nep-sbm New Economics Papers
on Small Business Management
Issue of 2018‒04‒16
25 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Innovation and Geographical Spillovers: New Approaches and Empirical Evidence By Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
  2. Collaboration Networks and Innovation: How to Define Network Boundaries By Galaso, Pablo; Kovářík, Jaromír
  3. Entrepreneurship in Micro and Small Enterprises: Empirical Findings from Resurveys in Northeastern Areas of Delhi, India By BANERJI, Asit; GOTO, Jun; ISHIZAKI, Hironori; KUROSAKI, Takashi; LAL, Kaushalesh; PAUL, Shampa; SAWADA Yasuyuki; TSUDA, Shunsuke
  4. Innovation, Productivity Dispersion, and Productivity Growth By Lucia Foster; Cheryl Grim; John C. Haltiwanger; Zoltan Wolf
  5. Eco-strategies and firm growth in European SMEs By Jové Llopis, Elisenda,; Segarra Blasco, Agustí, 1958-
  6. Structural Change in Firm Dynamics, Inter-firm Network, and Geography (Japanese) By OGURA Yoshiaki; SAITO Yukiko
  7. Context and the role of policies to attract foreign R&D in Europe By Rodríguez-Pose, Andrés; Wilkie, Callum
  8. Public Support to Business R&D and the Economic Crisis: Spanish Evidence By Ascensión Barajas; Elena Huergo; Lourdes Moreno Marín
  9. Importance of Creativity of Employees in Adaptation of Food Companies to Innovative Trends in the World By Klimczuk-Kochańska, Magdalena
  10. Structural Reforms and Firms’ Productivity: Evidence from Developing Countries By Wilfried A. Kouamé; Sampawende J Tapsoba
  11. The nature of firm growth By Pugsley, Benjamin W.; Sedlacek, Petr; Sterk, Vincent
  12. Where New Creative Industries Locate? Evidence from French Departments By Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
  13. Foreign multinationals, selection of local firms, and regional productivity in Indonesia By Saito, Hisamitsu
  14. An evaluation of knowledge management system's components and its financial and non-financial implications By André Luhn; Sergey Aslanyan; Christian Leopoldseder; Pamela Priess
  15. Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs By Romain Gandia; Elodie Gardet
  16. R&D, IP, and firm profits in the North American automotive supplier industry By Lutz, Stefan Heinz Hermann
  17. Bank credit and business financing By Morales Arenas, Diana
  18. Taking stock of firm-level and country-level benefits from foreign direct investment By Bruno, Randolph Luca; Campos, Nauro F.; Estrin, Saul
  19. Innovation Networks and Clusters Dynamics By Desmarchelier, Benoît; Zhang, Linjia
  20. European Territorial Trends - Facts and Prospects for Cities and Regions Ed. 2017 By Carlo Lavalle; Nicola Pontarollo; Filipe Batista e Silva; Claudia Baranzelli; Chris Jacobs-Crisioni; Boyan Kavalov; Mert Kompil; Carolina Perpiña Castillo; Pilar Vizcaino Martinez; Ricardo Ribeiro Barranco; Ine Vandecasteele; Vasco Pinto Nunes Nogueira Diogo; Jean-Philippe Aurambout; Carolina Serpieri; Mario Alberto Marin Herrera; Konstantin Rosina; Silvia Ronchi; Davide Auteri
  21. Unlocking digital entrepreneurship through technical business process By Fahim Akhter
  22. The Aerospace Cluster in Washington State, Microeconomics of Competitiveness Study Case By Alana McKenzie; Raluca Nica; Andra Roman; Corina Ioana Petrea
  23. Validation of the Innovation Radar assessment framework By Vincent Van Roy; Daniel Nepelski
  24. Management innovation driving sustainable supply management By Koster, Mieneke; Vos, Bart; Schroeder, Roger
  25. Cluster performance: an attempt to evaluate the Lithuanian case By Salvatore Monni; Francesco Palumbo; Manuela Tvaronavičienė

  1. By: Segarra Blasco, Agustí, 1958-; Arauzo Carod, Josep Maria; Teruel, Mercedes
    Abstract: This special issue concerns the generation of knowledge and geographical spillovers, and it includes a selection of papers that cover existent research gaps with respect to the role of space in the promotion of knowledge spillovers and innovation. These papers analyse different typologies of innovation processes carried out in several geographical areas and highlight heterogeneities of these processes, after focusing on several determinants in innovation. Empirical results indicate the positive role of geographical spillovers and the importance of accurate matching among firms, in industry and with regard to regional characteristics, in order to ensure the generation of knowledge and innovation. Keywords: innovation, geography, spillovers. JEL Codes: O30, R10
