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on Small Business Management |
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Issue of 2011‒11‒01
fourteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Ana Pérez-Luño (Department of Business Administration, Universidad Pablo de Olavide); Ramón Valle-Cabrera (Department of Business Administration, Universidad Pablo de Olavide) |
| Abstract: | Using the resource-based view, this paper aims to provide a better understanding of the effect of knowledge on innovation. With this general aim in mind, we relate knowledge’s nature (tacit vs. explicit) and the process (e.g., knowledge exchange and combination) to innovation. Using a sample of 105 marketing and 176 R&D managers from 105 innovative firms, we find a positive linear effect of tacit knowledge on innovation and a U-shaped relationship between knowledge exchange and combination and innovation. We also find an enhancing effect of tacit knowledge on the first part of the curvilinear relationship between knowledge exchange and combination and innovation. |
| Keywords: | : R&D, patents, knowledge, inventions |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpbsad:11.04&r=sbm |
| By: | Roberto Antonietti (Department of Economics & Management Marco Fanno, University of Padova); Massimo Loi (European Commission, Joint Research Centre, Econometric and Applied Statistics, ISPRA) |
| Abstract: | Relying on a rich firm-level dataset, we investigate the factors underlying the demand for foreign languages (FL) by Italian manufacturing firms. As main determinants, we focus on innovation and internationalization activities, these latter ranging from export to FDI. In the empirical analysis, we first estimate the probability of demanding for the knowledge of at least one FL through a set of univariate probit models, in which we also control for other characteristics required by firms, like the type of job, the level of education, the type of experience and the knowledge of informatics. Then, we make the demand for FL interact with the demand for these characteristics by estimating a set of bivariate probit models from which we extract the joint and conditional probabilities. Our estimates show that the probability to demand for FL increases with firm size, human capital intensity, engagement in R&D and in exporting goods, whereas the other internationalization activities are not significant when considered individually. Instead, we find a strong and positive effect on FL demand of increasing commitment to internationalization. Moreover, R&D and internationalization acts like observable substitutes on FL demand. When we further make FL demand interact with other required attributes, we find that the impact of increasing exposure to internationalization is higher when the firm also demands for professional occupations with a university degree, for specific experience and for the simultaneous knowledge of informatics. We conclude that FL are a strategic asset for firms and, from a labor demand perspective, are complementary to high levels of human capital. |
| Keywords: | foreign languages, innovation, internationalization, labor demand |
| JEL: | F16 J23 L60 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:48&r=sbm |
| By: | Francesco Crespi; Cristiano Antonelli |
| Abstract: | The paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between virtuous Matthew-effects and vicious Matthew-effects. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones. The empirical analysis is based on Transition Probability Matrices, probit regressions and Propensity Score Matching on around 700 Italian firms in the years 1998-2003. |
| Keywords: | Innovation; R&D subsidies; Matthew effects; past dependence; path dependence |
| JEL: | H25 H32 L52 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:140&r=sbm |
| By: | Alberto Marzucchi |
| Abstract: | The present paper aims to analyse the innovation policies implemented in Italy and Spain. It adopts a multi-level perspective to investigate the effects induced by regional and national public supports and a multi-dimensional approach to disentangle the different types of additionality impacts on firms’ innovation process. In particular input, output and behavioural additionality are considered. The results, obtained through a propensity score matching estimation of the average treatment effect on treated (ATT) implemented on CIS 4 microdata, capture a complex picture. In both the countries only national policies increase R&D investment. As for output additionality, whereas Spanish regional and national policies enhance the economic exploitation of new products and patent applications, Italian interventions boost only process innovation. As for the behavioural additionality, mixed evidences emerge for regional Italian policies, for which some negative effects are also found, Italian national interventions positively affect interactions with other firms and research partners, Spanish policies (both national and regional) induce funded firms to engage in formal training and to interact more with business and research partners. A tentative analysis of the “risk of policy failure†is also provided. Apart from Italian regional policies, for which no significant result is found, the Spearman’s rank correlation coefficients reveal that the (rank of the) ATT calculated for each additionality measure is negatively related to the (rank of the) corresponding coefficient of variation. High TTs are thus correlated with low dispersions. |
| Keywords: | innovation policy, R&D subsidies, additionality |
| JEL: | O31 O38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1110&r=sbm |
| By: | Dutz, Mark A.; Kessides, Ioannis; O'Connell, Stephen; Willig, Robert D. |
