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on Small Business Management |
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Issue of 2022‒08‒15
twenty-one papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Giotopoulos, Ioannis; Kritikos, Alexander S.; Tsakanikas, Aggelos |
| Abstract: | We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis. |
| Keywords: | Small firms,Large firms,R&D,Innovation,Productivity,Long-term Crisis |
| JEL: | L25 L60 O31 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1122&r= |
| By: | MATTI Cristian; RISSOLA Gabriel (European Commission - JRC); MARTINEZ Paolo; BONTOUX Laurent; JOVAL Joan-Marc; SPALAZZI Annalisa; FERNANDEZ Damaris |
| Abstract: | This handbook aims at helping its users to effectively co-create the powerful policies we need today. It combines an entrepreneurial way of thinking and a concrete process for developing breakthrough ideas that stand a high chance of producing real-world impact. It presents a practitioner-oriented narrative for the design and implementation of innovative participatory processes and workshops to address societal challenges – coordinated by policy-makers and with the active engagement of key stakeholders. It applies tried and tested self-organisation and design thinking principles for co-creation. The handbook provides practical steps and recommendations for the identification of synergies among stakeholders across territories, sectors and levels. It shows how to ensure optimal knowledge management and efficient communication to optimise resources use, policy convergence and the achievement of positive results when designing or implementing policy. By combining community engagement and knowledge management services, the handbook highlights how participatory processes can be embedded in the policymaking cycle with a view to improve the societal value of generating collaborative innovation, good will and co-created evidence for informing policymaking. |
| Keywords: | smart specialisation, S3, sustainability, S4, green deal, digital transition, entrepreneurial discovery process, EDP, quadruple helix, QH, 4H, participatory approach, stakeholders engagement, collaboration, co-creation, policy innovation, regional innovation, regional development, urban development, conference of Europe, policy lab, innovation camp |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc128771&r= |
| By: | Xiang Ding; Teresa C. Fort; Stephen J. Redding; Peter K. Schott |
| Abstract: | We document the role of intangible capital in manufacturing firms' substantial contribution to non-manufacturing employment growth from 1977-2019. Exploiting data on firms' “auxiliary” establishments, we develop a novel measure of proprietary in-house knowledge and show that it is associated with increased growth and industry switching. We rationalize this reallocation in a model where irms combine physical and knowledge inputs as complements, and where producing the latter in-house confers a sector-neutral productivity advantage facilitating within-firm structural transformation. Consistent with the model, manufacturing firms with auxiliary employment pivot towards services in response to a plausibly exogenous decline in their physical input prices. |
| Keywords: | structural transformation, professional services, intangible knowledge, economic growth |
| JEL: | D24 L16 O47 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:22-19&r= |
| By: | Sander Sõna; Jaan Masso; Shakshi Sharma; Priit Vahter; Rajesh Sharma |
| Abstract: | This paper investigates which of the core types of innovation can be best predicted based on the website data of firms. In particular, we focus on four distinct key standard types of innovation – product, process, organisational, and marketing innovation in firms. Web-mining of textual data on the websites of firms from Estonia combined with the application of artificial intelligence (AI) methods turned out to be a suitable approach to predict firm-level innovation indicators. The key novel addition to the existing literature is the finding that web-mining is more applicable to predicting marketing innovation than predicting the other three core types of innovation. As AI based models are often black-box in nature, for transparency, we use an explainable AI approach (SHAP - SHapley Additive exPlanations), where we look at the most important words predicting a particular type of innovation. Our models confirm that the marketing innovation indicator from survey data was clearly related to marketing-related terms on the firms' websites. In contrast, the results on the relevant words on websites for other innovation indicators were much less clear. Our analysis concludes that the effectiveness of web-scraping and web-text-based AI approaches in predicting cost-effective, granular and timely firm-level innovation indicators varies according to the type of innovation considered. |
| Keywords: | Innovation, Marketing Innovation, Community Innovation Survey (CIS), Machine learning, Neural network, Explainable AI, SHAP |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mtk:febawb:143&r= |
| By: | Paula Geralda Barbosa Coelho (PPGIT/UFMG); Márcia Siqueira Rapini (CEDEPLAR/UFMG) |
