nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒01‒16
ten papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Survival Strategies Under Sanctions: Firm-Level Evidence from Iran By Iman Cheratian; Saleh Goltabar; Mohammad Reza Farzanegan
  2. Air Pollution and Firm-Level Human Capital, Knowledge and Innovation By Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H.
  3. Patents that Match your Standards: Firm-level Evidence on Competition and Growth By Bergeaud Antonin; Schmidt Julia; Zago Riccardo
  4. On GVC and Innovation: What Is at Stake? By Yasmine Eissa; Chahir Zaki
  5. Management of Big data: An empirical investigation of the Too-Much-of-a-Good-Thing effect in medium and large firms By Claudio Vitari; Elisabetta Raguseo; Federico Pigni
  6. Research on College Students' Innovation and Entrepreneurship Education from The Perspective of Artificial Intelligence Knowledge-Based Crowdsourcing By Yufei Xie; Xiang Liu; Qizhong Yuan
  7. The Impact Of Family Ties And Founder Involvement On Innovation In High-Tech Firms By Anastasia N. Stepanova; Polina A. Khmeleva
  9. Resource Productivity and Eco-Innovation Convergence in the Service of Sustainability. Evidence from the EU-28 By Nikos Chatzistamoulou; Phoebe Koundouri
  10. Impact of New Technologies on Economy and Society: A literature Review By Driskell, David

  1. By: Iman Cheratian (Tarbiat Modares University); Saleh Goltabar (Tarbiat Modares University); Mohammad Reza Farzanegan (Philipps-Universität Marburg)
    Abstract: Given the importance of firm strategic management in time of crises, this study investigates Micro, Small, and Medium Enterprises (MSMEs) survival strategies during the international sanctions against Iran. Using data from a questionnaire of 486 firms between December 2019 to September 2020, we found that firm strategies in reducing research and development (R&D) expenditures, marketing costs, and fixed/overhead costs and investing in information technology (IT) are positively related to their survivability. Conversely, managerial decisions to “reduce production” and “staff pay cut/freeze” have negative and significant impacts on a firm’s ability to survive during sanctions. Moreover, micro firms are more resilient than their small and medium counterparts. The findings also confirm that age has a significant and positive impact on firm survival. Finally, the results show that having a business plan, access to finance and technology, owner education, export orientation, business networking and consulting services are the key drivers of withstanding the pressure from sanctions.
    Date: 2022–08–20
  2. By: Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H.
    Abstract: This paper investigates the long-run effects of prolonged air pollution on firmlevel human capital, knowledge and innovation composition. Using a novel firm-level dataset covering almost all industrial firms engaged in science and technology activities in China, and employing a regression discontinuity design, we show that prolonged pollution significantly diminishes both the quantity and the quality of human capital at the firm level. More specifically, we show that air pollution affects firm-level human capital composition by reducing the share of employees with a PhD degree and master’s degree, but instead increasing the share of employees with bachelor’s degree. Moreover, the difference in the composition of human capital materially change the knowledge and innovation structure of the firms, with our estimates showing that pollution decreases innovations that demand a high level of creativity, such as publications and inventions, while increasing innovations with a relatively low level of creativity, such as design patents. Quantitatively, on the intensive margin, one μg/m 3 increase in the annual average PM 2.5 concentration leads to a 0.188 loss in the number of innovations per R&D employee. Overall, we show that air pollution has created a gap in human capital, knowledge, and innovation between firms in the north and south of China, highlighting the importance of environmental quality as a significant factor for productivity and welfare.
    Keywords: Pollution, human capital, knowledge, innovation, China
    JEL: O15 O30 O44 Q51 Q56
    Date: 2023–01–03
  3. By: Bergeaud Antonin; Schmidt Julia; Zago Riccardo
    Abstract: When a technology becomes the new standard, the firms that are leaders in producing this technology have a competitive advantage. Matching the semantic content of patents to standards and exploiting the exogenous timing of standardization, we show that firms closer to the new technological frontier increase their market share and sales. In addition, if they operate in a very competitive market, these firms also increase their R&D expenses and investment. Yet, these effects are temporary since standardization creates a common technological basis for everyone which allows followers to catch up and the economy to grow.
    Keywords: Standardization, Patents, Competition, Innovation, Text Mining
    JEL: L15 O31 O33
    Date: 2022
  4. By: Yasmine Eissa (Cairo University); Chahir Zaki (Cairo University)
    Abstract: This paper empirically investigates the impact of global value chains (GVC) participation on countries’ innovation performance. Highlighting the learning effect of foreign knowledge embedded in imported intermediate goods counters the argument that GVC participation is biased towards developed countries with skilled labor abundance. We construct a GVC knowledge spilloversindex by merging data on GVC from the EORA26 dataset with R&D of the trade partner. Results show a positive and significant effect of the GVC knowledge spillovers index on innovation measured by resident patent per capita. Likewise, we show that the quality of institutions, intellectual property agreements, competition policy and trade policy constitute a pile of interfering preconditions in the nexus between GVC participation and innovation. Our results remain robust when we use an instrumental variable approach to control for the endogeneity between GVC and innovation and when we use alternative measure for our two variables of interest
    Date: 2022–09–20
  5. By: Claudio Vitari (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Elisabetta Raguseo (Polito - Politecnico di Torino = Polytechnic of Turin); Federico Pigni (EESC-GEM Grenoble Ecole de Management)
    Abstract: Firms adopt Big data solutions, but a body of evidence suggests that Big data in some cases may create more problems than benefits. We hypothesize that the problem may not be Big data in itself but rather too much of it. These kinds of effects echo the Too-Much-of-a-Good-Thing (TMGT) effect in the field of management. This theory also seems meaningful and applicable in management information systems. We contribute to assessments of the TMGT effect related to Big data by providing an answer to the following question: When does the extension of Big data lead to value erosion? We collected data from a sample of medium and large firms and established a set of regression models to test the relationship between Big data and value creation, considering firm size as a moderator. The data confirm the existence of both an inverted U-shaped curve and firm size moderation. These results extend the applicability of the TMGT effect theory and are useful for firms exploring investments in Big data.
