nep-ent New Economics Papers
on Entrepreneurship
Issue of 2012‒09‒16
seven papers chosen by
Marcus Dejardin
Notre-Dame de la Paix University

  1. Start-up absorptive capacity: Does the owner’s human and social capital matter? By Jonas Debrulle
  2. Start-up export intensity: An empirical investigation of the impact of absorptive capacity and business owner human and social capital By Jonas Debrulle
  3. Tax Policy and Firm Entry and Exit Dynamics: Evidence from OECD Countries By Richard Kneller; Danny McGowan
  4. Actions driving and legitimizing radical innovations in a large firm By Johansson Magnus; Rani Jeanne Dang; Rick Middel
  5. The mechanisms underlying the territorial innovation dynamics: the role of architectural knowledge By Rani Jeanne Dang; Catherine Thomas
  6. Self-Financing of Traditional and R&D Investments: Evidence from Italian SMEs By P. Brighi; R. Patuelli; G. Torluccio
  7. Job design and innovative work behavior enabling innovation through active or low-strain jobs? By De Spiegelaere, Stan; Van Gyes, Guy; Vandekerckhove, Sem; Van Hootegem, Geert

  1. By: Jonas Debrulle
    Abstract: This study investigates how business owner human and social capital affect start-up absorptive capacity under different environmental conditions. From our analysis of a sample of 199 Flemish start-ups, we observe that the owner’s start-up experience and bridging social capital are positively and significantly related to the new venture’s ability to acquire, assimilate and exploit external information. In addition, our findings reveal a positive but decreasing effect of owner specific human capital as a function of environmental turbulence. Furthermore, we find that management experience significantly stimulates start-up absorptive capacity within highly dynamic environments, whereas it hinders it within stable environments. Finally, implications and opportunities for future research are provided.
    Date: 2012
  2. By: Jonas Debrulle
    Abstract: This study investigates the influence of business owner human and social capital on start-up export intensity. In addition, building on the knowledge-based view of the firm, we assume the relationships between owner characteristics and firm export activities to be moderated by the start-up’s absorptive capacity, which designates its ability to acquire, assimilate and exploit new information. Flemish start-ups form this study’s empirical setting. Our results indicate that start-up export intensity is (1) driven by the business owner’s formal education and start-up experience, while (2) weakened by his/her accumulated management experience. Furthermore, we find evidence that start-up absorptive capacity significantly moderates the export impact of the owner’s human capital. Finally, implications and opportunities for future research are suggested.
    Date: 2012
  3. By: Richard Kneller (University of Nottingham); Danny McGowan (Bangor Business School)
    Abstract: In this paper we study the effects of reforms to corporate and personal income taxation on the rate of firm entry and exit using industry data for 19 OECD countries from 1998 to 2005. Using a difference-in-differences approach to correct for endogeneity bias we find that increases in corporate taxation affect entry but not exit. The effects of personal taxation depend upon the marginal tax rate that is altered. Increases in marginal tax rates applied at low income levels negatively affect entry and positively affect exit, whereas marginal tax reforms at higher income levels have the opposite effect.
    Keywords: income taxation; firm entry; firm exit; difference in differences
    JEL: D22 H2 H32 L26
    Date: 2012–04
  4. By: Johansson Magnus (IIE - Institute for Innovation and Entrepreneurship, Université de Gothenburg, Suède - Université de Gothenburg, Suède); Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS)); Rick Middel (IIE - Institute for Innovation and Entrepreneurship, Université de Gothenburg, Suède - Université de Gothenburg, Suède)
    Abstract: In a longitudinal real time case study over 14 months, we follow the process of radical innovation in an incumbent Swedish firm. Applying institutional theory and the concept of legitimacy, we try to shed new light on the firm process of developing and implementing radical ideas. We deconstruct the black box of individual actions undertaken in the process and trace the effect of these actions on the development and legitimacy for the radical idea. We find that when an idea lack top management support and the process of innovation are interrupted, lower level employees' action can have a defining impact of the survival. In the literature there is a perceived need for a consistent view on how to organize the bottom up processes of innovation within a firm. Emerging from the qualitative grounded analysis we thus formalize these actions undertaken in a radical innovation process.
