nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2015‒04‒11
eleven papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. The Cost of Knowledge. By Antonelli, Cristiano; Colombelli, Alessandra
  2. R&D Spillovers Effects on strategic behaviour of Large International Firms By Aldieri, Luigi; Aprile, Maria Carmela; Vinci, Concetto Paolo
  3. Integrated Framework for Increasing the Effectiveness of Knowledge Networks: Roles of Network Providers and Users By Jain, Rekha; Singh, Manjari
  4. Asymmetry of the information and the knowledge between owners and workers in large family companies, as the determinant of their success By Ireneusz Maj
  5. Innovation in Business Group Firms: Influence of Network Diversity By Kerai, Anita; Sharma, Sunil
  6. Conceptualizing Local Knowledge and Disaster Management By Khan, Abdul Razzaq; Khan, Abuturab; Razzaq, Sadia
  7. What is the Causal Effect of Knowledge on Preferences? By Jacob LaRiviere; Mikolaj Czajkowski; Nick Hanley; Katherine Simpson
  8. An Assignment Model of Knowledge Diffusion and Income Inequality By Luttmer, Erzo G. J.
  9. Organization Design for Knowledge Transfer in Alliances By Sharma, Sunil
  10. Information, knowledge and behavior: evaluating alternative methods of delivering school information to parents By Cerdan-Infantes,Pedro; Filmer,Deon P.
  11. Internationalization of Firms from Emerging Economies: An Organizational Learning Framework By Sharma, Sunil

  1. By: Antonelli, Cristiano; Colombelli, Alessandra (University of Turin)
    Abstract: This paper contributes the economics of knowledge and innovation with the analysis of the knowledge cost function and sheds light on the determinants of the large variance in the cost of innovation across firms. The amount and the structure of external knowledge and the internal stocks of knowledge that firms can access and use in the generation of new technological knowledge help firms to reduce the costs of innovations. The empirical section is based upon a panel of companies listed on UK and the main continental Europe financial markets (Germany, France and Italy) for the period 1995 – 2006, for which information about patents have been gathered. The econometric analysis of the costs of knowledge considers the unit costs of patents on the right hand side, and on the left hand side next to R&D expenditures, the stock of knowledge internal and external to each firm. In order to articulate the different facets of the external knowledge that is made accessible by proximity with firms co-localized in the same region (NUTS2), we further include other variables proxying for regional variety, complementarity and similarity. The results confirm that the stock of internal knowledge and the access to external knowledge play a key role in reducing the actual cost of the generation of new technological knowledge at the firm level.
    Date: 2014–10
  2. By: Aldieri, Luigi; Aprile, Maria Carmela; Vinci, Concetto Paolo
    Abstract: This study contributes to existing literature on firms’ innovative activity examining the relationship between the R&D rivalry and spillovers at the firm level. In particular, we present an empirical analysis in United States, Japan and Europe based upon a new dataset composed of 879 worldwide R&D-intensive firms. In order to identify the technological proximity, we use the Jaffe industry weight matrix, based on the construction of technological vectors for each firm, where its patents are distributed across technology classes, in such a way that we compute knowledge spillovers. Opportune econometric techniques, which deal with both firm’s unobserved heterogeneity and weak exogeneity of the explanatory variables, are implemented. In order to test the robustness of our results, we introduce also the combined spatial-autoregressive model with autoregressive disturbances and additional endogenous variables. The empirical results are differentiated across countries, and suggest that the spatial effects are statistically significant
    Keywords: Spatial models; Innovation; R&D spillovers
    JEL: C31 C33 O31 R15
    Date: 2015–04
  3. By: Jain, Rekha; Singh, Manjari
    Abstract: The National Knowledge Network (NKN) was set up to enhance collaboration amongst higher education (HE) and research institutes. The government of India implemented the NKN to provide connectivity to nearly 5000 institutions, including publicly funded higher education and research institutes. The objective of this paper is to provide an integrated framework for increasing the effectiveness of knowledge networks. We do this by identifying the organizational mechanisms, key processes and competencies required to support HE and research institutes in India that would enable them to exploit the public high speed National Knowledge Network. We examine this from the perspective of Knowledge Network Provider and User Institutes.
  4. By: Ireneusz Maj
    Abstract: In the majority economic areas of the world, family businesses are the overwhelming majority, it is certain in the case of small and medium-sized busi-nesses. Large family companies – in opposition to common opinion – are not the economy margin. It is other way round, they are not directly identifiable as a family companies. Family companies often reached global success in just decades.
    Keywords: information, knowledge, asymmetry of information, asymmetry of knowledge, large family companies
    Date: 2015–04
  5. By: Kerai, Anita; Sharma, Sunil
    Abstract: Extant research on influence of ownership structure on innovation suggests a positive relationship between business group affiliation and innovation. While it is true that firms affiliated to business groups seem to benefit from availability of internal capital, determinants that influence the process of innovation have not been examined. This Paper aims to study the influence of network diversity on innovation for firms affiliated to a business group. We draw upon literature on resource based and principal-agency literature to study nature of knowledge exploration and exploitation by business group firms. We argue that network diversity impacts nature of innovation by business group firms.
