating evidence from emerging economies By Jeon, Bang Nam; Wu, Ji; Chen, Limei; Chen, Minghua
  10. The contributions of the relational view to understand the diffusion of a public policy for the promotion of cooperation between SMEs in Brazil By Olivier Coussi; Alsones Balestrin; Kadigia Faccin; Felipe Zarpelon

  1. By: Meyer, Birgit
    Abstract: Global Value Chains (GVCs) provide an important opportunity to become member of the global economy. Gaining access to GVCs and the possibility of developing linkages with major suppliers and customers enables the prospect to upgrade products and production processes via knowledge and technological spillovers, learning by doing and the allocation of new task. Adopting new production technologies and realizing synergy effects might allow cost reduction, product innovation and product upgrading. Even if GVCs represent a rich environment for innovation activities, the extent to which knowledge is created and transferred among firms may vary considerably across their mode of participation in the global chain, thus resulting in heterogeneous innovation capacities for the firms involved. Differences in the forms of governance underlying buyer-supplier relationships - for instance linked to dissimilar power asymmetries and firm capability - can strongly affect the knowledge transmission along the chains and are potentially able to explain heterogeneities in firms' innovation propensity. Using a firm-product-level dataset of Indian manufacturing firms including information on business groups, this paper contributes to recent studies on international production and GVCs by testing the effect of different modes of internationalization on firms' upgrading activities, including the extensive and intensive margins of innovation and R&D expenditures. Controlling for the selection bias associated with the chosen mode of internationalization and accounting for potential reverse causality, this paper shows that the deeper firms are integrated internationally, the higher the likelihood that they engage in innovation activities. Firms which have a high mode of internationalization are not only more productive, but also more likely to introduce new products, upgrade existing products and produce more sophisticated products than firms that are less engaged in international markets and, thus, less prone to international competition.
    Keywords: Global value chain,exporting,importing,FDI,innovation,upgrading
    JEL: F23 F61 O31 D22 L23 F14
    Date: 2020
  2. By: Schmutzler, Armin; Letina, Igor; Seibel, Regina
    Abstract: This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory to identify the effects of prohibiting start-up acquisitions. We differentiate between killer acquisitions (when the incumbent does not commercialize the acquired start-up's technology) and acquisitions with commercialization. A restrictive acquisition policy reduces the variety of research approaches pursued by the firms and thereby the probability of discovering innovations. Furthermore, it leads to strategic duplication of the entrant's innovation by the incumbent. These negative innovation effects of restrictive acquisition policy have to be weighed against the pro-competitive effects of preserving potential competition.
    Keywords: innovation,acquisitions,mergers,competition,start-ups
    JEL: O31 L41 G34
    Date: 2020
  3. By: Bart van Ark; Klaas de Vries; Abdul Erumban
    Abstract: Over the past 15 years productivity growth in advanced economies has significantly slowed, giving rise to the productivity paradox of the New Digital Economy – that is, the notion of increased business spending on ICT assets and digital services without a noticeable increase in productivity. We argue that time lags are the most important reason for the slow emergence of the productivity effects from digital transformation. This paper provides evidence that underneath the slowing productivity growth rates at the macro level, signs of structural improvements can be detected. In the US most of the positive contribution to productivity growth is coming from the digital producing sector. The Euro Area and the UK show larger productivity contributions from the most intensive digital-using sectors, although the UK also had a fairly large number of less intensive digital-using industries which showed productivity declines. We also find that increases in innovation competencies of the workforce are concentrated in industries showing faster growth in labour productivity, even though more research is needed to identify causality. Finally, we speculate that as the recovery from the COVID-19 recession gets underway the potential for significant productivity gains in the medium term is larger than during the past fifteen years.
    Keywords: Production, Cost, Capital, Multifactor and Total Factor Productivity, Capacity, Measurement of Economic Growth, Aggregate Productivity
    JEL: D24 O47
    Date: 2020–11
  4. By: Link, Albert (University of North Carolina at Greensboro, Department of Economics)
    Abstract: The relationship between investments in research and development (R&D) and innovative behavior, measured in terms of new products or services being delivered to the market, is well documented in the literature. This paper departs from the extant literature in that the unit of observation is a country rather than a firm. Using World Bank aggregate data, this level of analysis thus allows for a systematic study of cross-country observations on an R&D Innovation relationship.
    Keywords: R&D; Innovation; Developed Economy; Transition Economy; Developing Economy;
    JEL: O31 O32 O57
    Date: 2020–11–09
  5. By: Slavtchev, Viktor; Bräuer, Richard; Mertens, Matthias
    Abstract: This study analyzes empirically the effects of import competition on firm productivity (TFPQ) using administrative firm-level panel data from German manufacturing. We find that only import competition from high-income countries is associated with positive incentives for firms to invest in productivity improvement, whereas import competition from middle- and low-income countries is not. To rationalize these findings, we further look at the characteristics of imports from the two types of countries and the effects on R&D, employment and sales. We provide evidence that imports from high-income countries are relatively capital-intensive and technologically more sophisticated goods, at which German firms tend to be relatively good. Costly investment in productivity appears feasible reaction to such type of competition and we find no evidence for downscaling. Imports from middle- and low-wage countries are relatively labor-intensive and technologically less sophisticated goods, at which German firms tend to generally be at disadvantage. In this case, there are no incentives to invest in innovation and productivity and firms tend to decline in sales and employment.
