nep-ent New Economics Papers
on Entrepreneurship
Issue of 2023‒11‒27
nine papers chosen by
Marcus Dejardin, Université de Namur

  1. Market power and innovation in the intangible economy By Maarten de Ridder
  2. Spatial patterns and drivers of SME digitalisation. By Adelheid Holl; Ruth Rama
  3. The Plant-Level View of Korea's Growth Miracle and Slowdown By Lee, Munseob; Shin, Yongseok
  4. The Importance of Intellectual Humility in New Venture Teams (title of the paper) By Marieke Funck (first name last name); Slawa Tomin (first name last name of second author); Rüdiger Kabst (first name last name of third author)
  5. The signaling value of legal form in debt financing By Felix Bracht; Jeroen Mahieu; Steven Vanhaverbeke
  6. A Conceptual Framework for Describing the Phenomenon of Hackathons for Entrepreneurial Behavior (title of the paper) By Marieke Funck (first name last name)
  7. The Role of National Culture in Hackathon Teams’ Capacity for Ideation (title of the paper) By Marieke Funck (first name last name); Benjamin P. Krebs (first name last name of second author); Slawa Tomin (first name last name of third author); Bernhard A. Wach (first name last name of fourth author); Rüdiger Kabst (first name last name of fifth author)
  8. How can governments help small enterprises integrate into global value chains? By Pundir, Gaurav
  9. Quel effet du parcours scolaire sur les aspirations des jeunes à une carrière entrepreneuriale ? By Arthur Félix W. Sawadogo

