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on Small Business Management |
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Issue of 2013‒01‒19
eleven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Harhoff, Dietmar |
| Abstract: | Innovation processes within corporations increasingly tap into international technology sources, yet little is known about the relative contribution of different types of innovation channels. We investigate the effectiveness of different types of international technology sourcing activities using survey information on German companies complemented with information from the European Patent Office. German firms with inventors based in the US disproportionately benefit from R&D knowledge located in the US. The positive influence on total factor productivity is larger if the research of the inventors results in co-applications of patents with US companies. Moreover, research cooperation with American suppliers also enables German firms to better tap into US R&D, but cooperation with customers and competitors does not appear to aid technology sourcing. The results suggest that the “brain drain” to the US can have upsides for corporations tapping into American know-how. |
| Keywords: | technology sourcing; knowledge spillovers; productivity; open innovation |
| JEL: | O32 O33 |
| Date: | 2012–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:msmdpa:14327&r=sbm |
| By: | Olfa KAMMOUN; Mohieddine RAHMOUNI |
| Abstract: | This paper documents the relationship between appropriation instruments and the innovation activity and other determinants of the innovation behavior of firms in Tunisia. It focuses on studying the factors that determine the appropriation of innovation results like the value of sales of the firms, networking, science-industry linkage, competitive pressure and demand pull. To this end, we propose an econometric analysis of various hypotheses tested in a sample of 586 Tunisian firms. We find significant interaction effects between appropriability and R&D activity. The results confirm that patenting is primarily driven by firm-level factors, not by industry affiliation. Access to external knowledge and firm\'s specific characteristics are the most factors linked to the innovation protection. Firms that use appropriation instruments have a higher probability of investing in R&D than the other ones. Indeed, the capability to integrate external knowledge and performing R&D (networking, science-industry linkage, cooperation with other firms, belonging to a group) is related to the use of appropriation instruments. |
| Keywords: | Appropriation instruments, patents; Innovation; development; absorptive capacity |
| JEL: | O12 O30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2013-01&r=sbm |
| By: | Pilar Beneito (University of Valencia and ERI-CES); María E. Rochina-Barrachina (University of Valencia and ERI-CES); Amparo Sanchis (University of Valencia and ERI-CES) |
| Abstract: | In this paper we analyse the role of learning through experience in Research and Development (R&D) activities in strengthening firms’ capabilities to achieve innovation outcomes. Using a production function approach, we estimate a count-data model using a panel dataset of Spanish manufacturing firms for the period 1990-2006. We find that the number of years of engagement in R&D activities is positively associated with the achievement of product innovations. Our results highlight that experience in R&D is an additional technological asset to be considered for a good management practice. In particular our findings indicate that the relationship between firms’ R&D experience and product innovations is non-linear, that is, that experience has a positive effect on the probability to achieve product innovations, but at a decreasing rate. In addition, our results suggest that, although large firms are more efficient than SMEs in converting R&D investment into product innovations, SMEs obtain more efficiency gains from R&D experience than large firms. |
| Keywords: | R&D experience, learning, product innovation, count data, SMEs |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1302&r=sbm |
| By: | Marco Corsino; Roberto Gabriele; Anna Giunta |
| Abstract: | The empirical evidence concerning the impact of R&D subsidies on both sides of the innovation process (input and output) and the overall performance of the firm is mixed. Moreover, while the role of regions in implementing innovation policies has increased since the last decade, little is known on the effectiveness of regional policy. This paper analyzes the effectiveness of a local R&D policy implemented in the Italian province of Trento, during the period 2002-07. The econometric analysis is based on counterfactual models. We evaluate the achievements of the local policy maker with respect to the following objectives: (i) prompt additional investment in innovation; (ii) enhance the overall competitiveness of the business sector in the regional area. We find that R&D incentives positively affect investments in intangible assets and human capital, while they have no effect on firms’ turnover, labor productivity and profitability. |
| Keywords: | Regional Innovation Policy, Ex Post Evaluation, Subsidies, Research and Development, Counterfactual Models |
| JEL: | O25 O31 O38 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0169&r=sbm |
| By: | Ozgen, Ceren (VU University Amsterdam); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato) |
