nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2008‒05‒10
ten papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. Information Technology, Research & Development, or Both? What Really Drives A Nation's Productivity By Francesco VENTURINI
  2. Productivity Growth, Knowledge Flows, and Spillovers By Gustavo Crespi; Chiara Criscuolo; Jonathan E. Haskel; Matthew Slaughter
  3. A Tool for Measuring Institutional Leadership and Its Implementation for the Evaluation of Organizational Leadership Capability By Kurmet Kivipõld; Maaja Vadi
  4. Do Different Types of Innovation Rely on Specific Kinds of Knowledge Interactions? By Franz Tödtling; Patrick Lehner; Alexander Kaufmann
  5. The Changing Impact of Product Design for a Company By Tuomo Kässi
  6. Studying Strategy Process in Organizations That Are Structurally Modulating between Exploration and Exploitation: Comparison of Computational Modelling and Case Study Approach By Marko Rillo
  7. Reengineering as an Efficient Solution to Redesign Activities and Processes of an Enterprise By Stefanescu, Laura; Ungureanu, Laura; Matei, Ion Viorel
  8. Changes in the Competitive Strategy of Estonian Public Companies in the next Five Years: Challenges for Top Managers, Academics and Consultants By Mait Raava
  9. Organization and Management Research in Estonia: Quo Vadis? By Raoul Üksvärav
  10. The Internet as a business environment in Romania By Moga, Liliana Mihaela; Virlanuta, Florina Oana; Buhociu, Florin Marian; Moga, George

  1. By: Francesco VENTURINI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: To what extent are the productivity spillovers of information technology related;to R&D activity? Do these factors distinctly affect economic growth, or does the IT impact merely reflect the embodiment of R&D-driven technical progress? Based on country-level data, this work shows that both forms of technically advanced capital (R&D and IT) matter for long-run productivity growth. We control for either the domestic specialization in digital productions or import penetration of high-tech goods. In any case, the national endowment of IT assets emerges as a robust source of spillovers. It is also shown that the R&D base of the domestic producers of IT goods is a fundamental driver of productivity for the industrialized countries. In terms of TFP gains, a low degree of industry specialization in information technology can hardly be compensated by a country's trade openness, ie importing R&D-intensive (IT) goods from abroad. This contrasts to what occurs for less advanced productions.
    Keywords: Information Technology, Productivity, Research & Development, Spillovers, Trade
    JEL: E22 F43 O32 O47
    Date: 2008–05
  2. By: Gustavo Crespi; Chiara Criscuolo; Jonathan E. Haskel; Matthew Slaughter
    Abstract: This paper explores the role of knowledge flows and productivity growth by linking direct survey data on knowledge flows to firm-level data on TFP growth. Our data measure the information flows often considered important, especially by policy-makers, such as from within the firm and from suppliers, customers, and competitors. We examine (a) what are the empirically important sources of knowledge flows? (b) to what extent do such flows contribute to TFP growth? (c) do such flows constitute a spillover of free knowledge? (d) how do such flows correspond to suggested spillover sources, such as multinational or R&D presence? We find that: (a) the main sources of knowledge are competitors; suppliers; and plants that belong to the same business group ; (b) these three flows together account for about 50% of TFP growth; (c) the main "free" information flow spillover is from competitors; and (d) multinational presence contributes to this spillover.
