Technological Intensity Research Articles

Are importing and exporting complements or substitutes in an emerging economy? The case of Colombia

AbstractThe aim of this paper is to investigate the impact of two trading strategies (exporting and importing) on total factor productivity (TFP) and the potential complementarity/substitutability effects of these strategies. In order to assess these effects, robust estimates of TFP are obtained using a general method of moments approach that explicitly determines the ability of a firm's trading experience to affect productivity. Data from the Annual Manufacturing Survey spanning from 2007 to 2016 is used for Colombian manufacturing firms. Our estimation results suggest that, regardless of the technological intensity of the industry in which the firm operates, active trading strategies (exporting only, importing only, both importing and exporting) pay positive rewards in terms of productivity. Nevertheless, whilst positive (complementary) synergies are found between exporting and importing for firms in med/high‐tech sectors, for firms operating in low‐tech and med/low‐tech sectors, importing and exporting appear to be substitutes.

FDI, technology & knowledge transfer from Nordic to Baltic countries

The purpose of this study is to examine the intensity of technology and knowledge transfer to the selected Baltic countries through foreign direct investment. The intensity of technology and knowledge transfer across the Baltic countries varies widely, with Estonia showing the leading position in the Baltic region. The amount of foreign direct investment in three countries is linked with the level of technology and knowledge transfer. It is indicated that during the Financial Crisis in 2008, the extent of foreign direct ownership changed in all three countries and later recovered. In the aftermath of this disruption, countries recovered their stock Foreign direct investment attraction rates and almost reached their 2004 level. Latvia has achieved a 50 per cent increase among Baltic countries, benefiting from it. Foreign direct investment and technology transfer increased through effective strategies and policies. In contrast, Estonia maintains a sustained stock foreign direct investment and has moderately lower margins than in other Baltic countries. Among countries, Estonia is the dominant stock FDI absorber in the Baltic region and have made significant contributions in the region.

Effestiveness and efficiency criteria for strategic application of mechatronics in business processes

The present paper is centred on the effects of mechatronics in both high-tech and technologically less intensive firms. The strategy of innovation implementation in the mechatronics industry is tackled from both the high-tech business development perspective and the mechatronics product application perspective in other industries. Although the scientific and statistics literature with regards to the modern technology’s effects is well established, the scarcity of scientific research in the field of the application of mechatronics/robotics in business makes this topic of significant scientific value. The purpose of this paper is to examine the effectiveness and efficiency criteria for the strategic application of mechatronics in businesses, related to both the decision-making process at the top-management level as well as choosing, applying, and monitoring the success of mechatronics among institutional clients. Given that mechatronics’ application efficiency depends on a business model and the innovation culture, a focus on two categories of companies in terms of technological intensity could help businesses to choose the right high-tech product and the proper corresponding innovation commercialization model. Moreover, the paper could serve mechatronics firms while implementing the product/service or process innovations that are closer to consumer needs or specific industry challenges. Qualitative semi-structured expert interviews with four IT and four textile managers were conducted, and the conceptual model (which derives from the literature review) was tested. The choice of Lithuania as a target market for the analysed companies is related to the transition of this Baltic economy from the efficiency to the innovation-driven category, where the combination of high and low tech may be able to intensify the innovation process as well as to answer the research question of how to unlock the potential of mechatronics in business processes.

Energy Efficiency: The Manufacturing Sector in Indonesia

Indonesia is involved in the global effort to alleviate the deterioration of the environment due to climate change. Given that the manufacturing industry accounts for the second-highest share of national energy consumption, efficiency energy in the industrial sector is crucial. This research examines which industrial subsector has to be prioritized to improve energy efficiency and what are the determinant factors that influence energy efficiency in Indonesia manufacturing. This study analyzes energy intensity as an approach to measure energy efficiency. Focusing on the 2010 - 2015 period, this research employs two methods, namely input-output and panel data regression analysis. The empirical finding shows that textiles and textile products; pulp, paper, paper products, printing, and publishing; and rubber and plastics sectors are the first priority subsectors that must implement green industry standards. The next priority is the subsectors at the second level but have no green industrial standards, namely electrical and optical equipment. Furthermore, there were four variables that statistically increase energy intensity, namely lagged energy intensity, technology intensity, lagged value added, and location of plant. However, other two variables, the price of electricity and company size, can reduce energy intensity.

