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on Small Business Management |
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Issue of 2014‒11‒28
fourteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Kühne, Bianka; Lefebvre, Virginie; Gellynck, Xavier |
| Abstract: | Knowledge exchange is a prerequisite for learning and consequently for innovation. Through open innovation, the innovating firms establish ties with other organizations, in order to innovate. At the baseline, open innovation is thus the exchange of knowledge through in- and out-flows of the knowledge at a company. Formal networks can provide access to other organizations and otherwise unavailable knowledge and resources and are seen as the locus of innovation. Four main categories of knowledge exchange can be distinguished: socialization, combination, articulation, and internalization. Within these categories, distinct but interdependent processes of knowledge exchange take place as described in the innovation production process (IPP) which consists of three main steps, knowledge accumulation, knowledge transformation, and knowledge exploitation (Roper et al., 2008). The objective of this paper is to explore how formal networks contribute to the categories of knowledge exchange and to each of the three steps of the IPP in order to conclude on how networks can facilitate open innovation among their members. Data are collected by means of three case-studies conducted in three Flemish formal networks which focus on enhancing the innovativeness and learning capabilities of micro, small and medium sized enterprises (SMEs). Our findings confirm the importance of networks in the process of knowledge exchange and innovation for SMEs in the food sector. The most important role of the networks is to create the appropriate environment according to the type of knowledge and the step(s) in the innovation production process focused on. Furthermore, it appears to be a very important task of the network to stimulate actively knowledge transformation into innovation outputs such as new or improved technology or product prototypes. Thereby, not only short-term effects should be aimed at, but also long-term effects e.g. for organizational innovation, should be taken into account. In conclusion, all three networks follow very different approaches in order to facilitate, stimulate and support knowledge exchange and innovation among their members. Based on the results, managerial as well as policy implications are posed towards network members, i.e. the SMEs, network coordinators and researchers. |
| Keywords: | knowledge exchange, learning, triple helix networks, SMEs, food industry, Agribusiness, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi13:164742&r=sbm |
| By: | Andrzej Kacprzyk (University of Lodz, Faculty of Economics and Sociology); Wirginia Doryn (University of Lodz, Faculty of Economics and Sociology); ; |
| Abstract: | There seems to be a growing consensus among economists and policy makers that investment in knowledge, which is at the center of the endogenous growth process, is a precondition for achieving permanently high economic growth. This paper examines relationship between economic growth and the various indicators of innovative activity that contribute to new knowledge creation. Our study differs from previous analyses, which mainly employed data from OECD countries. To the best of our knowledge, this is the first attempt to test whether the impact of innovative activity on growth differs between old and new European Union member states. Based on the panel data regression model we examine the interaction between economic growth and innovation, the latter proxied by R&D expenditures and patent statistics. We distinguish between publicly and privately-funded R&D and try to answer the question whether private and public R&D investments differ in terms of fostering economic growth. The results are sensitive to the sample analyzed and indicate that the relationship between innovation efforts and growth is more complex and ambiguous than expected. |
| Keywords: | Economic growth, innovation, R&D, patents, panel data |
| JEL: | O33 O30 O47 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ann:wpaper:3/2014&r=sbm |
| By: | YASUDA Takehiko |
| Abstract: | The Japanese government has been offering meticulously designed policy measures to support small and medium enterprises (SMEs). This paper examines to what extent SMEs are actually aware of those measures based on findings from our original online survey, and attempts to identify and analyze the factors that determine the degree of policy penetration.<br />Our survey found that SMEs are, all in all, poorly informed about key SME policy measures implemented in the 2000s. It was also found that the degree of awareness—or policy penetration—differs depending on the attributes of each SME such as firm size and the type of management as well as on the type of policy measure.<br />Furthermore, this study considers the following two possible reasons for the low degree of policy penetration: 1) SMEs believe they do not need to be informed about government policies, and 2) SME managers do not have enough time to learn about government policies. An empirical analysis reveals that the latter is the primary factor for the low penetration rate.<br />These results point to the need for the government to consider ways to make policy information more readily accessible to SMEs rather than just printing and distributing more explanatory brochures. |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:14049&r=sbm |
