nep-sbm New Economics Papers
on Small Business Management
Issue of 2019‒06‒10
sixteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The innovative performance of firms in heterogeneous environments : the interplay between external knowledge and internal absorptive capacities By Crescenzi, Riccardo; Gagliardi, Luisa
  2. Academic inventors: collaboration and proximity with industry By Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
  3. Going Green: Environmental Regulation, eco-innovation and technological alliances By F. Fusillo; F. Quatraro; S. Usai
  4. Ownership identity, strategy and performance: business group affiliates versus independent firms in India By Bhaumik, Sumon Kumar; Estrin, Saul; Mickiewicz, Tomasz
  5. OK Computer: The Creation and Integration of AI in Europe By Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler; Ryan M. Hynes
  6. Firm soundness and knowledge externalities: a comparative regional analysis By Giuseppe Arcuri; Nadine Levratto; Aziza Garsaa; Lara Abdel Fattah
  7. The impacts of environmental regulations on competitiveness By Dechezlepretre, Antoine; Sato, Misato
  8. Cross-border knowledge flows through R&D FDI: Implications for low- and middle-income countries By Amendolagine, Vito; Chaminade, Cristina; Guimón, José; Rabellotti, Roberta
  9. The relationship between government and business in the context of the formation of innovation clusters and ecosystems in Russia By Maracha, Vyacheslav (Марача, Вячеслав)
  10. Migrants and Firms: Evidence from China By Clement Imbert; Marlon Seror; Yifan Zhang; Stephan Yanos Zylberberg
  11. Why do we need self-employed persons? Some economic reflections, mainly tax related ones By Adam Adamczyk; Leszek Morawski; Jarek Neneman
  12. Immigrants and Exports: Firm-level Evidence from Canada By Ananth Ramanarayanan
  13. Types of Institutions and Well-Being of Self-Employed and Paid Employees in Europe By Fritsch, Michael; Sorgner, Alina; Wyrwich, Michael
  14. Small and medium-sized Russian enterprises: features of the formation of the management system (organizational design) By Borisova, Larisa (Борисова, Лариса)
  15. Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction By Giovanni Dosi; Mariacristina Piva; Maria Enrica Virgillito; Marco Vivarelli
  16. Do firms exchange knowledge through complementary or substitutive routes of diffusion? By Amir Maghssudipour; Luciana Lazzeretti; Francesco Capone

  1. By: Crescenzi, Riccardo; Gagliardi, Luisa
    Abstract: This paper investigates the link between firm-level innovative performance and innovation prone external environments where knowledgeable individuals tend to cluster. Organizational ambidexterity and absorptive capacities (potential and realized) make it possible for firms to leverage the availability of external knowledge and boost their innovation performance. The empirical analysis focuses on England and is based on a novel combination of Community Innovation Survey (CIS) firm-level data and patent data. The results show that only firms complementing potential and realized absorptive capacities are able to take advantage of favorable external environments by actively combining internal and external sources of knowledge.
    Keywords: Innovation; Geography of innovation; Absorptive capacities; Exploration and exploitation
    JEL: J1
    Date: 2018–05–01
  2. By: Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
    Abstract: This paper addresses a number of fundamental research questions on university-industry (U-I) collaborations. Are U-I collaborations intrinsically different from other forms of collaboration, such as inter-firm or inter-university collaborations? Are they more difficult to form? Is their output qualitatively different? What factors facilitate their development? By looking at the collaborative behavior of all Italian inventors over the 1978-2007 period, the empirical analysis shows that U-I collaborations are less likely to happen when compared to other types of collaboration, and suggests that they tend to generate patents of more general applicability in subsequent inventions. As emphasized by the literature, geographical proximity plays an important role in facilitating all forms of collaboration. At the same time, it works as a possible substitute for institutional proximity, facilitating U-I collaborations. However, the involvement of ‘star inventors’ on both sides of the collaboration can play an equally important role in ‘bridging’ universities and industry.
