nep-sbm New Economics Papers
on Small Business Management
Issue of 2013‒04‒06
seven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Does Easy Start-Up Formation Hamper Incumbents' R&D Investment? A Theoretical and Empirical Analysis By Colombo, Luca; Dawid, Herbert; Piva, Mariacristina; Vivarelli, Marco
  2. Personal Knowledge of Audit Partners and Organizational Knowledge of Audit Firms and the Impact on Audit Fees By Fukukawa, Hironori; Karube, Masaru
  3. Regional Development with Local Firms Which Use Regional Resources (Japanese) By NAKANISHI Hodaka; SAKATA Junichi; SUZUKI Katsuhiro; HOSOYA Jun
  4. Research universities, technology transfer, and job creation: what infrastructure, for what training? By Christian Brodhag
  5. Service deregulation, competition and the performance of French and Italian firms By Francesco Daveri; Rèmy Lecat; Maria Laura Parisi
  6. R&D Investment Smoothing and Corporate Diversification By Takashi Hatakeda
  7. Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data By Tobias Fleitera; Joachim Schleich; Ployplearn Ravivanpong

  1. By: Colombo, Luca (Università Cattolica del Sacro Cuore); Dawid, Herbert (University of Bielefeld); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Vivarelli, Marco (Università Cattolica del Sacro Cuore)
    Abstract: This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups – proxied by the ease of access to financial resources – have on the innovative efforts of incumbent firms. In particular, we develop a theoretical model, highlighting a strategic incentive effect by which the innovative efforts of incumbent firms are decreasing in the availability of the complementary assets needed for the creation of a start- up. The empirical relevance of this effect is investigated by using firm level data drawn from the third Italian Community Innovation Survey covering the period 1998-2000. The results of our empirical analysis support our theory-based insights.
    Keywords: R&D, innovation, start-up, complementary assets
    JEL: O31 L26
    Date: 2013–03
  2. By: Fukukawa, Hironori; Karube, Masaru
    Abstract: This study develops a conceptual framework for auditor knowledge comprising both the personal knowledge of auditors and the organizational knowledge of audit firms. We use this to examine how three measures of the personal knowledge held by engagement audit partners.the depth and width of knowledge and industry expertise.impact upon audit fees. We find that an engagement partner with deeper knowledge provides audit services more efficiently. In addition, audit fees are negatively associated with partners’ wider knowledge and positively with partners’ industry expertise, but only for audits by Big 4 audit firms.
    Keywords: Personal knowledge, Organizational knowledge, Industry expertise, Engagement partners
    Date: 2013–03
  3. By: NAKANISHI Hodaka; SAKATA Junichi; SUZUKI Katsuhiro; HOSOYA Jun
    Abstract: The approach of regional development with local resources has become popular in recent years, but most of the business activities using local resources are small in scale and their effects on regional economies are not clear. In order to take measures for the development of regional economies with local resources, it is necessary to show the growing process of local firms with local resources. Local firms are categorized by geographic relation with customers and suppliers into four types: 1) local production for local consumption type, 2) local firms growth type, 3) consuming area location type, and 4) inter-regional type. Based on the category, we presented a model of economic development with regional resources, in which local production for local consumption type firms, which started their businesses with regional resources, have enlarged their scale and extended their markets to outside of their areas and have become local production for local consumption type firms or even inter-regional type firms.<br />Firm activities of each type are analyzed with company data from Tokyo Shoko Research and the patent data. In the Tohoku area, companies introduced from outside of the region rank highly in sales. On the contrary, the activities of local firms which use regional resources in the Setouchi area are active as well as their innovation activities. Creation of new local technologies by local firms growth type firms and inter-regional type firms funded by local capital are active as well. The difference of firm activities by firm type is conformable to the deference of the economic situation between the Tohoku area and the Setouchi area.<br />It is important to promote the innovation activities of local, small local production for local consumption type firms selectively, support them to expand their activities outside of the area, and develop them into local production for local consumption type firms or inter-regional type firms, as well as to support their use of regional resources.
