nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒10‒09
nine papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. "Harmonizing FDI and Local Entrepreneurship: Strategies for Inclusive Growth" By Yeboah, Samuel; Gyan, Sylvester; James, Bright
  2. "The Dual Nature of FDI: Boosting Local Startups and SMEs While Posing Challenges" By Gyan, Sylvester; James Nyarkoh, Bright; Yeboah, Samuel
  3. Resource Misallocation in the Presence of R&D Spillovers By Li, Kun; Azacis, Helmuts; Luintel, Kul B
  4. The complementary effect of quality management and proactive market orientation on radical product innovation under environmental uncertainty By Younès El Manzani; Jean Jack Cegarra
  5. "Empowering Communities: A Systematic Review of FDI Initiatives for Skill Development and Local Capacity Building" By Yeboah, Samuel
  6. The role of university incubators in attracting and framing competencies and inovated projects “case stady of m'sila incubator” By Abdellaoui Youcef
  7. Does corporate environmentalism affect corporate insolvency risk? The role of market power and competitive intensity By Saqib Aziz; Mahabubur Rahman; Dildar Hussain; Duc Nguyen
  8. "Navigating Global Markets: The Impact of FDI on Startups' Access to Insights, Networks, and Brand Visibility" By Yeboah, Samuel
  9. Aligning Leadership Styles for Effective Knowledge Management in the Kurdistan Region of Iraq By Abdulwahab Mohammed, Sana

  1. By: Yeboah, Samuel; Gyan, Sylvester; James, Bright
    Abstract: This systematic review explores the complex dynamics between Foreign Direct Investment (FDI) and local entrepreneurial ecosystems, focusing on their impact on startups and Small and Medium-sized Enterprises (SMEs). FDI has emerged as a critical driver of economic development and innovation in an increasingly globalized world. While FDI offers numerous advantages, it also presents challenges, particularly for local startups. Positive effects of FDI include improved access to funding, enhanced resources, market expansion, talent attraction, and knowledge sharing. These benefits can boost the competitiveness and profitability of startups, enabling them to enter new markets and scale their operations. However, FDI can also have negative repercussions, such as increased competition, dependency risks, unequal partnerships, and potential loss of intellectual property. These challenges underscore the need for a nuanced approach to harness the benefits of FDI while mitigating its risks. To address these issues, strategies to maximize FDI's benefits for entrepreneurship are discussed. These strategies encompass creating supportive ecosystems, diversifying funding sources, promoting collaborative innovation, strengthening intellectual property protection, investing in education and skill development, facilitating cultural integration, and establishing startup incubation programs. Ultimately, achieving a harmonious balance between FDI and local entrepreneurship is essential for driving inclusive economic growth and sustainable innovation. This systematic review provides insights to guide policymakers, entrepreneurs, and investors in optimizing the advantages of FDI while proactively addressing its inherent challenges.
    Keywords: Foreign Direct Investment (FDI); Entrepreneurial Ecosystems; Local Startups; Small and Medium-sized Enterprises (SMEs); Economic Development; Innovation; Competition; Power Dynamics; Intellectual Property Protection; Technology Transfer
    JEL: D22 F21 F23 L25 L26 M13 M21 O31 O33 O34
    Date: 2023–06–15
  2. By: Gyan, Sylvester; James Nyarkoh, Bright; Yeboah, Samuel
    Abstract: This systematic review delves into the multifaceted relationship between Foreign Direct Investment (FDI) and entrepreneurial ecosystems, with a particular focus on the impact of FDI on local startups and Small and Medium-sized Enterprises (SMEs). The study investigates both the positive and negative effects of FDI, shedding light on its role as a double-edged sword in shaping local entrepreneurial landscapes. The positive effects encompass access to vital funding, enhanced resources, market expansion opportunities, the magnetism of skilled talent, and a culture of knowledge sharing. FDI serves as a lifeline, bridging the funding gap that often hampers local startups, and infusing them with the capital essential for growth, innovation, and global market access. Additionally, foreign investors bring valuable resources, advanced technologies, and managerial expertise, augmenting the capabilities of local entrepreneurs. The presence of foreign corporations also facilitates market expansion, enabling local startups to access international markets and leverage established investor networks. Furthermore, FDI acts as a talent magnet, attracting skilled professionals to the region, thereby enriching the local labour pool. Moreover, interaction with foreign investors fosters a culture of knowledge sharing, exposing local entrepreneurs to global best practices and diverse perspectives. However, alongside these positive effects, negative consequences emerge. Increased competition from foreign firms can stifle the growth prospects of local startups. An overreliance on foreign investors for funding and resources can make local startups vulnerable to shifts in investor sentiment. Unequal power dynamics may lead to unequal partnerships, where local startups have limited negotiating leverage. Moreover, the transfer of technology and knowledge raises concerns about the outflow of critical intellectual property. This systematic review critically examines these dynamics, offering valuable insights into the intricacies of FDI's impact on entrepreneurial ecosystems. The findings inform policymakers, entrepreneurs, and investors alike, guiding them in optimizing the benefits of FDI while mitigating its potential pitfalls. By understanding the complex interplay between FDI and local startups, stakeholders can foster a more vibrant and resilient entrepreneurial ecosystem, conducive to innovation, growth, and sustainability.
