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on Economics of Strategic Management |
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Issue of 2017‒02‒05
fifteen papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Laura Barbieri (Dipartimento di Scienze Economiche e Sociali, Università Cattolica); Mariacristina Piva (Dipartimento di Scienze Economiche e Sociali, Università Cattolica); Marco Vivarelli (Istituto di Politica Economica, Università Cattolica) |
| Abstract: | This paper explores the employment impact of innovation activity, taking into account both R&D expenditures and embodied technological change (ETC). We use a novel panel dataset covering 265 innovative Italian firms over the period 1998-2010. The main outcome from the proposed fixed effect estimations is a labor-friendly nature of total innovation expenditures; however, this positive effect is barely significant when the sole in-house R&D expenditures are considered and fades away when ETC is included as a proxy for innovation activities. Moreover, the positive employment impacts of innovation activities and R&D expenditures are totally due to firms operating in high-tech industries and large companies, while no job-creation due to technical change is detectable in traditional sectors and SMEs. |
| Keywords: | Technology, innovation, R&D, embodied technological change, employment |
| JEL: | O31 O33 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1620&r=cse |
| By: | Rong, Zhao; Wu, Xiaokai; Boeing, Philipp |
| Abstract: | Monitoring by institutional investors can act as an important mechanism to promote firm innovation. By investigating Chinese listed firms' patenting between 2002 and 2011, we find that the presence of institutional investors enhances firm innovation. Consistent with the monitoring view, we further find that (1) the effect of institutional investors on firm patenting mainly comes from mutual funds; (2) the effect is more pronounced when market competition is more intense; (3) the effect exists among private- and minor state-owned enterprises, but not among major state-owned enterprises. The above findings are robust when innovation quality is examined. |
| Keywords: | Institutional investor,Firm innovation,Patenting,Mutual funds,China |
| JEL: | G20 G32 O31 O32 O33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17005&r=cse |
| By: | Colombelli, Alessandra; D'Ambrosio, Anna; Meliciani, Valentina; Francesco Quatraro, (University of Turin) |
| Abstract: | We investigate the determinants of the sectoral variety of newborn firms in different regional contexts. Based on the knowledge spillovers theory of entrepreneurship, we study the role of different dimension of knowledge variety, i.e. technological diversity and cultural diversity. This latter is measured with respect to the nationality of both foreign residents and foreign entrepreneurs. We use a unique dataset stemming from the combination of different sources of information. The results confirm that all the dimensions of knowledge variety are relevant in shaping the sectoral variety of newborn firms and point to the differential contribution of immigrant entrepreneurs in fostering the sectoral diversification in unrelated activities. |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201606&r=cse |
| By: | Giordano Mion; Luca David Opromolla; Alessandro Sforza |
| Abstract: | Better managers and managerial practices lead to better firm performance. Yet, little is known about what happens when managers move across firms. Does a firm hiring a good manager improve its performance? If yes is there some valuable knowledge the manager has acquired and successfully diffused to the new firm? In order to answer these questions, we use information related to specific activities the manager was involved in when working for previous firms. More specifically, we use information on whether the manager has worked in the past for firms exporting to a specific destination country or a specific product. Our data is rich enough to allow controlling for both manager and firm unobservables and wash out any time-invariant ability of the manager as well as overall firm performance. We find that the export experience gained by managers in previous firms leads their current firm towards higher export performance, and commands a sizable wage premium for the manager. We use several strategies to deal with endogeneity including an exogenous event study: the sudden end of the Angolan civil war in 2002. We further refine our analysis by looking at different types of managers (general, production, financial and sales) and show how specific export experience interacts with the degree of product differentiation and/or the financial vulnerability of a firm’s products as well as with rising import competition from China. |
| Keywords: | managers; knowledge diffusion; firm performance; job mobility; export experience |
| JEL: | F16 J31 L2 M2 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:69035&r=cse |
| By: | Xu, Yilan |
| Abstract: | Innovation is one of the most important factors in production at enterprise level. Substantial studies have been deployed in this topic, but rare researches have been focused on the relation between innovation and the enterprise characteristics, especially the case in China. In this paper, the author analyzes the China Enterprise Survey 2012 established by the World Bank through logistic regressions, and concludes some interesting findings, such as that the R&D input in China showing negative relationship with the firm size, enterprises without internationally-recognized quality certifications or technologies licensed from a foreign-owned company are showing with more R&D input, etc. The results uncovered very practical implications to both enterprises in China and the government, which could guide them to make better decisions in terms of enterprises development and economy policies. |
| Keywords: | Innovation, China, Survey Data, Enterprises Characteristics, Production Economics, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252847&r=cse |
| By: | FUJIKAWA Naoto; MOTOHASHI Kazuyuki |
