nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2023‒10‒23
seven papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. AI Adoption and Productivity of Japanese Firms: Spillover and innovation effects (Japanese) By IKEUCHI Kenta; INUI Tomohiko; KIM YoungGak
  2. SME internationalisation: Do the types of innovation matter? By Boumediene Ramdani; Fateh Belaid; Stéphane Goutte
  3. Growth and Innovation in the Modern Data Economy By Orlando Gomes; Roxana Mihet; Kumar Rishabh
  4. When firms may benefit from sticking with an old technology By Li, Xu
  5. Industry-University Collaboration and Corporate Research Performance (Japanese) By INUI Tomohiko; EDAMURA Kazuma; Russell THOMSON
  7. The Gender Dimension of Industrial Diversification: What is the Role of Skills Gap? By Duygu Buyukyazici; ;

  1. By: IKEUCHI Kenta; INUI Tomohiko; KIM YoungGak
    Abstract: The use of Artificial Intelligence (AI) in business has been expanding in recent years, and there is growing interest in the mechanisms and extent to which AI affects firm performance. In this study, we analyze the impact of firms’ introduction of AI on their performance using the "Basic Survey of Japanese Business Structure and Activities" of the Ministry of Economy, Trade and Industry (METI), Japan, TSR's business-to-business transaction data, press release data from NIKKEI, and IIP patent database 2020. In addition to the introduction of AI-related patents generated by a company's own R&D activity, we also try to analyze the impact of the introduction of AI within their trading partners (suppliers and customers). In addition to the efficiency gains in production processes (process innovation), the study analyzes the creation of new products and improvements in existing products (product innovation). The main results from the analyses are as follows. (1) AI-related patents positively correlate with firm productivity and have a stronger relationship with productivity than non-AI patents. (2) The relationship between AI-related patents and firm productivity strengthened even after 2009 when the number of patent applications began to decline. (3) AI-related patents mainly contribute to the productivity of firms with productivity in middle or higher status within the industry, while AI-related patents have a negative impact on the productivity of firms with low productivity. (4) We cannot confirm that the introduction of AI by a firm's business partner has a positive or negative spillover effect on the productivity of that firm. (5) AI-related patents are strongly related to product innovation, process innovation, and technological innovation of the firms, and especially high-quality AI-related patents have a mid-term and important impact on innovation.
    Date: 2023–09
  2. By: Boumediene Ramdani; Fateh Belaid (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Stéphane Goutte (SOURCE - SOUtenabilité et RésilienCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [France-Nord] - Institut de Recherche pour le Développement)
    Abstract: Existing evidence suggest that innovative Small and Medium-sized Enterprises (or SMEs) are more likely to internationalise (i.e. have a greater propensity to export) than non-innovative SMEs. However, it is not yet clear whether and to what extent different types of innovation (i.e. product, service, and process) affect SME internationalisation. To address this issue, this study uses a research model that integrates the resource and institutional perspectives and empirically test it using data from the United Kingdom (UK) Longitudinal Small Business Survey. Our results confirm that SME internationalisation is more likely to occur in firms undertaking product innovation than process and/or service innovation, and a specific configuration of resource and institutional drivers influence SME internationalisation depending on the innovation type. These results lead to major policy and managerial implications in relation to promoting SME internationalisation through different types of innovation, given the UK withdrawal from the European Union.
    Keywords: Export, Innovation, Internationalisation, SME, UK
    Date: 2023
  3. By: Orlando Gomes (Lisbon Accounting and Business School); Roxana Mihet (University of Lausanne, Swiss Finance Institute and CEPR); Kumar Rishabh (University of Basel and University of Lausanne)
    Abstract: In this paper, we formulate a growth model of the data economy, highlighting data's dual role as a business optimization tool and a cybercrime target. We investigate the impact of cybercrime on firm innovation and economic growth, finding that it unequivocally leads to reduced knowledge stocks, decreased productivity, and slower overall economic growth for all firms. However, there is a silver lining: cybercrime risk prompts data-intensive companies to pursue digital innovation, enhancing productivity in other domains. We observe increased R&D, patenting, and patent diversity in response to higher cyber risk, especially among data-intensive firms. Non-data-intensive firms do not exhibit increased general innovation in response to cyber risk. Notably, in-house cybersecurity innovation sustains this cycle, while third-party cybersecurity delegation lacks the same innovation benefits.