| By: | Minarelli, Francesca; Raggi, Meri; Viaggi, Davide |
| Abstract: | The importance of networking as a way to enhance innovation has been pointed out in many scientific papers, in particular for SMEs. A great number of scientific studies clearly establish the significant role of SMEs in economic growth, promoting flexibility and innovation in an economy. The process of successfully engage in a network represents a key for enhancing competitiveness. In order to improve effectiveness of network is pivotal the achievement of a better understanding of SME behavior. The presented work aims to identify factors that characterize food SMEs entering in innovation networks by integrating findings from the literature review with a survey of food SMEs. |
| Keywords: | Network, food SMEs, innovation, Agribusiness, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi13:164740&r=sbm |
| By: | Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)) |
| Abstract: | This article analyzes the contribution of high-growth firms (HGFs) to the process of knowledge creation. We articulate a demand-pull innovation framework in which knowledge creation is driven by sales growth, and knowledge stems from creative recombination. Building on the literature on HGFs and economic growth, we investigate whether "gazelles" follow patterns of knowledge creation dominated by exploration or exploitation strategies. We construct indicators for the structure of knowledge and identify firms' innovation strategies. The empirical results show that increasing growth rates are associated with exploration, supporting the idea that HGFs are key actors in the creation of new technological knowledge, and showing also that firms that achieve higher than average growth focus on exploration based on familiar technology. This suggests that exploration is less random than has been suggested. Our main result is that HGFs, especially gazelles, predominantly adopt exploration strategies that have the characteristics of organized search more often observed among firms following an exploitation strategy. |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01070569&r=sbm |
| By: | Sara Cruz (CEF.UP, Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC TEC; OBEGEF) |
| Abstract: | This paper assesses the location determinants of the newly created firms in the creative sector within the framework of Discrete Choice Models. Estimations using a conditional logit model, which incorporate spatial effects of neighbouring regions in the location choices of firms, yield the following results: i) the concentration of creative and knowledge-based activities, due to agglomeration economies, play an important role in location decisions of new creative establishments; ii) in contrast, the concentration of service-business activities has a negative impact on location choices, which may be due to the fact that creative firms privilege interdependencies with other activity sectors, such as innovation/ knowledge-based activities; iii) creative firms tend to favour a diversified industrial tissue and related variety, in order to enjoy from inter-sectorial synergies; iv) higher education at a regional level has a highly significant, positive effect on location decisions, while lower educational levels of human capital negatively affect those decisions, explained by the specific requirements that creative firms usually have of a highly skilled labour force; v) tolerant/ open environments attract creative activities; vi) creative firms tend to favour municipalities where the stock of knowledge and conditions for innovative activity are higher. Location decisions of creative firms also vary according to the creative sector they belong to and to their own characteristics, firm’s educational level or technology-intensity. Finally, municipality attributes are more important in terms of firms’ location decisions than the characteristics of nearby regions. |
| Keywords: | Spatial economics; industrial location; econometric models; creative industries. |
| JEL: | C01 R12 R30 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:546&r=sbm |
| By: | Berger-Douce, Sandrine |
