nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2022‒08‒15
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Structural Change Within Versus Across Firms: Evidence from the United States By Xiang Ding; Teresa C. Fort; Stephen J. Redding; Peter K. Schott
  2. A Lasting Crisis affects R&D decisions of smaller firms: the Greek experience By Giotopoulos, Ioannis; Kritikos, Alexander S.; Tsakanikas, Aggelos
  3. Trajetórias de professores empreendedores da área de tecnologia da informação usando vários canais de transferência de conhecimento e de tecnologia: estudos de casos na UFMG By Paula Geralda Barbosa Coelho; Márcia Siqueira Rapini
  4. Eco-innovation in the upstream supply chain: re-thinking the involvement of purchasing managers By Laurence Viale; Stéphano Vacher; Jeanne Bessouat
  6. Co-creation for policy: Participatory methodologies to structure multi-stakeholder policymaking processes By MATTI Cristian; RISSOLA Gabriel; MARTINEZ Paolo; BONTOUX Laurent; JOVAL Joan-Marc; SPALAZZI Annalisa; FERNANDEZ Damaris
  7. Work from home arrangements and organizational performance in Italian SMEs: Evidence from the COVIC-19 pandemic By Abrardi Laura; Grinza Elena; Manello Alessandro; Porta Flavio
  8. Digital adoption and productivity: understanding micro drivers of the aggregate effect By Natália Barbosa; Ana Paula faria
  9. Innovation and Competitiveness in the Copper Mining GVC: Developing Local Suppliers in Peru By Penny Bamber; Karina Fernandez-Stark; Oswaldo Molina

  1. By: Xiang Ding; Teresa C. Fort; Stephen J. Redding; Peter K. Schott
    Abstract: We document the role of intangible capital in manufacturing firms' substantial contribution to non-manufacturing employment growth from 1977-2019. Exploiting data on firms' “auxiliary” establishments, we develop a novel measure of proprietary in-house knowledge and show that it is associated with increased growth and industry switching. We rationalize this reallocation in a model where irms combine physical and knowledge inputs as complements, and where producing the latter in-house confers a sector-neutral productivity advantage facilitating within-firm structural transformation. Consistent with the model, manufacturing firms with auxiliary employment pivot towards services in response to a plausibly exogenous decline in their physical input prices.
    Keywords: structural transformation, professional services, intangible knowledge, economic growth
    JEL: D24 L16 O47
    Date: 2022–06
  2. By: Giotopoulos, Ioannis; Kritikos, Alexander S.; Tsakanikas, Aggelos
    Abstract: We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis.
    Keywords: Small firms,Large firms,R&D,Innovation,Productivity,Long-term Crisis
    JEL: L25 L60 O31 O33
    Date: 2022
  3. By: Paula Geralda Barbosa Coelho (PPGIT/UFMG); Márcia Siqueira Rapini (CEDEPLAR/UFMG)
    Abstract: The paper presents a mapping of the life trajectory of entrepreneurship and innovation of entrepreneurial professors in this area of Information Technology (IT) at the Federal University of Minas Gerais (UFMG), who converted knowledge and scientific assets into wealth. Data collection and qualitative analysis used the roadmapping method, adapted by the author, which was useful to elucidate the main strategies mobilized by entrepreneurial professors and understand how they undertook, innovated, and carried out knowledge and technology transfer (KTT). The results presented in this work demystify the patent as the only channel for the creation and distribution of value in the IT sector and indicate that the use of several TCT channels and various strategies can lead to a considerable creation and distribution of value.
    Keywords: Academic entrepreneurship, Entrepreneurial professors, Retrospective roadmapping, Information technology, Knowledge and technology transfer.
    JEL: O31 I23
    Date: 2022–06
  4. By: Laurence Viale (Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg); Stéphano Vacher (Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg); Jeanne Bessouat (Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg)
    Abstract: Purpose: In a context of ecological transition, this study aims to explore and understand what fosters the participation of purchasing departments and identify the drivers and difficulties encountered during the development of eco-innovation within firms. Design/Methodology/Approach: We adopt a qualitative methodology that provides tools to study complex phenomena. In-depth interviews with highly knowledgeable respondents from multisectoral organisations enable us to explore the eco-innovation process within firms. Findings: From the perspectives of resource-based theory and stakeholder theory, the study contributes to the literature by investigating firms' internal resources and exploring further dimensions based on sustainable SCM and purchasing. Internal stakeholders (e.g., purchasing agents) and external stakeholders (e.g., suppliers) were identified with regard to the business eco-innovation activities of focal companies in relation to upstream stakeholders. We examine this complex phenomenon by raising certain intra-and inter-organisational factors, as well as more individual aspects, such as the sensitivity of the purchasing manager to ecological transition. Purchasing agents are involved in increasing the propensity of organisations to eco-innovate and, as internal stakeholders, appear to be influential in ecoinnovation. Originality: The study provides new insights into the constituent resources needed for purchasing participation during eco-innovation in order to achieve sustainable competitive advantage. This paper is an initial attempt at research in the area. Practical implications: This study presents an opportunity for purchasing managers to understand challenges more comprehensively in order to add value within the eco-innovation process. The results highlight recommendations for how best to undertake eco-innovation in upstream supply chains. Research limitations/implications: Given the nascent state of eco-innovation practice and accessibility to primary data about ongoing efforts, this research could not consider all possible drivers.
