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on Economics of Strategic Management |
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Issue of 2011‒07‒21
sixteen papers chosen by Joao Jose de Matos Ferreira University of the Beira Interior |
| By: | Mehdi Mohammadi Poorangi; Dr. Edward Wong Sek Khin (Faculty of Business and Accountancy, University of Malaya) |
| Abstract: | In the third millennium, competition has become tough and unpredictable and all organizational regardless of their size and scope of operation are facing fierce competitive challenges. In management, one of the most reliable ways to cope with these challenges quickly and effectively is strategic alliance or partnership. Consequently, strategic alliance has attracted lots of attention from the researchers and managers over past years. Technically, strategic alliance is a systematic approach to share the resources, acquire more capabilities, and finally create cooperative and competitive advantages. This study addressed the concept of strategic alliance amongst Malaysian SMEs in different industries and tried to create a regulatory framework for the SME strategic alliance in Malaysia from a holistic view based on the statements of the sampled SMEs’ executives. The findings of the study showed that in conducting a strategic partnership program the first step must be selecting a potential partner and this process requires a full understanding of partners across two dimensions: 1. Resources and capabilities, and 2. Cost and risks. In addition, strategic alliance can shape domestically as well as internationally and also in the form of a network of multiple alliances and the tendency of an enterprise in forming such partnership programs indicate the attitude of executives toward the alliance. Finally, it also has been found that learning and sharing knowledge resources is a critical factor in success of any strategic alliance |
| Keywords: | strategic alliance, Small and medium enterprises (SMEs), resource based view (RBV) |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-034_250&r=cse |
| By: | Rune Dahl Fitjar (IRIS - International Research Institute of Stavanger); Andrés Rodríguez-Pose (IMDEA Social Sciences) |
| Abstract: | This paper examines the sources of firm product and process innovation in Norway. It uses a purpose-built survey of 1604 firms in the five largest Norwegian city-regions to test, by means of a logit regression analysis, Jensen et al.'s (2007) contention that firm innovation is both the result of 'science, technology and innovation' (STI) and 'doing, using and interacting' (DUI) modes of firm learning. The paper classifies different types of firm interaction into STI-mode interaction (with consultants, universities, and research centres) and DUI-mode interaction, distinguishing between DUI interaction within the supply-chain (i.e. with suppliers and customers) or not (with competitors). It further controls for the geographical locations of partners. The analysis demonstrates that engagement with external agents is an important source of firm innovation and that both STI and DUI-modes of interaction matter. However, it also shows that DUI modes of interaction outside the supply chain tend to be irrelevant for innovation, with frequent exchanges with competitors having a detrimental effect on a firm's propensity to innovate. Collaboration with extra-regional agents is much more conducive to innovation than collaboration with local partners, especially within the DUI mode.This paper examines the sources of firm product and process innovation in Norway. It uses a purpose-built survey of 1604 firms in the five largest Norwegian city-regions to test, by means of a logit regression analysis, Jensen et al.'s (2007) contention that firm innovation is both the result of 'science, technology and innovation' (STI) and 'doing, using and interacting' (DUI) modes of firm learning. The paper classifies different types of firm interaction into STI-mode interaction (with consultants, universities, and research centres) and DUI-mode interaction, distinguishing between DUI interaction within the supply-chain (i.e. with suppliers and customers) or not (with competitors). It further controls for the geographical locations of partners. The analysis demonstrates that engagement with external agents is an important source of firm innovation and that both STI and DUI-modes of interaction matter. However, it also shows that DUI modes of interaction outside the supply chain tend to be irrelevant for innovation, with frequent exchanges with competitors having a detrimental effect on a firm's propensity to innovate. Collaboration with extra-regional agents is much more conducive to innovation than collaboration with local partners, especially within the DUI mode. |
| Keywords: | Innovation; firms; suppliers; customers; competitors; universities; STI; DUI; R&D; geography; Norway |
| Date: | 2011–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2011-12&r=cse |
| By: | Braha, Dan; Stacey, Blake; Bar-Yam, Yaneer |