| Abstract: | The paper presents a mapping of the life trajectory of entrepreneurship and innovation of entrepreneurial professors in this area of Information Technology (IT) at the Federal University of Minas Gerais (UFMG), who converted knowledge and scientific assets into wealth. Data collection and qualitative analysis used the roadmapping method, adapted by the author, which was useful to elucidate the main strategies mobilized by entrepreneurial professors and understand how they undertook, innovated, and carried out knowledge and technology transfer (KTT). The results presented in this work demystify the patent as the only channel for the creation and distribution of value in the IT sector and indicate that the use of several TCT channels and various strategies can lead to a considerable creation and distribution of value. |
| Keywords: | Academic entrepreneurship, Entrepreneurial professors, Retrospective roadmapping, Information technology, Knowledge and technology transfer. |
| JEL: | O31 I23 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td642&r= |
| By: | Nicola Grassano (European Commission – JRC); Héctor Hernandez (European Commission – JRC) |
| Abstract: | This policy brief presents preliminary results ahead of the 2022 EU Industrial R&D Investment Scoreboard. It is based on a subsample of companies with available published accounts for the year 2021. |
| Keywords: | R&D investment, Covid-19 Impact, industrial dynamics |
| JEL: | O33 O31 C10 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130014&r= |
| By: | Tom Kemeny; Sergio Petralia; Michael Storper |
| Abstract: | Although technological change is widely credited as driving the last two hundred years of economic growth, its role in shaping patterns of inequality remains under-explored. Drawing parallels across two industrial revolutions in the United States, this paper provides new evidence of a relationship between highly disruptive forms of innovation and spatial inequality. Using the universe of patents granted between 1920 and 2010 by the U.S. Patent and Trademark Office, we identify disruptive innovations through their rapid growth, complementarity with other innovations, and widespread use. We then assign more- and less-disruptive innovations to subnational regions in the geography of the U.S. We document three findings that are new to the literature. First, disruptive innovations exhibit distinctive spatial clustering in phases understood to be those in which industrial revolutions reshape the economy; they are increasingly dispersed in other periods. Second, we discover that the ranks of locations that capture the most disruptive innovation are relatively unstable across industrial revolutions. Third, regression estimates suggest a role for disruptive innovation in regulating overall patterns of spatial output and income inequality |
| Keywords: | technological change; regional development; industrial revolutions; innovation; inequality |
| JEL: | O30 O33 O51 J31 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2211&r= |
| By: | Sévérin Tamwo; Ghislain Stéphane Gandjon Fankem; Dieudonné Taka |
| Abstract: | In this paper, we examine the determinants of the entrepreneurial behaviour of returnees to Cameroon based on original survey data from 2012. Contrary to the existing literature, we focus on the skills received from abroad without omitting the effect of savings. We distinguish between three types of competences related to qualifications. We also differentiate between the probability of starting a business in the primary sector and the probability of starting a business in the tertiary sector. |
| Keywords: | Return migration, Skills, Entrepreneurship, Probit model, Endogeneity, Cameroon |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-75&r= |
| By: | TANSEL, AYSIT |
| Abstract: | Employees’ wellbeing is important to the firms. Analysis of job satisfaction may give insight into various aspect of labor market behavior, such as worker productivity, absenteeism and job turn over. Little empirical work has been done on the relationship between structure of working environment and job satisfaction. This paper investigates the relationship between working environment, firm size and worker job satisfaction. We use a unique data of 28,240 British employees, Workplace Employee Relations Survey. In this data set the employee questionnaire is matched with the employer questionnaire. Four measures of job satisfaction considered are satisfaction with influence over job, satisfaction with amount of pay, satisfaction with sense of achievement and satisfaction with respect from supervisors. They are all negatively related to the firm size implying lower levels of job satisfaction in larger firms. The firm size in return is negatively related to the degree of flexibility in the working environment. The small firms have more flexible work environments. This is the first study that explore the effect of work amenities. We further find that, contrary to the previous results lower levels of job satisfaction in larger firms can not necessarily be attributed to the inflexibility in their structure of working environment. |
| Keywords: | Job Satisfactions, Firm Size, Working Environment, Linked Employer-Employee data, Britain. |
