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on Small Business Management |
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Issue of 2014‒12‒19
thirteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Juana Sanchez |
| Abstract: | This paper uses new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011 to relate the discrete innovation choices made by U.S. companies to features of the company that have long been considered to be important correlates of innovation. We use multinomial logit to model those choices. Bloch and Lopez-Bassols (2009) used the Community Innovation Surveys (CIS) to classify companies according dual, technological or output-based innovation constructs. We found that for each of those constructs of innovation combinations considered, manufacturing and engaging in intellectual property transfer increase the odds of choosing innovation strategies that involve more than one type of categories (for example, both goods and services, or both tech and non-tech) and radical innovations, controlling form size, productivity, time and type of R&D. Company size and company productivity as well as time do not lean the choices in any particular direction. These associations are robust across the three multinomial choice models that we have considered. In contrast with other studies, we have been able to use companies that do and companies that do not innovate, and this has allowed to rule out to some extent selectivity bias. |
| Keywords: | Innovation, R&D, productivity, intellectual property, generalized logistic regression, choice models |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-42&r=sbm |
| By: | Jonathan Bainée (UEA - Unité d'Économie Appliquée - ENSTA ParisTech, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne) |
| Abstract: | Entrepreneurship and, thus, small- and middlesized firms (SMEs) have had a growing interest for the past two decades, from the academic world as well as from public authorities. This interest is part of many economic changes. In particular, technological change and the increasing incidence of innovation in most developed countries have reduced the importance of the size of the companies in the industry and favored the development of entrepreneurial activities. In addition, globalization would have dragged the comparative advantages of North American and European countries toward knowledge-based activities, while the "knowledge-based economy" would be relatively more conducive to entrepreneurship and to SMEs. The issues in terms of ability to manage the creation, transition, and business development are primordial, both in their qualitative and quantitative dimension. It is in this context, conducive to new needs of knowledge, that emerge entrepreneurship teachings designed to inspire and enable individuals to start and to grow entrepreneurial ventures. They can be addressed in two steps. First, a historical approach will show how teachings in entrepreneurship have evolved in their implementation based on a double dynamic of empowerment and "complication" of training programs in entrepreneurship, which seems structured around the controversy over the ability to learn to undertake business or initiate the risk culture. Second, practical teaching methods of entrepreneurship will be analyzed, making sure to highlight the multifaceted reality of innovative approaches and actions through an international benchmark conducted by the PIMREP (ParisTech Innovation Management Research and Education Program) network (PIMREP 2010, 2011) |
| Keywords: | Entrepreneuriat ; management de l'innovation ; enseignements ; Eco-système |
| Date: | 2013–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00980385&r=sbm |
| By: | McCann, Fergal (Central Bank of Ireland); McIdnoe-Calder, Tara (Central Bank of Ireland) |
| Abstract: | The detrimental impacts of credit booms, property booms and firm over-leverage are well-established in a growing literature highlighting their effects on household consump- tion, firm investment and economic growth. The link between credit-fuelled property market booms and firms' ability to service their debts has however up to this point not been studied. Using a unique data set on the property and "core" enterprise debts of Irish Small and Medium Enterprises (SMEs) at December 2013, we highlight the extent to which Irish non-real-estate SMEs have borrowed for property investment purposes. We show that the existence of such property-related debts is a crucial determinant of the probability of SME loan default, suggesting a large property-related debt overhang for these firms. We extend the analysis by showing that the intensity of firms' property- related borrowings has an additional impact on the probability of loan default. In doing so, we highlight an additional channel through which credit-driven property booms can have long-lasting harmful eects on economic growth prospects. |
| Keywords: | Property markets, SMEs, credit risk, firm leverage. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:wpaper:14/rt/14&r=sbm |
| By: | Andres Rodríguez-Pose; Daniel Hardy |
| Abstract: | British regions are becoming increasingly culturally diverse, with migration as the main driver. Does this diversity benefit local economies? This research examines the impact of cultural diversity on the entrepreneurial performance of UK regions. We focus on two largely overlooked factors, the measurement of diversity, and the skills composition of diverse populations. First, more that demonstrating the importance of cultural diversity for entrepreneurship, we show that the type of cultural diversity measured is a decisive factor. Second, the skill composition of diverse populations is also key. Diversity amongst the ranks of the highly skilled exerts the strongest impact upon start-up intensities. The empirical investigation employs spatial regression techniques and carriers out several robustness checks, including instrumental variables specifications, to corroborate our findings. |
