nep-sbm New Economics Papers
on Small Business Management
Issue of 2020‒11‒02
fourteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Influence of Knowledge Management Processes on Intellectual Capital and Innovation Performance By Wendra Wendra
  2. Services imports and labour in Viet Nam By Alexander Jaax; Louise Johannesson; Thi Xuan Thu Nguyen
  3. Business Models for Starting Software Companies By Ivanov, Svetoslav; Petrov, Pavel
  4. Inter-sectoral and international R&D spillovers By Belderbos, René; Mohnen, Pierre
  5. Network innovation versus innovation through networks By M.Z. Yaqub; Marijana Sreckovic; Gérard Cliquet; G. Hendrikse; J. Windsperger
  6. The determinants of service export behaviour in Italian non-financial firms By Alessandro Moro; Enrico Tosti
  7. The employment and job quality effects of innovation in France, Germany and Spain: evidence from firm-level data By Richard Duhautois; Christine Erhel; Mathilde Guergoat-Larivière; Malo Mofakhami; Monika Oberschneider; Dominik Postels; Javier Anton; Rafael Muñoz De Bustillo; F Pinto
  8. Does religiosity have an influence on the small and medium-sized enterprise managers’ will to use Islamic finance loans? By Ridouan, Allaa
  9. INDUSTRIAL CLUSTERS, NETWORKS AND RESILIENCE TO THE COVID-19 SHOCK IN CHINA By Ruochen Dai; Dilip Mookherjee; Yingyue Quan; Xiaobo Zhang
  10. Services Trade and Labour Market Outcomes: Evidence from Italian Firms By Omar Bamieh; Francesco Bripi; Matteo Fiorini
  11. Judge Bias in Labor Courts and Firm Performance By Cahuc, Pierre; Carcillo, Stéphane; Patault, Bérengère; Moreau, Flavien
  12. Determinants of Growth Performance of High Growth Firms: An Analysis of The Turkish Manufacturing Sector By Fatma M. Utku-ismihan; M. Teoman Pamukçu
  13. R&D and firm resilience during bad times By Gupta, Apoorva
  14. Explaining Firm-Level Gender Productivity Differential in Africa By Amira El-Shal; Hanan Morsy

  1. By: Wendra Wendra (PPM School of Management, Indonesia Author-2-Name: Fadhliah M. Alhadar Author-2-Workplace-Name: Khairun University, Jalan Pertamina Kampus II Unkhair, Gambesi, 97719, Ternate, 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 - Low amounts of management research have taken into account the link between knowledge management processes and intellectual capital in innovation success. This study empirically investigates the mediation role of intellectual capital in the relationship between knowledge management processes and innovation performance. Methodology/Technique - The research questionnaires were distributed to 297 small and medium enterprises wearing apparel companies in Indonesia. The primary statistic methodology for data analysis was Partial Least Square. Findings - The study found that knowledge management processes and intellectual capital significantly influence innovation performance. Furthermore, intellectual capital mediated knowledge management processes impact on innovation performance partially Novelty - IC partially mediates the impact of knowledge management processes on innovation performance. Type of Paper - Empirical.
    Keywords: Knowledge Management Processes; Intellectual Capital; Innovation Performance; Small and Medium Enterprises; Wearing Apparel Companies.
    JEL: L67 L25 M19
    Date: 2020–09–30
  2. By: Alexander Jaax (OECD); Louise Johannesson (OECD); Thi Xuan Thu Nguyen (Diplomatic Academy of Viet Nam)
    Abstract: This paper draws on detailed firm-level and worker-level information to explore the link between services imports and employment dynamics in the case of Viet Nam. The econometric analysis consists of two parts. First, data covering formal firms are exploited to investigate the relationship between sector-level services import intensity and firm-level employment and firm-level average wages. The second part is conducted at the level of workers and also covers informal workers. The results show that sector-level services import intensity positively affects firm-level average wages of Vietnamese formal services firms, whereas a small negative effect on firm-level employment is observed. For manufacturing firms, there is no conclusive evidence regarding the association between services import intensity and firm-level employment. The worker-level analysis identifies a positive wage effect of occupation-level exposure to services imports on domestic workers in foreign-owned businesses in all sectors. The results also suggest that higher skilled workers might be more likely to benefit from services imports. This paper provides support for an approach that combines an emphasis on lowering firms’ costs of sourcing foreign services inputs with efforts to strengthen SMEs’ capabilities and improve workers’ skills.