    Keywords: university-industry collaboration; institutional and geographical proximity; innovation; regions.; Intra-European Fellowship
    JEL: O31 O32 O33 R10
    Date: 2017–08–01
  3. By: F. Fusillo; F. Quatraro; S. Usai
    Abstract: The literature on the determinants of green technologies (GTs) has already identified regulation as a key driver of environmental innovations. However, relatively little is known on how the regulatory framework affect the knowledge generation process. This paper contributes this literature by investigating the impact of collaboration networks and environmental regulation, and of their interaction, on the generation of green technologies. The empirical analysis is carried out on a newly constructed dataset of European firms over the period 2005-2012 and it is articulated in two steps. Firstly, we test the existence of a relationship between the environmental regulation, as measured by the OECD Environmental Policy Stringency index, and GTs, proxied by patent applications. We then employ a dynamic network analysis model to explore the dual role of GTs both as determinant of the collaboration network and as outcome of firm collaboration strategies. We find that, even though there exists a strong and positive relationship, the regulatory framework has not a direct effect on GTs but rather it stimulates firms to search for new qualified collaboration. Then, it is the nature and the structure of these collaborations that encourages firms to generate new green technological knowledge.
    Keywords: proximity;innovation networks;Green technologies;firms' strategies;environmental regulation;Dynamic Network Analysis
    Date: 2019
  4. By: Bhaumik, Sumon Kumar; Estrin, Saul; Mickiewicz, Tomasz
    Abstract: We consider whether the impact of entrepreneurial orientation on business performance is moderated by the company affiliation with business groups. Within business groups, we explore the trade-off between inter-firm insurance that enables risk-taking, and inefficient resource allocation. Risk-taking in group affiliated firms leads to higher performance, compared to independent firms, but the impact of proactivity is attenuated. Utilizing Indian data, we show that risk-taking may undermine rather than improve business performance, but this effect is not present in business groups. Proactivity enhances performance, but less so in business groups. Firms can also enhance performance by technological knowledge acquisition, but these effects are not significantly different for various ownership categories
    Keywords: emerging economies; business groups; entrepreneurial orientation; India
    JEL: J50 G32
    Date: 2017–06–01
  5. By: Bernardo S. Buarque; Ronald B. Davies; Dieter F. Kogler; Ryan M. Hynes
    Abstract: This paper investigates the creation and integration of Artificial Intelligence (AI) patents in Europe. We create a panel of AI patents over time, mapping them into regions at the NUTS2 level. We then proceed by examining how AI is integrated into the knowledge space of each region. In particular, we find that those regions where AI is most embedded into the innovation landscape are also those where the number of AI patents is largest. This suggests that to increase AI innovation it may be necessary to integrate it with industrial development, a feature central to many recent AI-promoting policies.
    Keywords: Artificial Intelligence; Geography of Innovation; Knowledge Space; Technological Change; Regional Studies
    JEL: O33 O31 R11
    Date: 2019–05
  6. By: Giuseppe Arcuri; Nadine Levratto; Aziza Garsaa; Lara Abdel Fattah
    Abstract: This paper investigates the role of regional context with regard to human capital and knowledge spillover effects in SMEs’ financial soundness. Our empirical setting is based on the multilevel analysis for panel data, which better allows for the treatment of hierarchical data. It is applied to firms belonging to the industrial sector and operating in four European countries over the 2010–2015 period. We find that a combination of individual- and regional-level characteristics explain firm soundness more accurately than individual features alone. Furthermore, we find that a higher local educational level and knowledge spillover improve the firm soundness.
    Keywords: Entreprise et territoire, capital humain, robustesse financière de l'entreprise, modèle multiniveau
    JEL: I25 L26 R11 C33
    Date: 2019
  7. By: Dechezlepretre, Antoine; Sato, Misato
    Abstract: This article reviews the empirical literature on the impacts of environmental regulations on firms’ competitiveness, as measured by trade, industry location, employment, productivity and innovation. The evidence shows that environmental regulations can lead to statistically significant adverse effects on trade, employment, plant location and productivity in the short run, in particular in a well-identified subset of pollution- and energy-intensive sectors, but that these impacts are small relative to general trends in production. At the same time, there is evidence that environmental regulations induce innovation in clean technologies, but the resulting benefits do not appear to be large enough to outweigh the costs of regulations for the regulated entities. As measures to address competitiveness impacts are increasingly incorporated into the design of environmental regulations, future research will be needed to assess the validity and effectiveness of such measures, and to ensure they are compatible with the environmental objectives of the policies.
