nep-sbm New Economics Papers
on Small Business Management
Issue of 2017‒11‒26
five papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Role of Strategic Entrepreneurship in Performance of Russian SMEs during the Economic Crisis By Shirokova, Galina V.; Ivvonen, Liudmila; Gafforova, Elena
  2. Verifying High Quality: Entry for Sale By Norbäck, Pehr-Johan; Persson, Lars; Svensson, Roger
  3. Innovation in Russia: the territorial dimension By Crescenzi, Riccardo; Jaax, Alexander
  4. The interactive effects of venture cognitive logic and performance of Russian SMEs in uncertain environment By Shirokova, Galina V.; Laskovaia, Anastasiia
  5. The Intersection of the Fields of Entrepreneurship and Development Economics: A Review towards a New View By Hessels, Jolanda; Naudé, Wim

  1. By: Shirokova, Galina V.; Ivvonen, Liudmila; Gafforova, Elena
    Abstract: This study examines how components of strategic entrepreneurship relate to Russian small and medium-sized firms performance during the economic crisis and to what extent combinations of firm resources determine these relationships. In order to address these issues we surveyed 651 Russian private SMEs. Our results show that during the economic crisis exploitation is positively associated with firm performance. However, we found positive association of exploration with firm performance during the economic crisis instead of negative association. Our results also indicate that relationship between exploration as well as exploitation and firm performance is dependent on different combinations of firm resources.
    Keywords: strategic entrepreneurship, exploration, exploitation, SMEs, firm performance, economic crisis, human capital, financial capital, social capital, Russia,
    Date: 2016
  2. By: Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)); Svensson, Roger (Research Institute of Industrial Economics (IFN))
    Abstract: When and how do entrepreneurs sell their inventions? To address this issue, we develop an endogenous entry-sale asymmetric information oligopoly model. We show that lowquality inventions are sold directly or used for own entry. Inventors who sell post-entry use entry to credibly reveal information on quality. Incumbents are then willing to pay high prices for high-quality inventions to preempt rivals from obtaining them. Using Swedish data on patents granted to small firms and individuals, we find evidence that high-quality inventions are sold under preemptive bidding competition, post entry.
    Keywords: Acquisitions; Innovation; Start-ups; Ownership; Patents; Verification; Quality
    JEL: G24 L10 L20 M13 O30
    Date: 2017–10–30
  3. By: Crescenzi, Riccardo; Jaax, Alexander
    Abstract: The debate on Russia’s innovation performance has paid little attention to the role of geography. This paper addresses this gap by integrating an evolutionary dimension in an ‘augmented’ regional knowledge production function framework to examine the territorial dynamics of knowledge creation in Russia. The empirical analysis identifies a strong link between regional R&D expenditure and patenting performance. However, R&D appears inadequately connected to regional human capital. Conversely, Multinational Enterprises (MNEs) play a fundamental role as ‘global knowledge pipelines’. The incorporation of historical variables reveals that the Russian case is a striking example of long-term pathdependency in regional patterns of knowledge generation. Endowment with Soviet-founded science cities remains a strong predictor of current patenting. However, current innovation drivers and policies also concur to enhance (or hinder) innovation performance in all regions. The alignment of regional innovation efforts, exposure to localised knowledge flows and injections of ‘foreign’ knowledge channelled by MNEs make path-renewal and pathcreation possible, opening new windows of locational opportunity.
    Keywords: innovation; R&D; evolutionary economic geography; regions; BRICS; Russia
    JEL: O32 O33 R11 R12
    Date: 2017–08–03
  4. By: Shirokova, Galina V.; Laskovaia, Anastasiia
    Abstract: Nowadays firms exist in highly unstable environment. The most dramatic and substantial influence changes in external environment have on firm performance. Apart from context, managers and foundersÙ decision-making is also remain very significant root of venture success. We aim at exploring the relationship between top managersÙ venture cognitive logic and firm performance in emerging market context during economic crisis. Particular, we utilize the database of 608 Russian small and medium firms collected in 2015-2016. The results indicate that under higher levels of dynamism and heterogeneity Russian firms will benefit more from using causal logic rather than effectual.
    Keywords: effectuation, causation, firm performance, uncertainty, SMEs, Russia,
    Date: 2016
  5. By: Hessels, Jolanda (Erasmus University Rotterdam); Naudé, Wim (Maastricht University)
    Abstract: Policy makers find it difficult to promote economic development through entrepreneurship and SMEs. In this paper we argue that this is because the positive impact of entrepreneurship is overestimated and its negative impact underestimated. It is moreover also because there is no unified scientific approach towards the role of entrepreneurship in economic development. The scholarly fields that have been interested in this, entrepreneurship economics and development economics, have been elaborated in isolation and only recently started to intersect. This growing intersection is however fragmented, ad hoc, not based on a unifying theoretical approach and suffering from lack of proper measurement. Better policy making will hence benefit from the extension and deepening of the intersection of these fields. We contribute in this regard by providing a conceptual basis for the eventual elaboration of such a unified theoretical approach. We do so by providing an up-to-date review of the intersection of the two scholarly fields, by noting the progress and gaps, by delineating the externalities associated with entrepreneurship in development, and by proposing a new synthesis definition of entrepreneurship.
    Keywords: entrepreneurship, development, growth, occupational choice
    JEL: F23 L26 L25 O38 O57
    Date: 2017–10

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