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on Small Business Management |
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Issue of 2024‒03‒04
seventeen papers chosen by |
| By: | Mnahel Babgi (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | Digitalization and internationalization have an important role in the growth of enterprises, especially small and medium-sized enterprises (SMEs). In recent years, Borndigital SMEs have increased and internationalized faster than brick-and-mortar companies across the world. Notably, the Kingdom of Saudi Arabia (KSA), the largest economy in the Middle East and North Africa region, recognizes the significance of digitalization in SMEs development, as these firms are contributing greatly to the country's GDP. Despite the increasing influx, there is a paucity of research that examines the factors affecting the digitization and internationalization processes of born-digital SMEs. Therefore, this doctoral research aims to develop a deeper understanding of this phenomenon to provide useful insights to the practitioners and policymakers. This research flows in three stages. In the first stage, a bibliometric analysis is conducted on 246 research papers in International Business and a subsequent front analysis is conducted to supplement the findings. To surge further, a quantitative survey is developed to investigate internationalization strategies and the role of digitalized value chain activities with the data collected from born digital SMEs. Finally, a case study analysis will be developed on the successful SMEs to examine the interplay of digitization and internationalization among SMEs in Saudi Arabia to enhance SMEs' global competitiveness and bridge the knowledge gap to contribute to the body of literature in this research area. |
| Keywords: | Digitalization Internationalization Born-digital companies, digitalized value chain, SMEs, Digitalization, Internationalization, Born-digital companies |
| Date: | 2023–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04401322&r=sbm |
| By: | Seven Ağır (Department of Economics, Middle East Technical University, Ankara, Turkey) |
| Abstract: | The small and medium-sized enterprises might play an essential role in the economy of a developing country. Yet, in developing countries, relatively fewer firms have been able to transition from micro enterprises focusing on survival to small and medium enterprises with higher capacity for innovation and job creation. This problem of the ‘missing middle’ has been identified as one of the barriers to increasing economic prosperity and therefore the ‘reasons’ underlying it have been examined in studies on various parts of the developing world. This study examines the ‘missing middle’ problem from a historical-institutional perspective by focusing on the underutilization of a novel form of business organization, i.e., PLLC in Turkey. Based upon a novel dataset of firm creation and desk research on legal changes in Turkey during 1957-1994, the study demonstrates the ‘missing’ PLLCs and discuss the potential factors underlying legal stagnation. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:met:wpaper:2305&r=sbm |
| By: | Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization) |
| Abstract: | The use of cloud computing by firms can be expected to go hand in hand with higher productivity, more innovations, and lower costs, and, therefore, should be positively related to export activities. Empirical evidence on the link between cloud computing and exports, however, is missing. This paper uses firm level data for manufacturing enterprises from the 27 member countries of the European Union taken from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate this link. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use cloud computing do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated cloud computing premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of cloud computing are positively related. |
| Keywords: | Cloud computing, exports, firm level data, Flash Eurobarometer 486, kernel-regularized least squares (KRLS) |
| JEL: | D22 F14 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:427&r=sbm |
| By: | Grégory Jemine (HEC Liège); François-Régis Puyou (EM - emlyon business school); Florence Bouvet (HEC Liège) |
| Abstract: | "Purpose: Increasingly, emerging information technologies such as shared software and continuous accounting are offering alternative ways to perform accounting tasks in a supposedly more efficient fashion. Yet, few studies have investigated how they affect the provision of accounting services, especially in the context of small accounting firms, which provide legal and tax services to entrepreneurs and businesses. Drawing on the service perspective, the paper critically examines how technological innovation challenges and reconfigures the co-production of accounting services in these firms.Design/methodology/approach:The paper answers calls issued in prior studies to conduct empirical research on emerging information technologies for accountants. It focuses on the specific context of small accounting firms and draws on interviews with small