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on Small Business Management |
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Issue of 2021‒04‒12
thirteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Tavassoli, Sam (RMIT University); Karlsson, Charlie (Jönköping International Business School) |
| Abstract: | In this paper we analyze how the location of firms influences their innovation outcomes, particularly the complexity of the outcomes. Using three waves of the Community Innovation Survey in Sweden for a balanced panel of firms from 2006 to 2012, we identified a range of innovation outcome categories, i.e. simple and complex (low-, medium-, highly-complex) innovation outcomes. The backbone of such categorization is based on how firms introduce a combination of Schumpeterian types of innovations (i.e. process, product, marketing, and organizational). Then we consider three regional characteristics that may affect the innovation outcomes of firms, i.e. (i) qualified labor market thickness, (ii) knowledge-intensive services thickness, and (iii) knowledge spillovers extent. We find that regional characteristics do not affect firms’ innovation outcomes in terms of their degree of complexity ubiquitously. They are only positively associated with those firms that introduce the most complex innovation outcomes. For firms with less complex innovation outcomes, regional factors seem not to play a pivotal role. For these innovators, internal resources as well as formal collaboration with external partners have a significant role. |
| Keywords: | innovation outcome; location; agglomeration economies; knowledge spillovers; Community Innovation Survey |
| JEL: | D22 L20 O31 O32 |
| Date: | 2021–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2021_001&r=all |
| By: | Tavassoli, Sam (RMIT University); Obchonka, Martin (Australian Center for Entrepreneurship Research); Audretsch, David B. (Indiana University) |
| Abstract: | Impactful, growth-oriented entrepreneurship is a major research and policy focus. Building on arguments put forward by Jane Jacobs more than 50 years ago, we propose that local knowledge spillovers in a city are enhanced by human agency in that city (e.g. local psychological openness). This effect is critically amplified by the catalyst function of a favorable structural city environment that not only connects these agentic people (via urban density), but also facilitates the production and flow of new knowledge for these connected agentic people (via a diverse industry mix). This three-way interaction effect was confirmed in our empirical investigation of quality entrepreneurship across the MSAs (cities) in the US, using a large-scale dataset of the psychological profiles of millions of people. Local openness shows a robust positive effect on the level of quality entrepreneurship. This effect is further strengthened by a favorable structural city environment (i.e. high density and diversity) by up to 35%. Reviving Jacobs’ people focus, the results indicate that the best performing cities in terms of knowledge spillovers and economic performance are those that are not only home to, and attract, agentic people, but also empower these people by means of a physical and industrial city landscape that enables them to act in more innovative and entrepreneurial ways, as envisioned by Jacobs. We discuss the policy implications of our findings and an agenda for future research. |
| Keywords: | Entrepreneurship; Cities; Jacobs externalities; Knowledge Spillovers; Diversity; Density; Personality traits; Openness; Geographical psychology |
| JEL: | D83 D91 L26 O18 |
| Date: | 2021–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2021_002&r=all |
| By: | Schubert, Torben (CIRCLE, Lund University) |
| Abstract: | The effects of establishing foreign-based subsidiaries on firm performance have long been debated, where empirical evidence hints at gains in terms of costs reductions, productivity or growth. Yet, little is known about the effects on innovative capabilities at the home base. Using a matched-employer-employee panel dataset of the Swedish Community Innovation Surveys (CIS) between 2008 and 2014, we estimate whether the employee share at subsidiaries abroad affects product innovation performance at home. Our results show the effects are positive on average. However, there is also evidence of detrimental effects of having employees abroad on innovation. In particular, for excessive shares of employees at foreign location, we provide evidence of an inverted u-shape between the probability to introduce product innovations and the share of foreign employment. Moreover, we show that the benefits of foreign employment are larger for firms with a more nationally diverse workforce at the home base. Our results are robust to a wide variety of robustness checks. |
| Keywords: | Internationalization; Innovation; Diversity |
| JEL: | M14 M16 O32 |
| Date: | 2021–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2021_003&r=all |
| By: | Klimczuk, Andrzej; Felix, Jorge |
