IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2018i4p1232-1245.html
   My bibliography  Save this article

Assessment of Small Industry Resistance to the Hypercompetition Threats in Regions

Author

Listed:
  • Elena Vaisman

    (South Ural state University, High School Of Economics and Management)

  • Mariya Podshivalova

Abstract

Despite the relative «youth» of hypercompetition theory, a lot of research has been carried out currently. But most of them study hypercompetition threats from the perspective of transnational companies. We estimate that enterprises of all sizes, including small ones, are exposed to this threat, because hypercompetition reduces the life cycle of competitive advantage, and thus constantly changes the positions of market players. The study determines to what extent the hypercompetition drivers are manifested in the Russian economy, in which industries and regions the small industries are subject to its threats the most. We have classified small enterprises of manufacturing industries to «small industry» as prevailing in small industrial structure. The paper revealed that the Russian economy has already shown the driving forces of hypercompetition and sectoral and regional differentiation. This conclusion is based on the analysis of changes in conditions and rules of competition. Therefore, the challenge was to develop a research method to assess small industry resistance to hypercompetition threats in the regions. The method has allowed to assess 47 Russian regions according to three criteria: the degree of hypercompetition threat; potential growth and importance of small industry for the regional development; open innovations availability for small industries as an effective method for increasing hypercompetition resistance. The integrated results of these assessments made it possible to identify 11 regions: the Republic of Mordovia, Chuvash Republic, Sverdlovsk region, Tula region, Krasnoyarsk region, Chelyabinsk region, Vladimir region, Lipetsk region, Penza region, Republic of Mari El, Ryazan region. These are the areas where, on the one hand, threats of hypercompetition for primary branches of the small industry are rather big. However, on the other hand, small industry has a high development potential even in hypercompetition through open innovation.

