nep-sbm New Economics Papers
on Small Business Management
Issue of 2020‒12‒21
twenty papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Importance of regional Spill-over Effects for Eco-Innovations in German Start-ups By Jens Horbach
  2. Roles of Technology, Innovation, and Finance in Small and Medium-sized Enterprises (SMEs) in Sri Lanka By Jayasooriya, Sujith
  3. Impact of Alternative Funding Instruments to Improve Access to Finance in SMEs: Evidence from Vietnam By Jayasooriya, Sujith
  4. Evaluation of indirect effects of place-based science-industry transfer policies: Case of French Technological Research Institutes By Ruben Fotso
  5. Foreign Shocks as Granular Fluctuations By Julian di Giovanni; Andrei A. Levchenko; Isabelle Mejean
  6. Formalization and productivity: Firm-level evidence from Viet Nam By Jann Lay; Tevin Tafese
  7. Pollution Reduction by Rationalization in Indian Firms By Inma Martínez-Zarzoso; Shampa Roy-Mukherjee; Finn-Ole Semrau; Anca M. Voicu
  8. How do you design an experimental economy? By Carlsson, Bo
  9. Beyond 140 Characters: Introduction to The Role of Innovation and Entrepreneurship in Economic Growth By Michael J. Andrews; Aaron Chatterji; Scott Stern
  10. Innovative activity and some features of taxation By Pushkareva, Lyudmila; Pushkarev, Mikhail
  11. Growth Models and the Footprint of Transnational Capital By Patrick Kaczmarczyk
  12. The Role Of Catalytic Collaboration In Leveraging Transformational Leadership Competencies To Generate Sustainable Innovation By Solikin M. Juhro; A. Farid Aulia; Dessy Aliandrina; Donni Hadiwaluyo; Edo Lavika
  13. Evaluating Public Supports to the Investment Activities of Business Firms: A Multilevel Meta-Regression Analysis of Italian Studies By Chiara Bocci; Annalisa Caloffi; Marco Mariani; Alessandro Sterlacchini
  14. L’appropriation d’une innovation managériale dans le contexte local : le cas de la certification qualité By Yoann Queyroi; David Carassus; Benjamin Dreveton; Pierre Marin
  15. Do Standards Improve the Quality of Traded Products? By Anne-Célia Disdier; Carl Gaigné; Cristina Herghelegiu
  16. Evaluating Innovation and Export Capabilities of SMEs: Toward a Multi-Criteria Decision-Making Methodology By Manon Enjolras; Mauricio Camargo; Christophe Schmitt
  17. Comparative analysis of financing by Private Equity or Business Angels: An effect on innovation? By Stéphane Koffel; Jonathan Labbé
  18. Firm growth in developing countries: Driven by external shocks or internal characteristics? By Florian Léon
  19. Human Capital Constraints, Spatial Dependence, and Regionalization in Bolivia: A Spatial Clustering Approach By Mendez, Carlos; Gonzales, Erick
  20. Digital Technologies for Small and Medium Enterprises and job creation in Sub-Saharan Africa By Joël Cariolle; David Carroll

  1. By: Jens Horbach (Faculty of Business, University of Applied Sciences Augsburg)
    Abstract: Eco-innovation activities are crucial for the mitigation of climate change and further envi-ronmental problems. Start-up firms might play an important role for this relatively new in-novation field as they are predestinated for realizing completely new ideas compared to in-cumbent firms that are not willing to abandon their established innovation paths. On the oth-er side, start-ups have limited resources and need external regionally available input of knowledge. Based on data of the German IAB/ZEW Start-up Panel in combination with re-gional data at the NUTS 3 level, the paper analyzes the determinants of eco-innovation in start-up firms. The econometric results show that regional spill-over effects seem to be very important for eco-innovation activities of start-up firms. In regions where the existing stock of environmentally related patents is already high, the probability that a start-up firm realiz-es eco-innovations is significantly higher. Furthermore, eco-innovative start-ups show dis-proportionally more difficulties to get financing from external investors.