    Keywords: Foreign Direct Investment (FDI), entrepreneurial ecosystems, startups, Small and Medium-sized Enterprises (SMEs), funding, resources, market expansion, talent attraction, knowledge sharing.
    JEL: F21 F23 L26 L33 M13 O16 O33 O38
    Date: 2023–07–09
  3. By: Li, Kun (Cardiff Business School); Azacis, Helmuts (Cardiff Business School); Luintel, Kul B (Cardiff Business School)
    Abstract: We study resource misallocation by explicitly modelling R&D input and knowledge spillovers. The effects of R&D and spillovers on firm-level productivity are extensively studied in applied work, but not in the context of resource misallocation. We establish that, in the presence of spillovers, efficient resource allocation requires that more productive firms face higher R&D input prices. Analysing UK firm-level data, we find that the output gains from correcting misallocation are greatly overestimated when spillovers are ignored. Output losses due to capital distortions dominate those from labour and R&D inputs. Adopting a wrong R&D policy could lead to significant output losses.
    Keywords: resource misallocation, productivity, R&D spillover, the UK manufacturing firms
    JEL: D24 D61 O30 O47
    Date: 2023–09
  4. By: Younès El Manzani (Université Paris-Saclay, UVSQ - Université de Versailles Saint-Quentin-en-Yvelines, LAREQUOI - Laboratoire de recherche en Management - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines); Jean Jack Cegarra (Institut d'Administration des Entreprises (IAE) - Lyon, Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)
    Abstract: Empirical research shows that there is a synergistic relationship between quality management and market orientation that promotes the creation and delivery of value, customer satisfaction, and performance (El Manzani, 2021). By calling on the theory of dynamic capabilities, the main objective of this research is to enrich the literature by studying the effect of the complementarity between quality management and proactive market orientation on radical product innovation, considering the moderating role of environmental uncertainty in this relationship. The results of a quantitative study of 130 ISO 9001 certified companies that have rolled out radical product innovations reveal that the complementarity between quality management and proactive market orientation improves radical product innovation. This synergistic effect becomes more pronounced when the level of environmental uncertainty is high.
    Keywords: quality management (ISO 9001) TQM proactive market orientation complementarity radical product innovation environmental uncertainty PLS-SEM Morocco, quality management (ISO 9001), TQM, proactive market orientation, complementarity, radical product innovation, environmental uncertainty, PLS-SEM, Morocco
    Date: 2023–08–02
  5. By: Yeboah, 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 I25 O32 O33 O35 O38
    Date: 2023–06–10
  6. By: Abdellaoui Youcef (Blida2 University Lounici Ali)
    Abstract: This research paper aims at taking knowledge of the role of the university incubators in framing and accompaying competencies in order to create startups furthermore, to shade light on services offered for the incubated students through m'sila incubators, in its capacity as the most dynamic incubator at the national level , some of the most important of its activites and the different patents and label certaficates have been highlighted. Among the most important results of the studies, the experience of the m'sila incubator was obviously very successful, the fact that its director was nomineted at the top of the national coordination commitee to follow UP inovation and university incubators where this commitee was founded in sptember 27 th , 2022and which ensures the implentation of the ministeriel decesion12/75.
