nep-sbm New Economics Papers
on Small Business Management
Issue of 2013‒10‒02
twelve papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. What makes companies pursue an open science strategy? By Markus Simeth; Julio Raffo
  2. Padrão de financiamento aos investimentos em inovação no Brasil By Márcia Rapini
  3. Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster By Theresia Gunawan; Jojo Jacob; Geert Duysters
  4. Finance and Growth for Microenterprises: Evidence from Rural China By Beck, T.H.L.; Lu, L.; Yang, R.
  5. Coagglomeration of formal and informal industry : evidence from India By Mukim, Megha
  6. Industrial dynamics and clusters: a survey By Koen Frenken; Elena Cefis; Erik Stam
  7. Stage of development, governance and performance of inter-firm innovation cooperation: a conceptual model and propositions By Romaric Servajean-Hilst
  8. Firms and gender: performance differentials between male and female firms By Domenico Depalo; Francesca Lotti
  9. Business Restructuring of Japanese Firms: Structural changes during the "Lost Decades" By MORIKAWA Masayuki
  10. Credit access for female firms: evidence from a survey on European SMEs By Maria Lucia Stefani; Valerio Vacca
  11. Role of the Credit Risk Database in SME Financing (Japanese) By MAEHARA Yasuhiro
  12. Gibrat's Law and the British Industrial Revolution By Alexander Klein; Tim Leunig

  1. By: Markus Simeth (Ecole Polytechnique Fédérale de Lausanne (EPFL), College of Management, Switzerland); Julio Raffo (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland)
    Abstract: Whereas recent scholarly research has provided many insights about universities engaging in commercial activities, there is still little empirical evidence regarding the opposite phenomenon of companies disseminating scientific knowledge. Our paper aims to fill this gap and explores the motivations of firms that disclose research outcomes in a scientific format. Besides considering an internal firm dimension, we focus particularly on knowledge sourcing from academic institutions and the appropriability regime using a cost-benefit framework. We conduct an econometric analysis with firm-level data from the fourth edition of the French Community Innovation Survey (CIS4) and matched scientific publications for a sample of 2,512 R&D performing firms from all manufacturing sectors. The analysis provides evidence that the access to important scientific knowledge imposes the adoption of academic disclosure principles, whereas the mere existence of collaborative links with academic institutions is not a strong predictor. Furthermore, the results suggest that overall industry conditions are influential in shaping the cost-benefit rationale of firms with respect to scientific disclosure.
    Keywords: R&D, Industrial Science, Knowledge Disclosure, University-Industry collaboration
    Date: 2013–04
  2. By: Márcia Rapini (Cedeplar-UFMG)
    Abstract: This paper analyzes the pattern of financing R & D and innovation in Brazilian firms. For this data from Brazilian Innovation Survey (PINTEC) are used in the years 1998-2000, 2001-2003, 2003-2005. The PINTEC data show that, for all firms, financing R & D and innovation is mostly done with their own resources. Moreover, the government support for businesses is not significant being concentrated in financing machinery and equipment acquisition. The micro data estimations suggest that for 2003 and 2005 Surveys, is less likely to innovate in the presence of financial barriers. Multivariate analysis points to a distinct pattern of response of innovative and non-innovative firms, suggesting the need for a specific set of funding instruments.
    Keywords: Funding, innovation, PINTEC, Brazil
    JEL: O31
    Date: 2013–09
  3. By: Theresia Gunawan (Maastricht School of Management and Technical University of Eindhoven, the Netherlands); Jojo Jacob (United Nation University- Maastricht Economic and Social Research Institute on Innovation and Technology (UNU MERIT), the Netherlands); Geert Duysters (Tilburg University, the Netherlands)
    Abstract: This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 SMEs in the Cibaduyut footwear-manufacturing cluster, Indonesia. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. A combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Overall, the findings of this study point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.
    Date: 2013–08
  4. By: Beck, T.H.L.; Lu, L.; Yang, R. (Tilburg University, Center for Economic Research)
    Abstract: Abstract: Using a survey dataset of Chinese rural households, we find that access to external finance is positively associated with the decision to become entrepreneur, the initial investment for microenterprises and the use of external finance. Also, we find that the use of informal finance is positively associated with sales growth of microenterprises with employees, but not of self-employed. We do not find any significant relationship between the use of formal finance and firm growth. Our findings underline the importance of finance for entrepreneurship and microenterprise growth, and the role of informal finance in the absence of efficient formal financial institutions.
    Keywords: Finance;Entrepreneurship;Growth;China.
    JEL: L26 G21
    Date: 2013
  5. By: Mukim, Megha
    Abstract: A large and growing informal sector is a major feature of developing countries. This paper analyzes coagglomeration patterns between formal and informal manufacturing enterprises in India. It studies (a) the causes underlying these patterns and (b) the positive externalities, if any, on the entry of new firms. The analysis finds that buyer-supplier and technology linkages explain much of formal-informal coagglomeration. Also, within-industry coagglomeration matters mostly to small- and medium-sized formal firm births. Traditional measures of agglomeration remain important in explaining new industrial activity, whether in the formal or the informal sector.
