Purpose: The paper explores factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness.
Design/Methodology: The framework of resources-based view is used to examine causality between the resources employed and competitiveness measured by Economic Value Added. Controlling for the most relevant factors, we place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behaviour of companies, foreign investments, and corporate networks. The dataset of more than 1000 Russian companies benchmarked to the dataset of more than 1600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward.
Findings: Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, like those such as ERP systems and other intangible assets, are considered positive factors that reduce gaps in EVA.
Originality/value: The paper introduces original approach for studying the gap in performance caused by gap in employed resources.
This study explores the value creation and agent conflict in a company that employs intangibles. The conceptual model of value creation is used to test how intangibles affect companies' outperforming and simultaneously build investors' expectations. The research is carried out using a sample of more than 1,650 European companies covering the period from 2004 to 2011. The study reveals the diverse impact of intangibles on the outperforming of a company by Economic Value Added (EVA) and its ability to create market value (MVA). The study discovers that managers are prone to set positive signals for investors rather than create sustainable competitive advantages. This work contributes primarily to the field of corporate governance in companies that employ intangibles. The issues to be considered when designing rules and incentives for proper communication between managers and investors that drive both outperforming and sustainable value creation are emphasized.
This paper investigates how the recent crisis of 2008 changed relations between innovation and firm performance in Western Europe. We apply a structural framework of CDM modelling, which incorporates different stages of the knowledge creation process and takes into account the complex nature of innovations. The study is based on a balanced panel data of 420 listed manufacturing firms from the U.K., Germany and France. All the information is gathered from common sources, thereby reducing subjectivity, a typical problem in the field. We found, the crisis resulted in appreciable changes in the model. The most important evidence is enhancement of the role of firm resources in the post-recession period. We also reveal larger barriers for innovations, increased uncertainty and lower state dependence in R&D engagement, product creation and economic performance. These results could indicate the ‘cleaning effect’ of the crisis, which has worsened the business environment and enhanced competition.
Purpose – This study explores company strategies for intangibles. We investigate whether it is reasonable for companies to intensify intangibles when the current strategy is not intangible-intensive. This paper aims to elaborate a theoretical model to describe the strategic decision-making in companies.
Design/methodology/approach – We use the Bellman equation framework to find the conditions under which a change in strategy for intangibles is reasonable.
Findings – The results determine the parameters of returns on intangibles in different strategies, the optimal intangible stock and the influence of external economic shocks. The findings of our study demonstrate that many requirements have to be met to make intangible-intensive strategy beneficial for a company. Moreover negative shocks of crises force a company to postpone a new strategy on intangibles.
Practical implications – This research provides an insight into strategic behaviour of companies under uncertainty. The theoretical findings demonstrate under which conditions companies should decide to switch to a strategy more intangible-intensive. This model can be used to empirically test parameters of different investment strategies of companies using structural estimation techniques.
Originality/value – This work contributes to the theory of managerial economics giving closed form solutions for the dynamic optimization of company behaviour. The findings also show how this behaviour might change when economic crises are faced or expected.
В работе оценивается влияние концентрации собственности, как механизма корпоративного управления, на операционную и рыночную эффективность российских публичных компаний. В качестве индикатора концентрации используется индекс Херфиндаля-Хиршмана. Эмпирический анализ с использованием метода Хаусмана-Тейлор по данным 2004-2013 гг. показал, что в условиях развивающейся институциональной среды, высокая концентрация собственности может считаться эффективным инструментом улучшения результатов деятельности компаний.
Sport event promoters aim to organize them to get the best return on their investment. The purpose of this study is to learn better how to manage the event to maximize the benefit to the host area. Most studies on economic impact of sporting events focus on mega events or look for an impact in medium to large size cities. This study estimates the effect of a two-day event, the Rally Ourense, that takes place in a small town in Spain. Economic impact is estimated based on surveys of spectators and interviews of competitors in the 2009, 2010, and 2011 editions of the rally. The results show that the race has favorable effects, but also suggest that the impact could be increased with some simple changes to the event structure.