| JEL: | J21 J28 J29 J81 |
| Date: | 2022–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113565&r= |
| By: | Tansel, Aysit |
| Abstract: | Employees' wellbeing is important to the firms. Analysis of job satisfaction may give insight into various aspect of labor market behavior, such as worker productivity, absenteeism and job turn over. Little empirical work has been done on the relationship between structure of working environment and job satisfaction. This paper investigates the relationship between working environment, firm size and worker job satisfaction. We use a unique data of 28,240 British employees, Workplace Employee Relations Survey. In this data set the employee questionnaire is matched with the employer questionnaire. Four measures of job satisfaction considered are satisfaction with influence over job, satisfaction with amount of pay, satisfaction with sense of achievement and satisfaction with respect from supervisors. They are all negatively related to the firm size implying lower levels of job satisfaction in larger firms. The firm size in return is negatively related to the degree of flexibility in the working environment. The small firms have more flexible work environments. This is the first study that explore the effect of work amenities. We further find that, contrary to the previous results lower levels of job satisfaction in larger firms can not necessarily be attributed to the inflexibility in their structure of working environment. |
| Keywords: | Job Satisfactions,Firm Size,Working Environment,Linked Employer-Employee Data,Britain |
| JEL: | J21 J28 J29 J81 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1125&r= |
| By: | Sonja Radas (The Institute of Economics, Zagreb); Bruno Skrinjaric (The Institute of Economics, Zagreb) |
| Abstract: | Studies show that women are very productive employees, but that as business owners, compared to their male counterparts, they run companies that earn less, grow at a lesser rate, and employ a smaller number of employees. One of the explanations for this discrepancy argues that indicators such as sales, turnover or profit do not measure performance adequately because they are dependent on the size of the firm. Since women often make a conscious decision to keep their companies small, these performance measures may not adequately represent women-owned businesses. We study a panel of micro firms across all industries, from three EU countries of comparable size (Croatia, Slovenia, and Slovakia) in the period 2010 – 2019. Results indicate that female-owned firms have higher values of both turnover per asset and value added per asset. Additionally, results suggest that during recession years, female-led firms show a degree of resilience to these adverse effects, and they manage to increase their turnover per asset by 3 to 4 percent on average, compared to male-led firms. We conclude that although women-owned micro firms tend to have less resources compared to men’s, women can create larger output per asset, suggesting capability to combine those resources in a very effective way. |
| Keywords: | women entrepreneurship; firm performance; effectuation effect; recession |
| JEL: | B54 J16 L26 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iez:wpaper:2203&r= |
| By: | TAKAHASHI Hidenori; YAMAKAWA Yasuhiro |
| Abstract: | Although uncertainty is an important concept in entrepreneurship research, its impact on entrepreneurial activity has not been explored. We examine whether, and under what conditions, uncertainty affects entrepreneurial activity. Using data from 52 countries over 16 years, we find no evidence that uncertainty affects entrepreneurial activity. However, we find evidence that potential entrepreneurs start their businesses in uncertain circumstances if institutions are in place that reduce the cost of starting a business. These results suggest that it may not be external factors such as uncertainty that influence potential entrepreneurs’ decisions, but internal factors. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22064&r= |
| By: | Natália Barbosa (Universidade do Minho); Ana Paula faria (Universidade do Minho) |
| Abstract: | Digital technologies have the scope to engender positive effects on productivity at firm and aggregate level. However, empirical evidence and theoretical contributions are ambiguous as mixed findings and diverse explanations have been put forward. We use a rich and representative sample of Portuguese firms over the period 2014-2019 to empirically assess the relationship between digital technologies adoption and productivity. Based on estimations over the entire distribution of firm’s productivity, we find that heterogeneous digital technologies affect differently the dynamics of productivity and the convergence to the frontier. This leads to mixed findings with scope to diverse impact in the aggregate productivity. Moreover, positive and significant effects on productivity require an upgrading on the degree of sophistication and complementarity among digital technologies and benefit from the ability of firms to interact and learn with digitalised peers in the same industry. |
| Keywords: | Digital technologies, Productivity, Spillover effects |