| Abstract: | Nowadays, sustainable management seems more likely to be a guarantee of competitiveness for companies, regardless of their size. Besides offering those strategic opportunities, sustainable management practices also play a significant role in gaining acceptance and legitimacy in the marketplace. Moreover, SMEs are continually researching ways to improve their performance. The relationship between sustainability and company performance has interested researchers for twenty years, even if the academic results are mostly focused on bigger companies. The purpose of this paper is to provide an understanding of how sustainable management practices help in achieving global performance for small and medium-sized enterprises (SMEs). The analysis of this case study shows how the transition from risk management to sustainable management allows an improvement in global company performance. Global performance considers social, environmental and societal issues in addition to economic performance. The first part of the paper looks at the relationship between sustainability and performance in the context of SMEs. The second part uses a French case study to illustrate how an industrial SME can implement sustainable management and translate this into improved performance. To resume, this paper illustrates that sustainable management can be a catalyst for innovation in industrial SMEs. |
| Keywords: | case study,(global) performance,sustainability,small and medium-sized enterprises (SMEs) |
| JEL: | M10 M14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:0414&r=sbm |
| By: | Narula R.; Martinez-Noya A. (UNU-MERIT) |
| Abstract: | There has been a dramatic increase in all forms of international cooperation in science, technology and innovation over the last three decades. This chapter focuses on a specific subset of such cooperative agreements those that primarily but not exclusively involve firms that seek some commercial benefit from the outputs of inter-firm collaboration, known as strategic technology partnering STP. Special attention is given to clearly define the unique nature of these collaborative agreements, as well as the reasons and theories behind their growth. We focus on their international dimension, identifying international STP trends, and how the cross-border aspect of these alliances impinges on their formation and success. Finally, managerial challenges and policy implications related to STP are also discussed. |
| Keywords: | Contracting Out; Joint Ventures; Technology Licensing; Management of Technological Innovation and R&D; |
| JEL: | O32 L24 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014058&r=sbm |
| By: | Idota, Hiroki; Ueki, Yasushi; Bunno, Teruyuki; Shinohara, Sobee; Tsuji, Masatsugu |
| Abstract: | Although the East Asian economies have been developing in the 21th century, innovation is indispensable for their further economic development. In order to achieve successful innovation, firms have to elevate their capability including technology, human resources, business organization, ICT use and so on by collaborating with outside organizations such as MNCs (Multi-national companies), universities, public organizations. The outside organizations are termed as external linkages. Based on authors' survey data of four ASEAN economies such as Vietnam, Indonesia, the Philippines, and Thailand from 2012 to 2013, this paper examines how factors such as organizational learning, ICT use, and technology enhance product and process innovation. These factors are used as latent variables in analysis and consist of the following variables: (i) technology such as capital goods, (ii) organizational learning including QC, cross-functional teams, (iii) ICT use such as B2B, B2C, EDI, SCM, ERP, CAD/CAM, groupware, SNS etc., and (iv) external linkages, such as MNCs, local and public organizations, and universities. This study employs SEM (Structural equation modeling) in order to analyze the causal relationships not only among the above four latent variables but also between these and innovation. The six hypotheses were postulated as follows: H1. External linkages enhance organizational learning; H2. External linkages improve capital goods; H3. External linkage improves ICT use; H4. Organizational learning improves capital goods; H5. Organizational learning improves ICT use; and H6. Organizational learning, ICT use, and capital goods enhance innovation. Estimation results on product innovation demonstrate that organization learning, technology (capital goods), and ICT use enhance product innovation. On the other hand, organization learning promotes technology (capital goods) and ICT use, which promotes process innovation. Accordingly, this study clarifies that ICT use, technology and innovation capability enhance product and process innovation. |
| Keywords: | ICT use,innovation, internal capability,external linkages,SEM (Structural equation modeling) |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse14:101397&r=sbm |
| By: | Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)) |
| Abstract: | The paper investigates the patterns of persistence of innovation and of the properties of firms' knowledge base (KB) across a sample of Italian firms in the period 1998-2006. The analysis draws upon a theoretical representation of knowledge as a collective good, stemming from the recombination of knowledge bits that are fragmented and dispersed across economic agents. On this basis, we derived properties of the KB like the coherence, the cognitive distance and the variety, and investigated their patterns of persistence over time. The empirical analysis is implemented by exploring the autocorrelation structure of such properties within a quantile regression framework. The results suggest that the properties of knowledge are featured by somewhat peculiar patterns as compared with knowledge stock, and that such evidence is also heterogeneous across firms in different quantiles. |
