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on Small Business Management |
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Issue of 2009‒11‒14
eighteen papers chosen by Joao Carlos Correia Leitao Polytechnic Institute of Portalegre and Technical University of Lisbon |
| By: | Sungki Lee; Donghyuk Choi; Yeonbae Kim (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | Firms undertake various R&D activities to generate commercializable innovations and to create and sustain competitive advantage. However, mere exploitation of various R&D opportunities has no conclusive impacts on a firm¡¯s competitive advantage in innovation, since R&D activities might closely interact with each other and their appropriate combination would have a synergy effect on a firm¡¯s innovation performance. The aim of this paper is to explore various contextual factors behind synergy effects derived from interactions between R&D activities based on the economic and technological sources of the R&D complementarities, such as absorptive capacity, knowledge flows, and uncertainty, as well as to examine the existence of complementarities between corporate R&D activities, using the 2004 innovation survey data of Korean manufacturing industries. The corporate R&D activities considered in this study are in-house R&D, R&D cooperation, and commissioned R&D. Our research concludes that there exists a complementary relationship between a firm¡¯s internal R&D and R&D cooperation activity. In addition, our study discovered that the complementarity between R&D activities relies on the organizational contextualities?a firm¡¯s cumulative patent stocks, perceived level of imitation risk, experience of external knowledge acquisition, and information inflows from public research institutes and universities?that lie hidden under the firm-specific activities. |
| Keywords: | Contextuality, Complementarity, Innovation, In-house R&D, R&D cooperation, Commissioned R&D |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200917&r=sbm |
| By: | Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | In the era of ¡®open innovation¡¯, external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration, and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has important implication for firms in selecting appropriate strategy for accessing external knowledge. |
| Keywords: | external knowledge, open innovation, knowledge sourcing method, technology innovation |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200907&r=sbm |
| By: | Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | This paper analyses the effects of different external knowledge sourcing methods on service innovation performance. We identify three external knowledge sourcing methods: informal information transfer, R&D collaboration, and technology outsourcing. Three hypotheses are established to examine the relationship between these three external knowledge sourcing methods and service innovation. Our result shows that the relationship between the extent of external knowledge sourcing and service innovation performance varies depending on the particular external knowledge sourcing method. This research grants important implication to firms in selecting an appropriate external knowledge sourcing strategy in service industry. |
| Keywords: | service innovation, external knowledge sourcing method, informal information transfer, R&D collaboration, technology outsourcing |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200908&r=sbm |
| By: | Tom Broekel; Thomas Brenner |
| Abstract: | A growing body of work emphasizes the importance of regional factors for regional innovativeness. In this paper, about seventy variables approximating the social-economic characteristics of regions are aggregated to twelve regional factors. In four industry-specific set-ups their influence on firms’ innovativeness is tested. The study confirms that inter-industrial differences exist in the importance of these factors. In the empirical analyses a log-linear model is compared with a linear approach. While both are theoretically problematic it is shown that the log-linear model performs better in the empirical assessment. |
| Keywords: | regional innovation performance, regional innovativeness, knowledge production function, industry comparison, German regions |
| JEL: | O18 R11 R12 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0917&r=sbm |
| By: | Klein, Peter G. (University of Missouri); Mahoney, Joseph T. (University of Illinois at Urbana-Champaign); McGahan, Anita M. (University of Toronto); Pitelis, Christos N. (University of Cambridge) |
| Abstract: | This paper explores innovation, experimentation, and creativity in the public domain and in the public interest. Researchers in various disciplines have studied public entrepreneurship, but there is little research specifically on the nature, incentives and constraints of public entrepreneurship to innovate in the public interest. We begin by extending concepts of the entrepreneurial firm to include greater interactions in the public domain, and then turn to the role of entrepreneurial firms in fostering institutional change. This focus points toward opportunities for integrating transaction-costs, political and international business theories to achieve a more refined institutional theory of firm-government interactions that incorporates entrepreneurial agency as a principal mechanism for innovating in the fulfillment of public and private interests. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:illbus:09-0106&r=sbm |
