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on Small Business Management |
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Issue of 2016‒04‒09
sixteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | José Ernesto Amorós; María Soledad Etchebarne; Isabel Torres Zapata; Christian Felzensztein (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | The internationalization of new small and medium-sized enterprises is a challenge for many developing countries, especially those with open economies and small internal markets like Chile. This study, in an exploratory way, analyzes some of the factors that determine how new ventures are oriented to international markets from their early-stages. This paper develops a model that integrates variables related to firm characteristics like industrial sector, competitiveness, and size of the firm with a degree of internationalization. The empirical analysis uses data from the Global Entrepreneurship Monitor´s (GEM) adult population survey carried out in Chile during the period 2007-2013 (n=4,208). An ordinal logit regression model was used to test the hypotheses. Descriptive results show that 12.8% of Chilean entrepreneurs in the sample have a relatively high tendency towards internationalization and that the factors related to competitiveness are significant in respect to this tendency. The size of the firm and the propensity to create employment are also significant. Practical implications are discussed |
| Keywords: | Early internationalization; industrial sector; size; competitiveness; Chile; Global Entrepreneurship Monitor |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:29&r=sbm |
| By: | Inoue, Hiroyasu; Nakajima, Kentaro; Saito, Yukiko Umeno |
| Abstract: | This study investigates the localization of establishment-level knowledge creation using data from a Japanese patent database. Using distance-based methods, we obtain the following results. First, Japanese patent-creating establishments are significantly localized at the 5% level, with a localization range of approximately 80 km. Second, localization is observed for all patent technology classes, and the extent of localization has a positive relationship with the level of technology measured by R&D investment. Finally, the extent of localization is stronger for establishments that are more productive in terms of both the number of patents and the number of citations received, i.e., quantitatively and qualitatively. These results indicate that geographical proximity is important for knowledge spillover, particularly for knowledge-demanding establishments. |
| Keywords: | Knowledge spillover, Agglomeration, Micro-geographic data |
| JEL: | R11 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:remfce:47&r=sbm |
| By: | Jorge Guzman; Scott Stern |
| Abstract: | While official measures of business dynamism have seen a long-term decline, early-stage venture financing of new companies has reached levels not observed since the late 1990s, resulting in a sharp debate about the state of American entrepreneurship. Building on Guzman and Stern (2015a; 2015b), this paper offers new evidence to inform this debate by estimating measures of entrepreneurial quality based on predictive analytics and comprehensive business registries. Our estimates suggest that the probability of a significant growth outcome (either an IPO or high-value acquisition) is highly skewed and predicted by observables at or near the time of business registration: 69% of realized growth events are in the top 5% of our estimated growth distribution. This high level of skewness motivates the development of three new economic statistics that simultaneously account for both the quantity as well as the quality of entrepreneurship: the Entrepreneurial Quality Index (EQI, measuring the average quality level among a group of start-ups within a given cohort), the Regional Entrepreneurship Cohort Potential Index (RECPI, measuring the growth potential of firms founded within a given region and time period) and the Regional Entrepreneurship Acceleration Index (REAI, measuring the performance of a region over time in realizing the potential of firms founded there). We use these statistics to establish several new findings about the history and state of US entrepreneurship using data for 15 states (covering 51% of the overall US economy) from 1988 through 2014. First, in contrast the secular decline in the aggregate quantity of entrepreneurship observed in series such as the Business Dynamic Statistics (BDS), the growth potential of start-up companies (RECPI relative to GDP) has followed a cyclical pattern that seems sensitive to the capital market environment and overall economic conditions. Second, while the peak value of RECPI is recorded in 2000, the level during the first decade during this century was actually higher than the late 1980s and first half of the 1990s, and also has experienced a sharp upward swing beginning in 2010. Even after controlling for changes in the overall size of the economy, the second highest level of entrepreneurial growth potential is registered in 2014. Third, the likelihood of start-up firms for a given quality level to realize their potential (REAI) declined sharply in the late 1990s, and did not recover through 2008. These findings suggest that divergent assessments of the state of American entrepreneurship can potentially be reconciled by explicitly adopting a quantitative approach to the measurement of entrepreneurial quality. |