    Keywords: productivity,multi-product firms,import competition
    JEL: F14 L25 D22 D24 F61
    Date: 2020
  6. By: Gries, Thomas (University of Paderborn); Naudé, Wim (RWTH Aachen University)
    Abstract: In light of the COVID-19 pandemic, we scrutinize what has been established in the literature on whether entrepreneurship can cause and resolve extreme events, the immediate and long-run impacts of extreme events on entrepreneurship, and whether extreme events can positively impact (some) entrepreneurship and innovation. Based on this, we propose a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship and derive policy recommendations for recovery. Our model's comparative statics shows that entrepreneurship recovery will benefit from aggregate demand-side support measures, combined with direct subsidies for start-ups, firms' revenue losses, and loan liabilities, as well as from actions that promote income redistribution.
    Keywords: entrepreneurship, innovation, COVID-19, extreme events, development
    JEL: I18 L26 L53 M13
    Date: 2020–11
  7. By: Susanto, Stefanny Magdalena
    Abstract: Strategic Orientation berpengaruh secara langsung terhadap firm performance suatu perusahaan. Teknologi Informasi menawarkan cara baru untuk menjangkau pelanggan dengan informasi pasar yang substansial. Dengan memanfaatkan Information Technology (IT), Perusahaan mendapatkan keuntungan dari pengaruh sosial terhadap pemasaran secara langsung, yang bertujuan untuk mengumpulkan informasi di jejaring sosial pelanggan.
    Date: 2020–10–17
  8. By: MARQUES SANTOS Anabela (European Commission - JRC); EDWARDS John; LARANJA Manuel
    Abstract: The Portuguese region of Alentejo was one of the first to explore how support for the Entrepreneurial Discovery Process (EDP) can go digital during the challenging times of the COVID-19 pandemic. 47 stakeholders participated in the online event, staggered over two half-days, to discuss challenges, opportunities and needs of the region in the field of sustainable bioeconomy. Inadequate framework conditions (legal and infrastructures) and disarticulation between skills needs and education/training available were highlighted as some of the barriers to innovation. Greater articulation between the different actors in the value chain and a more integrated/systemic approach are some of the identified needs of the market.
    Keywords: bioeconomy, Portugal, COVID-19
    Date: 2020–10
  9. By: Jeon, Bang Nam (School of Economics LeBow College of Business Drexel University); Wu, Ji (Southwestern University of Finance and Economics); Chen, Limei (Fudan University); Chen, Minghua (Southwestern University of Finance and Economics)
    Abstract: This paper examines the impact of business diversification of banks on their risk, with efficiency taken into consideration as a conduit. Using bank-level data from more than 1400 commercial banks in 39 emerging economies during 2000-2016, we find that increased business diversification exerts two competing effects on bank risk, and overall reduces bank risk. The direct effect of increased diversification bolsters the stability of banks, but it is offset partially by the indirect effect whereby lowered efficiency, which is resulted from higher diversification, increases the riskiness of banks. This provides a consolidating evidence on the competing arguments on the diversification-efficiency nexus in the banking literature-the "diversification-premium" argument vs. the "diversification-discount" argument-with its extended implications on bank risk. In addition, we also present evidence that the diversification-bank risk nexus is heterogeneous on the bank size, market power and the ownership of banks, which provides useful policy implications for diversification strategies by bank managers as well as for the effective surveillance by bank regulators.
    Keywords: Diversification; Bank Efficiency; Bank Risk-Taking; Emerging Economies
    JEL: G15 G21 L25
    Date: 2020–08–01
  10. By: Olivier Coussi (CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - Université de La Rochelle); Alsones Balestrin; Kadigia Faccin; Felipe Zarpelon
    Abstract: The development of inter-firm cooperation is a major issue in government policies to support economic competitiveness. In order to optimize the spread and impact of these policies, the public authorities deploy specific mechanisms in which universities can play a central role. While the latter have every legitimacy to be active within the framework of support mechanisms for innovation or technology transfer, it seems less natural to involve them in operations outside these activities. We present the lessons learned from a longitudinal case study of an inter-firm cooperation program conducted in a state in southern Brazil through a partnership between the government and community universities in charge of its operational implementation. From a relational perspective, we analyze the determinants of this partnership in order to identify the relational rents produced by the networks of SMEs built into authentic territorial ecosystems: community access and propagation. We show that these rents are confronted with obstacles that constitute relational losses that must be minimized in order to optimize the effectiveness of the public policy pursued: inflexibility and distance from the target.
    Abstract: Le développement de la coopération inter-entreprises est un enjeu majeur des politiques gouvernementales de soutien à la compétitivité économique. Afin d'optimiser la diffusion et l'impact de ces politiques, les pouvoirs publics déploient des dispositifs spécifiques au sein desquels les universités peuvent avoir une place centrale. Si ces dernières ont toute légitimité d'être actives dans le cadre de dispositifs de soutien à l'innovation ou au transfert de technologies, il semble moins naturel de les impliquer pour des opérations en dehors de ces champs. Nous présentons les enseignements issus d'une étude de cas longitudinale sur un programme de coopération inter-entreprises déployée dans un Etat au sud du Brésil par le biais d'un partenariat entre le gouvernement et des universités communautaires en charge de sa mise en oeuvre opérationnelle. En nous inscrivant dans une perspective relationnelle, nous analysons les déterminants de ce partenariat afin d'identifier les rentes relationnelles produites par les réseaux de PME construits en véritables écosystèmes territoriaux : l'accès à la communauté et la propagation. Nous démontrons que ces rentes sont confrontées à des obstacles, constituant de fait des pertes relationnelles à minimiser afin d'optimiser l'efficacité de la politique publique poursuivie : l'inflexibilité ainsi que la distance par rapport à la cible.
    Keywords: Perspective relationnelle,université,coopération,étude de cas,Brésil,Politique publique.
    Date: 2020–04–01

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