The impact of exporting on women's employment

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.

ECONOMIC EVALUATION OF SPRING WHEAT PRODUCTION TECHNOLOGY WITH DIFFERENT INTENSITY LEVELS

The aim of the study was to compare the productive and economic effects of different production intensities of spring wheat. The study was based on the results of a two-year (2015-2016) field study, conducted at the Agricultural Experimental Station in Osiny, belonging to the Institute of Soil Science and Plant Cultivation in Pulawy. Spring wheat cultivars (Arabella and KWS Torridon) were grown using intensive and integrated technologies. The technologies studied differed in the level of mineral fertilization and chemical plant protection. The cultivation of spring wheat of the KWS Torridon cultivar according to intensive technology, as compared with cultivation under conditions of integrated technology, resulted in a significant increase in grain yield by 10.6%, respectively. On the other hand, no effect of production technology was found on the yield of the Arabella cultivar. The research showed that the technology intensity level, determined by inputs of production means, determined the structure of direct costs and profitability of spring wheat cultivars. The compared technologies ensured the profitability of spring wheat grain production. The most advantageous index of direct profitability was recorded for the Arabella cultivar grown under integrated technology.

Performance Dissimilarities in European Union Manufacturing: The Effect of Ownership and Technological Intensity

Our paper addresses the relevance of a set of continuous and categorical variables that describe industry characteristics to differences in performance between foreign versus locally owned companies in industries with dissimilar levels of technological intensity. Including data on manufacturing sector performance from 20 European Union member countries and covering the 2009–2016 period, we used the random forests methodology to identify the best predictors of EU manufacturing industries’ a priori classification based on two main attributes: ownership (foreign versus local) and technological intensity. We found that EU foreign-owned businesses dominate locally owned ones in terms of size, which gives them an edge in obtaining higher profits, cash flow and investments and coping with higher personnel costs. Furthermore, ownership is a more important differentiator of performance at the industry level than the industry’s technological level. The performance of foreign-owned high-tech manufacturing industry units across the EU is the most heterogeneous compared to the other four categories, indicating particularities linked to technological level, ownership, and even location. Our findings suggest that multinational enterprises in high-tech industries transfer to eastern EU countries’ activities and processes with lower technological intensity and higher labour intensity, but also that locally owned businesses, even within high-tech industries, have lower technological levels.

The impact of smart specialization strategies on sub-cluster efficiency: simulation exercise for the case of Mexico

PurposeThis paper aims to evaluate whether the integration of smart specialization strategies (S3) into clusters significantly impacts their efficiency for countries that still do not implement this policy. This study tests three effects: whether the kind of policies envisaged through an S3 strategy impacts cluster’s efficiency; whether this impact changes with the technological intensity of the clusters; to determine which S3 is more suitable for sub-clusters at different levels of technological intensity.Design/methodology/approachThe Mexican economy is taken as case of study because it has a proper classification of its industries intro Porter’s cluster’s definition but still does not adopt the S3 policy. Through data envelopment analysis (DEA), this study evaluates the cluster’s efficiency increment when variables representing the S3 elements are included.FindingsThe results show that strategies following the S3 had a significant impact in all clusters, but when clusters were classified by technological intensity, the impact on efficiency is higher in clusters in the medium low-tech group.Practical implicationsAccording to the results in the DEA, it can be concluded that these S3 strategies have the potential to increase the clusters’ productivity significantly. These results make convenient the adoption of the S3 policy by countries that already count with a properly cluster definition.Originality/valueThese findings contribute to the lack of studies that analyze the join implementation of S3 on clusters.

