|
on Small Business Management |
|
Issue of 2013‒06‒16
seventeen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Coad, Alex; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes |
| Abstract: | This paper explores the relationship between firm growth, innovation and firm age. We hypothesize that young firms undertake riskier innovation activities and are more oriented towards employment growth than towards harvesting returns in the form of sales growth. Using an extensive sample of Community Innovation Survey for the period 2004-2010, we apply quantile regressions and a Heckman sample selection technique to study the impact of R&D activities on firm growth according to firm age. Our results show that R&D intensity is positively associated with firm growth. However, for young firms R&D shows an increasing influence across the quantiles, while for old firms R&D shows a stable or perhaps decreasing effect over the quantiles. Firm age shows a significant negative impact among young firms, while for the sample of old firms the impact of firm age becomes non-significant. Our Heckman estimations show the evolution of the impact of the R&D on firm growth confirming a significant impact on sales and productivity growth, while the impact is negligible for employment growth. Keywords: firm age, firm growth, innovation, quantile regression. JEL CODES: L25, L20 |
| Keywords: | Empreses -- Creixement, Organització industrial, Innovacions tecnològiques, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211886&r=sbm |
| By: | McKelvie, Alexander (Syracuse University); Brattström, Anna (Stockholm School of Economics); Wennberg, Karl (Ratio) |
| Abstract: | This paper seeks to untangle the relationship between new firm’s innovative activities and subsequent growth. We theorize about the inter-related roles of managerial growth willingness, inputs and outputs of innovative activities, and their subsequent link to sales growth. Investigating a longitudinal sample of 282 new Swedish firms reveals a complex set of mediating relationships that, when combined, help explain how innovation affects growth. First, we find growth willingness has an important relationship with innovative inputs such as R&D and market knowledge competence. Second, these inputs affect important innovative outputs such as new product development and the percentage of sales from new products. Third, these outputs directly affect growth – whereas the innovative inputs such as R&D do not have a direct impact. Taken together, our paper highlights the joint importance of managerial attitudes and strategic choices that help to shed new light on the effect of innovation on new firm growth. Implications for research and public policy are discussed. |
| Keywords: | New Firm Growth; Innovation; RD; Growth Willingness |
| JEL: | L22 L26 M13 |
| Date: | 2013–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0206&r=sbm |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper studies the influence of metropolitan externalities on productivity for different types of long run R&D engagement based on information from the Community Innovation Survey. We apply a dynamic general method of moments model to a panel of manufacturing and service firms with different locations in Sweden, classified as a metropolitan region, the largest metropolitan region, a metropolitan city, the largest metropolitan city and a non-metropolitan area. This analysis generates three distinct results. First, the productivity premium associated with persistent R&D is close to 8 percent in non-metro locations and about 14 percent in the largest city. Second, a firm without any R&D engagement does not benefit at all from the external milieu in metro areas. Third, no productivity premium is associated with occasional R&D effort regardless of the firm’s location. |
| Keywords: | R&D; innovation strategy; productivity; metropolitan; externalities |
| JEL: | C23 O31 O32 |
| Date: | 2013–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0313&r=sbm |
| By: | Michele Benvenuti (Banca d'Italia); Luca Casolaro (Banca d'Italia); Elena Gennari (Banca d'Italia) |
| Keywords: | innovation, R&D, patents |
| JEL: | O30 O57 L20 I25 D83 D A D D |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_168_13&r=sbm |
| By: | Segarra Blasco, Agustí, 1958-; García Quevedo, José; Teruel, Mercedes |
| Abstract: | Theoretical and empirical approaches have stressed the existence of financial constraints in innovative activities of firms. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. In the empirical analysis carried out for a panel data of potential innovative Spanish firms for the period 2004-2010, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage and that low-technological manufacturing and non-KIS service sectors are more sensitive to financial constraints. Keywords: barriers to innovation, failure of innovation projects, financial constraints JEL Classifications: O31, D21 |
| Keywords: | Innovacions tecnològiques, Conducta organitzacional, 33 - Economia, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211807&r=sbm |
| By: | Marcel van den Berg |
