nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2011‒06‒18
three papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. IDENTIFYNG VALUE –BASED ORGANIZATIONS By Dr. Mohammad-Ali Sarlak; Sayed-Mahdi Viseh; Abd-al-samad Khademy
  2. Beyond Additionality: Are Innovation Subsidies Counterproductive? By Catozzella, Alessandra; Vivarelli, Marco
  3. Do financial constraints threat the innovation process? Evidence from Portuguese firms By Filipe Silva; Carlos Carreira

  1. By: Dr. Mohammad-Ali Sarlak (Payam-E-Noor University, Iran); Sayed-Mahdi Viseh; Abd-al-samad Khademy (Governmental Management, Payam-E-Noor University, Iran)
    Abstract: Owing to the day-by-day development of technology, global communication, and information networks, the dynamicity of investment and work forces has increased and the organizations such as join stock companies have no choice but to a new organizing era. Value-based organizations are one of the newest forms of today's organizations in which customers are as affecting the production and providing services, working and process strategies, and developing knowledge and competitive power, alongside with the members. "The organizations are always looking for the new methods and creating innovation, and they even name the value of the customer as their 'future source of competitive advantage'" (Kandampully & Khahn, 2004, p.398). Management based on value and value-based organizations are now affecting today's organizations, and values are regarded to be an undeniable source of competitive advantage. Hence, effectively managing the relationship with the customer, and creating and presenting values are the main mission of such organizations. This paper is attempting to provide a definition for the concept of value, and discuss the nature, their features and aspects, the importance, the advantages, key factors in their success, the phases of creating a value-based organization, expanding the values, the future of such organizations, their challenges, and also the role of the leaders in institutionalizing the values
    Keywords: Value, Value-based Organizations, Value-based Management
    JEL: M0
    Date: 2011–03
  2. By: Catozzella, Alessandra (University of Pavia); Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: Building on a standard policy evaluation literature mainly aimed at estimating the additional effect of subsidies on either firms' innovative expenditures or innovative outputs only, this paper tries to move one step further, combining the two (input and output) dimensions of innovation into a unique efficiency perspective. To this aim, the impact of public funding on the ratio between innovative sales and innovative expenditures (innovative productivity) is estimated using a sample of firm-level data drawn from the third Italian Community Innovation Survey (CIS). A bivariate endogenous switching model has been developed in order to free the analysis of any ex ante sources of sample selection and firm heterogeneity, at the same time getting rid of the two sources of endogeneity potentially affecting the results, i.e. the possible simultaneity between subsidy allocation and the qualitative composition of the innovative output, as well as the endogeneity of public support with respect to innovative performance. Results show that innovative productivity is negatively affected by the innovation subsidy; far from 'doing better' as a result of government intervention, supported firms appear to exhaust their advantage through merely increasing their innovative expenditures.
    Keywords: bivariate endogenous switching model, product innovation, policy evaluation, innovation subsidy
    JEL: O32 O38
    Date: 2011–05
  3. By: Filipe Silva (Faculdade de Economia/GEMF, Universidade de Coimbra); Carlos Carreira (Faculdade de Economia/GEMF, Universidade de Coimbra)
    Abstract: This paper investigates the extent to which R&D investment and innovation are financially constrained. For that purpose, we resort to the estimation of a selection model of R&D investment, a simultaneous equations probit model of innovation and constraints and cash to cash-flow sensitivities upon an unique and newly assembled dataset that comprises information on firms' characteristics, balance sheet information and data on firms' innovation activity. Our findings suggest that firms that do not invest in R&D and those that do not receive public funding are financially constrained. Finally, controlling for endogeneity, financial constraints severely reduce the amounts invested in R&D and seriously hamper innovation.
    Keywords: Innovation; R&D investment; Financial constraints; Firm-level studies; Portugal.
    JEL: O30 D92 G32 L00 L2
    Date: 2011–05

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