|
on Small Business Management |
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Issue of 2015‒04‒19
twenty-two papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Riccardo Crescenzi; Alexander Jaax |
| Abstract: | The debate on Russia’s innovation performance has paid little attention to the role of geography. This paper addresses this gap by applying an ‘augmented’ regional knowledge function approach to examine the territorial dynamics of innovation in Russia. The empirical results suggest that regional R&D investments are strong predictors of local innovative performance. However, R&D activities are inadequately connected to regional human capital resources. The activities of foreign firms play a fundamental role as ‘global knowledge pipelines’. Different territorial dynamics of innovation are observed in the European and the Asian part of Russia, with regions to the East of the Urals less likely to benefit from interregional knowledge spillovers. The historical legacy from the Soviet era still emerges as a strong predictor of current innovative performance, shedding light on the importance of long-term path dependency in the Russian geography of innovation. |
| Keywords: | Innovation, R&D, geography, regions, Russia |
| JEL: | R11 R12 O32 O33 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1509&r=sbm |
| By: | Tomasz Kijek (University of Life Sciences in Lublin) |
| Abstract: | This paper tries to find how firms use IPRs in the form of patents to protect innovation capital and find determinants of their effectiveness. The research is based on a large sample of 2960 Polish manufacturing firms that were engaged in developing and/or implementing a product or process innovation in the years 2010-2012. Besides descriptive statistics which show firms’ attitudes toward the effectiveness of patents and their determinants, I apply the knowledge production functionto find a link between patent propensity, R&D and innovation performance. Descriptive analyses show that Polish manufacturing firms rarely use patents as the appropriability mechanism which results in the low level of their perceived effectiveness. It also turns out that the perceived effectiveness of a patent depends on a firm’s size, theinnovation type and technological opportunities. In turn, the results of the knowledge production function estimationallow me to conclude that an increase in patent propensity affects the firm’s innovation performancepositively. |
| Keywords: | innovation capital;appropriability mechanism; intellectual property rights;patent;knowledge production function |
| JEL: | O31 O34 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no60&r=sbm |
| By: | Riccardo Crescenzi; Luisa Gagliardi |
| Abstract: | This paper looks at the link between inter-regional mobility, innovation and firms' behavioural heterogeneity in their reliance on localised external sources of knowledge. By linking patent data (capturing inventors' inter-regional mobility) with firm-level data (providing information on firms' innovation inputs and behaviour) a robust identification strategy makes it possible to shed new light on the geographical mobility-innovation nexus. The analysis of English firms suggests that firm-level heterogeneity - largely overlooked in previous studies - is the key to explain the innovation impact of inter-regional mobility over and above learning-by-hiring mechanisms. A causal link between inflows of new inventors into the local labour market and innovation emerges only for firms that make the use of external knowledge sources an integral part of their innovation strategies. |
| Keywords: | Innovation, Labour Mobility, Inter-regional Migration, Spillovers |
| JEL: | O31 O15 J61 R23 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0174&r=sbm |
| By: | FUKAO Kyoji; IKEUCHI Kenta; YoungGak KIM; KWON Hyeog Ug |
| Abstract: | In this paper, we investigate why information and communication technology (ICT) investment in Japan has stagnated since the 1990s. Given that a notable characteristic of Japan's economy is that small as well as older firms play a much greater role than in other economies, particularly that of the United States, and that previous studies on other countries suggest that larger and younger firms are more likely to adopt new ICT technologies, our analysis mainly focused on firms' size and age.As the first step of our investigation, using firm-level data, we examined whether larger and/or younger firms tend to have a higher ICT intensity. We found that larger firms indeed have a higher ICT intensity. In the case of firm age, there was no simple linear relationship between firm age and ICT intensity. As a next step, we estimated a Cobb-Douglas type production function and tested whether the ICT input coefficient differs across different firm-size groups and firm-age groups. We found that larger firms and younger firms tend to have a higher ICT input coefficient. The other factor that may be responsible for the differences in ICT intensity by firm size and firm age is the constraints on ICT input. To