    Keywords: Regional spill-over effects, environmental innovation, probit models
    JEL: Q55 R11 C25
    Date: 2020–12
  2. By: Jayasooriya, Sujith
    Abstract: Roles of technology, innovation and finance in Small and Medium Enterprise (SME) sector for economic development process is critical in emerging Asia. Growth, innovation, and productivity enhancement of the SME sector is always limited, and not up to its potential in Asia; Sri Lankan SME sector is not deviated from this dilemma. The paper discusses the case of project in economic enterprises development services and its approaches in supply-side management of SMEs in Sri Lanka. A baseline evaluation survey of 1200 SMEs was conducted to identify the potential and constrains for the supply side of the SMEs to promote technology adoption, innovation and financing in line with the national SME sector development policies. The results are discussed in three distinguished theses: (i) Enabling role of the technology and finance: creating enabling environment for the smooth procedures, capacity building, venture capital, financial development and banks, credit to the private sector and loans; (ii) Facilitative role of the finance and technology: application of technology and adaptation to the skill development and connections, information flow, and financial capacity; (iii) Innovative role of the finance and technology: microfinance, microinsurance, and transactions. The evidences show that lack of access to finance and technology demotes capacity building and skill training, information flow, business environment and networking of the SMEs. Hence, integrative solutions of finance and technology increase management of risks, adoption and enhanced networking for the enterprise development. These two pillars, technology and finance, become catalyst in the supply-side of the SMEs. Provoking business environment through technology adoption and financial sector development policies improving human capital, entrepreneurship and innovation enhance the performance of SMEs to thrive sustainable growth and development.
    Keywords: Business Environment, Finance, Innovation, SMEs, Technology
    JEL: L26 L53 O14 O31 O32
    Date: 2020–11–28
  3. By: Jayasooriya, Sujith
    Abstract: Access to finance in the digital era is innovative with the different alternative funding approaches. In emerging markets, digital innovation of the financial sources is not limited to the own capital or borrowing from bank or credit institutions but numerous paths of financing. The purpose of the research is to recognize the alternative and innovative funding tools including borrowed from bank/credit institution, borrowed against interest from other sources, and borrowed from other sources without interest, peer-to-peer (P2P) lending -borrowed from friends and relatives without interest-, and stocks issued. The data was obtained from the survey of 2647 enterprises conducted by the UNU WIDER 2015 in Vietnam. The probit model approach for access to finance is used to analyze the impact of alternative funding tools for enterprises. The results predict the use of alternative funding tools for startup capital and investment financing of the firms separately. The results revealed that sources of start-up capital from founders’ own money, loans from friends and acquaintances, finance/investments from other enterprises, domestic bank loan, and Informal credit association (money lenders, informal bank, pawnshop) are positively and significantly affect the access to finance, while loans from family members, business associations, and international bank loans are not significant. Meanwhile, own funding, bank/credit institution, borrowed against interest from other sources, and borrowed from other sources without interest, borrowed from friends and relatives without interest have significantly affected the access to finance. In a summary, the alternative funding tools are an important source for financing SMEs in Vietnam.
    Keywords: Alternative funding, P2P lending, SMEs, Access to Finance
    JEL: L11 L22 L25 M13
    Date: 2020–11–27
  4. By: Ruben Fotso (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: When it comes to evaluating the causal effect of public policies on corporate performance, most studies tend toexclusively focus on targeted (treated) firms as if they have no relationship to the rest of the economy. Yet, public policies are highly likely to indirectly influence non-targeted firms due to the relationships they have with the targeted firms. This paper aims to fill this gap by evaluating the indirect causal effect of a new French science-industry transfer policy on the financial and employment variables of non-targeted companies. To do so, it focuses on French Technological Research Institutes (TRIs) which are science-industry collaborations based on technological platforms that bring together SMEs, large companies, universities and public research bodies with the goal of accelerating the transfer of knowledge towards firms and generating spillovers inside and outside the scheme. Based on geographical economics literature, it can be assumed that indirect effects tend to be spatially concentrated. By comparing a local untreated company to a non-local untreated company, therefore, using a difference-indifferences method applied to panel data (2008-2016) and combined with a double matching at the department level (NUTS 3) and at the firm level, it can be seen that non-beneficiary companies, located in the treated French department significantly improve their financial performance (turnover, financial autonomy) compared to control companies located in the control departments. The dynamics of employment variables are a little more complex. A negative significant effect is observed on the proportion of managers at the beginning of treatment and a positive significant effect is noticed later at the end of the period of observation. Analysis of the dynamics of the effects indicates that performance does not improve immediately after the treatment but later in time.
