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on Small Business Management |
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Issue of 2018‒11‒12
nineteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Tanel Rebane |
| Abstract: | This paper examines the complementary relationship between product innovation, marketing innovation and cooperation with clients, based on data from Estonian firms. The author evaluated complementary relationship in terms of its effect on the firm’s total factor productivity. This study uses the Community Innovation Survey (CIS) and Estonian Business Register data from the years 2002–2012 and the Heckman selection model to research the complementarity effect between studied innovation activities using the supermodularity approach. The results show that product innovation and marketing innovation are complementary in the service industry, but in manufacturing industry there is lack of evidence for the effect of complementarity. Cooperation with clients showed inconclusive complementarity test results involving both innovation types in both industries. Using panel data as a robustness test showed more insights into the complementary effects between cooperation with clients and the studied forms of innovation. However, the results show a weak complementarity effect between cooperation and innovation and suggest that there is still no clear complementarity effect. |
| Keywords: | Product innovation, Marketing innovation, Cooperation with clients, Complementarity, Performance |
| JEL: | C13 D24 L25 O30 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:mtk:febawb:113&r=sbm |
| By: | Nascia, Leopoldo; Pianta, Mario |
| Abstract: | Italy’s research and innovation are examined in this article moving from the structure of the country’s economy and innovation system, examining the dynamics of private and public activities and the impact of policies. As a result of the long recession started in 2008, industrial production and investment experienced dramatic reductions, weakening business performances in R&D and innovation; policies have relied on ‘horizontal’ tax incentives for R&D, patenting and new machinery, with limited effects. Austerity-driven reduction of public expenditure has led to major cuts in public R&D and university budgets, combined with new rules for evaluation and merit-based financing. As a result, gaps between Italy’s research and innovation and EU average performances have increased. Four key policy questions are identified: the possibility for Italians firms to grow with modest technological activities; the longer term impact of underfunding the public R&D and university system; the consequences of a low presence of university graduates in the labour force; the sustainability of the increasing regional divergence within Italy’s research and innovation system. |
| Keywords: | R&D, innovation, technology policy, Italy |
| JEL: | O31 O33 O52 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89510&r=sbm |
| By: | Chun-Yao Tseng (Tunghai University) |
| Abstract: | This study focuses on collaborative innovation in China ICT(Information and Communications Technology) industry. Although prior findings point out that collaborative innovations do facilitate innovation performance, there are some unresolved problems and one of which is the problem of ?collaborating with whom?. Is there the effect of cultural similarity in collaborative innovation. This paper aims to contribute to the literature of collaborative innovation by investigating into the effects of collaborative partners on innovation performance from the perspective of cultural similarity. Based on the analysis of patent and citation from the U.S. Patents and Trademark Office (USPTO) from 1985 to 2010, empirical results are shown the performance of collaborative innovation between China and foreign is significantly greater than that of domestic collaborative innovation in China. The performance of collaborative innovation between China and culturally similar country is significantly better than that between China assignees and culturally different country. |
| Keywords: | Collaborative Innovation; Cultural Similarity; External Partners; Innovation across Cultures. |
| JEL: | O30 O32 M14 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6509247&r=sbm |
| By: | Madaleno, Margarida (London School of Economics); Nathan, Max (University of Birmingham); Overman, Henry (London School of Economics); Waights, Sevrin (DIW Berlin) |
| Abstract: | A growing wave of co-location programmes promises to boost growth for entrepreneurs and young firms. Despite great public and policy interest we have little idea whether such programmes are effective. This paper categorises accelerators and incubators within a larger family of co-location interventions. We then develop a single framework to theorise workspace-level impacts. We summarise available evaluation evidence and sketch implications for regional economic policy. We find clear evidence programmes are effective overall. But we know little about how effects operate – or who benefits. Providers and policymakers should experiment further to establish optimal designs. |
| Keywords: | entrepreneurship, incubators, accelerators, clusters, cities, economic development |
