nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒10‒25
seven papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The drivers of SME innovation in the regions of the EU By Hervás-oliver, José-luis; Parrilli, Mario Davide; Rodríguez-pose, Andrés; Sempere-ripoll, Francisca
  2. Geographies of Knowledge Sourcing and the Value of Knowledge in Multilocational Firms By Anthony Frigon; David L. Rigby;
  3. Globalized Adoption of Knowledge Management in New Product Development: A Conceptual Framework By Bak Aun Teoh
  4. Technological capacity and firms' recovery from Covid-19 By Sebastian Doerr; Magdalena Erdem; Guido Franco; Leonardo Gambacorta; Anamaria Illes
  5. Organizations decentered: data objects, technology and knowledge By Alaimo, Cristina; Kallinikos, Jannis
  6. Analyzing “Innovation” in economics By Kakkar, Shrey
  7. The digital undertow: how the corollary effects of digital transformation affect industry standards By Scott, Susan V.; Orlikowski, Wanda J.

  1. By: Hervás-oliver, José-luis; Parrilli, Mario Davide; Rodríguez-pose, Andrés; Sempere-ripoll, Francisca
    Abstract: European Union (EU) innovation policies have for long remained mostly research driven. The fundamental goal has been to achieve a rate of R&D investment of 3% of GDP. Small and medium-sized enterprise (SME) innovation, however, relies on a variety of internal sources —both R&D and non-R&D based— and external drivers, such as collaboration with other firms and research centres, and is profoundly influence by location and context. Given this multiplicity of innovation activities, this study argues that innovation policies fundamentally based on a place-blind increase of R&D investment may not deliver the best outcomes in regions where the capacity of SMEs is to benefit from R&D is limited. We posit that collaboration and regional specificities can play a greater role in determining SME innovation, beyond just R&D activities. Using data from the Regional Innovation Scoreboard (RIS), covering 220 regions across 22 European countries, we find that regions in Europe differ significantly in terms of SME innovation depending on their location. SMEs in more innovative regions benefit to a far greater extent from a combination of internal R&D, external collaboration of all sorts, and non-R&D inputs. SMEs in less innovative regions rely fundamentally on external sources and, particularly, on collaboration with other firms. Greater investment in public R&D does not always lead to improvements in regional SME innovation, regardless of context. Collaboration is a central innovation activity that can complement R&D, showing an even stronger effect on SME innovation than R&D. Hence, a more collaboration-based and place-sensitive policy is required to maximise SME innovation across the variety of European regional contexts.
    Keywords: regional innovation; SMEs; R&D; place-based; collaboration; EU regions
    JEL: O31 O32 L11
    Date: 2021–11–01
  2. By: Anthony Frigon; David L. Rigby;
    Abstract: A growing body of research in economic geography, international business management and related fields focuses on geographies of knowledge sourcing. This work examines the organizational structure of innovation activities within the firm, the mechanisms by which knowledge is extracted from various external sources and the geography of these different activities. We augment this literature by exploring knowledge sourcing within multilocational firms operating in the US using a unique dataset matching patent records to firm-level ownership and geographical data. The results add value to existing research in three ways. First, the establishments of multilocational corporations are shown to produce different kinds of knowledge in different locations. Second, the patents generated within a firm’s establishments are linked to the knowledge stocks of the cities where they operate, supporting a vision of geographical knowledge sourcing. Third, the complexity of knowledge produced within the firm as a whole is positively related to the number of establishments in which multilocational firms undertake innovation activities. In sum these data suggest that multilocational firms distribute their innovation activities across locations in order to secure access to local pools of tacit knowledge. The complexity value of firms’ knowledge production is enhanced as a result of this spatial strategy.
