nep-sbm New Economics Papers
on Small Business Management
Issue of 2022‒05‒09
thirteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Patent disputes as emerging barriers to technology entry? Empirical evidence from patent opposition By Arianna Martinelli; Julia Mazzei; Daniele Moschella
  2. State capital involvement, managerial sentiment and firm innovation performance Evidence from China By Xiangtai Zuo
  3. Survival Strategies under Sanctions: Firm-Level Evidence from Iran By Iman Cheratian; Saleh Goltabar; Mohammad Reza Farzanegan
  4. The low productivity of European firms- how can policies enhance the allocation of resources? By Grégory Claeys; Marie Le Mouel; Giovanni Sgaravatti
  5. Effestiveness and efficiency criteria for strategic application of mechatronics in business processes By Mindaugas Laužikas; Aistė Miliūtė; Viltė Morozovaitė; Danielius Karpičius
  6. Improving Entrepreneurs’ Digital Skills and Firms’ Digital Competencies through Business Apps Training: A Study of Small Firms By Drydakis, Nick
  7. Industries, Mega Firms, and Increasing Inequality By Haltiwanger, John C.; Hyatt, Henry R.; Spletzer, James R.
  8. Technology and jobs: A systematic literature review By Kerstin H\"otte; Melline Somers; Angelos Theodorakopoulos
  9. Rethinking Entrepreneurship within the Informal Sector in Morocco in the Post-Covid-19 era: For a Prospective Approach to Integrative Formalization By L Alla; E Jaouhari; Badr Bentalha
  10. Small and medium enterprises in regions - empirical and quantitative approach By Ladislav Mura; Zuzana Hajduová
  11. Productivity Analysis of Latvian Companies Using Orbis Database By Olegs Krasnopjorovs; Konstantins Kovalovs
  12. Business environment analysis based on the Doing Business: case study Slovakia By Michal Fabuš; Tomáš Dudáš; Eva Cihelková
  13. Productivity and Business Dynamism in Japan — Comparison with the EU Countries Using Firm-level Data (Japanese) By MIYAKAWA Daisuke; TAKIZAWA Miho

  1. By: Arianna Martinelli; Julia Mazzei; Daniele Moschella
    Abstract: The recent surge of patent disputes plays an important role in discouraging firms from entering new technology domains (TDs). Using a large-scale dataset combining data from the EPO-PATSTAT database and ORBIS-IP and containing patents applied at EPO between 2000 and 2015, we construct a new measure of litigiousness using patent opposition data. We find that the degree of litigiousness and the density of patent thickets negatively affect the likelihood of firms entering new TDs. Across technologies, the frequency of oppositions discourages firms mostly in high-tech industries. Across firms, the risk of opposition falls disproportionately on small rather than large firms. Finally, for large firms, we observe a sort of learning-by-being-opposed effect. This evidence suggests that litigiousness and hold-up potential discourage firms from entering new TDs, shaping Schumpeterian patterns of innovation characterized by a stable number of large-established firms and a lower degree of turbulence.
    Keywords: Patent opposition; Technological entry; Innovation Strategies.
    Date: 2022–05–02
  2. By: Xiangtai Zuo (Shutter Zor)
    Abstract: In recent years, more and more state-owned enterprises (SOEs) have been embedded in the restructuring and governance of private enterprises through equity participation, providing a more advantageous environment for private enterprises in financing and innovation. However, there is a lack of knowledge about the underlying mechanisms of SOE intervention on corporate innovation performance. Hence, in this study, we investigated the association of state capital intervention with innovation performance, meanwhile further investigated the potential mediating and moderating role of managerial sentiment and financing constraints, respectively, using all listed non-ST firms from 2010 to 2020 as the sample. The results revealed two main findings: 1) state capital intervention would increase innovation performance through managerial sentiment; 2) financing constraints would moderate the effect of state capital intervention on firms' innovation performance.
    Date: 2022–04
  3. By: Iman Cheratian; Saleh Goltabar; Mohammad Reza Farzanegan
    Abstract: Given the importance of firm strategic management in time of crises, this study investigates Micro, Small, and Medium Enterprises (MSMEs) survival strategies during the international sanctions against Iran. Using data from a questionnaire of 486 firms between December 2019 to September 2020, we found that firm strategies in reducing research and development (R&D) expenditures, marketing costs, and fixed/overhead costs and investing in information technology (IT) are positively related to their survivability. Conversely, managerial decisions to “reduce production” and “staff pay cut/freeze” have negative and significant impacts on a firm’s ability to survive during sanctions. Moreover, micro firms are more resilient than their small and medium counterparts. The findings also confirm that age has a significant and positive impact on firm survival. Finally, the results show that having a business plan, access to finance and technology, owner education, export orientation, business networking and consulting services are the key drivers of withstanding the pressure from sanctions.