| JEL: | C53 L26 O51 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22095&r=sbm |
| By: | Davide Luzzini (Audencia Recherche - Audencia); Markus Amann (Bundeswehr University Munich); Federico Caniato (Politecnico di Milano [Milan]); Michael Essig (Bundeswehr University Munich); Stefano Ronchi (Politecnico di Milano [Milan]) |
| Abstract: | This paper aims to investigate the effects of supplier collaboration on the firm innovation performance as well as the enabling characteristics of the purchasing function. This is an original contribution as few papers empirically test the effect of supplier collaboration (meant as supplier involvement, development, and integration) on innovation performance and –simultaneously – the contribution of strategic sourcing activities and purchasing knowledge. Also, we explore the technological uncertainty of the purchase as an important contingent factor that might influence the firm’s innovation strategy and the emphasis on supplier collaboration or strategic sourcing. Towards this end, we develop a theoretical framework and test it through a survey conducted on a sample of 498 companies worldwide. Results show that innovation, as a category priority, does lead to emphasize supplier collaboration and strategic sourcing which, in turn, ensure better innovation performance. Empirical evidence also shows that, on the one hand, adequate purchasing (managers) knowledge enables greater supplier collaboration and strategic sourcing; on the other hand, technological uncertainty put greater emphasis on innovation strategy as well as on strategic sourcing. |
| Keywords: | Innovation, Supplier collaboration, Strategic sourcing, Purchasing knowledge, Technological uncertainty |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01289738&r=sbm |
| By: | G. Cette; J. Fernald; B. Mojon |
| Abstract: | In the years since the Great Recession, many observers have highlighted the slow pace of productivity growth around the world. For the United States and Europe, we highlight that this slow pace began prior to the Great Recession. The timing thus suggests that it is important to consider factors other than just the deep crisis itself or policy changes since the crisis. For the United States, at the frontier of knowledge, there was a burst of innovation and reallocation related to the production and use of information technology in the second half of the 1990s and the early 2000s. That burst ran its course prior to the Great Recession. Continental European economies were falling back relative to that frontier at varying rates since the mid-1990s. We provide VAR and panel-data evidence that changes in real interest rates have nfluenced productivity dynamics in this period. In particular, the sharp decline in real interest rates that took place in Italy and Spain seem to have triggered unfavorable resource reallocations that were large enough to reduce the level of total factor productivity, consistent with recent theories and firm-level evidence. |
| Keywords: | Productivity, ICT, Europe, convergence, capital flows, mis-allocation. |
| JEL: | E23 E32 O47 O52 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:586&r=sbm |
| By: | Tavassoli, Sam (CIRCLE, Lund University); Bengtsson, Lars (Faculty of Engineering, Department of Industrial Management and Logistics, Lund University); Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies (CESIS), KTH, Stockholm; Jönköping International Business School & Blekinge Institute of Technology, Karlskrona, Sweden) |
| Abstract: | The literature in the Strategic Entrepreneurship (SE) is increasingly embracing the concept and implication of knowledge spillovers. In this paper, we add to the theoretical literature on SE and knowledge spillovers by investigating the types of knowledge spillovers and what they imply for various dimensions of SE. On the one hand, we distinguish between spatial and aspatial knowledge spillovers. On the other hand, we distinguish between various dimensions of SE, i.e. inputs, resource orchestration, and output. Finally, we conceptually link the various types of knowledge spillovers and dimensions of SE and discuss the implications. Doing so, we argue that spatial knowledge spillovers (inter-firm) play the major role in increasing the amount of ‘inputs’ dimension of SE, while the aspatial knowledge (either inter-regional or intra-firm) play the major role not only for ‘inputs’, but also for ‘rresource orchestration’ dimension. At the end, the paper provides suggestions for future research and managerial implications. |
| Keywords: | Strategic entrepreneurship; knowledge spillovers; spatial; aspatial |
| JEL: | L26 O31 R23 |
| Date: | 2016–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_008&r=sbm |
