|
on Small Business Management |
|
Issue of 2010‒09‒03
eight papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Parker, Simon (University of Western Ontario, London, ON, Canada.) |
| Abstract: | This article describes the academic contributions of the 2010 recipient of the Global Award for Entrepreneurship Research, Professor Josh Lerner of the Harvard Business School. Lerner’s empirical research on the inter-relationship between venture capital, innovation and entrepreneurship has greatly extended and improved our understanding of one of the major drivers of growth in modern economies. The first part of this article explains Lerner’s contributions as regards the structure and organization of the venture capital industry. Later, his most important publications on entrepreneurship, innovation and intellectual property rights are surveyed. Several aspects of Lerner’s policy-oriented work are then outlined, before the article closes with a brief conclusion. |
| Keywords: | Global Award; Venture capital; Patent; Entrepreneurship; Innovation |
| JEL: | G24 L26 O31 |
| Date: | 2010–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0233&r=sbm |
| By: | Mili Shrivastava (Graduate College "The Economics of Innovative Change" and Entrepreneurship, Growth and Public policy group, Max Planck Institute of Economics, Jena, Germany) |
| Abstract: | Spinoffs firms are an important source of industry dynamics and innovation. While an emerging body of literature identifies strategic disagreements and ideas as determinants of spinoffs, neither of them can completely explain the spinoff process. Mere disagreements or brilliant flashes of ideas do not always lead to spinoffs. This study brings individual level determinants at the forefront in spinoff formation. Based on insights from the occupational choice theory, we argue that spinoff process is a distinctive class of entrepreneurial entrants and entrepreneurial talent is a major determinant in formation of spinoffs. Entrepreneurial talent modulates the impact of strategic disagreements and ideas on the decision to spi |
| Keywords: | Spinoffs, Entrepreneurship, Occupational choice, Disagreements |
| JEL: | D00 J24 L2 |
| Date: | 2010–08–25 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-059&r=sbm |
| By: | Marianne Paasi |
| Abstract: | The paper analyses the European Research Area policy (ERA) from the innovation perspective. The Lisbon Treaty gives the Union the objective of free circulation of researchers, scientific knowledge and technology. The five ERA initiatives implement the ERA policy on the basis of voluntary cooperation. The ERA and innovation are linked through the business sector R&D investment. The economic value of the ERA comes from accelerated cross-European knowledge spillovers reducing the cost of inventing. In general, important obstacles hinder the knowledge spillovers making them largely intra-national. These obstacles arise due to the incentives in providing and sharing knowledge and to costs of capturing knowledge spillovers. Funding of knowledge from national budgets and uncertain benefits from knowledge circulation across the heterogenous member states complicates situation further. The analysis of Joint Programming and Better Careers and Mobility initiatives reveals multiple sources of obstacles to cross-European knowledge spillovers. Weak incentives in the member states and limited possibilities at the EU level block the implementation of ERA. In this constellation, the ERA initiatives need to support openness and competition in publicly funded research and universities as well as better models of scientific management to guarantee highest scientific quality. Accelerated (ERA) knowledge spillovers require extended and dynamic markets. |
| Keywords: | European Research Area (ERA), knowledge spillovers, innovation, incentives, voluntary cooperation |
| Date: | 2010–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2010/40&r=sbm |
| By: | Tomohiro MACHIKITA (Inter-Disciplinary Studies Center, Institute of Developing Economies, Japan); Shoichi MIYAHARA (School of Economics, Aoyama Gakuin University, Japan); Masatsugu TSUJI (Graduate School of Applied Informatics, University of Hyogo, Japan.); Yasushi UEKI (Bangkok Research Center-Japan External Trade Organization, Thailand) |
| Abstract: | This paper examines the effects of internal and external sources of knowledge on the introduction of new products based on new technologies or information at firms which responded to a questionnaire survey conducted in four Southeast Asian countries. The results confirm that local firms make full use of locally available sources of new technology or information to achieve product innovation. On the other hand, foreign-owned firms depend mainly on internal R&D capacities and also possibly upon cooperation with local universities. These findings highlight the fact that local firms complement their lack of internal resources for product innovation with external knowledge sources. Foreign-owned firms utilize their international production networks to concentrate their resources on innovative activities. |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2010-08&r=sbm |
| By: | Jaya Prakash Pradhan |
| Abstract: | The liberalization of economic policies in the last two decades and intensifying market competition tend to be a cause of policy concern for the survival of SMEs in emerging economies like India. These SMEs account for the largest chunk of industrial units and employment in the national economy. Yet, most of them are competing with deeply inadequate resources, especially by means of weak technological capabilities. The present study has provided not only preliminary estimates on SME R&D investments in Indian manufacturing and their broad trends and patterns, but also contributed to the understanding of factors driving the SME in-house R&D activities. It shows that Indian SMEs continue to be vulnerable among all firms as they have the lowest incidence of doing in-house R&D and their R&D intensities have fallen in the last decade. Based on the results from three-step Censored Quantile Regression, this study has suggested a set of useful policy implications for enhancing SME R&D. |
