|
on Small Business Management |
|
Issue of 2019‒11‒25
fourteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Alhusen, Harm; Bennat, Tatjana |
| Abstract: | Innovation processes consist of interactive learning mechanisms that combine different knowledge sources. Using a set of 72 exploratory interviews with small- and medium-sized enterprises (SMEs) and regional innovation consultants, this paper analyzes the combination of STI (science-technology -innovation) and DUI (innovation based on learning-by-doing, -using and -interacting) modes of innovation. We show that SMEs integrate STI-based knowledge into DUI-routines through mechanisms with varying levels of complexity. The mechanisms we describe differ with respect to a) effects on innovativeness, b) the absorptive capacities required and c) incurred costs. Based on these mechanisms, d) cognitive, organizational and financial barriers to combinatorial innovation modes are derived. We find that e) regional innovation consultancies play an important role in fostering combinatorial innovation modes. We therefore explore the role of regional innovation policy and its effects on firms' combination of innovation modes. Our findings point out innovation drivers that facilitate SMEs' capacity to absorb STI-based knowledge. Based on our empirical findings, we derive implications for innovation policy with regards to absorptive capacities in SMEs. |
| Keywords: | Innovation modes,DUI,Regional Innovation System,R&D cooperation,Knowledge bases,Regional innovation policy |
| JEL: | D23 D83 L10 L22 O31 O33 O38 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:212019&r=all |
| By: | Hanna Hottenrott (aTUM School of Management, Technical University of Munich, Arcisstraße 21, 80333 Munich, Germany, bZEW – Leibniz Centre for European Economic Research, L7, 1, Mannheim, Germany.); Robert Richstein (cManchot Graduate School, Heinrich Heine University Düsseldorf, Universitätsstraße 1, 40225 Düsseldorf, Germany) |
| Abstract: | New knowledge-intensive firms contribute to innovation, competition, and employment growth, but externalities like knowledge spillovers can prevent entrepreneurs from appropriating the full returns from their investments. In addition, uncertainty and information asymmetry pose challenges for financing. Public policy programs therefore aim to support start-ups. This study evaluates the effects of participation in such programs on the performance of start-ups in high-tech and knowledge-intensive sectors that were founded in Germany between 2005 and 2012. Distinguishing between grants and subsidized loans and after matching recipients and non-recipients based on a broad set of founder and company characteristics, we find that both grants and subsidized loans facilitate tangible investment, employment and revenue growth. Grants are, however, better suited to increasing R&D investments than loans are. Combined with grants, subsidized loans facilitate turning research results into marketable products by means of investments in tangible assets. Start-ups that participate in both types of programs outperform grant-only recipients in terms of innovation performance, employment and future revenues. Finally, program participation does not crowd out private venture capital. |
| Keywords: | financing constraints, subsidies, R&D, high-tech start-ups, innovation policy |
| JEL: | G32 H25 O38 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2019-23&r=all |
| By: | Brixiová, Zuzana; Kangoye, Thierry |
| Abstract: | In the aftermath of the global financial crisis, policymakers have been increasingly striving to support female entrepreneurship as a possible growth driver. This paper contributes to reconciling mixed findings in the literature on the effectiveness of entrepreneurial training with an analysis that links training and human capital, including tertiary education and non-cognitive skills, with gender gaps in entrepreneurial performance in Africa. We have found that while financial literacy training directly benefits men, it does not raise the sales level of women entrepreneurs. Instead, tertiary education has a direct positive link with the performance of women. Consistent with our theoretical model where different skills are complements, tertiary education can act as a channel that makes training effective. Regarding non-cognitive skills, evidence shows that women entrepreneurs who are tenacious achieve stronger sales performance. Our results underscore the importance of incorporating tertiary education and entrepreneurial training programs focused on a balanced set of skills, including non-cognitive skills, among policies for women entrepreneurs. |
| Keywords: | Female entrepreneurship,training,non-cognitive skills,tertiary education |
| JEL: | L53 O12 J4 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:424&r=all |
| By: | Plechero, Monica (University of Florence); Mandar, Kulkarni (International Institute of Information Technology); Chaminade, Cristina (Lund University); Balaji, Parthasarathy (International Institute of Information Technology) |
| Abstract: | Economic geographers have recently made important contributions to the relationship between regional transformation, industrial specialisation and innovation networks in the emergence of new industries. However, most contemporary research has focused on the influence of networks on regional trajectories, paying lip service to how regional trajectories also influence network configurations. Furthermore, international comparative research on how specific regional innovation system (RIS) trajectories may shape innovation networks in new industrial sectors is underdeveloped. The paper investigates how the trajectories of Bangalore and Beijing RISs influence the objectives and geographical configuration of innovation networks in the new media industry. The coevolution of the different elements of the RIS trajectory points to the unfolding of politically and institutionally driven trajectory in Beijing and cognitively driven trajectory in Bangalore. These trajectories lead to specific barriers and opportunities for the development of innovation networks in new industries. |