    Keywords: employment, individual and firm-level data, trade, wages, worker heterogeneity
    JEL: F14 F16 F61 J21 J30 C26
    Date: 2020–10–23
  3. By: Ivanov, Svetoslav; Petrov, Pavel
    Abstract: Companies implement and utilize business models in their activity. The starting companies and software companies have specific ones. The paper aims a theoretical review of the business models appropriate for starting software companies. The subject is a starting software company that develops software products or services to prove their expediency, feasibility and market potential. The products can be sold on the market with one or a combination of available theoretical business models. These models are an essential part of the entrepreneurial process to reach market success and growth.
    Keywords: Software development, business model, entrepreneurship, starting company
    JEL: L22 L26 L86
    Date: 2019–10–24
  4. By: Belderbos, René (UNU-MERIT, Maastricht University, and KU Leuven); Mohnen, Pierre (UNU-MERIT, Maastricht University)
    Abstract: It has been well established in the literature that there are intra- and inter-sectoral knowledge spillovers, national as well as cross-border, that make the social rate of return to R&D exceed the private rate of return. Taking such spillovers into account is essential to examine the impact of R&D policies. This paper reviews the literature on (international) R&D spillovers and the various ways that have been proposed to measure such spillovers. Although distinctions have been made between knowledge spillovers due to the public good nature of knowledge on the one hand, and 'rent' or 'pecuniary' spillovers between suppliers and buyers due to the incomplete translation of R&D-induced quality improvements into the price of intermediates on the other hand, this distinction is difficult to make empirically. The variety of potential transmission channels and transmission effects - all with their measurement problems, suggests calculating spillover matrices that are sufficiently broad to capture their correlated effects. The paper proceeds by discussing the advantages and disadvantages of different spillover measures. It subsequently describes two matrices of inter-sectoral and international spillover weights based on patent citation data. It concludes with suggestions for future work.
    Keywords: spillovers, R&D policy, innovation, productivity, patents
    JEL: O31 O32 O33
    Date: 2020–10–12
  5. By: M.Z. Yaqub (King Abdulaziz University); Marijana Sreckovic (TU Wien - Technische Universität Wien); Gérard Cliquet (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); G. Hendrikse (Erasmus University Rotterdam); J. Windsperger (Universität Wien)
    Abstract: In today's dynamic, complex and interconnected environments, interfirm networks in its various forms (e.g. franchising, retail and service chains, cooperatives, financial networks, joint ventures, strategic alliances, clusters, public-private partnerships, digital platforms) are becoming increasingly important in helping firms improve their competitive position through an enhanced access to innovation, complementary resources and capabilities otherwise not available to them. Driven by increased performance pressures in unpredictable environments, firms embedded in networks are increasingly moving from cooperators to collaborators as value co-creators. The aim of this introductory article is to discuss the role of innovation in business networks by focusing on two major topics: Network innovation versus innovation through networks. In addition, we provide an overview of the articles included in the special issue on Networks and Innovation focusing on the questions: (1) what is the impact of network characteristics on a firm's innovation?; and (2) what are the determinants of innovation in interfirm networks? © 2020 Elsevier Inc.
    Keywords: Innovation through networks,Network innovation,Networked firms,Theoretical perspectives on networks and innovation,Value co-creation,innovation through networks
    Date: 2020
  6. By: Alessandro Moro (Bank of Italy); Enrico Tosti (Bank of Italy)
    Abstract: This paper analyses the main drivers of Italian service exports using firm-level data. A gravity equation, augmented with firm characteristics and FDI variables, is estimated using a panel of Italian exporters constructed by merging two datasets, the first on international trade in services and the second on FDI relationships, both used to compile the Italian balance of payments. After presenting a formal justification for the presence of FDI variables in the gravity equation, the model is estimated using a panel composed of non-financial firms exporting services other than travel, transport and processing in the period from 2013 to 2018. The econometric analysis shows that FDI is, among the standard drivers of exports (firm size and productivity, foreign demand, trade costs), a significant variable that positively affects Italian firms’ exports of services, pointing to complementarity rather than to substitution. This evidence suggests that a significant component of trade in services includes intra-group transactions.
    Keywords: trade in services, firm-level data, gravity model, FDI, panel data, firm heterogeneity
    JEL: F14 L80 D22 C23 C51
    Date: 2020–09
  7. By: Richard Duhautois; Christine Erhel (CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Mathilde Guergoat-Larivière; Malo Mofakhami; Monika Oberschneider; Dominik Postels; Javier Anton; Rafael Muñoz De Bustillo; F Pinto
    Date: 2020–10–13
  8. By: Ridouan, Allaa
    Date: 2020–01–01
  9. By: Ruochen Dai (Central University of Finance and Economics); Dilip Mookherjee (Boston University); Yingyue Quan (Peking University); Xiaobo Zhang (Peking University and IFPRI)
    Abstract: We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.