| Abstract: | Constructing a comprehensive data set covering Dutch firms over the years 2002-2008 I am the first to investigate the relationship between trade status, firm size and firm-level productivity in the Netherlands, thereby focusing particularly on small and medium sized enterprises (SMEs). The empirical evidence can be summarized in four stylized facts. The productivity ranking by trade status of Dutch manufacturing firms in increasing order of productivity is: non-traders, importers, exporters and two-way traders. Firm size and being controlled by a company located abroad are positively associated with firm-level productivity. The results point in the direction of self-selection of more productive manufacturing firms into importing, particularly for firms that did not trade altogether prior to the import start and for build-up periods of two and three years towards the import start. I do not find evidence that firms become more productive after an import start because of learning effects. I find considerable heterogeneity in the productivity premia of trade along the firm size distribution. The results suggest that exporting is more complex than sourcing inputs internationally for small firms relative to larger firms. |
| Keywords: | Micro data, firm heterogeneity, imports, exports, productivity, the Netherlands |
| JEL: | D22 F14 F23 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1307&r=sbm |
| By: | Minarelli, F.; Raggi, M.; Viaggi, D. |
| Abstract: | Nowadays innovation represents a strategy to face the economic crisis affecting many sectors globally. It is believed that innovation is one of the most significant factors for the enhancement of competitiveness. Innovation is identified with the creation of value by companies, and networking is believed to be a key way to contribute to the better value creation. In particular networking is object of increasing interest not only by academics but also by political institutions, firstly European Union, due to the beliefs that it can foster innovation among SMEs and hence enhances competitiveness. The development of innovation may requires R&D support from outside and the collaboration with other organizations. It is hence recognized the essential role of networking for the innovation and the participation of SMEs in networks as pivotal strategy. European economy is characterized by SMEs and particularly the agri-food sector. This study carries out an investigation, based on a web survey of Italian food SMEs, presenting an overview of Italian food SMEs engaged in collaborations for innovation purposes. Especially, the examination focuses on the identification of types of organizations mainly involved in collaborations for the resources acquisition and structural factors characterizing such SMEs. Data collection of Italian food SMEs is accomplished by standardized questionnaires designed to be compiled on line in anonymous way. Findings show higher frequency of SMEs involved in collaboration with suppliers for innovation purposes. However, in term of realized innovation, SMEs collaborating with universities demonstrate higher frequency of enhanced innovation. This work presents an additional value in term of comprehension not only for their impact on the nature of the network but also for the conceptualization of proper network able to encourage firm’s participation. Additionally, it must be point out that results from such studies cannot be generalized and extended to outside SMEs nation, hence factors involved in other SMEs cultures need to be carefully investigated at each country’s level. |
| Keywords: | network, innovation, SMEs, Industrial Organization, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, O31, O32, |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aiea13:149934&r=sbm |
| By: | Sasan Bakhtiari (The University of New South Wales); Robert Breunig (Australian National University) |
| Abstract: | We study the implications of vertical integration on innovation performance using firm-level data on Australian manufacturing. We use the data to distinguish between low-cost-oriented and innovation-oriented outsourcing. Outsourcing without innovation lowers costs at the expense of damaging the future chances of innovation, while innovation-oriented outsourcing leads to higher costs but increases the likelihood of future innovation. For firms that innovate and outsource, the probability of future innovation is 54 per cent compared to 15 per cent for those who outsource without innovating. Comparing across firms that innovate, simultaneously outsourcing increases the probability of future innovation by 4 per cent. Innovation-oriented outsourcing is accompanied by firms shifting focus to research and marketing of new products. Our results offer strong support that outsourcing may be used not just as a cost-cutting strategy, but as part of comprehensive firm strategy to innovate and improve. |
| Keywords: | Outsourcing, Innovation, Firm Performance, Business Strategy. |
| JEL: | D22 L21 L24 L6 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2012-35&r=sbm |
