nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒03‒06
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Who Learns More from Afar? Spatial Empirical Evidence on Manufacturing and Services By Nina Vujanović
  2. By Rayane Rezak; Assia Djenouhat; Hamid Kherbachi
  3. Playing the innovation subsidy game: experience, clusters, consultancy, and networking in regional innovation support By Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
  4. A German Digital Grand Strategy: Integrating Digital Technology, Economic Competitiveness, and National Security in Times of Geopolitical Change By Barker, Tyson; Hagebölling, David
  5. Bilateral modern services trade between India and Latin America and the Caribbean in the context of the COVID-19 pandemic By Agarwal, Prachi
  6. Campus as a sustainable tech showroom: Inter-disciplinary decision criteria for innovation implementation on the Dutch university campus By Mathilda du Preez; Alexandra den Heijer; Monique Arkesteijn
  7. Expanding Corporate Use of Artificial Intelligence By Choi, Mincheol; Song, Danbee; Cho, Jaehan
  8. Barriers to entrepreneurial intention among students of economics and management in Ho Chi Minh City By Thy, Nguyen Vo Thy
  9. Idiosyncratic Dynamic Capabilities and Institutional Blockchain-driven Land Information Management in Developing Countries By Nonso Ewurum; Kenechi Ifeanacho; Okwuchi Juliet Akalemeaku; Ezinne Onyekwelu

  1. By: Nina Vujanović (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper investigates spatial dependence of FDI knowledge spillovers in manufacturing and services using spatial panel techniques applied to the 2006-2014 Bureau Van Dijk’s Amadeus firm-level dataset for Croatia and Slovenia. The paper finds diverse results across the two sectors. The distance between regions does not hinder the absorption of foreign knowledge in manufacturing despite the strong market-stealing effects operating within regions as well as spatially. On the other hand, FDI knowledge spillovers decrease service productivity within regions, because of market-stealing effects operating strongly across a smaller geographical scale. However, its impact is lost as knowledge spillovers from more distant neighbours are accounted for, because the poaching of local labour is impeded by distance due to rising costs of labour mobility. The research indicates that for knowledge absorption, geographic distance plays differing roles in manufacturing and services, due to the different nature of the production process.
    Keywords: knowledge spillovers, FDI, spatial econometrics, manufacturing, services
    JEL: F23 L6 L8 L2 O3 O4
    Date: 2023–02
  2. By: Rayane Rezak (Université Abderrahmane Mira [Béjaïa]); Assia Djenouhat (University of Algiers 3 : Université d' Alger 3); Hamid Kherbachi (Université Abderrahmane Mira [Béjaïa])
    Abstract: This research sought to determine the strength and nature of relationship between innovation capability and the application of sustainable development pillars. A questionnaire was designed and handed or sent to the employees of Djen Djen Port international .It was established that a moderate almost strong positive correlation existed between innovation management capability and the implementation of sustainable development pillars in the port company.
    Keywords: innovation management sustainable development capability pillars, Port Company. JEL Classification Codes: O32, Q50, innovation management, sustainable development, capability, pillars
    Date: 2022–12–04
  3. By: Rodríguez-Pose, Andrés; Belso-Martinez, Jose Antonio; Díez-Vial, Isabel
    Abstract: Government support to promote firm-level innovation is seen as a crucial factor for economic growth. This support is frequently channeled through firm-level subsidies. Despite their relevance within the policy portfolio, there is an open academic debate on whether subsidies are effective for innovation. This is by no means related to a potential inadequacy of subsidies, but because the mechanisms of assignment may be unsatisfactory. We argue that this may be the case when subsidies are awarded to larger firms with a solid international and innovative trajectory or to those that know how toplay the system, ” rather than to the most deserving firms and projects. To test whether this is the case, we use data from 17, 866 applicants for innovation subsidies managed by the Valencian Institute of Competitiveness. We find that firms with specific knowledge accrued through previous submissions, public funding and grant consultancy or cluster location, are the main beneficiaries of public innovation support, generally at the expense of more promising candidates that lack the know-how to navigate a complex and often flawed process. This inertia gets policy-makers stuck in a sub-optimal assignment system that should be deeply reconsidered.