R&D SPILLOVER, FIRM SIZE AND IN-HOUSE R&D: PANEL DATA EVIDENCE FROM ELECTRONICS GOODS SECTOR IN INDIA

This study examines the impact of R&D spillover and firm size on the R&D intensity of electronic firms operating in India for the time period 2000–2015. The study finds that firms benefitting from R&D spillover in their line of business are spending more on in-house R&D, indicating complementarity between R&D spillover and R&D efforts. When we consider possible R&D spillover with firm size, the positive association between R&D spillover and in-house R&D activity holds after a certain threshold of firm size is reached. A probable implication for the moderating influence of firm size suggests that large-sized firms have financial resources and the capability to assimilate technological knowledge in their product designs and processes. An inverted-U relationship between firm size and R&D suggests that support and assistance with the cost of research and development can spur the innovation incentive of small- and medium-sized firms. The empirical finding indicates that fringe firms in the electronics sector aim at developing new technology. The import of intermediate inputs appears to be negatively associated with in-house R&D. This suggests substitutability between imported intermediaries and R&D activity. In the case of R&D reporting firms, the coefficient of embodied technology and capital intensity turns out to be positive and significant. As it remains, an increase in the import of capital goods promotes in-house R&D of electronic firms. At the same time undertaking R&D activity in a high-tech sector is capital intensive. Hence, firms require capital reserves to engage in innovative activities and remain competitive.

When All Products Are Digital: Complexity and Intangible Value in the Ecosystem of Digitizing Firms

During the last four decades, digital technologies have disrupted many industries. Car control systems have gone from mechanical to digital. Telephones have changed from sound boxes to portable computers. But have the firms that digitized their products and services become more valuable than firms that didn’t? Here we introduce the construct of digital proximity, which considers the interdependent activities of firms linked in an economic network. We then explore how the digitization of products and services affects a company’s Tobin’s q—the ratio of market value over assets—a measure of the intangible value of a firm. Our panel regression methods and robustness tests suggest the positive influence of a firm’s digital proximity on its Tobin’s q. This implies that firms able to come closer to the digital sector have increased their intangible value compared to those that have failed to do so. These findings contribute a new way of measuring digitization and its impact on firm performance that is complementary to traditional measures of information technology (IT) intensity.

The effect of absorptive capacity on the financial performance of Brazilian and Portuguese companies in a low technological intensity sector

The digital transformation has driven a more assertive absorption of external information and knowledge in all economic activities, especially in the low technological intensity sector, where competition has been fierce. In this way, the use of information and knowledge can provide companies with higher performance before its competitors. Thus, this study seeks to verify the effect of absorptive capacity (ACAP) on the financial performance of Brazilian and Portuguese companies that operate in low technological intensity sectors. The study is part of initial research that addresses ACAP in sectors that do not release innovations in the market. A survey was carried out based on validated scales, but adapted to the low technology sector. Then, a new validation of the scales was carried out and a t-test was performed to check if there are differences and regression analysis to answer the hypotheses. The results showed that ACAP has an effect on financial performance, both in the Brazilian and Portuguese context, being higher in Portuguese companies. In addition, it was also shown that the two dimensions of ACAP have different influences on financial performance, when considering the two contexts. It can be concluded that ACAP can be applied in sectors of low technological intensity, as this has an influence over the financial performance of companies.

DETERMINATION OF “WEAK” BY POWER TRANSFORMERS RELIABILITY OF POWER SYSTEMS ACCORDING TO THE RESULTS OF FAILURE RISK ASSESSMENT UNDER EXTERNAL SHORT CIRCUITS

Background. The increase of technological violation intensity and its consequences severity is caused mainly by objectively existing aging and service life depletion of electrical equipment. The power industry liberalization exacerbates the reliable operation problem of the power system and requires identification of power system operation accompanied by the maximum emergency risk with possible cascade accidents development. Therefore, the model development task for assessment of the equipment failure risk based on the diagnostic results of technical condition in particular under short circuit in the external network is relevant today. Objective. The aim of the work is to develop a fuzzy mathematical model for probability assessment of power transformer failure in the presence of a windings defect, short circuit in external network and emergency risk assessment under power transformers out of service. Methods. The fuzzy set theory and fuzzy logic were used for developing a mathematical model of risk assessment of power trans- former failure. The problems of determining the “weak” in terms of power transformers reliability of power systems based on the results of failure risk assessment due to external short circuits were solved by methods of fuzzy logic and probabilistic-statistical simulation of electric power system modes. Results. The necessity of complex simulation of electric power system modes is substantiated for probability assessment of power transformer failure under electrical network disturbances. The simulation of technical condition of power transformer windings was carried out. The short circuit influence on operability level of power transformers of electric power system was investigated. The quantitative indicators of operational risk of electric power system were determined under power transformers out of service. Conclusions. The linguistic mathematical model for estimating the failure probability of power transformer windings in the presence of defect and short circuit in electrical network has been developed to determine the quantitative indicators of emergency risk in power system.