| Abstract: | To investigate econometrically whether cultural diversity of a firm's employees boosts innovation, we create a unique linked employer‐employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data. We calculate three distinct measures of diversity. We find that firms that employ fewer foreign workers are generally more innovative, but that diversity among a firm's foreign workers is positively associated with innovation activity. The positive impact of diversity on product or process innovations is greater among firms in knowledge-intensive sectors and in internationally‐oriented sectors. The impact is robust to accounting for endogeneity of foreign employment. |
| Keywords: | immigration, innovation, cultural diversity, knowledge spillovers, linked administrative and survey data |
| JEL: | D22 F22 O31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7129&r=sbm |
| By: | Lea, Kubíčková; Lenka, Procházková |
| Abstract: | In context of discussionsabout the Czech foreign trade development, questions of the Czech enterprises’ability to participate in the internationalization processare often considered. The main aim of this article is to present various points of view on the globalization and enterprise internationalization processwith a special accent on the analysis of the specifics in the internationalization process of small- and medium-sized enterprises (SMEs). Those enterprises represent a significant part of the Czech economy because they considerably contribute to the creation of vacancies and GDP; they are a source of innovation and technological progress and the factors of their successful functioning in foreign trades differ from the large-sized enterprises.For this reason, SMEshave been more frequently analysed in an effort to identify key factors, which involvetheir ability to succeed in international activities. Those factors could positively influence other SMEs in their plans to participate in the foreign trade. However, not all the enterprises have equal conditions for entering the foreign marketfield.In some business spheres, the export of SMEs is supported, which is considerably helpful, mainly in case of enterprises with insufficient funds. Some of the other spheresfacilitate access to the foreign market because of their sort ofproduction. Besides analysing the internationalization process of SMEs, this article is also focused on identification of both key factors of success and risk factors of the process.Determinants of SMEs success in the foreign market were examined using several extensive researches among Czech small and medium-sized enterprises of various business spheres. Results of the research have produced interesting information. It was discovered that all SMEs, although they operate in different business spheres, share similar problems concerning the internationalization process. Key factors, which determine success of Czech small and medium-sized enterprises in the internationalization process, are analogous in spite of diverse business spheres, but nevertheless every particular branch has a strong effect on an opportunity and willingness of SMEs to participate in the internationalization process. |
| Keywords: | SMEs; internationalization; success; keyfactors; successevaluation |
| JEL: | M20 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43759&r=sbm |
| By: | Alina Sorgner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | Often, a person will become an entrepreneur only after a period of dependent employment, suggesting that occupational choices precede entrepreneurial choices. We investigate the relationship between occupational choice and self-employment. The findings suggest that the occupational choice of future entrepreneurs at the time of labor market entry is partly guided by a taste for skill variety, the prospect of high earnings, and occupational earnings risk. Entrepreneurial intentions may also emerge after gaining work experience in a chosen occupation. We find that occupations characterized by high levels of unemployment and earnings risk, relatively many job opportunities, and high self-employment rates foster the founding of an own business. Also, people who fail to achieve an occupation-specific income have a tendency for self-employment. |
| Keywords: | Entrepreneurial choice, occupation-specific determinants of entrepreneurship, risk preferences, taste for variety |
| JEL: | L26 J24 D01 |
| Date: | 2013–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-001&r=sbm |
| By: | Lea, Kubíčková |
| Abstract: | Small and medium sized companies (SMEs) are very important subjects playing the dominant role in most of economics – they are considered as a factor of social stability and of the economic development in the Czech Republic as well as in the whole EU. SMEs share of employment since 2002 is more than 61%, GNP share is about 35% and their import share is continuously increasing, from 2004 it is more than 50%. The paper deals with SMEs operating in the textile industry and is focused on the internationalization process of SMEs. In recent years the Czech companies have to face significant competition coming from Asian countries and therefore the big rivalry in the domestic market leads Czech companies to efforts to succeed in foreign markets. All companies entering foreign market have to face many risks, for small and medium-sized enterprises is even more difficult to deal with these risks because they often have less experience and finance than large companies. Internationalization of the firms is generally defined as the involvement in the international environment. The process of internationalization can be also defined as “the process of increasing involves in international operations” (Welch, Luostarinen; 1988). The process essentially involves the adaption of firm operations like strategy, structure, resources etc., to perfectly fit the international environments. Furthermore, the degree of internationalization can be measured as foreign sales relative to total sales. (Welch, Luostarinen; 1988).The internationalization