| By: | Delmar, Frédéric (Sten K. Johnson Centre for Entrepreneurship School of Economics and Management); McKelvie, Alexander (Syracuse University); Wennberg, Karl (Ratio) |
| Abstract: | The performance of new firms is important for economic development but research has produced limited knowledge about the key relationships among growth, profitability, and survival for new firms. Based on evolutionary theory, we develop a model about how new firms resolve uncertainty about their ability to prosper in a market by monitoring changes in profitability. Our model predicts selection pressures to weed out underperforming firms and learning to allow survivors to improve performance and grow. We test our theory using a unique panel of knowledge-intensive new firms in Sweden. We find strong support for the notion that profitability enhances both survival and growth, and growth helps profitability but has a negative effect on survival. Implications are discussed. |
| Keywords: | Entrepreneurship; New Firms |
| JEL: | L22 L26 M13 |
| Date: | 2013–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0205&r=sbm |
| By: | Autio, Erkko (Imperial College London Business School); Pathak, Saurav (Michigan Tech University); Wennberg, Karl (Ratio) |
| Abstract: | Although national culture is an important regulator of entrepreneurship, there is a dearth of studies that (i) explore the effects of national cultural practices on entrepreneurial behaviors by individuals; (ii) use appropriate multi-level research designs; (iii) consider the effects of culture on different entrepreneurial behaviors such as entry and post-entry growth aspirations. We combined Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effec-tiveness (GLOBE) data from 42 countries for 2005 – 2008 to address these gaps using a multi-level design. We found societal institutional collectivism practices negatively associated with entrepreneur-ial entry but positively associated with entrepreneurial growth aspirations. Uncertainty avoidance practices were negatively associated with entry but not with growth aspirations, while performance orientation practices were positively associated with entry. This highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations, and demonstratesthe value of multi-level techniques in analyzing the effect of culture on entrepreneurship. |
| Keywords: | Culture; Entrepreneurship; Multi-level |
| JEL: | F55 L26 M16 |
| Date: | 2013–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0207&r=sbm |
| By: | Sasan Bakhtiari (School of Economics, the University of New South Wales) |
| Abstract: | This paper sheds new light on forces shaping the outsourcing decision by linking the decision to a certain form of non-linearity in overhead costs which divides a firm’s operation into small and large regimes. Marginal firms that find evolution into a large business too costly outsource in a bid to grow out of bounds instead of expanding internally. This process leads to a lumpy relationship between size and outsourcing, in which outsourcing is only practiced by narrow set of firms in the middle of the distribution. The theoretical implication for size distribution is a bunching of firms at the size where the transition to large regime takes place with a missing middle immediately following it. A panel of Australian small and medium-size firms is used to put the predictions to test with mostly supportive results. The findings open a new avenue to rethink growth and job creation amongst small businesses. |
| Keywords: | Small Business, Outsourcing, Management Organization, Size Distribution. |
| JEL: | C38 D2 L24 L6 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:swe:wpaper:2013-07&r=sbm |
| By: | Bradley, Samantha R. (University of North Carolina at Greensboro, Department of Economics); Hayter, Christopher S. (New York Academy of Sciences); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper argues that a linear model of technology transfer is no longer sufficient, or perhaps even no longer relevant, to account for the nuances and complexities of the technology transfer process that characterizes the ongoing commercialization activities of universities. Shortcomings of the traditional linear model of technology transfer include inaccuracies—such as its strict linearity and oversimplification of the process, composition, a one-size-fits-all approach, and an overemphasis on patents—and inadequacies—such as failing to account for informal mechanisms of technology transfer, failing to acknowledge the impact of organizational culture, and failing to represent university reward systems within the model. As such, alternative views of technology transfer are presented here that better capture the progression of the university towards an entrepreneurial and dynamic institution, and that advance the body of knowledge about this important academic endeavor. |
| Keywords: | Technology transfer; Entrepreneurial university; Intellectual property; Patents; Innovation; Commercialization |
| JEL: | L26 O31 O34 |
| Date: | 2013–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_010&r=sbm |
| By: | Albiol, Judit |
