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on Small Business Management |
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Issue of 2012‒01‒18
nine papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | B. SCHOONJANS; P. VAN CAUWENBERGE; H. VANDER BAUWHEDE |
| Abstract: | This paper empirically assesses whether knowledge networking affects the growth of small service firms. More specifically, using a large, unbalanced panel data set for the period 1992- 2009, we investigate whether participation in a knowledge network called PLATO is positively related to service firm growth. Our results show that knowledge networking has a highly significant positive effect on the growth in net assets and added value of service firms. Furthermore, we demonstrate that the positive effect of knowledge networking on firm growth is significantly larger for service than for manufacturing firms, indicating that industry drives networking success. |
| Keywords: | networking, growth, service sector, SME, knowledge |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:11/746&r=sbm |
| By: | E. Santarelli; H. T. Tran |
| Abstract: | This study investigates the effects of human capital, social capital and their interaction on the performance of 1,398 Vietnamese new-born firms. Operating profit is used as the measure of success. Human capital is captured by individual-level professional education, start-up experience, and learning. Whereas the first two dimensions of human capital are measured with traditional indicators, we define learning as ability to accumulate knowledge to conduct innovation activities (new product introduction, product innovation and process innovation). Social capital is measured as benefits obtained from personal strong-tie and weak-tie networks. Key findings are three-fold: (i) human capital strongly predicts firm success, with learning exerting a statistically significant positive impact on operating profit; (ii) benefits from weak ties outweigh those from strong ties; (iii) interaction of human capital and social capital displays a statistically significant positive effect on new-firm performance. |
| JEL: | L26 L25 L14 J24 O53 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp803&r=sbm |
| By: | Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | This paper is a non-technical introduction to the use of three micro-econometric tools that have only recently been applied in empirical investigations of the links between international firm activities and firm performance. It shows why it is important to use these methods, how to use them in practice and which new insights are found in empirical applications. Topics include the role of extremely different firms (or outliers) in the computation of performance premia of internationally active firms; different performance premia over the distribution of the performance variable when unobserved heterogeneity matters; and the analysis of causal effects of different intensities of international firm activity on firm performance. |
| Keywords: | Robust fixed effects estimation, fixed-effects quantile regression, generalized propensity score, international firm activity, firm performance |
| JEL: | F14 C21 C23 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:227&r=sbm |
| By: | Alexander Vogel (Institute of Economics, Leuphana University of Lüneburg, Germany); Joachim Wagner (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | This study tests whether the KombiFiD sample can be regarded as a high quality data set for empirical research on enterprises from business services industries. It performs an empirical investigation using the original data in a first step and replicates exactly this investigation using the KombiFiD sample in a second step. We find that large business services firms are oversampled in the KombiFiD agreement sample which leads to a higher share of exporting business services firms compared to the original data. After controlling for firm size and industries results based on the original data and on the KombiFiD sample are highly similar for West German firms. Therefore, the KombiFiD sample can be regarded as a sound base for empirical studies on West German firms from business services industries. For East Germany, however, the number of business services firms seems to be too small for empirical analyses, at least in the field of firm’s export participation. |
| Keywords: | KombiFiD, Germany, business services firms |
| JEL: | C81 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:226&r=sbm |
| By: | Roy Thurik; David Audretsch; Isabel Grilo |
| Abstract: | The present document analyzes the linkages between globalization, entrepreneurship and the role of regions. After dealing with the meaning of globalization, the regional dimension of the response to globalization is described where downsizing, knowledge spillovers and agglomeration are the essential phenomena. Next, it is shown how these developments have led to the emergence of new entrepreneurial activities. Subsequently, more details are given on the effects of the information and communication (ICT) revolution on the organization of industry in a globalized economy. Finally, it is concluded that policies promoting both knowledge investments as well as entrepreneurship have become prominent for many regions in the most developed countries. |
| Date: | 2012–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201201&r=sbm |
| By: | Gans, Joshua S. (Rotman School of Management); Persson, Lars (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This paper examines the interaction between intellectual property protection and competition policy on the choice of entrepreneurs with respect to commercialization as well as the rate of innovation. We find that stronger intellectual property protection makes it more likely that entrepreneurs will commercialize by cooperating with incumbents rather than competing with them. Consequently, we demonstrate that competition policy has a clearer role in promoting a higher rate of innovation in that event. Hence, we identify one reason why the strength of the two policies may be complements from the perspective of increasing the rate of entrepreneurial innovation. |
| Keywords: | Entrepreneurs; Innovation; Commercialization; Intellectual property law; Competition law |
| JEL: | O31 |
| Date: | 2012–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0895&r=sbm |
| By: | Dutz, Mark A.; Sharma, Siddharth |
| Abstract: | The paper explores existing patterns of green innovation and presents an overview of green innovation policies for developing countries. The key findings from the empirical analysis are: (1) frontier green innovations are concentrated in high-income countries, few in developing countries but growing; (2) the most technologically-sophisticated developing countries are emerging as significant innovators but limited to a few technology fields; (3) there is very little South-South collaboration; (4) there is potential for expanding green production and trade; and (5) there has been little base-of-pyramid green innovation to meet the needs of poor consumers, and it is too early to draw conclusions about its scalability. To promote green innovation, technology and environmental policies work best in tandem, focusing on three complementary areas: (1) to promote frontier innovation, it is advisable to limit local technology-push support to countries with sufficient technological capabilities -- but there is also a need to provide global technology-push support for base-of-pyramid and neglected technologies including through a pool of long-term, stable funds supported by demand-pull mechanisms such as prizes; (2) to promote catch-up innovation, it is essential both to facilitate technology access and to stimulate technology absorption by firms -- with critical roles played by international trade and foreign direct investment, with firm demand spurred by public procurement, regulations and standards; and (3) to develop absorptive capacity, there is a need to strengthen skills and to improve the prevailing business environment for innovation -- to foster increased experimentation, global learning, and talent attraction and retention. There is still considerable progress to be made in ranking green innovation policies as most appropriate for different developing country contexts -- based on more impact evaluation studies of innovation policies targeted at green technologies. |
| Keywords: | Environmental Economics&Policies,E-Business,ICT Policy and Strategies,Technology Industry,Climate Change Mitigation and Green House Gases |
| Date: | 2012–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5932&r=sbm |
| By: | Haufler, Andreas (University of Munich); Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Many governments promote small businesses for the dual reasons of fostering ‘breakthrough’ innovations and employment growth. In this paper we study the effects of tax and subsidy policies on entrepreneurs’ choice of riskiness of an innovation project and on their mode of commercializing the innovation (market entry versus sale). Limited loss offset provisions in the tax system induce entrepreneurs to choose projects with too little risk and this problem arises primarily when entrepreneurs market their product themselves. When innovations reduce only the fixed costs of production this leads to a fundamental policy trade-off between the declared goals of promoting employment and innovation in small, entrepreneurial firms. When innovations reduce variable production costs, policies to promote small businesses may even be unambiguously harmful. |
| Keywords: | Entrepreneurship; Innovation; Corporate taxes; Firm growth |
| JEL: | H25 L13 M13 O31 |
| Date: | 2012–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0896&r=sbm |
| By: | Marco Vivarelli |
| Abstract: | This paper critically discusses the theoretical and empirical literature on the quantitative and qualitative employment impact of technological change, compares the relative explanatory power of the competing theories, and explains in detail the macro and micro evidence on the issue, with reference both to the advanced economies and the developing countries (DCs). |
| Keywords: | Science & Technology :: New Technologies, Science & Technology, Technology, innovation, employment, skill, skill-biased technological change |
| JEL: | O33 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:61058&r=sbm |