nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2021‒11‒08
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Growing Through Spinoffs By Maurizio Iacopetta; Raoul Minetti; Pierluigi Murro
  2. Between “Research Producers” and “Research Adopters”: The Role of Knowledge and Innovation Transfer on Sustainability Impact By Chams, Nour; Guesmi, Bouali; Gil, Jose M.; Molins, Mireia; Cubel, Rosa
  3. From automation to databased business models - Digitalization and its links to innovation in small and medium-sized enterprises By Thomä, Jörg; Bischoff, Thore Sören
  4. The Heterogeneous Impacts of Higher Education Institutions on Regional Firm Location: Evidence from the Swiss Universities of Applied Sciences By Tobias Schlegel; Uschi Backes-Gellner
  5. Governance structure, technical change and industry competition By Mattia Guerini; Philipp Harting; Mauro Napoletano
  6. Revisiter l’innovation : la vulnérabilité organisationnelle des PME innovantes dans le secteur des sports outdoor By Bastien Soulé; Julie Hallé; Eric Boutroy; Bénédicte Vignal
  7. Marketing performance of service firms: Recognizing market sensing capability and customer interaction orientation By Collins Kankam-Kwarteng; Appiah Sarpong; Ofosu Amofah; Stephen Acheampong
  9. Labelling and Information Schemes for the Circular Economy By Frithjof Laubinger; Peter Börkey
  10. International trade and technological competition in markets with dynamic increasing returns By Luca Fontanelli; Mattia Guerini; Mauro Napoletano

  1. By: Maurizio Iacopetta (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Raoul Minetti (Michigan State University [East Lansing] - Michigan State University System); Pierluigi Murro
    Abstract: New firms are often based on ideas that the founders developed while working for incumbent firms. We study the macroeconomic effects of spinoffs through a growth model of product variety expansion, driven by firm entry, and product innovation. Spinoffs stem from conflicts of interest between incumbent firms' shareholders and employees. The analysis suggests that incumbents invest more in product innovation when knowledge protection is stronger. An inverted-U shape relationship emerges, however, between the intensity of spinoff activities and the strength of the rule of law. A calibration experiment indicates that, with a good rule of law, loosening knowledge protection by 53 reduces product innovation by one fifth in the short run and one seventh in the long run, but boosts the spinoff rate by one tenth and one sixth in the short and long run, respectively. Nevertheless, per capita income growth drops and welfare deteriorates. The trade-offs are broadly consistent with evidence from Italian firms.
    Keywords: Corporate governance,Endogenous growth,Spinoffs
    Date: 2020–04–29
  2. By: Chams, Nour; Guesmi, Bouali; Gil, Jose M.; Molins, Mireia; Cubel, Rosa
    Keywords: Research and Development/Tech Change/Emerging Technologies
    Date: 2021–08
  3. By: Thomä, Jörg; Bischoff, Thore Sören
    Abstract: Digitalization is one of the main trends affecting firm-level innovation today. In this context, a better understanding of the multidimensional relationship between digital technologies, competences and firm-level innovation is necessary. For this purpose, this paper examines the role of digital transformation in the context of innovation activities of small and medium-sized enterprises (SMEs). Based on a systematic review of the fourth edition of the Oslo Manual and a subsequent qualitative content analysis (QCA) of interview data on innovating German SMEs, a category system is derived covering different facets of the digitalization-innovation link along seven main categories and 32 sub-categories. This category system is employed to analyze the interview data, with several findings pointing to the heterogeneity of innovating SMEs in terms of digitalization. It emerges that there tend to be two ideal types of "digitalizers" among innovating SMEs. On the one hand, process innovators using digital technologies and practices to generate efficiency and automation benefits, whereby they must build up basic digital competences within the firm to achieve this aim. On the other hand, product innovators with advanced competences in digitalizing their goods and services that have often already gained experiences in adopting a digital business model. The paper concludes with implications for innovation measurement, policy and further research.
    Keywords: Digitalization,Digital innovation,Innovation measurement,Qualitative content analysis,SMEs
    JEL: D22 O31 O32 O33
    Date: 2021
  4. By: Tobias Schlegel; Uschi Backes-Gellner
    Abstract: The empirical literature on knowledge spillovers provides evidence that higher education institutions (HEIs) have positive effects on regional firm location, i.e., the number of start-ups or firms located in a region. However, less is known about how HEIs in different fields of study impact regional firm location in different industries. To estimate effects on firm location in different industries, we exploit the establishment of universities of applied sciences (UASs)-bachelor degree-granting three-year HEIs in Switzerland-in different fields of study. We find that effects are heterogeneous and UASs specializing in "chemistry and life sciences" and "business, management, and services" are the only UASs that positively affect regional firm location. These positive effects are limited to service industries that are characterized by both radical service innovations and incremental product and process innovations.
    Keywords: Higher Education and Research Institutions, Government Policy, Regional Economic Development
    JEL: I23 I28 O18
    Date: 2021–11
  5. By: Mattia Guerini (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Philipp Harting; Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po)
    Abstract: We develop a model to study the impact of corporate governance on firm investment decisions and industry competition. In the model, governance structure affects the distribution of shares among short- and long-term oriented investors, the robustness of the management regarding pos- sible stockholder interference, and the managerial remuneration scheme. A bargaining process between firm's stakeholders determines the optimal allocation of financial resources between real investments in R&D and financial investments in shares buybacks. We characterize the relation between corporate governance and firm's optimal investment strategy and we study how different governance structures shape technical progress and the degree of competition over the industrial life cycle. Numerical simulations of a calibrated set-up of the model show that pooling together industries characterized by heterogeneous governance structures generate the well-documented inverted-U shaped relation between competition and innovation.
