nep-sbm New Economics Papers
on Small Business Management
Issue of 2020‒03‒23
fourteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Productivity in Europe: Trends and drivers in a service-based economy By Peter Bauer; Igor Fedotenkov; Aurelien Genty; Issam Hallak; Peter Harasztosi; David Martinez Turegano; David Nguyen; Nadir Preziosi; Ana Rincon-Aznar; Miguel Sanchez Martinez
  2. How do SMEs use support services during their internationalisation process: A comparative study of French traditional SMEs and INVs in Asia By Nathalie Belhoste; Rachel Bocquet; Veronique Favre-Bonté; Frédéric Bally
  3. TES analysis of AI Worldwide Ecosystem in 2009-2018 By Sofia Samoili; Riccardo Righi; Melisande Cardona; Montserrat Lopez-Cobo; Miguel Vazquez-Prada Baillet; Giuditta De-Prato
  4. Effects of cluster policies on regional innovation networks: Evidence from France By Konan Alain N'ghauran; Corinne Autant-Bernard
  5. Assessing the collaboration and network additionality of innovation policies: a counterfactual approach to the French cluster policy By Konan Alain N'ghauran; Corinne Autant-Bernard
  6. Cyber incidents, security measures and financial returns: Empirical evidence from Dutch firms By Milena Dinkova; Ramy El-Dardiry; Bastiaan Overvest
  7. Determinants of Culinary Business Performance By Raden Lestari Garnasih
  8. Natural Disasters, Firm Survival and Growth: Evidence from the Ise Bay Typhoon, Japan By Toshihiro Okubo; Eric Strobl
  9. Open Data, Open Science & Open Innovation for Smart Specialisation monitoring By FUSTER MARTI Enric; Elisabetta Marinelli; PLAUD Sabine; QUINQUILLA Arnau; MASSUCCI Francesco
  10. Do Financial Constraints Affect the Composition of Workers in a Firm? By Breunig, Robert; Hourani, Diana; Bakhtiari, Sasan; Magnani, Elisabetta
  11. Did early-career complexity increase after labour market deregulation? Heterogeneity by gender and education across cohorts in Italy By Struffolino, Emanuela; Raitano, Michele
  12. Why was Schumpeter not more concerned with patents? By Rémy Guichardaz; Julien PÉnin
  13. Informing employees in small and medium sized firms about training: results of a randomized field experiment By van den Berg, Gerard J.; Dauth, Christine; Homrighausen, Pia; Stephan, Gesine
  14. Report on the entrepreneurship and innovation in agriculture workshop, By Foued Cheriet

  1. By: Peter Bauer (European Commission - JRC); Igor Fedotenkov (European Commission - JRC); Aurelien Genty (European Commission - JRC); Issam Hallak (European Commission - JRC); Peter Harasztosi (European Commission - JRC); David Martinez Turegano (European Commission - JRC); David Nguyen (National Institute of Economic and Social Research); Nadir Preziosi (European Commission - JRC); Ana Rincon-Aznar (National Institute of Economic and Social Research); Miguel Sanchez Martinez (European Commission - JRC)
    Abstract: High levels of labour productivity growth are a key element to maintaining high standards of living in the long run in Europe. However, the EU has been experiencing a significant slowdown in labour productivity and total factor productivity growth, a phenomenon which has even exacerbated over the last decade, contrary to what would be expected in the recovery from the financial crisis. The trends and driving forces of the current sluggish productivity growth in Europe are analysed in this report with a special emphasis on services. After reviewing the literature in the field, the report zooms in on the role played by factors such as structural change, intangible investments, firm size distribution, firm demography, labour dynamics, zombie firms, business cycle dynamics and public expenditure and assesses their impact on productivity growth based on a variety of data sources and methodologies. The report focusses on the main results at EU level and includes some cross-country and cross-sectoral comparisons wherever possible.