El enfoque de capital intelectual sugiere que este es fuente de ventajas competitivas. Las pequeñas y medianas empresas (pymes) basadas en recursos naturales son una importante fuente de crecimiento en las economías latinoamericanas; sin embargo, presentan limitaciones de capital intelectual, lo que puede afectar su competitividad. Este trabajo analiza el proceso de generación de ventajas competitivas en estas pymes y, de modo especial, cuál es el efecto de los diferentes componentes de capital intelectual sobre el desempeño empresarial. El modelo teórico se estudia para el caso de pymes madereras de Oberá (Argentina). Los resultados sugieren que las pymes basadas en recursos naturales utilizan el capital intelectual junto con otros recursos para generar capacidades organizativas que, unidas al territorio, afectan a sus factores estratégicos, lo que les permite obtener mejores resultados. Dentro de ese modelo, se determinan elementos del capital humano (la actitud, la formación y las capacidades del personal), del capital estructural (la cultura la tecnología y la organización interna de la empresa) y del capital relacional (las relaciones con clientes y proveedores, la cooperación y la imagen de la empresa). Estos elementos mejoran las capacidades organizativas que son fuente de ventaja competitiva.
В данной работе рассмотрено, как футбольное спонсорство влияет на эффективность работы спонсоров. Мы используем модель с инструментальой переменной и фиксированными эффектами, чтобы избежать эндогенности в связи с пропущенными переменными и обратной причинно-следственной связью. В качестве инструментальной переменной использованы данные по количеству совместных упоминаний в твиттере футбольной команды и компании-спонсора. Данные были собраны для основных футбольных лиг Европы. Результаты показывают, что спонсорство футбольного клуба является скорее благотворительностью, чем коммерческим проектом. Следовательно, акционеры должны быть информированы о заключении спонсорских контрактов, а руководство компании должно тщательно анализировать предпосылки прогнозирования денежных потоков от подобных проектов.
The goal of this study is to measure the efficiency of the major European football teams under financial and win objectives using profits and UEFA coefficient as outputs. An alternative model is presented maximizing wins and minimizing financial losses. Results show much room for improvement, especially in financial management.
Subsistence small businesses (SSB) are very important in developing countries for reducing poverty. Companies in developing countries need innovation in order to compete, and innovation is particularly significant for SSBs, as they are usually less well-prepared for competition. Human capital is the key to improving the situation of poor countries as such human capital improves innovativeness in companies. Nevertheless, human capital is scarce in SSBs and these businesses possibly need the alignment of human capital with strategy to improve their performances. This alignment is achieved by exploiting the dynamic capabilities of human capital management. The aim of this paper is to analyse human capital management and innovativeness in SSBs in the timber industry in a region of Latin America using PLS techniques. The findings suggest that SSBs build human capital management and innovativeness as dynamic capabilities and use human capital management to improve innovativeness.
The aim of this paper was research how each kind of tournament affects the revenues generation in football clubs. We have analysed the sports performance of 28 Brazilian football clubs during five seasons (2010-14). We have studied the five most important tournaments there: Brazilian League, Brazilian Cup, State Championships, Libertadores Cup and South American Cup. We have carried out a linear regression in a panel data with football clubs fixed effects. The lagged variables of each tournament were employed to examine if the previous sports performance could improve the next revenues. The model explains 65.1% of the total revenues. In addition, the lagged performance in a League and the current performance in a Cup and Libertadores were the tournaments that statistically affect the revenues generation. We conclude that the importance and the competitive format have different impacts in the revenues generation on Brazilian football clubs.
We combine agency theory with the law and finance approach to analyze how the legal protection of investors and the corporate ownership structure affect corporate investment in research and development (R&D). We use information from 956 firms from the five most R&D-intensive industries in 19 developed countries. Our results show that better protection of investors’ rights by the institutional environment has a positive influence on corporate R&D. We also find that corporate ownership concentration works as a substitute for legal protection. This finding means that R&D investment of the firms in the countries with poor legal protection increases as ownership becomes more concentrated. Our results also show that the identity of shareholders has a relevant effect: Whereas banks and nonfinancial institutions as shareholders result in lower R&D, institutional investors as shareholders increase corporate investment in R&D.
This paper explores the moderator effect of firm size on the relation between different intangible resources and companies' performance. By analysing small and medium enterprises (SMEs) and large companies, the authors examine the differences in the employment of six types of intangible resources: human resources, management resource capabilities, innovation and internal process capabilities, customer loyalty and networking capabilities. Dummy regression is applied to establish the differential effect in the impact of these intangibles on firm performance, measured by return on assets (ROA). This study provides econometric justification using a database of more than 1,400 European public companies. The time period for the investigated data covers ten years, from 2004 to 2013. The findings revealed that SMEs have less endowment of almost all of the analysed intangible resources. At the same time, in comparison with large companies, SMEs benefit more from developing human resources, innovation and internal process capabilities.