Searching for innovation in market and transition economies: evidence across Europe

Searching for externally available knowledge has been characterized as a vital part of the innovation process. The availability of such innovation impulses, however, critically depends on the environment a firm is operating in. Little is known on how institutional infrastructures for innovation differ with respect to the munificence in providing innovation impulses. In this paper, we suggest that these differences are particularly pronounced between established market economies and transition economies. We argue that these differences shape a firm's search pattern and that the search pattern subsequently moderates the relationship between innovation inputs and outputs. Based on a sample of more than 4,500 firms from ten European countries we find that search strategies differ considerably between established market and transition economies. Search in transition economies is characterized by much more variety. However, management capacity in these countries is a particularly scarce resource which is why focused search strategies turn out to be most successful. --Search strategies,open innovation,transition economies,institutional infrastructure for innovation

Mergers and acquisitions and bank performance in Europe: the role of strategic similarities

An unprecedented process of financial consolidation has taken place in the European Union over the past decade. Building on earlier US evidence, we examine the impact of strategic similarities between bidders and targets on post-merger financial performance. We find that, on average, bank mergers in the European Union resulted in improved return on capital. By making the assumption that balance-sheet resource allocation is indicative of the strategic focus of banks, we also find significantly different results for domestic and cross-border mergers. For domestic deals, it could be quite costly to integrate dissimilar institutions in terms of their loan, earnings, cost, deposits and size strategies. For cross-border mergers and acquisitions (M&As), differences of merging partners in their loan and credit risk strategies are conducive to a higher performance whereas diversity in their capital, cost structure as well as technology and innovation investments strategies are counterproductive from a performance standpoint. JEL Classification: G21, G34banks, M&As, strategic similarities

Prior Experience and Export Performance: The Missing Link of Global Vision

Despite the scholarly interest in the prior experience of entrepreneurs expressed by the field of International Entrepreneurship, empirical investigation linking prior experience with international performance leads to inconclusive and conflicting results. Based on the concept of human capital and resource-based theory, this study provides a supplementary explanation by integrating global vision —the cognitive capital of the entrepreneur related to an international orientation— into this relationship. The study hypothesises that there is no direct relationship between entrepreneurs’ prior experience and export performance; rather, this relationship is mediated by an entrepreneur’s global vision. The hypotheses were tested using structural equation modelling, drawing on a sample of 332 early internationalising SMEs in Bangladesh. To overcome the cognitive inertia resulting from prior experiences, entrepreneurs must focus on their cognitive capabilities, in particular the ability to see the world through a global lens. In order to improve export performance, policymakers must also provide additional support to strengthen entrepreneurs’ global vision