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on Economics of Strategic Management |
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Issue of 2025–02–10
eight papers chosen by João José de Matos Ferreira, Universidade da Beira Interior |
| By: | Davide M. Coluccia; Gaia Dossi |
| Abstract: | This paper documents that out-migration promotes the diffusion of innovation from the country of destination to the country of origin of migrants. Between 1870 and 1940, nearly four million British immigrants settled in the United States. We construct a novel individual-level dataset linking British immigrants in the US to the UK census, and we digitize the universe of UK patents from 1853 to 1899. Using a triple-differences design, we show that migration ties contribute to technology diffusion from the destination to the origin country. The text analysis of patents reveals that emigration promotes technology transfer and fosters the production of high-impact innovation. Return migration is an important driver of this "return innovation" effect. However, the interactions between emigrants and their origin communities - families and neighbors - promote technology diffusion even in the absence of migrants' physical return. |
| Keywords: | age of mass migration, innovation, networks, out-migration |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2069 |
| By: | Dirk Czarnitzki; Robin Lepers; Maikel Pellens |
| Abstract: | The circular economy represents a systematic shift in production and consumption, aimed at extending the life cycle of products and materials while minimizing resource use and waste. Achieving the goals of the circular economy presents firms with the challenge of innovating new products, technologies, and business models, however. This paper explores the role of artificial intelligence as an enabler of circular economy innovations. Through an empirical analysis of the German Community Innovation Survey, we show that firms investing in artificial intelligence are more likely to introduce circular economy innovations than those that do not. Additionally, the results indicate that the use of artificial intelligence enhances firms’ abilities to lower production externalities (for instance, reducing pollution) through these innovations. The findings of this paper underscore artificial intelligence’s potential to accelerate the transition to the circular economy. |
| Keywords: | Circular economy, Innovation, Artificial intelligence |
| Date: | 2025–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:758339 |
| By: | Patrick Llerena; Corentin Lobet; Andr\'e Lorentz |
| Abstract: | We propose a disaggregated representation of production using an agent-based fund-flow model that emphasizes inefficiencies, such as factor idleness and production instability, and allows us to explore their emergence through simulations. The model incorporates productivity dynamics (learning and depreciation) and is extended with time-saving process innovations. Specifically, we assume workers possess inherent creativity that flourishes during idle periods. The firm, rather than laying off idle workers, is assumed to harness this potential by involving them in the innovation process. Results show that a firm's organizational and managerial decisions, the temporal structure of the production system, the degree of workers' learning and forgetting, and the pace of innovation are critical factors influencing production efficiency in both the short and long term. The coevolution of production and innovation processes emerges in our model through the two-sided effects of idleness: the loss of skills through forgetting and the deflection of time from the production of goods to the production of ideas giving birth to idleness-driven innovations. In doing so, it allows us to question the status of labour as an adjustment variable in a productive organisation. The paper concludes by discussing potential solutions to this issue and suggesting avenues for future research. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.09778 |
| By: | Kaninda Mukena Carlos (Université Pédagogique Nationale); El Kezazy Hamza (UIT - Université Ibn Tofaïl); Hilmi Yassine (UCD - Université Chouaib Doukkali); Helmi Driss (Université Mohamed 1 Oujda MAROC); Hajrioui Zahra (UCD - Université Chouaib Doukkali) |
| Abstract: | The integration of new technologies into management control systems has led to significant changes in management practices, presenting both opportunities and ethical challenges. This paper explores these changes and highlights the importance of addressing ethical considerations in technology use. The literature review covers the evolution of technology in management control systems and the role of ethics in driving innovation. It discusses emerging technologies like artificial intelligence, Big Data, process automation, and the Internet of Things, and their impacts on management practices. Case studies illustrate real-world ethical challenges and organizational responses, revealing valuable lessons and best practices. The paper underscores the need for a proactive approach to ethical management. Managers should be aware of the ethical implications of technology and implement strong ethical practices. Future research should focus on understanding the ethical challenges of emerging technologies, factors influencing the adoption of ethical practices, and the long-term effects of ethical management on organizational performance. |
| Keywords: | New Technologies + Management Control + Systems Innovation + Organizational Performance + Big Data |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04852701 |
| By: | Eric Iversen; Arvid Raknerud (Statistics Norway); Marit Klemetsen; Brita Bye (Statistics Norway) |