confirm this, we calculated the marginal product of ICT input by firm-size group and by firm-age group using the production function estimates. We found that smaller firms and younger firms tend to have a higher marginal product of ICT input. These findings suggest that smaller firms and younger firms face constraints that prevent them from increasing ICT input.Next, we examined impediments to the full use of ICT by Japanese firms based on our analysis as well as preceding studies by the Japanese government and other Japanese institutions. As factors which may result in smaller firms in Japan facing a higher price for ICT inputs, we pointed out two characteristics of the Japanese economy: the underdeveloped market for business process outsourcing (BPO) and the scarcity of ICT experts. Since access to efficient vendors of ICT services is a key factor for smaller firms' procuring ICT input at a reasonable price and ICT experts in Japan tend to prefer working in large firms, these two factors make ICT input more expensive for smaller firms. On the other hand, as constraints to increasing ICT input for smaller and/or younger firms, we pointed out liquidity constraints and insufficient ICT literacy. We also pointed out a number of other special factors which help to explain why not only the ICT intensity of small firms but also that of all firms in Japan is comparatively low. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15043&r=sbm |
| By: | Joanna Stryjek (Warsaw School of Economics) |
| Abstract: | Tax incentives for innovation, including in particular the incentives for R&D investments, are universally used policy tools. Their availability and generosity have significantly increased over the past three decades. The observed proliferation of R&D tax incentives raises the question of the effectiveness (as well as other potential unknown advantages) of these policy instruments. The purpose of this paper is to carry out an analysis of the reasons (1) why R&D tax incentives became such a popular policy tool and (2) why there was an increase in generosity of this kind of incentives in recent years. As far as the theoretical base for the analysis is concerned, the paper refers particularly to (1) the inter-jurisdictional competition theories relating to tax competition and (2) the (quasi-) public-good nature of knowledge and innovation. The analysis is carried out with the use of the existing data and research on the subject. The results indicate that these are the changes (processes taking place) in the international environment that have considerably stimulated the proliferation and the increase in generosity of R&D tax incentives. |
| Keywords: | innovation; R&D; tax incentives; tax credit; tax competition |
| JEL: | O31 O38 H21 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no109&r=sbm |
| By: | Svensson, Roger (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Firms and governments spend billions of dollars on R&D every year. To increase social welfare, the results of R&D must be commercialized so that consumers can benefit from improved products and lower prices. One measure of R&D output is patents; however, most patent databases contain no information on whether patents have been commercialized, i.e., whether innovations have been introduced in the market. This paper applies a new method to identify innovations in patent databases by relating traditional patent quality indicators (patent renewal, patent equivalents and forward citations) to patent commercialization variables. For this purpose, I use a unique database on Swedish patents that includes information on whether patents are commercialized and whether the commercialization is profitable. The estimations show that commercialization is strongly positively correlated with both patent renewal and patent equivalents but only moderately positively correlated with forward citations. Further, successful innovations are most positively related to patent renewal. Based on the traditional patent quality indicators and estimated parameters in the model, probabilities of commercialization and successful innovations can be predicted. The developed parameters may be used to identify innovations across sectors and regions in other patent databases. |
| Keywords: | Patents; Commercialization; Innovations; Profitability; Patent renewal; Patent equivalents; Forward citations; Predicted probabilities |
| JEL: | O31 O34 |
| Date: | 2015–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1067&r=sbm |
| By: | Bournakis, Ioannis; Christopoulos, Dimitris; Mallick, Sushanta |