| Keywords: | persistence, innovation, knowledge coherence, variety, cognitive distance, quantile regression, autocorrelation |
| Date: | 2014–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01070566&r=sbm |
| By: | Gonçalo Brás (Faculty of Economics, University of Coimbra, Portugal); Elias Soukiazis (Faculty of Economics, University of Coimbra and GEMF, Portugal) |
| Abstract: | Within the institutional theory of North (1990, 2005), the objective of this study is to analyse the impact of economic and institutional factors, formal and informal, in the entrepreneurial activity of nations, particularly in Total Entrepreneurial Activity (TEA). In order to evaluate the simultaneous influence of economic and institutional factors on the entrepreneurial activity, a multiple regression approach is used with cross-country data sets. The results show that TEA is negatively related to infrastructural capacity and political stability of a country, and positively related to government spending and freedom of expression and corporate associations (Voice & Accountability) at a country level. It is also tested the relationship between TEA and GDP per capita. Our results confirm a convex relationship between the two variables giving evidence that the entrepreneurial activity is mostly necessity driven rather than motivated by opportunity. |
| Keywords: | Entrepreneurship by necessity, Entrepreneurship by opportunity, Cross-country regression models, convexity hypothesis, threshold level. |
| JEL: | L26 M13 C31 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2014-22.&r=sbm |
| By: | Barthelemy Chollet (GEM - Grenoble Ecole de Management - Grenoble École de Management (GEM)); Mickaël Géraudel (CEROM - Centre d'Etudes et de Recherche sur les Organisations et le Management - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie - Institut d'Administration des Entreprises (IAE) - Savoie Mont-Blanc) |
| Abstract: | We examine how small and medium-sized enterprise (SME) chief executive officers' (CEOs) social capital (as measured by strength of ties and structural holes) can help them bring business to their firms through the spread of positive referrals. Based on a sample of 408 French SME CEOs, we find a direct effect of social capital. Such effect is contingent on the CEO's personality, with social capital being most beneficial to CEOs with low levels of conscientiousness. CEOs' social ties facilitate the distortion of information, thereby leading personal contacts to give referrals to and endorse a focal CEO, even in the presence of negative signals, such as low conscientiousness. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00915173&r=sbm |
| By: | Matthias Brachert; Walter Hyll; Mirko Titze |
| Abstract: | Empirical studies use the assumption of stability in individual risk attitudes when searching for a relationship between attitude to risk and the decision to become and survive as an entrepreneur. We show that risk attitudes do not remain stable but face endogenous adaption when starting a new business. This adaption is associated with entrepreneurial survival. The results show that entrepreneurs with low risk tolerance before entering self-employment and increased risk tolerance when self-employed have a higher probability of survival than similar entrepreneurs experiencing a decrease in the willingness to take risks. We find the opposite results for entrepreneurs who express a higher willingness to take risks before becoming self-employed: in this case, a decrease in tolerance of risk is correlated with an increasing survival probability. |
| Keywords: | Endogenous attitudes, Risk attitudes, Entrepreneurial survival, SOEP |
| JEL: | D03 D81 M13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp701&r=sbm |
| By: | Gault F. (UNU-MERIT) |
| Abstract: | This paper reviews the current state of indicators of the activity of innovation and how they are presented for use in the policy process leading to a discussion of the development of new indicators, some outside of the business sector, which raises questions about the definition of innovation. This is followed by a review of plans for the evolution of innovation indicators and their use over the next few years. These plans, national and international, are diverse and this leads to a discussion of international organizations and forums which could facilitate progress towards new indicators and a better understanding of innovation systems. |
| Keywords: | Technological Change; Research and Development; Intellectual Property Rights: General; Innovation and Invention: Processes and Incentives; Technological Change: Government Policy; Cultural Economics: Public Policy; |
| JEL: | O30 O31 O38 Z18 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014055&r=sbm |