    Keywords: productivity puzzle, structural change, intangible assets, public expenditure, business cycles, creative job destruction, firm entry, firm exit, firm size, zombie firms, Member States, service sectors
    Date: 2020–03
  2. By: Nathalie Belhoste (GEM - Grenoble Ecole de Management); Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Veronique Favre-Bonté (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Frédéric Bally (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: This article integrates research on the internationalisation processes of small and medium sized enterprises (SMEs) and export assistance services to investigate how such firms use support services drawing upon a large, qualitative study of 32 French traditional SMEs and international new ventures (INVs) that have entered Asia. Our key contribution is to consider the time to internationalisation (gradual or rapid) and the stage of internationalisation (entrance or intensification) rather than export intensity alone, and to examine how support services can help SMEs internationalise. The identification of different configurations of uses leads to the development of theoretical propositions that extend existing models pertaining to support services and firm internationalisation. These findings have several important managerial implications for support services to target their offer more precisely to two types of SMEs; they also provide useful guidance for SMEs to determine which tailor-made offerings from private and public actors are most applicable to their internationalisation efforts.
    Keywords: traditional small medium-sized enterprises,international new ventures,internationalisation process,internationalisation support services
    Date: 2019
  3. By: Sofia Samoili (European Commission - JRC); Riccardo Righi (European Commission - JRC); Melisande Cardona (European Commission - JRC); Montserrat Lopez-Cobo (European Commission - JRC); Miguel Vazquez-Prada Baillet (European Commission - JRC); Giuditta De-Prato (European Commission - JRC)
    Abstract: This report analyses and compares countries and regions in the evolving international industrial and research landscape of Artificial Intelligence (AI). The evidence presented is based on a unique database covering the years 2009-2018. The database has been specifically built from a multitude of sources to provide scientific evidence and monitor the AI landscape worldwide. Companies, universities, research institutes and governmental authorities with an active role in AI are identified and analysed in an aggregated fashion. The report presents a wide variety of indicators, allowing us to expand our knowledge on issues such as: the size of the AI ecosystem globally and at country level; which are the main global competitors of the EU; what is the level of industrial involvement per country; what are the firms’ demographics, profiling of economic agents according to their strengths in innovation and take-up of AI, including their patenting performance; and the degree of internal and external collaborations between EU and non-EU firms and research institutions. The analysis of the AI activities developed by agents in the studied territories provides interesting insights on their areas of specialisation, highlighting the strengths of the EU and its Member States in the global landscape. Each section offers a focus on EU Member States.
    Keywords: artificial intelligence, techno-economic analysis, digital transformation, AI landscape, AI thematic area, network of collaborations, AI industry
    Date: 2020–02
  4. By: Konan Alain N'ghauran (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Corinne Autant-Bernard (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Despite the growing body of literature evaluating cluster policies, it still remains difficult to establish conclusively their structural effects on regional innovation networks. Focusing on the French cluster policy during the period 2005-2010, this study aims at evaluating how cluster policies influence the structure of local innovation networks following network topologies that may be beneficial for regional innovation. Based on a panel data of four periods and 94 NUTS3 French regions, we estimate spatial Durbin models, allowing us to identify direct, indirect and total effects of cluster policies. The results suggest that cluster policies can result in both positive and negative total effects on the structure of local innovation networks depending on regions' technological specialisation. Beyond the heterogeneous effects, the results also highlight that cluster policies may lead to a regional competition for the strengthening of innovation networks. This finding echoed previous research pointing out the possible 'beggar-thy-neighbour' effects of cluster policies.
    Keywords: Cluster,Regional innovation,Innovation network,Policy evaluation
    Date: 2020
  5. By: Konan Alain N'ghauran (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Corinne Autant-Bernard (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Whereas most collaboration-based innovation policies aim at fostering efficient ecosystems of innovation, evaluations of the behavioural impact of such policies remain few and far between. Relying on external-to-the-policy network data to build a counterfactual approach, this paper addresses three main evaluation issues: do cluster policies make firms more collaborative? Do they encourage local ties? Do they induce network additionality? Focusing on French data, our results suggest that cluster policies may lack effectiveness in tackling network failures.
