nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒10‒02
nine papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. "Unlocking the Global Chessboard: FDI Policies and their Impact on Entrepreneurial Ecosystems" By Yeboah, Samuel
  2. "Empowering Communities: A Systematic Review of FDI Initiatives for Skill Development and Local Capacity Building" By Yeboah Asuamah, Samuel
  3. "Unlocking the Potential of Technological Innovations for Sustainable Agriculture in Developing Countries: Enhancing Resource Efficiency and Environmental Sustainability" By Yeboah, Samuel
  4. "Unlocking Sustainable Futures: How FDI-Driven Entrepreneurial Ecosystems Power the SDGs" By Asuamah Yeboah, Samuel
  5. Foreign Investment and Local Enterprise: Navigating the Tightrope of FDI Inflows and Homegrown Entrepreneurship By Yeboah, Samuel; Boateng Prempeh, Kwadwo
  6. Entrepreneurial Higher Education Education, Knowledge and Wealth Creation By Rahmat Ullah; Rashid Aftab; Saeed Siyal; Kashif Zaheer
  7. Diversify or Not? – The Link between Global Sourcing of ICT Goods and Firm Performance By Alexander Schiersch; Irene Bertschek; Thomas Niebel
  8. The transformative effects of tacit technological knowledge By Petralia, Sergio; Kemeny, Thomas; Storper, Michael
  9. Gender differences in management styles during crisis and the effect on firm performance By Valerija Botric; Sonja Radas; Bruno Skrinjaric

  1. By: Yeboah, Samuel
    Abstract: This analysis delves into the diverse landscape of Foreign Direct Investment (FDI) policies within developing nations and their profound implications for entrepreneurial ecosystems. Through comparative analysis, the study uncovers a range of strategies countries employ, from liberal to restrictive FDI approaches, which significantly impact interactions between foreign investors and local startups, ultimately shaping innovation, growth, and competitiveness in entrepreneurial ecosystems. In some developing nations, liberal FDI policies play a pivotal role, strategically designed to attract foreign capital, technology, and expertise. For instance, Singapore and Ireland have implemented proactive, incentive-driven measures, particularly in high-tech sectors, resulting in thriving entrepreneurial ecosystems integrated into global value chains. These policies foster collaborative environments, granting local startups improved access to capital, markets, and invaluable knowledge from foreign investors. Conversely, other nations adopt more restrictive FDI policies to safeguard strategic sectors and protect domestic enterprises from undue foreign influence. India and China exemplify this approach, erecting regulatory barriers in industries like telecommunications and banking to retain policy autonomy and nurture domestic capabilities. While preserving local interests, these policies inadvertently limit access to FDI benefits, including advanced technologies, skills, and global market connectivity. Governments often utilize incentive schemes such as tax breaks and subsidies to attract FDI, making their countries appealing to foreign investors and providing local startups with essential resources and mentorship, significantly contributing to their growth. However, ownership restrictions, particularly in strategically significant sectors, serve to protect domestic control but may discourage potential investors and hinder collaboration between startups and foreign entities. Striking a balance between preserving sovereignty and promoting global integration becomes a pivotal challenge for these nations. The regulatory environment plays a central role in shaping the relationship between FDI policies and entrepreneurial ecosystems. Favourable regulatory frameworks that encourage competition, safeguard intellectual property and simplify business registration drive innovation and attract FDI, which subsequently benefits startups. Transparent regulations that reduce uncertainty and risks bolster investor confidence, making FDI a potential lifeline for local startups.
    Keywords: Entrepreneurial Ecosystems; Comparative Analysis; Liberal FDI Policies; Restrictive FDI Policies; Incentive Schemes; Ownership Restrictions; Regulatory Environment; Innovation; Investor Confidence; Ease of Doing Business; Policy Alignment
    JEL: F21 F23 G38 L26
    Date: 2023–07–18
  2. By: Yeboah Asuamah, Samuel
    Abstract: Foreign Direct Investment (FDI) has emerged as a significant driver of skill development and local capacity building within host countries. This systematic review explores the mechanisms through which FDI initiatives contribute to skill enhancement, knowledge transfer, and the overall development of local talent and economies. By examining various channels of knowledge exchange, including training programs, joint ventures, technology licensing, mentorship, research collaborations, and more, this review provides insights into the dynamic synergy created when global expertise meets local talent. The review highlights the multifaceted benefits of FDI for communities, including improved competitiveness, innovation, and sustainable growth. Through a systematic and comprehensive analysis of existing literature, this review sheds light on the pivotal role FDI plays in empowering communities and fostering continuous development. Policymakers, scholars, and practitioners seeking to leverage FDI for local capacity building will find this review to be a valuable resource.