    Keywords: Microfinance,Water and Industry,Small Scale Enterprise,E-Business,Industrial Management
    Date: 2013–09–01
  6. By: Koen Frenken; Elena Cefis; Erik Stam
    Abstract: We review the literature on clusters and their effects on entry, exit and growth of firms as well on the evolutionary dynamics underlying the process of cluster formation. Our extensive review shows that there is strong evidence that clusters promote entry, but little evidence that clusters enhance firm growth and firm survival. The emergence of clusters is best understood as an evolutionary process of capability transmission between parent firms and their spinoffs, rather than as an outcome of localisation economies that would increase the performance firms in clusters compared to firms outside clusters. From a number of open questions we distil various future research avenues stressing the importance of understanding firm heterogeneity and the exact mechanisms underlying localisation economies.
    Keywords: entry, exit, industrial cluster, localisation economies, product lifecycle, industry lifecycle, evolutionary economic geography, firm heterogeneity
    JEL: L10 L20 L26 R10
    Date: 2013–09
  7. By: Romaric Servajean-Hilst (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176)
    Abstract: This paper presents a framework for the dyadic study of inter-firm innovation cooperation, beyond the boundaries of collaborative innovation projects. In order to understand how two firms can maximize the performance of their relationship, we performed a literature review combined with interviews with practitioners. The result of this study is a model associated with propositions on the interactions between its different elements, which are (i) the governance of the relationship, (ii) its performance, (iii) its level of development and (iv) the degree of innovation of the collaborative projects. This paper concludes by suggesting future researches and stating implications for managers.
    Keywords: inter-firm innovation cooperation; governance; cooperation relationship development and performance
    Date: 2013–03–22
  8. By: Domenico Depalo (Bank of Italy); Francesca Lotti (Bank of Italy)
    Abstract: Many empirical analyses find that the performance of firms headed by women (female firms) varies with respect to those headed by men and that the greatest part of this gap is due to observable characteristics (i.e. gender) related to firms’ characteristics. In this paper we evaluate whether this finding also holds for Italy in terms of productivity and returns.The classification of firms by gender follows that prescribed in Law 215/92; for the purposes of this paper only partnerships and private and public corporations were considered, the sole legal forms for which balance sheets are available. Whilst male firms operate in almost all sectors, female firms tend to cluster in those areas where interpersonal relations are most important, namely the retail sector, restaurants, hotels etc.. In terms of performance, measured by profitability and productivity (and even when controlling by sector and company size), there do not appear to be any significant differences between male and female enterprises.
    Keywords: female entrepreneurship, gender economic differences
    JEL: J1 L11 L25
    Date: 2013–06
  9. By: MORIKAWA Masayuki
    Abstract: This paper is an overview of the business restructuring—the entry into new businesses and the exit from unprofitable ones—of Japanese firms and its relationship with the corporate governance system. Specifically, we analyze changes in the restructuring behavior of Japanese firms by comparing two identical surveys conducted in 1998 and 2012. These surveys include large listed and small unlisted firms. There are many stable characteristics of Japanese firm restructuring behavior: the significant role of workers and customers/suppliers as stakeholders and the reluctance to reduce the number of employees. Japanese firms have become active in restructuring their businesses through mergers and acquisitions (M&As) to expand business areas and divestitures of unprofitable segments.
    Date: 2013–09
  10. By: Maria Lucia Stefani (Bank of Italy); Valerio Vacca (Bank of Italy)
    Abstract: This paper uses ECB survey data to assess whether gender matters in the small firms’ financial structure and access to credit. Firms owned or managed by women (female firms) use smaller amounts and less heterogeneous sources of external finance than their male counterparts. According to statistical evidence, female firms have difficulty in accessing bank finance: on the demand side, they apply for bank loans less frequently, as they more often anticipate a rejection; on the supply side, they experience a higher rejection rate. Econometric analysis shows that these different patterns are largely explained by the characteristics (such as business size, age and sector of activity) that make female firms structurally different from those led by men, without leaving room for a significant gender effect. An additional contribution of this paper is to compare the major euro-area countries within a homogeneous framework: weak evidence of gender discrimination appears in the supply of bank loans in Germany, Italy and Spain, while some demand obstacles arise in France.
    Keywords: financial structure, banking, economics of gender, small business finance
    JEL: G32 G21 J16
    Date: 2013–06
  11. By: MAEHARA Yasuhiro
    Abstract: Asymmetric information makes it difficult for small and medium enterprises (SMEs) to raise funds. In order to reduce the asymmetry of information, a framework for sharing credit risk information will be useful. Currently, sharing credit risk information on individual SMEs has been made available by credit bureaus and credit-rating firms. However, in the future, such information will not be adequate for achieving more diversified and efficient relationship and transaction-based lending. It is necessary to establish a common benchmark in the form of a credit risk index of average SMEs based on a large-scale credit risk database. Because such a credit risk database would be a public good in the information infrastructure, collaboration between the private and public sectors would be desirable.
    Date: 2013–09
  12. By: Alexander Klein; Tim Leunig
    Abstract: This paper examines Gibrat's law in England and Wales between 1801 and 1911 using a unique data set covering the entire settlement size distribution. We find that Gibrat's law broadly holds even in the face of population doubling every fifty years, an industrial and transport revolution, and the absence of zoning laws to constrain growth. The result is strongest for the later period, and in counties most affected by the industrial revolution. The exception were villages in areas bypassed by the industrial revolution. We argue that agglomeration externalities balanced urban disamenities such as commuting costs and poor living conditions to ensure steady growth of many places, rather than exceptional growth of few.
    Keywords: Gibrat’s law, city-size distribution, industrial revolution
    JEL: N93 R12
    Date: 2013–09

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