    Keywords: Innovation,Purchasing,Resource Based View,Green supply chains,Ecological efficiency,Stakeholders Eco-innovation,Ecological transition,Purchasing management,RBV,Stakeholder theory,Eco-innovation
    Date: 2022–02–17
  5. By: Sander Sõna; Jaan Masso; Shakshi Sharma; Priit Vahter; Rajesh Sharma
    Abstract: This paper investigates which of the core types of innovation can be best predicted based on the website data of firms. In particular, we focus on four distinct key standard types of innovation – product, process, organisational, and marketing innovation in firms. Web-mining of textual data on the websites of firms from Estonia combined with the application of artificial intelligence (AI) methods turned out to be a suitable approach to predict firm-level innovation indicators. The key novel addition to the existing literature is the finding that web-mining is more applicable to predicting marketing innovation than predicting the other three core types of innovation. As AI based models are often black-box in nature, for transparency, we use an explainable AI approach (SHAP - SHapley Additive exPlanations), where we look at the most important words predicting a particular type of innovation. Our models confirm that the marketing innovation indicator from survey data was clearly related to marketing-related terms on the firms' websites. In contrast, the results on the relevant words on websites for other innovation indicators were much less clear. Our analysis concludes that the effectiveness of web-scraping and web-text-based AI approaches in predicting cost-effective, granular and timely firm-level innovation indicators varies according to the type of innovation considered.
    Keywords: Innovation, Marketing Innovation, Community Innovation Survey (CIS), Machine learning, Neural network, Explainable AI, SHAP
    Date: 2022
  6. By: MATTI Cristian; RISSOLA Gabriel (European Commission - JRC); MARTINEZ Paolo; BONTOUX Laurent; JOVAL Joan-Marc; SPALAZZI Annalisa; FERNANDEZ Damaris
    Abstract: This handbook aims at helping its users to effectively co-create the powerful policies we need today. It combines an entrepreneurial way of thinking and a concrete process for developing breakthrough ideas that stand a high chance of producing real-world impact. It presents a practitioner-oriented narrative for the design and implementation of innovative participatory processes and workshops to address societal challenges – coordinated by policy-makers and with the active engagement of key stakeholders. It applies tried and tested self-organisation and design thinking principles for co-creation. The handbook provides practical steps and recommendations for the identification of synergies among stakeholders across territories, sectors and levels. It shows how to ensure optimal knowledge management and efficient communication to optimise resources use, policy convergence and the achievement of positive results when designing or implementing policy. By combining community engagement and knowledge management services, the handbook highlights how participatory processes can be embedded in the policymaking cycle with a view to improve the societal value of generating collaborative innovation, good will and co-created evidence for informing policymaking.
    Keywords: smart specialisation, S3, sustainability, S4, green deal, digital transition, entrepreneurial discovery process, EDP, quadruple helix, QH, 4H, participatory approach, stakeholders engagement, collaboration, co-creation, policy innovation, regional innovation, regional development, urban development, conference of Europe, policy lab, innovation camp
    Date: 2022–06
  7. By: Abrardi Laura (DIGEP, Politecnico di Torino, Italy); Grinza Elena (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; CEBRIG Université Libre de Bruxelles; LABORatorio Riccardo Revelli); Manello Alessandro (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; IRCrES-CNR); Porta Flavio (Department of Economics, University of Bergamo, Italy)
    Abstract: We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers' concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers' concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH.
    Keywords: Work From Home (WFH), Teleworking, Agile Working, Smart Working, Organizational Performance, Labor Productivity, Management by Objectives (MBO), COVID-19, Small- and Medium-sized Enterprises (SMEs), Survey Data.
    JEL: D23 D24 M54
    Date: 2022–07
  8. By: Natália Barbosa (Universidade do Minho); Ana Paula faria (Universidade do Minho)
    Abstract: Digital technologies have the scope to engender positive effects on productivity at firm and aggregate level. However, empirical evidence and theoretical contributions are ambiguous as mixed findings and diverse explanations have been put forward. We use a rich and representative sample of Portuguese firms over the period 2014-2019 to empirically assess the relationship between digital technologies adoption and productivity. Based on estimations over the entire distribution of firm’s productivity, we find that heterogeneous digital technologies affect differently the dynamics of productivity and the convergence to the frontier. This leads to mixed findings with scope to diverse impact in the aggregate productivity. Moreover, positive and significant effects on productivity require an upgrading on the degree of sophistication and complementarity among digital technologies and benefit from the ability of firms to interact and learn with digitalised peers in the same industry.
    Keywords: Digital technologies, Productivity, Spillover effects
    JEL: L20 H81 L25
    Date: 2022–06
  9. By: Penny Bamber (Duke Global Value Chains Center); Karina Fernandez-Stark (Duke Global Value Chains Center); Oswaldo Molina (Universidad del Pacifico)
    Abstract: Although Peru is one of the main producers of copper worldwide, the domestic industry has not yet taken fully advantage of the potential that the exploitation of this commodity offers. This paper explores the opportunities and challenges that Peruvian supplier face in their insertion into the mining global value chain. Our analysis is based on a mixed-methods approach, combining both quantitative and qualitative primary and secondary sources, including semi-structured interviews with key actors of the Peruvian mining sector. Our findings suggest that the weak presence of Peruvian suppliers in a sector dominated by few foreign firms is due to global industry dynamics as well as the underdeveloped capabilities of local firms operating in a fragile local institutional setting. However, opportunities for their insertion are primarily in areas where new solutions are required, which places a demand on the supplier’s innovative capacity.
    Keywords: Mining; Peru; Copper; Global Value Chain, Innovation, Local Suppliers
    Date: 2022–07

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