    Keywords: Indirect effect,impact evaluation,difference-in-differences approach,SMEs,spillovers
    Date: 2020–11–10
  5. By: Julian di Giovanni; Andrei A. Levchenko; Isabelle Mejean
    Abstract: This paper uses a dataset covering the universe of French firm-level sales, imports, and exports over the period 1993-2007 and a quantitative multi-country model to study the international transmission of business cycle shocks at both the micro and the macro levels. The largest firms are both important enough to generate aggregate fluctuations (Gabaix, 2011), and most likely to be internationally connected. This implies that foreign shocks are transmitted to the domestic economy primarily through the largest firms. We first document a novel stylized fact: larger French firms are significantly more sensitive to foreign GDP growth. We then implement a quantitative framework calibrated to the full extent of observed heterogeneity in firm size, exporting, and importing. We simulate the propagation of foreign shocks to the French economy and report one micro and one macro finding. At the micro level heterogeneity across firms predominates: 40 to 85% of the impact of foreign fluctuations on French GDP is accounted for by the “foreign granular residual” — the term capturing the fact that larger firms are more affected by the foreign shocks. At the macro level, firm heterogeneity dampens the impact of foreign shocks, with the GDP responses 10 to 20% larger in a representative firm model compared to the baseline model.
    JEL: E32 F15 F23 F44 F62 L14
    Date: 2020–11
  6. By: Jann Lay; Tevin Tafese
    Abstract: Using a firm-level panel dataset on private small- and medium-sized enterprises (SMEs) in Viet Nam's manufacturing sector, this paper examines productivity dynamics of formal and informal firms. We decompose productivity changes into changes within and between formal and informal firms. We assess the contributions of firm entry and exit as well as informal-formal transitions. Our results show that productivity is considerably lower and misallocation more prevalent in the informal than in the formal sector.
    Keywords: formalization, Productivity, Firm productivity, Viet Nam, Misallocation
    Date: 2020
  7. By: Inma Martínez-Zarzoso (University of Göttingen); Shampa Roy-Mukherjee (University of East London); Finn-Ole Semrau (IFW, Kiel Institute for the World Economy); Anca M. Voicu (Rollins College)
    Abstract: This paper uses data for Indian firms over the period 1987 to 2016 to estimate a panel data model that considers firm heterogeneity to estimate the relationship between energy intensity and internationalization strategies of the firm. Both, the extensive and intensive margins of exports are considered as explanatory factors of energy intensity together with a number of control variables including estimated total factor productivity, foreign ownership, size and innovation activities. The main results indicate that exporters are more energy efficient than non-exporters and that there is heterogeneity between industries. More energy-intensity industries present a higher reduction in energy intensity for exporters in comparison to non-exporters.
    Keywords: Indian firms; energy intensity; exporting firms; trade liberalization; panel data
    Date: 2020
  8. By: Carlsson, Bo (Case Western Reserve University)
    Abstract: How do you design an organization, an innovation system made up of multiple organizations, or a whole economy to encourage entrepreneurial experimentation? We know a good deal about entrepreneurial experimentation when it comes to individuals and firms (organizations), much less concerning innovation systems and even less for whole economies. The purpose of the paper is (1) to briefly examine the organization of entrepreneurial activity at three of the world’s largest and most innovative companies (Amazon, Apple, and Google), and (2) to explore the extent to which the findings at the corporate level can be applied at the more general innovation system (meso) and economy (macro) levels.
    Keywords: Experimentation; organization; innovation
    JEL: L22 L26 O31 O32 O33
    Date: 2020–12–10
  9. By: Michael J. Andrews; Aaron Chatterji; Scott Stern
    Abstract: This is an introduction to the forthcoming volume "The Role of Innovation and Entrepreneurship in Economic Growth." The chapters collected in this volume seek to answer the following questions: What is the relationship between innovation/entrepreneurship and economic growth in specific industrial sectors? How has the relationship between innovation /entrepreneurship and economic growth changed over time? How much do policies, programs, and specialized institutions meant to encourage innovation or entrepreneurship ultimately spur economic growth? Does innovation or entrepreneurship affect economic performance and social progress other than through measured productivity and economic growth, and if so, how can these effects be measured? We synthesize the chapters in this volume and present broad conclusions.
