Absorption of foreign knowledge: the impact of immigrants on firm productivity

2020 ◽  
Author(s):  
Jürgen Bitzer ◽  
Erkan Gören ◽  
Sanne Kruse-Becher
Keyword(s):  
Large Range ◽  
Manufacturing Firms ◽  
Factor Productivity ◽  
Firm Level ◽  
Knowledge Based ◽  
Hiring Decision ◽  
Productivity Gain ◽  
Productivity Increase ◽  
New Firm ◽  
The Impact

Abstract What role do immigrants play in firms’ ability to absorb and apply foreign knowledge? Based on a matched employer–employee dataset from Danish manufacturing firms over the period 2001–2011, this study examines the impact of foreign knowledge accessible by firms’ immigrant employees on firm-level total factor productivity (TFP). We construct various firm-specific absorbable foreign knowledge measures that link firms’ immigrant employees to the technological knowledge base of their country of origin. The empirical results suggest that firms employing immigrant employees have higher firm-level TFP outcomes and a higher probability of new firm-level patent applications. The average productivity gain associated with the hiring of one immigrant employee is about 1.5% in the year following the firm’s hiring decision. Additional results show that the estimated productivity increase varies with the level of education and the occupational positions of the immigrant employees. The results are robust to the inclusion of a large range of firm-specific controls and various sensitivity checks.

Impact of Determinants of Industrial Development on Employment and Wages in Indian Manufacturing

2020 ◽  
pp. 18-30
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
Firm Level ◽  
Employment Level ◽  
The Impact ◽  
Level Performance

ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.

scholarly journals Firm Level Strategy, Organization Culture and Performance of Food and Beverage Manufacturing Firms in Kenya

2018 ◽  
Vol 13 (8) ◽  
pp. 224 ◽  
Author(s):  
Zachary B. Awino ◽  
Dominic C. Muteshi ◽  
Reginah K. Kitiabi ◽  
Ganesh P. Pokhariyal
Keyword(s):  
Policy Formulation ◽  
Manufacturing Firms ◽  
Organization Culture ◽  
Hierarchical Regression ◽  
Firm Level ◽  
Food And Beverage ◽  
Improved Performance ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The study tested the impact of organization culture on the on the relationship between firm-level strategy and performance of food and beverage manufacturing firms in Kenya. The opinion of the CEO/MDs from 125 firms in this sector was sought by application of a structured questionnaire; the collected data was analysed using hierarchical regression analysis. The paper stated hypothesis that organizational culture has a significant effect on the relationship between firm-level strategy and performance. The results supported the hypothesis. Therefore, firm development of strong organization culture to support firm-level strategy for higher performance is paramount. These findings will contribute to government policy formulation for sector’s expansion and competitiveness and management drives in building a positive organization culture to support firm-level strategy for improved performance.

Services Outsourcing and Productivity Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 192-209 ◽  
Author(s):  
Sonia Mukherjee
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Core Competencies ◽  
Marketing Research ◽  
Manufacturing Firms ◽  
Professional Services ◽  
Business Services ◽  
Positive Role ◽  
Firm Level ◽  
The Impact

The article studies the impact of outsourcing services on the productivity growth of the Indian manufacturing firms. By the term services we mean different expenses on services incurred by the manufacturing firms, such as, advertising, marketing, research and development, consultancy, auditing, business services, knowledge-based services, technical, legal and other professional services (including information communication and technology services). With further expansion in newer services, a higher demand has come from the Indian manufacturing sector. With intensive usage of services in the manufacturing production process, the performance and the manufacturing can focus on the core competencies with outsourced and cheaper services from expert service provider. For this purpose, the firm-level data have been collected from the annual financial statements of the Centre for Monitoring of the Indian Economy’s Prowess database. The econometric results conclude that services have played a positive role in improving the productivity growth of the aggregate Indian manufacturing firms and at the disaggregated level, especially for industrial groups such as food, beverage and tobacco; textiles, gems and jewellery; transport; machinery; metal, rubber and plastic; leather and footwear; and chemicals, services have played a favourable role in boosting the productivity growth. JEL: D24, L80, L60