    Keywords: Innovacions tecnològiques -- Direcció i administració, Economia regional, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  2. By: Galaso, Pablo; Kovářík, Jaromír
    Abstract: Numerous studies in management, sociology, and economics have documented that the architecture of collaboration networks affects the innovation performance of individuals, firms, and regions. Little is known though about whether the association between collaboration patterns and innovation outcomes depends on the network geographical boundaries chosen by the researcher. This issue is crucial for both policy-makers and firms that rely on innovation. This article compares the association between collaboration networks and future patenting between regional and country-level collaboration networks. If we relate future innovation to the global, country-wide network our statistical analysis reproduces the findings of the previous literature. However, we find systematically less important effects of regional innovation patterns on subsequent patenting of innovators. Hence, managers and policy makers should choose the boundaries of the innovation networks that they look at carefully, aiming for integration into larger-scale collaboration communities.
    Keywords: innovation, networks, patents, network boundary, boundary specification problem
    JEL: O31 O32 O34 R11
    Date: 2018–03–08
  3. By: BANERJI, Asit; GOTO, Jun; ISHIZAKI, Hironori; KUROSAKI, Takashi; LAL, Kaushalesh; PAUL, Shampa; SAWADA Yasuyuki; TSUDA, Shunsuke
    Abstract: To deepen our understanding of the urban informal sector and small enterprises in developing countries, we surveyed micro and small entrepreneurs in northeastern areas of Delhi, India. The baseline survey was conducted in November–December 2014, covering 506 sample entrepreneurs in both manufacturing and service sectors. Between June and August 2017, the endline survey was conducted to collect panel information on firm performance. As the demonetization policy in November 2016, in which high value banknotes were demonetized overnight, affected small and micro enterprises, specific questions on its impact were added in the endline survey. Between the two surveys, artefactual field experiments were also applied to the subsample to collect information on social, risk, and time preferences. In this paper, we present details of the resurveys implemented under this project and describe the key variables collected. Among 226 entrepreneurs who participated in the artefactual field experiments, many showed their tendency for present bias and high discount rates. On average, the participant entrepreneurs behaved in an altruistic manner, took substantial risk, and reduced their risk-taking when they were assigned the role of the leader. Out of 287 entrepreneurs who participated in the endline survey, 50% were unregistered with the government, implying that they were highly informal. During the period between baseline and endline surveys, innovations to expand the business were not very active, either. The majority of sample entrepreneurs were affected at least temporarily by the demonetization in 2016.
    JEL: O17 O14 L26
    Date: 2018–03
  4. By: Lucia Foster; Cheryl Grim; John C. Haltiwanger; Zoltan Wolf
    Abstract: We examine whether underlying industry innovation dynamics are an important driver of the large dispersion in productivity across firms within narrowly defined sectors. Our hypothesis is that periods of rapid innovation are accompanied by high rates of entry, significant experimentation and, in turn, a high degree of productivity dispersion. Following this experimentation phase, successful innovators and adopters grow while unsuccessful innovators contract and exit yielding productivity growth. We examine the dynamic relationship between entry, productivity dispersion, and productivity growth using a new comprehensive firm-level dataset for the U.S. We find a surge of entry within an industry yields initially an increase in productivity dispersion and then after a significant lag an increase in productivity growth. These patterns are more pronounced for the High Tech sector where we expect there to be more innovative activities. These patterns change over time suggesting other forces are at work during the post-2000 slowdown in aggregate productivity.