    Date: 2021–10
  3. By: Bak Aun Teoh (Tunku Abdul Rahman University College, Jalan Genting Kelang, 53300 Setapak, Kuala Lumpur, Malaysia Author-2-Name: Wei Hong Ling Author-2-Workplace-Name: Tunku Abdul Rahman University College, Jalan Genting Kelang, 53300 Setapak, Kuala Lumpur, Malaysia Author-3-Name: Amlus Ibrahim Author-3-Workplace-Name: Universiti Utara Malaysia, 06010 Sintok, Kedah Darul Aman, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective - The article presents the concept between the relationship of knowledge management adoption in global new product development. The growth in new knowledge and technology has substantially increased the complexity of the projects that is strongly influencing the time, cost, and quality of the project management. Due to the volatility of the current market, the effectiveness of knowledge management could reduce the project uncertainties, project life cycle costs, and risks of new product development. Since new product development is regarded as the key to innovation due to its strong connection between the knowledge and core competence, the ways how the knowledge will be captured, created, and shared among the project teams is important to remain competitive in today's business and market competition. Hence, the modes of how they are created and shared between the project team members as well as the impact of knowledge management towards new product development will be discussed in this paper. knowledge management are normally created and transferred through the conversion between explicit and tacit knowledge, which can be further applied into the project management. Methodology/Technique - The paper embarks a conceptual review of present literatures which specifically address the perspectives of project management, and simultaneously explains the relationship between the knowledge management (namely knowledge creation, knowledge sharing, knowledge utilization and key success factor) and new product development. Finding - This research ascertains the conceptual framework that relate to knowledge management and new product development that contribute to increase the probability of project success in project management. Novelty - Present study aims to shed light on the existing knowledge of the organization can be evaluated by the actions of decision makers and introduce a conceptual framework that a better knowledge can lead to measurable efficiencies in production and product development. Type of Paper - Review"
    Date: 2021–09–30
  4. By: Sebastian Doerr; Magdalena Erdem; Guido Franco; Leonardo Gambacorta; Anamaria Illes
    Abstract: Can higher technological capacity help firms to recover quicker from recessions? Analyzing the effects of the Covid-19 pandemic on firm revenues in several countries, we find that firms headquartered in jurisdictions with better digital infrastructure generated relatively higher revenue during the shock period. Improving a country's technological capability by one standard deviation is associated with a relative increase in revenues of the average firm by around 4%. The positive effect of technology is more pronounced among smaller firms, suggesting that it could have helped the recovery of SMEs.
    JEL: E23 G10 G38 O30
    Date: 2021–10
  5. By: Alaimo, Cristina; Kallinikos, Jannis
    Abstract: Data are no longer simply a component of administrative and managerial work but a pervasive resource and medium through which organizations come to know and act upon the contingencies they confront. We theorize how the ongoing technological developments reinforce the traditional functions of data as instruments of management and control but also reframe and extend their role. By rendering data as technical entities, digital technologies transform the process of knowing and the knowledge functions data fulfil in socioeconomic life. These functions are most of the times mediated by putting together disperse and steadily updatable data in more stable entities we refer to as data objects. Users, customers, products, physical machines rendered as data objects become the technical and cognitive means through which organizational knowledge, patterns and practices develop. Such conditions loosen the dependence of data from domain knowledge, reorder the relative significance of internal versus external references in organizations, and contribute to a paradigmatic contemporary development that we identify with the decentering of organizations of which digital platforms are an important specimen.
    Keywords: digital technology; organizational form; organizational processes; digital transformation
    JEL: R14 J01
    Date: 2021
  6. By: Kakkar, Shrey
    Abstract: This article discusses existing theories on “Innovation” since the 1940s. It differentiates between “Innovation” and “Invention”, and presents examples of innovation that are modelled by theory.
    Keywords: Innovation, Invention
    JEL: B20 B25 O31
    Date: 2021–07–31
  7. By: Scott, Susan V.; Orlikowski, Wanda J.
    Abstract: Scholarship on digital transformation has centered on how waves of digitalization have moved through industries, producing strategic changes within and across firms and enabling new forms of value creation. In this paper, we argue that different but no less important processes of digital transformation are generated by the undertow produced by these waves. This digital undertow, a corollary effect of waves of digitalization, profoundly influences how firms operate by transforming the industry standards that coordinate and regulate their core business activities. Using a genealogical approach, we draw on findings from a longitudinal field study in book publishing to theorize the tensions and processes that constitute the digital undertow. We explain that when waves of digitalization transform firms’ core activities, they unwittingly affect how industry standards correspond with materializations of the phenomena they structure, thus influencing how standards perform in practice. A significant outcome of recent waves of digitalization in the book industry is the loss in correspondence between industry standards and novel digital materializations of the book. This is producing what we refer to as digital displacement, a process that is engendering an existential challenge to the capacity of standards to effectively coordinate and regulate industry operations in the digital age.
    Keywords: digital transformation; digital publishing; genealogy; materialization; standards
    JEL: R14 J01
    Date: 2021

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