nep-sbm New Economics Papers
on Small Business Management
Issue of 2021‒10‒18
thirteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Interaction of Schumpeterian Institutional Entrepreneurship and Hayekian Institutional Change in Innovative Industries By Henrekson, Magnus; Lakomaa, Erik; Sanandaji, Tino
  2. Foreign Trade, Education And Innovative Performance: A Multilevel Analysis By Aysan, Ahmet Faruk; Castillo-Téllez, Luis Carlos; Demirbaş, Dilek; Disli, Mustafa
  3. Benefits of internationalisation for acquirers and targets - But unevenly distributed By Frey, Rainer; Goldbach, Stefan
  4. Development of a model for monitoring the needs for innovation in furniture enterprises in Bulgaria By Popova-Terziyska, Radostina; Neykov, Nikolay; Georgieva, Daniela
  5. Co-Creation Strategy, New Challenges in Entrepreneurship Education By DIF Aicha
  6. Institutions and the productivity challenge for European regions By Rodríguez-Pose, Andrés
  7. The granular economy of Kazakhstan By Jozef Konings; Galiya Sagyndykova; Venkat Subramanian; Astrid Volckaert
  8. Productivity Growth and Capital Deepening in the Fourth Industrial Revolution By Martin Fleming
  9. Entrepreneurial Accessibility, Eudaimonic Well-Being, and Inequality By Boudreaux, Christopher J.; Elert, Niklas; Henrekson, Magnus; Lucas, David S.
  10. What role for multi-stakeholder partnerships in adaptation to climate change? Experiences from private sector adaptation in Kenya By Gannon, Kate; Crick, Florence; Atela, Joanes; Conway, Declan
  11. Role of Beliefs About Firm Profits and Image in Firm Recycling Behavior: Evidence from Georgia Horticultural Firms By Florkowski, Wojciech J.; Nouve, Yawotse
  12. Neither True-friend nor Fairweather friend: Relationship Banking and SME borrowing under Covid-19 By Zhao, Tianshu; Matthews, Kent; Munday, Max
  13. A Brief Comparison of Most Prominent Crowdfunding Platforms in Turkey and USA By Uzuntepe, Beren

  1. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Lakomaa, Erik (Institute for Economic and Business History Research (EHFF)); Sanandaji, Tino (Institute for Economic and Business History Research (EHFF))
    Abstract: Innovation often takes place in entrepreneurial ecosystems. We use the history of the Silicon Valley venture capital model and the Hollywood motion picture industry to illustrate how specialized institutions that regulate these entrepreneurial ecosystems emerged through actions by business entrepreneurs, rather than being designed by policymakers. Schumpeterian entrepreneurs not only create new companies; they also create new institutions as an integral part of the restructuring process. At times, efforts of identifiable entrepreneurs are crucial, while in other instances institutional change results from a Hayekian process of emergence fueled by business entrepreneurs’ efforts. Some institutions remain informal, whereas others become formalized. The greater room to forge institutions through business practices may in part account for the higher rates of entrepreneurship observed in common law countries.
    Keywords: Entrepreneurship policy; High-impact entrepreneurship; Innovation; Institutional entrepreneurship; Schumpeterian entrepreneurship
    JEL: L26 M13 O31 P14
    Date: 2021–10–12
  2. By: Aysan, Ahmet Faruk; Castillo-Téllez, Luis Carlos; Demirbaş, Dilek; Disli, Mustafa
    Abstract: This research analyses the innovative performance of 5273 companies across 64 different economic sectors and 32 different regions in Colombia. We assess the different effects on the innovative performance of firms by analyzing firm, sector, and regional level determinants. The study involves the multilevel approach of the innovation process considering the structure and behavior of innovation systems in developing countries. We furthermore focus on technology transfer from foreign trade and the role of education in the process of innovation. We find that education and open economy variables have a significant relationship with innovation performance at the firm and regional levels.
    Keywords: Multilevel, Innovative Performance, Open Economy Variables, Innovation Systems, Multilevel Regression Models, Development.