    JEL: E24 L26 M13 O31
    Date: 2018–03
  5. By: Jové Llopis, Elisenda,; Segarra Blasco, Agustí, 1958-
    Abstract: This study investigates the effects of eco-strategies on firm performance in terms of sales growth in an extensive sample of 11,336 small and medium-sized enterprises (SMEs) located in 28 European countries. Our empirical results suggest that not all eco-strategies are positively related to better performance, at least not in the short term. We find that European companies using renewable energies, recycling or designing products that are easier to maintain, repair or reuse perform better. Those that aim to reduce water or energy pollution, however, seem to show a negative correlation to firm growth. Our results, also, indicate that high investment in eco-strategies improves firm growth, particularly in new members that joined the EU from 2004 onwards. Finally, we observe a U-shaped relationship between eco-strategies and firm growth, which indicates that a greater breadth of eco-strategies is associated with better firm performance. However, few European SMEs are able to either invest heavily or undertake multiple eco-strategies, thus leaving room for policy interventions. Keywords: eco-strategy, firm growth, Europe, SMEs
    Keywords: Empreses petites i mitjanes -- Aspectes ambientals -- Unió Europea, Països de la, Planificació estratègica -- Aspectes ambientals, Empreses -- Creixement, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses,
    Date: 2017
  6. By: OGURA Yoshiaki; SAITO Yukiko
    Abstract: This paper investigates how firm dynamics, such as firm growth and firm exit, are influenced in an unpreceded aging society using firm-level panel data for 10 years. We find that both firm age and executive age increase due to insufficient entry and exit rates and executive turnover, especially for firms in periphery regions, which prevents firm growth. Because executive age is positively related to firm exit rate, we expect that firm exit rate will increase in the future. Firm exit caused by the transaction partner's exit, i.e., chain of exit, occurs more frequently in periphery regions because low firm location density increases the search cost of new transaction partners. These results imply the necessity of policy depending on firm age stage and regions.
    Date: 2018–03
  7. By: Rodríguez-Pose, Andrés; Wilkie, Callum
    Abstract: This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.
    Keywords: foreign R&D; multinational enterprises (MNEs); direct and indirect support; knowledge flows; innovation; Europe
    JEL: N0
    Date: 2016–09–20
  8. By: Ascensión Barajas (Unit of Impact Assessment, CDTI, Centro para el Desarrollo Tecnológico Industrial. Universidad Autónoma de Madrid); Elena Huergo (GRIPICO (Group for Research in Productivity, Innovation and Competition). Department of Economic Analysis, Universidad Complutense de Madrid.); Lourdes Moreno Marín (GRIPICO (Group for Research in Productivity, Innovation and Competition). Department of Economic Analysis, Universidad Complutense de Madrid.)
    Abstract: The objective of the present study is to compare the effect of public support of business R&D on technological inputs and outputs before and during the recent economic crisis. To do so, we use information provided by the Centre for the Development for Industrial Technology (CDTI), which is the main public agency in Spain that grants financial aid of its own to companies for the execution of R&D projects. Specifically, we consider firms supported through CDTI programmes for periods the 2002-2005 and 2010-2012. Impact assessment is conducted using "matching" techniques. Our preliminary results suggest that, during the crisis, public support continued to have positive effects on the resources devoted to R&D activities, and also increased the technological outputs obtained from these resources.
    Keywords: Impact assessment, Economic crisis, Public aid, Business R&D.
    JEL: H81 L2 O3
    Date: 2017
  9. By: Klimczuk-Kochańska, Magdalena
    Abstract: The purpose of this paper is to identify a gap in knowledge and understanding of the need to motivate employees for creative and pro-innovation activities in the organization. Another aim is to provide an overview of innovation in one of the low-tech industries - in the food industry. The concept of innovation and creativity is presented. The characteristics of the concept of creativity have been briefly described. Then examples of ways how food companies are dealing with current trends in the area of innovation in the world are briefly described. Among these trends, the focus on radical innovations has been highlighted, more tightly aligned firm innovation and business strategies, better insight into customers' needs and increased collaboration with other entities. Analyses based on the desk research technique were performed with the inclusion of literature regarding the examples of implementation of innovations in the food sector companies. The conducted analyses allowed us to confirm that exemplary food companies are actively engaged in improving their competitive position, by introducing creative solutions in their products or by new ways of organizing different processes. It has been shown that creativity should be used as the primary source of innovation in the food industry.