| JEL: | L20 H81 L25 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0162&r= |
| By: | Joana Costa (Universidade de Aveiro); Luís Carvalho (Universidade do Porto) |
| Abstract: | Promoting entrepreneurship has become a government priority worldwide. At the same time, digital technology has been embraced by governmental authorities, particularly focusing on digital infrastructure and online service provision. In this paper, we explore whether there might be a connection between both policy ambitions – notably at the local level. To do so, we empirically assess the relationship between different dimensions of government digitalization and entrepreneurial dynamics, using panel data from 278 Portuguese municipalities between 2014 and 2019, primarily drawn from the Portuguese survey on government ICT deployment (IUTIC) and analyzed through compared regression models. Results suggest an overall positive effect of digital government efforts on entrepreneurship. However, digital openness, a user-focus and transparency initiatives seem to matter more to entrepreneurship than internally-oriented digitalization measures. The results provide evidence of the positive effect of government digitalization on entrepreneurship, suggesting that the digital transition may generate relevant social returns for local economies and thus an additional mechanism for the promotion of smart and sustained growth. |
| Keywords: | e-government, digital transition, entrepreneurship, local government |
| JEL: | H79 L26 M13 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0164&r= |
| By: | Abrardi Laura (DIGEP, Politecnico di Torino, Italy); Grinza Elena (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; CEBRIG Université Libre de Bruxelles; LABORatorio Riccardo Revelli); Manello Alessandro (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS), University of Torino, Italy; IRCrES-CNR); Porta Flavio (Department of Economics, University of Bergamo, Italy) |
| Abstract: | We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers' concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers' concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH. |
| Keywords: | Work From Home (WFH), Teleworking, Agile Working, Smart Working, Organizational Performance, Labor Productivity, Management by Objectives (MBO), COVID-19, Small- and Medium-sized Enterprises (SMEs), Survey Data. |
| JEL: | D23 D24 M54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpapnw:076&r= |
| By: | Schilirò, Daniele |
| Abstract: | Innovation is the key to long-term growth. The starting point of this contribution is Schumpeter's theory of innovation. The relationship between innovation and policies aimed at fostering innovative activity is also discussed. The data of the Global Innovation Index relating to 2021 are illustrated to capture the dynamics of the countries that carry out innovative activities most successfully. Related to the themes of innovation and growth there is that of the knowledge-based economy, which in recent years has favored the development "Fourth Industrial Revolution" thanks to the digital technologies, robotics and artificial intelligence. Finally, the knowledge economy index developed by the United Nations Development Program (UNDP) is examined. |
| Keywords: | Innovazione, crescita, economia basata sulla conoscenza, quarta rivoluzione industriale |
| JEL: | O30 O40 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113729&r= |
| By: | Saba Farooqi (Ph.D. Scholar, PIDE) |
| Abstract: | This webinar raises the four questions; 1: Current Capital Deployed: What is the amount of capital supporting SMEs in Pakistan? 2: Promising Approaches: Which are the most promising approaches to increasing capital? 3: Potential New Capital Sources: Which institutions would provide a step-change in finance? 4: Requirements for Unlocking Capital: What is required to see asset owners invest more capital? |
| Keywords: | Catalyzing Capital, Growth, SMEs, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wbrief:2021:68&r= |
| By: | Salvatore Cardillo (Bank of Italy); Antonio Ilari (Bank of Italy); Silvia Magri (Bank of Italy); Giorgio Meucci (Bank of Italy); Mirko Moscatelli (Bank of Italy); Dario Ruzzi (Bank of Italy) |
| Abstract: | This paper provides evidence on Fintech platforms operating around the world and in Italy, in both lending and funding through debt and equity financing. The platforms act as facilitators, connecting borrowers with potential lenders (individual or institutional investors); with the required authorizations, they can also operate as direct lenders. Excluding China, the volume of transactions has continued to grow in recent years, reaching 113 billion dollars in 2020. Loans represent the main activity, while funding is mostly provided by institutional investors. In Italy too, there has been marked growth in the activities of these platforms, primarily those related to business lending and invoice trading. Despite the considerable growth observed in recent years, Fintech lending still represents a small share of overall loans in all the main countries. At international level, there is an open debate about the necessity to adopt a level playing field, in order to avoid regulatory arbitrage. Possible financial stability concerns regard the lack of official and comparable data across countries about the platforms’ activity. |