accounting firms' managers (n = 20).Findings:The study emphasizes five significant challenges that accounting firm managers face when using information technologies to support the provision of their services (ensuring reliability, factoring in their heterogeneous client base, repricing, training clients to use new technologies and promoting advisory services). Information technologies are shown to have a structuring role in the co-production of accounting services, as they lead to reconfigurations of the relationships between accountants and their clients. A range of four configurations is developed to highlight accountants' strategies to maintain collaborative relationships with their clients while integrating new technologies into their work practices.Originality/value:By conceptualizing accounting services as a co-production process, the paper offers new insights into the implications of emerging information technologies for small accounting firms." |
| Keywords: | Technological innovation, Service perspective, Co-production, Small accounting firms, Emerging technologies, Continuous accounting |
| Date: | 2024–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325739&r=sbm |
| By: | Antonio Rafael Ramos-Rodriguez; Jose Aurelio Medina-Garrido; Jose Daniel Lorenzo-Gomez; Jose Ruiz-Navarro |
| Abstract: | The recognition of business opportunities is the first stage in the entrepreneurial process. The current work analyzes the effects of individuals' possession of and access to knowledge on the probability of recognizing good business opportunities in their area of residence. The authors use an eclectic theoretical framework consisting of intellectual and social capital concepts. In particular, they analyze the role of individuals' educational level, their perception that they have the right knowledge and skills to start a business, whether they own and manage a firm, their contacts with other entrepreneurs, and whether they have been business angels. The hypotheses proposed here are tested using data collected for the GEM project in Spain in 2007. The results show that individuals' access to external knowledge through the social networks in which they participate is fundamental for developing the capacity to recognize new business opportunities. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.17448&r=sbm |
| By: | Omer Majeed (Reserve Bank of Australia); Jonathan Hambur (Reserve Bank of Australia); Robert Breunig (Crawford School of Public Policy, Australian National University) |
| Abstract: | Recent papers have argued that monetary policy and economic conditions can influence the amount of innovative activity in the economy, and therefore productivity and living standards in the future. This paper examines whether this is the case for Australia, a small open economy that tends to import innovation from overseas. We find that contractionary (expansionary) monetary policy reduces (increases) aggregate research and development (R&D) spending, and that lower (higher) R&D spending reduces (increases) future productivity. However, using firm-level data and a broader survey measure of innovation that also captures adoption, we find heterogeneous responses across different firm types. Small firms decrease innovation in response to contractionary monetary policy shocks whereas large firms increase innovation. This heterogeneity appears to reflect differing exposure to the channels through which monetary policy affects innovation. These channels include affecting demand or affecting financial conditions and constraints. We also find that US monetary policy spills over and affects Australian firms' innovation. Overall, our results suggest that monetary policy and economic conditions have medium-run effects on productivity, though the effects are more heterogeneous than previously documented. While the effects may cancel out over a cycle, this finding highlights the importance of stabilisation policy in preventing medium-run economic scarring. |
| Keywords: | innovation; monetary policy; firm-level data |
| JEL: | E52 O30 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:rba:rbardp:rdp2024-01&r=sbm |
| By: | Phu Nguyen-Van; Tuyen Tiet; Quoc Tran-Nam |
| Abstract: | Although numerous studies examine the impacts of environmental compliance and innovation on a firm's economic performance, the role of export activities in this nexus has remained unanswered. In this study, we revisit the Porter hypothesis by investigating synergy strategies of dierent environmental and economic practices (i.e., environmental compliance, product innovation, process innovation and having export activities) on total factor productivity (TFP) of Vietnamese manufacturing SMEs. Our results suggest that while encouraging either product or process innovation is also essential in the environment-promoting policy, joint implementation of these two practices should be carefully considered by managers. Moreover, entering export markets positively impacts rms' productivity; complying with the domestic/local environmental standards could signicantly increase the chances for SMEs to enter the export markets |