    JEL: A1 A2 O24
    Date: 2021–05–05
  3. By: Frey, Rainer; Goldbach, Stefan
    Abstract: In some countries around the world, the advantages of globalisation have been increasingly called into question recently. In particular, takeovers by foreign firms raise suspicions of technology theft and job cuts at the newly acquired local plant. By looking at Germany, as a large open economy, between 1999 and 2018 we first see that both German firms that are acquired by foreign investors and German firms which invest abroad show similar characteristics: they are on average larger, more innovative and productive, but less profitable than purely national firms. With internationalisation, a variety of positive effects emerge. With respect to takeovers of German companies by foreign investors, the productivity and sales of the German affiliate increase while the foreign owners tend to step up expenditure on the labour force in Germany in the aftermath of the acquisition - compared to purely domestically owned firms. In the case of German firms going international, we find positive productivity and sales effects for relatively small companies investing abroad, and this internationalisation is not to the detriment of the domestic labour force. Thus, all in all, this supports a positive view of globalisation. However not all firms benefit: in particular, sector, firm size and time horizon have a bearing on the outcome.
    Keywords: globalisation,firm acquisition,M&A,productivity,sales,innovativeness,know-how,technology,labour costs,employment,wages,firm heterogeneity
    JEL: D22 D24 F23 G34
    Date: 2021
  4. By: Popova-Terziyska, Radostina; Neykov, Nikolay; Georgieva, Daniela
    Abstract: There is a variety of methods for assessing and modelling the innovation factors that are presented in the specialized literature. However, out of the scope of those analyses is the use of the “First Alert” or the “signal line” approach. Through it the enterprises can analyze their need for innovation activities and the extent to which those innovations are needed. The main goal of the present study is to develop and analyze to use of a to make a decision whenever Bulgarian furniture enterprises have to implement innovation. The applied research methods are based on the logical, deductive, and comparative methods, as well as the “signal line” approach. This study proposes for the first time the use of a pan-European revenue regression curve and the number of innovative enterprises. The results show that the innovation activities must be, first of all, focused on the staff and then on the assets that the entity possesses and use. The results of the study support the development of the literature by presenting a more in-depth analysis of the possible ways to use the national statistical institute data for planning the innovation activities by furniture enterprises
    Keywords: innovation, furniture enterprises, modelling for monitoring
    JEL: M10 O30
    Date: 2021–06
  5. By: DIF Aicha (Dr, ISTA, University of Oran 1 Ahmed Ben Bella, Oran, Algeria. Member at Laboratory LAREEM 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 - Co-creation in entrepreneurship education is related to the teacher's ability to innovate and develop new practice among the student-teacher relationship; it is also a new way to enhance creativity and student value creation. In this approach, the teacher is considered the first actor of co-creation; he creates value among co-teaching, he is a facilitator for the launch of a start-up, and he is at the core of the entrepreneurial ecosystem. Thus, teaching with value co-creation, as we define, is a learning process that combines co-creation as a venture creation tool and provides personalised support for business plan competition. In the higher education system, innovation is an indicator of quality in teaching in all discipline. For entrepreneurship education, innovation with co-creation is a pedagogical practice based on project learning experimentation. This practice is efficient when it creates value for the learner in a co-creation process that combines knowledge sharing between the stakeholders. However, selecting the appropriate pedagogical practice is a curial element in the skills development in entrepreneurship education. Indeed, using co-creation as co-teaching implicates a pre-selection of the participant. Methodology - In this study, the author uses a qualitative analysis method of interviews made with teachers implicated in a co-creation approach and students who had participated in start-up competition. The sample was selected based on (Science, Technology, Engineering and Mathematics) STEM student entrepreneur experience. Results and findings - In achieving the objective of this paper, which is to understand the use of co-creation as an innovative pedagogical practice in the area of entrepreneurship education. The results show the value creation of co-creation as a co-teaching practice and a challenging tool of enhancing entrepreneurial spirit. Type of Paper - Empirical"
    Keywords: Co-Creation; Entrepreneurship Education; Co-Teaching.
