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on Small Business Management |
| By: | Davide Castellani (Henley Business School, University of Reading, UK); Giovanni Marin (Department of Economics, Society, Politics, University of Urbino, Italy; SEEDS); Sandro Montresor (Gran Sasso Science Institute, Italy); Antonello Zanfei (Department of Economics, Society, Politics, University of Urbino, Italy) |
| Abstract: | The paper builds on (eco-)innovation geography and international business studies to investigate the effects of MNEs on regional specialisation in green technologies. Combining the OECD-REGPAT and the fDi Markets datasets with respect to 1,050 European NUTS3 regions over the period 2003-2014, we find that MNEs can positively impact on regions’ specialisation in environmental technologies, when their Foreign Direct Investments (FDIs) occur in industries with a green technological footprint. The effect of green FDIs is further reinforced if they involve R&D activities. We also find that the relatedness of environmental technologies to pre-existing regional specialisations exerts a negative moderating effect on the role of green R&D FDIs in shaping patterns of specialisation. In particular, green R&D FDIs have a larger effect in regions whose prior knowledge base is highly unrelated to environmental technologies. This result is consistent with the idea that MNEs inject the host region with external knowledge, which makes the development of green-technologies less place-dependent. |
| Keywords: | green regional specialisation; MNEs; FDIs; environmental innovation |
| JEL: | O31 O33 R11 R58 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0620&r=all |
| By: | Elfindah Princes (Bina Nusantara University, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: 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 - To increase firm performance, the stakeholders have been striving and working hard to achieve company goals. Prior research on entrepreneurship theories and influencing factors have been abundant especially in the sensemaking of the current dynamic environment and disruptive innovations. Social conformity is an act of following the majority in order to be liked, to be accepted or due to the group pressure. The literatures on social conformity mostly are in journals of psychology and very limited number of these journals are in the field of entrepreneurship. Methodology/Technique - This paper aims to examine the effects of social conformity hereinafter refer to purchase conformity and the factors influencing the purchase conformity to boost sales rate, namely social status, social influence, social ties and social comparison using the mixed-method methodology on 86 adult respondents located in Jakarta. Findings - The result shows that the social comparison has the biggest influence compared to social influence and social ties. Conformity in a deeper sense can benefit the company by predicting the future trend of the majority. Novelty – The ability to predict or even create the majority trend before the trend hits will boost the sales rate and give more competitive advantages to the company. Future research should address the individual psychological factors and the strategies of the firm to increase purchase conformity. Type of Paper - Empirical |
| Keywords: | Social Conformity; Social Ties; Social Comparison; Social Status; Purchase Conformity |
| JEL: | M31 M21 |
| Date: | 2020–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr240&r=all |
| By: | Kayak, Murat |
| Abstract: | Innovation is a prominent phenomenon that enables a firm to gain a competitive advantage against its rivals. However, this does not mean that being innovative allows a firm to perform better. Although innovation has been investigated in the literature, the types of innovations still remain esoteric. As discussed, there are different types of innovations. Different kinds of innovation require different kinds of a business model and may have varying impacts on consumer product decisions. First, this study seeks to highlight the distinction between sustaining and disruptive innovations. Second, this study offers a conceptual framework for the antecedents of sustaining innovations. Theoretical and practical implications are discussed in the light of observations. |
| Date: | 2020–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:n3me5&r=all |