| By: | Chen, Fang (Chinese Academy of Sciences); Mohnen, Pierre (UNU-MERIT, Maastricht University, and CIRANO) |
| Abstract: | After joining the World Trade Organization (WTO), China witnessed a major inflow of Foreign Direct Investment (FDI). Many famous automobile firms of developed countries were attracted to invest in China to cooperate with domestic firms. This paper uses firm-level data of the Chinese automobile industry to analyze the determinants of, and the interrelationships between, innovation input and innovation output, and in particular whether FDI had any influence on these two aspects of innovation. A generalized tobit model will be estimated for both R&D and the share of innovative sales for 2002/2003 and 2005/2006. The findings show that FDI firms are less R&D intensive but, when they innovate in new products, they are more product innovative than domestic-funded firms. |
| Keywords: | FDI, China, R&D, innovation, automobile industry |
| JEL: | O14 L62 F21 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2009044&r=sbm |
| By: | Thi Quynh Trang Do (Centre d'Economie de la Sorbonne) |
| Abstract: | Economic literature has introduced large theories on critical role of micro and small firms (MSEs) in the economic development. Particularly in developing countries, the development of the sectore has become a channel of poverty reduction by providing job opportunities and creating welfares. Besides, MSEs might be seen as embryonic form of sizable firms in the future, then contribute to the innovation process and economic growth. Consequently, promoting the growth of micro and small firms is in the center of interest of many developing countries, so does the case of Vietnam. By investigating the importance of firm characteristics with regard to the barriers that facing MSE in the growth process, this analysis brings some more light into the sector that unfortunately is still an under researched area. Using firm sample drawing from the Survey on Household's Living Standard in 2004 in Vietnam, we find that firms with different characteristics, among them : firm size, firm age, legal status, industrial sector and location, experiencing different levels of constraints. The level of signification of firm characteristics differs from barriers to barriers. In general, more sizable firms have often to face with higher level of constraints. These results enable policymakers to create more suitable MSEs fostering policies which better account for the different obstacles due to firm heterogeneity. |
| Keywords: | Firm performance, micro-small enterprises, barriers to growth, Vietnam. |
| JEL: | D21 L25 O53 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09069&r=sbm |
| By: | Michael Wyrwich (Friedrich Schiller University Jena, Department of Economics) |
| Abstract: | The present paper sheds light on how growth of young firms is affected by expansive strategies and the socioeconomic heritage of their main actors. "Socioeconomic heritage" has to do with socialization, prior socioeconomic circumstances, and regional growth conditions; the term is elaborated upon and further defined in this study. The empirical analysis is carried out both for West Germany - a mature market economy - and for East Germany, which operated under a centrally planned economy until German reunification in 1990. The main finding of the paper is that the involvement of West Germans in East German start-ups has a favourable effect on these firms' chances to grow rapidly. This effect is attributed to the fact that West Germans are more likely to possess person-related and situation-related factors necessary for growing a business in a market economy. The results are more ambiguous as to the influence of expansive strategies on fast growth. |
| Keywords: | Entrepreneurship, Rapid firm growth, Strategy, Management, West Germany, East Germany |
| JEL: | L26 M13 O1 O18 P25 |
| Date: | 2009–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-092&r=sbm |
| By: | Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | Recent research identify the type of partner as a critical factor determining the effect of R&D collaboration on innovation. Most firms tend to utilize various types of R&D collaboration partners simultaneously, and partnerships between different types of partners show different properties. Thus, the effect of R&D collaboration may vary depending on partner types. This study considers four partner types: competitors, customers, suppliers, and universities. It empirically examines the effect of R&D collaboration with each type of partner on product innovation,employing the Korea Innovation Survey data. Results show that R&D collaborations with customers and universities have a positive effect on product innovation, whereas R&D collaborations with suppliers and competitors have an inverted-U shape relationship with product innovation. |
| Keywords: | R&D collaboration, product innovation, competitors, customers, suppliers, universities |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200906&r=sbm |
| By: | Luiz Alberto Esteves (Department of Economics, Universidade Federal do Paraná) |