| Keywords: | Entrepreneurship, cultural diversity, high-skilled migration, knowledge spillovers |
| JEL: | J24 L26 M13 F22 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1423&r=sbm |
| By: | Verschelde, Marijn; Dumont, Michel; Rayp, Glenn; Merlevede, Bruno |
| Abstract: | In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firm-level competitiveness in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency, noise and do not impose a functional form on the input-output relation. Using AMADEUS firm-level data covering 10 manufacturing sectors from seven EU15 countries, (i) we document substantial, persistent differences in competitiveness (with Belgium and Germany as benchmark countries and Spain lagging behind) and a wide technology gap, (ii) we confirm the absence of convergence in TFP between the seven selected countries, (iii) we confirm that the technology gap is more pronounced for smaller firms, (iv) we highlight the role of post-entry growth for competitiveness. JEL Classification: C14, D24, L25, M13, O33 |
| Keywords: | competitiveness, cross-country analysis, firm heterogeneity, post-entry growth, total factor productivity |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20141701&r=sbm |
| By: | Rasel, Fabienne |
| Abstract: | This paper examines whether information technology (IT) and decentralized work organization are complementary only for large firms or also for smaller firms. Empirical evidence, which suggests complementarity between IT and decentralization, is mainly based on large firms. Using data from a sample of 3292 SMEs and of 598 larger firms from the manufacturing and service sector in Germany, I can observe firms' IT intensity in terms of enterprise software and computer use and whether firms have a decentralized work organization. I find that SMEs with decentralized work practices tend to use IT more intensively. Moreover, for the sample of SMEs, IT and decentralized work organization are individually associated with higher productivity but the combination of IT and decentralization does not yield a productivity premium. Contrarily, for the sample of larger firms, the results show that the productivity of IT depends positively on decentralization. The findings suggest that combining IT and decentralized work organization seems to be a successful strategy only for larger firms. |
| Keywords: | information technology,decentralized work organization,complementarity,productivity,enterprise software,firm-level data |
| JEL: | D22 D24 L20 O33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14071&r=sbm |
| By: | Crespi G.A.; Tacsir E.; Vargas F. (UNU-MERIT) |
| Abstract: | This paper analyses and compares the determinants of innovation in the service industry and its impact on labour productivity at the firm level in three countries of Latin America Chile, Colombia, and Uruguay. The main findings show that, similar to what is observed in the manufacturing industry, service firms that invest the most in innovation activities are more likely to introduce changes or improvements in their production process and/or product mix, and those firms that innovate have higher labour productivity than non-innovative firms. Size was found to be a less relevant determinant of innovation in services than in manufacturing, suggesting that the need for infrastructure and associated sunk costs are lower in services. Conversely, cooperation was found to be far more important for innovation in services than in manufacturing, in line with the more interactive nature of innovation in services. Yet, large differences in statistical significance and size of the coefficients of explanatory variables among the countries studied suggest that the framework conditions where a firm operates have an important role in innovation decisions. |
| Keywords: | Microeconomic Analyses of Economic Development; Industrialization; Manufacturing and Service Industries; Choice of Technology; Innovation and Invention: Processes and Incentives; Technological Change: Choices and Consequences; Diffusion Processes; Economic Growth and Aggregate Productivity: General; Economywide Country Studies: Latin America; Caribbean; |
| JEL: | O12 O14 O31 O33 O40 O54 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014069&r=sbm |
| By: | René Bohnsack (University of Amsterdam Business School - University of Amsterdam Business School); Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam) |
| Abstract: | Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and overcome the barriers that stand in the way of their market penetration. A key issue is the respective impact of incumbent and entrepreneurial firms' path-dependent behaviour on the development of such new business models. Embedded in the literature on business models, this paper explores how incumbent and entrepreneurial firms' path dependencies have affected the evolution of business models for electric vehicles. Based on a qualitative analysis of electric vehicle projects of key industry players over a five-year period (2006-2010), the paper identifies four business model archetypes and traces their evolution over time. Findings suggest that incumbent and entrepreneurial firms approach business model innovation in distinctive ways. Business model evolution shows a series of incremental changes that introduce service-based components, which were initially developed by entrepreneurial firms, to the product. Over time there seems to be some convergence in the business models of incumbents and entrepreneurs in the direction of delivering economy multi-purpose vehicles. |
| Keywords: | Sustainable technology; business models, evolution; path dependencies; electric vehicles |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00936886&r=sbm |
| By: | Colombelli, Alessandra (University of Turin) |