| Keywords: | RIS trajectories; Innovation networks; New media industry; Beijing; Bangalore |
| JEL: | O19 O30 R50 |
| Date: | 2019–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2019_015&r=all |
| By: | Natália P. Monteiro (NIPE and Department of Economics, University of Minho); Odd Rune Straume (NIPE and Department of Economics, University of Minho); Marieta Valente (NIPE and Department of Economics, University of Minho) |
| Abstract: | Whether or not the use of remote work increases firm labour productivity is theoretically ambiguous. We use a rich and representative sample of Portuguese firms, and within-firm variation in the policy on remote work, over the period 2011-2016, to empirically assess the causal productivity effect of remote work. Our findings from estimations of models with firm fixed effects suggest that the average productivity effect of allowing remote work is significantly negative, though relatively small in magnitude. However, we also find a substantial degree of heterogeneity across different categories of firms. In particular, we find evidence of opposite effects of remote work for firms that do not undertake R&D activities and for firms that do, where remote work has a significantly negative (positive) effect on labour productivity for the former (latter) type of firms. Negative effects of remote work are also more likely for small firms that do not export and employ a workforce with a below-average skill level. |
| Keywords: | Remote work; firm labour productivity; panel data |
| JEL: | D24 L23 M54 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:14/2019&r=all |
| By: | Jihong Lee; Hyunkyeong Lim |
| Abstract: | Since the 1980s, the US has experienced a surge in patenting and R&D. To better understand the phenomena, we explore the evolution of the mar- ket value of knowledge capital with a novel firm-level dataset. While the importance of R&D has steadily declined, the market value of patents made a large and sustained gain in the new millennium. An additional patent per million dollars of R&D improves firm value by 11% in the latest decade compared to 3% three decades ago. The increased patent rents are driven largely by young firms, suggesting a positive role of the US patent system. |
| Keywords: | Innovation; ?rm value; patent; R&D |
| JEL: | O31 O34 O38 G30 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:snu:ioerwp:no105&r=all |
| By: | Sin Tian Ho, Cynthia (Department of Real Estate and Construction Management, Royal Institute of Technology); Wilhelmsson, Mats (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | Drawing on location theory, the local relationships between new firm formation and its determinants are explored in 290 municipalities across Sweden. From the robust geographically weighted regression (GWR) models, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. In contrast, mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. Spatially constrained multivariate clustering is also applied to group municipalities with similar conditions. Patterns in the industry composition and the location attributes are then analysed for each cluster. |
| Keywords: | GWR; new firm formation; entrepreneurship; Sweden |
| JEL: | C31 G21 M13 R50 |
| Date: | 2019–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2019_008&r=all |
| By: | Rand John; Tarp Finn; Trifkovi? Neda; Rodriguez Paula |
| Abstract: | This study investigates the role of owners’ personal preferences and behaviour in determining the success of micro, small and medium-sized enterprises using a lab-in-the-field experiment with small-business owners in Myanmar. The study is a complement to a 2017 quantitative survey conducted within the project ‘Towards inclusive development in Myanmar’.The lab-in-the-field experiment comprised five behavioural games: dictator, bargaining, trust, public goods, and risk-preference elicitation. It was conducted in 12 townships in 11 states and regions of Myanmar in September and October 2018. The sample comprised 397 enterprise owners, managers, and employees.This study has a twofold contribution. First, we present for the first time the behavioural profile of small-business owners in Myanmar. Second, we link the results of different behavioural games to the main participant and enterprise characteristics. Finally, we reflect on the implications for enterprise performance and for policy as it relates to micro, small and medium-sized enterprises. |
| Keywords: | Entrepreneurship,Altruism,Bargaining,Behaviour,Trust,Risk-taking |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2019-79&r=all |
| By: | Joern Block (Faculty of Management, Trier University / Erasmus School of Economics (ESE) and Erasmus Institute of Management (ERIM), Erasmus University Rotterdam); Christian Fisch (Faculty of Management, Trier University / Erasmus School of Economics (ESE) and Erasmus Institute of Management (ERIM), Erasmus University Rotterdam); Kenta Ikeuchi (Research Institute of Economy, and Trade and Industry (RIETI)); Masatoshi Kato (School of Economics, Kwansei Gakuin University) |
