nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒04‒24
eight papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Startup Village Conceptualisation By GOODWIN-HAWKINS Bryonny; GUZZO Fabrizio; MERIDA MARTIN Fernando; SASSO Simone
  2. Breakthrough Innovations and Productivity: An International Perspective By Kuusi, Tero; Nevavuo, Jenni
  3. Value Creation in Start-Up Discourse: Linking Pitch and Venture Through Logics of Justification By German Varas; Omar Sabaj; Clay Spinuzzi; Miguel Fuentes; Valentin Gerard; Paula Cabezas
  4. Customers’ Perceptions of FinTech Adaptability in the Islamic Banking Sector: Comparative study on Malaysia and Saudi Arabia By Oladapo, Ibrahim Abiodun; Hamoudah, Manal Mohammed; Alam, Md. Mahmudul; Muda, Ruhaini; Olaopa, Olawale Rafiu
  5. Survey on Supply Chains and Management of Technical Know-how (Japanese) By OKAZAKI Yurie; SAITO Kosuke; TSUCHIYA Takahiro; SAHASHI Ryo
  6. Shari’ah Governance Quality and Environmental, Social and Governance Performance in Islamic Banks. A Cross-Country Evidence. By Yossra Boudawara; Kaouther Toumi; Amira Wannes; Khaled Hussainey
  7. Changes in and Insights on Potential Industry and Enterprise Insolvency in the Manufacturing Sector By Oh, Young-Seok; Park, Sung Keun
  8. Synergies and trade-offs between climate and circular economy policies in the steel industry By Calzadilla, Alvaro; Winning, Matthew; Domenech, Teresa

  1. By: GOODWIN-HAWKINS Bryonny; GUZZO Fabrizio (European Commission - JRC); MERIDA MARTIN Fernando (European Commission - JRC); SASSO Simone (European Commission - JRC)
    Abstract: The European Commission’s long-term vision for the EU’s rural areas identifies several areas of action towards stronger, connected, resilient and prosperous rural areas and communities by 2040. A flagship action on research and innovation aims to help tackle the challenges towards fulfilling rural potential. An annual Startup Village Forum is part of this action. The Forum intends to promote knowledge exchange and cooperation activities and to work as an open and inclusive space where institutions and stakeholders can meet, discuss and shape actions for startup-driven innovation in rural areas. Drawing upon the scientific literature, in this report we develop the Startup Village concept and define it as "A place (or a network of small places) that embraces innovation and ambitious entrepreneurship as a way to unlock development potential and support wellbeing in rural areas". Next, we explore the key enabling factors of Startup Villages- discussing in particular the pivotal role played by the ecosystem in enabling innovation and entrepreneurship - and outline the Startup Village Forum’s facilitating role.
    Keywords: rural innovative entrepreneurship, rural innovation, rural entrepreneurship, rural development, rural areas, growth, startups, SMEs, innovation ecosystem, RDI, Research, Technology and Innovation
    Date: 2023–02
  2. By: Kuusi, Tero; Nevavuo, Jenni
    Abstract: Abstract In this paper, we shed new light on the productivity impact of breakthrough patents, as well as their role in the variability of productivity across countries. We use text analysis and machine learning–based estimates of the number of breakthrough patents and show that there was a significant drop in quantity in the early 2000s. According to our econometric analysis, the slowdown in innovation activity has a clear temporal connection with the later slowdown in productivity in the 2010s. Breakthrough patents increased productivity on a large scale until the beginning of the 2010s, in particular in industrial information and communications technology (ICT) industries. In sectors other than ICT, productivity growth was more differentiated so that productivity growth is observed in industries that invested significantly in R&D after the emergence of breakthrough patents. We also identify large differences across countries in the link between productivity and breakthrough patents.
