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on Economics of Strategic Management |
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Issue of 2015‒01‒31
thirty-one papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Maietta, Ornella Wanda |
| Abstract: | The objective of the paper is to determine the role that R&D networking, through the collaboration of firms with universities, plays among the determinants of product and process innovation in the Italian food and drink industry and how geographical proximity to a university affects both R&D university-industry collaboration and innovation. The data are sourced from the 7th (1995-1997), 8th (1998-2000), 9th (2001-2003) and 10th (2004- 2006) waves of Capitalia survey. The approach is a trivarate probit analysis in which the dependent variables are R&D collaboration with a university, process and product innovation; the independent variables are firm, territorial and university characteristics. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182812&r=cse |
| By: | Braunerhjelm, Pontus (Swedish Entrepreneurship Forum, Department of Industrial Economics and Management, Centre of Excellence for Science and Innovation Studies (CESIS) & Royal Institute of Technology (KTH) ); Henrekson, Magnus (Research Institute of Industrial Economics (IFN) ) |
| Abstract: | This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of highly valued products. In so doing, we suggest an innovation policy framework based on two pillars: (i) the accumulation, investment, and upgrading of knowledge and (ii) the implementation of mechanisms that enable knowledge to be exploited such that growth and societal prosperity are encouraged. Knowledge is a necessary but far from sufficient condition for growth. To secure industrial dynamics and growth in the long term, institutions must be designed both to encourage sophisticated knowledge investments and to stimulate the creation, diffusion and productive use of knowledge in all sectors of the economy. We argue that the latter area has been overlooked in the policy discussion and that a coherent innovation policy framework must include tax policy, labor market regulation, savings channeling, competition policy, housing market regulation, and infrastructure to foster growth and future prosperity. |
| Keywords: | Entrepreneurship; Innovation; Institutions; Innovation policy; R&D; Technology transfer; University-industry relations |
| JEL: | J24 O31 O32 O57 |
| Date: | 2015–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0391&r=cse |
| By: | Fındık, Derya ; Beyhan, Berna |
| Abstract: | This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process oriented impacts of innovation. Among these three groups, product and process oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product oriented impact of innovation.While product oriented impact are larger for small firms, large firms focus more on process oriented impact. Anova results also indicate that perceptions on process oriented impact significantly differ among exporter firms, domestic market oriented firms and firms being active in internal and external markets. Process oriented impact generate results in favor of exporting firms. |
| Keywords: | innovation impact, product oriented impact, process oriented impact |
| JEL: | L2 M1 M2 O3 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60961&r=cse |
| By: | Crass, Dirk |
| Abstract: | The market launch of product innovations is the most visible output of a firm's investment in innovation activities. To achieve this objective most efficiently, firms strengthen their technological capabilities, acquire external knowledge in a number of different ways, and optimize their innovation process. The success of a firm's innovation strategy has two dimensions: First, the ability of a firm to master the research and development process, leading to the market introduction of a product innovation. Second, the ability to turn the market introduction of a product innovation into commercial success. While a firms technological abilities make a product innovation possible, this product might face a lack of interest among potential customers after its market introduction. The introduction of a product innovation under a brand name might generate interest, adds credibility and reputation and has the potential for the firm to better appropriate the returns from its innovations. This paper investigates the role of brand use for the commercial success of product innovations, using a representative sample of German firms. The results show that firms can improve the odds of commercial success by pursuing a branding strategy. The market introduction of a product innovation is shown to be associated with 35% larger sales if the firm uses an established brand to introduce the product innovation into the market. |
| Keywords: | innovation performance,brands,trademarks,innovation,Germany |
| JEL: | O32 O34 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14119&r=cse |
| By: | Mattia Tassinari ; Marco R. Di Tommaso (University of Ferrara ) |
