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on Small Business Management |
| By: | Getahun, Tigabu Degu |
| Abstract: | This paper empirically analyzes the productivity, profitability, innovation and network effects of a public policy promoting micro and small scale industrial clusters in Ethiopia. To this end, firm-level survey data was collected from randomly selected clustered leather shoe manufacturers that have directly benefited from the policy and those that do not, both before and after the cluster policy intervention. The results from econometric analysis suggests that the industrial cluster policy adversely impacts the productivity, profitability, growth, and innovation performance of the small and micro leather shoe manufacturing enterprises that moved to the government created clusters . The analysis of the transmission mechanism further reveals that the relocated cluster policy hampers the treated firms’ collaborative business and knowledge network and aggravates their growth impediments which includes lack of trust, high customer and supplier search and reach cost, lack of market information, imperfect contract enforcement, delays in the supply of raw materials and the lack of skilled labor. The time lag between policy implementation and its impacts may conceal the long-term impact of the cluster policy. The overwhelming majority of the representatives of treatment group firms also continue to believe that their buisness performance will improve over time as a result of their participation in the MSE cluster development program. This study is a pioneer to quantitatively evaluate the productivity, profitability, innovation and network effect of industrial cluster policy in Ethiopia. |
| Keywords: | Cluster Policy, Productivity, Profitability, Networks, Small and Micro Enterprises, Ethiopia, Institutional and Behavioral Economics, Production Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, D02, D04, D25, D85, L11, L52, L67, O14, |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:229713&r=sbm |
| By: | Anna Białek-Jaworska (Faculty of Economic Sciences, University of Warsaw); Natalia Nehrebecka (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland) |
| Abstract: | The purpose of the paper is to verify the applicability of the pecking order theory to Polish non-finance companies’ inclination to use credit-based financing, as well as to indicate the long-term and short-term bank credit use determinants, including the monetary policy impact and the year effect. The analysis covers a sample of 800,000 observations across the period 1995-2011, using the GMM sys-tem method. The impact of foreign and government ownership, the share of exports, profitability, liquidity, fixed assets collateral and monetary policy are the determinants of the long-term and short-term bank loan in business financing investigated in the study. For small and medium-sized enterprises, a negative correlation is found between profitability and both long- and short-term loan financing, as well as between liquidity and short-term loan financing, ac-cording to what the pecking order theory assumes. A negative impact of restrictive monetary policy effected via interest rate and rate of exchange channels on Polish firms’ decisions as regards financing their business with short-term bank loan is found. The effect of the current and previous period payment gridlocks on short-term bank loan financing experienced by small and medium-sized enterprises should help banks adjust their loan offer to SMEs’ needs. The correlation between the bankruptcy risk level and companies’ short-term borrowing decisions – positive in the group of large firms and ad-verse among SMEs – should guide banks’ loan committees when modifying their creditworthiness analysis and loan application verification procedures. The use of (S)VAR panel method for investigating the response of the bank loan financing level to the interest rate, exchange rate and credit risk disturbance (shock) are the original aspects of the study. The empirical evidence that a higher share of liquid securities in assets reduces the use of short-term loan and that in small firms its level in a previous period is positively correlated with the use of short-term bank loan financing is the added value of the paper. |
| Keywords: | bank loan, long-term bank loan, short-term bank loan, pecking order theory, system GMM, (S)VAR |
| JEL: | G32 E52 G21 C23 C33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2016-03&r=sbm |
| By: | Dolores Añón Higón (Departamento de Economía Aplicada II, Universitat de València) |