    Keywords: crisis, recession, sanction, survival strategies, firm, Iran
    JEL: F51 M13 L25 L26
    Date: 2022
  4. By: Grégory Claeys; Marie Le Mouel; Giovanni Sgaravatti
    Abstract: This Working Paper is an output from the MICROPROD project, which received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 822390. This paper summarises the most important policy lessons from the research undertaken in the MICROPROD project, work package 4, related to the allocation of the factors of production, with a special focus on the weak dynamism of European small and medium-sized enterprises...
    Date: 2022–04
  5. By: Mindaugas Laužikas (GILE Experts Limited, Vilnius University Business School); Aistė Miliūtė (Vilnius University Business School); Viltė Morozovaitė (Vilnius University Business School); Danielius Karpičius (Vilnius University Business School)
    Abstract: The present paper is centred on the effects of mechatronics in both high-tech and technologically less intensive firms. The strategy of innovation implementation in the mechatronics industry is tackled from both the high-tech business development perspective and the mechatronics product application perspective in other industries. Although the scientific and statistics literature with regards to the modern technology's effects is well established, the scarcity of scientific research in the field of the application of mechatronics/robotics in business makes this topic of significant scientific value. The purpose of this paper is to examine the effectiveness and efficiency criteria for the strategic application of mechatronics in businesses, related to both the decision-making process at the top-management level as well as choosing, applying, and monitoring the success of mechatronics among institutional clients. Given that mechatronics' application efficiency depends on a business model and the innovation culture, a focus on two categories of companies in terms of technological intensity could help businesses to choose the right high-tech product and the proper corresponding innovation commercialization model. Moreover, the paper could serve mechatronics firms while implementing the product/service or process innovations that are closer to consumer needs or specific industry challenges. Qualitative semi-structured expert interviews with four IT and four textile managers were conducted, and the conceptual model (which derives from the literature review) was tested. The choice of Lithuania as a target market for the analysed companies is related to the transition of this Baltic economy from the efficiency to the innovation-driven category, where the combination of high and low tech may be able to intensify the innovation process as well as to answer the research question of how to unlock the potential of mechatronics in business processes.
    Keywords: entrepreneurship,mechatronics,business intelligence,efficiency-driven countries,innovation-driven countries,business processes,effects,high-tech,technological intensity
    Date: 2021–09–30
  6. By: Drydakis, Nick
    Abstract: The lack of awareness of digital services and outcomes is a concern in business environments since small firms need to improve their digital competencies. The present exploratory study investigated whether business apps training was associated with entrepreneurs' and firms' digital advancements. The business apps training was offered to migrant entrepreneurs running small firms in Athens (Greece) over three months, with data collected before and after the training. The analysis revealed that business apps training was positively associated with entrepreneurs' attitudes toward technology, willingness to change (relating to technology/skills/operations), and internet/digital skills, as well as increased use of business apps. Moreover, the training was positively associated with firms' digital competencies related to communication, networking, social media, customer relationship management, payments, accounting and finance, and project management operations. Furthermore, the business apps training was positively associated with migrant entrepreneurs' integration into Greek society. Given the increased number of migrants in Europe, factors that positively impact their entrepreneurship and integration merit consideration. The study provides researchers with a systematic method for evaluating the association between business app training and entrepreneurs' and firms' digital advancements.
    Keywords: Training,Entrepreneurs,Small Firms,Business Apps,Digital Skills,Digital Competencies,Artificial Intelligence,Integration
    JEL: M53 L26 O31 O33
    Date: 2022
  7. By: Haltiwanger, John C. (University of Maryland); Hyatt, Henry R. (U.S. Census Bureau); Spletzer, James R. (U.S. Census Bureau)
    Abstract: Most of the rise in overall earnings inequality is accounted for by rising between-industry dispersion from about ten percent of 4-digit NAICS industries. These thirty industries are in the tails of the earnings distribution, and are clustered especially in high-paying high-tech and low-paying retail sectors. The remaining ninety percent of industries contribute little to between-industry earnings inequality. The rise of employment in mega firms is concentrated in the thirty industries that dominate rising earnings inequality. Among these industries, earnings differentials for the mega firms relative to small firms decline in the low-paying industries but increase in the high-paying industries. We also find that increased sorting and segregation of workers across firms mainly occurs between industries rather than within industries.
