nep-sbm New Economics Papers
on Small Business Management
Issue of 2014‒02‒08
seven papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Innovation, exports and technical efficiency in Spain By Diaz-Mayans, M.Angeles; Sánchez, Rosario/R
  2. The importance of design for firms' competitiveness: a review of the literature By Beatrice D'Ippolito
  4. Entrepreneurial Spin-Outs and Vanishing Technological Trajectory: Laser Diodes in the U.S. and Japan By Shimizu, Hiroshi; Wakutsu, Naohiko
  5. Quality of government and innovative performance in the regions of Europe By Andrés Rodríguez-Pose; Marco Di-Cataldo
  6. What Determines Firms’ Innovation in Eastern Europe and Central Asia By Afandi, Elvin; Kermani, Majid
  7. Impacto do Investimento em Máquinas e Equipamentos Sobre a Inovação Tecnológica e a Produtividade das Firmas Industriais Brasileiras By Patrick Franco Alves; Nayara Lopes Gomes; Eric Jardim Cavalcante

  1. By: Diaz-Mayans, M.Angeles; Sánchez, Rosario/R
    Abstract: This paper analyses the relationship between exports, innovative activities and size and their effect over firms’ technical efficiency and then over their productivity. The analysis takes, also, into account other variables that could affect productivity as industrial sector, or firms’ financial conditions. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier production function and the inefficiency determinants. The data source is published in the Spanish Industrial Survey on Business Strategies (Encuesta sobre Estrategias Empresariales, ESEE), collected by Fundación SEPI. Our results show that exporting firms are more efficient than non-exporting firms; and that small and medium-sized firms’ tent to be more efficient when they focus on international markets.
    Keywords: exports, firms, technical efficiency, productivity, innovative activities, R&D expenditures
    JEL: F14 L25 L60
    Date: 2014–01–27
  2. By: Beatrice D'Ippolito (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: Scholars dedicated increasing attention towards appreciating how design has changed individuals' perception of new products, firms' understanding and formulation of strategy, or other relevant actors' approach to innovation and technology management. By emphasising the importance of design for the definition of consumers' needs, the restructuring of firms' organisational structures and strategies, and the evolution of firms' value creation processes, this review paper identifies relevant research gaps and questions that would benefit from future scholarly attention. In particular, it is suggested that such effort should address the analysis of: how design consumption can help better comprehend consumers' needs; what are the implications of design thinking on the skill sets of design professionals; the organisational structure of firms, including the reconfiguration of other business functions, and their strategy; and whether and how design thinking can shape firms' value creation processes and contribute to the formalisation of design tasks.
    Keywords: Design; strategy making; consumers' needs; value creation; literature review; firm competitiveness; research gaps
    Date: 2014–01–28
  3. By: Joana Reis (Faculdade de Economia do Porto); Rosa Forte (Faculdade de Economia do Porto)
    Abstract: The process of globalization of economies and markets has led firms to consider entry into foreign markets. Exporting is the simplest foreign market entry mode, but also the most common, not requiring high financial and human resources. Hence it is important to study the factors that can affect the firm’s export intensity, measure commonly used to assess the export performance. Several authors have studied the factors that influence the firm’s export performance, but few have addressed the relationship between industry characteristics and export intensity. Thus, the objective of the present study is to analyze the impact of industry characteristics (capital intensity, R&D intensity, labor productivity, export orientation, and concentration level) on the firm’s export intensity, seeking to add empirical evidence to this relatively neglected research area. Based on a sample of 1,425 Portuguese firms during the period 2008-2010, and using panel data estimation, the empirical results show that some industry characteristics (labor productivity, export orientation, concentration), as well as firm characteristics (labor productivity, size) are important determinants of a firm’s export intensity. In particular, we conclude that firm export intensity is positively affected by labor productivity (at industry and firm level), corroborating the idea that firms and governments need to direct their policies towards increased productivity in order to improve competitiveness in foreign markets.