| Abstract: | The economic crisis has shown the weakness of some Italian industries, calling for an effective policy response for promoting innovation of the national system. In this context, the ability to evaluate the presence of cooperative forms of innovation and of open innovation practices becomes extremely important in order to define efficient and effective industrial policy strategies. The purpose of this paper is to assess the different degree of openness of innovation processes in Italian manufacturing industries, in order to get useful information for industrial policy decisions. The analysis is conducted through the construction of two different composite indicators. The first, the Open Innovation Index (OII), provides a ranking of the Italian manufacturing industries on the basis of the different degree of openness of innovation processes of enterprises. The second, the Economic Performance Index (EPI), aims to classify manufacturing industries considering the sectoral performance in term of innovative capacity, productivity and ability to promote economic growth. Some policy implications are derived from the comparison between the two rankings. |
| Keywords: | Open Innovation, Industrial Policy, Manufacturing, Composite Indicator |
| JEL: | O32 L14 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cme:wpaper:1406&r=cse |
| By: | Piermartini, Roberta ; Rubínová, Stela |
| Abstract: | We also show that the evidence that knowledge spillovers flow along the supply chains is more robust than the traditional finding that knowledge spillovers depend on geographical distance or trade flows. Our findings support policies that favour participation in supply chains to foster economic development, but also show that potential gains depend on the type of participation. |
| Keywords: | Knowledge spillovers,International production networks,Intermediate inputs trade,Innovation |
| JEL: | F43 O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd201411&r=cse |
| By: | Berglund, Henrik (Chalmers University of Technology ); Sandström, Christian (The Rato institute ) |
| Abstract: | Abstract: Why do entrant firms sometimes gain the upper hand under conditions of discontinuous technological change? Previous research on this topic has either looked at the role of established competencies and/or firm incentives to invest in a new technology. In this paper we explore an alternative explanation. Drawing upon evidence from the ongoing transition from CCTV to digital, IP based video surveillance, we argue that entrant firms may be more prone to act entrepreneurially, i.e. more inclined to proactively create or transform markets and build ecosystems. As new technologies frequently require altered behaviour among customers and stakeholders, this capability is sometimes critical in order to succeed in a technological transition. Our contribution therefore lies in pointing out that not only may incentives to allocate R&D resources differ among entrants and incumbents, firms might also have different incentives to engage in entrepreneurial activities of creating or transforming markets. |
| Keywords: | Disruptive Innovation; Entrepreneurship; Incentives; Technological Discontinuities; business model; ecosystem. |
| JEL: | O14 |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0239&r=cse |
| By: | Tomasz Norek (University of Szczecin, Poland ); Daniel Luis Arenhardt (Federal University of Santa Maria, Brasil ) |
| Abstract: | The basic goal of this article is an attempt to conduct comparative analysis of innovation determinants in companies of small and medium enterprises sector in Brazil and Poland. The comparison shall enable evaluation which determinants stimulate and which are barriers to innovativeness development in the SME sector in the researched countries. Additionally, such comparison shall indicate if and in what way the economical potentials, cultural differences and different historical conditions of the economic development of the researched countries influence the determinants of the innovative activity of the SME sector. The Authors put forward the following research hypothesis: H1: The determinants forming the innovative potential are similar for Brazilian and Polish companies of SME sector. In order to examine the hypothesis, the Authors have browsed the world literature on the subject of innovative actions determinants in companies with a special consideration of SME sector companies, they have presented the present condition of innovativeness in SME sector companies in Brazil and Poland (an Internet questionnaire has been used in the research) and they have conducted own empirical researches on the determinants influencing the innovativeness level. The received results have been subject to basic statistical comparative analysis and on this basis with the logical induction the Authors have made conclusions on the determinants of innovative activity in researched companies. The article includes the results of all the empirical researches conducted by the Authors in the years 2009-2013 and generally available data considering the innovativeness level in the researched countries. |
| Keywords: | innovative SMEs; determinants of innovation activity; SMEs in Brazil and Poland |
| JEL: | O10 O30 O50 O57 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2014:no41&r=cse |
| By: | Janina Stankiewicz (University of Zielona Gora, Polzand ); Marta Moczulska (University of Zielona Gora, Polzand ) |
