nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒05‒08
three papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. An Examination of the Economic and Social Impacts of Corporate Innovation and Interventions By Maestracci, Aria
  2. Green Practices and Customer Evaluations of the Service Experience: The Moderating Roles of External Environmental Factors and Firm Characteristics By Wei Jiang; Liwen Wang; Kevin Zhou
  3. Institutional Blockholders and Corporate Innovation By Bing Guo; Dennis C. Hutschenreiter; David Pérez-Castrillo; Anna Toldrà-Simats

  1. By: Maestracci, Aria
    Abstract: There has been a major shift in the concept of innovation as one of the key factors of production, as a factor that drives and sustains a company's productivity and competitiveness, of innovation as a key factor ofproduction. Despite the fact that the importance of innovation continues to grow, it is observed that existing studies have produced a variety of results regarding the factors that drive firm-level innovations, despite the increasing importance placed on innovation. Throughout the world, there are a number of factors that drive innovation in a company, whether it is in the service sector or in the manufacturing sector, and this study examines some of these factors. A number of research results suggest thatcertain aspects of the business environment, such as policy instability, legal institutions, corruption, and informal competition, have a negative impact on the introduction of non-technological innovations, as indicated in the research findings. Additionally, the results indicate that both technological and non-technological innovations are positively impacted by formal training, multinational technology companies, and research and development. These effects have both marginal and additional effects. The paper aims at providing practical implications for firm managers and policymakers around the world concerning how the business environment can be improved in order to make it more conducive to innovative activity at the firm level, thus making it a more conducive business environment for generating innovations at the firm level.
    Keywords: Innovative technologies; technological interventions and innovations; the business environment; society and technology; policy institutions; multinational corporations and innovation.
    JEL: O1 O10 O3 O30 O31 O33 O35
    Date: 2023–01–04
  2. By: Wei Jiang (Xiamen University); Liwen Wang (Shenzhen Audencia Business School, Shenzhen University, SAFTI - Shenzhen Audencia Financial Technology Institute); Kevin Zhou (HKU - The University of Hong Kong)
    Abstract: Given that services differ from goods in terms of intangibility, heterogeneity, and inseparability, customers may evaluate green services differently from how they evaluate green goods. Previous research has investigated customers' perceptions and purchase decisions regarding green products. However, limited attention has been paid to the impact of green practices on customer evaluations of the service experience as well as important contingencies that bear on this relationship. Drawing on stakeholder theory, our study examines the impact of green practices on customer evaluations and further considers the influences of environmentaland firm-level contingencies. We test our model with a multi-source dataset in the Chinese hotel industry. The findings indicate that green practices improve customer evaluations of the service experience. This positive impact is, however, weaker in external environments characterized by high internet penetration and market complexity but is stronger for hotels with innovative services and for business hotels. Our findings provide novel insights into the environmental ethics and stakeholder management literatures by revealing the role of green practices in promoting positive service evaluations as well as the contingent influences of external environments and internal firm-level characteristics.
    Keywords: Green practices customer evaluations internet penetration market complexity service innovativeness hotel industry, Green practices, customer evaluations, internet penetration, market complexity, service innovativeness, hotel industry
    Date: 2022–01–17
  3. By: Bing Guo; Dennis C. Hutschenreiter; David Pérez-Castrillo; Anna Toldrà-Simats
    Abstract: Institutional investors’ ownership in public firms has become increasingly concentrated in the last decades. We study the heterogeneous effects of large versus more dispersed institutional owners on firms’ innovation strategies and their innovation output. We find that large institutional investors induce managers to increase spending in internal R&D by reducing short-term pressure. However, to avoid empire building and dilution, large institutional investors prevent acquisitions, which reduces firms’ investment in external innovation. The overall effect on firms’ future patents and citations is negative. By acquiring less innovation from external sources, firms reduce the returns of their investment in internal R&D, jeopardizing their total innovation output. We use the mergers of financial institutions as exogenous shocks on firms’ institutional ownership concentration. Our findings complement the previously found positive effects of institutional ownership on firm innovation and indicate that the effects become negative when institutional investors become large owners.
    Keywords: institutional ownership, blockholders, innovation, acquisitions
    JEL: G32 G24 O31
    Date: 2023–04

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