    Keywords: Productivity, Innovation, Breakthroughs, Patents
    JEL: D24 O31 O33
    Date: 2023–03–31
  3. By: German Varas (UR - Université de Rennes); Omar Sabaj (USERENA - Universidad de La Serena); Clay Spinuzzi (University of Texas at Austin [Austin]); Miguel Fuentes (USERENA - Universidad de La Serena); Valentin Gerard (UR - Université de Rennes); Paula Cabezas (USERENA - Universidad de La Serena)
    Abstract: How do start-ups create value through the language of their business pitches? In this article, we investigate that question by identifying the logics of justification they use, traditionally conceptualized as orders of worth. In this study of short written pitches in a 6-month Chilean accelerator program, we describe how we detected logics of justification through pitch language, and we identify (a) co-occurrence patterns among logics of justification, (b) associations between logics of justification and industry sectors, and (c) associations between logics and a firm's customer segment (B2B, B2C). This study provides unique insights into how start-ups sometimes justify innovations by using specific patterns of language depending on a venture's features.
    Keywords: entrepreneurship, pitch, orders of worth, start-up discourse, accelerators
    Date: 2023
  4. By: Oladapo, Ibrahim Abiodun; Hamoudah, Manal Mohammed; Alam, Md. Mahmudul (Universiti Utara Malaysia); Muda, Ruhaini; Olaopa, Olawale Rafiu
    Abstract: Purpose – This paper aims to compare the perceptions of Islamic bank customers concerning FinTech services in Malaysia and Saudi Arabia. It also investigates the level to which customers are willing to adapt FinTech services. Design/methodology/approach – Primary data were collected from May to September 2019 using a questionnaire to survey 102 Islamic bank customers in Malaysia, and 147 in Saudi Arabia.The data are analysed based on Structural Equation Modelling (SEM) using the partial least squares (PLS) approach. Findings – The findings show that knowledge, attitude, and subjective norms are the highly significant determining factors that influence customers’ opinions on adapting to new technology, but awareness demonstrates only a moderately positive effect. Moreover, the impact of these factors on the intention to adopt FinTech services significantly differs between Malaysian and Saudi Arabian customers. Originality/value – This is an original study based on primary data on customers of Islamic banking in Malaysia and Saudi Arabia. It provides some novel insights into how the Islamic banking industry can boost customers’ confidence and enhance their patronage by adopting FinTech in their business operation model. These findings should be of value to managers, policymakers, and regulators in the Islamic banking industry in both Muslim and non-Muslim countries.
    Date: 2022–03–08
  5. By: OKAZAKI Yurie; SAITO Kosuke; TSUCHIYA Takahiro; SAHASHI Ryo
    Abstract: The importance of managing critical technologies is growing as the U.S.-China rivalry intensifies. This research aims to clarify how the policies and regulations of Japan, the U.S., and China on the management of supply chains and innovation ecosystems are reflected in (1) firms' perceptions and (2) actual business decisions. It surveyed the top 5, 000 patent application firms in 2021, excluding local governments, universities, and other entities. After surveying 3, 794 of the top 5, 000 patent application companies, we obtained a valid sample of 305 companies (response rate: 8.0%). The survey revealed that many companies in various industries need to implement management of technical know-how. While the most common pattern of technological outflow was through retirees, there were few cases where actual management of technical know-how involved tracking the movements of retirees. The regression analysis results also indicated that firms that are doing business with both China and the U.S. and receiving investment and funds from both were negatively affected by the U.S.-China conflict. Firms expanding overseas and with a large number of patents are more likely to be negatively affected by the U.S.-China conflict. However, this effect can be offset by implementing management of technical know-how.
