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on Economics of Strategic Management |
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Issue of 2007‒12‒15
nineteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Gantumur, Tseveen (European University Viadrina); Stephan, Andreas (JIBS and CESIS) |
| Abstract: | The telecommunications in the 1990s witnessed an enormous worldwide round of Mergers & Acquisitions (M&A). This paper examines the innovation determinants of M&A activity and the consequences of M&A transactions on the technological potential and the innovation performance. We examine the telecommunications equipment industry over the period 1988-2002 using a newly constructed data set with firm-level data describing M&A and innovation activity as well as financial characteristics. Based on a matching propensity score procedure, the study provides evidence that M&A realize significantly positive changes to the firm’s postmerger innovation performance. |
| Keywords: | Mergers & Acquisitions; Innovation Performance; Telecommunications Equipment Industry |
| JEL: | L10 L63 O30 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0111&r=cse |
| By: | Poti' Bianca (Ceris - Institute for Economic Research on Firms and Growth, Rome, Italy); Cerulli Giovanni (Ceris - Institute for Economic Research on Firms and Growth, Rome, Italy) |
| Abstract: | This work deals with two main issues: first, the possibility of identifying differences in firm economic returns (operating profit margins) for different groups of innovation strategy and second, the possibility of checking for factors explaining the probability of being within the best performers for each group of innovation strategy. It is an empirically based analysis using descriptive statistics (first part) and a probit econometric analysis (second part) where data are collected at firm level from two CIS surveys matched with economic accountability data for 902 Italian manufacturing firms for the period 1998-2000. The distribution analysis of profit margins by different populations of firms shows a better economic performance for groups characterized by more complex innovation strategies. Unexpectedly, the risk associated to economic returns is lower for groups where returns’ mean is higher. In this case skewness is higher too suggesting that reaching “excellence” is more difficult. The probit regressions account for the role played by different (market and firm) factors on the probability of being the best positioned for each firm population. This work gives two main messages: first, when studying the impact of R&D activity (both on firm productivity or competitiveness) it is worth to distinguish among different kinds of innovation strategy rather than limiting the analysis to aggregated results and second, it appears quite clear that competition awards more complex innovation strategies than simple R&D intra-muros activity. |
| Keywords: | profitability, strategic heterogeneity, R&D and innovation, probit regression |
| JEL: | L60 L10 O30 C25 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:csc:cerisp:200706&r=cse |
| By: | Jorge Braga de Macedo (Faculdadde de Economia da Universidade Nova de Lisboa e Instituto de Investigação Científica Tropical) |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0004&r=cse |
| By: | Chaminade, Cristina; Vang-Lauridsen, Jan; Coenen, Lars |
| Abstract: | This paper is concerned with the role of universities and public research organizations initiating and sustaining the development of regional innovation systems in developing countries, focusing the discussion on the Bangalore software cluster. Innovation systems research has paid significant attention to the importance of universities and other publicly financed research institutions as engines of growth and innovative performance in regions. With noble exceptions these papers tend to ignore the specific context in which this interaction between the university and the industry takes place, that is, the specific competences and capabilities of the universities and the firms specific needs, particularly in developing countries. This papers aims at reducing this gap by making an empirically-based analysis of the role that universities can play in initiating, sustaining and deepening Bangalores regional innovation system for the IT-service and software industry embedding the discussion on the specificities of the strategies of the firms and the universities located in the cluster. |
| JEL: | O31 O32 O33 O34 O38 N5 O47 R58 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:cil:wpaper:1&r=cse |
| By: | Bianco, Dominique |
| Abstract: | The aim of this paper is to analyse the relationship between competition and growth in an endogenous growth model with expanding product variety without scale effect. In order to do this, we develop an extension of the Bucci (2005) model in which we eliminate the scale effects. We find that the relationship between competition and growth is always inverted U shaped. We explain this result by the composition of two effects on growth : resource allocation and profit incentive effects. For low values of product market competition, an increase of competition has an positive effect on growth. For large values of competition, we have a negative relationship between competition and growth. |
| Keywords: | Endogenous Growth; Horizontal Differentiation; Technological Change; Imperfect Competition |
| JEL: | O41 O31 |
| Date: | 2007–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6179&r=cse |
| By: | Costa, Ionara (UNU-MERIT); Marin, Anabel (University of Sussex, SPRU) |