    Date: 2013–03
  4. By: Christian Brodhag (EPICE-ENSMSE - Département Etudes sur la performance, l'Innovation et le Changement en Entreprise - Institut Henri Fayol - École Nationale Supérieure des Mines - Saint-Étienne)
    Abstract: Technology transfer and innovation are considered major drivers of sustainable development; they place knowledge and its dissemination in society at the heart of the development process. This article considers the role of research universities, and how they can interact with key actors and institutions involved in 'innovation ecosystems'. Considering various approaches of innovation and institutional analysis design (IAD), it proposes an institutional model of innovation where different authorities produce rules and knowledge that can be mobilized and/or changed in their respective action arenas. On this conceptual basis, one initiative is described: integrated poles of excellence (IPEs) for renewable energy in West Africa, which were conceptualized as a resource and knowledge centre connected to project implementation.
    Keywords: research universities; innovation; innovation ecosystems; knowledge; institutional analysis design; sustainable development
    Date: 2013–03–14
  5. By: Francesco Daveri; Rèmy Lecat; Maria Laura Parisi
    Abstract: We use firm-level data for France and Italy to explore the impact of service regulation reform implemented in the two countries on the mark-up and eventually on the performance of firms between the second half of the 1990s and 2007. We find that the relation between entry barriers and productivity is negative and is crucially intermediated through the firm’s mark up. If both countries adopted OECD’s best practices in terms of entry barriers, their TFP level would increase by 3% for Italy and 3.5% for France.
    Keywords: Regulation, services, performance, TFP
    JEL: D24 K20 L51 O40 O57
    Date: 2013–03
  6. By: Takashi Hatakeda (Graduate School of Business Administration, Kobe University)
    Abstract: We estimate dynamic R&D investment models in publicly traded Japanese manufacturing firms over 2001-2009. Splitting into two subsamples by the degree of corporate diversification, we provide evidence that less-diversified firms have an increased tendency to smooth R&D@but more-diversified firms donft do it. To clarify the causes behind corporate diversification, we also turn our eyes on the effect of financial liquidity or share ownership structure, showing that financially unconstrained firms tend to smooth R&D investment. We, furthermore, provide evidence that corporate diversification doesnft improve financial liquidity in financially constrained firms, but deteriorates financial liquidity in some financially unconstrained firms.
    Keywords: corporate diversification; R&D; investment smoothing; financial liquidity; share ownership structure
    JEL: G31 G32
    Date: 2012–11
  7. By: Tobias Fleitera (ISI - a Fraunhofer Institute for Systems and Innovation Research - a Fraunhofer Institute for Systems and Innovation Research); Joachim Schleich (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM), ISI - Fraunhofer Institute for Systems and Innovation Research - Fraunhofer Institute for Systems and Innovation Research); Ployplearn Ravivanpong (ISI - Fraunhofer Institute for Systems and Innovation Research - Fraunhofer Institute for Systems and Innovation Research)
    Abstract: This paper empirically investigates the factors driving the adoption of energy-efficiency measures by small and medium-sized enterprises (SMEs). Our analyses are based on cross-sectional data from SMEs which participated in a German energy audit program between 2008 and 2010. In general, our findings appear robust to alternative model specifications and are consistent with the theoretical and still scarce empirical literature on barriers to energy efficiency in SMEs. More specifically, high investment costs, which are captured by subjective and objective proxies, appear to impede the adoption of energy-efficient measures, even if these measures are deemed profitable. Similarly, we find that lack of capital slows the adoption of energy-efficient measures, primarily for larger investments. Hence, investment subsidies or soft loans (for larger invest-ments) may help accelerating the diffusion of energy-efficiency measures in SMEs. Other barriers were not found to be statistically significant. Finally, our findings provide evidence that the quality of energy audits affects the adoption of energy-efficiency measures. Hence, effective regulation should involve quality standards for energy au-dits, templates for audit reports or mandatory monitoring of energy audits.
    Keywords: Energy efficiency in SMEs; adoption of energy-efficiency measures; barriers to energy efficiency;
    Date: 2012

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