| Abstract: | Given the decline in growth momentum in the manufacturing sector in many OECD countries, the role of knowledge-based capital has emerged as a key driver for sustained growth. While empirical studies on estimating knowledge spillovers have usually been undertaken at the country level, the spillover effects can be more definitive only if the analysis is conducted at the industry-level. The effectiveness of international spillovers is conditional on recipient country’s absorptive capacity and this is an important component of the spillover mechanism that has not attracted significant attention so far. This paper therefore assesses the effect of spillovers in driving per capita output growth taking into account the role of absorptive capacity. Our main findings are first, the confirmation of the robust positive relationship between human capital and output growth for 14 OECD countries at industry level. Second, the gains from international spillover are conditional to the level of human capital and the degree of protection of intellectual property rights. Third, countries that improve absorptive capacity can potentially increase gains from spillovers via either trade or FDI (including vertical FDI). Finally, significant heterogeneity is found between high and low-tech industries. The former group is more effective in absorbing spillovers while the latter has failed to reach the critical level of technological advancement in order to absorb foreign and domestic knowledge. |
| Keywords: | Growth; R&D; Knowledge Spillovers; Absorptive Capacity; Human Capital; Intellectual Property Rights |
| JEL: | E24 F1 O3 O4 |
| Date: | 2015–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63542&r=sbm |
| By: | Anna Siemionek (University of Gdansk); Ma³gorzata Siemionek (University of Warmia and Mazury in Olsztyn) |
| Abstract: | The purpose of this paper is to explore the implementation of a performance management system using the balanced scorecard (BSC) within Romanian small and medium sized enterprises (SME). This is a casebased methodological approach. This ensured that the issues were appraised in both an operational and a strategic context. The findings of this research are that balanced scorecards can be implemented within a SME context. However, the motivations for the adoption of the scorecard were both internal and external due to the heavily regulated nature of the organization. The paper analyses the application of the Balanced Scorecard (BSC) in Romanian Small and Medium enterprises (SMEs). Actions necessary for its implementation, obstacles and BSC development trends have been presented. |
| Keywords: | Balanced scorecard, strategy, performance management, SMEs, Romanian enterprises |
| JEL: | G30 M21 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no98&r=sbm |
| By: | Valeria Gattai |
| Abstract: | This paper surveys 67 contributions on internationalisation and performance of Italian enterprises. It covers empirical studies (including working papers), published between 1992 and 2014, taking a microeconomic perspective and analysing the potential links between firms’ global involvement and heterogeneity in economic, human capital and innovation and financial measures. The discussion is organised in an intuitive and non-technical way. At the same time, we devote particular attention to studying the different papers from many points of view, including their internationalisation measures, performance indicators, empirical approach, causality and results. |
| Keywords: | Internationalisation, Performance, Italy, Firm-level data, Survey |
| JEL: | F1 F2 L2 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:300&r=sbm |
| By: | Francesco Crespi; Claudia Ghisetti; Francesco Quatraro |
| Abstract: | The Europe 2020 Strategy has identified the key goal of smart, more inclusive and sustainable growth. In this direction, redirecting firms’ innovation activities towards ecological targets without hampering their competitiveness is of paramount importance. The double externality issue related to environmental innovations makes the policy intervention crucial in order to avoid sub-optimal commitment of resources to the innovation process and ensure the reduction of polluting agents emissions However, the positive outcome of any policy inducement mechanisms is not guaranteed, as different policy frameworks may generate different innovative outcomes. An in depth analysis of environmental policy instruments is therefore all the more necessary in order to gain knowledge on the state of the art and evaluate the scenarios for further improvements. In this perspective, the proposed research project will focus on two main research questions: 1. What are the main existing EU policy instruments explicitly designed to trigger environmental innovations? Which are their main features? 2. Which are the possible avenues leading to successful policy design? The first research question will be tackled by performing a desk research aiming at analyzing the main environmental regulations introduced in Europe so as to produce a clear and comprehensive taxonomy to shed light on common dimensions and main differences. The second research question will be addressed by carrying out empirical analyses based on simulation and econometric techniques. We will focus on a specific environmental policy in the chemical domain so as to draw useful insights on the effect of the policy aiming at redirecting innovation activities to environmental targets and also to highlight the main policy best practices. |
