nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2024‒05‒27
five papers chosen by
João José de Matos Ferreira, Universidade da Beira Interior

  1. Bridging the innovation gap. AI and robotics as drivers of China’s urban innovation By Andres Rodriguez-Pose; Zhuoying You; ;
  2. Are Immigrants More Innovative? Evidence from Entrepreneurs By Lee, Kyung Min; Kim, Mee Jung; Brown, J. David; Earle, John S.; Liu, Zhen
  3. Knowledge Workers and Firm Capabilities By Mengus, Eric; Michalski, Tomasz
  4. Entrepreneurial Ecosystems as an Enabler of Technological Sovereignty: The Case of the Indian Short Form Video Market By Pillai, Neiil (Nehaal); Dietlmeier, Simon Frederic; Urmetzer, Florian
  5. Does ESG have an impact on stock performance? A panel study of Indian companies By Singh, Sachin; Singh, Bhanu Pratap

  1. By: Andres Rodriguez-Pose; Zhuoying You; ;
    Abstract: Artificial intelligence (AI) and robotics are revolutionising production, yet their potential to stimulate innovation and change innovation patterns remains underexplored. This paper examines whether AI and robotics can spearhead technological innovation, with a particular focus on their capacity to deliver where other policies have mostly failed: less developed cities and regions. We resort to OLS and IV-2SLS methods to probe the direct and moderating influences of AI and robotics on technological innovation across 270 Chinese cities. We further employ quantile regression analysis to assess their impacts on innovation in more and less innovative cities. The findings reveal that AI and robotics significantly promote technological innovation, with a pronounced impact in cities at or below the technological frontier. Additionally, the use of AI and robotics improves the returns of investment in science and technology (S&T) on technological innovation. AI and robotics moderating effects are often more pronounced in less innovative cities, meaning that AI and robotics are not just powerful instruments for the promotion of innovation but also effective mechanisms to reduce the yawning gap in regional innovation between Chinese innovation hubs and the rest of the country.
    Keywords: AI, robotics, China, technological innovation, territorial inequality
    Date: 2024–04
  2. By: Lee, Kyung Min; Kim, Mee Jung; Brown, J. David; Earle, John S.; Liu, Zhen
    Abstract: We evaluate the contributions of immigrant entrepreneurs to innovation in the U.S. using linked survey-administrative data on 199, 000 firms with a rich set of innovation measures and other firm and owner characteristics. We find that not only are immigrants more likely than natives to own businesses, but on average their firms display more innovation activities and outcomes. Immigrant-owned firms are particularly more likely to create completely new products, improve previous products, use new processes, and engage in both basic and applied R&D, and their efforts are reflected in substantially higher levels of patents and productivity. Immigrant owners are slightly less likely than natives to imitate products of others and to hire more employees. Delving into potential explanations of the immigrant-native differences, we study other characteristics of entrepreneurs, access to finance, choice of industry, immigrant self-selection, and effects of diversity. We find that the immigrant innovation advantage is robust to controlling for detailed characteristics of firms and owners, it holds in both high-tech and non-high-tech industries and, with the exception of productivity, it tends to be even stronger in firms owned by diverse immigrant-native teams and by diverse immigrants from different countries. The evidence from nearly all measures that immigrants tend to operate more innovative and productive firms, together with the higher share of business ownership by immigrants, implies large contributions to U.S. innovation and growth.
    Date: 2024–04–18
  3. By: Mengus, Eric (HEC Paris); Michalski, Tomasz (HEC Paris)
    Abstract: Specialized knowledge-generating jobs comprise close to one fifth of employment and one fourth of the wage bill in French manufacturing firms. They are positioned high in the firm hierarchy, horizontally aside upper-tier managers but are not managerial in nature. This escapes the patterns implied by the hierarchy view of the firm. Conditioning on firm size and shares of management workers, their higher shares in employment at the firm level are correlated with more innovation and intangible capital, greater product complexity, higher revenue and quantity total factor productivity and profitability. This suggests that firms use specialized knowledge workers to generate within-firm knowledge and create firm capabilities. Consistently, we model firms as organizations where efficient production of higher-value added, complex goods requires information acquisition by within-firm knowledge workers to develop capabilities beyond those created by management and hierarchies.
    Keywords: firm organization; complexity; productivity; knowledge generation; capabilities
    JEL: D23 D24 D83 J24 L20 M10 M50
    Date: 2023–01–20
  4. By: Pillai, Neiil (Nehaal); Dietlmeier, Simon Frederic; Urmetzer, Florian
    Abstract: This paper examines whether the geopolitical objective of technological sovereignty is attainable and enabled by entrepreneurial ecosystems, as both concepts aim to improve economic competitiveness. A qualitative single-case study of the Indian short-form video (SFV) market, which provides some of the most innovative business-to-consumer (B2C) digital applications, was conducted based on 20 stakeholder interviews and triangulated archival data. Numerous SFV start-ups were created in the city of Bangalore after a geopolitical incident that prompted the Indian government to ban comparable Chinese SFV apps, including TikTok. The research empirically demonstrates that the Bangalore entrepreneurial ecosystem facilitated technological sovereignty in three steps based on an input-process-output (IPO) model to enable the creation of these “sovereign” Indian SFV apps. Core of the theoretical enablement process is the adaptability of an entrepreneurial ecosystem to socio-political disruptions induced by geopolitical and geoeconomic objectives. This allows for ecosystem self-sustainment and triggers technological sovereignty as ecosystem response.
    Keywords: Ecosystem; Sovereignty; Technology; Geopolitics; Innovation
    JEL: F2 I2 L1 N4 Y4
    Date: 2024–03–30
  5. By: Singh, Sachin; Singh, Bhanu Pratap
    Abstract: The present study investigates the impact of environmental, social, and governance (ESG) on firms' profitability in the Indian setting on a sample of 23 firms from 2015 to 2020. The bootstrap corrected fixed effects estimation and inference in the dynamic panel method is employed to investigate the relationship. The dynamic panel results show that the relationship between ESG score and firms' profitability is inconclusive in the short run. However, governance conditions affect firms' investment decisions and the nexus between ESG and firm financial performance in the long run. Therefore, institutional reforms are warranted to stabilize property rights and check parent-client politics for the long-run effects of sustainable environmental governance on firms' profitability.
    Keywords: ESG scores, Indian firms, firms' profitability, dynamic panel
    JEL: O10 O30 O33 O38
    Date: 2024–04

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