| Abstract: | A substantial number of studies have extended the work on universal properties in physical systems to complex networks in social, biological, and technological systems. In this paper, we present a complex networks perspective on interfirm organizational networks by mapping, analyzing and modeling the spatial structure of a large interfirm competition network across a variety of sectors and industries within the United States. We propose two micro-dynamic models that are able to reproduce empirically observed characteristics of competition networks as a natural outcome of a minimal set of general mechanisms governing the formation of competition networks. Both models, which utilize different approaches yet apply common principles to network formation give comparable results. There is an asymmetry between companies that are considered competitors, and companies that consider others as their competitors. All companies only consider a small number of other companies as competitors; however, there are a few companies that are considered as competitors by many others. Geographically, the density of corporate headquarters strongly correlates with local population density, and the probability two firms are competitors declines with geographic distance. We construct these properties by growing a corporate network with competitive links using random incorporations modulated by population density and geographic distance. Our new analysis, methodology and empirical results are relevant to various phenomena of social and market behavior, and have implications to research fields such as economic geography, economic sociology, and regional economic development. |
| Keywords: | Organizational networks; Interfirm competition; Economic geography; Social networks; Spatial networks; Network dynamics; Firm size dynamics |
| JEL: | Z1 F0 L11 C0 D40 Z13 D85 L1 R58 O1 L14 L2 R0 L8 R12 A14 D21 L0 L25 R3 L6 D4 L7 D0 L16 L13 J10 L9 C15 L22 R11 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32142&r=cse |
| By: | Dr. Taghvaei Reza (Department Of Management, Toyserkan Branch, Islamic Azad University, Toyserkan, Iran); Eskandari Soheila (Member Of Young Researchers Club, Toyserkan Branch, Islamic Azad University, Toyserkan, Iran) |
| Abstract: | The impact of knowledge management (KM) on the workplace still a matter of some debate, and the limited evidence currently available makes it difficult to draw any conclusive judgments’. However, one of the recurring themes of this study will be the dramatic contrast between the level of interest and expectation surrounding KM and its concrete achievements at workplace level. This study is structured around the following themes: the wider context for KM; the organizational obstacles to KM; KM’s impact on management thinking; KM’s impact on organizational practice; and ?nally, KM’s implications for HRM. This study has reviewed the implications of KM on a number of levels. Setting aside the pejorative implications of management fashion, it is clear that KM has exerted an important impact on management thinking. Overall, therefore, the available evidence tends to suggest that KM’s in?uence on management thinking has been somewhat greater than its impact on organizational practices. Many KM interventions are situated between work groups or business divisions and are aimed at overcoming the barriers to knowledge sharing posed by existing organizational boundaries. At the same time, KM’s potential for change is often channeled through investments in IT systems which are de-coupled from any wider process of organizational change |
| Keywords: | knowledge, management, Perspective, Reward, HRM, strategy |
| JEL: | M00 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:cms:1icm11:2011-038_329&r=cse |
| By: | Martinho, Vítor João Pereira Domingues |
| Abstract: | The aim of this paper is to analyze the relationship between inter-industry, intra-industry and inter-regional clustering and demand for labor by companies in Portugal. Is expected at the outset that there is more demand for work where the agglomeration is greater. It should be noted, as a summary conclusion, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where firms are better able to cluster that is where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration. |
| Keywords: | agglomeration; Portuguese regions; labor; interregional mobility. |
| JEL: | R30 O18 R40 C23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32203&r=cse |
| By: | Sebastian Nielen; Alexander Schiersch |
| Abstract: | This paper addresses the relationship between the utilization of temporary agency workers by firms and their competitiveness measured by unit labor costs, using a rich, newly built, data set of German manufacturing enterprises. The analysis is conducted by applying different panel data models while taking the inherent selection problem into account. Making use of dynamic panel data models allows us to control for firm specific fixed effects as well as for potential endogeneity of explanatory variables. The results indicate a U-shaped relationship between the extent that temporary agency workers are used and the competitiveness of firms. |
| Keywords: | temporary agency work, competitiveness, firm performance, manufacturing |
| JEL: | D24 L23 L60 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1135&r=cse |
| By: | Madhavan, Ravi (University of Pittsburgh); Mahoney, Joseph T. (University of IL) |
