Innovation and International Competitiveness of Manufacturing Firms

2014 ◽  
pp. 57-82 ◽  
Author(s):  
Malgorzata Stefania Lewandowska ◽  
Tomasz Golebiowski
Keyword(s):  
International Competitiveness ◽  
Manufacturing Firms ◽  
Community Innovation Survey ◽  
Firm Level ◽  
Firm Innovation ◽  
Logistic Regression Models ◽  
Eu Member States ◽  
Country Analysis ◽  
The Relationship ◽  
International Sales

Numerous firm-level studies indicate a positive relationship between innovation and exports, being an important indicator of international competitiveness. The aim of this chapter is to present a cross-country analysis of the relationship between innovation and exports of firms in selected new EU Member States from the CEE region. All types of innovation (i.e. product, process, organizational, and marketing innovation) are analyzed and their relationship with international sales is assessed in this chapter. The analysis is based on Community Innovation Survey (CIS) micro data of 10,903 innovative manufacturing firms from Bulgaria, Czech Republic, Hungary, Poland, and Romania for the 2006 – 2008 period. The logistic regression models are constructed to identify the relationship between each type of innovation and firms' export sales. The reverse causality (i.e. the effect of international sales on firm innovation) is also investigated. The strongest relationship between the introduction of product innovation and export sales on all foreign target markets was revealed for firms in all CEE countries. The influence of other types of innovation on export sales was also proved positive, though weaker, in most of these countries. The influence of international sales on firm's innovation in all surveyed countries was weaker than the impact of innovation on export.

Overcoming the Dark Side of Closed Networks in Cultural Tourism Clusters: The Importance of Diverse Networks

2017 ◽  
Vol 59 (3) ◽  
pp. 239-256 ◽  
Author(s):  
Ángela Martínez-Pérez ◽  
Marie-Michele Beauchesne
Keyword(s):  
Social Capital ◽  
Developed Countries ◽  
Cultural Tourism ◽  
Dark Side ◽  
Negative Effects ◽  
Firm Level ◽  
Firm Innovation ◽  
Closed Networks ◽  
The World ◽  
The Relationship

Despite the recognized importance of tourism as an engine of economic growth in developed countries, research on the antecedents of innovation in this sector has been sparse, especially in the context of tourism clusters. Scholars have suggested that social capital is a key determinant of firm innovation in the context of tourism clusters, but empirical evidence has been lacking. The aim of this article is to empirically study the interplay between social capital and innovation in the context of tourism clusters at firm level. More specifically, we analyzed the effects of closed networks and diverse networks on firm innovation using a sample of 215 hospitality and tourism firms located in the World Heritage Cities of Spain. Results showed an inverted-U-shaped relationship between closed networks and firm innovation. Consistent with existing literature, these findings suggest that whereas a certain degree of strength and density helps to promote innovation, a critical point may exist beyond which innovation stabilizes or deteriorates when the information of the network becomes too redundant. In addition, we found that diverse networks positively moderated the relationship between closed networks and firm innovation. In other words, structural holes appear to mitigate the negative effects arising from excess strength and density and encourage the development of innovations beyond what a firm relying solely on closed networks could achieve. In practice, these results suggest firms in tourism clusters should not exclusively focus on typical closed networks but also create connections with diverse agents to maximize their potential for innovation.

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.

scholarly journals LBOs’ effects on innovation: evidence from France

2018 ◽  
Vol 19 (3) ◽  
pp. 184-200
Author(s):  
Anne-Laure Le Nadant ◽  
Frédéric Perdreau
Keyword(s):  
Survey Data ◽  
Private Equity ◽  
Manufacturing Firms ◽  
Incremental Innovation ◽  
Community Innovation Survey ◽  
Firm Level ◽  
Innovative Products ◽  
Innovative Capabilities ◽  
Negative Effect ◽  
Positive Effect

Using Community Innovation Survey data from France, we provide an empirical analysis of the innovative efforts of a sample of manufacturing firms that underwent a leveraged buyout. We find no evidence that LBOs have a negative effect on firm level of innovation expenditure. In contrast, results suggest that buyouts have a positive effect on incremental innovation and that private equity firms help to make innovation spending more effective and even more efficient. It could be that private equity firms help the company to focus on its core innovative capabilities and bring innovative products to the market without increasing innovation spending.

scholarly journals INDUSTRIAL ESTATE, FIRMS’ PRODUCTIVITY, AND INTERNATIONAL TRADE RELATIONSHIP: THE CASE OF INDONESIAN MANUFACTURING FIRMS

2020 ◽  
Vol 14 (1) ◽  
pp. 121-146
Author(s):  
Fitria Faradila ◽  
Makoto Kakinaka
Keyword(s):  
Manufacturing Firms ◽  
Firm Level ◽  
Productivity Level ◽  
Entropy Balancing ◽  
Matching Methods ◽  
Export Activity ◽  
Industrial Estate ◽  
Level Data ◽  
Significant Difference ◽  
The Relationship

