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on Small Business Management |
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Issue of 2009‒09‒19
ten papers chosen by Joao Carlos Correia Leitao Polytechnic Institute of Portalegre and Technical University of Lisbon |
| By: | Cantner, Uwe; Joel, Kristin; Schmidt, Tobias |
| Abstract: | The aim of this paper is to analyse the effects of knowledge management on the innovation success of firms in Germany. Using a matching procedure on data from the German Innovation Survey of 2003 (Mannheim Innovation Panel), we pair firms applying knowledge management with twin firms with similar characteristics not applying knowledge management. Our focus is on investigating the effects of knowledge management techniques on the economic success of firms with product and process innovations. The results of our matching analysis reveal that firms which apply knowledge management perform better in terms of higher-than-average shares of turnover with innovative products compared to their twins. We do not find a significant effect of knowledge management on the share of cost reductions with process innovation. |
| Keywords: | knowledge management,innovation,matching estimator |
| JEL: | O32 L23 L25 M11 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdp1:200916&r=sbm |
| By: | Sauer, Johannes; Zilbermann, David |
| Abstract: | Using a squential logit model and a mixed-effects logistic regression approach this empirical study investigates factors for the adoption of automatic milking technology (AMS) at the farm level accounting for problems of sequential sample selection and behaviour identification. The results suggest the importance of the farmerâs risk perception, significant effects of peer-group behaviour, and a positive impact of previous innovation experiences. |
| Keywords: | squential logit model, automatic milking technology (AMS), Livestock Production/Industries, Research Methods/ Statistical Methods, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gaae09:53276&r=sbm |
| By: | Müller, Bettina |
| Abstract: | In this paper, I analyse how the survival of new firms is affected by the average ability level in the founding team, the team size, team members' homogeneity with respect to ability, and team members' heterogeneity with respect to education. As a theoretical basis, I apply the O-ring theory (Kremer (1993)). Using a rich employer-employee data set on the whole population of Danish firms founded in 1998, I find that the average ability level in a team and the team size have positive effects on firm survival. Having a team at all is the most crucial factor for the probability of survival of young firms. The degree of homogeneity with respect to ability and the degree of heterogeneity with respect to educations have no effect on the survival probability. |
| Keywords: | Entrepreneurship,firm survival,O-ring theory,start-ups |
| JEL: | D23 L25 L26 M13 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:09041&r=sbm |
| By: | Marco Corsino; Roberto Gabriele; Enrico Zaninotto |
| Abstract: | This paper aims to reconcile the logic behind stochastic models of firm growth and the notion of organizational capabilities as drivers of economic performance. In the proposed behavioral model of bounded rational firms, two mechanisms drive growth: independent stochastic growth of individual opportunities and the process by which firms capture new opportunities. To extend the stochastic framework, this research incorporates behavioral assumptions about the interactions between the firm and the business environment and the mechanism by which firms sense and seize business opportunities. The model generates statistical regularities in firm size, growth rates, and profit differentials between firms that are consistent with observed patterns in real-world settings. The greater the selective power of organizational capabilities, the more the steady-state distribution of firm size appears to deviate from log normality, which provides a potential explanation of various observed departures from the Law of Proportionate Effect. With regard to firm diversity, the distribution of opportunities per firm is skewed; just a few entities account for most of the business opportunities that arise during the simulation period. Moreover, the interaction between the external environment and the internal structure of firms influences heterogeneity in the value of the opportunities that they capture, as well as the persistence of long-run profits. |
| Keywords: | Organizational Capabilities; Firm Size Distribution; Growth Rates; Profitability |
| JEL: | C14 C63 D21 L25 |
| Date: | 2009–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2009/10&r=sbm |
| By: | Armagan, Goksel; Ozden, Altug |
| Abstract: | Dairy farms are quite important to transform Turkish livestock sector into being more productive and competitive in the process of EU integration. The purpose of this study is to determine the socio economic features of dairy farms in Turkey and to determine producersâ individual and management goals in the future. In addition, farmersâ level of participation related to the attitudes, behaviors and subjective norm components are determined and an entrepreneurship index is constructed to determine the factors that influence social economic characteristics of entrepreneurship. The material of the study consists of 167 surveys obtained from Cattle Breeders Association of Turkey in 17 cities through the postal mail in 2007. A five âLikert Scaleâ was used to determine behaviors and attitudes of farmers as well as descriptive statistics. In each category, factor weights were calculated based on factor analyses. Then, the social economic factors that determine entrepreneurship index were estimated using âLogistic Regressionâ. The results indicate that the primary goals of farmers are high income, enjoying the job, better life conditions, earning respect, utilizing the resources, better image, and producing high quality products. When entrepreneurial behaviors and attitudes are examined it was found that most of the farmers aim at earning high profit as a main goal and value dairy milk farming. The logistic regression shows that the factors that determine entrepreneur index are age, experience and area of feed crops. |
| Keywords: | Small-Scale Dairy Farms, Entrepreneur Index, Theory of Planned Behavior, Turkey, Consumer/Household Economics, Livestock Production/Industries, Production Economics, Q12, Q16, |
| Date: | 2009–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa111:52813&r=sbm |
| By: | Paloma López-García (Banco de España); Sergio Puente (Banco de España) |
| Abstract: | Many studies have established that a small number of firms, known as fast-growth firms or Gazelles, create most of the new jobs. In spite of the importance of this topic from a policy-point of view, most of those studies are descriptive and limited to a comparison of the characteristics of the high-growth group with respect to a control group of firms. This paper, on the other hand, performs a multivariate analysis of the determinants of the fast growth of Spanish firms controlling for the possible endogeneity of some variables. We use for that purpose a firm-level database with information for about 200,000 Spanish firms per year between 1996 and 2003. We find that being a start-up increases the probability of fast growth by more than 30 percentage points, conditioned on having survived over the period. Firms with initial higher relative wages and debt ratio, up to a certain point, also experience higher chances of fast growth. Hence, as it was established elsewhere, better access to finance and to human capital are key to increase the number and growth of Gazelles. We also find that high-growth firm sustain their expansion with relatively more debt and fixed-term contracts than the rest of the firms in the sample. |
