nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2022‒11‒28
five papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. DUI it yourself: Innovation and activities to promote learning by doing, using, and interacting within the firm By Silje Haus-Reve; Rune Dahl Fitjar; Andres Rodriguez-Pose;
  2. Dynamic capabilities, competitiveness and performance of small and medium-sized enterprises: a systematic literature review By Mohamed MANSOURI; Cheklekbire Malainine; Hayat Souti; Ikram Cadimi
  3. Trade secret protection and R&D investment of family firms By Hussingera, Katrin; Issahd, Wunnam
  4. The Role of Immigrants, Emigrants, and Locals in the Historical Formation of Knowledge Agglomerations By Philipp Koch; Viktor Stojkoski; C\'esar A. Hidalgo
  5. Global Knowledge and Trade Flows: Theory and Measurement By Nelson Lind; Natalia Ramondo

  1. By: Silje Haus-Reve; Rune Dahl Fitjar; Andres Rodriguez-Pose;
    Abstract: Implicitly or explicitly, much innovation policy treats investments in research and development (R&D) as the main input to innovation. A large body of literature in innovation studies has challenged this, highlighting the role of external sources of innovation and of innovation based on learning by doing, using and interacting (DUI). Nonetheless, there has been limited empirical research on how firm-internal activities to promote DUI affect innovation, and on how important such activities are relative to internal R&D and to external sources of knowledge. We also know little about how internal DUI activities interact with internal R&D and with external knowledge sourcing. We address these gaps using Norwegian Community Innovation Survey data from 2010. We find that internal DUI is an important driver of new-to-market product innovation. Further, the results show partial substitution effects between internal DUI and internal R&D, as well as between internal DUI and external DUI.
    Keywords: Innovation; Experience-based knowledge; STI; DUI; Firms
    Date: 2022–10
  2. By: Mohamed MANSOURI (UIT - Université Ibn Tofaïl); Cheklekbire Malainine; Hayat Souti; Ikram Cadimi
    Abstract: Dynamic capability theory was developed as part of the Resource Based View (RBV) to explain business performance and the notion of competitive advantage. The objective of this article is to offer a systematic overview of the scientific literature around the theory of Dynamic Capacities (DCs in relation to the performance of Small and Medium Enterprises (SME), it aims to explore how the theory of DCs has been approached by different authors in an SME context, and to examine the contribution of DCs to performance and their competitive advantage. One hundred and fifty-five relevant scientific contributions from 22 journals between 1997 and 2021 were analyzed through careful classification according to discipline, method and country. This literature review offers a summary of the state of the art and shares various trends and developments regarding this emerging research area. Among other things, it demonstrates the existence of conceptual ambiguities, different definitions and a lack of qualitative articles: this contributes to a wide range of research topics. Our analysis shows that DCs have received higher corroboration in the SME context than in the large enterprise context (Pezeshkan et al., 2016), and also a higher level of empirical support than RBV (Newbert, 2007)and other approaches in strategic management research such as transaction cost theory (David & Han, 2004). Thus, a need for empirical evidence and production of an explanatory nature is also noted: many hypotheses on the contribution of DCs to the competitive advantage of SMEs remain to be demonstrated. Moreover, this work highlights the significant and generally positive contribution of DCs to the performance of SMEs.
    Keywords: Dynamic capabilities,Small and Medium Enterprises,Resource Based View,competitive advantage,performance. JEL Classification: M19 Paper type: theoretical Research
    Date: 2022–09–30
  3. By: Hussingera, Katrin; Issahd, Wunnam
    Abstract: Family firms are known for their reluctance to invest in research and development. We show that strengthened trade secret protection is associated with higher R&D investment by family firms. More specifically, we show that the association between the strength of trade secret protection through the U.S. Uniform Trade Secrets Act and R&D investment is positively moderated by family control. Our results further show that the positive moderation of family control on the association between the strength of trade secret protection and R&D investment varies with the industry context, being stronger in high tech industries and weaker in discrete product industries.
    Keywords: Family firms,intellectual property protection,trade secret protection,UTSA,R&Dinvestment,socioemotional wealth
    JEL: O34 O32 G32 M14
    Date: 2022
  4. By: Philipp Koch; Viktor Stojkoski; C\'esar A. Hidalgo
    Abstract: Did migrants help make Paris a center for the arts and Vienna a beacon of classical music? Or was the rise of these knowledge agglomerations a sole consequence of local actors? Here, we use data on the biographies of more than 22,000 famous historical individuals born between the years 1000 and 2000 to estimate the contribution of famous immigrants, emigrants, and locals to the knowledge specializations of European regions. We find that the probability that a region develops a specialization in a new activity (physics, philosophy, painting, music, etc.) grows with the presence of immigrants with knowledge on that activity and of immigrants specialized in related activities. We also find that the probability that a region loses one of its existing areas of specialization decreases with the presence of immigrants specialized in that activity and in related activities. In contrast, we do not find robust evidence that locals with related knowledge play a statistically significant role in a region entering or exiting a new specialization. These findings advance our understanding of the role of migration in the historical formation of knowledge agglomerations.
    Date: 2022–10
  5. By: Nelson Lind; Natalia Ramondo
    Abstract: We study the global innovation and diffusion of ideas by introducing trade into the model in Eaton and Kortum (1999) (EK). This extension allows us to use international trade flows and country-level factor costs to estimate both the intensity of innovation within countries over time and diffusion rates across countries. We find significant specialization across the globe: some countries have high innovation rates, while other countries rely on diffusion. Although innovation is correlated with economic growth, there are many high income countries that primarily produce using diffused ideas. Additionally, these patterns shift over time — we estimate that a wave of innovation began in China during the early-2000’s, reducing its reliance on diffused technology.
    JEL: F1 O3 O4
    Date: 2022–10

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