    Keywords: creativity, innovations, low-tech sectors, crowdfunding, sharing economy, open innovation
    JEL: M13 O32 Q18
    Date: 2017
  10. By: Wilfried A. Kouamé; Sampawende J Tapsoba
    Abstract: This paper assesses the effects of structural reforms on firm-level productivity for 37 developing countries from 2006 to 2014 period. It takes advantage of the IMF Monitoring of Fund Arrangements dataset for reform indexes and the World Bank Enterprise Surveys for firm-level productivity. The paper highlights the following results. Structural reforms such as financial, fiscal, real sector, and trade reforms, significantly improve firm-level productivity. Interestingly, real sector reforms have the most sizeable effects on firm-level productivity. The relationship between structural reforms and firm-level productivity is nonlinear and shaped by some firms’ characteristics such as the financial access, the distortionary environment, and the size of firms. The pace of structural reforms matters since being a “strong reformer” is associated with a clear productivity dividend for firms. Finally, except for financial and trade reforms, all structural reforms under consideration are bilaterally complementary in improving firm-level productivity. These findings are robust to several sensitivity checks.
    Date: 2018–03–19
  11. By: Pugsley, Benjamin W.; Sedlacek, Petr; Sterk, Vincent
    Abstract: Only half of all startups survive past the age of ve and surviving businesses grow at vastly di erent speeds. Using micro data on employment in the population of U.S. businesses, we estimate that the lion's share of these differences is driven by ex-ante heterogeneity across fi rms, rather than by ex-post shocks. We embed such heterogeneity in a fi rm dynamics model and study how ex-ante differences shape the distribution of fi rm size, "up-or-out" dynamics, and the associated gains in aggregate output. "Gazelles" - a small subset of startups with particularly high growth potential - emerge as key drivers of these outcomes. Analyzing changes in the distribution of ex-ante fi rm heterogeneity over time reveals that gazelles are driven towards extinction, creating substantial aggregate losses.
    Keywords: firm dynamics; startups; macroeconomics; big data
    JEL: E23 E24
    Date: 2017–11
  12. By: Arauzo Carod, Josep Maria; Coll Martínez, Eva; Turcu, Camelia
    Abstract: This paper focuses on the creative industries and the role played by the existing spatial distribution and agglomeration economies of these activities in relation to their entry decisions. Our main statistical source is the Répertoire des entreprises et des établissements (REE) provided by INSEE, which has plant-level microdata on the location of new establishments between 2006 and 2013. We use Count Data Models to show that location determinants are quite similar in creative and non-creative industries and that specialisation in creative industries positively influences entry of all industries. Keywords: creative industries, firm location, industrial organisation, France
    Keywords: Localització industrial -- França, Organització industrial -- França, Indústries culturals -- França, Indústria del lleure -- França, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2018
  13. By: Saito, Hisamitsu
    Abstract: We examine whether the entry of multinational firms into a region induces the exit of low-productivity local firms from the market and the extent to which this improves regional productivity. For this purpose, we employ establishment-level data on the food manufacturing industry in Indonesia. After controlling for spillover effects, we find a greater left truncation in productivity distribution of local firms in regions with larger number of multinational firms. In addition, we find that this effect has greater impacts on regional productivity than spillover effects. Therefore, in order to maximize the regional benefits of foreign direct investment, governments should facilitate the entry and exit of local firms.
    Keywords: Firm selection; Regional productivity; Spillovers
    JEL: F23 L11 R12
    Date: 2018–03–07
  14. By: André Luhn (Pan-European University); Sergey Aslanyan (Pan-European University); Christian Leopoldseder (Pan-European University); Pamela Priess (Pan-European University)
    Abstract: Knowledge Management is an inclusive process of gathering knowledge, processing it and then utilising it in order to improve firm productivity and seek solutions to crucial problems. This paper is based on the assessment of structural framework of a Knowledge Management System (KMS) and how these components influence the financial and non-financial aspects of an organisation. The study mainly focuses on the evaluating the influence of KMS on the overall performance of SMEs in Austria. The current study investigates previous researches and theories to build a comprehensive understanding of the topic. It also conducts a quantitative analysis to evaluate the relationships between Knowledge Management Capabilities, Processes, and Firm Performance. To get first-hand information related to knowledge management practices, 126 managers and senior employees from 72 Austrian SMEs are surveyed. According to the results, KM capabilities have a significant positive relationship with KM processes. Moreover, KM processes in the Austrian SMEs have a significant positive influence on financial and non-financial performance. The study recommends increased focus on KM practices for improved overall performance.