    JEL: O3 O4
    Date: 2020–11
  10. By: Pushkareva, Lyudmila; Pushkarev, Mikhail
    Abstract: Innovation activity at an industrial enterprise is a set of conditions affecting the relationship of the interaction of the business structure with other business entities and the state. The environment of innovative activity at the enterprise is variable, heterogeneous, dependent on many positive or negative factors acting on it. The ratio of these factors makes the environment either favorable, i.e. conducive to the implementation of entrepreneurial innovative ideas or adverse (risky) for the normal development of innovation. In the coming years, the structure of sources of financing technological innovation in industry will not change significantly, therefore it is important to create such conditions for organizations so that they can finance innovation in the future. In this significant role belongs to taxes. There are a number of articles in the Tax Code, a slight change of which will create a more favorable climate for innovation. In some cases, it is important for a taxpayer to receive a deferral or installment plan for a tax payment. Investment tax credit also represents a deferred payment; it can be granted to organizations that perform R&D; either technical re-equipment of own production; or carry out innovative or innovative activities, including creating new or improving applied technologies, etc.
    Keywords: Innovative activity; taxation.
    JEL: H2
    Date: 2020–05–05
  11. By: Patrick Kaczmarczyk (Centre d'études européennes et de politique comparée)
    Abstract: La définition de différents modèles de croissance est la dernière innovation produite par la recherche comparative sur le capitalisme (CC). Toutefois, cette dernière explique mal tant la dynamique interne des modèles de croissance que leurs interdépendances. Cette limite tient pour partie à une conceptualisation inadéquate des firmes multinationales (FMN). Je présente ici un travail empirique montrant l’empreinte du capital international sur l’économie mondialisée. L’inclusion des FMN comme variable explicative permet alors une meilleure compréhension des résultats économiques. Je conclus par les implications d’une meilleure prise en compte des FMN pour la littérature sur les modèles de croissance.
    Keywords: Institutions and the macroeconomy; International business; Multinational firms; Political economy; Économie politique; Entreprises internationales; Firmes multinationales; Institutions et macro-économie
    Date: 2020
  12. By: Solikin M. Juhro (Bank Indonesia); A. Farid Aulia (Bank Indonesia); Dessy Aliandrina (Bank Indonesia); Donni Hadiwaluyo (Bank Indonesia); Edo Lavika (Bank Indonesia)
    Abstract: We analyze the impact of a catalytic collaboration as a tool on the leverage of transformational leadership competencies to generate a sustainable innovation by developing a Sustainable Innovation Matrix (SIM) leadership model. We observe it by employing a unique data set of the behaviors of fifty regional heads (mayors and regents) in Indonesia. The results of the analysis show us that the transformational leaders who made a catalytic collaboration have proven able to create significant impacts on their regions. The leaders with good transformational leadership competencies who make a catalytic collaboration can generate innovations that not only create relevant impacts on the needs of their regions, but they were also sustainable in terms of economic and environmental aspects. The results also suggest that leaders must be courageous to make innovation and strongly care for their regional development despite limited resources there. In doing so, those leaders must collaborate catalytically with other parties to optimize all available opportunities for the progress of the regions that they lead.
    Keywords: Transformational Leadership, Catalytic Collaboration, Sustainable Innovation, Leadership Model
    Date: 2019
  13. By: Chiara Bocci; Annalisa Caloffi; Marco Mariani; Alessandro Sterlacchini
    Abstract: We conduct an extensive meta-regression analysis of counterfactual programme evaluations from Italy, considering both published and grey literature on enterprise and innovation policies. We specify a multilevel model for the probability of finding positive effect estimates, also assessing correlation possibly induced by co-authorship networks. We find that the probability of positive effects is considerable, especially for weaker firms and outcomes that are directly targeted by public programmes. However, these policies are less likely to trigger change in the long run.