| Keywords: | Academic research, Industrial policy, Innovation, Innovation policy, Patents |
| JEL: | O33 Q53 Q55 Q56 R11 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2015:m:3:d:0:i:90&r=sbm |
| By: | Claudia Ghisetti; Francesco Quatraro |
| Abstract: | The Europe 2020 Strategy has identified the key goal of smart, more inclusive and sustainable growth. In this direction, redirecting firms’ innovation activities towards ecological targets without hampering their competitiveness is of paramount importance. The double externality issue related to environmental innovations makes the policy intervention crucial in order to avoid sub-optimal commitment of resources to the innovation process and ensure the reduction of polluting agents emissions However, the positive outcome of any policy inducement mechanisms is not guaranteed, as different policy frameworks may generate different innovative outcomes. An in depth analysis of environmental policy instruments is therefore all the more necessary in order to gain knowledge on the state of the art and evaluate the scenarios for further improvements. In this perspective, the proposed research project will focus on two main research questions: 1. What are the main existing EU policy instruments explicitly designed to trigger environmental innovations? Which are their main features? 2. Which are the possible avenues leading to successful policy design? The first research question will be tackled by performing a desk research aiming at analyzing the main environmental regulations introduced in Europe so as to produce a clear and comprehensive taxonomy to shed light on common dimensions and main differences. The second research question will be addressed by carrying out empirical analyses based on simulation and econometric techniques. We will focus on a specific environmental policy in the chemical domain so as to draw useful insights on the effect of the policy aiming at redirecting innovation activities to environmental targets and also to highlight the main policy best practices. |
| Keywords: | Academic research, Industrial policy, Innovation, Innovation policy, Patents |
| JEL: | O33 Q53 Q55 Q56 R11 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2015:m:3:d:0:i:91&r=sbm |
| By: | Lukasz Siemieniuk (Uniwersytet w Bialymstoku) |
| Abstract: | The Academic Business Incubators are a significant investment in the development of academic entrepreneurship in Poland. They put the emphasis especially on local development. They are the driving force and a source of motivation to take up new challenges for young people. They allow ambitious people to combine their theoretical knowledge acquired during their studies with practical knowledge. Thanks to the Academic Entrepreneurship Incubators young people become professionals in their actions. Their acquired skills, knowledge, physical, moral and mental characteristics are an excellent basis for the development of their business.The aim of the paper is to discuss the essence of academic entrepreneurship and present issues of the Academic Business Incubators functioning as an institutional form of academic entrepreneurship development in Poland. |
| Keywords: | Business Incubators; academic entrepreneurship; Poland |
| JEL: | D01 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no97&r=sbm |
| By: | Ilaria Suffia |
| Abstract: | Firms’ survival and longevity have recently emerged as a new intriguing theme of business history, spreading from the initial studies on family business to all forms of business. In family business the transition to the next generation can represent a strong limit to survival, as it depends on three different longevity factors: the family members’ involvement and commitment, the preparation of an adequate succession planning and the presence of a competitive advantage. Temporal continuity has become an independent topic involving all types of business, with respect to size, ownership and sectorial diversity. The goal of the analysis was to identify the determinants of longevity. The present research moves along this second line of investigation, focusing on small-scale businesses and taking into consideration a case study. The small and medium-scale (SME) system examined is that of Sesto San Giovanni, one of the most important Italian Company-town during the 20th century, considered the ‘industrial district’ of Milan. The study first verifies the evolution of the local SMEs system, highlighting its development during the century. Having defined the context, the attention shifts to the temporal survival of local businesses and its determinants. Finally, the research includes the history of several enterprise experiences to illustrate the analysis’ results. |
| Keywords: | Economic History, Micro-Business History, Europe, 1913- |
| JEL: | N84 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:301&r=sbm |