    Keywords: Knowledge Management Capabilities,Knowledge Management Systems,Correlation,Regression Analysis,Learning Organisation,T-Shaped Skills,Non-Financial Performance,Financial Performance,Knowledge Management Processes
    Date: 2017–12–29
  15. By: Romain Gandia (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Elodie Gardet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Recent studies call for reconsideration of the predictions of resource dependence theory, in light of contemporary industrial and economic environments. This study accordingly investigates the influence of dependence on the strategic choice to innovate by focusing on a rarely studied topic, namely, the sources of dependence. In studying small and medium-sized video game enterprises, this article provides empirical validation of dependence phenomena. These companies have limited resources, which inevitably creates dependence, exacerbated in innovative contexts because of the prevalence of negative effects, such as opportunism, abuse of power, limited innovation, or inequitable distributions of economic value. To deal with these negative effects, some enterprises use cooperation or integration strategies to try to minimize their dependence. The strategic choice then might be conditioned. The results of a comparative and qualitative study of five video game developers show that a lack of resources and skills is the primary source of dependence. In addition, a hierarchy of sources of dependence seems to guide the strategic choices of developers to innovate.
    Date: 2018
  16. By: Lutz, Stefan Heinz Hermann
    Abstract: Economic theory implies that research and development (R&D) efforts increase firm productivity and ultimately profits. In particular, R&D expenses lead to the development of intellectual property (IP) and IP commands a return that increases overall profits of the firm. This hypothesis is investigated for the North American automotive supplier industry by analyzing a panel of 5000 firms for the years 1950 to 2011. Results indicate that R&D expenses in fact increase profitability at the firm level. In particular, increases in the R&D expense to sales ratio lead to increases in the profit contribution of intangible assets relative to sales. This indicates that more R&D intensive IP should command higher royalty rates per sales when licensed to third parties and within multinational enterprises alike.
    Keywords: productivity,intellectual property,royalties,MNE,transfer pricing
    JEL: D24 L20 L62 M21
    Date: 2018
  17. By: Morales Arenas, Diana (Tilburg University, School of Economics and Management)
    Abstract: This dissertation consists of three essays on empirical banking. They explore the bank lending granted to businesses. Chapter 1 explores the effect of less stringent collateral requirements on small firms’ employment growth. Not having to pledge collateral seems to have an effect on the growth strategy of very small firms leading to a more rapid increase of their workforce. Chapter 2 analyzes the access to long-term credit by firms following takeovers of many domestic banks by foreign banks. Overall, our findings suggest that a wholesale takeover of domestic banks by foreign banks has a widely-shared positive impact on loan rate, in the immediate post-takeover period, and on the loan amount, spread over time. Chapter 3 studies the impact of banking sector reforms on bank lending and trade credit among medium and large firms. A much stronger regulation, either loosening or tightening, seems to spur a bank lending complement, trade credit, among medium and large firms.
    Date: 2018
  18. By: Bruno, Randolph Luca; Campos, Nauro F.; Estrin, Saul
    Abstract: The empirical literature has not reached a conclusion as to whether foreign direct investment (FDI) yields spillovers when the host economies are emerging. Instead, the results are often viewed as conditional. For macro studies, this means that the existence and scale of spillover effects is contingent on the levels of institutional, financial or human capital development attained by the host economies. For enterprise level studies, conditionality relates to the type of inter-firm linkages; forwards, backwards, or horizontal. In this paper, we conduct a systematic meta-analysis on emerging economies to summarize these effects and throw light on the strength and heterogeneity of these conditionalities. We propose a new methodological framework that allows country- and firm-level effects to be combined. We hand-collected information from 175 studies and around 1100 estimates in Eastern Europe, Asia, Latin America and Africa from 1940 to 2008. The two main findings are that: (a) “macro” effects are much larger than enterprise-level ones, by a factor of at least six; and (b) the benefits from FDI into emerging economies are substantially less “conditional” than commonly thought.