| Keywords: | Environmental compliance; Export; Product innovation; Process innovation; Productivity; SMEs |
| JEL: | L25 M11 O12 Q55 Q56 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2024-1&r=sbm |
| By: | Bøler, Esther Ann; Moxnes, Andreas; Ulltveit-Moe, Karen Helene |
| Abstract: | This paper makes use of a reform that allowed firms to use patents as stand-alone collateral, to estimate the magnitude of collateral constraints and to quantify the aggregate impact of these constraints on misallocation and productivity. Using matched firm-bank data for Norway, we find that bank borrowing increased for firms affected by the reform relative to the control group. We also find an increase in the capital stock, employment and innovation as well as equity funding. We interpret the results through the lens of a model of monopolistic competition with potentially collateral constrained heterogeneous firms. Parameterizing the model using well-identified moments from the reduced form exercise, we find quantitatively large gains in output per worker in the sectors in the economy dominated by constrained (and intangible-intensive) firms. The gains are primarily driven by capital deepening, whereas within-industry misallocation plays a smaller role. |
| Keywords: | intangible capital; patents; credit constraints; misallocation; productivity |
| JEL: | G32 L25 O34 O47 |
| Date: | 2023–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121322&r=sbm |
| By: | HONJO, Yuji; IWAKI, Yunosuke; KATO, Masatoshi |
| Abstract: | This study explores the impact of initial debt financing on the survival of start-up firms by identifying three types of exit routes: bankruptcy, voluntary liquidation, and merger. Using a discrete-time duration model for Japanese start-up firms, we examine how debt financing affects the time from founding to exit. We find that firms that initially rely on debt financing from outside creditors are more likely to go bankrupt and that long-term debt, rather than short-term debt, is positively associated with the time to exit due to bankruptcy. In contrast, such firms are less likely to liquidate voluntarily, and long-term debt is negatively associated with the time to voluntary liquidation. Moreover, they are less likely to exit via merger, and long-term debt is negatively associated with the time to exit via merger. Furthermore, unlike voluntary liquidation and merger, macroeconomic conditions influence the likelihood of bankruptcy. |
| Keywords: | Bankruptcy, Debt financing, Long-term debt, Merger, Outside creditors, Start-up, Voluntary liquidation |
| JEL: | G33 G34 M13 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:tdbcdp:e-2023-02&r=sbm |
| By: | Jiří Homan (Faculty of Economics, University of South Bohemia In České Budějovice) |
| Abstract: | This article aims to explain the features of the cloud computing platform and the possible deployment modes of these services. It further explains the concept of big data. Because these phenomena could have a positive benefit in the case of implementation for small and medium-sized Czech companies (SMEs), we devote ourselves to the description and use of existing methodologies that explain the penetration of new technologies towards their users. To form a broader view of the current situation, we, in this paper, provide an overview of the current use of individual services provided through the cloud computing platform by small and medium-sized enterprises. From this overview, it is evident that small and medium-sized enterprises use more and more applications based on cloud computing. Our overview also showed that the field of big data processing is not relevant for SMEs. They do not use cloud solutions aimed at processing big data. This area may be relevant in the future in the future by purchasing Internet of Things services. Among the implemented cloud computing services, services that implementation is not too demanding stand out. It is not yet clear what leads SEMs businesses to this behavior. In our research, we propose to find out, with the help of semi-structured interviews, how the decision-making process takes place in SMEs. We propose a series of questions for these interviews with individual investigated factors. When designing them, we are based on the preliminary research and existing research articles dealing with this topic. |
| Keywords: | Cloud computing, SME, cloud adoption, cloud application usage, IaaS, PaaS, SaaS |
| JEL: | A30 C40 O33 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:boh:wpaper:01_2023&r=sbm |
| By: | Yi Yiang; Richard S. J. Tol |
| Abstract: | In the era of sustainability, firms grapple with the decision of how much to invest in green innovation and how it influences their economic trajectory. This study employs the Crepon, Duguet, and Mairesse (CDM) framework to examine the conversion of R&D funds into patents and their impact on productivity, effectively addressing endogeneity by utilizing predicted dependent variables at each stage to exclude unobservable factors. Extending the classical CDM model, this study contrasts green and non-green innovations' economic effects. The results show non-green patents predominantly drive productivity gains, while green patents have a limited impact in non-heavy polluting firms. However, in high-pollution and manufacturing sectors, both innovation types equally enhance productivity. Using unconditional quantile regression, I found green innovation's productivity impact follows an inverse U-shape, unlike the U-shaped pattern of non-green innovation. Significantly, in the 50th to 80th productivity percentiles of manufacturing and high-pollution firms, green innovation not only contributes to environmental sustainability but also outperforms non-green innovation economically. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.16030&r=sbm |