| JEL: | L26 O32 R30 R58 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11856&r=sbm |
| By: | Keuschnigg, Christian; Kogler, Michael |
| Abstract: | Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks play a major role in cutting credit to non-viable firms in downsizing sectors and provide new credit to finance investment in expanding, innovative sectors. Structural parameters of a country’s banking system thus influence comparative advantage and trade patterns. The analysis points to the importance of insolvency laws, minimum capital standards, and cost of bank equity to determine credit reallocation, sectoral expansion and trade patterns. |
| Keywords: | Capital reallocation,banking,trade,comparative advantage |
| JEL: | F10 G21 G28 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181571&r=sbm |
| By: | Morales, Rosa; Radoniqi, Fatos |
| Abstract: | his paper investigates the relationship between various measures of intangible capital and the market valuation of young biopharmaceutical firms. We employ a non-linear model to measure the impact of R&D, patents, alliances, organizational capital, and mergers on the value of 349 newly-incorporated firms between 1980 and 2006. We find that, with the exception of mergers, our measures of intangible capital havepositive and significant effects on market values; the impact of R&D declines as firms mature; and the omission of either alliances or organizational capital leads to a significant overstatement of the influence of R&D. |
| Keywords: | Innovation, R&D, Intangible Assets, Market Valuation, Biopharmaceuticals |
| JEL: | E22 G32 L65 O32 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88580&r=sbm |
| By: | Yujin Kim; Chirantan Chatterjee; Matthew J. Higgins |
| Abstract: | Venture capitalists (VCs) traditionally invest in risky, early-stage innovations. Recent research suggests, however, that VCs may be herding into less risky, later-stage projects. Such a shift can create funding gaps for early-stage firms. Can regulation reverse this trend by providing information that may reduce the risk of early-stage investments? Using the regulatory setting of the European Union and the passage of the Orphan Drug Act (EU-ODA), we examine this question in the biopharmaceutical industry. We provide causal evidence that VCs are more likely to invest in early-stage biopharmaceutical firms operating in sub-fields disproportionately affected by EU-ODA. We also find that the level of syndication declined for early-stage investments and exit performance improved. Importantly, the shift towards early-stage investment did not lead to any higher proportion of bankruptcies. Collectively, our results suggest that the information provided by EU-ODA helped alleviate information asymmetries faced by VCs investing in early-stage biopharmaceutical firms. We conclude by discussing implications for entrepreneurial finance and innovation policy. |
| JEL: | G24 L51 L65 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25202&r=sbm |
| By: | Boddin, Dominik |
| Abstract: | By crawling online data, I create a new long-term patenting panel dataset for Germany to identify the causal effect of trade integration with Eastern Europe and China on patenting in the period 1993-2012. I exploit the cross-regional variation in the German industry structure and use trade flows to other advanced economies as instruments for regional import and export exposure. I find that an increase in the net trade exposure (defined as import- minus export exposure) causes an increase in regional patenting. This effect is purely driven by a positive link between import exposure and innovation, whereas export exposure does not influence innovation. Interestingly, the effects are heterogeneous across exposure origin. The positive link between import exposure and innovation is fully explained by trade integration with Eastern Europe. Increasing integration with China has no effects on innovation. |
| JEL: | F14 O30 R11 R12 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181640&r=sbm |
| By: | Iwasaki, Ichiro; Mizobata, Satoshi |
| Abstract: | This paper aims to perform a large-scale meta-analysis to examine the relationship between ownership concentration and firm performance in emerging economies of Central and Eastern Europe and the former Soviet Union. A meta-synthesis of 1517 estimates collected from 69 previous studies indicated the presence of a statistically significant and positive effect of ownership concentration on firm performance. The synthesized effect size, however, is only modest at best. A meta-regression analysis conducted to identify the factors underlying the small effect size revealed that differences in target industries, estimation periods, design of ownership variables, data sources, estimators, and choices of control variables could have had systematic and profound effects on the empirical results presented in previous studies. We have also noted that publication selection bias is strongly suspected in this research field, and that, due to the magnitude of this bias, existing studies cannot be expected to provide genuine evidence regarding the effect of ownership concentration on firm performance in European emerging economies. Further empirical studies are required to identify the true effect in this region. |