| Keywords: | Gazelles, Job creation, Firm-level data |
| JEL: | J23 L11 L25 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:0920&r=sbm |
| By: | Antonelli Cristiano (University of Turin); Barbiellini Amidei Federico |
| Abstract: | The paper is an attempt to provide an interpretation of the Italian puzzle in the post-WWII era consisting of very low levels of expenditure in R&D and yet high TFP growth. The research aims to supply the basic tools and the framework for a better understanding of the Italian industry innovation system and of its contribution to the country’s long term growth performance. The study applies the localized echnological change approach to implement the notion of knowledge interactions so as to appreciate: a) the role of external factors in the generation and exploitation of technological knowledge; b) the role of creative adoption in TFP dynamics. The analysis is based on a new dataset containing sectoral and regional series of TFP, capital intensity,wages per labour unit, R&D expenditures, patents granted in the USA, Technological Balance of Payments receipts and expenses, etc. for Italy over the 1950-1990 period. Using a SURE model framework, the impact of user-producer interactions on the dynamic efficiency of the Italian industrial sector is investigated across industries and regions. The significant and distinctive features of Italian innovation dynamics in the post WWII era that result are: i) the emerging and functioning of an innovation system based upon both horizontal dynamics of technological cooperation within industrial districts and vertical dynamic interdependence within industrial filieres; ii) a relevant, albeit incomplete, diffusion/catching up process in Italian regions. |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:200913&r=sbm |
| By: | Maria das Dores B. Moura Oliveira (UPIN - Universidade do Porto Inovação, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto) |
| Abstract: | The environment in which technology transfer takes place plays a key role in defining the best approaches and, ultimately, their success. In the present paper we analyse the extent to which Technology Transfer Offices (TTOs) efficiency is influenced by framework conditions and, in particular, by the innovation policies and programmes. We hypothesise that countries with higher technology transfer efficiency levels would have innovation policies more supportive to technology transfer efforts. Results based on an in depth account and statistical analysis of over 60 innovation policies from Switzerland (widely associated to high levels of technology transference efficiency) and Portugal (a laggard country in this particular) corraborate our initial hypothesis. Switzerland policies overall include more references to knowledge and technology transfer, in the form of licenses, R&D collaboration and spin-offs, than Portuguese policies. One exception is the case of patents (intellectual property rights, in general) with stronger weight in Portuguese policies and, to some extent, the support to spin-off creation and venture capital. The findings highlighted significant differences in variables with impact in technology transfer, namely the priorities addressed, target groups and funding eligibility, aspects of the innovation process targeted and forms of funding. From the exercise it was possible to derive some policy implications. Specifically, we advance that if a country wishes to increase technology transfer efficiency then it should implement a mandate for R&D cooperation between different actors, give priority to fund cutting edge science and research performers, and attribute a higher emphasis on applied industrial research and prototype creation aspects of the innovation process. |
| Keywords: | Technology transfer, innovation policies, technology transfer efficiency |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:334&r=sbm |
| By: | Micheels, Eric T.; Gow, Hamish R. |
| Abstract: | As the economic viability of small farms continues to be an issue facing policy makers and economists alike, a market orientation may be a valuable resource producers can develop as they compete in a marketplace dominated by larger firms. Marketing and strategy scholars have long established the importance of a market orientation in determining firm performance. More recently, scholars have studied the effect of these concepts in agriculture. Extending the literature of market orientation in agriculture, this study examines the concept of a positional advantage and its effect on performance using a sample of small farms in Illinois. Using a sample of 347 Illinois beef producers, we empirically measure and test the construct of positional advantage and test the relationship between positional advantage and subjective performance. Our results indicate that market orientation, entrepreneurship, innovation and learning are first-order indicators of positional advantage and that the positional advantage of a firm is positively related to firm performance. |
| Keywords: | Agriculture, innovation, market orientation, positional advantage, Farm Management, Production Economics, L11, L25, L26, |
| Date: | 2009–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa111:52810&r=sbm |
| By: | Aterido, Reyes; Hallward-Driemeier, Mary; Pages, Carmen |
| Abstract: | Using data on more than 56,000 enterprises in 90 countries, this paper finds that objective conditions in the business environment vary substantially across firms of different sizes and that there are important non-linearities in their impact on employment growth. The paper focuses on four areas: access to finance, business regulations, corruption, and infrastructure. The results, particularly on the impacts of finance and corruption on growth, depend on whether and how the analysis accounts for the possible endogeneity of the business environment. Controlling for endogeneity revises the finding that small firms benefit most from access to finance, particularly for sources of finance associated with investment and growth. The findings are also sensitive to how “small” is defined. Differentiating micro (less than 10 employees) from other small firms shows that, while small firms can be disadvantaged in such an environment, micro firms tend to be proportionally less affected by a weak business climate – and, on occasion, it can help them to grow. Overall, allowing different size classifications provides insights into the impact of the business environment that are lost in more aggregate analyses. |
| Keywords: | Microfinance,Private Participation in Infrastructure,Small Scale Enterprise,Access to Finance,Labor Policies |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5032&r=sbm |