| By: | Zemtsov S.P (Russian Presidential Academy of National Economy and Public Administration); Pavlov P.N (Russian Presidential Academy of National Economy and Public Administration); Sorokina A.V. (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The article presents the results of management quality survey in Russian clusters that reveals specifics of cluster support policy in Russia. We compare 22 Russian clusters, supported by the Government, using series of indicators measuring cooperation intensity of cluster participants and activity of cluster management teams. We introduce a description of the typical Russian innovative territorial cluster, based on the average values of the indicators. Our analysis revealed that international communications, information about funding and training courses are highly useful tools to improve collaborations among cluster participants. This paper proposes a methodology for measuring cluster performance by the cluster scale index, cluster development index and cluster management efficiency index. In conclusion, we formulate recommendations for cluster policy improvement in Russia, based on our analysis of indicators’ correlations and comparison between the results of our research and the similar researches in other countries. This analysis will be useful for researchers and policymakers from countries, where cluster policy recently became a popular topic. |
| Keywords: | cluster policy; Russian regions; innovations; quality of management; cluster management team |
| JEL: | O32 O38 L14 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no105&r=sbm |
| By: | Karthik, D.; George, Rejie; Singla, Chitra |
| Abstract: | Despite decades of research, the relationship between international diversification (ID) and performance (P) represents a quandary in the field of International Business.. Though, there seems to be some consensus among scholars on the non-linear nature of the relationship; researchers in the field continue to urge further work in the field for a more nuanced approach to study this relationship. This paper takes a step forward to address that call by arguing that the underlying relationship between ID and P is contingent upon product diversification (PD) of the firm. In particular, we hypothesize and provide evidence that the ID and P relationship is positively moderated by PD when the firm has both high levels of both ID and PD or low levels of both ID and PD. |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:13345&r=sbm |
| By: | Eduardo Nakasone; Maximo Torero |
| Abstract: | This paper analyzes the impact of the Strengthening Women Entrepreneurship in Peru (SWEP) program. SWEP trained female micro entrepreneurs in business management practices (such as accounting and marketing). The training, which was provided in 4- to 5-hour sessions, used soap operas and practical exercises specifically designed for the program. A field experiment was conducted among a group of micro entrepreneurs based in two Peruvian cities (Lima and Piura) to investigate whether SWEP had a positive impact on its beneficiaries. The results show that the program positively affected the adoption of business practices taught by the program. In particular, those who received the training were 4 to 6 percentage points more likely to assign themselves a fixed salary (rather than taking cash from their businesses based on personal needs) and 6 to 11 percentage points more likely to keep better records of potential business contacts. Some positive impacts were found on the adoption of bookkeeping practices (4 to 6 percentage points), although this result is not significant across all of the specifications. Although these changes in adoption rates were large compared with their baseline levels, they were rather small in absolute terms. Therefore, the study did not find any impact on average business performance, household expenditures, or women's empowerment in the household. Qualitative information suggests that micro entrepreneurs were satisfied with the training, but considered that many of the practices taught by the program were difficult to follow because of time constraints. |
| Keywords: | Women, Workforce & Employment, Entrepreneurship, Microbusinesses & Microfinance, business practices, micro entrepreneur, business training, business performance, household outcomes, business training, entrepreneurship, women, peru |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:87916&r=sbm |
| By: | Hana Stverkova (Technical University of Ostrava); Vlasta Humlova (Technical University of Ostrava) |