| Abstract: | Despite its intuitive appeal, evidence-based management (EBMgt) faces unique challenges in "macro" areas such as Organization Theory and Strategy Management, which emphasize actions by organizations, and business and corporate leaders. The inherent focus on complex, multi-level and unique problems present serious challenges. EBMgt will nurture the establishment of a new model of research that is not only cumulative in its knowledge-building but also promotes engaged scholarship. Further, the uncertainty and conflict that characterize "macro" decision contexts heighten the need for EBMgt. We put forward four recommendations to advance EBMgt: (1) using more sophisticated meta-analyses; (2) providing syntheses that go beyond quantitative summaries; (3) engaging in a disciplined conversation about our implicit "levels of evidence" frameworks; and (4) developing decision supports. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:illbus:11-0105&r=cse |
| By: | Giovanni Pica; José V. Rodriguez Mora |
| Abstract: | We study the distributional effects of globalization within a model of heterogeneous agents where both managerial talent and knowledge of the local economic environment are required in order to become a successful entrepreneur. Agents willing to set up a firm abroad incur a learning cost that depends on how different the foreign and domestic entrepreneurial environments are. In this context, we show that globalization fosters FDI and raises wages, output and productivity. However, not everybody wins. The steady state relationship between globalization and income is U-shaped: high- and low-income agents are better off in a globalized world, while middle-income agents (domestic entrepreneurs) are worse off. Thus, consistently with recent empirical evidence, the model predicts globalization to increase inequality at the top of the income distribution while decreasing it at the bottom. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:404&r=cse |
| By: | Francesco Bogliacino (European Commission); Matteo Lucchese (Università di Urbino "Carlo Bo"); Mario Pianta (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo") |
| Abstract: | The patterns and mechanisms of job creation in business services are investigated in this article by considering the role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an empirical test is carried out with parallel analyses on a group of selected business services, on other services and on manufacturing sectors,considering six major European countries over the period 1996-2007. Within technological activities a distinction is made between those supporting either technological competitiveness, or cost competitiveness. Demand variables allow identifying the special role of intermediate demand. Job creation in business services appears to be driven by efforts to expand technological competitiveness and by the fast growing intermediate demand coming from other industries; conversely, process innovation leads to job losses and wage growth has a negative effect that is lower that in other industries. Business services show an increasingly polarised employment structure. |
| Keywords: | Business Services, Innovation, Employment. |
| JEL: | J20 J23 O30 O33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:11_07&r=cse |
| By: | Ron Martin; Peter Sunley |
| Abstract: | Although the literature on the evolution of industrial clusters is not vast, a preferred approach has already become evident, based around the idea of a cluster 'life-cycle'. This approach has several limitations. In this paper we explore a different conception of cluster evolution drawing on the 'adaptive cycle' model that has been developed in evolutionary ecology. Using this model, cluster evolution is viewed as an adaptive process with different possible outcomes based on episodic interactions of nested systems. Though not without limitations, this approach offers greater scope as a framework for shaping the research agenda into the evolution of clusters. |
| Keywords: | Clusters, Evolution, Life-cycle model, Complex systems, Adaptive cycle model |
| JEL: | R00 R1 R3 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1112&r=cse |
| By: | Matteo Lucchese (Università di Urbino "Carlo Bo") |
| Abstract: | The model and the empirical test developed in this paper address the determinants of structural change for six major European economies from 1995 to 2007. The performances of sectors are explained by the unfolding of uneven technological opportunities and different conditions of demand. Building on the literature on structural change and on previous studies on the link between sectoral patterns of innovation and economic performance of sectors, a set of tests is developed on a panel of 21 manufacturing sectors and 17 services, merging three different sources of data. The results show the importance of breaking up the innovative efforts of sectors and the role of demand in shaping their trajectories of development. |
| Keywords: | Structural change, Demand, Innovation, Industry-level analysis. |
| JEL: | O10 O33 O41 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:11_09&r=cse |
| By: | Jaynes, Gerald D. (Yale University) |
| Abstract: | Shows equilibrium always exists (Rothschild-Stiglitz-Wilson model) when firms enforce policy exclusivity via strategic (profit-maximizing) communication of client purchases. Strategic communication induces two equilibrium types: partial communication of purchase information or non-communication which exhibits a lemon effect (low-risk purchase no insurance). Nonetheless, Jaynes' configuration (Jaynes; Beaudry & Poitevin) allocating both risk-types a low-coverage pooling contract and high-risk supplementary expensive coverage always characterizes equilibrium including Perfect Bayesian Equilibrium in Hellwig's two-stage framework where inter-firm informational asymmetries impose additional "competitive" features. Adverse selection induces salient features of financial markets: Bertrand-Edgeworth competition, latent contracts, strategic exclusivity-policy cancellation tactics, market institutions for sharing information. |