| Abstract: | This study attempts to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange’s market dedicated to young and growing companies. We investigate the post IPO growth of a panel consisting of 665 companies listed on the AIM from 1995 to 2006. Our empirical model is estimated using the GMM - System (GMM - SYS) estimator. Our findings confirm that small companies listed on the AIM grow at a faster rate after the IPO. It seems that both human capital and firm characteristics are important determinants of their fast growth. The results of this study carry some policy implications. Policy makers could take into account the relevance of an efficient financial system. Moreover, it is important to look at the process of transformation in the cultural and behavioural attitudes of many countries towards entrepreneurship. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201428&r=sbm |
| By: | Monarch, Ryan (Board of Governors of the Federal Reserve System (U.S.)); Park, Jooyoun (Kent State University); Sivadasan, Jagadeesh (University of Michigan) |
| Abstract: | We construct a new linked data set with over one thousand offshoring events by matching Trade Adjustment Assistance program petition data to confidential data on U.S. firm operations. We exploit these data to assess how offshoring affects domestic firm-level aggregate employment, output, wages and productivity. Consistent with heterogenous firm models where offshoring involves a fixed cost, we find that the average offshoring firm is larger and more productive than the average non-offshorer. After initiating offshoring, firms experience large declines in employment (46.2 per cent), output (38.5 per cent) and capital (28.8 per cent) relative to their industry peers. We find no significant change in average wages or in total factor productivity measures for offshoring firms. These results are consistent across two separate difference-in-differences (DID) approaches, an instrumental variables approach, and a number of robustness checks. Thus, we find offshoring to be a strong substitute for domestic activity in this large sample of offshoring events. |
| Keywords: | Outsourcing; manufacturing; employment; trade; productivity; firm performance |
| JEL: | F14 F16 F23 |
| Date: | 2014–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1124&r=sbm |
| By: | Paul O'Sullivan (Economics, National University of Ireland, Maynooth); |
| Abstract: | This paper analyses the desirability of RJV formation when firms may choose their R&D investment before or after any demand uncertainty is resolved. If a R&D leader accommodates a follower, multiple Nash equilibria are possible under both R&D competition and RJV formation. If a R&D leader prevents activity by the follower, this is only expected to be profitable at very low spillover and unit R&D cost levels. Whether R&D leadership when competing in R&D is expected to be more profitable than waiting and forming a RJV will depend on unit R&D costs and spillovers. Maximising expected welfare may require an active role for government. |
| JEL: | D21 D81 L13 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:may:mayecw:n252-14.pdf&r=sbm |
| By: | Andrea Filippo Presbitero (International Monetary Fund, Universit… Politecnica delle Marche - MoFiR); Roberta Rabellotti (Universit… di Pavia, Department of Political and Social Sciences) |
| Abstract: | An intense process of deregulation and financial liberalization in Latin America has increased competitive pressures and led to bank restructuring and consolidation. This paper looks at firm access to credit in the region, focusing on the role of credit market structure. Using firm-level data from theWorld Bank Enterprise Survey, we find that access to bank credit is very heterogeneous. On average, smaller and less productive firms are less likely to apply for credit and more likely to be financially constrained. We also find that a high degree of bank penetration and competition are significantly correlated with a lower probability that borrowers are financially constrained. Foreign banks penetration has a negative effect on access to credit particularly in less developed and more concentrated markets, while it has a positive influence in more competitive and financially developed markets. |
| Keywords: | announcement, bank, event study, financial crisis, rescue plan |
| JEL: | G01 G21 N20 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wmofir:101&r=sbm |
| By: | Lionel Fontagné (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Department of Economics - European University Institute, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Pamina Koenig (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris - Institut national de la recherche agronomique (INRA)); Florian Mayneris (UCL - Université Catholique de Louvain - Université Catholique de Louvain (UCL) - Belgique, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique); Sandra Poncet (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne) |
| Abstract: | In this paper, we shed light on the selection of the benefi ciaries from the French competitiveness cluster policy which was launched in 2005 and extended to 2012. We disentangle the selection and self-selection eff ects, as emphasized in the theoretical literature on regional and industrial policy. Our main conclusion is that winners were (self-)selected at both steps of the procedure, and that this holds for the three cluster types: worldwide clusters , potentially worldwide clusters and national clusters . We thus provide a methodology which allows us to contrast the e ffective outcomes of the selection process and the official objectives of cluster policies in terms of targeting, and which thus helps in their econometric evaluation. |
| Keywords: | Competitiveness, clusters, international trade, fi rm selection |
| Date: | 2013–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00975554&r=sbm |