| Abstract: | Firms' decisions regarding external research and development (R&D) sourcing are influenced by their absorptive capacities, as developed through their internal R&D activities. However, it remains to be determined how the effects of absorptive capacity on firms'external sourcing strategies vary among the R&D stages, namely, upstream "research" or downstream "development" in the entire R&D process. Based on a detailed pharmaceutical R&D data set, which allows us to separately identify "research" and "development" activities, we have empirically investigated how the R&D process stage affects the relationship between internal R&D and external technology sourcing. Additionally, we separate efforts from capabilities for the concept of "absorptive capacity" to observe more precisely the aforementioned relationship between internal capacity and external technology sourcing. A complementary internal-external relationship is found more frequently for vertical looks ("R" and "D") and for internal "efforts," while some substitutional relationships exist between the research's internal "capabilities" and external sourcing (horizontal looks). |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16102&r=cse |
| By: | Bertschek, Irene; Ohnemus, Jörg; Viete, Steffen |
| Abstract: | Modern Information and Communication Technologies (ICT) have been proliferating through the entire business sector over recent decades. This increasing digitalization is having a substantial impact on economic activity and is continuously changing the nature of production processes and our day-to-day working life. Since 2002, the ICT Survey carried out by the Centre for European Economic Research (ZEW) has tracked the diffusion and use of ICT in different industries within the German economy. Further surveys were conducted at irregular intervals in 2004, 2007, 2010 and 2015. The survey was designed by ZEW's Research Department Information and Communication Technologies. The data was collected via computer-assisted telephone interviews (CATI) by infas Institute for Applied Social Sciences. The central aim of the survey is twofold: Firstly, a representative picture of the use of ICT by German firms is obtained. Secondly, taking account of a large set of further firm characteristics it should allow an analysis of the consequences of employing ICT and ICT-related projects with respect to different measures of firm performance. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdok:1701&r=cse |
| By: | Isabel Busom (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Jorge-Andrés Vélez-Ospina (Departament d'Empresa, Universitat Autonoma de Barcelona) |
| Abstract: | We investigate the association between perceived barriers to innovation and the allocation of public support for innovation in manufacturing and service industries in Colombia, as well as the potential heterogeneity of returns to innovation across the firm-level productivity distribution. We extend the CDM recursive system by including an equation for the allocation of direct support and using quantile regression methods to estimate the productivity equation. We find some differences across manufacturing and service industries. Financing constraints are correlated with obtaining public support in manufacturing and in some services, but in knowledge intensive services (KIS) barriers associated with regulations are more significant. The introduction of innovations increases mostly the productivity of firms below the median of the productivity distribution, especially in services. Increasing human capital would boost productivity of firms in all industries, providing support to the hypothesis that human capital is indeed a bottleneck for productivity growth across the board in Colombia. We conclude that addressing factors that hinder innovation by low productivity firms in all service industries could significantly contribute to increasing productivity and reduce its dispersion. |
| JEL: | O31 O32 O33 O40 L8 C30 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1701&r=cse |
| By: | INUI Tomohiko; KODAMA Naomi |
| Abstract: | We examine the effects of globalization on firm performance through buyer-seller networks. In particular, we focus on the impact of the start of customer firms' overseas outsourcing on supplier firms' productivity, markups, employment, average wage, and sales. Previous literature examines the direct effect of import activities on firm productivity, but there has been only limited research looking at the effect of import activities through buyer-seller networks. This paper analyzes the effects of changes in customers' import status on supplier firms' performance. We combine propensity score matching with difference-in-differences (DID) estimation, comparing the performance of manufacturing firms whose major customers begin importing with those whose customers continue to procure intermediate inputs within Japan. Our results indicate that the impact of a customer's commencement of importing on suppliers' markups, productivity, and sales is negative but with no significant effects on wage and employment. These results imply that an increase in import activities of customer firms has procompetitive effects on domestic suppliers and leads to a decrease in their markups and productivity. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16106&r=cse |
| By: | Llanto, Gilberto M.; del Prado, Fatima Lourdes E. |
| Abstract: | Aside from physical capital and human resource, private firms are also advised to invest in innovations to be more productive and profitable. However, it is important to ensure such investment is well-spent. This study found that product and process innovations do lead to increase in sales and profits, and improve labor productivity. It also showed that firm size, age, and foreign equity are important factors leading firms to innovate. |
