nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒05‒01
four papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Trade and Diffusion of Embodied Technology: An Empirical Analysis By Stephen Ayerst; Faisal Ibrahim; Gaelan MacKenzie; Swapnika Rachapalli
  2. "Business Excellence Model for the Business Performance of Small and Medium Enterprises in Malaysia " By Shahrunnizan bin Moin
  3. Search and Performance in Ecosystems: The Changing Role of Product Architectures By Axel Zeijen; Luigi Marengo; Stefano Brusoni
  4. Closing the gap between research and projects in climate change innovation in Europe By Larosa, Francesca; Mysiak, Jaroslav; Molinari, Marco; Varelas, Panagiotis; Akay, Haluk; McDowall, Will; Spadaru, Catalina; Fuso-Nerini, Francesco; Vinuesa, Ricardo

  1. By: Stephen Ayerst; Faisal Ibrahim; Gaelan MacKenzie; Swapnika Rachapalli
    Abstract: Using data from patents, citations, inter-sectoral sales and customs, we examine the international diffusion of technology through imports of sectoral knowledge and production inputs. We construct measures of the flow of technology embodied in imports. These measures are weighted by inter-sectoral knowledge and production input-output linkages that capture the relevance of this technology for generating new innovations in different sectors in importing countries. We develop an instrumental variable strategy to identify the causal effects of technology embodied in imports on innovation and diffusion outcomes. For sectors in importing countries, increases in both knowledge- and production-weighted embodied technology imports lead to technology diffusion (measured using backward citations in new patent applications) and increases in the rate of new innovations (measured using the forward citations those patents receive). Effects are substantially larger for knowledge-weighted imports of embodied technology, which also lead to improvements in the average quality of new innovations.
    Keywords: Development economics; International topics; Productivity; Trade integration
    JEL: O33 F14 O31 O19 F61
    Date: 2023–04
  2. By: Shahrunnizan bin Moin (Faculty of Business & Management, 40450, Shah Alam, Malaysia Author-2-Name: Saridan bin Abu Bakar Author-2-Workplace-Name: Assoc. Prof, Arshad Ayub Graduate Business School (AAGBS), UiTM, 40450, Shah Alam, Malaysia Author-3-Name: Muhammad Faizal bin Samat Author-3-Workplace-Name: Dr, Faculty of Business & Management, 40450, Shah Alam, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective - Small and Medium Enterprises (S.M.E.s), including Malaysia, have been recognized as a critical economic development engine globally. S.M.E.s' economic contribution includes their share of total establishments, employment, Gross Domestic Product (G.D.P.), and total export. Methodology/Technique - S.M.E.s comprise 97.4 percent of business establishments, provide 59 percent of total employment, and are the major contributor to economic growth. Although S.M.E.s play a pivotal role in economic development due to their significant proportion, their business performance remains a topic of debate. The S.M.E.s' business performance has shown slow growth while recording low productivity compared to large firms. This paper aims to develop a comprehensive Business Excellent Model (B.E.M.) that is exclusively and mutually for the business performance of S.M.E.s by investigating each criterion of the Business Excellent Model. Finding - The B.E.M. was developed by reviewing the literature on the issue from local and global contexts. Previous studies have shown that S.M.E.s require a suitable B.E.M. to catalyze their business performance. The S.M.E.s need to have seven criteria which comprise (a) leadership, (b) strategy, (c) information, (d) customer, (e) workforce, (f) process, and (g) results that are exclusively and mutually for S.M.E.s' business performance. Novelty - Finally, the literature's conclusion helps evaluate the critical issues of slow-growing and unproductive S.M.E.s in Malaysia. Furthermore, understanding every criterion of the B.E.M. would also ascertain which measures should be included in the B.E.M. for S.M.E.s. Type of Paper - Review"
    Keywords: Small and Medium Enterprises; Business Performance; Excellent Business Model; Resource-Based View Theory; Productivity Gap.
    JEL: M10 M11
    Date: 2023–03–31
  3. By: Axel Zeijen; Luigi Marengo; Stefano Brusoni
    Abstract: A crucial assumption in organization theory is that product architectures form a stable basis on which firms make strategic choices, over a period of time. However, emerging digital technologies challenge this idea, by allowing firms to redesign architectures at will. In this paper, we explore this novel phenomenon, its effects, and its theoretical implications. We develop an NK model suitable for studying (i) variable interdependence structures between components and (ii) the dynamics of search and adaptation in ecosystems. We find that the possibility to redesign product architectures undercuts the stability on which vertical relationships are based. We distinguish two pathways through which firms can benefit from redesigning product architectures: by enhancing the fitness landscape (landscape redesigns) or by altering the conditions on which inter-firm coordination is based (ecosystem redesigns). The availability of these two pathways depends on a firm's positioning (vertical scope and location in the value chain). Our results shed light on the changing role of interdependence structures in ecosystems, the differential advantages of integration and specialization strategies, and the effects of digital technologies in both technical and organizational domains.
    Keywords: Digital technologies; ecosystems; firms' boundaries.
    Date: 2023–04–13
  4. By: Larosa, Francesca; Mysiak, Jaroslav; Molinari, Marco; Varelas, Panagiotis; Akay, Haluk; McDowall, Will; Spadaru, Catalina; Fuso-Nerini, Francesco; Vinuesa, Ricardo
    Abstract: Innovation is a key component to equip our society with tools to adapt to new climatic conditions. The development of research-action interfaces shifts useful ideas into operationalized knowledge allowing innovation to flourish. In this paper we quantify the existing gap between climate research and innovation action in Europe using a novel framework that combines artificial intelligence (AI) methods and network science. We compute the distance between key topics of research interest from peer review publications and core issues tackled by innovation projects funded by the most recent European framework programmes. Our findings reveal significant differences exist between and within the two layers. Economic incentives, agricultural and industrial processes are differently connected to adaptation and mitigation priorities. We also find a loose research-action connection in bioproducts, biotechnologies and risk assessment practices, where applications are still too few compared to the research insights. Our analysis supports policy-makers to measure and track how research funding result in innovation action, and to adjust decisions if stated priorities are not achieved.
    Keywords: climate innovation; natural language processing; knwoledge production
    JEL: H54 O32 O33 O38
    Date: 2023

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