| Abstract: | The development of information technology, increase demand for mental work, shortening product life cycle and competing of the quality meant that knowledge is widely considered to be one of the most important resources of the organization. Taking into account activities related to the process of knowledge management (such as the acquisition of knowledge from the environment, identifying its in the organization, knowledge sharing) and their sources (internal and external stakeholders) can be noted that any knowledge management requires the involvement of employees. Based on the analysis of the employees engagement was found that managing knowledge should be supported by the affective commitment and focused on work organization and environment. They exhibit a specific behavior. Recognizing this problem for interesting the empirical research was carried out. Their goal was to identify the prevalence of involvement of employees in knowledge management and the desired employee behavior in the various activities of this processes. The study conducted among enterprises of Lubuskie province. The research used a survey method. It was found that the surveyed enterprises implement the activities related to knowledge management in a selective manner. In the light of the adopted criteria only one (out of 102) of the surveyed companies could be considered as knowledge management. It also seems that the attention is not focused on the creation of knowledge but its acquisition and protection. Taking into account the results of research on behavior conducive to knowledge management can be concluded that the climate for creativity exists at the level of teams but not the organization. |
| Keywords: | employees involvement, knowledge management, process, activity, behaviour |
| JEL: | D83 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2014:no47&r=cse |
| By: | Crass, Dirk |
| Abstract: | Trademarking firms are more productive, generate higher profits, and have a better survival rate. Trademarking firms are in one word more successful, which might motivate non-trademarking firms to adopt a trademark strategy. But this seems not to be the case. The proportion of trademarking firms in the German business sector amounts to just 18%. This figure is quite low, given that nearly each firm has reputation to protect. But why has the vast majority of firms no registered trademarks? Using a representative sample of German firms, the present paper links certain firm characteristics to a firms' propensity to register trademarks. The empirical results point to circumstances under which trademarks are significantly more often used: this is the case where a large distance between a firm and its customers exists, a firm's product quality is difficult to assess, a firm's products are characterized by a limited (but not strong) substitutability, and where a firm is engaged in R&D and introduces innovative products. Trademarks are considerably less frequently used if none of this is the case. |
| Keywords: | Intellectual Property Rights,Trademarks,Reputation,Innovation |
| JEL: | C25 D21 L14 O34 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14118&r=cse |
| By: | Fernando Galindo-Rueda ; Valentine Millot |
| Abstract: | This working paper sums up the main findings of an OECD project aiming to provide an evidence basis for focusing efforts to improve the measurement of technological and non-technological forms of business innovation, with particular focus on the role of design. It reviews a broad range of novel design-related measures, indicating their advantages and limitations in terms of policy relevance and insights. The analysis of design provides a valuable test-case for assessing the robustness of the overall framework for measuring innovation as proposed in the OECD/Eurostat Oslo Manual. It identifies a number of areas for potential development in a future revision, focused on the role of users and the implementation of the definition of innovation and innovation activities. It also identifies a range of design concepts based on an informal consultation with the design expert community. <P> The paper also illustrates a number of findings arising from the first-time use of a set of experimental and optional questions on design implementing a “ladder-type” model of design which describes levels of sophistication and integration of the design function within the firm. Cognitive testing and analysis of the microdata from a large and representative sample of Danish firms shows a high degree of respondent acceptance of the experimental questions and supports their predictive validity vis-à-vis a number of hypotheses on the use of design and a series of innovation and economic outcomes potentially associated to it. |
| Keywords: | innovation, surveys, technology, design, measurement |
| Date: | 2015–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2015/1-en&r=cse |
| By: | Kirchweger, Stefan ; Eder, Michael ; Kantelhardt, Jochen |
