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on Economics of Strategic Management |
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Issue of 2024‒03‒11
five papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Anderson, Stephen J.; Chintagunta, Pradeep; Vilcassim, Naufel J. |
| Abstract: | This paper studies the impact of international business coaching via virtual collaboration technology on the strategies and sales of emerging market entrepreneurs. It sheds light on three novel research questions: (1) What is the effect of virtual business coaching on firm sales? (2) What is the mechanism through which this effect occurs; specifically, does virtual coaching stimulate shifts in marketing strategy? (3) Do entrepreneurs benefit more from virtual coaching when they are less strategic in their decision-making? We conducted a randomized controlled field experiment with 930 entrepreneurs in Uganda to examine the impact of a virtual coaching intervention that connects management professionals in primarily advanced markets and entrepreneurs in emerging markets with the aim of improving business performance. The analysis finds a positive and significant main effect on firm sales – treatment entrepreneurs increase monthly sales by 27.6% on average. In addition, entrepreneurs who receive virtual coaching are 52.8% more likely to have shifted their marketing strategy in a new direction. Moreover, consistent with this mechanism of inducing strategic business changes, the results show that entrepreneurs who receive virtual coaching tend to do better when they (ex ante) lack strategic focus. These results have important implications for the development of marketing strategies by entrepreneurs and multinational managers, as well as for policymakers interested in improving the performance of small firms in emerging markets and beyond. |
| Keywords: | marketing strategy innovation; strategic shift; business model change; pivoting; international business coaching; virtual collaboration technology; Covid-19 and remote work; small firm growth; entrepreneurship; joint Growth Research Program; Marshall Institute |
| JEL: | J50 |
| Date: | 2023–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120474&r=cse |
| By: | ZHU Chen; MOTOHASHI Kazuyuki |
| Abstract: | Startups have emerged as pivotal innovators in the commercialization of AI technology. Nonetheless, these nascent enterprises often require substantial capital infusion to realize the economic returns from their innovations. This study examines the role of prototypes in facilitating their fundraising process. We utilized historical web content to identify the presence of prototypes and employed web traffic data to monitor their customer growth. Our findings indicate that prototyping positively affects the potential customer attraction process, signaling the feasibility and profitability of their business hypotheses to potential investors. In addition, as a technologically intensive industry, most AI startups begin with a technology-centric approach. While a technology-led starting point underscores competitiveness, it also inherently introduces uncertainty. We offer quantitative evidence demonstrating how prototyping acts as a moderating factor, reducing the impact of such uncertainty by expediting investor decision-making. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24021&r=cse |
| By: | Yuan Gao (School of Economics, University of East Anglia); Emiliya Lazarova (School of Economics, University of East Anglia) |
| Abstract: | The research on measuring technological innovation quality has evolved with our understanding of the origin of novelty. Patents have been widely used in such studies because they are a form of copyright-protected outcome of inventions deemed to be valuable. The quality of technological innovation can be measured in multiple dimensions. In this paper, we make a methodological contribution to the literature on ex-ante technological novelty and propose two new indices based on a network approach: the Inverse Recombination Intensity Index (IRII) to capture the extent to which an invention is the outcome of a novel combination of pre-existing technological components; and the New Technology Ratio (NTR) to measure the share of new knowledge elements in the invention. Through an in-depth empirical study of patents filed in the Pharmaceuticals and Computer Technology sectors, we show that our proposed indices are correlated with some of the conventional patent quality indicators and go beyond that to reveal previously unnoticed features of the inventions process, of which some are sector-specific. Moreover, through our regression analysis, we demonstrate that IRII and NTR are important predictors of a patents’ potential impact on future inventions, which confirms the ex-ante nature of our indices. In the regression analysis we also include sector-country-specific R&D input variables as controls to test the robustness of our results. Our analysis suggests that the distinct characteristics of each sector affect how the quality of innovation is related to the ex-ante measures of technological novelty. We argue, therefore, that future analysis of the link between ex-ante novelty and ex-post quality of innovation needs to take into consideration the recombinant content of the invention and account for sectoral characteristics. |
| Keywords: | Innovation quality, Disruptive novelty, Ex-ante novelty, Patent, Network |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:uea:ueaeco:2024-02&r=cse |
| By: | Yuetong Wang (University of Manchester, Manchester, United Kingdom) |
| Abstract: | Chinese state-owned enterprises play a significant global role. Cross-regional development has emerged as a pivotal strategic choice due to China's imperative for sustained economic growth and the continuously evolving market dynamics. The research aim is to enhance Human resource management practices within Chinese SOEs and provide a comprehensive understanding of HRM strategies to facilitate effective cross-regional development, which is a crucial insight into coordinated development and sustained growth in different regions. This objective is achieved through a quantitative research method to enable a meticulous analysis of the intricate interplay among Confucian cultural factors, HRM practices, and employee satisfaction, examining the complex relationships, including correlations, and mediating effects. Significantly, the research findings highlight a pivotal sub-domain of HRM—Staffing, which exhibits the highest mediating effect among these variables. This implies that dedicating resources, efforts, and attention to this specific area can yield substantial benefits for organizations. It establishes a foundation and focal point for formulating HRM strategies for cross-regional development. This research not only offers a nuanced perspective on HRM practices in a cross-regional context, but also reveals the intricacies of operations within Chinese SOEs. Furthermore, it holds the promise of providing valuable insights and inspiration for the fields of international business management and cross-cultural management, shedding light on the complexities involved and offering valuable lessons for international enterprises operating in similar contexts. |
| Keywords: | ross-regional development, HRM practices, HRM strategies, Chinese SOEs, cultural factors, employee satisfaction |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0356&r=cse |
| By: | Daron Acemoglu (Massachusetts Institute of Technology); Philippe Aghion (Collège de France; INSEAD; London School of Economics and Political Science); Lint Barrage (ETH Zurich); David Hémous (University of Zurich) |
| Abstract: | To combat climate change without sacrificing long-term economic growth, innovation must be redirected toward green technologies. The authors review recent literature that has developed a directed technical change framework where innovation can be endogenously targeted either toward fossil-fuel enhancing technologies or clean energy sources (such as renewables). They provide empirical evidence of path dependence in firms' choice between green and dirty innovation. They then draw implications of this path dependence for the design of environmental policy and for economic growth. In particular, they show that their framework has distinctive implications regarding unilateral environmental policies, international cooperation, the use of intermediate energy sources such as natural gas, and the role of civil society. |
| Keywords: | green growth, endogenous growth, directed technical change, climate change, innovation, environmental policy |
| JEL: | F18 O30 O41 O44 Q43 Q54 Q55 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp23-14&r=cse |