    Keywords: competencies business incubator innovative projects start-ups. JEL Classification Codes: M12 . M13, competencies, business incubator, innovative projects, start-ups. JEL Classification Codes: M12 . M13
    Date: 2023–06–04
  7. By: Saqib Aziz (ESC [Rennes] - ESC Rennes School of Business); Mahabubur Rahman (ESC [Rennes] - ESC Rennes School of Business); Dildar Hussain (ESC [Rennes] - ESC Rennes School of Business); Duc Nguyen (IPAG Business School, VNU - Vietnam National University [Hanoï])
    Abstract: Little is known about the effects of green performance on corporate insolvency risk. This study examines the relationship between green performance and firm insolvency risk from both theoretical and empirical perspectives. Using a panel of 179 US firms included in the Newsweek Green Rankings and a system generalised method of moments estimation which generates endogeneity-robust regression coefficients, we found that firms with higher green performance are at lower risk of insolvency. We further postulate and provide theory-based empirical evidence that the nexus between green performance and insolvency risk is contingent upon other internal and external boundary conditions. Specifically, this research documents that the nexus between green performance and firm insolvency risk is moderated by market power as well as industry competitive intensity. The results of this study are robust across several sensitivity analyses.
    Keywords: Green performance, Insolvency risk, Market share, Industry competitiveness, Z-score
    Date: 2021–11
  8. By: Yeboah, Samuel
    Abstract: This systematic review explores the multifaceted impact of Foreign Direct Investment (FDI) on local startups' access to global markets. FDI plays a pivotal role in facilitating the expansion of local businesses into international markets by offering valuable resources and insights. The review delves into several critical dimensions: Distribution Networks: FDI grants startups access to established distribution networks of multinational corporations (MNCs), providing a channel to reach a broader customer base. It discusses the trade-offs between distribution-oriented and production-oriented FDI, highlighting their effects on startups' global reach. Market Knowledge: Foreign investors bring invaluable market insights and intelligence, aiding startups in understanding customer preferences, cultural nuances, and competitive landscapes. This section explores how market knowledge helps foreign investors overcome the liability of foreignness and enhances their competitiveness and innovation. Brand Visibility: Partnering with well-known foreign corporations enhances startups' credibility and visibility in global markets, leading to increased trust among potential customers. It investigates the determinants of brand visibility and its role in overcoming foreignness. Local Insights: FDI provides startups with access to foreign investors' local expertise, enabling them to tailor their products or services to meet the demands of specific international markets. This paper analyses the sources and determinants of local insights. Through an examination of these dimensions, this systematic review sheds light on the transformative potential of FDI in enabling local startups to access international markets. It also emphasizes the importance of strategic partnerships, knowledge sharing, and the adaptation of strategies for success in global business environments.
    Keywords: Global Markets; Distribution Networks; Market Knowledge; Brand Visibility; Local Insights; Startups; International Expansion; Market Entry; Multinational Corporations (MNCs)
    JEL: D22 F21 F23 L25 L26 L86 M13 O32
    Date: 2023–05–17
  9. By: Abdulwahab Mohammed, Sana
    Abstract: This study investigates the relationship between leadership styles and knowledge management within organizations. The main objective is to identify the most appropriate leadership style that fosters effective knowledge management practices and encourages knowledge sharing among employees. To achieve this, a quantitative research approach was adopted, employing questionnaire surveys as the primary data collection method. The reliability of the research instrument was assessed using Cronbach's alpha. The study employed regression analysis to analyse the collected data and determine the influence of various leadership styles on knowledge management outcomes. By analysing the data, the study aimed to identify the leadership style that demonstrated the greatest positive impact on knowledge sharing within organizations. The findings of this research suggest that democratic leadership style is the most appropriate for knowledge management initiatives. The data indicated a significant positive correlation between democratic leadership and knowledge sharing, indicating that leaders who adopt a democratic approach facilitate an environment that encourages open communication, collaboration, and knowledge exchange. Based on the results, this study recommends that leaders embrace a democratic leadership style to enhance knowledge management practices. Organizations should prioritize creating an inclusive and participative culture that fosters employee engagement, empowerment, and involvement in decision-making processes.
    Keywords: Leadership styles, Knowledge management, Democratic leadership, Autocratic Leadership, Laissez-Faire Leadership, Knowledge sharing, Knowledge Hiding.
    JEL: M0 M12
    Date: 2023–06–18

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