| Abstract: | The paper investigates the strength of innovation-driven employment growth, the role of competition in stimulating and facilitating it, and whether it is inclusive. In a sample of more than 26,000 manufacturing establishments across 71 countries (both OECD and developing), the authors find that firms that innovate in products or processes, or that have attained higher total factor productivity, exhibit higher employment growth than non-innovative firms. The strength of firms'innovation-driven employment growth is significantly positively associated with the share of the firms'workforce that is unskilled, debunking the conventional wisdom that innovation-driven growth is not inclusive in that it is focused on jobs characterized by higher levels of qualification. They also find that young firms have higher propensities for product or process innovation in countries with better Doing Business ranks (both overall and ranks for constituent components focused on credit availability and property registration). Firms generally innovate more and show greater employment growth if they are exposed to more information (through internet use and membership in business organizations) and are exporters. The empirical results support the policy propositions that innovation is a powerful driver of employment growth, that innovation-driven growth is inclusive in its creation of unskilled jobs, and that the underlying innovations are fostered by a pro-competitive business environment providing ready access to information, financing, export opportunities, and other essential business services that facilitate the entry and expansion of young firms. |
| Keywords: | Environmental Economics&Policies,Labor Policies,Labor Markets,E-Business,Microfinance |
| Date: | 2011–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5852&r=sbm |
| By: | Giulio Pedrini (Department of Economics, University of Bologna; SDIC, School of Innovation Development and Change, Bologna) |
| Abstract: | This study deals with the attitude of European firms towards personnel policies analysed on a national basis. Provided the relevance of Human Resources (HR) practices in terms of the internal organisation of knowledge of the firm, we assess the main characteristic of personnel policies in 12 European countries both in terms of HR department position within the firm and in terms of human capital development practices. Not only is the issue significant in terms of Human Resource Management but also in terms of the debate on the role of the institutions in determining personnel policies, and notably in terms of the debate on the "varieties of capitalism”. For this purpose the paper develops a cluster analysis among 16 European countries showing the possible influence of institutional models on personnel policies. The same analysis is also developed for intertemporal comparative purposes. The second part of the paper analysis relates personnel policies to the phenomenon of Corporate Universities (CU), being they intended as a vehicle of firms’ capability to react to organisational and technological change. Within the complex relationship between firm’s organization and knowledge CU may in fact represent a consistent way to keep HR departments and firms’ strategies tightly connected, possibly assuming a systemic vision of the firm open to employees and in some cases to other stakeholders. The main features of European Corporate Universities will thus be acknowledged by looking at their main characteristics, with particular reference to their relation with HR departments and to the external factors that have contributed to their development. The paper uses theoretical tools provided by economic literature on training, human capital and knowledge management, combining them with a descriptive analysis of the empirical evidence coming from data on both Corporate Universities and firms’ personnel policy at European level. In particular data on firms’ personnel policy will come from the survey performed in 2005 by Cranet, the largest academic research network dedicated to a comparative analysis of developments in Human Resource Management in public and private organisations. Such data will be integrated by surveys on firms’ training practices at European level and by the (limited) empirical literature dealing with European Corporate Universities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:22&r=sbm |
| By: | Landström, Hans (CIRCLE, Lund University); Harirchi , Gouya (Copenhagen Business School); Åström, Fredrik (Lund UNiversity) |
| Abstract: | Entrepreneurship research has a long tradition and since the 1980s the field has grown significantly. In this study we identify the ‘knowledge producers’ who have shaped the field over time and their core entrepreneurship research works. A unique database consisting of all references in twelve entrepreneurship ‘handbooks’ (or state-of-the-art books) has been developed. The chapters in these handbooks were written by experts within the field, and it can be assumed that the most frequently cited references represent ‘core knowledge’ with relevance to entrepreneurship research. <p> From our analysis, it appears that entrepreneurship is a rather changeable field of research, closely linked to disciplines such as ‘management studies’ and ‘economics’. Over time, the field has become more formalized with its own core knowledge, research specialities and an increasing number of ‘insider works’. However, it is still based on some fairly old theoretical frameworks imported from mainstream disciplines, although during the last decade we have seen the emergence of a number of new field-specific concepts and theories. We argue that to successfully develop entrepreneurship research in the future, we need to relate new research opportunities to earlier knowledge within the field, which calls for a stronger ‘knowledge-based’ focus. We would also like to see greater integration between the fields of entrepreneurship and innovation studies in the future. |
| Keywords: | entrepreneurship; research field; handbooks; bibliometric analysis |
| JEL: | O30 |
| Date: | 2011–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_008&r=sbm |
| By: | LIU, Ju (CIRCLE, Lund University) |
| Abstract: | This paper investigates the structure of the intra-firm innovation networks (IntraINs) and the inter-organisational innovation networks (InterINs) of six leading manufacturing companies in the Great Zurich Area of Switzerland and the Sichuan province of China. It assesses the regional institutional environments (RIEs) of these two regions and explores their impact on the connectedness of both the IntraINs and InterINs of the case companies. It finds that RIE has no apparent impact on the case firms’ IntraINs. The impact of RIE on the InterINs is mainly manifested through its impact on the connections among the outside organisations rather than the direct connections between the focal firms and their outside collaborators. It is suggested that for helping big companies to build up innovation networks, public policy should be deployed to improve the RIE instead of directly bridging firms and the outside organisations which the firms can do it well by themselves. |