| Abstract: | The aim of this paper is to estimate the effect of manufacturing Brazilian firms´ knowledge production on their conditional probability of internationalization. In this way, an empirical study using (i) microdata from World Bank Investment Climate, Brazil 2003 and (ii) nonlinear instrumental variables regression method is provided. Our finding suggests that manufacturing firms´ conditional probability of starting to export can be increased from 23 until 70 percent points, depending from firms’ capacity to innovate. |
| Keywords: | innovation; internationalization; probit; instrumental variables |
| JEL: | O31 F10 C35 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:fup:wpaper:0090&r=sbm |
| By: | Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Start-ups mostly have only limited internal financing. Post-entry performance should thus strongly depend on the availability of new external capital. In this study we analyze the impact of financial constraints on the performance of Swiss start-ups. Since we use cohort data, we have for some start-ups data at different points in time. This allows us to analyze whether the effect of the availability of external capital on firm performance changes with increasing age of the firms. To measure the impact of external capital as a whole, we include separate indicators for debt and venture capital constraints. Using different performance measures, we find that debt constraints are not only a problem of the first years. While the negative impact of debt constraints on firm survival disappears with increasing age of the firms, profit is persistently negative affected by debt constraints. Debt constraints, however, do not impact employment growth of the firms, not even in the first years. The availability of venture capital is of lower relevance for the post-entry performance. Surviving and growth of the start-ups is not affected by venture capital constraints. However, firms with limited access to venture capital persistently have problems to attain profit break-even. |
| Keywords: | start-ups, performance, financial constraints, firm age |
| JEL: | M13 L25 G32 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:09-241&r=sbm |
| By: | Dong-hyun Oh; Hans Loof; Almas Heshmati (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | Iceland, one of the smallest European economies, was hit severely by the 2008-financial crisis. This paper uses a firm-level Community Innovation Survey (CIS) data set to consider the economy in the period preceding the collapse of its financial system. We examine the linkage between the crisis and innovativeness from the perspective of technical efficiency by means of the Data Envelopment Analysis of 204 randomly selected firms. The results suggest that a substantial fraction of the Icelandic firms can be classified as non-efficient in their production process. The production scale of many manufacturing firms is too small to be considered technically efficient, while services firms typically use excessive resources in their production process. A remarkably weak performance in transforming R&D and labor efforts into successful innovations is observed. Based on the empirical results, suitable policy implications are suggested to remedy the inoptimal production structure and help economic recovery. |
| Keywords: | Technical efficiency, R&D, Innovation, Productivity, Manufacturing,Services, Iceland |
| JEL: | C67 D24 D57 L25 L60 L80 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200916&r=sbm |
| By: | Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | This study analyzes the effects of knowledge characteristics on the extent of organizational effort for knowledge transfer. In this paper, three knowledge characteristics that affect organizational behavior for knowledge transfer are identified based on knowledge-based views and organizational learning theory: tacitness, difficulty, and the importance of knowledge. We establish three hypotheses on the effects of these three knowledge characteristics on the extent of effort for knowledge transfer (i.e., the frequency of contact with knowledge source), and provide empirical tests employing the dataset from project teams in a multinational consulting firm via the OLS model. Results show that tacitness, difficulty, and importance have positive effects on the frequency of contact with knowledge sources. This implies that firms exert more effort to acquire the knowledge when the knowledge is tacit, difficult, or important |
| Keywords: | knowledge transfer, knowledge characteristics, tacitness, difficulty,importance |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200905&r=sbm |
| By: | Ghimisi, Stefan/St; Popescu , Gheorghe |
| Abstract: | The purpose of this paper is to investigate mechanisms of knowledge transfer between firms and universities. Universities have become increasingly involved in technology transfer by establishing offices of technology transfer, business incubators, and technology parks. This paper presents some aspects of technology transfer centers, specific activities in these entities, with a real example, UCB-Pitt, an entity founded the University Constantin Brancusi of Targu Jiu. |
| Keywords: | tehnology transfer; knowledge; university |
| JEL: | A12 D24 |
| Date: | 2009–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:18531&r=sbm |
| By: | Uwe Cantner (Department of Economics, Friedrich Schiller University of Jena); Sarah Kösters (DFG RTG 1411 "The Economics of Innovative Change", Friedrich Schiller University of Jena) |