| Keywords: | ownership concentration, enterprise restructuring, firm performance, European emerging economies, meta-analysis, publication selection bias |
| JEL: | D22 G32 G34 L25 P21 P31 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2018-8&r=sbm |
| By: | Adam Dewitte (IAE Lille - Institut d'Administration des Entreprises - Lille - Université de Lille, Sciences et Technologies) |
| Abstract: | The concept of business model innovation has lead to numerous research in strategy. However, little attention has been given on topics related to entry strategies. Consequently, this theoretical paper aims to link two research streams, i.e. the literature on business model and that of entry strategy, to provide insightful knowledge for both fields. In particular we try to better understand the role of business model innovation on entry barrier' effectiveness. Using previous theoretical works and empirical examples, we first discuss the ability of an innovative business model (1) to lower entry barriers and (2) to provide first mover advantages for a new entrant. These advantages may lead to new entry or mobility barriers development. We finally identify four research propositions to guide future empirical research. |
| Keywords: | Mots-clés : Business Model,Business Model Innovation,Entry Strategy,Entry Barriers,Strategic Management |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01896940&r=sbm |
| By: | Christopher F. Baum (Boston College; DIW Berlin; CESIS, KTH Royal Institute of Technology); Hans Lööf (CESIS, KTH Royal Institute of Technology); Andreas Stephan (Jönköping International Business School; DIW Berlin) |
| Abstract: | STEM-focused industries are critical to the innovation-driven economy. As many firms are running short of STEM workers, international immigrants are increasingly recognized as a potential for high-tech job recruitment. This paper studies STEM occupations in Sweden 2011–2015 and tests hypotheses on new recruitment and the economic impact of foreign STEM workers. The empirical analysis shows that the probability that a new employee is a STEM immigrant increases with the share of STEM immigrants already employed, while the marginal effect on average firm wages is positively associated with the share of immigrant STEM workers. We also document heterogeneity in the results, suggesting that European migrants are more attractive for new recruitment, but non-EU migrants have the largest impact on wage determination. |
| Keywords: | STEM; migration; employment; wages; correlated random effects |
| JEL: | C23 J24 J61 O14 O15 |
| Date: | 2018–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:962&r=sbm |
| By: | Iñiguez, David; Ortega, Raquel; Rivero, Alejandro; Velilla, Jorge |
| Abstract: | The objective of the work is to know the behavior of new Spanish companies in social networks and the use they make of them, trying to establish relationships between the type of company and its behavior in the digital world. We obtain information on the almost 30,000 companies constituted between October 1, 2016 and September 30, 2017 from the Official Bulletin of the Mercantile Registry (BORME), using the classification of economic activities CNAE when defining the type of company. The newly created companies show interest in visualizing themselves in social networks, 36% in Facebook, 23% in LinkedIn and 15% in Twitter, detecting also activity in Instagram and YouTube for some particular niches, being the commercial activity (Group C of CNAE) the predominant in the presence of new Spanish companies in social networks. |
| Keywords: | Entrepreneurship, New Companies, Social Networks, Spain, Facebook, LinkedIn, Twitter |
| JEL: | L26 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89652&r=sbm |
| By: | Shanti (Widya Mandala Catholic University, Dinoyo Street, 42-44, 60265, Surabaya, Indonesia Author-2-Name: Bambang Tjahjadi Author-2-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-3-Name: I Made Narsa Author-3-Workplace-Name: Airlangga University, Airlangga Street 4-6, 60286, Surabaya, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - The implementation of integrated reporting (IR), which is a composite of financial and non-financial information, in one single report makes financial reporting more comprehensive and more transparent. Transparent information in IR gives annual reporting of family firms a higher earnings quality. Methodology/Technique - This research aims to examine the effect of IR on earnings quality of family firms in the mining industry on the Indonesian Stock Exchange between 2014 and 2017. Findings - The results of this study indicate that there is a positive and significant relationship between integrating reporting and earnings quality. These results confirm that firms that use integrated reporting tend to show higher earnings quality. The study also finds that larger sized companies and larger leverage amounts equals a higher volume of information disclosed. Novelty – The motivation of this research is to examine IR issues that are relatively new. |
| Keywords: | Earnings Quality; Family Firms; Financial Reporting; Indonesia; Integrated Reporting. |
| JEL: | M40 M41 M49 |
| Date: | 2018–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr144&r=sbm |
