nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2025–08–25
six papers chosen by



  1. AIs Structural Impact on Indias Knowledge Intensive Startup Ecosystem: A Natural Experiment in Firm Efficiency and Design By Venkat Ram Reddy Ganuthula; Ramesh Kuruva
  2. International trade and innovation: pathways to firm survival and competitiveness By Alexander Pitharides
  3. A climate stress testing exercise on loans to European small and medium enterprises By Chen Yujia; Ding Zhenghong; Barbaglia Luca; Calabrese Raffaella; Fatica Serena
  4. The Influence of Sustainable Supplier Management Practices on Organizational Performance: A Case of Dodoma Quality Furniture in Tanzania By Magreth Felician Felix; Ismail Abdi Changalima; Goodluck Goldian Ntangeki
  5. Eco-Innovation and Earnings Management: Unveiling the Moderating Effects of Financial Constraints and Opacity in FTSE All-Share Firms By Probowo Erawan Sastroredjo; Marcel Ausloos; Polina Khrennikova
  6. AI Investment and Firm Productivity: How Executive Demographics Drive Technology Adoption and Performance in Japanese Enterprises By Tatsuru Kikuchi

  1. By: Venkat Ram Reddy Ganuthula; Ramesh Kuruva
    Abstract: This study explores the structural and performance impacts of artificial intelligence (AI) adoption on Indias knowledge intensive startups, spanning information technology, financial technology, health technology, and educational technology, founded between 2016 and 2025. Using a natural experiment framework with the founding year as an exogenous treatment proxy, it examines firm size, revenue productivity, valuation efficiency, and capital utilization across pre AI and AI era cohorts. Findings reveal larger structures and lower efficiency in AI era firms, supported by a dataset of 914 cleaned firms. The study offers insights into AIs transformative role, suggesting that while AI era firms attract higher funding and achieve higher absolute valuations, their per employee productivity and efficiency ratios are lower, potentially indicating earlystage investments in technology that have yet to yield proportional returns. This informs global entrepreneurial strategies while highlighting the need for longitudinal research on sustainability.
    Date: 2025–07
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2507.19775
  2. By: Alexander Pitharides
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:sus:susphd:0124
  3. By: Chen Yujia; Ding Zhenghong; Barbaglia Luca (European Commission - JRC); Calabrese Raffaella; Fatica Serena (European Commission - JRC)
    Abstract: "This paper assesses the impact of floods on credit to European small and medium-sized enterprises (SMEs) using a discrete-time survival model. We find a statistically significant relationship between the default probability of loans to SMEs and floods occurring in the region where the firm is located. We propose a micro-level stress testing exercise to assess the performance of small business loans under different climate scenarios.Our results allow us to identify the European regions with heightened vulnerability under a stressed climate scenario and to quantify the impacts upon individual firms in terms of increases in loan default probability."
    Date: 2025–07
    URL: https://d.repec.org/n?u=RePEc:jrs:wpaper:202506
  4. By: Magreth Felician Felix (Tanzania Revenue Authority); Ismail Abdi Changalima (UDOM - University of Dodoma [Tanzanie]); Goodluck Goldian Ntangeki (CBE - College of Business Education)
    Abstract: Despite the growing attention to sustainability in supply chain management, empirical evidence on how sustainable supply chain practices directly influence organizational performance, particularly from the perspective of developing countries, remains limited. To fill this gap, the study examines the influence of sustainable supplier management practices on organizational performance. The study relied on the data obtained through structured questionnaires from randomly selected 80 respondents from Dodoma quality furniture located in Dodoma city, Tanzania. The collected data were analyzed by using descriptive and multiple linear regression analysis in IBM SPSS version 25. The findings reveal that sustainable supplier management practices, including sustainable supplier selection, sustainable supplier integration, and sustainable supplier monitoring, are perceived as relevant in a manufacturing firm. Furthermore, the findings indicate that sustainable supplier selection, sustainable supplier integration, and sustainable supplier monitoring are positively and significantly related to organizational performance. These findings confirm that sustainable supplier management practices are critical determinants of organizational performance in the context of a manufacturing firm. The study emphasizes prioritizing sustainability in supply chain management to enhance long-term performance and gain a competitive edge in environmentally conscious markets. The positive role of sustainable supplier management practices on organizational performance urges policymakers to develop comprehensive policies supporting sustainable supplier practices, enabling organizations to achieve economic, environmental, and societal benefits while navigating competitive challenges.
    Keywords: Performance, sustainable supplier integration, sustainable supplier monitoring, sustainable supplier selection, sustainable supply chain management
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05153497
  5. By: Probowo Erawan Sastroredjo; Marcel Ausloos; Polina Khrennikova
    Abstract: Our research investigates the relationship between eco-innovation and earnings management among 567 firms listed on the FTSE All-Share Index from 2014 to 2022. By examining how sustainability-driven innovation influences financial reporting practices, we explore the strategic motivations behind income smoothing in firms engaged in environmental initiatives. The findings reveal a positive association between eco-innovation and earnings management, suggesting that firms may leverage ecoinnovation not only for environmental signalling but also to project financial stability and meet stakeholder expectations. The analysis further uncovers that the propensity for earnings management is amplified in firms facing financial constraints, proxied by low Whited-Wu (WW) scores and weak sales performance, and in those characterised by high financial opacity. We employ a robust multi-method approach to address potential endogeneity and selection bias, including entropy balancing, propensity score matching (PSM), and the Heckman Test correction. Our research contributes to the literature by providing empirical evidence on the dual strategic role of ecoinnovation -balancing sustainability signalling with earnings management, under varying financial conditions. The findings offer actionable insights for regulators, investors, and policymakers navigating the intersection of corporate transparency, financial health, and environmental responsibility.
    Date: 2025–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2508.14935
  6. By: Tatsuru Kikuchi
    Abstract: This paper investigates how executive demographics particularly age and gender influence artificial intelligence (AI) investment decisions and subsequent firm productivity using comprehensive data from over 500 Japanese enterprises spanning from 2018 to 2023. Our central research question addresses the role of executive characteristics in technology adoption, finding that CEO age and technical background significantly predict AI investment propensity. Employing these demographic characteristics as instrumental variables to address endogeneity concerns, we identify a statistically significant 2.4% increase in total factor productivity attributable to AI investment adoption. Our novel mechanism decomposition framework reveals that productivity gains operate through three distinct channels: cost reduction (40% of total effect), revenue enhancement (35%), and innovation acceleration (25%). The results demonstrate that younger executives (below 50 years) are 23% more likely to adopt AI technologies, while firm size significantly moderates this relationship. Aggregate projections suggest potential GDP impacts of 1.15 trillion JPY from widespread AI adoption across the Japanese economy. These findings provide crucial empirical guidance for understanding the human factors driving digital transformation and inform both corporate governance and public policy regarding AI investment incentives.
    Date: 2025–08
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2508.03757

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