    Keywords: governance structure,industry dynamics,competition,technical change
    Date: 2020
  6. By: Bastien Soulé (L-VIS - Laboratoire sur les Vulnérabilités et l'Innovation dans le Sport (EA 7428) - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon); Julie Hallé; Eric Boutroy; Bénédicte Vignal
    Abstract: While innovating is likely to procure competitive advantage within the industry of sports goods, it is also a risky activity which may lead to damaging consequences for companies. It therefore seems relevant to take an interest in the potential detrimental effects of innovation processes within small, particularly creative, companies in the sports sector. In this paper, we seek to know if, and how, engaging in an innovation process leads to singular forms of organizational vulnerability. Case studies were carried out in five small or medium-sized French companies specializing in the outdoors. We conducted a total of 48 interviews with different actors in the innovation processes, accompanied by field observations and analysis of secondary data. The priority frequently given to meeting technical challenges is likely to distance the product from the customer and real use. In certain cases, "innovation fever" generates internal imbalance. Second, some companies are too dependent on a key figure in their functioning, the inventor-entrepreneur; it sometimes implies a weakening of the innovation network during its vital decoupling stage. Finally, although the creation of innovation networks is necessary, it heightens the dependence on stakeholders and exposes to specific threats. Excessive confidence in the benefits of innovation can prove problematic. Innovators should not be discouraged, but reminded of the contingent and uncertain nature of the processes in which they engage, requiring anticipation and measure. The challenge consists in managing both the present and the future, while acknowledging that the exploitation of a routine does not prevent the exploration of new solutions.
    Keywords: innovation management,organizational vulnerability,outdoor sports,product innovation,small companies,management de l’innovation,vulnérabilité organisationnelle,sports outdoor,innovation de produit,petites entreprises
    Date: 2021–10–01
  7. By: Collins Kankam-Kwarteng (Kumasi Technical University); Appiah Sarpong (Takoradi Technical University); Ofosu Amofah (Ho Technical University [Ho, Ghana]); Stephen Acheampong (Ghana Baptist University)
    Abstract: Purpose: This study examines the effect of market sensing and interaction orientation capabilities on the marketing performance of service based firms in Ghana. The study particularly explored the moderation effect of interaction orientation capability on the relationship between market sensing and firm performance of the service firms. Methods: This study adopted the survey approach focusing on a convenient sample of 200 employees of service firms. The hierarchical multiple regression analysis was used to establish the relationship between the variables of interest. Results: The study revealed that market sensing capability and interaction orientation significantly account for variations in the marketing performance of the service businesses. Furthermore, the findings showed that the interaction of market sensing and interaction orientation capabilities is vital for extracting a higher marketing. Implications: The research target of service firms limits the generalizability of the findings since the participants were not proportionally participated. In addition to insights on how marketing sensing and interaction orientation should fit the realization of marketing performance, the research offers other ideas to enhance measurement of marketing performance based on customer profits and customer relations.
    Keywords: market sensing,Marketing performance,service firms,interaction orientation
    Date: 2021–10–18
  8. By: Leonardo Becchetti (Dipartimento di Economia e Finanza, Università di Roma Tor Vergata); Sara Mancini (Dipartimento di Economia e Finanza, Università di Roma Tor Vergata); Nazaria Solferino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: Based on results of the different fields of the game theoretic literature on strategic interactions and social dilemmas, gift exchange and procedural utility, we argue that corporate social responsibility and relational skills i) with other firms; ii) between employers and workers iii) among workers and iv) with stakeholders are associated to positive effects on productivity. We test our research hypothesis on a large representative sample of Italian firms including the universe of medium and large companies and accounting for 91.3 percent of domestic employees. We find that companies with higher relational skills report significantly higher value added per worker after controlling for relevant concurring factors. More specifically, the identified significant skill related components are: i) corporate policies considering strategic workers’ wellbeing; ii) team working attitudes considered as priority soft skills when hiring workers; iii) initiatives in favour of the productive network operating in the same local area and iv) involvement of stakeholders in CSR projects.
    Keywords: relational skills, corporate productivity, gift exchange, team working
    JEL: L22 L25 L14 J53
    Date: 2021–10
  9. By: Frithjof Laubinger (OECD); Peter Börkey (OECD)
    Abstract: Circular Economy Labels and Information Schemes (CELIS) compose the group of labels, certifications, standards of information schemes that fully or partially address one or more resource efficiency or circular economy elements. CELIS can play an important role in fostering circular economy activities. They can empower market actors to distinguish and discriminate products based on environmental performance, which stimulates market development and innovation in resource efficient products and services. Information systems also enable better supply chain management and allow firms to identify environmental impacts and risks in their supply chains.This paper provides an overview of the current CELIS landscape, assesses the drivers and barriers to a greater uptake of business-to-business information systems, and identifies circular economy aspects that are underdeveloped in the existing consumer labels landscape.
    Keywords: circular economy, information policy approaches, natural resources, resource efficiency, sustainable consumption
    JEL: O14 Q53 Q56 Q58 D82 L15
    Date: 2021–11–04
  10. By: Luca Fontanelli; Mattia Guerini; Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po)
    Abstract: We build a simple dynamic model to study the effects of technological learning, market selection and international competition in the determination of export flows and market shares. The model features two countries populated by firms with heterogeneous productivity levels and sales. Market selection in each country is driven by a finite pairwise Pólya urn process. We show that market selection leads either to a national or to an international monopoly in presence of a static distribution of firm productivity levels. We then incorporate firm learning and entry-exit in the model and we show that the market structure does not converge to a monopoly. In addition, we show that the extended model is able to jointly reproduce a wide ensemble of stylized facts concerning intra-industry trade, industry and firm dynamics.
    Keywords: international trade,industrial dynamics,firm dynamics,market selection,Pólya urn
    Date: 2021

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