| Abstract: | Social entrepreneurship is usually understood as an economic activity which focuses at social values, goals, and investments that generates surpluses for social entrepreneurs as individuals, groups, and startups who are working for the benefit of communities, instead of strictly focusing mainly at the financial profit, economic values, and the benefit generated for shareholders or owners. Social entrepreneurship combines the production of goods, services, and knowledge in order to achieve both social and economic goals and allow for solidarity building. From a broader perspective, entities that are focused on social entrepreneurship are identified as parts of the social and solidarity economy. These are, for example, social enterprises, cooperatives, mutual organizations, self-help groups, charities, unions, fair trade companies, community enterprises, and time banks. Social innovation is a key element of social entrepreneurship. Social innovation is usually understood as new strategies, concepts, products, services, and organizational forms that allow for the satisfaction of needs. Such innovations are created in particular in the contact areas of various sectors of the social system. For example, these are spaces between the public sector, the private sector, and civil society. These innovations not only allow the solving of problems but also extend possibilities for public action. |
| Keywords: | Aging and Entrepreneurship; Aging and Innovation; Entrepreneurship in Aging Population; Older People As Social Entrepreneurs and Social Innovators; Social and Solidarity Economy and Aging Populations |
| JEL: | J14 J18 O35 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105981&r=all |
| By: | Krammer, Sorin M.S.; Belkouja, Mustapha; Yoon, David |
| Abstract: | Despite inherent differences across disciplines, collaboration in general and larger teams of co-authors in particular, are prevalent strategies to increase research performance via academic publications. We take a more fine-grained view of this relationship by distinguishing between two dimensions of research performance, namely impact (i.e., subsequent citations of a paper) and prestige (i.e., top academic journals). Different from prior literature, we argue that there are both benefits and pitfalls in having larger teams, and these trade-offs will affect differently the impact and prestige of academic research. Specifically, we propose that while team size will enhance linearly the impact of a paper, it will contribute in a non-linear fashion to its prestige. Furthermore, these relationships will be moderated by the knowledge and international diversity of the team. We test these hypotheses using bibliometric data on more than 40,000 publications between 1994 and 2013 papers across 21 sub-fields within the realm of Business and Management. Our results broadly support our theoretical assertions. We discuss some practical implications for assessing and stimulating the research performance of academics in business schools. |
| Keywords: | Team size, citations, co-authorship, research performance. |
| JEL: | I23 M0 Z0 |
| Date: | 2019–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104548&r=all |
| By: | Andrea Borsato |
| Abstract: | The paper extends the research started with Borsato (2020). I develop an agent-based, stock-flow consistent growth model to analyze the interplay between income distribution, innovation and productivity growth. Results still show that the mounting shrinkage of the labour share impacts negatively upon firm's innovative effort. Additionally, I question the neoclassical belief on the negative interest-elasticity of investments, since decreases in the rate of interest are not associated with increases in capital accumulation. Finally, the panel cointegration analysis based on US manufacturing industries corroborates the theoretical predictions for the period 1958 - 2011. |
| Keywords: | Secular Stagnation; Innovation dynamics; Income distribution; Agent-based SFC models; US manufacturing industries; Panel cointegration analysis. |
| Date: | 2021–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2021/09&r=all |
| By: | Patrizia Fanasch (University of Paderborn); Bernd Frick (University of Paderborn) |
| Abstract: | The succession of chief executive officer (CEO) and chief operating officer (COO) is inevitable in the life cycle of a company and especially in family businesses. However, the majority of family businesses fail to survive across multiple generations. Although the relevance of effective succession planning to secure a competitive advantage is undisputed, no attempts have yet been made to assess the impact of family-internal changes on firm performance in general and firm reputation in particular with respect to the positions of CEO and COO. In an attempt to close these gaps, this study uses event study methodology to analyze the impact of multiple managerial changes in a sample of 1,397 German wineries in the period 1994 to 2017. The results indicate that family-internal CEO and COO changes have a significantly positive impact on firm reputation. Relay succession turns out to be a particularly well-suited instrument to increase reputation. |
| Keywords: | Family firms; Succession planning; Reputation; Wine industry |
| JEL: | M12 L22 L66 L14 J24 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:dispap:69&r=all |