The impact of exporting on women's employment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Begum Dikilitas ◽  
Burcu Fazlioglu ◽  
Basak Dalgic
Keyword(s):  
Manufacturing Firms ◽  
Female Employment ◽  
Women's Employment ◽  
Employment Rate ◽  
Women’S Employment ◽  
Firm Level ◽  
Content Type ◽  
Time Period ◽  
Employment Rates ◽  
The Impact

PurposeThis paper aims to examine the effect of exports on women's employment rate for Turkish manufacturing firms over a recent period of 2003–2015.Design/methodology/approachThe authors establish treatment models and use propensity score matching (PSM) techniques together with difference-in-difference methodology.FindingsThe results of the study indicate that starting to export increases women’s employment rate for manufacturing firms. Gains in female employment rates are observed for the firms operating in low and medium low technology intensive sectors, low-wage sectors as well as laborlabor-intensive goods exporting sectors.Originality/valueThe authors complement previous literature by utilizing a rich harmonized firm-level dataset that covers a large number of firms and a recent time period. The authors distinguish between several sub-samples of firms according to technology intensity of the sector in which they operate, wage level and factor intensity of exports and investigate whether or not women gain from trade in terms of employment opportunities.

scholarly journals Markups, Market Imperfections, and Trade Openness: Evidence from Ghana

2019 ◽  
Author(s):  
Kaku Attah Damoah
Keyword(s):  
World Trade ◽  
Trade Openness ◽  
Manufacturing Firms ◽  
Market Imperfections ◽  
Real Wages ◽  
Firm Level ◽  
Wto Accession ◽  
Level Information ◽  
Monopsony Power ◽  
The Impact

AbstractThis article investigates the impact of Ghana’s World Trade Organization (WTO) accession on firm-level product and labor market imperfections. The article exploits a rich dataset of firm-level information to estimate markups and the degree of monopsony power enjoyed by manufacturing firms. The results indicate that price-cost margins declined while the degree of monopsony power increased in the wake of WTO accession. These diverging dynamics suggest that firms compress real wages to offset loss of market power in the product market due to increased international competition. This gives rise to an increase in the market imperfection gap, which gradually erodes the pro-competitive gains from trade. The article contributes to the literature by identifying channels through which allocative inefficiencies and misallocation can persist even after trade liberalization.

scholarly journals Proactive Divestiture and Business Innovation: R&D Input and Output Performance

2020 ◽  
Vol 12 (9) ◽  
pp. 3874 ◽  
Author(s):  
Kyungsuk Lee ◽  
Taewoo Roh
Keyword(s):  
Financial Distress ◽  
Corporate Sustainability ◽  
Unit Size ◽  
Firm Level ◽  
Knowledge Based ◽  
Input And Output ◽  
Financial Pressure ◽  
Organizational Inertia ◽  
The Impact ◽  
The Relationship

We investigate the impact of proactive divestitures on innovative activities at a firm-level. Research concerning the relationship between proactive divestiture and innovation performance remains unexplored and requires a close investigation. Furthermore, we argue that proactive-divestiture is an essential means to achieve corporate sustainability by fostering innovation outcomes. To explore such a relationship, this study integrates research on knowledge-based view and organizational inertia and encompasses the model of financial distress. We hypothesize that proactive divestiture increases both the firm’s R&D intensity and the number of patents and propose that prior divestiture experiences and divested-unit size would moderate this relationship. Results indicate that proactive post-divestiture firms have increased in R&D inputs but not significantly in output. We found mixed results for such a relationship as prior experiences increased, but interestingly, the relationship revealed to be more significant for both input and output as divested-unit size decreased. This study contributes to our understandings of how proactive divestiture can reinforce knowledge capacity, distant from a traditional resource-based view that mainly regarded divestiture as a mere responsive action vis-à-vis financial pressure.