    JEL: F23 O47 O57
    Date: 2008–04
  3. By: Kurmet Kivipõld (University of Tartu, Faculty of Economics and Business Administration and Lääne-Viru School of Applied Sciences); Maaja Vadi (University of Tartu, Faculty of Economics and Business Administration)
    Abstract: The concept of Institutional Leadership opens up some essential aspects of organizational leadership capability that could be defined as the collective ability of leadership to detect and cope with changes in the external environment by maintaining the primary goals of the organization. The aim of this paper is to design a tool to measure institutional leadership and evaluate organizational leadership capability. Leadership came under greater focus within the institutional context at the end of the 1990s. On the one hand, this arose from the necessity to transfer leadership capabilities into the strategic assets of institutions, on the other, it is due to other approaches to management (i.e. cascading leadership, intellectual capital, organizational learning, knowledge management and self-organizing systems). The thing that unites all these approaches is their attempt to improve an organization's ability to adapt in a complex environment, and it is proposed that the ability to adapt is based on the knowledge of organizational members and to the extent that this knowledge is embedded in the pattern of organizational structure. Therefore, institutional leadership is an important issue for studying and improving the transformation of knowledge in the structure of an organization. A total of 445 respondents from six Estonian organizations participated by completing a questionnaire about institutional leadership. Next, a quantitative analysis was performed and sets of factors obtained from a partial least squares (PLS) regression and Cronbach alpha test. Finally, the pattern of individual items (statements) within each of the factors was identified and the results which indicate organizational leadership capability were plotted.
    Keywords: leadership, institutional leadership, intellectual capital, knowledge management, organizational learning, organizational structure, self-organizing systems, strategic management
    JEL: M10
    Date: 2008
  4. By: Franz Tödtling; Patrick Lehner; Alexander Kaufmann
    Date: 2008
  5. By: Tuomo Kässi (Department of Industrial Engineering and Management, Lappeenranta University of Technology)
    Abstract: The paper presents the strategic importance of the manufacturing function for a company with a particular focus on the evolving product design and its importance. The production paradigm has changed from the start of industrial evolution to the mass production era, further to lean manufacturing, and finally to a focus of customization. In the course of changing manufacturing, the product design has also changed. The old pattern of designing products according to customer needs is still valid. In the early days of industrial production customer needs could be fulfilled by product design feasible for mass production. This is no more possible as the requirements of customers have become wider and more specific. Customization in product design includes the idea of serving all the varying customer needs, while carrying out production as effectively as possible. This aim can be reached if modern methods of product design are applied. The paper shows how advanced product and product family design can influence the competitive advantage of the company. This aspect includes ideas of standardization, modularization, and product platform design. This way many strategic benefits can be achieved. The need for advanced product and product family design is caused by such factors as increasing customer requirements, evolving production paradigm, and opening worldwide market. On the other hand, utilization of modern information systems makes it possible to handle the large amount of information caused by the increased product variation. The various aspects of evolving product design are discussed, including standardization, modularization, product platform design, and mass customization of products. They all aim to offer the customers exactly the products they need. At the same time, the advanced product and production design makes it possible to serve the customers in a cost effective way. These qualifications have a great impact on corporate strategy and the competitive advantage of the company. In the opening market the cost advantage in production is seldom a sustaining competitive advantage. The competition from low cost countries cannot be avoided in an open market. It is claimed that the factors of production which have qualitative features being valuable, rare, inimitable and non-substitutable could give competitive qualities for products of a company. With these features the products can avoid direct price competition. If the product and production design can combine customization and cost effectiveness with the features of being valuable, rare, inimitable and non-substitutable, sustaining competitive advantage can be achieved for a while.
    Keywords: paradigms of production, production modes, product design, customer requirements
    JEL: L23 M11 M31
    Date: 2008
  6. By: Marko Rillo (Faculty of Economics and Business Administration, Tallinn University of Technology)
    Abstract: This paper analyses research methods that could be applicable for studying the strategy process in organizations that are shifting in their strategic change process between the modes of exploration and exploitation by the means of structural modulation (Nickerson & Zenger 2002). As the structural modulation phenomenon poses new methodological challenges in terms of handling processual and longitudinal data, then the traditional cross-sectional approach cannot be effectively used. For this purpose, the analysis focuses on two potential, seemingly opposite approaches – quantitative computational modelling and qualitative in-depth case study analysis. It finally concludes with a "to do" list in order to establish the next steps in the research plan.