    Keywords: inequality, firm size, industry, wage differentials, sorting, segregation, pay premium
    JEL: J31 J21
    Date: 2022–03
  8. By: Kerstin H\"otte; Melline Somers; Angelos Theodorakopoulos
    Abstract: Does technological change destroy or create jobs? New technologies may replace human workers, but can simultaneously create jobs if workers are needed to use these technologies or if new economic activities emerge. Furthermore, technology-driven productivity growth may increase disposable income, stimulating a demand-induced expansion of employment. To synthesize the existing knowledge on this question, we systematically review the empirical literature on the past four decades of technological change and its impact on employment, distinguishing between five broad technology categories (ICT, Robots, Innovation, TFP-style, Other). Overall, we find across studies that the labor-displacing effect of technology appears to be more than offset by compensating mechanisms that create or reinstate labor. This holds for most types of technology, suggesting that previous anxieties over widespread technology-driven unemployment lack an empirical base, at least so far. Nevertheless, low-skill, production, and manufacturing workers have been adversely affected by technological change, and effective up- and reskilling strategies should remain at the forefront of policy making along with targeted social support systems.
    Date: 2022–04
  9. By: L Alla (ENSAF - École nationale des sciences appliquées de Fès = National School of Applied Sciences of Fez); E Jaouhari (EST Khenifra - Sultan Moulay Sliman University); Badr Bentalha (ENCGF - Ecole Nationale de Commerce et de Gestion De Fès - USMBA - Université Sidi Mohamed Ben Abdellah)
    Abstract: Several studies have led to the conclusion that entrepreneurial dynamics in the sector are more related to a variety of reasons or motivations than to subjective ones. Aside from the illegal sphere of this economy, understanding such dynamics, prompting entrepreneurs to evolve in the informal economy and stimulating their resilience at the edge of the modern economy. With the Covid-19 pandemic, some informal enterprises have demonstrated, more than others, significant capacities for crisis resilience, more creativity and innovation, more organization and networking, yet struggling in a hostile environment and without any state support. How else can the business model of informal sector entrepreneurship be approached to better approach its integrative formalization? This is our research problem. Based on a review of the literature, we first try to identify the concept, the approaches to informal entrepreneurship and the theoretical determinants of entrepreneurial dynamics in the sector by proposing a standard profile. Then, we present the reference models of structuring-formalization of the sector, and propose a theoretical framework, to be refined by contextualization within the framework of the Moroccan economy. The research proposals thus identified will be examined through semi-directive interviews with entrepreneurs operating in the informal sector. The objective of this study is to contribute to a good understanding of the causes of the resilience of these entrepreneurs, the levers to be mobilized to succeed in the formalization process.
    Abstract: Plusieurs travaux ont abouti à ce que la dynamique entrepreneuriale dans le secteur est davantage liée à une panoplie de raisons ou motivations tant que subjective. A part la sphère illégale de cette économie, la compréhension d'une telle dynamique, incitant les entrepreneurs à évoluer dans l'économie informelle et stimulant leur résilience à la lisière de l'économie moderne. Avec la pandémie du Covid-19, certaines entreprises informelles ont fait preuve, plus que d'autres, d'importantes capacités de résistance à la crise, de plus créativité et d'innovation, de plus d'organisation et de réseautage, pourtant aux prises avec un environnement hostile et ne pouvant compter sur aucune aide de l'État. Comment peut-on appréhender autrement le business model de l'entrepreneuriat du secteur informel pour mieux approcher sa formalisation intégrative ? Telle est notre problématique de recherche. A partir d'une revue de littérature, nous tentons d'abord de cerner le concept, les approches de l'entrepreneuriat informel, les déterminants théoriques de la dynamique entrepreneuriale dans le secteur via la proposition d'un profil-type. Ensuite, nous présentons les modèles de référence de structuration-formalisation du secteur, et en proposer une trame théorique, à affiner par contextualisation dans le cadre de l'économie marocaine. Les propositions de recherche ainsi dégagées seront étudiées examinées par des entretiens semidirectifs avec les entrepreneurs opérant dans l'informel. L'objectif de cette étude est de contribuer à la bonne compréhension des causes de la résilience de ces entrepreneurs, les leviers à mobiliser pour réussir le processus de formalisation.