| Abstract: | This paper explores to what extent conducting internal basic research, as opposed to external basic research (i.e. outsourcing and collaboration with universities) encourages firms to bring new products into the market ahead of competitors, and contributes to innovation performance. The analysis is based on a sample of Spanish manufacturing firms over the period 2006-2012. Our findings suggest that conducting in-house basic research affects firm’s propensity to introduce product novelties. Furthermore, performing this activity continuously affects the probability of being product-pioneer in low and medium-low tech sectors. Collaboration with universities also helps in introducing new products ahead of competitors, but contracting scientific research from universities does not lead to a pioneer strategy |
| Keywords: | basic research, in-house, outsourcing, collaboration, pioneer, imitation |
| JEL: | D22 L21 O32 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1601&r=sbm |
| By: | Vítor Castro (Faculty of Economics, University of Coimbra, and Economic Policies Research Unit (NIPE)); Abdellah Bouchellal (Laboratoire d'Economie d'Orléans 2, Université d'Orléans, CNRS) |
| Abstract: | In this paper, we analyse whether the likelihood of the bank-firm relationships ending is dependent on their age or not and whether the respective behaviour is smooth or changes over their length. A parametric duration analysis is employed in this analysis. We start by estimating a continuous-time Weibull duration model over the duration of the relationships between 1185 firms and one of the major French banks. Our findings show that the likelihood of the relationships between them ending increases over their duration, but other specific factors to the firms, to the bank, to their own relationship and certain pricing conditions also play an important role in the duration of those relationships. Additionally, we extend the baseline Weibull duration model in order to allow for changepoints in the duration dependence parameter. The empirical findings support the presence of a change-point: positive duration dependence is observed for those relationships that last less than 23 years, but no evidence of duration dependence is found for longer events. Hence, we conclude that the likelihood of these relationships ending increases over time, but only until about 23 years of duration; then the relations become stronger and the likelihood of they ending is no longer dependent on its duration but on other conditionings. |
| Keywords: | Bank-firm relationships, duration analysis, duration dependence, change-points |
| JEL: | C41 G21 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:1/2016&r=sbm |
| By: | Quan Hoang Vuong; Thu Hang Do; Thu Trang Vuong |
| Abstract: | This paper introduces new results obtained from a statistical investigation into a3071-observation data set collected from a Vietnamese nationwideentrepreneurship survey. From established relationships, such factors aspreparedness, financial resources and participation in social networks areconfirmed to have significant effects on entrepreneurial decisions. Entrepreneurs,both financially constrained and unconstrained, who have a business plan tend tostart their entrepreneurial ventures earlier. Also, financial constraints have aprofound impact on the entrepreneurial decisions. When perceiving the likelihoodof success to be high, an entrepreneur shows the tendency for prompt action onbusiness ideas. But when seeing the risk of prolonging the waiting time to firstrevenue, a prospective entrepreneur would be more likely to wait for morefavorable conditions despite the vagueness of "favorable".Additionally, empirical computations indicate that there is a 41.3% probabilitythat an extant entrepreneur who is generating revenue sees high chance ofsuccess. Past work and entrepreneurial experiences also have positive impactson both the entrepreneurial decisions and perceived chance of success. |
| Keywords: | Entrepreneurship; new venture; transitional economies |
| JEL: | L26 M13 P27 |
| Date: | 2016–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/224585&r=sbm |
| By: | Golikova Victoria (National Research University Higher School of Economics); Kuznetsov Boris (National Research University Higher School of Economics) |
| Abstract: | The aim of the research is to conduct an empirical investigation and reveal what types of globalization and innovation strategies in turbulent and unfavorable regional institutional environment are most likely to be associated with different trajectories of Russian manufacturing firms’ performance in 2007-2012. We employ the results of empirical survey of 1000 medium and large enterprises in manufacturing (2009) linked to financial data from Amadeus database and the data on the regional institutional environment. We test that (1) introduction of innovations before the crisis ceteris paribus helped the firms to successfully pass the crisis and recover. We expect that (2) companies that became globalized before the crisis (via importing of intermediate and capital