| By: | Keim-Klärner, Sylvia; Bernard, Josef; Bischof, Susann; Dülmen, Christoph van; Klärner, Andreas; Steinführer, Annett |
| Abstract: | The aim of this Working Paper is to introduce a conceptual model and study design for researching social disadvantage in rural peripheries, focusing on the interplay of social disadvantage and spatial disadvantage. The paper presents the theoretical concepts,understandings, and definitions, as well as the research design we draw on in the international research project ‘Social disadvantage in rural peripheries in Czechia and eastern Germany: opportunity structures and individual agency in a comparative perspective.’ The project investigates the multifaceted relationships between social disadvantage, local and regional opportunity structures,and individual agency in rural peripheries in Czechia and eastern Germany from a comparative perspective. It focuses on two sets of research questions. The first set concerns the quantitative patterns of social disadvantage and spatial disadvantage in rural areas. The second set asks about the impact of opportunity structures as part of the residential context on particularly disadvantaged groups in four case study regions. The project applies theories of peripheralization and rural restructuring, and considers social networks and individual agency. Area-level secondary data and accessibility analyses and qualitative case studies,including ego-centered network analyses and GPS mapping of time-space activity patterns,are used. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2021–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:jhimwp:310407&r=all |
| By: | Thierry Kamga Tadie (Université de Douala); Claude Essomba Ambassa (Université de Douala); Louis Aimé Fono (Université de Douala); Jules Sadefo Kamdem (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier) |
| Abstract: | Small and Meduim Entreprize, crucial part of Cameroonian economic tissue, face difficulties in accessing to credit through bank in particular and credit market in general. This phenomenon leads these companies to seek alternative financing. This article aims to determine the criteria explaining the choice of finance by leasing by Cameroonian SMEs. For that, we collect data using a questionnaire from a sample of 61 SMEs in four sectors of activity (service, commerce, industry and agriculture). This sample is segmented into two groups: those that use leasing and those that do not. Analysis of the data led to two sets of results. On the one hand, there is a strong association between the age of the company and the use of leasing. On the other hand, using a multiple component analysis, factors such as age, the quality of the information disseminated by the lessor, the field of activity, the nature of the asset and of investment, performance, constraints and accessibility explain the use of leasing. |
| Abstract: | Les PME constituent une composante principale du tissu économique camerounais. Cependant, le phénomène de rationnement dont elles sont victimes sur le marché du crédit à cause de leur vulnérabilité les obligent à se tourner vers des financements alternatifs. Cet article vise à déterminer les critères expliquant le choix du financement par crédit-bail par les PME camerounaises. Pour y parvenir, nous avons collecté les données à partir d'un questionnaire auprès de 61 PMEs relevant de quatre secteurs d'activité (service, commerce, industrie et agricole) et segmenté en deux groupes : celles qui recourent au crédit-bail et celles qui n'y recourent pas. L'analyse des données a conduit à deux séries de résultats. On constate d'une part une association forte entre l'âge de l'entreprise et le recours au crédit-bail. D'autre part, à l'aide d'une analyse en composante multiple, les facteurs tels que l'âge, la qualité de l'information diffusée par le bailleur, le domaine d'activité, la nature de l'actif et de l'investissement, la performance, les contraintes et l'accessibilité expliquent le recours au crédit-bail. |
| Keywords: | Leasing,Financing,Cameroonian SMEs,Lessor,Lessee,Crédit-bail,Financement,PME camerounaise,bailleur,preneur |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03131640&r=all |
| By: | Kawaguchi, Kohei; Kodama, Naomi; Tanaka, Mari |
| Abstract: | This study makes a causal inference on the effects of anti-contagion and economic policies on small business by conducting a survey on Japanese small business managers’ expectations about the pandemic, policies, and firm performance. We first find the business suspension request decreased targeted firms’ sales by 10 percentage points on top of the baseline 8 percentage points decline due to COVID-19. Second, using a discontinuity in the eligibility criteria, we find lump-sum subsidies improved firms’ prospects of survival by 19 percentage points. Third, the medium-run recovery of firms’ performance is expected to depend crucially on when infections would end, indicating that stringent anti-contagion policies could complement longer-run economic goals. |
| Keywords: | COVID-19, Causal inference, Manager’s expectation, Business performance, Subsidy, Small business, Regression Discontinuity Design, Randomized controlled trial, Difference-in-Difference, Pandemic, Infection, Anti-contagion policies, Lockdown, Survey |