| Abstract: | This deals with the technological development implications of the substantial and long-dated presence of foreign-owned affiliates in the Argentinean manufacturing industry. It put forward the argument that the learning process of foreign-owned firms should be central in the analysis of the technological impacts of inward FDI. In other words, FDI impacts to host economies are dependent not exclusively on the technology and knowledge that multinational corporations are willing to transfer to their overseas affiliates, nor on the absorptive capacity of domestic firms. Instead, the technological learning that takes place within the foreign-owned firms is crucial. In order to shed some light on the level of learning reached by foreignowned firms integrating the Argentinean economy, this paper analyses the technological profiles of MNC affiliates in the manufacturing industry, and compares them with those of domestically-owned firms. This analysis is based on proxies for different levels of technological capabilities, calculated by means of the second Argentinean innovation survey, which was carried out by INDEC, the Argentinean National Council of Statistics, for the period 1998-2001. The analysis suggests that foreign-owned affiliates seem to play an important role in terms of diffusion of technologies generated elsewhere. Yet, the results are not so clear when the local generation of knowledge and technology is considered. In general terms, the analytical exercise made here suggests reasonable development of operational capabilities, coupled with shallow interaction, monitoring, improvement and generation capabilities both by foreign affiliates and domestics firms. In other words, the findings suggest the accumulation of substantial capabilities for using existing technologies, but only meagre capabilities for locally-generated new ones. |
| Keywords: | Foreign-owned Affiliates, Manufacturing Industry, Technological Capability, Diffusion of Innovations, Organizational Learning, Argentina |
| JEL: | C49 F23 F29 L29 L60 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2007036&r=cse |
| By: | Eickelpasch, Alexander (DIW Berlin); Lejpras, Anna (European University Viadrina Frankfurt/Oder); Stephan, Andreas (JIBS and CESIS) |
| Abstract: | This paper investigates predictions of Porter’s Diamond model regarding the impact of locational factors on innovativeness and performance at the firm level. We formulate a structural equation model based on the relationships between locational conditions, e.g., transportation infrastructure, proximity to universities and research institutes, qualified labour, on the one hand, and innovativeness measured by new product or process development, number of patents, and firm performance in terms of market growth or profit assessment, on the other hand. Based on a sample of about 2,100 East German firms, we apply the partial least squares path modelling approach to test the proposed relationships. We find that particularly cooperation intensity at the local level spurs the innovativeness of firms; whereas in contrast to Porter’s predictions, our results indicate that strong local competition and a locally focused market appear to impede the innovativeness and performance of firms. |
| Keywords: | Hard and Soft Locational Factors; Innovativeness; Firm Performance; East German Firms; Structural Equation Modelling; Partial Least Squares Approach |
| JEL: | L25 O31 R30 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0109&r=cse |
| By: | Johansson, Sara (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper analyzes the influences of human capital and technology transfers from R&D activities on regional export specialization along the range of product quality. Previous literature on specialization and trade in quality differentiated goods concludes that the production of high quality product varieties is intensive in knowledge and R&D. This study contributes to previous research by addressing the influence of spatial knowledge flows on the observed patterns of regional quality specialization. A theoretical model of endogenous quality choice derives regional comparative advantages to the presence of external knowledge flows from R&D activities. These knowledge transfers are modeled by accessibility variables, which deduce the presence of technology transfers from R&D activities to the geographical distribution of R&D activities and the observed patterns of spatial interaction. The impacts of regional R&D accessibility on regions’ revealed comparative advantages in high quality segments are subsequently examined in a two-dimensional cross-regional regression analysis. The results of this empirical work show significant positive effects of human capital and R&D accessibility on the revealed comparative advantages in production of high quality goods in Swedish regions. The empirical analysis also provides evidences of technology spillovers from abroad, as the presence of multinational firms increases the region’s specialization in high-quality segments. These results are robust over four different specifications of above-average product qualities. However, the sizes of estimated coefficients for R&D accessibility rises slightly with the quality level considered. This suggests that technological advantages becomes of larger importance the more superior are the levels of product quality considered. |
| Keywords: | Product quality; vertical differentiation; Knowledge; Accessibility; Spatial dependence; comparative advantage; technology |
| JEL: | F12 F14 R12 R32 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0107&r=cse |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Knowledge plays a critical role in economic development, still our understanding of how knowledge is created, diffused and converted into growth, is fragmented and partial. The neoclassical growth models disregarded the entrepreneur and viewed knowledge as an exogenous factor. Contemporary current knowledge-based growth models have re-introduced the notion of the entrepreneur, however stripped of its most typical characteristics, and the diffusion of knowledge is kept exogenous. It implies that the predictions and policy conclusions derived from these models may be flawed. This paper reviews the literature that addresses the issues of knowledge creation, knowledge diffusion and growth, and the role attributed the entrepreneur in such dynamic processes. I will explore how these insights can be integrated into existing growth models and suggest a more thorough microeconomic foundations from which empirically testable hypotheses can be derived. |
| Keywords: | entrepreneurship; knowledge; growth; spillovers |
| JEL: | M13 O57 |
| Date: | 2007–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0102&r=cse |
| By: | Ana Célia Castro |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2007:162&r=cse |
| By: | Paul Gaggl; Sandra Steindl (WIFO) |
| Abstract: | The paper surveys the evolution of modern macroeconomic models with the focus on the interrelations between endogenous growth and cyclical fluctuations. After reviewing models of the business cycle and endogenous growth, the paper discusses literature combining elements of both of them. |
| Keywords: | Business Cycles and Growth literature survey |
| Date: | 2007–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2007:i:308&r=cse |
| By: | Chaminade, Cristina; Vang-Lauridsen, Jan |