goods; exporting; FDI; establishment of partner linkages with foreign firms) ceteris paribus are more likely to successfully pass the crisis and grow. And (3) propose the positive effect of synergy of innovation efforts and globalization strategy of the firm. We expect that the abovementioned factors are complimentary and reinforce the ability of the firm to recover after crisis shock. We found strong support for the hypothesis that firms financing introduction of new products before the crisis and simultaneously managed to promote and sell them on the global market were rewarded by quick return to the growing path after global crisis. Other strategies, i.e. solely innovations without exporting play insignificant role while exporting without attempts to introduce new products contribute even negatively to post-crisis recover. Institutional environment also matters: in the regions with less level of corruption firms were more likely to grow after the crisis |
| Keywords: | firm performance; globalization; innovation; manufacturing firms; strategy |
| JEL: | Z |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:123/ec/2016&r=sbm |
| By: | Simone TERZANI; Roberta GUERRIERI |
| Abstract: | Nell’ambito dei gruppi d’imprese, il modello public company è stato per molto tempo considerato l’unico paradigma in grado di allocare le risorse in modo efficiente e di indirizzare più efficacemente le imprese verso obiettivi di creazione del valore. Numerosi filoni di studi, tuttavia, attestano che un’elevata percentuale di società, anche quotate, è caratterizzata da una forte concentrazione dell’azionariato nelle mani di uno o più soggetti, spesso membri di una dinastia imprenditoriale familiare, con performance economico-finanziarie degne delle public company. Nel presente lavoro, basandoci sulle premesse teoriche sopra indicate, si riportano i risultati dell’analisi empirica che abbiamo condotto sulle performance economico-finanziarie di un campione di 120 gruppi, familiari e non, quotati al Mercato Telematico Azionario di Borsa Italiana nel decennio 2002-2011. L’orizzonte temporale indagato ha permesso di confrontare le due categorie di gruppi nel periodo pre-crisi (2002-2006) e in quello di crisi (2007-2011) evidenziando per i gruppi familiari notevoli difficoltà all’inizio della crisi ma anche una maggior capacità di ripresa rispetto ai gruppi non familiari. Il presente lavoro vuol cosí contribuire al filone di studi sulle imprese familiari volto a dimostrare la capacità dei family business di sapersi consolidare nel tempo e di riuscire a raggiungere livelli di performance elevati, confrontabili, se non superiori, con quelli raggiunti da altre imprese con strutture azionarie diverse. |
| Keywords: | Family business, listed companies, financial performance, financial crisis |
| JEL: | M10 M41 |
| Date: | 2015–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pia:papers:00019/2015&r=sbm |
| By: | Carlos Carreira (Faculty of Economics and GEMF, University of Coimbra, Portugal); Paulino Teixeira (Faculty of Economics and GEMF, University of Coimbra, Portugal) |
| Abstract: | Under cleansing, productivity-enhancing reallocation is expected to be accelerated in recessions. In this paper we contribute to the analysis of one component of the National Systems of Entrepreneurship (namely capital market frictions) by showing that in the extreme scenario of deep recession efficiency in resource reallocation can actually be reduced. Using data from the pronounced Portuguese economic crisis, we do find a spike in firm exit in 2008–2012 vis-à-vis the 2004–2007 pre-crisis period, and a substantial increase in job destruction as well. But we did not find any strong evidence that job reallocation is countercyclical, while a non-negligible fraction of high-productivity firms actually shut down. In turn, our selected proxies for strictness in credit markets reveal that in deep recessions they are seemingly associated with increased firm exit and lower employment creation. Taken in round, our results show that credit market stringency in conjunction with an unfavourable economic cycle is likely to generate a long-lasting destructive process. |
| Keywords: | Entry and exit; firm productivity; aggregate productivity growth; financial constraints; severe recessions. |
| JEL: | D24 L11 L25 L26 L60 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:wpaper:2016-02.&r=sbm |
| By: | Ostapchuk, Igor; Balmann, Alfons; Curtiss, Jarmila |
| Keywords: | total factor productivity (TFP), technical efficiency, profit, costs, agriculture, agroholdings, independent enterprises, Agribusiness, Production Economics, Productivity Analysis, |
| Date: | 2015–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaml15:212745&r=sbm |
| By: | Sebastiano Fadda (dpt. Economia) |
| URL: | http://d.repec.org/n?u=RePEc:ast:wpaper:0017&r=sbm |