| JEL: | D82 G22 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:yaleco:91&r=cse |
| By: | Neil McCulloch (Institute of Development Studies (IDS), University of Sussex); Edmund Malesky (Graduate School of International Relations and Pacific Studies, \sUniversity of California) |
| Abstract: | A large literature suggests that countries with better governance have higher growth rates. We explore whether this is also true at the sub-national level in Indonesia. We exploit a new dataset of firm perceptions of the quality of economic governance in 243 districts across Indonesia to estimate the impact of nine different dimensions of governance on district growth. Surprisingly, we find relatively little evidence of a robust relationship between the quality of governance and economic performance. However, we do find support for the idea that structural variables, such as economic size, natural resource endowments and population, have a direct influence on the quality of local governance as well as on economic growth. This suggests that efforts to improve local governance should pay greater attention to understanding how such structural characteristics shape the local political economy and how this in turn influences economic performance. |
| Keywords: | governance, institutions, economic performance, economic growth |
| JEL: | H70 O43 O56 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:1711&r=cse |
| By: | Oliver Budzinski (Department of Environmental and Business Economics, University of Southern Denmark); Janina Satzer (Department of Environmental and Business Economics, University of Southern Denmark) |
| Abstract: | Despite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated through externalities. Examples include payment systems, matching agencies, commercial media, and software platforms. However, professional sports mar-kets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. This conceptual paper con-tributes to filling this gap by describing the platform elements of professional suppliers of sports events and conceptually outlining issues where an applica-tion of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as management strategies to reinforce positive externalities among customer groups and alleviate negative ones. The authors would like to thank Anna Lund Jepsen and Nadine Lindstädt for valuable comments on earlier versions of this paper as well as Barbara Güldenring and Liz Patti for editorial assistance. A substantially shorter version of this paper will be published in Sports, Business, Management: An International Journal in 2011. |
| Keywords: | sports economics, sports management, two-sided markets, multisided platforms, professional sports business, pricing strategies, broadcasting rights |
| JEL: | L83 L82 L13 M21 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:sdk:wpaper:109&r=cse |
| By: | Graevenitz, Georg von; Weber, Richard |
| Abstract: | Entrepreneurship education has two purposes: To improve students’ entrepreneurial skills and to provide impetus to those suited to entrepreneurship while discouraging the rest. While entrepreneurship education helps students to make a vocational decision its effects may conflict for those not suited to entrepreneurship. This study shows that vocational and the skill formation effects of entrepreneurship education can be identified empirically by drawing on the Theory of Planned Behavior. This is embedded in a structural equation model which we estimate and test using a robust 2SLS estimator. We find that the attitudinal factors posited by the Theory of Planned Behavior are positively correlated with students’ entrepreneurial intentions. While conflicting effects of vocational and skill directed course content are observed in some individuals, overall these types of content are complements. This finding contradicts previous results in the literature. We reconcile the conflicting findings and discuss implications for the design of entrepreneurship courses. |
| Keywords: | Entrepreneurship education; entrepreneurial intention; theory of planned behavior; structural equation models; two stage least squares. |
| JEL: | L11 L13 O34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:12280&r=cse |
| By: | Argandoña, Antonio (IESE Business School) |
| Abstract: | What does it mean that companies must "create value", or "be managed" for "all their stakeholders"? In this paper we aim to show what creating economic value and appropriating economic value mean, in order to demonstrate that so long as we confine ourselves to an exclusively economic concept of "value", though it may be possible (at least in theory) to achieve economic optima, we will not achieve sustainable, conflict-free management because we will be omitting important aspects of reality. We therefore propose to broaden the concept of value, based not on criteria external to the company but on the core relationship between the company and its stakeholders. This allows us to identify a whole range of "values" that take stakeholder theory to a higher level. |
| Keywords: | Company; interest groups; income; stakeholders; value; |
| Date: | 2011–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0922&r=cse |