    JEL: J1
    Date: 2017–07
  8. By: Amendolagine, Vito (Università di Pavia); Chaminade, Cristina (Lund University); Guimón, José (Autonomous University of Madrid); Rabellotti, Roberta (Università di Pavia)
    Abstract: R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low and middle income countries, building on a critical review of the existing literature and analyse the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low and middle income countries and their capacity to attract and anchor R&D related FDI for technological catch up. The paper finalizes outlining a future research agenda.
    Keywords: Foreign Direct Investment; Technology driven FDI; International technology transfer; South-South FDI; Developing countries; Less developed countries; Emerging Economies; Innovation policy
    JEL: O19 O24 O32 O57
    Date: 2019–06–07
  9. By: Maracha, Vyacheslav (Марача, Вячеслав) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Based on the formation of innovative clusters and ecosystems in Russia, the network organization and system principles for transforming the relationship between the state and innovative business are considered. The focus focuses on the formation of innovation clusters and ecosystems as collaborative communities, the transition to a “cluster management organization” as a new advanced form of organization of the innovation process, as well as government policy to support such a transition along with government and business relations in this context.
    Date: 2019–05
  10. By: Clement Imbert; Marlon Seror; Yifan Zhang; Stephan Yanos Zylberberg
    Abstract: This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low-productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.
    Keywords: China, productivity.
    Date: 2018–12–01
  11. By: Adam Adamczyk; Leszek Morawski; Jarek Neneman
    Abstract: For many years, we have been hearing about the need for innovation and entrepreneurship. Successive Polish government declare their support for entrepreneurs and expand the catalog of privileges, mainly related to taxes and mandatory contributions. Not infrequently, in these discussions the self-employed are equated with entrepreneurs. In this work, we will seek an answer to the questions: Who, then, are the self-employed? Are they really entrepreneurs? Should we support their activities? And finally the fundamental question: What does the economy get from the self-employed? In this work we point out that the differences in rates of self-employment between countries may result from differences in taxation on the labor provided by self-employed and salaried workers. In the main part of the work, taking advantage of the potential of the EUROMOD tax-benefit microsimulation model, we show that in Europe there is no single model of taxation of work conducted as one’s own business. In the majority of the tax-contribution systems we examined, the profitability of employment or self-employment changes along with changes in income. In light of the regressivity of the burdens on the self-employed, as a rule it begins to be profitable only above a certain income level. In the first part of the work we define the self-employed as those who run a business, and later we distinguish within this group entrepreneurs, meaning those who take on risk and create innovations. Discussing the advantages and disadvantages of self-employment from the point of view of the self-employed and the employer, we point out that the benefits – including systemic (tax and contribution) benefits, outweigh the disadvantages. We also discuss in more detail the imposition of income tax on the self-employed. In the second part we present changes in the value of self-employment over the last 25 years. Here we use data from the World Bank and certain data points from the European Union Statistics on Income and Living Conditions (EU-SILC). They allow us to observe how the relationship between the self-employed and the economy is changing: The significance of services provided for other businesses is growing. Additionally, we can see that the significance of self-employment is falling. In Poland the level of (non-agricultural) self-employment is low. The dynamics of the rate of self-employment indicate that the influence of legal regulations on the scale of self-employment is secondary. It seems that in this case, technological and demographic factors are much more significant.