    Keywords: clusters; consultancy services; innovation policy; networks; previous subsidy experience
    JEL: R14 J01 J1
    Date: 2021–12–01
  4. By: Barker, Tyson; Hagebölling, David
    Abstract: This report systematically outlines the state of play in digital policy and Berlin’s current policy approach. It provides 48 recommendations for strengthening Germany’s efforts to build a confident, high-performing European digital economy embedded in an open, democratic, and rules-based digital order.
    Keywords: Digital Policy, Digital Technology, Economic Competitiveness, National Security, Foreign Policy, International Politics, International Relations, Geopolitics, European Union, Germany, Grand Strategy, Diplomacy
    JEL: F5 O3 L5 L63
    Date: 2022
  5. By: Agarwal, Prachi
    Abstract: The Information Technology enabled Services sector (also referred to as modern services) has been one of the fastest growing segments of India’s exports to and foreign direct investment in Latin America and the Caribbean (LAC) over the past decade. This sector also showed significant resilience during the COVID-19 pandemic, as many Indian firms were able to reinforce their digital transformation, which strengthened their growth and export potential. India’s main comparative and competitive advantages are its large educated workforce, a developed Information and communication technologies (ICT) related infrastructure, and strong innovation performance in this sector. However, imports in this sector remain more restricted both in India and LAC than those in other sectors due to various regulations. There is also scope to increase access and use of modern services businesses and individuals alike in India and LAC.
    Date: 2022–12–16
  6. By: Mathilda du Preez; Alexandra den Heijer; Monique Arkesteijn
    Abstract: A clear university management vision for sustainability in the campus built-environment by 2030, coupled with continual encouragement to bring about an impact for a better society, and unparalleled access to un- or partly demonstrated innovative technologies at universities, provide the ideal environment to use campus as a living laboratory. However, changing the university campus into a testing and demonstration platform of new technology poses a particular challenge to Campus Real Estate (CRE) management units. New technology and innovation are by nature undemonstrated over the longer term, new and risky when compared to business-as-usual, and stakeholders in the process of implementation do not have clear performance indicators for innovation implementation. Innovation implementation decisions on campus is therefore an inter-disciplinary balancing act. In this study, two approaches to identify the decision making criteria and decision points for innovation assessment and implementation were used. A multi-criterion decision making process, using an expert model and verification approach (Chorus, Ten Broeke, et al., 2021) was used to develop a transparent model highlighting decision-making preferences for innovation implementation on campus. This process focusses on capturing and reiterating expert decisions for numerous innovations. However, due to the unique nature of innovations, the benefits of an expert model might be limited. We therefore also used the Preference-based Accommodation Strategy (PAS) method (Arkesteijn, 2019) to identify decision making criteria. The value of the PAS method is twofold, first, in its essential consideration of the broader requirements from four stakeholder perspectives in real estate management (den Heijer, 2011) which is especially important in inter-disciplinary decision making; second, in its systematic compilation of preference scores along the identified decision criteria. Initial indications are that innovations with clear added value in sustainability, education and research, which are simple, aligned to current systems and relatively easily embedded in current regulation, as well as representing low financial, construction and operational risks are preferred. However, both research approaches go beyond identification of the decision-making criteria by plotting the acceptable levels of alignment, benefit and risk as informed by a broad panel of stakeholders. The result is a first, clear view on the elements and preference points used in the balancing act which is necessary to facilitate a safe, thriving technologically advanced and innovative campus. Finally the two decision making models are assessed on their ease of use, attractiveness and effectiveness, elements identified by Visser (2016) for assessment of decision support tools.