| Abstract: | In order to increase competitiveness of their farms, dairy farmers select certain strategies regarding input use. We identify these strategies in an agricultural bookkeeping dataset and assess economic impacts of the strategy selection under volatile prices situations using cluster analysis and direct covariates matching. We find one low-input cluster with low levels of input use and three clusters with rather higher input levels. Those clusters differ in site conditions, farm size and milk production but have similar farm income. Furthermore the results indicate that low-input farms are competitive under volatile markets. |
| Keywords: | Dairy Farming, Farm Competitiveness, Farm Strategies, Cluster Analysis, Matching Method, Livestock Production/Industries, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182971&r=cse |
| By: | Raúl Serrano (Faculty of Economics and Business Studies, Universidad de Zaragoza ); Marta Fernández-Olmos (Faculty of Economics and Business Studies, Universidad de Zaragoza ); Vicente Pinilla (Faculty of Economics and Business Studies, Universidad de Zaragoza ) |
| Abstract: | : This paper studies the relationship between international diversification and performance in agri-food firms In line with the recent literature, it analyses the effects of the degree of internationalization using a uniform sample, a long-term focus and a measure that combines export intensity and regional diversification. The study empirically confirms the hypothesis of a horizontal S-curve relationship between diversification and performance and identifies three phases. Novice export firms are found in the first stage; their profits are low because they incur in the initial costs of exporting. Mature companies with a more advanced internationalization process are in the second stage; they benefit from the positive outcomes of operating at a larger scale. Lastly, the third stage contains internationally over-diversified companies; their performance decreases as a result of costs to enter extra-regional markets, which are especially steep in this sector, and dealing with greater organisational complexity |
| Keywords: | : Agribusiness, International diversification, Firm performance, Degree of Internationalization |
| JEL: | F23 L66 Q13 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:zar:wpaper:dt2015-01&r=cse |
| By: | Jan de Kok ; O Som ; P Neuhäusler |
| Abstract: | While after the 2008 financial crisis most European enterprises were faced with a reduction in the demand for their products, some were not. This study examines to which extent this depends on the overall innovation performance of their domestic country. The innovativeness of a country is reflected by the share of frequent innovators in a country and by the level of technological specialisation of a country. Our results show that the share of frequent innovators in a country does not affect the probability that individual enterprises are faced with negative demand effects of an economic crisis. If we interpret the share of frequent innovators as an indicator of the overall performance level of innovation of a country, this implies that – despite the overall innovativeness of a country might help to shorten times of recovery after a crisis – it does not mitigate the crisis’ effects on the turnover of individual enterprises. Our results further show a negative effect of technological specialisation: higher levels of technological specialisation are associated with a higher probability for individual enterprises to be faced with negative demand effects of an economic crisis. The size of this effect is considerable: on average, the difference in the probability that enterprises are faced with negative demand effects between the lowest and highest level of technical specialisation is approximately 10% points. Finally, our findings also show that smaller and older firms were more often faced by a reduction in their demand than larger and younger firms. |
| Date: | 2014–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201411&r=cse |
| By: | Höhler, Julia ; Kuhl, Rainer |
| Abstract: | The Agribusiness is in flux: a shrinking number of up- and downstream corporations questions traditional equilibrium concepts. How will the population of firms develop and which consequences will arise for competition? In 1931, Gibrat stated the firm size and a firm’s growth rate to be independent. Testing the validity of Gibrat’s law for the German Agribusiness allows drawing conclusions on future developments of concentration. By investigating 551 manufacturing downstream enterprises, we reject Gibrat’s law and find small firms to grow stronger than bigger firms in relation to their initial size. Consequently, the sector could reach a steady state in concentration. |
| Keywords: | Agribusiness, structural change, empirical growth, Agribusiness, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182689&r=cse |
| By: | Escaith, Hubert ; Gaudin, Hadrien |
| Abstract: | A second approach focuses on the relationships existing between the variables themselves, using multi-criteria and graph analysis. Natural resources endowments, on the one hand, and services orientation, on the other one, are among the most determinant variables for defining Trade in Value Added (TiVA) clusters. The level of economic development remains a crucial determinant of the TiVA profile as is the size of the economy, even if not as important as initially expected. Pro-active GVC up-grading strategies, such as investments in ICT and R&D tend to foster a higher foreign content in exports, compensating the lower domestic margin by higher volumes. Inward-oriented protectionist policies are not particularly successful in exporting higher share of domestic content, except in services exports; but in this case, export volumes remain marginal. |