Abstrak Kawasan industri diyakini dapat mendukung perkembangan sektor industri di negara berkembang melalui fasilitas infrastruktur yang lebih baik, akses ke industri pendukung serta limpahan teknologi dan informasi. Ketiga faktor tersebut diperkirakan dapat mendorong produktivitas dan aktivitas ekspor perusahaan manufaktur di dalam kawasan industri. Berbagai penelitian terdahulu masih memberikan hasil yang beragam mengenai hubungan ketiga variabel ini. Oleh karena itu, penelitian ini bertujuan untuk mengidentifikasi hubungan antara kawasan industri dengan tingkat produktivitas dan kegiatan ekspor pada studi kasus perusahaan manufaktur di Indonesia. Penelitian ini memperkenalkan penggunaan dari entropy balancing, salah satu teknik matching methods dengan unit analisis level data perusahaan. Perbedaan jumlah observasi yang cukup signifikan antara perusahaan di dalam dan di luar kawasan industri memotivasi penggunaan teknik matching methods agar data penelitian menjadi seimbang. Treatment (perlakuan) dari penelitian ini adalah ketika perusahaan berada di kawasan industri. Terdapat dua variabel keluaran yakni tingkat produktivitas dan aktivitas ekspor. Hasil penelitian menunjukkan bahwa berada di Kawasan Industri mendorong tingkat produktivitas, namun gagal untuk mempromosikan kegiatan ekspor.   Abstract Many believe that the industrial estate could encourage the industrial sector in developing countries due to its better infrastructure, access to supporting industries, and the market as well as technology and information spillover. These factors could lead to a higher productivity level and export activities of manufacturing firms inside the industrial estate. Some previous studies still provide a mixed result regarding the relationship between these three variables. Thus, this paper contributes to the related study by examining the relationship between an industrial estate and both productivity level and export activity in the case of Indonesian Manufacturing Firms. The paper introduces the practice of entropy balancing, one of matching methods along with firm-level data as a unit of analysis. A significant difference in the number of observations between firms inside and outside the industrial estate motivates the usage of matching methods technique, so the data become balanced. The treatment is when the firms being in the industrial estate. There are two outcomes variables, which are productivity level and export activity. The result found that being industrial estate improves firms’ productivity, yet it fails to promote export activity. JEL Classification: L23, L52, L60

scholarly journals Financial Bankruptcy across European Countries

2017 ◽  
Vol 9 (7) ◽  
pp. 132 ◽  
Author(s):  
Marianna Succurro
Keyword(s):  
Manufacturing Firms ◽  
European Countries ◽  
Good Reliability ◽  
Firm Level ◽  
Accounting Data ◽  
Eu Member States ◽  
Financial Firms ◽  
Industrial Sectors ◽  
Default Prediction ◽  
Level Of Significance

The aim of this research is to describe corporate bankruptcy across Western European countries and propose a simple and reliable default prediction model for private manufacturing firms in six EU member states. Using firm-level accounting data taken from the Orbis-Europe Database, published by Bureau Van Dijk, we first propose a simple Indebtedness index which considers the multifaceted aspects of debt and allows to make interesting comparison among firms, countries, industrial sectors and over time. Second, we estimate a logit model, based on both the first step computed Indebtedness score and additional non-financial firms’ characteristics, which allows to compute firms’ predicted probabilities of default in each country. The empirical findings show that the Indebtedness score is statistically significant in explaining bankruptcy and it enters all the regressions with the highest coefficient and level of significance. However, while the indebtedness score is a valuable bankruptcy predictor for Italy, Germany, Portugal and Spain, which are bank-based economies, it is relatively less important for France and UK, being countries more strongly oriented toward the financial market. The overall evidence highlights a good reliability of our multi-country model for the prediction of corporate bankruptcies across Europe.

The relationship between organizational slack and innovation: revisited

2014 ◽  
Vol 29 (1) ◽  
pp. 26-42 ◽  
Author(s):  
Fariss Terry Mousa ◽  
Jaideep Chowdhury
Keyword(s):  
Fixed Effect ◽  
Publicly Traded ◽  
Firm Level ◽  
Firm Innovation ◽  
Content Type ◽  
Financial Slack ◽  
Level Data ◽  
Economic Downturns ◽  
The Impact ◽  
The Relationship

Purpose – The slack-innovation relationship has interested scholars for years. The authors aim to delve into the impact of financial slack on firm innovation by replicating a classic study arguing that this relationship has an inverse U-shape. Design/methodology/approach – The sample consists of all US firms that were publicly traded between 1993 and 2011. The authors employ the standard econometrics methodology of panel regression with firm-fixed effect and time-fixed effect to estimate the regression equation of firm innovation on financial slack. Findings – The authors find that the relationship between financial slack and R&D investments is similar to that suggested by earlier authors, thus enhancing the generalizability of this important finding in management research. The authors also find that this relationship holds even during economic downturns. Originality/value – The authors replicate Nohria and Gulati's classic study by considering the impact of slack on innovation. The authors also move away from survey data, as used by Nohria and Gulati. The authors utilize actual firm-level data for a large sample of US publicly traded firms from 1993 to 2011, thus enhancing the generalizability of these findings.

scholarly journals Blending Innovation Types in Order to Achieve International Competitiveness. Multi-country Approach