    Keywords: Legitimacy, Radical Innovation, Actions
    Date: 2012–04–25
  5. By: Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS), IIE - Institute for Innovation and Entrepreneurship, Université de Gothenburg, Suède - Université de Gothenburg, Suède); Catherine Thomas (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université de Nice Sophia Antipolis (UNS))
    Abstract: This paper examines the mechanisms underlying territorial dynamics of inter-organizational innovation, focusing specifically on the combinative capabilities of clusters. We analyse the front-end process of inter-organizational innovation, which is the stage when partners negotiate and establish Collaborative localised innovation projects (CLIPs). While most research focus on how clusters facilitate access to new knowledge, this paper rather focuses on how clusters facilitate the combination of knowledge among heterogeneous actors. We apply a qualitative methodology based on an exploratory case study research design to two high-tech clusters in the microelectronics and information and communication technology sectors. Our findings suggest that a specific underlying mechanism significantly influence knowledge creation through successful CLIPs that is: architectural knowledge at the cluster level. The results also precise the role of architectural knowledge, which varies depending on whether it is technical, relational or commercial, and on its distribution among the actors, involved. The combination of the results helped elaborating a model of successful integration of cluster members' into CLIPs, which contribute to research developments on inter-organizational innovation.
    Keywords: Cluster, Knowledge Base, Interactive Innovation, Collaborative R&D Project, Architectural Knowledge
    Date: 2012–04–25
  6. By: P. Brighi; R. Patuelli; G. Torluccio
    Abstract: Self-financing has often been seen as an important source for research-and-development (R&D) funding. However, an in-depth comparison between the determinants of self-financing in the case of traditional investments versus those in R&D has not been provided yet. We use a comprehensive data set of Italian manufacturing firms to investigate this issue. We analyse the role of a wide number of financial variables in driving the rate of self-financing of firms, in both traditional and R&D investments, and we focus on public subsidies and firm size as critical factors explaining heterogeneity. First, we perform logit and logistic regressions separately for traditional and R&D self-financing, finding that they are positively correlated, and that the availability of public subsidies reduces self-financing. Subsequent poolability tests show that public subsidies and firm size are crucial discriminating factors for self-financing behaviour. Our main finding is that, in the absence of public subsidies, no internal or external market variable is able to explain the firms’ financing decisions. Furthermore, our analyses generally show that credit constraints and banking relationship variables are relevant in determining traditional investment self-financing, while no clear statistical evidence is found in the R&D case. Credit rationing is not significant for R&D selffinancing, which may be explained by rationed firms being left out of our sample.
    JEL: D45 D82 E51 G21 G32 O32
    Date: 2012–09
  7. By: De Spiegelaere, Stan; Van Gyes, Guy; Vandekerckhove, Sem; Van Hootegem, Geert
    Abstract: Promoting the innovative potential of employees is a main challenge for HR professionals. Previous studies already stressed the role of job design for employee innovativeness. Building on the work of Karasek & Theorell (1990), we focus on the relation between job design, work engagement and innovative work behaviour (IWB). The results show that job control is positively related to both IWB and work engagement, job demands are negatively related to work engagement, yet their relation to IWB is more ambiguous. Significant interaction effects between job demands and job control variables in both the relation with work engagement and IWB are found, yet their nature differs significantly. We find that active jobs (high control and high demands) are related to lower levels of IWB in comparison to low-strain jobs (high control, low demands), which has major managerial consequences.
    Keywords: Innovative Work Behavior; Job Design; Time Pressure; Work Engagement; Employee Innovation
    JEL: D23 D29 D01
    Date: 2012

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