| Keywords: | trade in value-added,global value chains,trade policy,input-output analysis,effective protection rate,exploratory data analysis |
| JEL: | D57 F13 F14 F15 F23 O19 O24 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd201408&r=cse |
| By: | Fritz Breuss (WIFO ) |
| Abstract: | The euro area has – in contrast to the USA – still not recovered from the "Great Recession" 2009 and the following euro crisis. Some fear that Europe could embark into a decade of "secular stagnation" like Japan in the recent past. The US success can be attributed to the application of the strategy of the "three arrows": a co-ordinated expansionary fiscal and monetary policy cum permanent structural reforms. In contrast, the euro area has its hands tied by a self-imposed restriction in fiscal policy (new fiscal rules). Thus, the euro area remains as a growth-stimulating strategy only an expansionary monetary policy by the ECB plus "structural reforms" at the member country level. Austria – after the expiring of the hitherto "EU growth bonus" – has also to look for new strategies to stimulate growth by its own. In simulations with a macro-growth model for Austria alternative growth scenarios are analysed: structural reforms to improve efficiency in product und labour markets, investment in knowledge and innovation (R&D), more globalisation, and traditional demand policies (monetary and fiscal). The most promising strategies are more globalisation and structural reforms plus R&D investments. Most of these strategies would stimulate growth without impairing fiscal sustainability. |
| Date: | 2015–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2015:i:493&r=cse |
| By: | Nikolić, Aleksandra ; Uzunović, Mirza ; Mujčinović, Alen |
| Abstract: | High level of trade deficit indicates low competitiveness in B&H agribusiness, which brings the question whether its low competitiveness is mirroring its low market orientation, i.e. capability to apply integrated business philosophy which ensures adequate competitive advantages and sustains development of companies. To answer that, a survey was conducted through a MKTOR scale for measuring market orientation, on fifty food companies in the period May – December 2013. Statistical analysis was done using SPSS, and it included reliability test, exploratory factor analysis and confirmatory factor analysis, along with the tests of statistical significance and descriptive statistics. B&H food companies are only partly market-oriented, 3.430 (max 5.0), with Crombach’s Alpha of 0.943. Factor analysis revealed three market orientation factors: intelligence generation (0.393), intelligence dissemination (0.503) and responsiveness (0.522). Level of market orientation in small (3.511) and large (3.364) was statistically different, meaning that the smaller companies are less capable of understanding the market. Also, small and big companies have significantly different performances on the basis of all three market orientation factors. However, we may say that for both types of companies, intelligence generation and intelligence dissemination are a weak link, whereas responsiveness is better than total average. Results show that food companies in B&H have low ability of collecting key information about the market. Furthermore, omissions in internal organization and lack of knowledge about marketing are barrier to use efficiently the collected, often disorganized data on market necessities. Therefore existing, collected data are not utilized to enhance creative communication and building of added value that will make difference on market place and enable B&H food companies to develop sustainable competitive advantages. |
| Keywords: | Agribusiness, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182835&r=cse |
| By: | Pierluigi Montalbano ; Silvia Nenci ; Carlo Pietrobelli |
| Abstract: | This paper addresses the following research questions: i) are firms characterized by international linkages more productive than other firms? ii) are those belonging to industries more involved in GVCs even more productive? To this end, we combine the WB Enterprise Survey dataset with the new OECD-WTO TiVA dataset and present three main empirical exercises: 1) an analysis of productivity premia associated with participation in international trade and presence of inward FDI; 2) a Cobb-Douglas output function expanded to firms international linkages; 3) a further expanded version of the above relationship including the TIVA-based indicators of value added trade and industry participation and position in global value chain. Our empirical outcomes confirm the presence of a positive causal relationship between participation in international activities and firm performance in the LAC region. Focusing on four big Latin American countries we show that the actual level of involvement into GVCs matters as well. |
| Keywords: | International Trade; Trade in Value a dded; Global value chains; Firm productivity. |