| Abstract: | What difference does government support of business R&D make to the rate of innovation? Addressing this important question has deep theoretical roots and broadening practical applications in OECD countries. The analysis of output additionality has been hampered by incomplete data combined with adaption of problematic methodologies. In this light, we contribute to the formative literature in three main ways: we analyze comprehensive panel data of Norwegian enterprises over a 20-year period; we include trademarks and industrial designs as well as patents to broaden measures of innovation output; and we apply machine learning methods to estimate treatment effect functions, thereby addressing the problem of a practically unlimited number of potential confounding factors. Our findings support and elaborate earlier work that fiscal stimulus tends to have greatest impact on previously non-innovative firms. The impact of support measures, alone or in combination, is on the extensive rather than intensive margin. For previously R&D-active firms, our results indicate that public support has low additionality and even risks crowding-out private financing of R&D. |
| Keywords: | Innovation; R&D support; Output additionality; Intellectual property rights; Patents; Trademarks; Public policy instruments; Lasso; Double selection; Poisson regression |
| JEL: | C33 C52 O31 O34 O38 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1020 |
| By: | Eriksson, Tor; Ortega, Jaime |
| Abstract: | Using firm-level data from Denmark, a country characterized by a high level of adoption of “high-performance work practices” (HPWPs), we document a large percentage of firms with limited adoption and large differences depending on the firms’ organizational structures. To explain these differences, we propose a theoretical framework based on agency theory and on human resource (HR) process theory in which the benefits of HPWPs vary across organizations according to their organizational structure. We find that opportunity- and skill-enhancing practices are more frequently used in firms with a network structure than in firms with a divisional structure, which in turn use them more frequently than firms with a functional structure. These findings are consistent with the idea that firms whose structures are designed to rely more heavily on employee control benefit less from HPWPs than those whose structures are meant to promote employee commitment. The use os performance pay is greater in divisional firms than in functional firms, which is consistent with this same idea. However, we find that the use of performance pay is lower in network organizations than in divisional organizations and is not significantly different from its use in functional organizations. |
| Keywords: | High-performance work practices, organizational structure |
| JEL: | M2 M5 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123332 |
| By: | Houda Alhoussari (Prince Sultan University [Riyad], IODE - Institut de l'Ouest : Droit et Europe - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This study explores the integration of Environmental, Social, and Governance (ESG) principles into corporate practices, focusing on the methodologies used for their evaluation and the factors influencing their adoption. Through a qualitative and comparative analysis of European and Saudi Arabian contexts, the research examines how companies align their strategies with ESG requirements in diverse regulatory and cultural environments. Data is drawn from established ESG rating agencies, corporate sustainability reports, and case studies, allowing for a thorough investigation of internal and external evaluation processes and their implications for ESG scores. The study identifies key challenges in ESG implementation, including ambiguities in definitions, resource disparities, sector-specific considerations, and resistance due to cost or unfavorable ratings. It also highlights the role of legal and regulatory frameworks, such as the ESG Disclosure Guidelines introduced by the Saudi Capital Market Authority and global standards like the Global Reporting Initiative (GRI), in shaping corporate ESG practices. Recommendations emphasize the need for standardized evaluation criteria, targeted support for smaller enterprises, and stronger legal frameworks to promote transparency and compliance. The findings contribute to a deeper understanding of ESG dynamics and provide actionable insights for advancing corporate sustainability on a global scale. |
| Keywords: | Environmental Social and Governance (ESG), Corporate Sustainability, Corporate Accountability and Transparency, Evaluation Methodologies, Companies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04883833 |
| By: | Adesina, Toheeb |
| Abstract: | This research investigates how artificial intelligence (AI) agents function in the advertising sector. It focuses on the transformation, applications, benefits, and concerns of Artificial Intelligence (AI) in the new era of marketing. The research used secondary data from industry reports, academic studies and case studies, on how AI agent enhances ad targeting, campaign optimization, personalization, and predictive analysis. The main conclusions show that AI agents significantly increase productivity and customer engagement, but there are still issues with algorithmic biases and data privacy. The study highlights the need for a well-rounded strategy for implementing AI, supporting both innovation and moral considerations. To improve the advertising ecosystem, these insights are meant to help marketers and legislators use AI responsibly. |
| Keywords: | Advertising, Marketing, Artificial intelligence, Machine learning, AI-powered advertising, Programmatic advertising, Personalization, Predictive analytics, Consumer engagement, Chatbots, Innovation |
| JEL: | M3 M31 M37 |
| Date: | 2025–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123413 |