    Keywords: campus real estate; Decision-making; Innovation implementation; sustainability
    JEL: R3
    Date: 2022–01–01
  7. By: Choi, Mincheol (Korea Institute for Industrial Economics and Trade); Song, Danbee (Korea Institute for Industrial Economics and Trade); Cho, Jaehan (Korea Institute for Industrial Economics and Trade)
    Abstract: Despite interest in artificial intelligence (AI) as a transformative driver of economic growth, few Korean companies use AI. Companies currently using AI are increasing their AI investments and expenditures. Companies employ AI in a wide range of functions and fields including automated operations, predictive analytics, product and service development, and sales and inventory management Challenges to the application and use of AI exist in multiple, closely-connected domains. Challenges include human capital scarcity, inadequate funding, the difficulty of acquiring technology, and both the internal and external business environments confronting companies. This work analyzes the barriers to increased corporate adoption of AI technologies and proposes a set of policy suggestions to improve AI uptake at Korean companies.
    Keywords: artificial intelligence; AI; AI adoption; productivity; firm productivity; corporate productivity; STEM; skilled labor; information technology; IT; information and communications technology; ICT; R&D; research and development; innovation; innovation policy; AI policy; regulation; personal data
    JEL: E24 H52 I28 J24 O32 O38
    Date: 2021–04–04
  8. By: Thy, Nguyen Vo Thy
    Abstract: This study aims to investigate the effects of barriers on entrepreneurial intention among Economics and Management students in Ho Chi Minh City and then analyze and evaluate the impact of these barriers. The authors used 3 main models: Entrepreneurial Event Model – EEM, Model of Implementing Entrepreneurial Ideas, and Theory of Planned Behavior – TPB. The data were collected from 312 students at Economics and Management universities in Ho Chi Minh City. Next, the authors employed quantitative methods such as descriptive statistics, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), HTMT test, structural equation modeling (SEM), Bootstrapping, and Kruskal - Wallis test using SPSS 20 and AMOS 24 softwares. The results showed that 4 independent variables had an effect on entrepreneurial intention, including Mental Barriers, Market Barriers, Educational Environment Barriers, and Knowledge Barriers. Particularly, Mental Barriers were seen as the most influential barriers to entrepreneurial intention. It was implied that the spirit, knowledge, and business environment were really a concern for students in the start-up stage, and educational background such as knowledge and encouragement of teachers also affected the entrepreneurial intention of Economics and Management students. Additionally, there were 5 groups with statistically significant differences in the students’ Entrepreneurial Intentions: (1) Gender, (2) School year, (3) University, (4) Major, and (5) Parents' careers. The study has filled a research gap by providing important insights into the barriers to entrepreneurial intention among Economics and Management students in Ho Chi Minh City. In practical terms, it helps students recognize obstacles and how to overcome them when making decisions while establishing a business. This study also provides educators and policymakers with solutions and governance implications for driving students' entrepreneurial intentions.
    Date: 2023–01–05
  9. By: Nonso Ewurum; Kenechi Ifeanacho; Okwuchi Juliet Akalemeaku; Ezinne Onyekwelu
    Abstract: Empiricism on institutional land administration in developing countries have historically and currently conveyed an anthology of process delays, database mismanagement, titling irregularities and data falsification encumbrances to real estate investment. In spite of these lingering information management deficiencies, a common argument does appear in extant research that the plethora of scholarly and cross-industry demonstrations of blockchain data management and security capacities and propensities are seemingly overlooked by land information managers in this region, especially in the focus area of Sub-Saharan Africa. The paper offers an instantiation for the validation of the Dynamic Capabilities Theory as predictor for blockchain-driven re-engineering of land information management processes in the area. The objectives of the study were to identify encumbrances of blockchain adoption in land information management in the study area, and to examine idiosyncratic dynamic capabilities which can be deployed in their attenuation. The methodology was a systematic review of related indexed studies which premised the theorizing of nexuses between idiosyncratic dynamic capabilities and organizational performance hindrances. From the findings of the study, pathways to a research agenda were established using 5 testable propositions for land information management. The paper promotes a theoretical framework for better understanding of the prospects of dynamic capabilities theory in engendering an improved and sustainable land information management system in the developing countries.
    Keywords: Blockchain technology; Disruptive technologies; Dynamic capabilities theory; Land information management system
    JEL: R3
    Date: 2022–01–01

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