| JEL: | F14 D24 L22 O54 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0198&r=cse |
| By: | Cheptea, Angela ; Emlinger, Charlotte ; Latouche, Karine |
| Abstract: | In this paper, we explore the link between globalization of the retail sector and the export activity of firms from their origin country. In a previous paper (Cheptea, Emlinger and Latouche, forthcoming), we showed that exporting firm from countries with internationalized retail companies benefit more from this process than firms from other countries. The underlying assumption of this paper is that the main benefits are grasped by the retailers’ domestic suppliers. In other words, firms that sell their products under retailers’ brands benefit more from the overseas expansion of retailers than other firms. We employ French firm-level data to evaluate the effect for the two types of firms. We identify retailers’ suppliers using the certification of French agri-food firms with the private IFS standard, granting them the right to sell their products under a retailer’s brand. Our empirical objective is to estimate whether firms with IFS certification have better export performance on markets where French retail companies have established outlets. We find that certified French firms export more than non-certified firms to markets where IFS retailers established outlets (mainly outside Europe). The difference is statistically significant and robust to the use of firm- and country-specific fixed effects. Results are similar for the extensive and the intensive margin of exports. |
| Keywords: | Multinational retailers, Firm-level exports, Private standards, Agribusiness, International Relations/Trade, F12, F14, F23, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182706&r=cse |
| By: | Waters, James |
| Abstract: | In this paper we examine determinants of initial adoption and subsequent intensification of corporate use of business practices employing the internet. In contrast to previous examinations that have looked at highest income countries, we study companies in Latin America and the Caribbean. Many variables such as company size and industry use previously identified as influential in high income regions continue to be important determinants. Novel determinants are also found, including informal sector competition and exporting. There are sharp differences in determinants between the two adoption types. |
| Keywords: | Technology; internet; adoption; intra-firm; intensification; developing countries |
| JEL: | O14 O30 O33 O54 |
| Date: | 2015–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61473&r=cse |
| By: | Stefaan Decramer (University of Leuven ); Catherine Fuss (Research Department, NBB, and Université Libre de Bruxelles ); Jozef Konings (University of Leuven and University of Ljubljana ) |
| Abstract: | Policy-making institutions such as the European Commission, the ECB and the OECD often use unit labor costs as a measure of international competitiveness. The goal of this paper is to examine how well this measure is related to international export performance at the firm level. To this end, we use Belgian firm-level data for the period 1999-2010 to analyze the impact of unit labor costs on exports. We use exports adjusted for their import content. We find a statistically significant negative effect of unit labor costs on export performance of firms with an estimated elasticity of the intensive margin of exports ranging between -0.2 and -0.4. This result is robust to various specifications, including firm, time and sector fixed effects and estimation approaches. We find that this elasticity varies between sectors and between firms, with firms that are more labor-intensive having a higher elasticity of exports with respect to unit labor costs. The micro data also enable us to analyze the impact of unit labor costs on the extensive margin. Our results show that higher unit labor costs reduce the probability of starting to export for non-exporters and increase the probability of exporters stopping. While our results show that unit labor costs have an impact on the intensive margin and extensive margin of firm-level exports, the effect is rather low, suggesting that passthrough of costs into prices is limited or that demand for exported products is not elastic. The latter is consistent with recent trade models emphasizing that not only relative costs, but also demand factors such as quality and taste matter for explaining firm-level exports. |
| Keywords: | unit labor costs, exports, competitiveness, heterogeneity |
| JEL: | F1 F4 F16 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201501-276&r=cse |
| By: | Martuscelli, Antonio ; Varela, Gonzalo |
| Abstract: | This paper analyzes the determinants of export flow survival in Georgia. The paper uses a unique Georgian firm-level data set, in which firms'characteristics and output dynamics are matched with their customs'export transactions, for the period 2006-12. A discrete survival model is used to explore the role of firm level characteristics, diversification strategies, and network effects on the survival rates of export flows. Low survival rates at the product level are found to limit the ability of Georgian firms to consolidate new products in international markets. The analysis finds that it is production efficiency, rather than size, that boosts export survival chances, that firms’ diversification strategies matter for the prospects of survival, and that there is strong evidence of network effects in export survival. The analysis also finds that ratified foreign trade agreements contribute to increase the survival of export flows by reducing policy-induced trading costs and increasing information about destination markets. |