  6. By: Khan, Abdul Razzaq; Khan, Abuturab; Razzaq, Sadia
    Abstract: This article deals with review of conceptualization of local knowledge and highlights terms related disaster management. The purpose is to relate local knowledge in disaster management as an important factor, because rural communities mostly trust on their own wisdom, i.e. Local knowledge. This article gives conceptual clearance of local knowledge, disaster, disaster management, with theoretical discussion on vulnerability of the local communities in developing countries.
    Keywords: Local Knowledge, Disaster Management, Vulnerability, Rural Communities, Hazards, Disaster Management Cycle.
    JEL: I30
    Date: 2013–07–10
  7. By: Jacob LaRiviere (Department of Economics, University of Tennessee); Mikolaj Czajkowski (University of Warsaw, Department of Economic Sciences, Poland); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews); Katherine Simpson (Economics Division, University of Stirling, Scotland)
    Abstract: We use a novel field experiment which jointly tests two implicit assumptions of updating models in a joint framework: that new information leads to new knowledge and that new knowledge can affect economic decisions. In the experiment, we elicit subjects’ prior knowledge state about a good’s attributes, exogenously vary how much new information about good attributes we provide to subjects, elicit subjects’ valuation for the good, and elicit posterior knowledge states about the same good attributes. Testing for changes in knowledge jointly with changes in preferences allows us to horserace updating models more completely than previous studies since we observe ex ante and ex post knowledge states. Our results are consistent with a model of incomplete learning, fatigue and either confirmation bias or costly search coupled with unbiased priors.
    Keywords: Learning, Information, Bayesian Updating, Behavioral Economics
    JEL: D83 D81 Q51
    Date: 2015–03
  8. By: Luttmer, Erzo G. J. (Federal Reserve Bank of Minneapolis)
    Abstract: Randomness in individual discovery disperses productivities, whereas learning from others keeps productivities together. Long-run growth and persistent earnings inequality emerge when these two mechanisms for knowledge accumulation are combined. This paper considers an economy in which those with more useful knowledge can teach others, with competitive markets assigning students to teachers. In equilibrium, students with an ability to learn quickly are assigned to teachers with the most productive knowledge. This sorting on ability implies large differences in earnings distributions conditional on ability, as shown using explicit formulas for the tail behavior of these distributions.
    Keywords: Knowledge diffusion; Growth; Income inequality
    JEL: J20 O10 O30 O40
    Date: 2015–03–27
  9. By: Sharma, Sunil
    Abstract: With increasing globalization, competitive landscape has undergone tremendous change. To cope up with turbulent environmental demands, firms are entering into alliances to bridge capability gap. However, movement from skill substitution to capability development requires firms to adopt organizational learning approach and to do so require organization reconfiguration. So far, literature has paid little attention to organizational redesign in response to the requirement of learning and developing capabilities. In a Joint venture, three actors are involved; Parent firm with capability, joint venture and parent firm seeking capability. This paper looks at issue of organizational learning and redesign from the perspective of parent firm seeking capabilities. An integrated framework is developed with addresses issue of identification of learning level and maps it with level of interface, control, and process orientation. Based on this framework, appropriate organizational design criteria to accomplish specific learning task processes can be formed for effective and targeted yet stable learning depending on the context.
  10. By: Cerdan-Infantes,Pedro; Filmer,Deon P.
    Abstract: Improving education outcomes by disseminating information to parents and thereby encouraging them to become more actively engaged in school oversight is attractive, since it can be done relatively cheaply. This study evaluates the impact of alternative approaches to disseminating information about a school grants program in Indonesia on parents'knowledge about the program in general, knowledge about the implementation of the program in their child's school, and participation in school activities related to the program as well as beyond it. Not all dissemination approaches yielded impacts, and different modes of dissemination conveyed different types of information best, resulting in different impacts on behavior. Specifically, the low-intensity approaches that were tried?sending a letter from the principal home with the child, or sending a colorful pamphlet home with the child?had no impact on knowledge or participation. On the other hand, holding a facilitated meeting with a range of school stakeholders or sending targeted text messages to parents did increase knowledge and participation. Facilitated meetings mostly increased overall knowledge and fostered a feeling of transparency on the part of parents, which resulted in greater participation in formal channels for providing feedback to the school. The text messages increased knowledge about specific aspects of the program, such as the grant amount, and tended to increase participation through informal channels.
    Keywords: Primary Education,Education For All,Agricultural Knowledge and Information Systems,Tertiary Education,Effective Schools and Teachers
    Date: 2015–04–06
  11. By: Sharma, Sunil
    Abstract: Increasing globalization of economy has provided fresh impetus to internationalization efforts of firms from both developed and emerging economies. Extant research in this area has been carried out with the perspective of firms from developed economies. The issue of internationalization efforts by firms from emerging economies has received sparse attention. Further, multiple theories have been applied to examine this subject. Rarely the issue has been seen as multidimensional and as set of decisions that involve tradeoff. This paper attempts to bridge this gap by suggesting an integrative framework to look at internationalization as a multidimensional phenomenon. The framework is grounded in resource based view, organizational learning, and institutional theories. In addition, internationalization effort by a firm has been treated, as a separate decision not related with earlier or concurrent internationalization efforts with its own unique dimensions. This essentially means that internationalization process is highly context specific.

This nep-knm issue is ©2015 by Laura Ştefănescu. 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.