TFP determinants in the manufacturing sector: the case of Ecuadorian firms

Purpose Using a large firm-level data set, this paper examines total factor productivity (TFP) and its determinants in the Ecuadorian manufacturing sector in the period 2007–2018. Design/methodology/approach I analyze the role played by traditional TPF determinants, including internal firm characteristics, international trade activities, financial constraints and competition intensity. I contribute to the literature by presenting quantile regression results. Moreover, I analyze industry patterns, distinguishing between industries according to their technological intensity (following the organisation for economic co-operation and development classification). Findings My results confirm that firm age is positively related to TFP level but negatively related to TFP growth. I also find that being an exporter and an importer at the same time is associated with higher TFP levels and that this effect is higher than when being only an exporter or an importer. Additionally, l find that credit is positively related to TFP levels. Finally, I find that more competition is positively related to productivity in lower quantiles of output. Practical implications The results are the source of tools to propose policy recommendations, which are stated in the present document. Originality/value This paper aims to reopen the debate of firm productivity determinants in a developing country such as Ecuador. The authors use a set of covariates less analyzed in this issue.

Artificial Intelligence and emerging digital technologies in the energy sector

Digitalization is an increasingly important direction of energy innovation moving forward. Nevertheless, which emerging digital technology is more crucial during the energy sector transformation stays underexplored. Using a near-universe of online job postings data collected between 2010 and 2019, we show that among the emerging digital technologies (i.e., Artificial Intelligence, Big data, Internet of Things, Robotics, Blockchain technology, and Cloud computing), Artificial Intelligence is the most widely adopted in the energy sector. We further calculate a systematic measure of the emerging digital technology intensity in job skill requirements and show that Artificial Intelligence proves to be the most valuable in the energy sector, either from the employee’s or the employer’s perspective. Particularly, Artificial Intelligence brings the highest wage premium to the average wage of the adopted energy firm and the local labor market. Meanwhile, Artificial Intelligence contributes the most to energy firms’ performance. Our findings suggest that energy firms should intentionally increase the requirement for Artificial Intelligence in hiring new talents. Our findings also indicate that major energy firms should take the leading role in adopting the emerging digital technologies to enjoy the predominant advantage as early as possible.

The Implementation Of Lean Manufacturing and Industrial Technology 4.0 On Business Performance

The problem of this reasearch has entered the industrial revolution 4.0 (4IR), then strategy implementation need to be done through 4IR road map. Specific aspect which has effect to Industry 4.0 Technology Adoption are technology intensity, strict capital & human resources investment, therefore performances measurement which consider whole organization become more relevant. The purpose of this research was to test moderation effect of Industry 4.0 Technology process-related and product/service-related into the lean manufacturing implementation to business performance. The methodology of this research is using PLS-SEM approach with SMART-PLS software. Measurement of variable datas were obtained through 1 -5 Likert scale survey which was distributed to PT.XYZ employee. The finding of this research show those Industry 4.0 Technology process-related and product/servicerelated were not moderating implementation of lean manufacturing to business performance in PT. XYZ. The limitation in this study were only for PT. XYZ operational scope and were using data from Aug – Nov 2020. Conclusion of this research can not be generalized to other research object or to describe PT. XYZ in another time.

The Implementation Of Lean Manufacturing and Industrial Technology 4.0 On Business Performance

The problem of this reasearch has entered the industrial revolution 4.0 (4IR), then strategy implementation need to be done through 4IR road map. Specific aspect which has effect to Industry 4.0 Technology Adoption are technology intensity, strict capital & human resources investment, therefore performances measurement which consider whole organization become more relevant. The purpose of this research was to test moderation effect of Industry 4.0 Technology process-related and product/service-related into the lean manufacturing implementation to business performance. The methodology of this research is using PLS-SEM approach with SMART-PLS software. Measurement of variable datas were obtained through 1-5 Likert scale survey which was distributed to PT.XYZ employee. The finding of this research show those Industry 4.0 Technology process-related and product/service-related were not moderating implementation of lean manufacturing to business performance in PT. XYZ. The limitation in this study were only for PT. XYZ operational scope and were using data from Aug – Nov 2020. Conclusion of this research can not be generalized to other research object or to describe PT. XYZ in another time.