| Keywords: | Innovation network; Regional institutional environment; Intra-firm; Inter-organisational; Chin; Switzerland |
| JEL: | O30 |
| Date: | 2011–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_007&r=sbm |
| By: | Corinne Autant-Bernard (Université de Lyon, Lyon, F-69007, France ; Université Jean Monnet, Saint-Etienne,F-42000, France ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France) |
| Abstract: | Preliminary introduced by Anselin, Varga and Acs (1997) spatial econometric tools are widely used in economic geography of innovation. Taking into account spatial autocorrelation and spatial heterogeneity of regional innovation, this paper analyzes how these techniques have improved the ability to quantify knowledge spillovers, to measure their spatial extent, and to explore the underlying mechanisms and especially the interactions between geographical and social distance. It is also argued that the recent developments of spatio-dynamic models opens new research lines to investigate the temporal dimension of both spatial knowledge flows and innovation networks, two issues that should rank high in the research agenda of the geography of innovation. |
| Keywords: | Geography of innovation, spatial correlation, spatio‐dynamic panels, innovation networks |
| JEL: | O31 R12 C31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1120&r=sbm |
| By: | Daria Ciriaci (European Commission); Alessandro Muscio (University of Foggia) |
| Abstract: | Universities have come under increasing pressure to become key drivers of economic development in the age of the knowledge economy. Yet we know very little about the impact of university quality and scientific excellence on the probability of graduates finding jobs. This paper investigates the determinants of Italian graduates’ employability 3-years after graduation, with special reference to university quality measured in terms of research performance and teaching quality. The empirical evidence sheds light on the pivotal role of academic institutions in economic systems, proving that their contribution to employment growth could be substantial. Our analysis supports the promotion of policy initiatives to improve the quality of academic institutions, and the accountability of research results. As we also observe wide regional differences, we argue that university quality emerges as a supply tool for policy makers aiming at boosting young and skilled labour demand in less developed regions. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:49&r=sbm |
| By: | Colombatto, Enrico (Faculty of Economics, University of Turin); Melnik, Arie (Department of Economics, University of Haifa); Monticone, Chiara (Faculty of Economics, University of Turin) |
| Abstract: | We analyze the loans that startup firms obtain from banks by testing our predictions on a set of small, young Italian companies founded during the 1992-2004 period. According to our investigation, the amount of borrowing is determined by (1) the size of the firm, (2), the ability to offer collateral (3) perceived risk. Contrary to expectations, however, the length of the relationship with the lender has a weak influence. |
| Date: | 2011–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:haf:huedwp:wp201111&r=sbm |
| By: | Friesenbichler, Klaus |
| Abstract: | This paper analyzes firm growth patterns in South Asia, using establishment level data from an Interim Enterprise Survey. The survey was conducted by the World Bank in 2009 and 2010 and covers seven countries in the region. The first finding suggests that size in the base year gains importance for employment growth and firm age is statistically insignificant for growth. This contradicts the thought that young and small firms are the bearers of growth. Second, establishments in larger localities expanded faster, confirming the observation of urban centers as growth poles. Third, establishments in areas of severe conflict performed worse than establishments in other areas. Interestingly, the distribution of growth rates shows that both firm growth and fast-growing firms exist in conflict regions. |
| Keywords: | Microfinance,Achieving Shared Growth,Labor Markets,Small Scale Enterprise,Economic Growth |
| Date: | 2011–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5856&r=sbm |
| By: | Marcus Dejardin; Martin Carree |
| Abstract: | Firm entry and exit flows in the retailing and consumer services may be viewed as market equilibrating processes. Local markets with considerable market room and high unemployment ought to be characterized by high subsequent entry rates and low exit rates. However, lack of entrepreneurial alertness may inhibit this. We examine the relationship and obtain empirical results for a range of selected industries in 563 Belgian municipalities. We show that, over a three-year period, (net) entry is positively affected by the presence of local 'market room' and also by future market pull. We find 'unemployment push' effect on entry in easy-to-enter industries, but also a significant effect of unemployment on exit. |
| Keywords: | Entrepreneurship; Entry; Exit; Entrepreneurship; Unemployment |
| JEL: | L80 M13 R12 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nam:wpaper:1114&r=sbm |
| By: | Nilsson, Magnus (CIRCLE, Lund University); Moodysson, Jerker (CIRCLE, Lund University) |
| Abstract: | The framework of regional innovation systems highlights the systemic nature of economic development and the importance of coordination of policy activities. Such coordination presupposes an understanding of the underlying problems and how they can be addressed. Generic problems in innovation systems refer to issues of lack of resources, negative lock-in, and structural or functional fragmentation. In spite of this, there are few good examples of systematic analyses of innovation systems that take into account both structural and functional properties of the system. This paper addresses this issue by offering a framework for analyzing innovation system problems, functions, activities, and actors and, based on this, offers insights with regard to the role of regional actors as coordinators of innovation system activities. |
| Keywords: | Regional innovation systems; innovation policy; systemic problems |
| JEL: | O30 |
| Date: | 2011–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2011_009&r=sbm |