process is defined in the literature in many ways; there is a countless variety of different approaches and models of internationalization process of companies. Like all processes in the firm also the international process is accompanied by risks. The main aim of this paper is to identify the key risk factors of this process - knowing the risk factors it is possible to propose to SMEs the way how to reduce or eliminate possible risks in their activities on foreign markets. To reveal the key risk there was conducted the survey in the last half of 2011 and in 2012 among 803 Czech SMEs operating in the textile industry, 161 responses were processed and evaluated. The obtained data were analyzed by statistical method. Potential risks of entry into foreign market were rated according to their impact on businesses. According to processed responses the greatest influences on the process of successful internationalization have a shortage of capital, lack of the information on foreign markets and high transportation costs. Other factors that may impede the successful internationalization are language barriers, inexperience of management with the internationalization and high prices of products. Furthermore, a survey has investigated what factors cause that some SMEs are able to enter the foreign market, but after some time they are not successful there. It was found that the main factors of failure of SMEs are the unreliable and incompetent management, lack of promotion of the products and lack of contacts abroad. Based on these findings there some proposals were suggested to eliminate or reduce the impact of these risk factors. |
| Keywords: | Internationalization; small and medium-sized enterprises; crucial key factors; internationalization process; textile industry |
| JEL: | F18 L10 F02 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43758&r=sbm |
| By: | Shinozaki, Shigehiro (Asian Development Bank) |
| Abstract: | Small and medium enterprises (SMEs) stimulate domestic demand through job creation, innovation, and competition; thus, they can be a driving force behind a resilient national economy. In addition, SMEs involved in global production supply chains have the potential to encourage international trade. Prioritizing SME development is therefore critical for promoting inclusive economic growth in most economies in Asia. Adequate access to finance is crucial for SMEs to survive and eventually grow beyond their SME status. In Asia, the reality is that SMEs have poor access to finance. It is one of the core factors impeding SME development. Information asymmetry between lenders and SME borrowers increases adverse selection and moral hazard risks for financial institutions, and is responsible for widening the supply–demand gap in SME financing. Given the diversified nature of SMEs, there is no one-size-fits-all financing solution. The improvement of lending efficiency and the diversification of financing modalities can help expand SMEs’ access to finance, particularly given the largely bankcentered financial system in Asia. This paper discusses a new regime of SME finance amid an era of global imbalances, with empirical analyses of bank financing for SMEs in select Asian countries. |
| Keywords: | Global imbalances; financial inclusion; access to finance; growth-oriented SMEs; SME finance; supply–demand gap; diversified financing |
| JEL: | F43 G01 G21 M13 |
| Date: | 2012–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0104&r=sbm |
| By: | André van Stel; Roy Thurik; Gerard Scholman |
| Abstract: | We investigate the interplay between the business cycle, entrepreneurial activity and unemployment in relation to the openness of the economy. Also, we explore to what extent the observation frequency (quarterly versus annual data) influences estimation results. We take the analysis of Koellinger and Thurik (2012) – a pooled VAR model of the three macroeconomic variables – as a starting point. Using both quarterly and annual data for 19 OECD countries over the period 1998-2007, we find that in the short run (after one quarter), a country's entrepreneurial activity is stimulated when the country's business cycle is lagging the world's business cycle, whereas in the medium run (after one to two years), entrepreneurial activity is stimulated when the country's business cycle is leading the world's business cycle. This suggests that a country's business cycle position relative to the world's cycle creates different types of entrepreneurial opportunities depending on the time horizon considered. These results apply to relatively open economies only which suggests that economic openness plays a role for entrepreneurial opportunities related to a country's cyclical performance. |
| Date: | 2012–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201218&r=sbm |
| By: | Zawadzki, Krystian |
| Abstract: | In the course of preparations to the 2012 European Football Championship (Euro 2012) many doubts have arisen as to the actual cost-benefit balance affecting the hosting country. The event is accompanied by intense promotion of the agglomeration and the region, especially abroad. In effect, one can anticipate the competitive position of both the region and the businesses operating there to improve. In this paper, the micro level is considered, namely the potential impact of Euro 2012 on the business decisions in selected sectors, particularly connected with the mega sport event in the Pomeranian region.The research reported in this study focused on the relationship between UEFA Euro in Poland and the decisions taken by representatives of SMEs. |
| Keywords: | Euro 2012; Mega sport's event; tourism; pomeranian region |
| JEL: | P13 D7 L83 |
| Date: | 2012–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43624&r=sbm |