| By: | Cucchiarini, Veronica; Scicchitano, Sergio; Viale, Riccardo |
| Abstract: | The study of the entrepreneurial mindset has provided valuable insights into the cognitive strategies that impact entrepreneurial activities. Researchers have identified several biases and heuristics employed by entrepreneurs, which significantly influence their decision-making processes and actions, but the empirical evidence remains fragmented. To develop a more comprehensive understanding of the cognitive and behavioral mindset of entrepreneurs, it is important to consider the role of the context in which they operate. By analyzing the strengths and weaknesses of heuristics and biases within the context of risk or uncertainty, we can gain a deeper understanding of their influence on entrepreneurial outcomes. |
| Keywords: | Entrepreneurship, biases, heuristics, risk, uncertainty, labour policies |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1390&r=sbm |
| By: | Christian Enz (Department of Applied Economics and Economy, Faculty of Economics, University of South Bohemia In České Budějovice) |
| Abstract: | Technological progress ensures a growing number of communication channels. National and international corporations use the new tools for intensive customer communication. SMEs therefore are in danger of disappearing from their consumers' field of vision. This paper examines the current communication behavior of SMEs. Future developments also are identified. The analysis of a large-scale survey of companies shows that the number of communication channels used depends on the size of a company. It is found that SMEs currently use fewer communication channels than large companies. Marketing communication is also much less professionalized in small companies. For example, this paper shows that only 25% of companies with an annual turnover of less than 2 million euros have their communication budgets. For SMEs with an annual turnover of 10 to 50 million euros, the share is already 58%. The importance of communication channels, on the other hand, depends on the regional context of the company's headquarters. Thus, the prioritization of certain communication channels is significantly dependent on the region in which a company is located. However, the research shows that SMEs across regions and size categories are aware of changes in the media use of their target groups. Nevertheless, many SMEs do not want to or cannot use all communication channels considered relevant in the future. This is equally evident among Czech and German SMEs, although German companies use more communication channels on average than Czech ones. This study also shows that SMEs are generally not willing to increase their marketing communication staff at present. This means that SME management faces the challenge of setting the correct priorities in customer communication. On the German side, the focus is on weighting. For Czech companies, the focus is on channel selection. This paper thus shows that there is potential for optimization for Czech and German SMEs. If it is possible to optimally reflect regional peculiarities in the use of media in the communication mix, efficiency increases and even the development of a competitive advantage over large companies is possible. |
| Keywords: | Training system, Corporate culture, Czech enterprises, New economy, Industry 4.0, Diagnosis of corporate culture, Relation between corporate culture and training |
| JEL: | M12 M14 M53 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:boh:wpaper:03_2022&r=sbm |
| By: | Melanie Koch; Lukas Menkhoff |
| Abstract: | Entrepreneurs tend to be risk tolerant but is more risk tolerance always better? In a sample of about 2, 100 small businesses, we find an inverted U-shaped relation between risk tolerance and profitability. This relationship holds in a simple bilateral regression and also when we control for a large set of individual and business characteristics. Apparently, one major transmission goes from risk tolerance via investments to profits. This is quite robust as it applies for past investments as well as planned investments. Considering business survival, we show, first, that less profitable businesses leave the market while moderately risk tolerant entrepreneurs survive more often. Second, the high risk-low profit part of the U-shaped relation seems to disappear among businesses being four years and older, indicating that such inferior risk-profit combinations disappear over time. These findings are important for the concept of business readiness trainings as the motivation (and ability) to take risks should potentially be accompanied by some warning that too much risk taking can be detrimental to long-term business success. |