| Keywords: | SMEs; R&D; Business Groups; Foreign Firms. |
| JEL: | L11 L22 F23 |
| Date: | 2010–08–14 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2010_14&r=sbm |
| By: | Tomohiro MACHIKITA (Inter-Disciplinary Studies Center, Institute of Developing Economies, Japan); Masatsugu TSUJI (Graduate School of Applied Informatics, University of Hyogo, Japan); Yasushi UEKI (Bangkok Research Center, IDE/JETRO, Thailand) |
| Abstract: | This paper examines the effects of information and communication technologies (ICTs) on business performance, using firm-level data obtained through a questionnaire survey in four ASEAN countries (Indonesia, The Philippines, Thailand and Vietnam). Sources of information and new technologies exchanged via ICTs by firms are also explored to investigate the mechanism behind ICT adoption. Empirical results verify that the introduction of ICT to reorganize business processes is significantly correlated with business performance, in particular the development of export markets and improvement of production management. ICTs facilitate access to information and technologies accumulated in in-house departments and joint-venture (JV) affiliates of the respondent firms. There are considerable differences between multinational companies (MNCs)/JVs and local firms. MNCs/JVs make use of information and technologies obtainable via ICTs from their own R&D departments, JVs established with local partners and foreign-owned suppliers/customers to improve factory management, mostly for product quality improvement and production cost reduction. In contrast, local firms interconnect their own R&D departments via ICTs to enhance their business performance in broader areas than MNCs/JVs, including the development of export markets. |
| Date: | 2010–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2010-07&r=sbm |
| By: | Alexy, O.; Block, J.H.; Sandner, P.G.; Wal, A.L.J. Ter |
| Abstract: | How does the social capital of venture capitalists (VCs) affect the funding of start-ups? Extant entrepreneurship literature conceptualizes a substitute effect between the social and financial capital that new firms attain from their investors. On the contrary, by building on the rich social capital literature, we hypothesize a positive effect of VCs’ social capital, derived from past syndication, on the amount of money that start-ups receive. Specifically, we argue that both structural aspects of VCs’ social network, such as the number of connections and the spanning of structural holes, and relational aspects, such as the diversity of network partners’ attributes, provide VCs with superior access to information about current investment objects and opportunities to leverage them in the future, increasing their willingness to invest in these firms. Our empirical results, derived from a novel dataset containing more than 5,000 funding rounds in the Internet and IT sector, strongly confirm our hypotheses. Both structural and relational attributes of VCs’ syndication networks have a significant influence on the funds received by start-up firms, highlighting the importance of a social capital perspective on new venture funding. We discuss the implications of our findings for theories of venture capital and entrepreneurship, showing that the role and effect of VCs’ social capital on start-up firms is much more complex than previously argued in the literature. |
| Keywords: | venture capital;social capital;start-ups;social networks;structural holes |
| Date: | 2010–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765020274&r=sbm |
| By: | Rodrigues, S.B. |
| Abstract: | Business is becoming increasingly international. At the same time, governments are intervening more in the conduct of business. A further development is the growing significance of emerging economies, many of which have a tradition of active government involvement with business. Taken together, these trends make it imperative to understand the relationships between firms and their institutional contexts. Conventional theories adopt an over-rationalized view of these relationships international business. Their apolitical perspective misses the fact that in order to build and maintain international operations, firms need to develop political relations with governments and institutions in home countries and abroad. The aim of this lecture is to develop an alternative perspective with particular reference to the internationalization of firms, large and small. This considers how multinationals gain international positions through bargaining power with foreign governments. By contrast, SMEs face liabilities in dealing with foreign governments and instead often have to achieve internationalization through networking with other SMEs, with domestic communities and support agencies via various forms of social innovation. The lecture concludes that political and social innovation perspectives open new research avenues in the field of international business. |
| Keywords: | multinationals;small and medium enterprises;politics;markets;institutions;bargaining power;influence;social innovation;internationalization;evolution;co-evolution;environment |
| Date: | 2010–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:euriar:1765020068&r=sbm |