    Date: 2023–03
  6. By: Yossra Boudawara (Université de Sfax - University of Sfax); Kaouther Toumi (LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées); Amira Wannes (Université de Sfax - University of Sfax); Khaled Hussainey (University of Portsmouth)
    Abstract: Purpose: The paper examines the impact of Shari'ah governance quality on environmental, social, and governance (ESG) performance in Islamic banks. Design/methodology: The study's sample consists of 66 Islamic banks from 14 countries over 2015-2019. The research uses the Heckman model, which is a two-stage estimation method to obtain unbiased estimates, as ESG scores are only observable for 17 Islamic banks in the Eikon Refinitiv database at the time of the analysis. Findings: The analysis shows that Shari'ah governance has a beneficial role to achieve ESG performance. It also shows that enhanced profiles of Shari'ah supervisory boards' attributes are more efficient than the operational procedures to promote ESG performance. In addition, the analysis shows that enhanced Shari'ah supervisory boards' attributes strengthen the bank's corporate governance framework while sound-designed procedures increase the bank's social activities by emphasizing their roles to ensure Shari'ah compliance. Finally, the analysis sheds light on the failure of Shari'ah governance to promote environmental performance. Originality: The research complements the governance-banks' ESG performance literature by examining the role of Shari'ah governance. The research also extends the literature on Islamic banks' sustainability by pointing to the Shari'ah governance failure to enhance environmental performance and thus, achieve Maqasid al-Shariah regarding the environment. Practical implications: The research provides policy insights to Islamic banks' stakeholders to promote social and governance performance in the Islamic finance industry through improving Shari'ah governance practices. However, raising environmental awareness is imminent among all actors implicated in the Shari'ah governance processes to help overcome the anthropogenic risks.
    Keywords: ESG Impact, Islamic banking, Sustainability, Governance
    Date: 2023
  7. By: Oh, Young-Seok (Korea Institute for Industrial Economics and Trade); Park, Sung Keun (Korea Institute for Industrial Economics and Trade)
    Abstract: This paper takes the spectrum approach to identify possible industrial and enterprise insolvency and goes on to conduct a composite analysis of both the potential industry insolvency spectrum and enterprise insolvency spectrum. Recently, the proportion of industries and enterprises showing signs of insolvency in Korea’s manufacturing sector has been on the rise. From an industrial perspective, uncompetitive industries, such as those that show negative growth in both the domestic and export markets, are increasing, while the proportion of segments that are recording positive growth in production are decreasing. Moreover, segments with healthy competitiveness are concentrated in only a few segments, such as semiconductors. From an enterprise perspective, on the spectrum from insolvent to healthy, the degree of insolvency increased for all corporations, while the degree of healthiness decreased. By combining these analyses, it was found that, as of 2019, the pattern of enterprises being active in a “competitive segment” is very weak for both healthy and insolvent enterprises. Based on the findings of the spectrum analysis, this study identifies implications for preemptive restructuring policy.
    Keywords: spectrum analysis; corporate insolvency; bankruptcy; zombie firms; manufacturing; industrial restructuring; restructuring; COVID-19; interest rates; industrial policy; restructuring policy; competition; competitiveness; competition policy
    JEL: G33 G34 G38 H81 H84 H84 L11 L25 L50 L52 L53 L60
    Date: 2021–05–21
  8. By: Calzadilla, Alvaro; Winning, Matthew; Domenech, Teresa
    Abstract: A pathway towards 1.5°C requires substantial economic, societal and technological transformations (IPCC 2018). All sectors require deep and immediate emissions reductions. Heavy industry (steel, cement and chemicals) and heavy-duty transport (trucking, shipping and aviation) are responsible for around one-third of global CO2 emissions (ETC 2018). However, reducing emissions in these hard-to-abate sectors requires policy makers to support the development and diffusion of carbon-neutral technologies and align decarbonisation strategies to global and regional sustainable development pathways. We use an updated version of the ENGAGE-Materials model to assess different strategies and technology options in the iron and steel sector to achieve decarbonisation and a sustainable use of resources. Our results show that an enhanced circularity and the availability of new low-carbon technologies in the steel sector help reduce the costs of decarbonisation. Furthermore, the introduction of a global carbon price that limits fossil fuel use and the associated greenhouse gas emissions motivates the steel industry to move towards a more circular use of steel.
    Keywords: Environmental Economics and Policy, Resource /Energy Economics and Policy
    Date: 2022

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