    Keywords: self-employment, taxation, incentives, EUROMOD, EU-SILC
    JEL: J38 J08 H30 L53
    Date: 2019–05–08
  12. By: Ananth Ramanarayanan (University of Western Ontario)
    Abstract: We examine how immigrant employment enhances trade at the firm level using unique administrative matched employer-employee data from Canada. We augment a standard model of firms’ export market entry and sales decisions with trade costs that depend on destination-specific immigrant employment at the firm level. We estimate simple structural equations derived from the model that relate destination-specific exporting decisions to immigrant employment. We develop a method to deal with the potential endogeneity of immigrant employment that exploits the optimality conditions associated with the firm’s employment decision. We find positive and statistically significant effects of firm level immigrant employment on exporting. These effects vary with product type and immigrant employee characteristics in ways consistent with the idea that immigrant employees alleviate information barriers to trade.
    Date: 2019
  13. By: Fritsch, Michael (University of Jena); Sorgner, Alina (John Cabot University); Wyrwich, Michael (University of Jena)
    Abstract: This paper analyzes the role of different types of institutions, such as entrepreneurship-facilitating entry conditions, labor market regulations, quality of government, and perception of corruption for individual well-being among self-employed and paid employed individuals. Well-being is operationalized by job and life satisfaction of individuals in 32 European countries measured by data from EU Statistics on Income and Living Conditions (EU-SILC). We find that institutions never affected both occupational groups in opposite ways. Our findings indicate that labor market institutions do not play an important role well-being. The results suggest that fostering an entrepreneurial society in Europe is a welfare enhancing strategy that benefits both, the self-employed and paid employees.
    Keywords: entrepreneurship, institutions, well-being, life satisfaction, job satisfaction
    JEL: L26 I31 D01 D91 P51
    Date: 2019–05
  14. By: Borisova, Larisa (Борисова, Лариса) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The purpose of this study was to identify effective management systems for small and medium-sized Russian companies, taking into account the peculiarities of the Russian mentality. As a result of the analysis of data obtained in the course of questioning and interviewing managers of small and medium-sized enterprises, the dependence of the organizational design on the cultural parameters of the managers and teams was revealed. The most effective management systems for small and medium-sized businesses are identified, taking into account the phase of their life cycle, management style, and organizational culture. The results of a comparative analysis of organizational design of successfully operating small and medium-sized enterprises with nationally homogeneous and nationally diverse teams are presented.
    Date: 2019–05
  15. By: Giovanni Dosi; Mariacristina Piva; Maria Enrica Virgillito; Marco Vivarelli
    Abstract: This paper addresses, both theoretically and empirically, the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change operating into a vertically connected economy. Disembodied technological change turns out to positively affect employment dynamics in the üupstreamùù sectors, while expansionary investment does so in the üdownstreamùù industries. Conversely, the replacement of obsolete capital vintages tends to exert a negative impact on labour demand, although this effect turns out to be statistically less robust.
    Keywords: Innovation; disembodied and capital-embodied technological change; employment; job- creation; job-destruction; sectoral interdependencies.
    Date: 2019–05–29
  16. By: Amir Maghssudipour (Dipartimento di Scienze per l'Economia e l'Impresa); Luciana Lazzeretti (Dipartimento di Scienze per l'Economia e l'Impresa); Francesco Capone (Dipartimento di Scienze per l'Economia e l'Impresa)
    Abstract: The aim of the present research is to investigate the rise and the evolution of research on the ‘creative economy’, which focuses on the convergence of four research pillars: contributions on the creative class, creative industries, creative city and cultural industries. Publications on Creative Economy Research have been collected from the ISI Web of Science database, which includes all the academic works starting from the contribution of DCMS in 1998 till 2013. Through the analysis of nearly 1.000 publications produced in 16 years, the birth and evolution of creative economy research is investigated. Besides, the second part of the paper focuses on a relational analysis developed through the use of Social Network Analysis, investigating co-citations of disseminators and founders of creative economy research. Results underline that the Creative economy may be considered a successful multidisciplinary paradigm born and developed in English speaking, North American and European countries, which has contributed to the rise of a new economic sector: the cultural and creative industries.
    Keywords: multiple networks; knowledge diffusion; ERGM; industrial cluster; wine industry.
    JEL: D85 L14 L84
    Date: 2019

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