    Keywords: research methods; strategy process; exploration; exploitation; structural modulation; system dynamics; case study
    JEL: L20 L21 L22 L25 M10
    Date: 2008
  7. By: Stefanescu, Laura; Ungureanu, Laura; Matei, Ion Viorel
    Abstract: The paper shows a series of opportunities linked to the technological, human and economical reengineering of activities and technological processes developed in a modern enterprise, adding new dimensions in the efficient development, on the market principles, in argument with the desiderate of the durable development of the society. Starting with these considerations we designed aspects linked to: business reengineering implementation, stages of this process, accentuating the management methods, delimitation on areas of activity of the effects on reengineering action.
    Keywords: business reengineering process; reengineering enterprise; models and methods for reengineering project
    JEL: O1 M21
    Date: 2008–05–06
  8. By: Mait Raava (Department of Management, Estonian Business School)
    Abstract: To create a sustainable competitive advantage, the firm must adapt its strategy in accordance with changes in industry. The purpose of this survey is to reveal how top managers see major changes in strategic management over the next five years. Companies from the Tallinn OMX Market were chosen as a sample of leading companies. Structured interviews were conducted with thirteen top managers. This revealed highly plausible changes in strategic management over the next five years as predicted by top managers of Estonian public companies – these were in the areas of the value chain, corporate structure, planning and control systems, motivation schemes and external opportunities. The major challenges for top managers in the near future are to successfully align the organizational structure with the value chain in accordance with emerging opportunities in foreign markets and define and invest enough in distinctive competencies to achieve sustainable profitable growth. This result is in accordance with the reflections of top mangers that their main priorities in strategic research and development are to facilitate the strategy development process, implement management tools, and research into and share knowledge and experience of doing business in foreign markets. These results suggest specific challenges for academics and consultants for achieving better collaboration in strategic management and development.
    Keywords: competitive advantage, strategic management, future challenges, research and development, collaboration
    JEL: M12 L32
    Date: 2008
  9. By: Raoul Üksvärav (School of Economics and Business Administration, Tallinn University of Technology)
    Abstract: In this paper some principal possibilities and developments for the future research activities on organization and management, and dilemmas connected with that area are analysed and discussed. The author’s position is that the fundamentals in this field were cleared up and finally established in the last century. On that account, there does not exist any chance to discover brand new basic truths in that field. On the contrary, as organization and management are subjects to consistent changes in practice, this field is wide-opened to discovering new approaches, treatments, solutions, etc. on that ground. Dilemmas confronting researchers have been set forth (global opportunities vs. local needs, original ideas vs. modified ones, pure research activity vs. research plus application).
    Keywords: Organization and management theory; management research dilemmas; management consulting
    JEL: M00 M19
    Date: 2008
  10. By: Moga, Liliana Mihaela; Virlanuta, Florina Oana; Buhociu, Florin Marian; Moga, George
    Abstract: In an ever-developing society, a strong, viable economy is vital for any country that seeks to survive on the global market and to provide upwardly decent living standards for its citizens. Recognizing the above mentioned points as mandatory, but also prompted in its actions by the European community of which it recently became a member, Romania is taking steps to develop its electronic commerce to meet 21st century global standards. Some of the more important legal measures that have aided the development of e-commerce in Romania include the liberalization of telecommunications, the validation of electronic documents, the creation of customer protection services and regulations and the facilitation of electronic fund transfer through debit/credit cards. The obstacles encountered in the implementation of e-commercial transactions are manifold. The small number of users that can access the Internet from home and the people’s mistrust and lack of familiarity with e commercial transactions are only a few of the hindrances setting back their development in Romania. Emanating from the present study are numerous solutions for the improvement and popularization of Romanian e-commerce which would raise awareness about the advantages of electronic commerce on the Romanian business scene.
    Keywords: e-commerce; e-banking; usage; factors
    JEL: F11 C88 G21
    Date: 2007–11–01

This nep-knm issue is ©2008 by Laura Stefanescu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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