| By: | Kantis, Hugo |
| Abstract: | This document provides relevant findings of the emergence of some ecosystems. Firstly, it looks into a long-term trajectory of two advanced ecosystems such as Silicon Valley (USA) and Tel Aviv/ Israel in an attempt to grasp their dynamics and evolution. Secondly, it analyzes the similarities and differences between two Latin American cases –the cities of Buenos Aires (Argentina) and Santiago (Chile). Thirdly, it attempts to compare the cases presented, understand their roots from an evolutionary perspective and explore some implications for Latin-American countries. The cases were selected considering their salient features as both Silicon Valley and Tel-Aviv/ Israel are state-of-the-art ecosystems with interesting differences in their evolutionary process, and their development can contribute to the analysis of Latin-American cases. The cities of Buenos Aires and Santiago were ranked positively in the Runner Up category of Global Start-Up Ecosystem Report. |
| Keywords: | Ecosystems, evolución, latín Latin America, Silicon Valley, israel |
| JEL: | L1 L26 O3 O38 |
| Date: | 2018–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88453&r=sbm |
| By: | Jean-Etienne de Bettignies; Bulat Gainullin; Hua Fang Liu; David T. Robinson |
| Abstract: | We study how competition between two downstream firms affects an upstream innovator's innovation strategy, which includes selecting how much innovation to produce and whether to license this innovation to one (targeted licensing) or both (market-wide licensing) downstream competitors. Our model points to a U-shaped relationship between downstream competition and upstream innovation: at low levels of competition, market-wide licensing is optimal and competition reduces innovation, while at high levels of competition targeted licensing is optimal and competition increases innovation. Empirical analysis using a large panel of US data provides clear support for these predictions linking competition, innovation and licensing. |
| JEL: | L22 L24 O31 O32 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25166&r=sbm |
| By: | Ma, Qing; Xu, Heng |
| Abstract: | This paper investigates the firms’ incentive of using corporate socially responsible (CSR) innovation as a device in the presence of spillover effect of such innovation. By modelling a two-period environment where a fraction of consumers is altruistic who have higher willingness to pay for the CSR product, we particularly study the firms’ decision on CSR innovation with respect to the spillover effect and the fraction of the altruistic consumers. We find that a large (small) fraction of the altruistic consumers attracts (restricts) both firms to innovate. Moreover, if the leader has only one chance to innovate (i.e., makes decision on innovation in the first period onely), a relatively large fraction could be a credible threat from the follower to the leader of innovation. Furthermore, in the situation where the leader has option of innovating in both periods, there exists a “patient area” in which the leader wishes to delay its innovation and do it with its rival in the second period. By doing so, the leader can weaken the rival’s benefit from being a follower of innovation. |
| Keywords: | Corporate social responsibility, Innovation, Spillover, Altruism |
| JEL: | L13 L21 M14 O31 |
| Date: | 2018–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89771&r=sbm |
| By: | Chenxu Fu (CEMFI); Enrique Moral-Benito (Banco de España) |
| Abstract: | Total factor productivity (TFP) is considered the key determinant of long-term and sustainable economic growth. The dismal evolution of TFP characterized the Spanish economy since the foundation of the Eurozone until the outbreak of the Global Financial Crisis [see García- Santana et al. (2016)]. This article provides an anatomy of the recent evolution of Spanish TFP using both aggregate- and micro-level data available until 2016. Three conclusions emerge from our findings: i) while TFP growth remained subdued during the crisis, a TFP revival is taking place over the last years; ii) this pattern is mostly driven by the rise and fall of the capital-to-labor ratio (capital deepening) while the role of labor productivity is more muted, and iii) an across-the-board increase in firms’ capital-to-labor ratios accounts for most of the TFP decline during the first years of the crisis, while the subsequent TFP revival is explained by the reallocation of resources towards firms with low capital deepening. |
| Keywords: | Spain, firm level data, TFP, misallocation. |
| JEL: | D24 O11 O47 E44 G21 L25 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:1808&r=sbm |
| By: | Camacho, Micaela |
| Keywords: | PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, TAMAÑO DE LA EMPRESA, CONDICIONES ECONOMICAS, DESARROLLO DE EMPRESAS, POLITICA DE DESARROLLO, INSTITUCIONES PUBLICAS, SMALL ENTERPRISES, MEDIUM ENTERPRISES, SIZE OF ENTERPRISE, ECONOMIC CONDITIONS, ENTERPRISE DEVELOPMENT, DEVELOPMENT POLICY, PUBLIC INSTITUTIONS |
| Date: | 2018–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:44179&r=sbm |
| By: | Christopher F. Baum (Boston College); Joanne M. Doyle (Boston College) |
| Keywords: | Creation Date: |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:152&r=sbm |