| Abstract: | This paper investigates the allocation of R&D subsidies given to start-ups. Considering the coexistence of various R&D project schemes, we take an aggregate view and analyze the determinants of the receipt of (any) R&D subsidies within the first three business years of the start-ups. We argue that policymakers and funding authorities follow a strategy of "picking the winner". Analyzing a unique data set of start-ups in the East German state of Thuringia, we conduct logistic regressions and find ambiguous support. R&D subsidies are given to start-ups with innovative business ideas, especially academic spin-offs. On the other hand, the ambitions and the patent stock of the founder(s) do not decide the receipt of R&D subsidies. These insights into the overall allocation of R&D subsidies are important since they have implications for policy effectiveness and efficiency. The implied difficulties of policy targeting fundamentally question the massive subsidization of private R&D. |
| Keywords: | Start-ups, R&D subsidies, Subsidy allocation |
| JEL: | O38 L26 L52 |
| Date: | 2009–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-093&r=sbm |
| By: | Casadesus-Massanell, Ramon (Harvard Business School); Ricart, Joan E. (IESE Business School) |
| Abstract: | The competitiveness of a country is the result of the competitiveness of its firms. The competitiveness of firms is partly determined by how their business models interact with the environment to produce offerings with added value. This chapter contributes to the reflection on Catalonia's competitiveness by using the business model concept to highlight the need to adapt business models to new realities in the Catalan environment. Catalan firms have made little effort to reconfigure their business models after being affected by important external shocks. We derive recommendations by presenting and analyzing examples of companies that have innovated in their business models. Business models sit at the core of competitiveness and should be the focus of managers willing to create efficient firms that foster sustained wealth in Catalonia. |
| Keywords: | Strategy; Business; Innovation; Internationalization; competitiveness; Firms; |
| Date: | 2009–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0807&r=sbm |
| By: | Cassiman, Bruno (IESE Business School); Golovko, Elena (Tilburg University) |
| Abstract: | Exporting firms are typically the more productive firms in an economy. Based on this observation, policy makers typically enact policies to stimulate exportation by domestic firms. In this chapter, we argue that firms make productivity enhancing investments and as a result the more productive firms start an export activity, which might make these firms even more productive. We find evidence of two types of productivity enhancing investments made by Catalan firms: both the fact that a firm imports some of its inputs and that the firm has innovated in the previous year seem to positively affect productivity and, hence, the decision to start exporting. We also find that there is an important difference between the effects of product innovations versus process innovations: product innovations seem to matter more for the export decision of Catalan firms while process innovations have little or no effect on this decision. Overall, we find that importing, innovating and exporting are strongly complementary activities. At the same time, firms develop these activities sequentially. Therefore, it seems that stimulating firms to become active in the international sourcing market and generate (product) innovations might be more productive policy measures than stimulating firms to enter the export market directly. |
| Keywords: | Firms; Productivity; Catalonia; Innovation; |
| Date: | 2009–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0808&r=sbm |
| By: | Mas, Nuria (IESE Business School) |
| Abstract: | Biotechnology is considered one of the key engines to achieving long-term sustainable growth. Catalonia is the main player in the Spanish biotechnology market, boasting 35 percent of the Spanish biotech R&D and 24 percent of its firms. In this report, we analyze the state of the Catalan biotechnology sector, focusing on its competitive advantages and disadvantages relative to other European biotech clusters. Our findings indicate that, in Catalonia, the biotechnology sector has the potential to affect sectors that represent 10 percent of the Catalan GDP and that employ 9.3 percent of the Catalan workforce. However, Catalan biotech is still quite small in relation to the top European bioclusters and it is only slowly catching up in some of its strategic components. The main advantages of the Catalan biotechnology sector are, first, its research effort, which has been improving steadily, thus allowing Catalonia to start closing the gap with Europe, especially in industrial biotechnology. Second, the attractiveness of Barcelona to draw key staff. The main challenge it faces is access to funding and the fact that the size of related industries in the area is smaller than their size in the top European biotech regions. Finally, 65 percent of Catalan biotechnology firms are devoted to the health sector, while the performance of biotech research in the industrial sector has been particularly competitive. |
| Keywords: | Biotechnology; clusters; sector |
| Date: | 2009–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0805&r=sbm |