| Keywords: | Philippines, innovation, small and medium enterprises, process innovation, firm performance, product innovation, SMEs |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:rpseri:rps_2016-02&r=cse |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | It is imperative that the economies of the European Union become more entrepreneurial to promote innovation and economic growth. To achieve these goals, we propose a reform strategy with respect to (i) the rule of law and the protection of property rights; (ii) the tax system; (iii) regulations governing savings, capital and finance; (iv) the organization of labor markets and social insurance systems; (v) regulations governing goods and service markets; (vi) regulations governing bankruptcy and insolvency; (vii) R&D, commercialization and knowledge spillovers; (viii) human capital investments; and (ix) informal institutions. Overall, the proposed institutional changes move in a liberalizing direction; however, one-size-fits-all policy reforms aimed at freer markets will not necessarily be successful. Instead, a successful reform strategy must consider country differences that affect the viability of reform without abandoning the long-term goal of institutional liberalization to promote entrepreneurship, innovation and growth |
| Keywords: | Entrepreneurship; European Union; Innovation; Institutions; Policy reform; Regulation; Self-employment |
| JEL: | L26 L50 M13 O31 P14 |
| Date: | 2017–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1150&r=cse |
| By: | Juliana Dias Alves (Cedeplar-UFMG); Mauro Sayar Ferreira (Cedeplar-UFMG) |
| Abstract: | This is a pioneer study on the Brazilian manufacturing sector focused on: i) the role and characteristics of multi-product (MP) plants; and ii) on the determinants and impact of product switching within firms. MP corresponds to 37% of the manufacturing firms, but generates 81% of the output. They employ more workers, are more likely to be exporters, have higher labor productivity and higher TFP. The extensive margin due to adding and retirement of products contributes more to output growth than entry and exit of firms. Among continuing firms, half of the annual output growth (from 2005 to 2009) was originated in firms that switched products. Firms that have net added (dropped) items had higher (smaller) increase in output, in employers, and in the TFP. Higher TFP, more employers, or being exporter increased the probability to only add or only drop items in the future. |
| Keywords: | Multiproduct, scope, total factor productivity, heterogeneous firms |
| JEL: | D2 F23 L1 L16 L6 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td538&r=cse |
| By: | Serafica, Ramonette B. |
| Abstract: | Competitive services are necessary for attaining inclusive and sustainable growth. Although the Philippines has notably succeeded in developing several globally competitive services, inefficiencies that affect various economic sectors and the economy as a whole still persist. Thus, it is important to sustain the progress achieved and to address the poor performance especially of the services essential to the growth of the agriculture and manufacturing sectors. This paper presents elements of a comprehensive strategy for efficient competitive services using Porter’s diamond of national advantage, which emphasizes the proper role of government in creating an environment for continuous upgrading and innovation. |
| Keywords: | Philippines, services, competitiveness, competitive services, services sector, labor productivity, comparative advantage, Porter’s diamond of national advantage |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2014-2015_vol__41-42_nos__1-2e&r=cse |
| By: | Dobrin, Kirill (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration) |
| Abstract: | In recent years, are increasingly faced with the negative processes of globalization. This occurs in such priority spheres of human activity as politics, culture and economy of course. Let us dwell on the contradictions that exist in the global world and global economy. Hallmark of globalization are such processes as the internationalization of the world economy and international capital, international trade and the international division of labor. These processes are deployed, especially between industrialized countries and developing countries cover only partly and mainly concern their executive function. Thus, strengthening the position of economically developed countries. Developing same are not actors, and objects of globalization. Why is this happening? Global firms in developed countries view the world as a whole, which erases national differences and preferences, there is a standardization of consumption. Products such corporations like Mars, Siemens, Sony, Samsung, IBM and many others are sold worldwide. International quality standards, management systems (TQM, CPI, TQC, ISO 9000), introduced by the western countries set the bar competitiveness of the rest. This situation leads to an increase in the magnitude of the spread of the crisis in the world. Keywords : globalization, the internationalization of the world economy, the financial crisis, the global economy, financial system, financial resources. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:p16103&r=cse |
| By: | Li, Wenxuan; Marshall, Maria I. |
| Abstract: | This paper examines the relationship between role satisfaction of farm family business owners and gender. Specifically, this paper investigates how role satisfaction is different for male and female farm family business owners. Previous literature has suggested that male and female owners might have a different level of satisfaction when faced with similar profits. The hypothesis is that female owners will have higher levels of role satisfaction than male owners. The sustainable family business model is adapted to form the theoretical framework. It helps identify family and business resources and constraints, processes, and transactions that are most likely to lead to business and family achievement. Gender and profit are two important factors in the model. The data used for the empirical analysis come from the 2012 Intergenerational Farm and Non-Farm Family Business Survey, which was a 30-minutes telephone survey of rural family businesses in Illinois, Indiana, Michigan, and Ohio. The sample consists of 736 small and medium size farms from the four states. Preliminary results indicate that gender has significant impact on the perceived role satisfaction of owners when they face the same profits. |
| Keywords: | Satisfaction, gender, family business, profit, Agribusiness, Consumer/Household Economics, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252702&r=cse |