    Keywords: Too-Much-of-a-Good-Thing effect,inverted U-shaped curve,Big data,business value,medium and large firms
    Date: 2022
  6. By: Yufei Xie; Xiang Liu; Qizhong Yuan
    Abstract: Based on the practical process of innovation and entrepreneurship education for college students in the author's university, this study analyzes and deconstructs the key concepts of AI knowledge-based crowdsourcing on the basis of literature research, and analyzes the objective fitting needs of combining AI knowledge-based crowdsourcing with college students' innovation and entrepreneurship education practice through a survey and research of a random sample of college students, and verifies that college students' knowledge and application of AI knowledge-based crowdsourcing in the learning and practice of innovation and entrepreneurship The study also verifies the awareness and application of AI knowledge-based crowdsourcing knowledge by university students in the learning and practice of innovation and entrepreneurship.
    Date: 2022–12
  7. By: Anastasia N. Stepanova (National Research University Higher School of Economics); Polina A. Khmeleva (National Research University Higher School of Economics)
    Abstract: This paper investigates the impact of family participation and founder involvement in business on innovation in high-tech companies from the S&P500 index over the period 1999–2017. We demonstrate that the family firm paradox (family firms tend to invest less in innovation while remaining more efficient in innovation output) is not so obvious for technological companies. We conclude that founder involvement and CEO ownership leads to higher R&D expenditures and income margins in the pharma and IT sectors. However, consistent with previous studies of family participation, family ownership and holding the offices of CEO and chairman, has a negative impact on amounts spent on innovation.
    Keywords: Family firms, founder, risk-taking, behavioral finance, corporate governance
    JEL: G30 G39
    Date: 2022
  8. By: Kashika Arora (Research Scholar, Indian Institute of Foreign Trade, New Delhi); Areej A. Siddiqui (Assistant Professor, Indian Institute of Foreign Trade, New Delhi)
    Abstract: This paper aims at determining how technological capabilities interact with trade and global value chains (GVCs) participation to aid in the upgradation process. By constructing a panel data set and analysing through FGLS modelling, we observe trade performance of 14 developing countries from 2000 to 2018. It is found that technological capabilities determine the initial structure of local firms in trade and GVCs and they also deliberate the extent to which local firms in developing countries manage to leverage knowledge flows and move into activities of greater technological complexity in accordance with their existing comparative advantages. The results point to the critical role of national learning variables impacting countries’ performance over time measured by manufacturing value added. While emerging economies have synergistic relationships between variables explaining technological capabilities and trade and GVC performance, however, certain innate country effects have also their role to play.
    Keywords: Trade, global value chains (GVCs), technological capabilities, developing countries, panel data.
    JEL: F14 O14 O19 O31
    Date: 2021
  9. By: Nikos Chatzistamoulou (AUEB); Phoebe Koundouri
    Abstract: The European Green Deal prioritizes green growth through resource efficiency and eco-innovation to achieve the transition in a sustainable and inclusive growth orbit. To monitor progress in such endeavor the EU Resource Efficiency Scoreboard was launched. Focusing on the resource productivity, which is the main sustainability development indicator and policy evaluation tool for Europe and the eco-innovation performance of the EU-28 over a twenty-year period, from 2000 though 2019, we explore convergence patterns and club formation. Descriptive analysis via growth rates of the resource productivity and eco-innovation indicates productivity differentials among the countries giving rise to heterogeneity groups. Econometric results using convergence algorithms advocate in favor of convergence for both variables. However, convergence clubs surface highlighting that there is heterogeneity to consider when designing policies to promote sustainability transition to ensure that no one is left behind serving the priority of inclusive and sustainable growth.
    Keywords: Resource Productivity, Eco-Innovation, Sustainability, Convergence, Technological Heterogeneity, European Green Deal
    Date: 2022–12–15
  10. By: Driskell, David
    Abstract: Technology plays an important role in identifying phenomena in society that are difficult to identify and analyse using more conventional methods. The economic and social technologies are particularly affected by this. As a result, technology has tended to represent reality in low-dimensional fashion without considering its realistic impact. A growing amount of detailed information is available about economic and social phenomena, making tools that exploit this informational abundance particularly useful. As a consequence, virtually every field of knowledge within the social sciences has been opened up to fascinating new perspectives. Many economists and social scientists believe that technological advancements are one of the primary drivers of economic growth in countries, regions, and cities. As a result of technological advancement, more and better goods and services can be produced more efficiently, which is what contributes to prosperity. In this article, the author has attempted to do a detailed study and review of leading books in the field of technology as well as its impact on the economy and society. Understanding the current and future impact of technology and innovation would be extremely beneficial. Technology has changed not only how we produce and connect, but also allows more humans to create and test new objects and ideas, reducing the costs and risks of innovation, and product development, also in developing countries. Collaboration between the public and private sectors is essential to the success of the digital age. To avoid monopolies and protect citizens, governments and regulators must ensure that regulation keeps pace with innovation. The author is optimistic that fears over future employment will subside as we adopt more and more new technologies and enjoy their benefits. We are poised to experience widespread change in the coming years, which makes the future seem more promising.
    Keywords: New Technologies and Economy, Society and Technology, Impact of Technology on Economy, Change and Technology, Future Employment and Technology
    JEL: O1 O3 O32 O33 Q55
    Date: 2022–12–21

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