| Abstract: | This paper illustrates the importance of global-local linkages in cultural cluster-studies by discussing the impact of Hollywoods runway productions on the indigenous film cluster in Toronto, Canada. While global-local linkages are at the forefront of the current debate in cluster studies, the discussion has not yet permeated the research on cultural clusters. The paper identifies the limitations to the dominant models, inserts global-local linkages in the literature and applies it empirically. The inclusion of the global linkages in the analysis of the Toronto film cluster provides a new insight into the current development barriers faced by the indigenous film industry. The paper suggests how Hollywoods offshoring and outsourcing activities to Toronto can be transformed into positive spillovers for the indigenous film cluster. |
| JEL: | O31 O32 O33 O34 O38 N5 O47 R58 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:cil:wpaper:2&r=cse |
| By: | Nuno Crespo; Isabel Proença; Maria Paula Fontoura |
| Abstract: | This paper aims to establish whether geographical proximity between the locations of multinational firms and domestic firms facilitates the occurrence of FDI spillovers. Using data for Portugal, this hypothesis is clearly confirmed. However, the impact varies according to whether the externalities considered are horizontal or vertical. In the first case, the impact is negative, which may result from the competition effect at regional level. With regard to vertical externalities, a positive impact through backward linkages is observed. These results raise important implications for the definition of economic policies aiming to attract FDI and promote regional development. |
| Keywords: | vertical spillovers; horizontal spillovers; multinational firms productivity; FDI. |
| JEL: | F21 F23 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp282007&r=cse |
| By: | Faria, Pedro; Schmidt, Tobias |
| Abstract: | In this paper we investigate the factors that lead firms to cooperate with partners from foreign countries on innovation activities. Portuguese and German data from the harmonised Community Innovation Survey (CIS III) allow us to compare innovation cooperation behaviour of private firms in the two countries. Using a bivariate probit model, we show that the characteristics of firms cooperating with foreigners in both countries are quite similar. International activities other than cooperation, firm size and the importance of protection methods for knowledge have a positive influence in both countries on the decision to cooperate with foreign partners. Some differences remain, however: In Germany, exporters are more likely to cooperate with foreign partners than non-exporters, whereas in Portugal this is not the case. |
| Keywords: | International cooperation, Innovation, CIS III, Germany, Portugal |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:6659&r=cse |
| By: | Kander, Astrid; Schön, Lennart |
| Abstract: | The focus in this paper is on industrial dynamics and its impact on energy systems.. We highlight some fundamental patterns of this long-term dynamics, using the Dahmenian concept ‘development blocks’, with ‘market widening’ and ‘market suction’, and discuss the implications for innovative pressure in the energy sector. We discern three epochs in the historical data: the Traditional Areal Epoch, the Punctiform Industrial Epoch and the Modern Areal Epoch. Each epoch has its typical energy sources and encompasses some fundamental development blocks. The Modern Areal Epoch is in formation at the end of the 20th century; its innovations are still under incremental evolution, and we discuss its future potential - in particular in relation to those shifts in markets that presently occur due to global spread of industrialization and economic growth. |
| Keywords: | Development blocks, innovation, energy epochs, biofuels |
| JEL: | O31 O32 O33 O34 O38 N5 O47 R58 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:cil:wpaper:103&r=cse |
| By: | Baldwin, John R.; Gellatly, Guy |
| Abstract: | This paper summarizes the results of several research studies conducted by the Micro-economic Analysis Division of Statistics Canada that investigate the impact of advanced technology use on business performance. These studies combine establishment-level survey data on advanced technology practices with longitudinal data that measure changes in relative performance. Together, these studies provide strong evidence that technology strategies have considerable bearing on competitive outcomes after other correlates of plant performance are taken into account. Advanced communications technologies warrant special emphasis, as the use of these technologies has been shown to be closely associated with changes in relative productivity. |
| Keywords: | Science and technology, Business performance and ownership, Manufacturing, |
| Date: | 2007–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2007016e&r=cse |
| By: | Carlos A. Cinquetti |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2007:056&r=cse |
| By: | Kvaløy, Ola (Norwegian School of Hotel Management, Dept. of Business Administration, University of Stavanger); Olsen, Trond E. (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration) |
| Abstract: | The extent to which a knowledge-intensive firm should induce cooperation between its employees is analyzed in a model of relational contracting between a firm (principal) and its employees (two agents). The agents can cooperate by helping each other, i.e. provide effort that increases the performance of their peer without affecting their own performance. We extend the existing literature on agent-cooperation by analyzing the implications of incomplete contracts and agent hold-up. A main result is that if the agents' hold-up power is sufficiently high, then it is suboptimal for the principal to implement cooperation, even if helping effort is productive per se. This implies, contrary to many property rights models, that social surplus may suffer if the investing parties (here the agents) are residual claimants. The model also shows that long-term relationships facilitate cooperation even if the agents cannot monitor or punish each others effort choices. |
| Keywords: | Relational contracts; multiagent moral hazard; endogenous hold-up |
| JEL: | D23 J33 L14 |
| Date: | 2007–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2007_027&r=cse |
| By: | Wellington Pereira; João Furtado; Gabriel Porcile |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2007:084&r=cse |