nep-sbm New Economics Papers
on Small Business Management
Issue of 2019‒07‒29
eight papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. What explains India’s poor performance in garments exports: evidence from five clusters? By Ray, Saon
  2. Does Electrification Cause Industrial Development? Grid Expansion and Firm Turnover in Indonesia By Dana Kassem
  3. Innovation and Economic Growth: Does Internet Matter? By Bakari, Sayef
  4. Measuring Success: Clio and the Value of Database Creation. By Claude DIEBOLT; Michael J. HAUPERT
  5. How Types of Destination Influence Tourism Innovation Networks? By Véronique Favre-Bonté; Elodie Gardet; Catherine Thevenard-Puthod
  6. Do political connections matter for firm innovation? Evidence from emerging markets in Central Asia and Eastern Europe By Krammer, Sorin; Jimenez, Alfredo
  7. Every Cloud has a Silver Lining: Cleansing Effects of the Portuguese Financial Crisis By Daniel A. Dias; Carlos Robalo Marques; Carlos Robalo Marques
  8. Local entrepreneurship ecosystems and emerging industries: Case study of Pomorskie, Poland By OECD

  1. By: Ray, Saon
    Abstract: In this paper, we examine the Indian apparel industry to examine the effect of clusters on the sales of this industry. The data has been collected through a primary survey in five garments clusters in India. The variable that is significant in explaining sales in most equations is technology proxied by imported machinery. It has been argued that inter-firm linkages and linkages between firms, service providers and institutions are crucial for competitiveness and this is best achieved through a cluster. Studies on clusters have shown that some clusters have been able to deepen their inter-firm division of labour, raise their competitiveness and break into international markets. Agglomeration may arise from the specialization of a region in a particular industry where firms share common inputs or knowledge. We argue that the main reason for India’s poor performance in garments (compared to other South Asian countries such as Bangladesh) is the lack of proper clusters. The development of the cluster in India has followed the ‘top down’ approach and the natural process through which linkages are developed are yet to occur in most clusters.
    Keywords: Competitiveness, garment, cluster, South Asia
    JEL: F14 L2 L23 L67
    Date: 2019–05
  2. By: Dana Kassem
    Abstract: I ask whether electrification causes industrial development. I combine newly digitized data from the Indonesian state electricity company with rich manufacturing census data. To understand when and how electrification can cause industrial development, I shed light on an important economic mechanism - firm turnover. In particular, I study the effect of the extensive margin of electrification (grid expansion) on the extensive margin of industrial development (firm entry and exit). To deal with endogenous grid placement, I build a hypothetical electric transmission grid based on colonial incumbent infrastructure and geographic cost factors. I find that electrification causes industrial development, represented by an increase in the number of manufacturing firms, manufacturing workers, and manufacturing output. Electrification increases firm entry rates, but also exit rates. Empirical tests show that electrification creates new industrial activity, as opposed to only reorganizing industrial activity across space. Higher turnover rates lead to higher average productivity and induce reallocation towards more productive firms in electrified areas. This is consistent with electrification lowering entry costs, increasing competition and forcing unproductive firms to exit more often. Without the possibility of entry or competitive effects of entry, the effects of electrification are likely to be smaller.
    JEL: D24 L60 O13 O14 Q41
    Date: 2018–11
  3. By: Bakari, Sayef
    Abstract: We analyze the relationship between economic growth and innovation taking into consideration the importance of the internet. To do so, we use a panel ARDL model, with data on a sample of 76 developed and developing countries in different geographic regions for the 1995–2016 period. Our findings provide empirical evidence of the positive role of innovation and internet in economic growth and the positive role of economic growth and internet in innovation. From these results, we derive several basic policy conclusions.
    Keywords: Innovation, Economic Growth, Internet
    JEL: O31 O32 O38 O47 O50
    Date: 2019–06
  4. By: Claude DIEBOLT; Michael J. HAUPERT
    Abstract: In a recent article Stefano Fenoaltea (2018) bemoaned the loss of respect and focus on the importance of creating databases, or “measurement” as he referred to it. Cliometrics has made and continues to make valuable contributions not just to the field of economic history, but economics in general. In particular, we focus on the contribution of cliometrics to the creation of datasets. We highlight several important cases in both the past and present, of recognized important contributions of new datasets to the economics discipline. We argue that Clio has continually focused on, and valued, the creation of new data sets and the clever and novel ways they have been exploited to further the frontiers of knowledge, and that these efforts are both appreciated and recognized.
    Keywords: Cliometrics, Databases, Economic history, Measurement.
    JEL: A10 A12 B41 C81 C82 N00 N01
    Date: 2019
  5. By: Véronique Favre-Bonté (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); Catherine Thevenard-Puthod (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: This paper examines the influence of the type of geographical location on the characteristics of innovation networks in the tourism industry, specifically in mountain resorts. It compares the innovation network forms of two types of mountain resorts (high-altitude and medium-altitude resorts) regarding four characteristics: the nature of the relationships between members, the mode of regulation used, the architecture, and the geographical scope. Our results show that according to the type of territory, innovation networks differ in type of partners, geographical scope, and regulation mode. However, the type of territory does not seem to influence the architecture of the network since all the networks studied have a hub organization that orchestrates the partners' actions.
    Keywords: Innovation,Mountain Resorts,Tourism,Networks,Geographical Location
    Date: 2019
  6. By: Krammer, Sorin; Jimenez, Alfredo
    Abstract: We posit that the investments in political connections made by a firm in an emerging market will impact differently its propensity to introduce radical and incremental innovations. In addition, we argue that this effect will be moderated by alternate non-market firm strategies, such as bribery. Using a dataset of more than 9,000 firms in 30 emerging economies from Eastern Europe and Central Asia we find that political connections increase the probability of radical innovation but have no significant impact on incremental innovation. Moreover, larger bribing reduces the positive impact of political connections on radical innovation. Our results confirm the importance of political connections for firm activities, but also caution firms on their heterogeneous impact on various types of innovations, and their detrimental interplay with other non-market strategies.
    Keywords: Radical innovation; Incremental innovation; Political connections; Bribery; Non-market strategy.
    JEL: D72 L2 O31
    Date: 2019–06–27
  7. By: Daniel A. Dias; Carlos Robalo Marques; Carlos Robalo Marques
    Keywords: Productivity, firm-level data, entry, exit, survival
    JEL: D24 E32 L25 O47
    Date: 2019–06–05
  8. By: OECD
    Abstract: This case study examines the Pomorskie local entrepreneurship ecosystem and regional smart specialisation approach. It identifies bottlenecks and enablers in the local entrepreneurship ecosystem and makes policy recommendations on how to further strengthen local entrepreneurship and industrial renewal. The case study offers a number of policy suggestions and models for Pomorskie and for other regions interested in promoting entrepreneurship and emerging industries.
    Date: 2019–07–24

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