    Keywords: Skill Development; Local Capacity Building; Knowledge Transfer; Training Programs; Joint Ventures; Technology Licensing; Mentorship; Research Collaborations; Empowerment; Sustainable Development; Innovation; Global Expertise; Local Talent; Community Development
    JEL: F21 F23 H8 I25 O32 O33 O35 O38
    Date: 2023–07–12
  3. By: Yeboah, Samuel
    Abstract: This paper examines the potential of technological innovations in promoting sustainable agriculture in developing countries. With challenges like population growth, climate change, and limited resources, there is a critical need for efficient and environmentally sustainable farming practices. Technological innovations offer promising solutions to address these challenges and enhance resource efficiency while minimizing negative environmental impacts. The paper emphasizes the urgency of leveraging technology to overcome barriers faced by developing countries in agriculture. It discusses various technological innovations that can improve resource efficiency, including precision farming techniques, advanced irrigation systems, remote sensing, and data analytics. These innovations enable farmers to optimize resource utilization, reduce waste, and improve crop yields. Environmental sustainability in agriculture is also highlighted, with a focus on technological solutions to minimize soil degradation, water pollution, and greenhouse gas emissions. The paper explores eco-friendly practices such as organic farming, agroforestry, and biopesticides that can be implemented using technology to promote sustainability. Challenges to adopting technological innovations in developing countries are discussed, such as limited access to technology, lack of infrastructure, and financial constraints. The paper emphasizes the need for supportive policies, capacity building, and partnerships to facilitate technology transfer and widespread adoption. Overall, the paper advocates for harnessing the power of technological innovations to enhance resource efficiency and environmental sustainability in agriculture. It calls for tailored approaches, farmer empowerment, and knowledge sharing. Collaboration among governments, research institutions, private sectors, and civil society is essential to create an enabling environment for technology-driven sustainable agriculture. The findings underscore the potential of technological innovations to contribute to food security, poverty alleviation, and resilient livelihoods in developing countries. By embracing these innovations and addressing associated challenges, developing countries can unlock their agricultural potential and create a sustainable future.
    Keywords: technological innovations, sustainable agriculture, developing countries, resource efficiency, environmental sustainability
    JEL: O13 Q01 Q16 Q55
    Date: 2023–07–10
  4. By: Asuamah Yeboah, Samuel
    Abstract: This systematic review explores the dynamic relationship between Foreign Direct Investment (FDI)-driven entrepreneurial ecosystems and the United Nations' Sustainable Development Goals (SDGs). FDI is recognized as a potent catalyst for global development, and its alignment with specific SDGs can create a transformative impact across various domains. By strategically harnessing FDI, countries can accelerate their progress towards achieving the SDGs and building a more inclusive and equitable future. The study identifies several key SDGs where FDI-driven entrepreneurial ecosystems play a pivotal role: SDG 1: No Poverty: FDI fosters economic growth, generates employment opportunities, and enhances labour productivity, consequently alleviating poverty. It contributes to improving wages, human capital development, and overall well-being. SDG 8: Decent Work and Economic Growth: FDI-supported ecosystems promote inclusive economic growth by creating jobs and enhancing working conditions. They boost local productivity, induce employment, and stimulate consumption. SDG 9: Industry, Innovation, and Infrastructure: FDI brings technological innovation, knowledge transfer, and advanced infrastructure, fostering innovation and enhancing local business competitiveness. SDG 10: Reduced Inequality: FDI empowers marginalized communities, enabling them to access resources, markets, and global networks, thus reducing inequality. SDG 17: Partnerships for the Goals: FDI-driven partnerships between foreign corporations and local startups leverage expertise, resources, and networks to collectively achieve various SDGs. Such collaborations aim to align with the principles and objectives of SDG 17. SDG 4: Quality Education: Multinational corporations' involvement in FDI can lead to educational initiatives, skill development programs, and technology transfers that enhance educational quality. SDG 13: Climate Action: FDI-driven innovation results in sustainable technologies, cleaner production processes, and environmental solutions contributing to climate action. SDG 16: Peace, Justice, and Strong Institutions: FDI promotes transparency, accountability, and ethical business practices, strengthening institutions and contributing to a stable business environment. SDG 5: Gender Equality: FDI-supported startups empower women entrepreneurs, enhance gender diversity in the workforce, and create opportunities for women's economic participation. SDG 11: Sustainable Cities and Communities: FDI-driven entrepreneurial ecosystems contribute to urban development through smart technologies, sustainable infrastructure, and innovative solutions. SDG 7: Affordable and Clean Energy: FDI plays a critical role in the adoption of clean energy technologies, supporting the transition to renewable energy sources.
    Keywords: Poverty Alleviation, Economic Growth, Innovation, Inequality Reduction, Partnerships, Quality Education, Climate Action, Strong Institutions, Gender Equality, Sustainable Urban Development, Clean Energy Adoption.