| Abstract: | In recent years have been recording the number of sectorial clusters of firms and their links with a research and academic sphere unprecedented prosperity in the Czech Republic. The trend and popularity of clusters in regions are considered as an important source of competitive advantage of given locality. In particular SMEs can in this way overcome a certain weaknesses of this type of business and strategically use of so-called synergistic effect. Many times, it was stressed to be SMEs as the foundation of any economy, but they do not have the necessary economic force. These problems help to remove specific form alliances – the cluster. The competitiveness of regions goes hand in hand with support for cluster organizations. Clusters are perceived as modern and well-defined type groupings of entities from certain industry or field. The aim of this paper is to evaluate and assess the efficiency and competitiveness of selected cluster groups in the Moravian and Silesian region. The partial aim is a generalization of international methodologies for assessing the performance of clusters and linking this methodology with the basic principles of competitiveness evaluation. On practical example will be applied Porter's diamond combined with the EFQM model and Cluster Management Excellence methodology. The outcome of the paper will be the evaluation of cluster initiatives. There will also be proposed basic precautions that should lead to the desired performance level of international excellence cluster. For the selection of appropriate proposals will be used the multi-criteria decision analysis, to identify those measures that are currently most advantageous for the cluster. |
| Keywords: | cluster, competitiveness, performance, BEE model, Moravian-Silesian Region |
| JEL: | M1 M14 M21 L62 R10 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no110&r=sbm |
| By: | Bogna Janik (Poznan School of Banking); Krzysztof Kolodziejczyk (Poznan School of Banking) |
| Abstract: | The main objective of our study is to identify and assess chosen aspects of eco-innovativeness of the companies listed within the indices: WIG Energy, WIG Oil & Gas, WIG Basic Materials on the Warsaw Stock Exchange. The scope of this analysis encompasses selected results which facilitate achieving environmental benefits. Our investigation, however, does not cover the expenditure on eco-innovative activities as well as the instruments measuring the influence of eco-innovation. The analysis of the investigated dilemma was based mainly on two research methods, namely survey analysis and digital and documentary source analysis. The results indicate a relatively high eco-innovativeness of the companies in terms of organizational and marketing activities, and low in product and services eco-innovativeness. |
| Keywords: | Eco-innovation, green economy, sustainability, environment |
| JEL: | O13 O30 O32 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no56&r=sbm |
| By: | Maria Thompson (Universidade do Minho, NIPE) |
| Abstract: | Multidisciplinary innovation is the engine of growth of an increasing number of economies. Innovation output depends increasingly on information sharing and cooperation between creative agents. Sharing and cooperation requires the existence of generalised trust. Social capital consists of trust and trust-based networks. Our main goal is to illustrate theoretically the importance of social capital to the growth of an innovation economy. |
| Keywords: | Innovation, Social Capital, Economic Growth |
| JEL: | O00 O31 O41 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:3/2015&r=sbm |
| By: | Welter, Friederike; Smallbone, David |
| Abstract: | The paper reviews the current discussion on institutional change and institutional entrepreneurship. Specifically, it focuses on institutional change agents, by which we mean individuals whose actions can be shown to have contributed to formal or informal institutional change, to the benefit of the wider economy or society as well as to themselves. It aims to explore their antecedents and behaviours, and the contingent factors contributing to institutional change, both intentionally and unintentionally. We find that the concept of institutional entrepreneurship does not provide an adequate conceptual underpinning for incorporating human agency into institutionalised theory. We therefore argue that a focus on institutional change agents may be more productive. Whilst institutional theory recognises the impact of institutions on entrepreneurs and individuals, this paper draws attention to the role of human agency for institutional change. Institutional change can happen intentionally and as an unintended by-product of entrepreneurial or organisational 'path-dependent' behaviour. The implication of this is that it is not only intentional behaviour which contributes to institutional change, but rather any entrepreneurial behaviour which implicitly or explicitly questions existing institutions. Thus, the paper adds to the current debate on institutional entrepreneurship. |
| Keywords: | institutional entrepreneurship,human agency,entrepreneurship context |
| JEL: | B52 D02 L26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:0115&r=sbm |
| By: | Andrew B. Bernard; Andreas Moxnes; Yukiko U. Saito |
| Abstract: | This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down the firm's marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms' buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, consistent with the model. |
| JEL: | D22 D85 F14 L10 L14 R12 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21082&r=sbm |
| By: | Haskel, J; Goodridge, P; Hughes, A; Wallis, G |
| Date: | 2015–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:imp:wpaper:21171&r=sbm |