    Keywords: foreign direct investment; overall effects; firm-to-firm effects; meta-regression-analysis; enterprise performance; aggregate productivity.
    JEL: F23 O12
    Date: 2018–02–14
  19. By: Desmarchelier, Benoît (Lille 1 University); Zhang, Linjia (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: Contributions in terms of clusters life cycle indicate that intense interactions between a variety of agents within the cluster are essential to its success. Despite being accepted by the literature, this view has not yet been confirmed by analyses of large temporal networks of interactions within industrial clusters. This paper proposes to fill this gap by building and studying the innovation networks of three clusters over a 10 years period. We find that clusters’ growth is all but smooth and that low assortativity and preferential attachment among agents can constitute safeguards against clusters decline. Also, we bring evidence that clusters’ innovation networks are resilient to decline. This observation supports contributions advocating for non-deterministic lifecycles in which clusters can still grow, even after a period of pronounced decline.
    Keywords: Industrial Clusters, Network Science, Dynamics
    Date: 2018–04–01
  20. By: Carlo Lavalle (European Commission - JRC); Nicola Pontarollo (European Commission - JRC); Filipe Batista e Silva (European Commission - JRC); Claudia Baranzelli (European Commission - JRC); Chris Jacobs-Crisioni (European Commission - JRC); Boyan Kavalov (European Commission - JRC); Mert Kompil (European Commission - JRC); Carolina Perpiña Castillo (European Commission - JRC); Pilar Vizcaino Martinez (European Commission - JRC); Ricardo Ribeiro Barranco (European Commission - JRC); Ine Vandecasteele (European Commission - JRC); Vasco Pinto Nunes Nogueira Diogo (European Commission - JRC); Jean-Philippe Aurambout (European Commission - JRC); Carolina Serpieri (European Commission - JRC); Mario Alberto Marin Herrera (European Commission - JRC); Konstantin Rosina (European Commission - JRC); Silvia Ronchi (European Commission - JRC); Davide Auteri (European Commission - JRC)
    Abstract: This report analyses a set of European territorial trends at continental and sub-national scale, looking at patterns and determinants of regional growth, while considering pan-European and national characteristics. Past and prospective demographic and economic trends are analysed to provide a picture of ‘what, where and when’ things happen in European cities and regions. Specific emphasis is placed on urban areas since they are acknowledged sources of both opportunities and challenges. The indicators used in the analysis herein presented are freely and openly accessible in the Territorial Dashboard at: policies/t-board
    Keywords: territorial developments, territorial indicators, cohesion, territorial impact assessment, convergence, competitiveness
    Date: 2017–12
  21. By: Fahim Akhter (King Saud University)
    Abstract: The objective of this study is to explore the level of reliance of business processes on technologies for growth and sustainability of Saudi entrepreneurship. The technological business environment has pressed the entrepreneurs to adopt the information systems to overcome operating deficiencies, including high costs, small production cycles, dormant business process and scare financial resources. The future growth and sustainability of the Saudi entrepreneurship are depending on the adoption and integration of information systems allowing to facilitate the trade processes across functional units, use of a standatized database and information sahring. Obtained data support the technological reform that claims that business technology will enable the decision-making process to be timely, consistent and reliable across organizational units and geographical locations. The data collected through online surveys with thirty-one Saudi entrepreneurs revealed the barriers faced by the entrepreneurship, and allowed to summarize provided recommendations. The analysis indicated that the growth and sustainability of the enterprise are subject to adoption of technology oriented business process lead by information systems in the organizations. The outcome of the study is further recommendation to educate and spread the awareness about the implementation of information systems to address the electronic business process. The study will help to organize, assess and improve business processes in order to meet the new requirements set by competition among entrepreneurial companies.