    Keywords: Policy evaluation,Behavioural additionality,Organisational change,Counterfactual approach,Social network analysis,Cluster policy
    Date: 2020
  6. By: Milena Dinkova (CPB Netherlands Bureau for Economic Policy Analysis); Ramy El-Dardiry (CPB Netherlands Bureau for Economic Policy Analysis); Bastiaan Overvest (CPB Netherlands Bureau for Economic Policy Analysis)
    Abstract: This CPB discussion paper investigates the cybersecurity of Dutch small and medium-sized enterprises, the security measures they take and the relationship thereof with financial results. Often, small and medium-sized enterprises are identified as a particularly vulnerable group for cyber incidents. However, there is not much academic research focusing on the cyber security costs for those firms. In this paper, we employ representative survey data on ICT use and administrative tax record data on Dutch firms to understand how cybersecurity investments relate to the probability of cyber incidents and firm profitability. This dataset allows us to control for firm size, industry, and IT organization.
    JEL: D22 D83 G14 M15
    Date: 2020–03
  7. By: Raden Lestari Garnasih (Management Department, Economic and Business Faculty, Riau University, Indonesia Author-2-Name: Kurniawaty Author-2-Workplace-Name: Management Department, Economic and Business Faculty, Riau University, Indonesia Author-3-Name: Dewita Suryatiningsih Author-3-Workplace-Name: Management Department, Economic and Business Faculty, Riau University, 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 - Determination of the performance factors of the small culinary business sector is an important aim of this research. The research also aims to analyze the interconnectedness between the factors which generate competitive advantage and improve the performance of small and medium-sized enterprise businesses.Methodology/Technique - Questionnaires were distributed to 115 such enterprises in the culinary field located in the city of Pekanbaru with the use of the cluster area a non-random sampling technique. In addition, a Likert scale was used to obtain responses from the participants, and the statistical analysis tool employed was PLS (Partial Least Squares).Findings - The research reveals that business networking and human resource competencies are factors that influence the business performance of small entrepreneurs in the culinary sector. However, competitive advantage does not influence the effect of human resource competence and business networking on business performance.Novelty - The variables studied in this culinary research field have not been comprehensively examined in previous studies.Type of Paper - Empirical.
    Keywords: Competitive Advantage; Business Networking; Culinary; Human Resources.
    JEL: M10 M16 M19
    Date: 2020–03–30
  8. By: Toshihiro Okubo (Faculty of Economics, Keio University); Eric Strobl (Department of Economics, Bern University)
    Abstract: This paper investigates the damage impact of the 1959 Ise Bay Typhoon-the most destructive storm in Japanese history-on firm performance in Nagoya City. To this end, we combine firm-level data with a locally derived damage index measured in terms of the duration of storm surge-induced flooding. We find heterogeneous impacts of flood damage across firms and sectors. More specifically, older manufacturing firms tend to survive and, conditional on survival, longer time inundation moderated their employment and sales growth, but also promoted capital growth, suggesting investment in new machinery and facilities. In contrast, employment growth increased in the construction sector to satisfy the construction demand for rebuilding after the supertyphoon.
    Keywords: Typhoon, Flood, Firm survival, Firm growth, Nagoya city
    JEL: Q54 R10 R12 R14 D22 L25
    Date: 2020–02–25
  9. By: FUSTER MARTI Enric; Elisabetta Marinelli (European Commission - JRC); PLAUD Sabine; QUINQUILLA Arnau; MASSUCCI Francesco
    Abstract: This report has been produced as part of the “Lagging Regions†project of the European Commission's Joint Research Centre. Implementing a Preparatory action of the European Parliament in close cooperation with the Commission’s Directorate General for Regional and Urban Policy, Lagging Regions aims to support selected slow growth and low-income territories in nine EU Member States in the implementation of their smart specialisation strategies. In addition to the provision of targeted support to each of these partner territories, Lagging Regions brings them together to share experiences and to develop cross-regional, horizontal perspectives on the key challenges they and many other regions across Europe are facing. These include: Governance, Monitoring and Evaluation; Managing industrial transitions and Transregional and transnational collaboration. Monitoring and evaluation are important concerns for regions involved in RIS3. Under the Lagging Regions project, horizontal working group activities led to the production of a Massive Open Online course on monitoring. This work also led to the identification of the key next steps in furthering regions’ capacities to monitor and evaluate the outcomes of their RIS3 efforts. This report presents the outcomes of one such next step. The Lagging Regions project has previously highlighted the need for better tools and opportunities to compare policy processes, outputs and outcomes across different dimensions and geographies. These issues pointed directly to the role open data, open (government data), open science and open innovation in S3 monitoring, an area so far unexplored. Following a combination of participatory processes, fieldwork, desk research and expert consultation, the working group activities described in this document, have provided great learning opportunities to the participants. This report is an attempt to share such lessons with the wider stakeholder community.