| Keywords: | Markets and Market Access,Microfinance,Economic Theory&Research,Small Scale Enterprise,Debt Markets |
| Date: | 2015–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7161&r=cse |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN) ); Andersson, Fredrik (Örebro university ); Wennberg, Karl (The Ratio institute and Stockholm Scool of Economics ) |
| Abstract: | This paper studies the long - term impact of entrepreneurship education and training in high school on entrepreneurial entry, performance, and survival. Using propensity score matching, we compare three Swedish cohorts from Junior Achievement Company Program (JACP) alumni with a matched sample of similar individuals and follow these for up to 16 years after graduation. We find that while JACP participation increases the long - term probability of starting a firm as well as entrepreneurial incomes, there is no e ffect on firm survival |
| Keywords: | Entrepreneurship Education; Quasi - experiment; Performance |
| JEL: | D22 L25 L26 |
| Date: | 2014–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0245&r=cse |
| By: | Anagnosti, Afroditi ; Zampetakis, Leonidas A. ; Rozakis, Stelios |
| Abstract: | There is a growing body of literature arguing that individuals who have taken entrepreneurship courses generally intend to start a business. The purpose of this study is to investigate the impact of relevant courses on the entrepreneurial intentions of students in agriculture, using Ajzen’s (1991) the theory of planned behavior (TPB). The results show that the entrepreneurship education program has affected the student’s perceived behavior control and anticipated positive and negative effect. |
| Keywords: | Agricultural University, Entrepreneurship Education, Entrepreneurial Intentions, Theory of Planned Behavior, Teaching/Communication/Extension/Profession, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:183047&r=cse |
| By: | Tambo, Justice A. ; Wünscher, Tobias |
| Abstract: | While farmers have been recognised as one of the key sources of innovation, many studies on agricultural innovations continue to consider farmers as adopters of externally-driven innovations only. Based on cross-sectional data from 409 farm households, this study, in contrast, analyses the innovation-generating behaviour among rural farmers in northern Ghana. Inspired by two innovation theories – induced innovation and innovation systems – we focus on the determinants of innovation behaviour. Employing recursive bivariate probit and endogenous treatment-regression models which control for selection bias, we find that participation in Farmer Field Fora, a participatory extension approach with elements of the innovation systems perspective, is a key determinant of innovation behaviour in farm households. Other important determinants are education, climate shocks and risk preferences. These results are robust to alternative specifications and estimation techniques. |
| Keywords: | Determinants, Farmer Field Fora, farmer innovation, Ghana, innovation systems, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae14:182810&r=cse |
| By: | Serafica, Ramonette B. |
| Abstract: | There is now broad consensus that the Philippines should aim to have a globally competitive services sector. Applying Porter`s framework on creating national competitive advantage (the diamond), this paper presents a comprehensive government strategy recognizing that it has an important albeit partial role in attaining the national vision for services. Moreover, it emphasizes that the proper role for government policy toward industry is to stimulate dynamism and upgrading. The strategy covers four interdependent sets of policies that influence national advantage, namely, policies to enhance a country`s position in the factors of production relevant to the industry, policies that raise the quality of domestic demand necessary for constant upgrading, policies to ensure the presence of supporting and related industries, and policies to influence competitive behavior through firm strategy, structure, and rivalry. |
| Keywords: | Philippines, services, competitive advantage, Porter`s diamond |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2015-05&r=cse |
| By: | Tarun Arora |
| Abstract: | The Paper assesses the export competitiveness of top fifteen textile products (different for each export destination) at 6 digit level of HS classification exported by India to top seven textile export destinations by using both price and income export elasticities. The export elasticities are estimated using dynamic panel data approach for each country separately. Commodity specific elasticities are further estimated to forecast the exports of commodities exported to respective export destinations. The resulting estimates can be used in designing destination specific export promotion policies for India. |