    JEL: M31 E24 I29
    Date: 2021–09–30
  6. By: Rodríguez-Pose, Andrés
    Abstract: Europe has witnessed a considerable labour productivity slowdown in recent decades. Many potential explanations have been proposed to address this productivity ‘puzzle’. However, how the quality of local institutions influences labour productivity has been overlooked by the literature. This article addresses this gap by evaluating how institutional quality affects labour productivity growth and, particularly, its determinants at the regional level during the period 2003–2015. The results indicate that institutional quality influences regions’ labour productivity growth both directly—as improvements in institutional quality drive productivity growth—and indirectly—as the short- and long-run returns of human capital and innovation on labour productivity growth are affected by regional variations in institutional quality.
    Keywords: Labour productivity; institutional quality; physical capital; human capital; innovation; regions; Europe; OUP deal
    JEL: R14 J01 N0
    Date: 2021–06–10
  7. By: Jozef Konings (Nazarbayev University, Graduate School of Business); Galiya Sagyndykova (Nazarbayev University, Department of Economics); Venkat Subramanian (Nazarbayev University, Graduate School of Business); Astrid Volckaert (KU Leuven, Faculteit Economie en Bedrijfswetenschappen, Vlaams Instituut voor Economie en Samenleving (VIVES))
    Abstract: This paper analyzes the importance of idiosyncratic firm specific shocks for explaining macroeconomic fluctuations in an emerging economy. To this end, we use detailed quarterly firm level data to document that the firm size distribution is fat-tailed and that idiosyncratic shocks of the largest 30 firms appear to explain nearly 80% of the growth in aggregate total factor productivity. This confirms earlier research for the U.S. of the "granular hypothesis" (Gabaix, 2011). Thus individual firm shocks do not average out in the aggregate as is assumed in most of the macroeconomic literature, instead, macroeconomic questions can be answered by analyzing the behavior of the largest firms.
    Keywords: granularity, firm heterogeneity, aggregate fluctuations, Total Factor Productivity, transitional economies
    JEL: D24 E23 E32 L16 L25 P27
    Date: 2021–10
  8. By: Martin Fleming (The Productivity Institute, The University of Manchester)
    Keywords: industrial revolution, productivity, industry 4.0, capital deepening, technological innovation, creative destruction
    Date: 2021–09
  9. By: Boudreaux, Christopher J. (Florida Atlantic University, United States); Elert, Niklas (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)); Lucas, David S. (Syracuse University, United States)
    Abstract: Amidst considerable debate on the relationship between entrepreneurship and economic inequality, scholarship only indirectly addresses how entrepreneurship informs individuals’ relative well-being. We theorize on the nuanced relationship between entrepreneurship and equality of eudaimonic well-being through the lens of New Institutional Economics. Drawing on theories of human flourishing, we suggest that entrepreneurial action is an underappreciated mechanism by which individuals pursue well-being. Equality of well-being is thus influenced by a society’s entrepreneurial accessibility: the freedom of individuals to choose to engage in entrepreneurial action. We present a multilevel framework in which institutional factors enable entrepreneurial action by promoting entrepreneurial accessibility—a factor, that, in turn, affects well-being for individual entrepreneurs as well as societal eudaimonic equality. The ex ante conditions for equality of well-being entail institutions that yield broad entrepreneurial accessibility. Our work highlights the institutional prerequisites for human flourishing in the entrepreneurial society beyond (unequal) economic distributions.