    Keywords: Lagging Regions, Smart Specialisation,RIS3
    Date: 2020–02
  10. By: Breunig, Robert (Australian National University); Hourani, Diana (Australian National University); Bakhtiari, Sasan (Department of Industry, Innovation and Science Australia); Magnani, Elisabetta (Macquarie University, Sydney)
    Abstract: We study the relationship between financing constraints and the work- force composition of firms that employ both casual and non-casual workers. We use data on Australian firms from 2009-2014 and a more direct measure of firm financial constraint than previous studies. We show that the proportion of casual workers in firms grew over the time period being analysed. This was the case regardless of whether a firm was financially constrained or not. However, the magnitude of this change differed between financially constrained and unconstrained firms. We find that of firms whose workforces were growing, financially constrained firms hired relatively fewer casual workers than financially unconstrained firms did. This is consistent with firms using internal financing to cope with a lack of access to credit and equity.
    Keywords: financial constraints, firm behaviour, employment patterns, casual work, Australia
    JEL: D22 L23 J29 J49
    Date: 2020–02
  11. By: Struffolino, Emanuela; Raitano, Michele
    Abstract: This article considers the complexity of ea rly employment life-courses focusing on the heterogeneity by gender and education. We construct 7-year-long early employment trajectories by using a unique longitudinal da taset that combines administrative records on employment episodes and survey data from the Italian module of the EU-SILC. This enables the application of advanced method s in sequence analysis to calculate the complexity of employment trajectories following labour market entry. Complexity reflects the instability of early-careers by consid ering the number of transitions between employment states and the length of each epis ode. We compare several cohorts of Italian workers who entered the labo ur market between 1974 and 2001 in institutional contexts characterized by different levels of deregu lation. The results demonstrate that early-career complexity increased across cohorts, but mostly for medium and lower-educated individuals. This dynamic is particularly pr onounced for women, and complexity is the highest for recent cohorts, especially among those with less human capital.
    Keywords: labour market,youth,gender,education,flexibility,sequence analysis
    Date: 2019
  12. By: Rémy Guichardaz (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique); Julien PÉnin (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Although Schumpeter is widely acknowledged as a pioneer of the economic analysis of innovation and although the patent system occupies an important place today in this field of research, Schumpeter did not see patents as playing a key role for fostering innovation. He mentioned them only a couple of times, in passing, and never developed any scientific analysis of the patent system. In this paper, we propose an explanation of this blind spot based on three characteristics of Schumpeter's thought: first, entrepreneurs are largely motivated by non-monetary elements; second, they enjoy a first-mover advantage because imitation is difficult; third, Schumpeter viewed the innovation process as a relentless race in which firms are doomed to innovate in order to avoid disappearing. The Schumpeterian view of the economic process therefore largely reduces the economic importance of patents.
    Keywords: Patents,Schumpeter,innovation,incentives,creative destruction
    Date: 2019–09
  13. By: van den Berg, Gerard J. (IFAU - Institute for Evaluation of Labour Market and Education Policy); Dauth, Christine (IAB (The Institute for Employment Research); Homrighausen, Pia (IAB (The Institute for Employment Research); Stephan, Gesine (IAB (The Institute for Employment Research)
    Abstract: We mailed brochures to 10,000 randomly chosen employed German workers eligible for a subsizided occupational training program called WeGebAU,informing them about the importance of skill-upgrading occupational training in general and about WeGebAU in particular. Using survey and register data,we estimate effects of the information treatment brochure on awareness of the program, on take-up of WeGebAU and other training,and on subsequent employment. The bRochure more than doubles awareness of the program. There are no effects on WeGebAU take-up but participation in other(unsubsidized) training increasesamong employees aged below 45. Short-term labor market outcomes are not affected.
    Keywords: employment; wages; skills; randomized controlled trial; information treatment
    JEL: J24 J65
    Date: 2020–02–27
  14. By: Foued Cheriet (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)
    Date: 2019–12–04

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