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on Economics of Strategic Management |
| By: | Alvarez, Lourdes; Huamaní, Edson; Coronado, Yngrid |
| Abstract: | Innovation is one of the main determinants to stimulate productivity. However, incentives to innovate may be affected by the level of competition. In particular, in developing countries, where informality is highly prevalent, formal firms have to face both types of competition: formal and informal. Previous studies have acknowledged a negative impact from competition (schumpeterian effect) but also, several recent studies have shown that competition could spur innovation (escape-competition effect). Given the importance of informal competition in developing countries, as Peru, where almost three out of four firms are informal and the intensity of investment in R&D+i activities is pretty low, this study aims to evaluate the impact of formal and informal competition, at the industrial level, on the whole innovation process and, expressly, on productivity for Peru. By using a CDM model, this study analyses how the intensity of formal and informal competition affects every stage of the innovation process. The CDM model makes possible to study four interrelated stages of the innovation process: i) the firms’ choice to engage with innovation, ii) the amount of resources invested in R&D+i activities, iii) the effects of R&D+i investments on innovation output, and iv) the impacts of innovation outcome on firms’ productivity. The model is estimated using firm-level data collected by the Peruvian National Innovation Survey 2018 and the National Business Survey 2018. Our main findings indicate that competition, both formal and informal, affects negatively the decision to engage in innovation. However, the relationship changes throughout the remaining stages of the innovation process. Whereas the informal competition affects negatively the whole innovation process (engage in innovation, intensity of R&D+I activities spending, innovation output and firms’ productivity) satisfying the Schumpeterian theory; formal competition seems to affect positively the intensity of R&D+i activities spending and also firms’ productivity, which can be explained as an escape-competition effect within the formal firms. In conclusion, meanwhile it is found that informal competition affects negatively the whole innovation process, formal competition could, instead, encourage formal firms’ willingness to invest more in R&D+i activities, increasing their productivity. |
| Keywords: | Competition, CDM model, informality, innovation, productivity |
| JEL: | D4 E26 M11 O17 O32 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105332&r=all |
| By: | Luis Aguiar (UZH - University of Zürich [Zürich]); Philippe Gagnepain (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We attempt to identify and measure potential knowledge spillovers in the French urban transport sector, which is strongly regulated and where a few large corporations are in charge of operating several urban networks simultaneously. We build and estimate a structural cost model where the service is regulated by a local government and is provided by a single operator. Knowledge spillovers are directly linked to the know-how of a specific corporation, but they also depend on the incentive power of the regulatory contract which shapes the effort of the local managers. Exerting an effort in a specific network allows a cost reduction in this network, but it also benefit other networks that are members of the same corporation. Our model provides us with estimates of the operators' absorptive capacity, which is their in-house knowledge power in order to optimally benefit from spillovers. We find that diversity of knowledge across operators of a same corporation improves absorptive capacity and increases the flow of spillovers. Simulation exercises provide evidence of significant reductions in total operating cost following the enlargement of industrial groups. |
| Keywords: | Knowledge spillovers,Absorptive capacity,Cost incentives,Effort,Diversity of knowledge,Public transport |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03110851&r=all |
| By: | Orsatti, Gianluca; Quatraro, Francesco (University of Turin) |
| Abstract: | Based on the established literature about substitution and compensation effects, this paper provides one of the first analyses of the relationship between digital technologies and employment at the regional level in Europe. We posit that idiosyncratic factors of local labor markets are likely to generate place- specific responses to the introduction of new technologies. Spatial spillovers are also likely to emerge. The geographical level of analysis is therefore the most appropriate. Our analysis confirms that there is a significant relationship between the local specialization in advanced manufacturing technologies and employment. Mainly driven by automation-related technologies, we indeed estimate negative effects of advanced manufacturing technologies on local employment creation. Conversely, digital technologies play a positive role in enhancing local labor productivity. Finally, technological performances of neighbour regions play a significant role in shaping local labor productivity, while not significantly affecting local employment creation. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202026&r=all |
| By: | Thomas Jungbauer; Sean Nicholson; June Pan; Michael Waldman |
| Abstract: | Why do firms outsource research and development (R&D) for some products while conducting R&D in-house for similar ones? An innovating firm risks cannibalizing its existing products. The more profitable these products, the more the firm wants to limit cannibalization. We apply this logic to the organization of R&D by introducing a novel theoretical model in which developing in-house provides the firm more control over the new product’s location in product space. An empirical analysis of our testable predictions using pharmaceutical data concerning patents, patent expiration, and outsourcing at various stages of the R&D process supports our theoretical findings. |
| JEL: | D23 L24 L65 O32 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28379&r=all |
| By: | Adoli, Hebron L.; Kilika, James M.; Institute of Research, Asian |
| Abstract: | A focus on the nature of strategic management process and its contribution to answer fundamental question of how firms achieve sustainable competitive advantage and improved performance through use of suitable leadership has led to organizational leaders formulating strategies through approaches that are systematic, rational as well as logical to strategic choices at corporate, business and functional levels. This has continued to be a major milestone in strategic management process in establishing a clear strategy that makes an organization competitive through suitable management of its workforce and application of strategies that are not easily imitated. This calls for an appropriate leadership strategy aimed at eliminating the gap in human capital that exists in various levels of strategic management process in an organization between the current and desired state of leadership in the future that will address the organization deficiencies by considering the right number of leaders required by the firm for the next at least 5 years with required leadership qualities, skills, behaviour, team capabilities and appropriate culture. This study has focused on a comprehensive review of conceptual and theoretical literature that brings out the role of leadership strategy in the context of strategic management process that leads to improved organizational performance. The concept of organizational capabilities and organization context were found to play a relevant role that mediate and moderate this relationship respectively. The study has proposed a suitable theoretical framework that links leadership strategy, organizational capabilities, and context and organization performance based on the identified gaps for guiding future research on leadership strategy. Six theories including; Pasmore model as lead theory, Path-Goal theory, Contingency theory, transformational leadership, Resource based view and Upper echelon theory underpinned the study in understanding the constructs. In summary, based on the reviewed literature, the study on leadership strategy is found critical for organization success and this calls for further testable empirical data and analysis to validate this claim. |
| Date: | 2020–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:abqpz&r=all |
| By: | Rania Mabrouk (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA - Université Grenoble Alpes); Oliwia Kurtyka (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | We analyze firms' choice of abatement technology in vertical chains. A downstream polluting monopoly can buy a license from an upstream supplier with mature end-of-pipe equipment (outsider) or develop an in-house clean technology. Insiders innovation may be undertaken only to increase bargaining power of the polluter. We put the light on the strategic role of environmental regulation to influence this choice. We find that the role of regulator as a technology forcing authority is confirmed in regions of under-investment. However, under certain conditions, an over-investment occurs that forces the regulator to become laxer. Paradoxically, the regulator may oppose innovation even if the resulting technology is used by the innovator. All these results rely upon the creation of total profits from the integrated vertical structure. |
| Keywords: | Environmental innovation,Abatement technology,Clean technology,End-of-pipe equipment,Vertical chain,Regulation,Bargaining,Bargaining. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03081146&r=all |