    Keywords: Data economy, data theft, data breaches, cyber-risk, growth, artificial intelligence, innovation
    JEL: D8 O3 O4 G3 L1 L2 M1
    Date: 2023–09
  4. By: Li, Xu
    Abstract: Research Summary How should firms respond to technological discontinuities in order to achieve greater performance? In contrast to most studies that advocate a timely transition from the old to the new technology, this paper posits that in markets where a discontinuous technology exposes customers' latent preference heterogeneity for certain old technology attributes, firms may ultimately experience a performance surge by adhering to the old technology during technological change. Explicitly, I theorize a U-shaped relationship within such a market between competitors' increasing adoption of the new technology and the performance of firms that stick with the old technology. This prediction is thoroughly examined using comprehensive data from the traditional Chinese medicine industry in China during the 1990s and receives robust empirical support. Managerial Summary In some markets, the rise of a discontinuous technology, besides posing a substitute threat to the old technology, further exposes niche segments where customers continue to favor the old technology. This paper predicts that within such a market, as competitors increasingly adopt the new technology for varied motives, firms sticking with the old technology may see their performance declining before rebounding and potentially reaching new heights. Analyses using archival data from the traditional Chinese medicine industry in China during the 1990s provide robust support for this prediction. The arguments and findings of this paper offer an “existence proof” that when confronted with a technological discontinuity, adhering to the old technology may also represent an effective strategy that ultimately improves firm performance.
    Keywords: demand heterogeneity; firm performance; old technology; technological discontinuity; Wiley deal
    JEL: J50
    Date: 2023–09–21
  5. By: INUI Tomohiko; EDAMURA Kazuma; Russell THOMSON
    Abstract: This paper quantitatively analyzes the impact of industry-university collaboration on firms' research activities and productivity using Japanese firm data from 2001 to 2020. First, we analyze the characteristics of firms that engage in industry-university collaboration in terms of R&D input, output, and productivity. Next, based on those characteristics, we match firms that do and do not engage in industry-university collaboration using the propensity score matching method, and quantitatively examine the impact of the implementation of industry-university collaboration on productivity, research expenditures, and patents using the Difference in Differences method. As a result of comparing firms with equal research scale, productivity, and characteristics of enrolled researchers, but differing in whether or not they implement industry-university collaboration, it was confirmed that research expenditures increased after industry-university collaboration, especially in terms of applied development. In addition, a comparison of the number of patents before and after industry-university collaboration shows that there was no change in the number of patents in technological fields in which patents had already been obtained through industry-university collaboration prior to the change in policy, but there was an increasing number of patents in technological fields in which patents had not been previously obtained through industry-university collaboration.
    Date: 2023–09
  6. By: Soufiane Kherrazi; Karim Saïd (LAREQUOI - Laboratoire de recherche en Management - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines)
    Abstract: This paper addresses the issue of managerial practices within multilateral R&D collaborations subject to public sponsorship. The aim is to design a model of organisational, economic and social-based practices to manage public-funded consortia, while taking into account the interaction among these practices as well as the moderating effects of relational risks. Relying on a sample of 232 firms involved in European public-funded consortia, our findings show that the selected managerial practices improve the consortium's performance. However, the influence of public sponsorship influences the occurrence of relational risks and thereby the benefits of each practice. The implications of these findings are then discussed.
    Keywords: Managerial practices R&D collaboration consortium public sponsorship, Managerial practices, R&D, collaboration, consortium, public sponsorship
    Date: 2022–09
  7. By: Duygu Buyukyazici; ;
    Abstract: Regional capabilities are considered the primary source of the industrial diversification process. Even so, the existing practice is somewhat reluctant to observe their exact nature. The present study explores one important dimension of regional capabilities, namely the gender gap in workplace skills, and considers it in accounting for the observed patterns of industrial diversification of regions. By constructing a gender skill gap indicator at the industry-region level, female-biased and male-biased skill gaps are analysed. The descriptive and empirical analyses document significant variations of the gender skill gaps across industries and regions. By employing piecewise logistic models, the study unfolds the contrasting impacts of the female-biased and male-biased skill gaps on the industrial diversification of regions.
    Keywords: Regional Capabilities; Gender; Diversification; Skill Gap; Industries
    JEL: J24 O18 R10 R23
    Date: 2023–09

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