| Abstract: | Regional science has long been concerned with measuring the spatial distribution of innovation activity. While patents are frequently used as an indicator of regional innovation, we introduce trademarks as an additional indicator. Specifically, we explore the spatial distribution of trademark applications using a detailed and comprehensive dataset of 47 Japanese prefectures from 1999 to 2012. In addition to mapping differences in trademarks across regions, we identify correlates at the regional level that provide initial insights into potential determinants of regional innovation. For example, regional trademark activity is positively associated with regional entrepreneurship and with strong private service and finance sectors. Overall, our results reveal associations unique to trademarks that patent-based measures of innovation cannot uncover. With these results, we contribute to research in regional science and to the evolving literature on trademarks of this discipline. |
| Keywords: | Trademarks; regional innovation; Japan; prefectures; spatial distribution; patents. |
| JEL: | L80 O34 O53 R12 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:200&r=all |
| By: | Laura Corletto (Dipartimento di Management, Università Ca' Foscari Venezia); Matteo Grisbergh (Dipartimento di Management, Università Ca' Foscari Venezia) |
| Abstract: | Scopo di questa ricerca è indagare il concetto di accelerazione d’impresa e degli elementi che lo caratterizzano, analizzare le strategie di specializzazione intelligente nelle tre aree programma (Veneto, FVG e Slovenia) ed infine proporre un modello integrato di accelerazione d’impresa. L’attività ha generato notevoli benefici operativi, in quanto ha consentito di predisporre il program package, selezionare le startup e le pmi innovative beneficiarie del programma, individuare i mentori più appropriati per ciascuna di esse ed erogare servizi di supporto nelle varie fasi del progetto tramite i CAB Point costituiti. |
| Keywords: | accelerazione, transfrontaliera, startup, pmi innovative |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:notric:18&r=all |
| By: | Catia Batista; Julia Seither |
| Abstract: | This paper presents empirical evidence on the relationship between behavioral constraints and entrepreneurial success of micro-firms. Approximately 600 micro-entrepreneurs were randomized into treatments providing information about a role model, additionally the importance of establishing realistic goals, and how to maintain funds within their enterprises. Six months after implementation we find significant positive effects of shifts in aspirations on effort levels and savings. These effects can be precisely estimated even one year after implementation. On average, changes in investment behavior translate to increases in sales of 99% and 89% in profits compared to a control group. In contrast, human capital improvements have no effect on investment behavior. Furthermore, setting business goals mitigates the positive effects of role models on economic growth. Despite similar effects on effort levels, participants that condition their aspirations increase on a one-year goal save less and the positive effects on firm outcomes disappear over time. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unl:novafr:wp1906&r=all |
| By: | Guzman, Jorge; Oh, Jean Joohyun; Sen, Ananya |
| Abstract: | Entrepreneurial motivation is central for the process of economic growth. However, evidence on the motivations of innovative entrepreneurs, and how those motivations differ across fundamental characteristics, remains scant. We conduct three field experiments with the MIT Inclusive Innovation Challenge to study how innovative entrepreneurs respond to messages of money and social impact, and how this varies across gender and culture. We find consistent evidence that women and individuals located in more altruistic cultures are more motivated by social impact messages than money, while men and those in less altruistic cultures are more motivated by money than social impact. The estimates are not driven by differences in the type of company, its size, or other observable characteristics, but instead appear to come from differences in the underlying motivations of innovative entrepreneurs themselves. |
| Date: | 2019–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:t7crk&r=all |
| By: | Sin Tian Ho, Cynthia (Department of Real Estate and Construction Management, Royal Institute of Technology); Berggren, Björn (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates. |
| Keywords: | bank branches; entrepreneurship; financing; new firm formation; Sweden |
| JEL: | C31 R10 |
| Date: | 2019–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthrec:2019_007&r=all |
| By: | Kölling, Arnd; Schnabel, Claus |
| Abstract: | Using data from the representative IAB Establishment Panel in Germany and estimating a panel probit model with fixed effects, this paper finds a negative relationship between the existence of owner-management in an establishment and the probabilities of having a works council or a collective bargaining agreement. We show that family firms which are solely, partially or not managed by the owners significantly differ in the presence of works councils and collective bargaining agreements. The probabilities of having works councils and collective agreements increase substantially if just some of the managers do not belong to the owner family. We argue that these differences cannot simply be attributed to an aversion of the owners against co-determination and unions but require taking account of the notion of socio-emotional wealth prevalent in family firms. In addition, our results support the idea that external managers mainly act as agents rather than stewards in family firms. |
| Keywords: | industrial relations,co-determination,works council,collective agreement,family firm,Germany |
| JEL: | J53 M54 G32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwqwdp:102019&r=all |