  1. By: Maarten de Ridder
    Abstract: This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs - such as software - can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a decline in productivity growth, consistent with the empirical trends observed since themid-1990s.
    Keywords: Productivity, Growth, Business Dynamism, Intangible Inputs, Market Power
    Date: 2022–12–20
  2. By: Adelheid Holl; Ruth Rama
    Abstract: Digital transformation plays an increasingly important role in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet little is known regarding spatial inequalities in their adoption of advanced digital technologies. Using recent data from the Flash Eurobarometer 486, we study the spatial patterns of drivers for the implementation of new digital technologies in SMEs in Europe. In our analysis, the focus is on the possible influence of location. Considerable heterogeneity of SMEs is found in their propensity to adopt advanced digital technologies related to the strength of the local business environment and to the urban/rural hierarchy.
    Keywords: SMEs, Digitalisation, technology adoption, location.
    Date: 2022–07
  3. By: Lee, Munseob (University of California, San Diego); Shin, Yongseok (Washington University, St. Louis)
    Abstract: We analyze the evolution of the plant size distribution, static allocative efficiency, and business dynamism of the Korean manufacturing sector during its growth miracle (1967–2000) and the subsequent slowdown since 2000. The average plant size has an inverse-U pattern over time, uncorrelated with the level or the growth rate of value-added per worker. The measure of static misallocation decreases modestly until 1983, consistent with the fast economic growth, but increases substantially afterwards, without a corresponding negative trend in manufacturing productivity. These results are seemingly at odds with existing cross-country evidence on the relationship between plant size and economic development, as well as the one between static allocative efficiency and development. In addition, business dynamism, measured by either churning or responsiveness to shocks, diminished significantly since 2000, coinciding with the slowdown in manufacturing productivity. Our findings call for more systematic research on how economic growth correlates with establishment/firm size distribution and with static and dynamic allocative efficiency.
    Keywords: size distribution, misallocaton, business dynamism
    JEL: O14 O47 O53
    Date: 2023–10
  4. By: Marieke Funck (first name last name) (Paderborn University); Slawa Tomin (first name last name of second author) (Paderborn University (workplace of second author)); Rüdiger Kabst (first name last name of third author) (Paderborn University (workplace of third author))
    Abstract: In the dynamic environment of new venture teams (NVTs), where new information and diverse perspectives necessitate ongoing adaptation, intellectual humility assumes a central role. Intellectual humility is marked by openness to alternative viewpoints, recognition of the fallibility of personal beliefs and opinions, and the capacity to engage in fair and constructive negotiation. We investigate the role of intellectual humility in NVTs’ dynamics in terms of its influence on interpersonal conflict and information elaboration and how influence is distributed on the team. Our findings reveal that intellectual humility has a positive effect on the equal distribution of influence, reduces interpersonal conflict, and enhances information elaboration in NVTs. These findings expand our understanding of NVTs’ dynamics and provide valuable insights into the role of intellectual humility in the field of entrepreneurship. (abstract of the paper)
    Keywords: Intellectual humility; new venture teams; distribution of influence; interpersonal conflict; information elaboration (keywords)
    JEL: L26
  5. By: Felix Bracht; Jeroen Mahieu; Steven Vanhaverbeke
    Abstract: We examine if a startup's legal form choice is used as a signal by credit providers to infer its risk to default on a loan. We propose that choosing a legal form with low minimum capital requirements signals higher default risk. Arguably, small relationship banks are more likely to use legal form as a screening device when deciding on a loan. Using data from Orbis and the IAB/ZEW Start-up Panel for a sample of German firms, we find evidence consistent with our hypotheses but inconsistent with predictions of several competing explanations, including differential demand for debt or growth opportunities.
    Keywords: Legal form, Minimum Capital Requirements, Signaling, Access to Debt, Financial Constraint
    Date: 2022–12–15
  6. By: Marieke Funck (first name last name) (Paderborn University)
    Abstract: As hackathons bring together participants of diverse backgrounds and skills to solve specific problems, they create a tension between the hackathon intention to create new ventures for innovation problems and the empowerment of the participants to engage in entrepreneurial action. While previous research focuses predominantly on aspects of hackathons that are related to their organization and outcomes, our study takes a fresh perspective by highlighting whether and how hackathons contribute to fostering entrepreneurial behavior at the individual level. Drawing on social cognitive theory, I construct a theoretical framework to show how hackathon characteristics (time pressure, competition-collaboration duality, lack of structure and guidance) influence entrepreneurial self-efficacy via mastery experiences, vicarious learning, social persuasion, and physiological states. Our work suggests that hackathons may not boost participants’ confidence in their entrepreneurial abilities (entrepreneurial self-efficacy) and their likelihood of developing a new venture. The findings can inform the design of hackathons and offer insights into mechanisms that promote entrepreneurial self-efficacy and entrepreneurial behavior after a hackathon. (abstract of the paper)
    Keywords: Hackathon; entrepreneurial self-efficacy; innovation process; participation (keywords)
    JEL: L26
  7. By: Marieke Funck (first name last name) (Paderborn University); Benjamin P. Krebs (first name last name of second author) (Capgemini Deutschland GmbH (workplace of second author)); Slawa Tomin (first name last name of third author) (Paderborn University (workplace of third author)); Bernhard A. Wach (first name last name of fourth author) (University of Applied Sciences Munich (workplace of fourth author)); Rüdiger Kabst (first name last name of fifth author) (Paderborn University (workplace of fifth author))
    Abstract: This study investigates the role of national culture in shaping hackathon teams’ ideation outcomes. We propose that hierarchical values decrease and intellectual autonomy and mastery increase the quality of ideas that teams develop over the course of a hackathon. Using survey data, archival data, and the pitch presentations of 284 monocultural hackathon teams from an international hackathon, we find that hierarchical cultural values are negatively associated with the quality of ideas, suggesting that hackathon teams that operate in hierarchical cultures suffer from a ‘liability of hierarchy.’ We also find that teams from societies that emphasize mastery are more likely to develop high-quality ideas, suggesting that teams from societies whose people are encouraged to master or change the natural and social environment are more successful in tackling grand challenges. Contrary to expectations, we find no relationship between intellectual autonomy and the quality of ideas. (abstract of the paper)
    Keywords: Comparative international entrepreneurship; hackathon teams; national culture; idea quality (keywords)
    JEL: L26
  8. By: Pundir, Gaurav
    Abstract: Though MNE-SME linkages accelerate integration of small businesses into global value chains, FDI alone does not suffice. This Perspective argues that supportive host country policies like spurring adoption of digital tools, promoting ease of acquiring certifications, improving access to finance, and attracting investment from MNE suppliers make firms linkage-ready.
    Date: 2023
  9. By: Arthur Félix W. Sawadogo (CEREQ - Centre d'études et de recherches sur les qualifications - ministère de l'Emploi, cohésion sociale et logement - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, IREDU - Institut de Recherche sur l'Education : Sociologie et Economie de l'Education [Dijon] - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE])
    Keywords: Jeune, Création d'entreprise, Cheminement scolaire, Compétence, Projet professionnel, Relation formation-emploi, Théorie, Enquête Génération 2013, Origine sociale, France
    Date: 2022–06–23

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