    Keywords: Inequality; Entrepreneurship; Well-being; Institutions; Eudaimonia
    JEL: D31 D63 I30 L26 O43
    Date: 2021–10–13
  10. By: Gannon, Kate; Crick, Florence; Atela, Joanes; Conway, Declan
    Abstract: Amidst increasing interest in multi-stakeholder partnerships (MSPs) in climate discourse, this paper identifies four rationales for why MSPs may be particularly suited to supporting adaptation from existing literatures. With a focus on MSPs that seek to support adaptation among micro, small and medium enterprises (SMEs) in Kenya, we then investigate the extent to which this potential is being realised in practice, through interviews with partners engaged in the design and implementation of MSPs. This allows us to examine some of the opportunities, challenges and distributional risks that may result from employing MSPs to support adaptation. We find that through action and investment from donors and the public sector in areas such as research, data access, relationship building, training and capacity building, access to finance and business incubation, MSPs can enable a wide range of private sector actors to deliver adaptation resources to SMEs. Beneficiaries include small-scale SMEs in agricultural value chains in remote regions, that could otherwise fall outside of market inclusion. As such, respondents in this research typically considered MSPs to present an exciting opportunity to plug gaps in adaptation and development finance. Further analysis, however, suggests that dependence on market mechanisms for delivering adaptation resources means that MSPs risk excluding the poorest groups, exposing businesses to new risks and reproducing existing inequalities. Additionally, MSPs often remain heavily dependent on donor-led organisations for both resources and momentum. In Kenya, opportunities to develop more integrated responses to supporting the adaptive capacity of SMEs are being missed through a disconnect between the practice of MSPs and national public sector development frameworks and institutions.
    Keywords: multi-stakeholder partnerships / multi-sectoral partnerships; climate change adaptation; micro; small and 35 medium enterprises (SMEs); private sector adaptation; business enabling environments; Kenya; Business enabling environments; Multi-stakeholder partnerships / multi-sectoral partnerships; Private sector adaptation; Micro; small and medium enterprise (SMEs); Climate change adaptation; ES/K006576/1; 107643-004; UKRI block grant
    JEL: R14 J01
    Date: 2021–05–10
  11. By: Florkowski, Wojciech J.; Nouve, Yawotse
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Agribusiness
    Date: 2021–08
  12. By: Zhao, Tianshu; Matthews, Kent (Cardiff Business School); Munday, Max
    Abstract: A growing literature addresses the costs and benefits associated with relationship banking, particularly for smaller firms, but with much of this work focused on normal trading conditions. Covid-19 provides an ideal testbed to explore the resilience of relationship banking. We examine whether the presence of closer pre-Covid ties between SMEs and their banks helps in accessing funds in the Covid-19 pandemic period. Then are ties between relationship bankers and SME borrowers a case of ‘true love’ or rather are the parties more akin to ‘fair-weather friends’? Data from the UK SME Finance Monitor from 2018Q2-2020Q3 is used to examine this question. Our analysis suggests that relationship banking was important for the acquisition of bank credit pre-Covid-19 but was of limited influence in post-Covid-19 lending behaviour. Banks treated SMEs that had a good relationship with them in the same way as those that did not and with public interventions to support lenders material in this.
    Keywords: Covid-19, Relationship Banking, SMEs
    JEL: G21 G28 G40
    Date: 2021–10
  13. By: Uzuntepe, Beren
    Abstract: Emerging and gaining significance due to the widespread use of the Internet and the power of social media, crowdfunding, via crowdfunding platforms, provides entrepreneurs with creative business ideas with the opportunity to reach extensive masses and to be able to directly access the financial resources that their projects require. Even though the interest in crowdfunding rises, the literature seems to lack enough research about these platforms. Addressing the platforms that bring together the entrepreneurs and the backers, this research aims to compare the reward-based crowdfunding platforms operating in Turkey with the international crowdfunding platforms. Containing the categories of technology and movie/video, this research discusses the differences between the most prominent crowdfunding platforms in the two countries. The findings of the research constitute importance due to the fact that it shows the way to the entrepreneurs, crowdfunding platforms, and backers while making their decisions, encourages participation in the campaigns, and sheds light on other studies about the subject.
    Keywords: Keywords: Crowdfunding, Entrepreneurial Finance, Online Platform, Reward Based Crowdfunding, KIA
    JEL: G2 G24 G3 G32 L2 L26 M1 M13 O3 O30 O34 P3 P34 P35
    Date: 2021

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