    Date: 2020–06
  14. By: Yoann Queyroi (CREG - Centre de recherche et d'études en gestion - UPPA - Université de Pau et des Pays de l'Adour); David Carassus (CREG - Centre de recherche et d'études en gestion - UPPA - Université de Pau et des Pays de l'Adour); Benjamin Dreveton (CEREGE - CEntre de REcherche en GEstion - EA 1722 - Université de Poitiers - ULR - Université de La Rochelle - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers); Pierre Marin (CREG - Centre de recherche et d'études en gestion - UPPA - Université de Pau et des Pays de l'Adour)
    Abstract: SYMPOSIUM 2020 « Un demi-siècle de réformes administratives : quels effets sur la gouvernance des organisations de l'État ? » Axe 4 L'appropriation d'une innovation managériale dans le contexte local : le cas de la certification qualité
    Date: 2020–04–16
  15. By: Anne-Célia Disdier (PSE - Paris School of Economics); Carl Gaigné (SMART - Structures et Marché Agricoles, Ressources et Territoires - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Cristina Herghelegiu (ULB - Université libre de Bruxelles)
    Abstract: We examine whether standards raise the quality of traded products by correcting mar-ket failures associated with information asymmetry on product attributes. Our predictionson their quality and selection effects are based on a new trade model under uncertaintyabout product quality in which heterogeneous firms can strategically invest in quality sig-naling. Using French firm-level data, we exploit information on prices and productivity toestimate the quality of exported products. Higher quality is assigned to products suppliedby an exporter with higher marginal costs conditional on productivity. In accordance withour theory, quality standards enforced on products by destination countries (i) reduce theexport probability of low-quality firms but also that of high-quality low-productivity firms;(ii) increase the export participation and sales of high-productivity high-quality firms; (iii)improve the average quality of consumption goods exported by France.
    Keywords: Firm exports,quality standards,information asymmetry,product quality
    Date: 2020–01–08
  16. By: Manon Enjolras (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Mauricio Camargo (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Christophe Schmitt (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)
    Abstract: A large number of studies have demonstrated the strong influence of and correlation between innovation and export activities as key factors of the firm's competitiveness. However, these two activities have usually been considered independently of each other in terms of management and support. This paper relies on the characterization of a conceptual innovation/export common space representing the synergistic effects between these two activities. A hybrid AHP/Flowsort MCDM-methodology is proposed in order to model this common space through the evaluation of a framework of joint practices related simultaneously to the innovation and export capabilities of SMEs. The relevance of this methodology is tested through the design of a decision-making tool applied to a French exporting and innovative SME. This case study opens up further research perspectives and points to areas for improvement in the evaluation of SMEs' capabilities.
    Keywords: SMEs,Innovation,Export,Synergies,Multicriteria analysis,Decision-Making,AHP,Flowsort
    Date: 2020–10–22
  17. By: Stéphane Koffel (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine); Jonathan Labbé (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)
    Date: 2020–11–11
  18. By: Florian Léon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Abstract: The purpose of this paper is to assess the importance of external shocks relative to internal characteristics in explaining variation of firm growth in developing countries. To do so, we compile firm-level panel data covering 12,562 firms operating in 72 low-income and middle-income countries. Our statistical analysis reveals that, on average, firm characteristics account for a half of difference in growth rate across firms. However, the importance of internal factors is halved when we exclude firms in the tails of the distribution (top performers and worst performers). On the other hand, external shocks account for less than one tenth of variance. The role of external shocks is, however, stronger for young firms and for firms operating in unstable environments. Finally, our findings suggest that the external context is more crucial for exit than for growth.
    Keywords: Firm growth,Developing countries,Firm characteristics,External shocks
    Date: 2020–11–13
  19. By: Mendez, Carlos; Gonzales, Erick
    Abstract: Using a novel municipal-level dataset and spatial clustering methods, this article studies the distribution of human capital constraints across 339 municipalities in Bolivia. In particular, the spatial distribution of five human capital constraints are evaluated: chronic malnutrition in children, non-Spanish speaking population, secondary dropout rates of males, secondary dropout rates of females, and the inequality of years of education. Through the lens of both spatial dependence and regionalization frameworks, the municipalities of Bolivia are endogenously classified according to both their level of human capital constraints and their locational similarity. Results from the spatial dependence analysis indicate the location of hotspots (high-value clusters), coldspots (low-value clusters), and spatial outliers for each of the previously listed constraints. Results from the regionalization analysis indicate that Bolivia can be regionalized into six to seven geographical locations that face similar constraints in the accumulation of human capital. The article concludes by highlighting the usefulness of spatial data analysis for designing and monitoring human development goals.
    Keywords: Human capital, Spatial dependence, Regionalization, Cluster analysis, Bolivia
    JEL: C38 J24 R10
    Date: 2020–11–15
  20. By: Joël Cariolle (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); David Carroll (Friedman School of Nutrition Science and Policy [Boston, MA, USA] - Tufts University School of Medicine [Boston])
    Abstract: This report is an attempt to deepen the comprehension of the past, current and forthcoming transformations induced by the diffusion of digital technologies among African small and medium enterprises (SMEs).
    Date: 2020–09–30

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