| By: | Markus Demary (Cologne Institute for Economic Research); Joanna Hornik (College of Europe, Department of European Economic Studies); Gibran Watfe (College of Europe, Department of European Economic Studies) |
| Abstract: | The proposal for a European Capital Markets Union (CMU) carries large potential economic benefits from enhancing the financing possibilities for Small and Medium-Sized Enterprises (SMEs). By deepening the capital markets and strengthening crossborder integration, the European Commission hopes to stimulate economic growth and boost employment. In this paper, we discuss to what extent these goals can be achieved, in light of the complex business environment of European SMEs. We outline the different types of SMEs in terms of their financing structures as well as the pervasive differences across the EU, concluding that any policy approach must take into account the diversity of the companies’ financing needs and the market realities in the Member States. We argue that the CMU is likely to have a heterogeneous impact, with some types of SMEs and certain regions gaining more than others. |
| Keywords: | Capital Markets Union, SME financing, European integration |
| JEL: | O16 F21 E61 G32 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:coe:wpbeep:40&r=sbm |
| By: | Goedhuys, Micheline (UNU-MERIT); Mohnen, Pierre (UNU-MERIT & SBE, Maastricht University) |
| Abstract: | Using micro evidence from manufacturing and services firms located in 55 African countries, this paper shows that better management practice, reflected by international management certification, helps firms to raise productivity. Larger and older firms and firms operating closer to the technological frontier are more likely to possess international management standards certification, as do firms engaged in international transactions. Certification in turn raises productivity levels further, in line with a process of continuous improvement. The findings hold for both manufacturing and services firms. |
| Keywords: | standards, productivity, Africa, manufacturing, services |
| JEL: | D02 D24 L15 O33 O55 |
| Date: | 2016–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2016012&r=sbm |
| By: | Shevtsova, Yevgeniya |
| Abstract: | The study explores the productivity effect associated with all types of firm’s export decisions across destinations. Using micro data on Ukrainian manufacturing firms operating during 2000-2005, I show that high-tech firms experience stronger productivity shocks associated with changes in their export status. Low-tech firms, instead, experience productivity improvements only when entering advanced export markets and are, on average, significantly less sensitive to changes in their export status. The results also show that firms’ characteristics, including productivity, not only improve the firm’s ability to self-select into exporting, but also increase its ability to penetrate a larger number of export markets. |
| Keywords: | exports; TFP; destination specific learning-by-exporting effect, export diversification, system GMM |
| JEL: | D24 F14 L25 |
| Date: | 2015–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69793&r=sbm |
| By: | Dilli, Selin (Economic and Social History); Elert, Niklas (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Although institutional reforms are necessary to increase rates of entrepreneurship in European countries, we argue that one-size-fits-all reform strategies are unlikely to be successful. Reform strategies must be informed by a better knowledge of the varieties of European capitalism and the institutional complementarities that drive these differences. We investigate these issues by gathering a number of potentially relevant entrepreneurial regime measurements as well as indicators of formal and informal institutions based on data available from the 2000s onward. We employ principal component analysis, factor analysis and cluster analysis to examine how 21 European countries and the United States cluster in the entrepreneurial and institutional dimensions. Our results reveal six country clusters, or entrepreneurial regimes, with a distinct bundle of entrepreneurial characteristics and institutional attributes. The main implication is that different reform strategies are appropriate to promote entrepreneurship and economic growth in European countries in different clusters. |
| Keywords: | Entrepreneurship; Innovation; Institutions; Regulation |
| JEL: | L50 M13 O31 P14 |
| Date: | 2016–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1118&r=sbm |
| By: | Flavio Calvino; Chiara Criscuolo; Carlo Menon |
| Abstract: | This paper provides new cross-country evidence on the links between national policies and the growth patterns of start-ups. In particular, it compares for the first time the heterogeneous effects of national policies on entrants and incumbents, within the same country, industry, and time period. A number of key facts emerge. First, start-ups in volatile sectors and in sectors that exhibit higher growth dispersion are significantly more exposed to national policies than start-ups in other sectors. Second, start-ups are systematically more exposed than incumbents to the policy environment and national framework conditions. Third, the results suggest that timely bankruptcy procedures and strong contract enforcement are key to establishing a dynamic start-up environment. |