    Keywords: electronic commerce,information systems,sustainability,entrepreneurship
    Date: 2017–09–29
  22. By: Alana McKenzie; Raluca Nica (Department of International Economics and Business, Bucharest University of Economic Studies); Andra Roman (Department of International Economics and Business, Bucharest University of Economic Studies); Corina Ioana Petrea (Department of International Economics and Business, Bucharest University of Economic Studies)
    Abstract: The paper analyzes the development of the Washington cluster in the aeronautics industry and the factors that contributed to this continuous and substantial growth. In the first section of the text it is described the profile of the country as well as the region and the city, in order to understand the exogenous factors that made possible the enrichment of the aerospace cluster in that particular area. Moving further with the analysis, the paper identifies the main competition from rival clusters, emphasizing the strengths of each rival cluster in comparison with the aeronautics cluster from Washington. A cluster map is provided later in the study, for explaining the intertwined relation between many supporting industries that help sustain the aerospace cluster. Additionally, the text explores the performance of the cluster and the overall competitiveness in the business environment. In the end, the paper seeks to answer the question: What are the key issues that the cluster is facing?
    Keywords: cluster, aerospace industry, Washington, competitiveness
    JEL: L93
    Date: 2017–09
  23. By: Vincent Van Roy (European Commission - JRC); Daniel Nepelski (European Commission - JRC)
    Abstract: In this report we provide an assessment of the statistical methodology behind the Innovation Radar. In particular we analyse to what extent the Innovation potential index and the Innovator capacity index are analytically and statistically sound and transparent. The aim of this report is to evaluate to what extent variables that have been included in these composite indicators make sense from a statistical point of view. Overall, the Innovation potential index is found to be statistically sound with particularly room for improvement of the market potential dimension. The Innovator capacity index is conceptually sound but can be improved statistically.
    Keywords: Financial and economic analysis; Composite indicators; ICT R & D and Innovation; Industrial research and innovation; Research and innovation policies; Digital Economy
    Date: 2018–03
  24. By: Koster, Mieneke (Tilburg University, School of Economics and Management); Vos, Bart (Tilburg University, School of Economics and Management); Schroeder, Roger (Tilburg University, School of Economics and Management)
    Abstract: Although research in the area of sustainable supply management (SSM) has evolved over the past few decades, knowledge about the processes of emergence and innovation of SSM practices within organizations is surprisingly limited. These innovation processes are, however, important because of the considerable impact they may have on resulting sustainable practices and because of SSM's complex societal and intra-firm challenges. In a process study on management innovation, the sequences of SSM innovation processes in two exemplar case companies are studied to address: ‘What are the sequences through which SSM emerges within exemplar organizations?’, and ‘In what way do management innovation processes influence resulting SSM practices?’. We build on literature regarding firstly management innovation and secondly communities and internal networks of practice. An SSM innovation model and propositions are developed, proposing how the process of management innovation affects SSM practices and firm performance in a broader perspective.
    Date: 2017
  25. By: Salvatore Monni (Roma Tre University); Francesco Palumbo (Roma Tre University); Manuela Tvaronavičienė (Vilnius Gediminas Technical University)
    Abstract: The article takes place in the research area of the ongoing European project 'Cluster Development Med' (Horizon 2020) regarding the innovation and technology in the sustainable development field. Authors suggest a model, which allows to identify the most successful clusters and make comparisons between and within them. The analysis defines where they perform a positive or negative trend in the area examined. The model embraces three dimensions of cluster activity, so called, "Resources, Activities, Processes". They have been determined on the work of the Lithuanian association "Knowledge Economy Forum" , called "Cluster Analysis". Data for practical evaluation purposes were obtained through two stage process. First, an interview on site with the coordinators of the Lithuanian clusters for data collection was done through a questionnaire survey, developed in collaboration with the Science and Innovation Agency of the Lithuanian Government. Secondly, the data have been aggregated by applying one of multi-criteria methods, specifically, Simple Additive Weighting method. Finally, the multi-criteria analysis results were used to estimate the efficiency of the clusters. The results were compared through suggested benchmarking. Suggested model can be used for evaluation of performance of different clusters.
    Keywords: Lithuania,performance measurement,cluster,firm performance,cluster performance
    Date: 2017–09–29

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