How to survive and compete: the impact of information asymmetry on productivity

Jin, Meibing; Tian, Huiting; Kumbhakar, Subal C.

doi:10.1007/s11123-019-00562-9

Cited by 9 publications

(5 citation statements)

References 55 publications

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“…The findings indicate that FDI benefits may be gained mainly by firms with sizable absorptive capacity (often high-tech or large), as they can capitalize on the presence of MNCs to increase productivity and lower inefficiency. This finding is in line with Jin et al [17].…”

Section: Technology Adoption Effectsupporting

confidence: 93%

“…According to Jin et al [17], FDI in LT sectors may harm domestic firms' production through demonstration effect. Our findings on demonstration effects (HSpill) for lowtech are similar to those of Suyanto et al [11], who discovered that sectors such as food and beverages and textiles (low-tech) gained technical efficiency but not productivity spillovers as a result of increased foreign presence.…”

Section: Demonstration Effect (Hspill)mentioning

confidence: 99%

“…Moreover, a few studies have accommodated the heterogeneity of the firms, such as technological groups [11,[13][14][15][16]. Jin et al [17] noted that high-technology-intensive firms might benefit from FDI spillovers, whereas lower-tech firms may be negatively affected. In these regards, a study of FDI spillover effects that captures both specific channels and technological groups in affecting efficiency and productivity is essential to provide evidence about whether the FDI-specific channels perform differently on technological groups.…”

Section: Introductionmentioning

confidence: 99%

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The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

Sugiharti

Yasin

Purwono

et al. 2022

Journal of Open Innovation: Technology, Market, and Complexity

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In this study, we investigated the effects of foreign direct investment (FDI) spillovers on firm production and technical efficiency in Indonesia’s manufacturing sector from 2010 to 2015. We scrutinized three different channels of horizontal spillover, namely, demonstration, technology adoption, and competition channels. We also captured the heterogeneous effect of firms by categorizing them based on their technological intensity (low, medium, or high). Using time-varying stochastic production frontier analysis, we found that manufacturing firms in each technological group benefit from FDI, either from productivity improvement or technical efficiency improvement. High-technology firms mainly benefit from FDI due to their high technological absorption capability. Meanwhile, medium-high and medium-low tech firms increase productivity through the demonstration effect and the technology adoption channel, despite underperforming in technical efficiency. Finally, low-tech firms, which primarily employ unskilled workers, suffer from large inefficiency. We found that increased FDI, combined with improvements in technology absorption capacity, can help revitalize the productivity of low-tech firms. FDI, firm size, and access to foreign inputs all support production effects but have no direct positive impact on firms’ technical efficiency. The results of this study suggest that the government should ensure that domestic firms can absorb the technical capability of a foreign presence. Open innovation can help strengthen foreign–domestic linkages to contribute to growth through the transfer of knowledge, skills, and technologies.

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Section: Technology Adoption Effectsupporting

confidence: 93%

Section: Demonstration Effect (Hspill)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

Sugiharti

Yasin

Purwono

et al. 2022

Journal of Open Innovation: Technology, Market, and Complexity

View full text Add to dashboard Cite

show abstract

“…The rapid inflow of FDI is widely believed to benefit Indonesia in fresh capital, new employment, source of funds for government spending, and source of funds for savings-investment gaps. Another benefit at the micro-level, which is equally important, is that FDI is, in fact benefiting local firms’ productivity through knowledge transfer in the forms of advanced technology, managerial expertise, and knowledge of scale-setting of production ( Jin et al., 2020 ; Khalifah et al., 2015 ; Malik, 2015 ). Such benefits increase the productivity of local firms, as local firms can imitate the technology possessed by FDI and adapt managerial knowledge through the recruitment of managers whom multinational corporations have trained ( Drahokoupil and Fabo, 2020 ; Kim, 2016 ; Newman et al., 2015 ).…”

Section: Introductionmentioning

confidence: 99%

Clustering and firm productivity spillovers in Indonesian manufacturing

Suyanto

Sugiarti

Setyaningrum

2021

Heliyon

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Earlier studies on foreign direct investment (FDI) and firm productivity have mainly focused on the general impacts of FDI on local firms' productivity. This current research extends the existing literature by examining the heterogeneity issue in firm productivity by clustering Indonesian manufacturing firms into nine industrial groups. Two estimation methods are applied: stochastic frontier analysis and panel data analysis, which emerge three key findings. Firstly, the impacts of FDI vary among firm clusters, with six out of nine clusters are able to grasp the positive benefits of FDI, whereas three out of nine clusters experience negative productivity effects. Secondly, the labor-intensive clusters tend to receive negative productivity effects, whereas the capital-intensives clusters receive positive productivity impacts. Thirdly, the sources of FDI-productivity vary across clusters, with scaleefficiency as the most dominant source and technology advancement as the second dominant source. These findings justify the importance of estimating firms in homogenous industrial groups to gain precision findings of productivity benefits.

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“…The general framework for the ultimate analysis of the stochastic frontier was provided by Kumbhakar and Lovell (2000); before that, Battese and Coelli (1995) had attempted to apply the analysis of the stochastic frontier to the case of panel data. More recently, this production function has been applied by Jin et al (2020), using the following formulation:…”

Section: 2-study Designmentioning

confidence: 99%

Renewable energy for productive manufacturing firms in Cameroon: effect of renewable energy on the productivity of manufacturing firms

KOUMOU

2022

Preprint

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The objective of this paper is to investigate the effect of renewable energy on the productivity of manufacturing firms in Cameroon. The data used comes from the annual enterprise surveys (EAE) of the National Institute of Statistics (INS) for the 2012–2019 editions. The method used is the two-stage stochastic frontier approach. The results show that renewable energy positively affects the productivity growth of firms. This effect is evaluated at 14.70% for 1% of renewable energy consumed. Despite this positive effect, the productivity growth of these firms remains low over the whole period 21.16%.

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How to survive and compete: the impact of information asymmetry on productivity

Cited by 9 publications

References 55 publications

The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

Clustering and firm productivity spillovers in Indonesian manufacturing

Renewable energy for productive manufacturing firms in Cameroon: effect of renewable energy on the productivity of manufacturing firms

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