    Keywords: Clusters, Covid-19, China, Firms, Social Networks
    JEL: J12 J16 D31 I3
    Date: 2020–10
  10. By: Omar Bamieh; Francesco Bripi; Matteo Fiorini
    Abstract: The paper investigates the relationship between services trade performance and employment characteristics in Italian firms. Our analysis is at the micro level and descriptive in nature. We merge micro data on services trade transactions with employment and wage variables at the level of the firm. We find that firms engaged in services trade tend to employ a larger share of managers and white collars and to pay higher average wages. They also exhibit systematically smaller shares of blue collars in their employment structure. These patterns hold qualitatively across all main sectors of firms' affiliation and across sectors of traded services. We find a strong and positive association between services exports and/or imports and total employment. Regression analysis confirms this last finding and shows it is robust to controlling for various confounding heterogeneity.
    Keywords: Services trade, Employment, Firm-level data, Italy
    JEL: F14 F16
    Date: 2020–05
  11. By: Cahuc, Pierre (Sciences Po, Paris); Carcillo, Stéphane (OECD); Patault, Bérengère (CREST (ENSAE)); Moreau, Flavien (International Monetary Fund)
    Abstract: Does labor court uncertainty and judge subjectivity influence firms performance? We study the economic consequences of judge decisions by collecting information on more than 145,000 Appeal court rulings, combined with administrative firm-level records covering the whole universe of French firms. The quasi-random assignment of judges to cases reveals that judge bias has statistically significant effects on the survival, employment, and sales of small low-performing firms. However, we find that the uncertainty associated with the actual dispersion of judge bias is small and has a non-significant impact on their average outcomes.
    Keywords: firm survival, judge bias, dismissal compensation, employment
    JEL: J33 J63 J65
    Date: 2020–10
  12. By: Fatma M. Utku-ismihan (Ministry of Agriculture and Forestry); M. Teoman Pamukçu (Middle East Technical University, Ankara, Turkey)
    Abstract: Due to their important contribution to overall growth performance of economies policy makers have attributed great importance to high growth firms (HGFs). In order to examine and support their efforts, researchers have tried to identify the factors that initiate and promote the growth performance of HGFs. However, this is not a simple task since the factors that contribute to the growth performances of firms seem to vary across sectors and countries. This study examines the characteristics of HGFs and attempts to identify those factors that stimulate HGFs in the Turkish manufacturing sector using a rich firm-level dataset over the period 2003-2014.
    Date: 2020–10–20
  13. By: Gupta, Apoorva
    Abstract: Can being innovative help firms to shield themselves from the disruptive effects of a recession? Using data for Spanish manufacturing firms, this paper finds that innovative firms suffered considerably less compared to noninnovative firms during the Great Recession. The operating mechanism for the resilience of innovative firms to market disruption during a recession is product differentiation, and not reduction in marginal cost of production and prices with process innovation. The data does not support alternative explanations such as better access to capital, or difference in labour moving costs for innovative firms. The results provide evidence for the role of innovation in making firms dynamically capable and resilient to large negative shocks.
    Keywords: Innovation,Recession,Resilience,Product differentiation,Dynamic capability
    JEL: L25 O30 O31 E32
    Date: 2020
  14. By: Amira El-Shal (African Development Bank); Hanan Morsy (African Development Bank)
    Abstract: The gender gap in firm productivity is the widest in Africa, and evidence on the determinants of this variation remains thin. We exploit a harmonized firm-level survey dataset of 46 African countries over the period 2006-2018 to explain the productivity gender differential and identify the association pathways. Special focus is placed on the behavior with respect to innovation and technology adoption and dealing with market inefficiencies and institutional barriers. We construct five composite indices to reflect the categories of productivity determinants and apply mean and quantile decomposition approaches. Our estimates indicate a significant productivity differential by the gender of entrepreneur in Africa, specifically in the Northern and Eastern regions. Interestingly, the differential is not induced by educational nor entrepreneurial abilities but rather by women being more negatively affected by institutional barriers, such as corruption and perceptions about it, and market inefficiencies, such as the lack of access to finance. These results can be explained by gender-based behavioral differences and institutional structures, which can as well affect women’s selection of business activity, making their firms less likely to benefit from some innovation and technology adoption activities.
    Date: 2020–10–20

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