| Abstract: | Using Global Entrepreneurship Monitor data for 41 countries this study investigates the impact of business exit on entrepreneurial activity at the country level. The paper distinguishes between two types of entrepreneurial activity according with the motive to start a new business: entrepreneurs driven by opportunity and necessity motives. The findings indicate that exits have a positive impact on future levels of entrepreneurial activity in a country. For each exit in a given year, a larger proportion of entrepreneurial activity the following year. Moreover, this e ffect turns out to be higher for opportunity entrepreneurs. The findings indicate that both types of entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors we find a di fferential impact on the entrepreneurship. The results show some important implications given that business exit may be overcome when there is a necessity motivation. This has important implications for both researchers and policy makers. JEL codes: L26. Keywords: Entrepreneurship, business exit, social values |
| Keywords: | Emprenedoria, Èxit en els negocis, Empreses -- Aspectes socials, 33 - Economia, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211754&r=sbm |
| By: | Dornbusch, Friedrich; Brenner, Thomas |
| Abstract: | -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r62013&r=sbm |
| By: | Aschhoff, Birgit; Baier, Elisabeth; Crass, Dirk; Hud, Martin; Hünermund, Paul; Köhler, Christian; Peters, Bettina; Rammer, Christian; Schricke, Esther; Schubert, Torben; Schwiebacher, Franz |
| Abstract: | Innovation is regarded as a key driver of productivity and market growth and thus has a great potential for increasing wealth. Surveying innovation activities of firms is an important contribution to a better understanding of the process of innovation and how policy may intervene to maximise the social returns of private investment into innovation. Over the past three decades, research has developed a detailed methodology to collect and analyse innovation activities at the firm level. The Oslo Manual, published by OECD and Eurostat (2005) is one important outcome of these efforts. In 1993 both organisations have started a joint initiative, known as the Community Innovation Survey (CIS), to collect firm level data on innovation across countries in concord (with each other). The German contribution to this activity is the so-called Mannheim Innovation Panel (MIP), an annual survey implemented with the first CIS wave in 1993. The MIP fully applies the methodological recommendations laid down in the Oslo Manual. It is designed as a panel survey, i.e. the same gross sample of firms is surveyed each year, with a biannual refreshment of the sample. The MIP is commissioned by the German Federal Ministry of Education and Research (BMBF) and conducted by the Centre for European Economic Research (ZEW) in cooperation with the Fraunhofer Institute Systems and Innovation Research (ISI) and the Institute for Applied Social Science (infas). (...) -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdok:1301&r=sbm |
| By: | Pérez, Jessica Helen; Iranzo Sancho, Susana |
| Abstract: | This paper examines empirically the determinants of decentralization of decision- making in the firm for small and medium-sized enterprises (SMEs) that tend to be highly centralized. By decentralization of decisions we mean the delegation of decision rights from the owner or manager to the plant supervisor or even to floor workers. Our findings show that the allocation of authority to basic workers or a team of workers depends on firm characteristics such as firm size, the use of internal networks or the number of workplaces, and workers characteristics, in particular, the composition of the laborforce in terms of education and seniority and whether or not workers receive pay incentives. External factors such as the intensity of competition and the firm s export intensity are also important determinants of the allocation of authority. |
| Keywords: | Empreses petites i mitjanes, Empreses -- Presa de decisions, 33 - Economia, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/211755&r=sbm |
| By: | Dmitri Boreiko (Free University of Bolzanoâ€Bozen, School of Economics and Management.); Maurizio Murgia (Free University of Bolzanoâ€Bozen, School of Economics and Management.) |
| Abstract: | This paper tests the empirical validity of theoretical predictions on corporate spin-offs motivations and ex-post performance. Using a unique data set of completed spinoffs in twelve European countries we show that spin-off decisions are frequently triggered by firm’s governance changes, such as the appointment of a new CEO or a takeover threat. Post-transaction long-run stock returns and operating performance are observed for spin-off firms only, and mostly for internally-grown business units and parent-related (non-focusing) subsidiaries. We find no evidence that post-spin-off mergers of either parents or subsidiaries enhance long-term performance, or that focus-increasing spin-offs lead to efficiency improvements. |
| Keywords: | Spin-offs; Long-run performance; European corporate finance. |
| JEL: | G14 G32 G34 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:bzn:wpaper:bemps05&r=sbm |