| Keywords: | Trade elasticities, Competitiveness, Forecasting |
| JEL: | F1 F14 F17 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2015:i:134&r=cse |
| By: | Mel, Suresh de (University of Peradeniya, ); McKenzie, David (World Bank Research Group ); Woodruff, Christopher (The University of Warwick ) |
| Abstract: | Previous research shows that capital injections lead to higher profits in microenterprises, but to little sustained growth. We conduct an experiment which provides overlapping treatments designed to provide capital, incentives to hire new employees and management training. Working with a sample of 1,525 Sri Lankan enterprises with two or fewer paid employees at baseline, we find that the treatments have largely temporary effects, suggesting that while they may speed convergence to a steady state, they do not appear to put firms on a different growth path. Wage incentives lead to higher levels of employment, but not to higher profits, suggesting that the typical firm does not face constraints to hiring which result in the marginal product of labor exceeding the market wage rate. We use data from surveys of wage workers and SME owners conducted at the same time as the baseline survey to estimate characteristics associated with entrepreneurial ability. We find that highability firms, if anything, benefit less from the treatments. The results are consistent with the view of the world illuminated by Lucas‟ 1978 model of firm size distribution. |
| Keywords: | Microenterprises |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:212&r=cse |
| By: | Mariana Mazzucato |
| Abstract: | Today, countries around the world are seeking "smart" innovation-led growth, and hoping that this growth is also more "inclusive" and "sustainable" than in the past. This paper argues that such a feat requires rethinking the role of government and public policy in the economy--not only funding the "rate" of innovation, but also envisioning its "direction." It requires a new justification of government intervention that goes beyond the usual one of "fixing market failures." It also requires the shaping and creating of markets. And to render such growth more "inclusive," it requires attention to the ensuing distribution of "risks and rewards." To approach the innovation challenge of the future, we must redirect the discussion, away from the worry about "picking winners" and "crowding out" toward four key questions for the future: 1. Directions: how can public policy be understood in terms of setting the direction and route of change; that is, shaping and creating markets rather than just fixing them? What can be learned from the ways in which directions were set in the past, and how can we stimulate more democratic debate about such directionality? 2. Evaluation: how can an alternative conceptualization of the role of the public sector in the economy (alternative to MFT) translate into new indicators and assessment tools for evaluating public policies beyond the microeconomic cost/benefit analysis? How does this alter the crowding in/out narrative? 3. Organizational change: how should public organizations be structured so they accommodate the risk-taking and explorative capacity, and the capabilities needed to envision and manage contemporary challenges? 4. Risks and Rewards: how can this alternative conceptualization be implemented so that it frames investment tools so that they not only socialize risk, but also have the potential to socialize the rewards that enable "smart growth" to also be "inclusive growth"? |
| Keywords: | Finance; Industrial Policy; Mission-oriented Innovation |
| JEL: | L1 L5 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_824&r=cse |
| By: | Guccio, C.; ; Lisi, D.; |
| Abstract: | Over the last decades the role of social interactions has become increasingly important in the economic discussion and, by now, it is acknowledged that the interaction across agents can produce both positive and negative effects. In this paper we evaluate the role of social interactions in the hospital sector using the large incidence of caesarean section, usually considered an inappropriate outcome in the childbirth service. In doing so, we lay out a theoretical model of hospitals’ behavior where the effect of peers’ behavior emerges by the simple sharing of the same institutional authority. Then, using the risk adjusted cesarean section rate of a large panel of Italian hospitals, we empirically investigate whether the behavior of each hospital is affected by the behavior of hospitals within the same region, after controlling for demand, supply and financial factors. In particular, we perform our empirical test employing both peer effects estimate and the spatial econometric approach, exploiting the panel dimension of our data. Both estimates show a significant and strong presence of peer effects among hospitals, robust to sensitivity analyses. We interpret this evidence as a large presence of constraint interactions in the healthcare sector, with important implications for the healthcare policy. |
| Keywords: | social interactions; peer effects; caesarian section; spatial econometrics; |
| JEL: | I11 C31 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:yor:hectdg:14/28&r=cse |