The impact of digitalization on export of high technology products: A panel data approach*

ABSTRACT This study argues that easy access to new information using information and communication technologies (ICT) will bring both more technological development and information about new markets, together catalyzing high technology (high-tech) production. This paper aims to show the impact of digitalization on the technology intensity of export. We use the ICT Development Index (IDI) as a proxy for the digitalization level of a country and the value of the exports of high-tech products as a proxy for the technology intensity of export. IDI comprises three components, including ICT access, usage and skills. These statistics reflect the ICT development of the country. To analyze the relevant relationship, we use panel data on countries between 2007 and 2017. The system-generalized method of moments (system GMM) dynamic panel estimator is utilized in the estimations, permitting us to control for potential endogeneity problems between the main dependent and independent variables. Results show that in developing countries, IDI has a significant effect on the export of high-tech products. In addition, the significance of the main components of IDI varies. These results suggest that developing countries striving to increase the export of high-tech products should invest more in ICT.

Do innovations improve firm performance in the Indian manufacturing sector? A mediation and synergy effect analysis

PurposeThis study examines the effects of both technological and non-technological innovations on the overall performance of Indian manufacturing firms, and identifies the mediation and synergy effects in the relationship between innovation and performance.Design/methodology/approachThe study applies the partial least squares structural equation modelling (PLS-SEM) technique using Smart PLS3 on a combined data set from the World Bank Enterprise Survey and the follow-up Innovation Survey for India in 2014. Different newly developed statistical tests [PLS predict, importance performance map analysis (IPMA), multi-group analysis (MGA) and confirmatory tetrad analysis PLS (CTA-PLS)] have been used to check the robustness of the empirical results.FindingsThe results of the study suggest that technological innovations (product and process innovation) significantly affect a firm's overall performance, and that innovation strategy significantly mediates the effects, whereas the effects of non-technological innovations (marketing and organisational innovation) on a firm's performance are fully mediated by innovative performance. IPMA results suggest that technological innovations and their respective strategies are very important in improving a firm's performance, whereas non-technological innovations have great importance for increasing the innovative performance of the firms. The MGA results suggest that there are several distinctions in the path relationship and mediation effect among a firm's segment based on technology intensity and firm size. The study results do not find that innovation types have significant synergy effects on a firm's performance.Originality/valueThe study results suggest that managers should focus on technological innovations, along with their respective strategies to improve the overall performance of a firm, whereas non-technological innovations should be given priority for increasing the firm's innovative performance. Moreover, while making policy regarding innovation the people concerned should bear in mind which segment of the firms they are dealing with, as the effects differ across a firm's technology-intensity and size.

Simple Rules: An Exploration of Contextual Contingencies on Competitive Performance

We investigate the performance efficacy of simple rules under four theoretically anticipated contextual contingencies: environmental uncertainty, technology intensity, firm age, and firm size. Our theorizing is based on the efficiency-flexibility balance that underpins simple rule logic as well as notions from contingency theory. We use a unique survey dataset of 254 US-based executives to test our hypotheses. We find that simple rule usage is broadly beneficial to competitive performance. Counterintuitively, we find that environmental uncertainty does not moderate the simple rule usage – competitive performance relationship. We find that simple rule usage is associated with competitive performance in firms with high technological intensity but does not offer differential benefit based on firm age or size. Post-hoc analysis indicates that managers tend to limit usage of simple rules in uncertain environments (mismatching with performance indications) and promote usage in firms with high technological intensity and large size. Broadly, we contribute to the simple rules literature by highlighting the boundary conditions under which simple rules are effective for competitive performance.

The Changing Nature of Global Product Integration

We revisit the topic of global integration and its determinants by replicating Kobrin’s (1991) seminal study. We gathered the same cross-sectional data used by Kobrin, which we then extended across time and disaggregated into three subcomponent parts. Similar to Kobrin, we find that parent firm technology intensity drives global integration, but our subcomponent analysis reveals that technology intensity drives parent to affiliate integration, while other factors (including increasing foreign country knowledge stocks and less parent offshore outsourcing activities) are more important in driving affiliate-led integration with other affiliate and parent operations. Finally, we make available our industry level data on global product integration, which we call the Global Product Integration Index (GPII).