    Keywords: économie informelle,entrepreneuriat informel,résilience informelle,déviance,formalisation
    Date: 2022–01–01
  10. By: Ladislav Mura (Pan-European University); Zuzana Hajduová (University of Economics in Bratislava)
    Abstract: The problem of identifying and quantifying the efficiency of accommodation units is currently a discussed issue. Recognition and identification of the most important aspects that increase the financial efficiency of a rapidly changing business environment, especially in a difficult period of economic and tourism bounce back is a key issue. Only the companies that adequately address the issue of their measurement and evaluation and are able to choose the right approach in this regard will win the competition. Our work focuses on the identification of key factors influencing the management of business entities. We carried out a detailed analysis of accommodation units in selected accommodation facilities at the regional level. We wanted to point out the differences within the individual regions of Slovakia. By applying the DEA method, we used individual models focused on inputs and outputs in order to determine the inefficient units in our research, and revealed its shortcomings and pointed out the way to improve the economic results of these research subjects.
    Keywords: DEA,models,correlation,regions,small and medium enterprises
    Date: 2021–06–30
  11. By: Olegs Krasnopjorovs (LU - University of Latvia); Konstantins Kovalovs (LU - University of Latvia)
    Abstract: This research study uses ORBIS microdata at the company level to analyse productivity of 167 thousand economically active Latvian companies over 2011-2018. The aim of the study is twofold-to find factors consistently associated with productivity at the company level; and to recommend possible criteria for companies to receive a state support (from the view of enhancing aggregate productivity in the long term). Our research results show that productivity of Latvian companies is positively related to their size, age, as well as location closer to Riga and other big cities. However, there is a substantial within-group variation in productivity between companies. Multivariate regression results show that location, size, age and economic sector explain only up to 19% of productivity differences between companies. In addition, distribution of companies by productivity has a positive skewness. This suggests that there is a small number of highly productive companies, while for most companies the productivity is lower than the average. Finally, we propose three criteria for companies to receive a state support: (1) high relative productivity given size, age, sector and location; (2) belonging to a group of companies with a higher probability of survival; (3) carrying out a significant part of economic activity in areas with a high unemployment rate.
    Keywords: productivity,micro data,ORBIS,company size,company age,company location
    Date: 2021–05–14
  12. By: Michal Fabuš (School of Economics and Management of Public Administration in Bratislava); Tomáš Dudáš (Pan-European University); Eva Cihelková (Pan-European University)
    Abstract: Business activity is logically influenced by a certain environment in which it takes place. We call this the business environment. It consists of conditions in a specific country, respectively. specific location. Today, we can also talk about the global business environment. The business environment consists of all entities in the vicinity of the company, which directly or indirectly affect it and interfere with its activities. Every business or person doing business operates in a specific business environment. The business environment should create the conditions for entrepreneurs to pay them start-ups and existing ones to thrive in business, while being able to offer vacancies. Based on the Doing business indicator in this paper, we analyze the development of the business environment in the Slovak Republic for the period 2009 to 2020. The data were used in an international database available online within the data provided by the World Bank. The aim of this paper is to point out the development and analyze the reasons for development trends in the Slovak Republic.
    Keywords: business environment,doing business,Slovak Republic
    Date: 2021–09–30
  13. By: MIYAKAWA Daisuke; TAKIZAWA Miho
    Abstract: How can we evaluate the performance of the Japanese economy in terms of business activities? To answer this question, both the performances of the Japanese economy and that of other countries need to be measured under a common methodology and compared. Furthermore, such comparison should be done based not only on measures of productivity but also on the so-called "measures of business dynamism ". Those measures account for how numerous heterogeneous firms are growing and declining, how market concentrations change, how markups are evolving, and so on. Toward this end, we measure productivity and various determinants of business dynamism for Japanese firms using the "Basic Survey of Japanese Business Structure and Activities" and compare them with those of EU countries (CompNet 8th Vintage firm-level data), based on a common methodology. The comparison of those two sets of results for the period after 2000 reveals that while continuous productivity improvements were observed in several EU countries, productivity growth in Japan has been stagnating over the 2010s. Such improvement in EU countries is accompanied by the increase in allocative efficiency while the allocative efficiency in Japan has been deteriorating. We also find that the decline in capital intensity in Japan is pronounced.
    Date: 2022–03

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