| Keywords: | fintech, crowdfunding, social lending, invoice trading, technological innovation, alternative finance |
| JEL: | G10 G51 L10 O33 Q55 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_702_22&r= |
| By: | Nobuaki Yamashita (Swinburne University of Technology, Keio University, ANU); Doan Thi Thanh Ha (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | It is well documented that firms that participate in global value chains (GVCs) are larger and more productive, maintaining higher profitability compared to those without such connections. This paper asks the novel question of whether higher profits being connected to GVCs are shared with employees in the form of better pay. We investigated this rent sharing, using a matched employer–employee dataset of Vietnamese small firms surveyed between 2013 and 2015. We found that positive profits would feed into individual wages after accounting for the firm and employee attributes, as well as firm and employee fixed effects, but this is only found for those small firms without any involvement with GVCs. Rent sharing, on the other hand, is completely absent in GVC firms. We take this as evidence that GVC firms provide both higher wages and insurance against demand fluctuations. |
| Keywords: | Global value chains (GVCs), rent sharing, profits, outsourcing, multinational enterprises, Viet Nam, microenterprises, small and medium enterprises (SMEs) |
| Date: | 2022–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-52&r= |
| By: | Taoufik Anni (Université Mohammed V de Rabat, Maroc) |
| Abstract: | Il est évident que les sciences de gestion s‘intéressent à la réalisation de la performance dans toutes ses dimensions, ses dernières s'intéressent aussi à l'innovation en tant que facteur stratégique de différentiation et de succès des entreprises qui savent l'utiliser à bon escient. Cet article réalise une revue de la littérature sur la relation entre l'innovation et la performance dans les entreprises du secteur privé. Il propose une définition des différents indicateurs de performance ainsi que les différentes formes d'innovation. L'objectif de cet article est de décrire brièvement le cadre théorique de l'innovation et le cadre théorique de la performance au sein des entreprises, et aussi d'exposer la relation qui existe entre les deux concepts. L'ensemble des résultats théoriques montrent que la relation entre l'innovation et la performance se caractérise par une corrélation positive. |
| Keywords: | Faculté des sciences juridiques,Innovation,performance,entreprise. |
| Date: | 2022–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03695919&r= |
| By: | PROIETTI Paola (European Commission - JRC); SULIS Patrizia (European Commission - JRC); PERPIÑA CASTILLO Carolina (European Commission - JRC); LAVALLE Carlo (European Commission - JRC); AURAMBOUT Jean Philippe (European Commission - JRC); BATISTA E SILVA Filipe (European Commission - JRC); BOSCO Claudio (European Commission - JRC); FIORETTI Carlotta (European Commission - JRC); GUZZO Fabrizio (European Commission - JRC); JACOBS Christiaan (European Commission - JRC); KOMPIL Mert (European Commission - JRC); KUCAS Andrius (European Commission - JRC); PERTOLDI Martina (European Commission - JRC); RAINOLDI Alessandro (European Commission - JRC); SCIPIONI Marco (European Commission - JRC); SIRAGUSA Alice (European Commission - JRC); TINTORI Guido (European Commission - JRC); WOOLFORD Jayne (European Commission - JRC) |
| Abstract: | Persisting territorial disparities across and within the EU represent a potential threat to the future of the European project. These inequalities have been further exacerbated by the impact of the COVID-19 pandemic. Therefore, it is crucial to understand existing challenges and opportunities across European locations for improving policies coherently with the principles of leaving no place and no one behind. This work introduces the exploratory concept of lonely places, which is spatially embedded and identifies a plurality of places that present a vulnerability in terms of lack or insufficient local endowment, accessibility, or connectivity. This study presents a unique spatial, multi-scalar and interdisciplinary approach to places. It aims at creating knowledge going beyond traditional operational classes of policy programmes, the urban/rural dichotomy, or administrative boundaries. This work also includes several dimensions (e.g., physical infrastructure, access to schools, cultural facilities, democratic participation, migrants’ integration, etc.), which are all useful to create fully integrated policies. Findings from this research enhance and support evidence-based policy actions to favour cohesion among territories and avoid the possibility that places might act as an obstacle to individuals to achieving their full potential. Results presented in this report can also inform other specific EU policies and frameworks, as well as policies at national, regional, and local levels |
| Keywords: | Lonely places, disconnected, vulnerable, opportunities, territorial |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc126033&r= |