    Keywords: Export performance, export intensity, Portuguese firms, industry characteristics
    JEL: L25 L69
    Date: 2014–02
  4. By: Shimizu, Hiroshi; Wakutsu, Naohiko
    Abstract: By exploring the patterns of laser-diode technological development in the U.S. and Japan and theoretically examining market conditions and institutions that promote entrepreneurial spin-outs from a parental company, this study reveals how the existence and absence of entrepreneurial spin-out influence the ways in which technological trajectories emerge. It shows that vibrant entrepreneurial spin-out could hinder technological development, since the cumulative effects of incremental innovations on the technological trajectories could vanish if many firms spun out to target untapped sub-markets.
    Keywords: Innovation, Entrepreneurial Spin-Outs, Technological Trajectory, R&D Competition, Sub-markets, General Purpose Technology
    Date: 2014–01
  5. By: Andrés Rodríguez-Pose; Marco Di-Cataldo
    Abstract: Although it has frequently been argued that the quality of institutions affects the innovative potential of a territory, the link between institutions and innovation remains a black box. This paper aims to shed light on how institutions shape innovative capacity, by focusing on how regional government quality affects innovative performance in the regions of Europe. By exploiting new data on quality of government (QoG), we assess how government quality and its components (control of corruption, rule of law, government effectiveness and government accountability) shape patenting capacity across the regions of the European Union (EU). The results of the analysis – which are robust to controlling for the endogeneity of institutions – provide strong evidence of a causal link between the quality of local governments and the capacity of territories to generate innovation. In particular, low quality of government becomes a fundamental barrier for the innovative capacity of the periphery of the EU, strongly undermining any potential effect of any other measures aimed at promoting greater innovation. The results have important implications for the definition of innovation strategies in EU regions.
    Keywords: Institutions, Quality of government, Innovation, Regions, Europe
    Date: 2014–02
  6. By: Afandi, Elvin; Kermani, Majid
    Abstract: By employing a rich sample of firm-level data in seven Eastern Europe and Central Asian countries from Europe and Central Asia, our paper investigates core as well as some specific determinants of firm innovation. We find that the likelihood of engaging in innovation for a firm increases with its core socio-economic characteristics such as size, age, capacity utilization, domestic competition and foreign ownership. In addition to the estimates of these socio-economic covariates, the ultimate purpose of our study is to obtain more in-depth knowledge about the policy implacable factors for firm innovation that the countries could focus on. These policy-related factors are: (i) access to finance, (ii) human capital, and (iii) foreign trade. In this respect, our study finds that firm’s innovation increases with better financial inclusion, greater human capital and engagement in foreign trade. We argue that these analysis and results, coupled with inclusive and targeted policies, can be used to enrich the process of private sector innovation in the region’s countries.
    Keywords: Firm innovation, access to finance, human capital, foreign trade
    JEL: G0 J24 O31 P33
    Date: 2013–02–17
  7. By: Patrick Franco Alves; Nayara Lopes Gomes; Eric Jardim Cavalcante
    Abstract: Em economias em desenvolvimento, a aquisição de uma nova máquina pode significar para a firma a introdução de um novo produto ou um novo processo para a empresa ou para o mercado doméstico. Este texto busca avaliar a importância das introduções de inovações via tecnologia incorporada em novas máquinas e equipamentos. Para tal, verificou-se o impacto de tais aquisições sobre a produtividade das firmas industriais brasileiras. Visando controlar possíveis relações de simultaneidade e autosseleção existentes entre as variáveis envolvidas, estima-se um sistema de equações estruturadas. Os resultados encontrados demonstram a existência de impactos positivos e significantes, advindos do investimento em capital físico sobre a inovação tecnológica das firmas. O efeito médio do tratamento advindo da inovação em processo apresenta impacto positivo sobre a produtividade do trabalho. O tamanho da firma possui papel relevante na determinação da decisão de investir, no montante do investimento e sobre as diferentes formas de inovação tecnológica. In developing economies the purchase of a new machine by the firm can be a way of introducing a new product or processes. Under such considerations, this paper searches to measure the assumption of innovation via machine embodied technology, by verifying its impacts over the firm’s productivity. In order to control for possible simultaneity and self-selection relationship between the variables a structured system of equations is estimated. The found results reveal the existence of positive and statistically significant impacts from the investments decision on technological innovation over the firm’s productivity. The treatment effect estimated for product and process innovation presents positive and significant impact over the labor productivity. The firm size seems to be an important role in shaping the invest decision, the investment intensity choice and the different forms of technological innovation.
    Date: 2014–01

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