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on Economics of Strategic Management |
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Issue of 2023‒01‒09
eight papers chosen by João José de Matos Ferreira Universidade da Beira Interior |
| By: | Marco Caliendo (University of Potsdam, CEPA, IZA, BSE, DIW, IAB); Alexander Kritikos (DIW Berlin, University of Potsdam, CEPA, IZA, IAB); Claudia Stier (University of Potsdam) |
| Abstract: | Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance. |
| Keywords: | Entrepreneurship, Push and Pull Theories, Start-up Motivation, Survival, Job Creation, Firm Growth, Innovation |
| JEL: | L26 C14 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:59&r=cse |
| By: | Dörr, Julian Oliver |
| Abstract: | Theory suggests that new market entrants play a special role for the creation of new technological pathways required for the development and diffusion of more sustainable forms of production, consumption, mobility and housing. Unconstrained by past technological investments, entrants can introduce more radical environmental innovations than incumbent firms whose past R&D decisions make them locked into path-dependent trajectories of outdated technologies. Yet, little research exists which provides empirical evidence on new ventures' role in the technological transition towards decarbonization and dematerialization. This is mainly because patenting is rare among start-ups and also no historical track record about their R&D investments exists, both data sources commonly used to determine a company's technological footprint. To enable the identification of clean technology-oriented market entrants and to better understand their role as adopters and innovators for sustainable market solutions, this paper presents framework that systematically maps new ventures' business models to a set of well-defined clean technologies. For this purpose, the framework leverages textual descriptions of new entrants' business summaries that are typically available upon business registration and allow for a good indication of their technological orientation. Furthermore, the framework uses textual information from patenting activities of established innovators to model semantic representations of technologies. Mapping company and technology descriptions into a common vector space enables the derivation of a fine-granular measureof entrants' technological orientation. Applying the framework to a survey of German start-up firms suggests that clean technology-oriented market entrants act as accelerators of technical change: both by virtue of their existing products and services and through a high propensity to introduce additional environmental innovations. |
| Keywords: | Clean technologies,technological orientation,environmental innovation,sustainable entrepreneurship,text modeling,natural language processing |
| JEL: | C38 O13 Q55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22057&r=cse |
| By: | Caliendo, Marco (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Stier, Claudia (University of Potsdam) |
| Abstract: | Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show – based on a unique dataset of German start-ups from unemployment and non-unemployment – that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance. |
| Keywords: | entrepreneurship, push and pull theories, start-up motivation, survival, job creation, firm growth, innovation |
| JEL: | L26 C14 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15793&r=cse |
| By: | Kox, Henk L.M. |
| Abstract: | The paper models the links between public and firm-level knowledge processes. The knowledge-capital (KC) theory assumes that firms use their private knowledge assets to set up foreign subsidiaries. Countries with large outward FDI stocks should have a relative abundance of proprietary knowledge assets. This has not yet been adequately tested. Our model allows to test it by concentrating on national public knowledge inputs that are encapsulated in proprietary knowledge assets of firms. Using a rich international dataset we confirm the basic tenet of the KC theory and show the important role of public knowledge production for outward FDI. |
| Keywords: | Foreign Direct Investment,Knowledge Transfer and Innovation,Knowledge Assets,Public Knowledge Creation,Multinational Companies,Empirical test,world coverage 2000-2020), |
| JEL: | O34 O31 D22 D83 F23 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:266495&r=cse |
| By: | Filippo Marchesani; Francesca Masciarelli |
| Abstract: | This paper explores the role of local knowledge spillover and human capital as a driver of crowdfunding investment. The role of territory has already been studied in terms of campaign success, but the impact of territory on the use of financial sources like equity crowdfunding is not yet known. Using a sample of 435 equity crowdfunding campaigns in 20 Italian regions during a 4-year period (from 2016 to 2019), this paper evaluates the impact of human capital flow on the adoption of crowdfunding campaigns. Our results show that inbound knowledge in the region, measured in terms of ability to attract national and international students, has a significant effect on the adoption of crowdfunding campaigns in the region itself. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.16984&r=cse |
| By: | Georgios Tsiachtsiras; Deyun Yin; Ernest Miguelez (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Rosina Moreno |
| Abstract: | This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier's stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities' innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city's connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion. |
| Keywords: | High speed rail, Innovation, Technology diffusion, Patents, Specialization |
| Date: | 2022–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03891705&r=cse |
| By: | Malikov, Emir; Zhao, Shunan |
| Abstract: | We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover effects between firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firm productivity across the estimation steps. Instead, we explicitly accommodate crosssectional dependence in productivity induced by spillovers which facilitates identification of both the productivity and spillover effects therein simultaneously. We apply our model to study cross-firmspillovers in China’s electric machinery manufacturing, with a particular focus on productivity effects of inbound FDI. |
| Keywords: | Production Economics, Productivity Analysis |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:assa23:316529&r=cse |
| By: | Richard A. L. Jones (The University of Manchester, The Productivity Insitute) |
| Keywords: | innovation, science, UK policy, productivity, research and development |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:014&r=cse |