| By: | Ni Made Wahyuni (Universitas Warmadewa, Jl. Terompong, Denpasar, Indonesia Author-2-Name: I Putu Astawa Author-2-Workplace-Name: State Polytechnic of Bali, Jalan Bukit Jimbaran, 80361, Badung, Indonesia Author-3-Name: Author-3-Workplace-Name: 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 - This paper seeks to provide new insights into the relationship between market orientation and innovation performance by empirically testing the direct effect of market orientation (MO) on innovation performance and exploring the effects of moderation in marketing constructs, namely customer relationship management (CRM) and knowledge management, in these relationships. Methodology/Technique - This study adopts a cross-sectional research design. Data is collected from export-oriented manufacturing small and medium enterprises (SMEs) in Indonesia. The data is analysed using PLS structural equation modeling. Findings - Our findings reveal that MO is a significant driver of innovation performance. The results further confirm that CRM plays a moderating role in the interrelation between market orientation and innovation performance. In addition, market orientation and knowledge management have a positive effect on innovation performance. Novelty – These results prove that the interaction of CRM and knowledge management with market orientation, each have a significant impact on innovation performance. Market orientation behavior more effectively achieves innovation performance in manufacturing SMEs if the MO is interactive with CRM and knowledge management. This research adds new insights to the existing literature and has implications for future research and marketing practices in Indonesia, giving implications for marketing managers and export researchers about managing market orientation, CRM development, and knowledge management. Type of Paper - Empirical |
| Keywords: | Market Orientation; Customer Relationship Management; Knowledge Management, Innovation Performance. |
| JEL: | M30 M31 M39 |
| Date: | 2020–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr239&r=all |
| By: | Sana Saidi (ESC Troyes - École Supérieure de Commerce de Troyes - Groupe ESC Troyes en Champagne); Anne Berthinier-Poncet (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM]); Allane Madanamoothoo (ESC Troyes - École Supérieure de Commerce de Troyes - Groupe ESC Troyes en Champagne); Wim Vanhaverbeke (UNIS - University of Surrey); Simona Grama-Vigouroux (ESC Troyes - École Supérieure de Commerce de Troyes - Groupe ESC Troyes en Champagne) |
| Abstract: | Recent literature on open innovation (OI) highlights the need for studies regarding the factors that influence firms to switch from a closed to an OI strategy. At the same time, stakeholder literature points out the scarcity of knowledge regarding antecedent factors fostering collaboration with the firm's stakeholders and their engagement for higher value creation. To fill these gaps, we propose an analytical framework for implementing a strategic OI process through the development of stakeholder engagement. Our framework comprises 17 factors grouped in five levers: knowledge, collaboration, organizational, strategic, and financial. We empirically applied this framework to two industrial SMEs. A qualitative study was conducted based on semi-structured interviews with internal and external stakeholders of both firms. The results show that one company successfully implemented the OI process, while the other struggled to evolve from a traditionally closed innovation model to a more open model. Analyzing the results, we identified several aspects that could explain this difference. These aspects concern the OI activities performed by both firms, the combination of the five levers into a coherent OI approach, stakeholder engagement, and the characteristics of the CEOs. The current study contributes insights for theory and practice, especially as it proposes an original framework for developing a strategic OI process that integrates a stakeholder approach. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02493174&r=all |
| By: | Miglo, Anton |
| Abstract: | This paper analyzes a financing problem for an innovative firm that is considering launching a web-based platform. Our model is the first one that analyzes an entrepreneur's choice between initial exchange offering (IEO) and initial coin offering (ICO). Compared to ICO, under IEO the firm is subject to screening by an exchange that reduces the risk of investment in tokens; also the firm gets access to a larger set of potential investors; finally tokens become listed on an exchange faster. We argue that IEO is a better option for the firm if: 1) the investment size is relatively large; 2) the extent of moral hazard problems faced by the firm is relatively large; 3) the degree of investors' impatience is relatively small. We aslo find a non-linear relationship between firm quality and its financing choice. Most of these predictions are new and have not been tested sofar. |
| Keywords: | FinTech; Entrepreneurial Finance; Initial Coin Offering; Initial Exchange Offering; Moral Hazard; Utility Tokens; Listing |
| JEL: | D82 D84 G32 L11 L26 M13 O32 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99600&r=all |
| By: | ITO Tadashi; TANAKA Ayumu |