2021 ◽  
Vol 18 ◽  
pp. 1223-1234
Author(s):  
Małgorzata Stefania Lewandowska
Keyword(s):  
Product Innovation ◽  
Central And Eastern Europe ◽  
International Competitiveness ◽  
Bonferroni Correction ◽  
Micro Data ◽  
Foreign Markets ◽  
Community Innovation Survey ◽  
Marketing Innovation ◽  
The Subject ◽  
The Relationship

The relationship between innovation and international competitiveness is the subject of many research studies. The aim of the paper is to examine the association between the introduction of product innovation individually and in pairs with process and marketing innovation and the exporting of enterprises from 13 European Union countries, mainly from Central and Eastern Europe. The study used anonymized micro data from the Community Innovation Survey (CIS) for 2012-2014. Based on the sample of 98 809 enterprises, 14 models were built using path analysis with the Bonferroni correction, one for the whole sample and 13 for each of the country studied. The analysis indicates positive link between the introduction of product innovation on sales activity on foreign markets of the enterprises of the surveyed countries (measured by exporting), but only for Germany and Spain. Surprisingly, adding process or marketing innovation to product innovation in most of the cases has an adverse effect on exporting.

Firm-level digital transformation affects individual-level innovative behavior: Evidence from manufacturing firms in China

2021 ◽  
Vol 49 (11) ◽  
pp. 1-12
Author(s):  
Xiaomin Zhao ◽  
Yunqing Liu ◽  
Yu Xie ◽  
Jianchang Fan
Keyword(s):  
Digital Technology ◽  
Business Processes ◽  
Manufacturing Firms ◽  
Digital Transformation ◽  
Innovative Behavior ◽  
Firm Level ◽  
Individual Level ◽  
Mediating Role ◽  
Minority Dissent ◽  
The Relationship

Digital technologies significantly impact on manufacturing firms as they innovate their business processes in response to rapidly changing environments. Therefore, the proper use of digital technology to promote innovative behavior has become an important topic in research. However, few studies have examined how firm-level digital transformation affects individual-level innovative behavior. Drawing on the minority dissent perspective, we explored the mechanism by which digital transformation affects innovative behavior. Surveying 540 participants from Chinese manufacturing firms revealed that firm-level digital transformation was significantly correlated with both crossfunctional minority dissent and individual-level innovative behavior. Moreover, minority dissent played a partial mediating role in the relationship between digital transformation and innovative behavior. This study sheds new light on how firm-level digital transformation can determine individual-level innovative behavior.

scholarly journals Return Determinants in a Deteriorating Market Sentiment: Evidence from Jordan

2016 ◽  
Vol 10 (4) ◽  
pp. 168
Author(s):  
Imad Zeyad Ramadan
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Market Sentiment ◽  
Panel Data Regression ◽  
Data Regression ◽  
Amman Stock Exchange ◽  
The Relationship

<p>This paper aimed to examine the relationship between the returns and special characteristics of the industrial firms listed at Amman Stock Exchange; namely risk and size, when market sentiment deteriorates. This study used econometric analysis, utilizing cross-sectional panel data regression. As for the financial data needed for this study, we utilize the information which are distributed six month prior deterioration of market sentiment. Data on the firm-level were derived from the official website of ASE. The sample of firms includes all manufacturing firms listed at ASE through the period 2000-2014. The experimental results of this study have concluded that when market sentiment deteriorates, the risks and returns are associated inversely with returns, this outcome is reliable with the perspective that in times of deteriorating market sentiment, speculators support the “safe” characteristics of firms and move away from the characteristics of firms that are related to speculative activities.</p>

scholarly journals The effects of EU R&I funding on SME innovation and business performance in new EU member states: Firm-level evidence

2021 ◽  
Vol 66 (228) ◽  
pp. 7-41
Author(s):  
Nevenka Cuckovic ◽  
Valentina Vuckovic
Keyword(s):  
Business Performance ◽  
Community Innovation Survey ◽  
Firm Level ◽  
Member States ◽  
Effect Analysis ◽  
Eu Member States ◽  
Research And Innovation ◽  
Innovation Activities ◽  
Start Ups ◽  
New Eu Member States

SMEs are the most dynamic and vibrant part of the enterprise sector in terms of start-ups and new jobs, and a significant share of the EU?s total innovation activities take place within them. This paper uses the Community Innovation Survey (CIS) 2014 and eCORDA data to analyse whether SME participation in EU research and innovation (R&I) funding programmes has increased their innovation activities and business performance. To achieve this, we empirically test whether SMEs that received EU funds recorded an improvement in their innovation and economic performance. This is measured by research and development (R&D) expenditure, product innovation, turnover, and employment. The paper focusses particularly on new EU member countries and among them to those from Central and Eastern Europe (CEE). It explores the theoretical and methodological backgrounds that guided us in these analyses and performs treatment effect analysis at firm level, using CIS CDROM data that we received on request from Eurostat. The obtained results indicate that EU R&I funding is beneficial to the innovation activities of SME recipients, and to their overall business performance. It also assists new EU member states in the process of ?catching up? to the growth levels of more established EU economies.

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