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on Small Business Management |
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Issue of 2010‒07‒24
six papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | MOTHE Caroline; NGUYEN Thi Thuc Uyen |
| Abstract: | Generally speaking, the support of technological innovation has been viewed in terms of input such as R&D and instruments such as legal protection. The literature on innovation highlights the interactive nature of the innovation process in which non-technological activities are essential. However, few works have taken into account the role of other innovative strategies such as marketing and organisational innovation, a role which may differ according to whether the firm is involved in manufacturing or in services. The purpose of this paper is to contribute to fill this gap by highlighting the effects of non-technological innovation strategies on technological innovation. For the empirical work, we used firm-level data drawn from the Community Innovation Survey 2006 for Luxembourg. Our results show that the effects of non-technological innovations differ depending on the phase of the innovation process. Marketing and organisational innovations significantly increase the likelihood of innovation, but not the commercial success of innovation. The study also shows the differentiated effects of the two types of non-technological innovation in manufacturing and service, and confirms the key role of organisational innovation for services. |
| Keywords: | CIS; Innovation; Marketing; Organisation; Technological Innovation |
| JEL: | L25 L80 O30 O32 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2010-01&r=sbm |
| By: | Kirti Sharda |
| Abstract: | Despite the importance of outsourcing firms and the highly competitive nature of the outsourcing industry, there has been minimal examination of outsourcing firm strategy. This paper investigates the strategic focus of 60 outsourcing firms using empirical data collected through survey and semi-structured interviews from 226 top management team respondents. Factor and cluster analysis reveal three outsourcing firm archetypes based on their strategic orientation, namely, super achievers, quality advocates and defenders. The dominance of these archetypes also varies across business activities offered by sample firms. By delineating dimensions underlying outsourcing form strategy and by identifying archetypes of strategic orientation, the paper provides an understanding of key differentiators of outsourcing firm performance. [W.P. No. 2009-12-03] |
| Keywords: | outsourcing, highly competitive, strategic focus, super achievers, quality advocates, defenders, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2671&r=sbm |
| By: | Andrés Rodríguez-Pose (IMDEA Social Sciences Institute); Fabrice Comptour (College of Europe, Bruges) |
| Abstract: | The analysis of clusters has attracted considerable interest over the last few decades. The articulation of clusters into complex networks and systems of innovation – generally known as regional innovation systems – has, in particular, been associated with the delivery of greater innovation and growth. However, despite the growing economic and policy relevance of clusters, little systematic research has been conducted into their association with other factors promoting innovation and economic growth. This paper addresses this issue by looking at the relationship between innovation and economic growth in 152 regions of Europe during the period between 1995 and 2006. Using an econometric model with a static and a dynamic dimension, the results of the analysis highlight that: a) regional growth through innovation in Europe is fundamentally connected to the presence of an adequate socioeconomic environment and, in particular, to the existence of a well-trained and educated pool of workers; b) the presence of clusters matters for regional growth, but only in combination with a good ‘social filter’, and this association wanes in time; c) more traditional R&D variables have a weak initial connection to economic development, but this connection increases over time and, is, once again, contingent on the existence of adequate socioeconomic conditions. |
| Keywords: | clusters; regional innovation systems; innovation; regional economic growth; socioeconomic conditions; regions; European Union |
| Date: | 2010–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2010-15&r=sbm |
| By: | Estrin, Saul (London School of Economics); Mickiewicz, Tomasz (University College London) |
| Abstract: | We analyze theoretically and empirically the impact of the shadow economy on entrepreneurial entry, utilising 1998-2005 individual-level Global Entrepreneurship Monitor data merged with macro level variables. A simple correlation coefficient suggests a positive linear link between the size of the shadow economy and entrepreneurial entry. However, this masks more complex relationships. With appropriate controls and instrumenting for potential endogeneity where required, the impact of the shadow economy on entry is found to be negative, based on a linear specification. Moreover, there is also evidence of nonlinearity: entrepreneurial entry is least likely when the shadow economy is of medium size. We attribute the negative effects of shadow economy on entry to perceived strong competition faced by new entrants when the shadow economy is widespread. At the individual level, an extensive shadow economy has a more negative impact on respondents who are risk averse. In addition, in the economies where property rights are strong, the negative impact of the shadow economy is weaker. |
| Keywords: | shadow economy, entrepreneurship |
| JEL: | O17 D2 L26 P14 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5053&r=sbm |
| By: | Gian Luca Clementi (New York University and RCEA); Thomas Cooley (New York University and NBER); Sonia Di Giannatal (Centro de Investigación y Docencia Económicas) |
| Abstract: | We study the problem of an investor that buys an equity stake in an entrepreneurial venture, under the assumption that the former cannot monitor the latter’s operations. The dynamics implied by the optimal incentive scheme is rich and quite different from that induced by other models of repeated moral hazard. In particular, our framework generates a rationale for firm decline. As young firms accumulate capital, the claims of both investor (outside equity) and entrepreneur (inside equity) increase. At some juncture, however, even as the latter keeps on growing, invested capital and firm value start declining and so does the value of outside equity. The reason is that incentive provision is costlier the wealthier the entrepreneur (the greater is inside equity). In turn, this leads to a decline in the constrained–efficient level of effort and therefore to a drop in the return to investment. |
| Keywords: | Principal Agent, Moral Hazard, Hidden Action, Incentives, Survival, Firm Dynamics |
| JEL: | D82 D86 D92 G32 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2010.88&r=sbm |
| By: | Anil K Gupta |
| Abstract: | Given the economic distress worldwide, the micro, small and medium scale enterprises (MSME) had been hit hard. Large numbers of workers have been laid off because of depressed demand, piled up inventory, pending retrievables and squeezed credit market. A sector which provides maximum employment cannot be left to fend for itself without a major transformation led by the entrepreneurs, policy makers and also other support organizations. There are several innovative options that one can try at four different levels such as (a) stimulating demand, (b) upgrading technology and skills, (c) promoting innovations for developing new products and services and (d) forging new partnerships among the entrepreneurs and also with the R&D institutions, grassroots innovation networks and the technology students. Some of the urgent steps required are: (a) technology audit of MSMEs by formal R&D institutions, (b) Creation of National Innovation and R&D Fund for MSMEs, dedicated for replacing age old materials, technologies and production processes, (c) awards for innovations by and for MSMEs, particularly, engaging youth as attempted by Karnataka Council of Science and Technology and Indian Institute of Science, Bangalore and (d) dedicated R&D centres for various industrial clusters. This is a painful time for the MSMEs and the workers being laid off. A bipartition approach is required among the major political parties to put forward a revitalization plan. Millions of workers and small entrepreneurs will anyway soon vote on the vision of the parties in taking country out of the current stressful situation. [W.P. No. 2009-03-03] |
| Keywords: | Economic distress, medium scale industries, entrepreneurs, policy makers, technology, skills, R&D institutions, grassroots innovation networks, MSME's |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2662&r=sbm |