    JEL: F21 F23 O31 O32 O33 O38 O40 O41 O43 O44 O57
    Date: 2023–07–20
  5. By: Yeboah, Samuel; Boateng Prempeh, Kwadwo
    Abstract: This systematic review explores the multifaceted challenges and opportunities presented by Foreign Direct Investment (FDI) inflows for local entrepreneurial development. FDI is known to bring both potential benefits and pitfalls for local startups, and understanding this delicate balance is crucial for sustainable economic growth. Firstly, FDI often ushers in increased competition as well-funded foreign firms enter local markets. While this can hinder local startups' market share, it can also stimulate innovation and efficiency. Secondly, local entrepreneurs relying heavily on FDI face dependency risks, as shifts in foreign investors' priorities or sudden exits can disrupt their operations. Thirdly, FDI can transfer technology and knowledge but also poses the risk of technology leakage, potentially stifling local startups' independent capabilities. Fourthly, asymmetrical power dynamics between foreign investors and local startups can result in unequal partnerships. Lastly, FDI might lead to market fragmentation, overshadowing local players and limiting diversity and competition. Furthermore, cultural differences in corporate cultures and management styles can create collaboration challenges between foreign corporations and local startups. In navigating these challenges, local startups must adopt strategies to differentiate themselves from foreign competitors, negotiate fair partnerships, and foster cross-cultural collaboration. Policymakers also play a crucial role in balancing the benefits and costs of FDI through measures that prevent or mitigate market fragmentation and promote interoperability and harmonization across industries. Understanding the nuanced interplay between FDI and local entrepreneurship is essential for achieving sustainable economic growth and fostering innovation in a globalized world.
    Keywords: Foreign Direct Investment (FDI); Local Entrepreneurship; Challenges; Opportunities; Competition; Dependency Risks; Technology Leakage; Power Dynamics; Market Fragmentation; Cultural Challenges; Economic Growth; Innovation; Sustainable Development; Cross-Cultural Collaboration; Market Share
    JEL: D22 F21 F23 L20 L26 L53 M21 O16 O33 O57
    Date: 2023–07–14
  6. By: Rahmat Ullah; Rashid Aftab; Saeed Siyal; Kashif Zaheer
    Abstract: This book presents detailed discussion on the role of higher education in terms of serving basic knowledge creation, teaching, and doing applied research for commercialization. The book presents an historical account on how this challenge was addressed earlier in education history, the cases of successful academic commercialization, the marriage between basic and applied science and how universities develop economies of the regions and countries. This book also discusses cultural and social challenges in research commercialization and pathways to break the status quo.
    Date: 2023–08
  7. By: Alexander Schiersch; Irene Bertschek; Thomas Niebel
    Abstract: Our paper contributes to the discussion about Europe’s digital sovereignty. We analyze the relationship between firm performance and the diversification of sourcing countries for imported ICT goods. The analysis is based on administrative data for 3888 German manufacturing firms that imported ICT goods in the years 2010 and 2014. We find that firms that diversify the sourcing of ICT goods across multiple countries perform better than similar firms with a less diversified sourcing structure. This result holds for value added as well as for gross operational surplus as performance measures and for two different indicators of diversification.
    Keywords: ICT goods imports, global sourcing, digital sovereignty, firm performance
    JEL: F14 F23 L14 L23 D24
    Date: 2023
  8. By: Petralia, Sergio; Kemeny, Thomas; Storper, Michael
    Abstract: Tacit knowledge – ideas that cannot readily be meaningfully and completely communicated – has long been considered a precursor to scientific and technological advances. Using words and phrases found in the universe of USPTO patents 1940-2020, we propose a new method of measuring tacit knowledge and its progressive codification. We uncover a discontinuity in the production of highly tacit technologies. Before 1980, highly- and less-tacit inventions are evenly distributed among inventors, organizations, scientific domains and subnational regions. After 1980, inventors of highly tacit patents become relatively rare, and increasingly concentrated in domains and locations. The economic payoffs to tacit knowledge also change, as it starts unequally rewarding high-income workers. This suggests a role for tacit knowledge in contributing to the rise in income inequality since 1980.
    JEL: J1
    Date: 2023–09–01
  9. By: Valerija Botric (The Institute of Economics, Zagreb); Sonja Radas (The Institute of Economics, Zagreb); Bruno Skrinjaric (The Institute of Economics, Zagreb)
    Abstract: This paper aims to shed light on gender differences in firm performance in a period that entails an unprecedented crisis with specific effects on gender roles, i.e., COVID-19. The analysis focuses on Croatian high-tech manufacturing and knowledge-intensive service sector SMEs. Previous literature indicates that the obstacles the SMEs face may be even more significant for women-owned firms. Specifically, women entrepreneurs find it more challenging to secure social and financial capital. Women often face restrictions on their working hours due to societal pressure and family obligations, and they are rarely well-connected because they are often not members of influential business networks. Literature also suggests that the usual pressures on female working hours have disproportionally increased during the COVID-19 imposed lockdowns, so the general expectation is that women entrepreneurs were not able to cope equally with the changed market circumstances. In this study, we consider a causation-effectuation management framework to investigate how women- and men-owned SMEs used these management styles to address the business challenges in the COVID-19 crisis. Our contribution aims explicitly to answer the invitation made in recent literature to explore how gender influences the effects of the four dimensions of effectuation on firm performance.
    Keywords: women entrepreneurship; firm performance; management styles; COVID-19
    JEL: B54 J16 L26
    Date: 2023–07

This nep-cse issue is ©2023 by João José de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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