| Keywords: | risk tolerance; entrepreneurs; profits; investments |
| JEL: | D22 D81 L26 M21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2067&r=sbm |
| By: | Nikola Soukupová (Department of Management, Faculty of Economics, University of South Bohemia In České Budějovice) |
| Abstract: | The consequences of work-related stress (WRS) impact not only the individual but also the workplace, the economy, and society. WRS deals with the stigmatization of topics where stress is perceived as a by-product of responsible work. Stress management interventions should be implemented in enterprises on the organizational and individual levels. The main aim of this study is to summarize the current knowledge about the implementation of stress management in small and medium-sized enterprises and propose desirable recommendations for enterprises that want to incorporate stress management into their internal processes. The research was conducted in 194 small and medium-sized manufacturing enterprises in 2022 by an electronic structured questionnaire. Knowledge and implementation of stress management, interventions, evaluation processes, work-related stressors, and evidence of work-related stress were subject to investigation. The results show that 86.6% of enterprises implemented at least one stress-management intervention in the past three years. Significantly exceeded interventions at the organizational-level. Enterprises that implement stress management interventions evaluate them in 43.5% of cases. Only 8.2% of them confirmed performing an analysis of the costs of work-related stress. |
| Keywords: | Workplace, Work-related stress, Stress management, Stress management interventions, Small and Medium-Sized Enterprises |
| JEL: | D21 M14 M54 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:boh:wpaper:05_2022&r=sbm |
| By: | Ribeiro, Beatriz Couto (Technical University of Berlin (TUB) and University of Campinas (UNICAMP)); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | With the rise of renewable and distributed energy sources, electricity distribution and transmission utilities are facing increasing demand by regulators to innovate and adopt new technologies and transit to smart grids. However, these regulated natural monopolies often lack economic incentives to develop and adopt new technologies. To overcome this barrier, some regulatory authorities have introduced the so-called "innovation-stimuli" regulations to foster experimentation, technological adoption, and innovative solutions. We analyze and compare the effectiveness of two different innovation-stimuli regulations, the cost-pass through and WACC approaches, in the UK and Italy, respectively. To assess the impact of these different regulations on innovation, we use synthetic control (SC) and synthetic difference-in-differences (SDID) methods, which constitute causal inference techniques for small-n case study design and, for the first time, are employed to assess the impact of regulations on innovation outputs. Our panel data encompasses 13 European countries covering 1995 to 2013 and used smart grid projects and patent applications as dependent variables. Differently from what one might expect, not every innovation-stimuli regulation effectively supports innovation outputs. Meanwhile, cost-pass-through significantly and positively affected patent applications in the UK. In Italy, WACC did not affect patent applications, and European Commission-funded projects mostly drove the increases in smart-grid projects. |
| Keywords: | Innovation; Electricity sector; Regulation |
| JEL: | K23 O31 Q48 |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_007&r=sbm |
| By: | Yang Ming (Central University of Finance and Economics); Heng-fu Zou (Central University of Finance and Economics) |
| Abstract: | This paper develops a theoretical model to explore the impact of the spirit of capitalism (SOC) on entrepreneurship and the allocative efficiency of talent. In the presence of financial frictions, both individual abilities and wealth play crucial roles in shaping occupational choices. Consequently, individuals with a stronger SOC are more inclined towards entrepreneurship. However, this heightened entrepreneurial activity leads to allocative inefficiencies in talent allocation, as some wealthy but less skilled individuals pursue entrepreneurial ventures. Mitigating financial frictions serves to enhance overall productivity by rectifying this inefficiency, though its influence on entrepreneurship remains uncertain. Conversely, increasing the fraction of individuals with higher SOC yields non-monotonic effects on both aggregate productivity and entrepreneurship. The calibrated model introduces a novel perspective on the decline in entrepreneurship witnessed in the U.S. and other advanced economies over recent decades. |
| Keywords: | spirit of capitalism, entrepreneurship, talent allocation, occupational choice |
| JEL: | J24 O15 O16 |
| Date: | 2024–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:cuf:wpaper:618&r=sbm |