| Abstract: | The standard firm heterogeneity model of FDI considers the case of whole ownership of foreign affiliates. However, there exist many partially-owned foreign affiliates. This paper builds a model based on Helpman et al. (2004) to allow various ownership structures and posits some testable hypotheses on the relationship between productivity and ownership shares/structures. The empirical part corroborates these hypotheses, showing that high productivity firms have higher ownership share in their affiliates and lower productivity firms tend to opt for joint-ventures with wholesalers and/or local/3rd country partners. |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:20017&r=all |
| By: | Disse, Sabrina; Sommer, Christoph |
| Abstract: | Small and medium-sized enterprises (SMEs) are pivotal for inclusive economic development, but suffer disproportionally from institutional and market failures, especially from constrained access to external finance. Digitalisation of the financial industry is often seen as a game changer. This paper aims to answer the question what the role is of digital financial instruments in SME finance in Sub-Saharan Africa (SSA). It discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments in Sub-Saharan Africa, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity, in order to contrast the hype around digital finance with actual market developments and trends. Over 90 per cent of firms are small and medium-sized enterprises employing more than half of the formal workforce worldwide and more than 60 per cent in low- and middle-income countries (LMICs). SMEs also account for most of the new jobs created (or at least as much as larger firms). They create economic opportunities such as employment, skill development and upward mobility in diverse geographic areas and economic sectors, and provide a livelihood and income for diverse segments of the labour force, including low-skilled workers as well as disadvantaged and marginalised groups such as young people, women and minorities. Hence, SMEs can foster inclusive economic development and subsequently contribute to social cohesion. A substantial share of national value added is attributed to SMEs and the SME segment is strongly and positively associated with economic growth (even though no causality can be claimed in this respect) and economic diversification. SMEs are also vital for advances in productivity and innovation, as small and young firms may introduce new, efficient technologies or - especially important for LMICs -make small modifications in order to adapt innovations to the local or national contexts or benefit from knowledge spillover. In short, SMEs play a crucial role for economic development. (...) |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diedps:42020&r=all |
| By: | Nikos Chatzistamoulou (AUEB); Phoebe Koundouri |
| Abstract: | In this technical report the interest is placed on two multi-faceted indices, the Eco-innovation index and the Global Competitiveness Index of the EU 28 member states. The former index is produced by the Eco-innovation Observatory under the DG Environment of the European Commission covering the period 2010-2018 while the latter is produced by the World Economic Forum and the period of interest is 2006-2017. Thus, we devise two unique panel datasets to explore the patterns of those indices in Europe. Findings indicate that Europe is characterized by technological and institutional heterogeneity despite the fact that countries are subject to the same policy directives. Results indicate that a pattern arises indeed. Specifically, south European countries outperform in almost every aspect of the indices examined while countries of the south and east of Europe appear to have the lowest performance on average. Findings indicate that in order to achieve higher performance a tailor made policy oriented to specific group of countries appears to be a plausible strategy in contrast to a one-size-fits-all policy. |
| Keywords: | Eco-Innovation Index, Global Competitiveness, Europe, Flagship Initiative, Europe 2020 Strategy |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2011&r=all |
| By: | Josh Lerner |
| Abstract: | In the dozen years since the Global Financial Crisis, there has been a surge of interest on the part of governments in promoting entrepreneurial activity, largely by providing financing. This essay explores these policies, focusing on financial incentives to entrepreneurs and the intermediaries who fund them. The motivation for these efforts is clear: the well-documented relationships between economic growth, innovation, entrepreneurship and venture capital. Yet despite good intentions, many of these public initiatives have ended in disappointment. I argue that these failures have not simply been a matter of bad luck. Instead, the unfortunate outcomes have reflected the fundamental structural issues that make it difficult for governments to launch sustained successful efforts to promote entrepreneurship over sustained periods. I highlight several critical challenges, and outline two principles that might render these efforts more effective. |
| JEL: | G18 G24 H81 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26884&r=all |