Suggested Citation

  • Elena Vaisman & Mariya Podshivalova, 2018. "Assessment of Small Industry Resistance to the Hypercompetition Threats in Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1232-1245.
    • Handle: RePEc:ura:ecregj:v:1:y:2018:i:4:p:1232-1245
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2018/December_2018/ERDecember2018_1232_1245.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leiponen, Aija, 2005. "Skills and innovation," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 303-323, June.
    2. Irene Brambilla & Daniel Lederman & Guido Porto, 2012. "Exports, Export Destinations, and Skills," American Economic Review, American Economic Association, vol. 102(7), pages 3406-3438, December.
    3. Rachel Griffith & Stephen Redding & John Van Reenen, 2003. "R&D and Absorptive Capacity: Theory and Empirical Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(1), pages 99-118, March.
    4. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    5. Gary A Knight & Daekwan Kim, 2009. "International business competence and the contemporary firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(2), pages 255-273, February.
    6. Fritsch, Michael & Franke, Grit, 2004. "Innovation, regional knowledge spillovers and R&D cooperation," Research Policy, Elsevier, vol. 33(2), pages 245-255, March.
    7. Herrmann, Andrea M. & Peine, Alexander, 2011. "When 'national innovation system' meet 'varieties of capitalism' arguments on labour qualifications: On the skill types and scientific knowledge needed for radical and incremental product innovations," Research Policy, Elsevier, vol. 40(5), pages 687-701, June.
    8. Elena Golovko & Giovanni Valentini, 2011. "Exploring the complementarity between innovation and export for SMEs’ growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(3), pages 362-380, April.
    9. Anna Comacchio & Sara Bonesso & Claudio Pizzi, 2012. "Boundary spanning between industry and university: the role of Technology Transfer Centres," The Journal of Technology Transfer, Springer, vol. 37(6), pages 943-966, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elena D. Vaisman & Maria V. Podshivalova & Andrew Adewale Alola, 2022. "Examining the interaction of sustainable innovation activity and the life cycle of small high‐tech enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1018-1029, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephen Roper & James H. Love, 2018. "Knowledge context, learning and innovation: an integrating framework," Industry and Innovation, Taylor & Francis Journals, vol. 25(4), pages 339-364, April.
    2. Ballestar, María Teresa & Díaz-Chao, Ángel & Sainz, Jorge & Torrent-Sellens, Joan, 2020. "Knowledge, robots and productivity in SMEs: Explaining the second digital wave," Journal of Business Research, Elsevier, vol. 108(C), pages 119-131.
    3. Bourke, Jane & Roper, Stephen, 2016. "AMT adoption and innovation: An investigation of dynamic and complementary effects," Technovation, Elsevier, vol. 55, pages 42-55.
    4. Stephen Roper & Nola Hewitt-Dundas, 2017. "Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?," Small Business Economics, Springer, vol. 49(3), pages 559-577, October.
    5. James Love & Stephen Roper, 2009. "Organizing the Innovation Process: Complementarities in Innovation Networking," Industry and Innovation, Taylor & Francis Journals, vol. 16(3), pages 273-290.
    6. Roper, Stephen & Hewitt-Dundas, Nola, 2015. "Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data," Research Policy, Elsevier, vol. 44(7), pages 1327-1340.
    7. Hewitt-Dundas, Nola & Gkypali, Areti & Roper, Stephen, 2019. "Does learning from prior collaboration help firms to overcome the ‘two-worlds’ paradox in university-business collaboration?," Research Policy, Elsevier, vol. 48(5), pages 1310-1322.
    8. Bourke, Jane & Roper, Stephen, 2017. "Innovation, quality management and learning: Short-term and longer-term effects," Research Policy, Elsevier, vol. 46(8), pages 1505-1518.
    9. Bourke, Jane & Roper, Stephen & Love, James H., 2020. "Innovation in legal services: The practices that influence ideation and codification activities," Journal of Business Research, Elsevier, vol. 109(C), pages 132-147.
    10. Love, James H. & Roper, Stephen & Bryson, John R., 2011. "Openness, knowledge, innovation and growth in UK business services," Research Policy, Elsevier, vol. 40(10), pages 1438-1452.
    11. Roper, Stephen & Love, James H. & Bonner, Karen, 2017. "Firms’ knowledge search and local knowledge externalities in innovation performance," Research Policy, Elsevier, vol. 46(1), pages 43-56.
    12. Stephen Roper & James H Love & Priit Vahter, 2012. "The Value Of Design Strategies For New Product Development: Some Econometric Evidence," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 85, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    13. Aquilante, Tommaso & Vendrell-Herrero, Ferran, 2021. "Bundling and exporting: Evidence from German SMEs," Journal of Business Research, Elsevier, vol. 132(C), pages 32-44.
    14. Love, James H. & Roper, Stephen & Vahter, Priit, 2014. "Dynamic complementarities in innovation strategies," Research Policy, Elsevier, vol. 43(10), pages 1774-1784.
    15. Halima Jibril & Stephen Roper, 2022. "Of chickens and eggs: Exporting, innovation novelty and productivity," Working Papers 027, The Productivity Institute.
    16. Doran, Justin, 2012. "Are different forms of innovation complements or substitutes?," MPRA Paper 44580, University Library of Munich, Germany.
    17. Gérard Ballot & Fathi Fakhfakh & Fabrice Galia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," Working Papers halshs-00812141, HAL.
    18. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).
    19. Bagheri, Mahshid & Mitchelmore, Siwan & Bamiatzi, Vassiliki & Nikolopoulos, Konstantinos, 2019. "Internationalization Orientation in SMEs: The Mediating Role of Technological Innovation," Journal of International Management, Elsevier, vol. 25(1), pages 121-139.
    20. Lauri Haapanen & Pia Hurmelinna-Laukkanen & Jan Hermes, 2018. "FIRM FUNCTIONS AND THE NATURE OF COMPETITIVE ADVANTAGE IN INTERNATIONALIZING SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-30, April.

    More about this item

    Keywords

    small industry; small industrial enterprises; driving forces of hypercompetition; hypercompetition threats; hypercompetition; open innovations; small business; small entrepreneurs; innovation activities; survival strategy;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2018:i:4:p:1232-1245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.