| Date: | 2016–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:29-en&r=sbm |
| By: | Kevin Levillain (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In successful privately held companies, where main shareholders and managers are strongly linked, the exit of a founder creates a dilemma between maximizing their wealth through external investment and perpetuating the organizational model by limiting external shareholders. Papers generally show that the entrepreneurs’ personal motivations are stronger factors, thus explaining the frequent transition of startups to public corporation models. But is there leeway to design different governance models, for example aiming to facilitate the firm’s transmission? Based on a case study of a french management consulting firm, we reveal a variety of parameters that can be at play when designing the ownership and management structure of such a company, and thus of the possible governance systems to be considered. Although the validity area of the case we exhibit is presumably limited, we contend that it opens a category of models that research could explore, strengthen and potentially contribute to diffuse. |
| Keywords: | Corporate governance,Firm succession,Partnerships,Professional Service Firms,Privately held companies |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01292956&r=sbm |
| By: | Alexander Yu. Apokin (National Research University Higher School of Economics); Irina Ipatova (National Research University Higher School of Economics) |
| Abstract: | In this paper we estimate the impact of R&D expenditures on the total factor productivity (TFP) and technical efficiency of two panels of countries in the period 1990-2011. We obtain TFP decomposition estimates using one- and two-step Stochastic Frontier Analysis (SFA) and a modified (O’Donnell, 2008) Data Envelopment Analysis (DEA) framework. Our estimates of TFP growth rates correlate highly with those of OECD, The Conference Board and PWT. The efficiency-based rankings of the countries are similar to those from the results of other studies. The estimates of R&D’s impact on TFP and technical efficiency were obtained controlling for various factors, including the structure of the economy, institutional and infrastructural development and R&D expenditures over a total of five hundred possible model specifications. We found that the increase in total R&D expenditures by 1% of GDP in five years raises the average TFP growth rate by 5.0 to 7.7 percentage points, depending on the sample. Also, raising total R&D expenditures by $1,000 per researcher raises TFP growth five years later by 0.013 to 0.025 percentage points, depending on the sample. Also we have identified a significant impact of lagged R&D expenditures (up to ten years) on the dynamics of the global technology frontier component in the presence of a number of control variables. |
| Keywords: | DEA, SFA, total factor productivity, technical efficiency, R&D expenditures |
| JEL: | O11 O33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:128/ec/2016&r=sbm |
| By: | Miguelez,Ernest |
| Abstract: | This paper documents the influence of diaspora networks of highly-skilled individuals -- that is, inventors -- on international technological collaborations. Using gravity models, it studies the determinants of the internationalization of inventive activity between a group of industrialized countries and a sample of developing and emerging economies. The paper examines the influence exerted by skilled diasporas in fostering cross-country co-inventorship as well as R&D offshoring. The study finds a strong and robust relationship between inventor diasporas and different forms of international co-patenting. However, the effect decreases with the level of formality of the interactions. Interestingly, some of the most successful diasporas recently documented -- namely, Chinese and Indian ones -- do not govern the results. |
| Keywords: | E-Business,ICT Policy and Strategies,Technology Industry,Real&Intellectual Property Law,Population Policies |
| Date: | 2016–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7619&r=sbm |
| By: | Siedschlag, Iulia; O'Toole, Conor; Murphy, Gavin; O'Connell, Brian |
| Keywords: | crisis/European Union/growth |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb2015/2/5&r=sbm |
| By: | Bronwyn H. Hall (Institute for Fiscal Studies); Christian Helmers (Institute for Fiscal Studies and Santa Clara University); Georg von Graevenitz (Institute for Fiscal Studies and Queen Mary University of London) |
| Abstract: | We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold-up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to less entry into technologies regardless of a firm’s size. |
| Keywords: | IPR, patents, entry, technological opportunity, technological complexity, hold-up |
| JEL: | O34 O31 L20 K11 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:16/02&r=sbm |