scholarly journals Factor Affecting Innovation Performance of Manufacturing Firms

2020 ◽  
Vol 11 (3) ◽  
pp. 85-100
Author(s):  
Sanjay Dhir ◽  
Swati Dhir
Keyword(s):  
Qualitative Research ◽  
Intellectual Property ◽  
Case Studies ◽  
Research Methodology ◽  
Manufacturing Firms ◽  
Knowledge Based ◽  
Research Article ◽  
Knowledge Based Economy ◽  
Qualitative Research Methodology ◽  
The Impact

In the knowledge-based economy, creation, management, and dissemination of knowledge in an organized way will certainly enhance the innovative practices of companies in any country. This article has tried to explore the impact of various factors on innovation. Following a qualitative research methodology, the article has come up with 8 propositions and tried to build up the arguments in the real company's context in India by 3 case studies. The research has been able to provide necessary evidence of particular companies and tried to build arguments for the suggested propositions. The findings of the research article will certainly help academicians and practitioners to emphasize the intellectual property related laws of any country to enhance the innovation quotient of any country.

scholarly journals How Special Is the Special Relationship? Using the Impact of U.S. R&D Spillovers on U.K. Firms as a Test of Technology Sourcing

2006 ◽  
Vol 96 (5) ◽  
pp. 1859-1875 ◽  
Author(s):  
Rachel Griffith ◽  
Rupert Harrison ◽  
John Van Reenen
Keyword(s):  
Total Factor Productivity ◽  
Home Country ◽  
Manufacturing Firms ◽  
Special Relationship ◽  
Factor Productivity ◽  
Technology Sourcing ◽  
The Impact ◽  
The U.S

We examine the “technology sourcing” hypothesis that foreign research labs located in the U.S. tap into U.S. R&D spillovers and improve home country productivity. We show that U.K. firms that established a high proportion of inventors based in the U.S. by 1990 benefited disproportionately from the growth of U.S. R&D stock over the next ten years. We estimate that U.S. R&D during the 1990s was associated with 5 percent higher Total Factor Productivity for U.K. manufacturing firms in 2000 (about $13 billion), with the majority of benefits accruing to firms with an innovative presence in the U.S.

scholarly journals The Impact of Haze Pollution on Firm-Level TFP in China: Test of a Mediation Model of Labor Productivity

2020 ◽  
Vol 12 (20) ◽  
pp. 8446
Author(s):  
Bin Li ◽  
Shuai Shi ◽  
Yating Zeng
Keyword(s):  
Labor Productivity ◽  
Negative Impact ◽  
Listed Companies ◽  
Mediation Effect ◽  
Test Model ◽  
Factor Productivity ◽  
Firm Level ◽  
Haze Pollution ◽  
The Impact ◽  
The Relationship

The core issue for China’s economy to shift from high-speed growth to high-quality development is to raise total factor productivity (TFP). Based on the data of A-share listed companies from 2013 to 2017 and the air quality monitoring data released by the China National Environmental Monitoring Centre, this paper conducts an empirical test on the relationship between haze pollution, labor productivity, and firm-level TFP by using the mediation effect test model. The results show the following: First, haze pollution will reduce a firm’s TFP. Second, labor productivity plays a partial intermediary role between haze pollution and a firm’s TFP. Haze pollution will not only have a direct negative impact on a firm-level TFP but also reduce a firm-level TFP by reducing labor productivity. Subsequently, the robustness test was carried out by means of a substitution of independent variables and dependent variables, and the results all supported the hypotheses in this paper. In addition, the heterogeneity of the industry and the ownership of listed companies was analyzed, and the two-stage least squares (2SLS) method was used to solve the endogeneity problem. The conclusions of this paper are helpful to clarify the relationship between haze pollution, firm factor productivity, and firm-level TFP. The paper’s findings also provide a practical basis for firms to further improve TFP from the perspective of air pollution problems such as haze.

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