| JEL: | D22 D80 D84 E17 E32 E66 I18 L50 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:hit:sspjdp:dp20-002&r=all |
| By: | Maksim Malyy (Skolkovo Institute of Science and Technology); Zeljko Tekic (Skolkovo Institute of Science and Technology; HSE University, Graduate School of Business); Tatiana Podladchikova (Skolkovo Institute of Science and Technology) |
| Abstract: | This study demonstrates that web-search traffic information, in particular, Google Trends data, is a credible novel source of high-quality and easy-to-access data for analyzing technology-based new ventures (TBNVs) growth trajectories. Utilizing the diverse sample of 241 US-based TBNVs, we comparatively analyze the relationship between companies' evolution curves represented by search activity on the one hand and by valuations achieved through rounds of venture investments on another. The results suggest that TBNV's growth dynamics are positively and strongly correlated with its web search traffic across the sample. This correlation is more robust when a company is a) more successful (in terms of valuation achieved) - especially if it is a "unicorn"; b) consumer-oriented (i.e., b2c); and 3) develops products in the form of a digital platform. Further analysis based on fuzzy-set Qualitative Comparative Analysis (fsQCA) shows that for the most successful companies ("unicorns") and consumer-oriented digital platforms (i.e., b2c digital platform companies) proposed approach may be extremely reliable, while for other high-growth TBNVs it is useful for analyzing their growth dynamics, albeit to a more limited degree. The proposed methodological approach opens a wide range of possibilities for analyzing, researching and predicting the growth of recently formed growth-oriented companies, in practice and academia. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2104.03053&r=all |
| By: | Christophe Schmitt (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine) |
| Abstract: | We commonly consider the contribution of the effectuation developed by Sarasvathy as an alternative perspective to the causation one. In this paper, the author defends the idea that, even if these two logics were built on different pillars, the causation and the effectuation are eventually two sides of a coin. To understand the structuring of these two logics, the author mobilize Palo Alto's theory of communication, which is extended in order to include entrepreneurship in another paradigm: the paradigm of entrepreneurial action. The paper ends with a discussion of the interest of the latter within entrepreneurship research. |
| Abstract: | Il est commun, en entrepreneuriat, de considérer que l'apport de la logique effecuale développée à partir des travaux de Sarasvathy se situe avant tout dans une perspective d'alternative à la logique causale. Dans cet article, nous avançons l'idée selon laquelle, même si ces deux logiques se sont construites sur des piliers différents, la logique de causation et la logique effectuale ne sont finalement que les deux faces d'une même pièce. Pour comprendre la structuration de ces deux logiques, nous mobilisons la théorie de la communication de Palo Alto afin d'inscrire l'entrepreneuriat dans un autre paradigm : le paradigme de l'agir entrepreneurial. L'article se termine par une discussion portant sur l'intérêt de ce nouveau paradigme dans le cadre de la recherche en entrepreneuriat. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03169153&r=all |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Johansson, Dan (Örebro University School of Business); Karlsson, Johan (Centre for Family Entrepreneurship and Ownership (CeFEO)) |
| Abstract: | We examine the conceptualization of entrepreneurs in neo-Schumpeterian growth theory, which has reintroduced entrepreneurs into mainstream economics. Specifically, we analyze how neo-Schumpeterians relate to the contradiction between the entrepreneur-centered view of Schumpeter (1934) and the entrepreneurless framework of Schumpeter (1942), with the two frameworks entailing vastly different economic and policy implications. The analysis is based on a review of approximately 750 peer-reviewed articles over the period 1990–2018. The articles were identified using text mining methodology and supervised machine learning. The results show that the literature leans towards Schumpeter (1942); innovation returns are modeled as following an ex ante known probability distribution. By assuming that the outcomes of innovation activities are (probabilistically) deterministic, the Schumpeterian entrepreneur becomes redundant. In addition, the literature abstracts from genuine uncertainty, thus evading central issues regarding the economic function of the entrepreneur, especially with respect to disruptive innovations, ownership, and profits. To incorporate genuine uncertainty, the literature needs to adopt a broader conceptual foundation that goes beyond equilibrium modeling. |
| Keywords: | Creative destruction; Economic growth; Entrepreneur; Innovation; Judgment; Bibliometric analysis; Knightian uncertainty |
| JEL: | B40 O10 O30 |
| Date: | 2021–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1385&r=all |