nep-sbm New Economics Papers
on Small Business Management
Issue of 2022‒12‒19
24 papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Entrepreneurship through Employee Mobility, Innovation, and Growth By Salomé Baslandze
  2. An Examination of the Informational Value of Self-Reported Innovation Questions By Zheng Tian; Timothy R. Wojan; Stephan J. Goetz
  3. DUI it yourself: innovation and activities to promote learning by doing, using, and interacting within the firm By Haus-Reve, Silje; Fitjar, Rune Dahl; Rodríguez-Pose, Andrés
  4. Regulation, Entrepreneurship, and Firm Size By Chambers, Dustin; McLaughlin, Patrick
  5. Relationship between Innovation and Corporate Performance in Japanese SMEs by Two-stage Panel Data Analysis: Focusing on the Joint Effect of ICT and R&D By Matsuzaki, Taisuke; Shigeno, Hidenori; Taher, Sheikh Abu; Tsuji, Masatsugu
  6. From public labs to private firms: magnitude and channels of R&D spillovers By Antonin Bergeaud; Arthur Guillouzouic; Emeric Henry; Clement Malgouyres
  7. Is Hiring Foreign Worth It? Spillover from Foreign Firms’ Human Capital and Local Firms’ Productivity By Pyun, Ju Hyun; Sun, Jong-in
  8. How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation By Patricia Laurens; Pierluigi Toma; Antoine Schoen; Cinzia Daraio; Philippe Larédo
  9. Intellectual Property Protection Lost and Competition: An Examination Using Machine Learning By Utku U. Acikalin; Tolga Caskurlu; Gerard Hoberg; Gordon M. Phillips
  10. Global Engagement and Innovation Activities: The Case of Malaysian Manufacturing Firms By Shiang, Lim Ee; Lee, Cassey
  11. Trains of Thought: High-Speed Rail and Innovation in China By Georgios TSIACHTSIRAS; Deyun YIN; Ernest MIGUELEZ; Rosina MORENO
  12. Risky Business: Venture Capital, Pivoting and Scaling By Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim
  13. Patents that match your standards: firm-level evidence on competition and innovation By Antonin Bergeaud; Julia Schmidt; Riccardo Zago
  14. Harnessing Foreign Technology to Improve Firm Performance: Evidence from Philippine Manufacturing Enterprises By Gaspar, Raymond
  15. Thailand’s Maize Seed Companies’ R&D Investment and Business Performance By Napasintuwong, Orachos
  16. T20 Indonesia 2022 Policy Brief: Global Value Chain Inclusivity And Digital Entrepreneurship By Erkko Autio; Mohamad D. Revindo; Yothin Jinjarak; Éva Komlósi; Donghyun Park; Cynthia Petalcorin; Dandy Rafitrandi; Yoshua Caesar Justinus; Willem Smit; László Szerb; Shu Tian; Mónika Tiszberger
  17. COVID-19 and the resilience of European firms: The influence of pre-crisis productivity, digitalisation and growth performance By Teruel, Mercedes; Amaral-Garcia, Sofia; Bauer, Péter; Coad, Alexander; Domnick, Clemens; Harasztosi, Péter; Pál, Rozália
  18. Technological Leapfrogging and Strategic Patent Policy By Fei Yu; Yanrui Wu; Jin Chen
  19. The impact of socio-demographic factors and entrepreneurial education on the emergence of the entrepreneurship idea among Moroccan students By Nabil Rizqi; Hajar EL HASSANI
  20. Evaluating COVID-19’s Impact on Firm Performance in the CAREC Region Using Night-Time Light Data: Azerbaijan, Georgia, Kazakhstan, and Mongolia By Karymshakov, Kamalbek; Azhgaliyeva, Dina; Mishra, Ranjeeta; Aseinov, Dastan
  21. The Effect of Artificial Intelligence on Job Performance in China's Small and Medium-Sized Enterprises (SMEs) By , editor2021; Younus, Ahmed Muayad
  22. Exploring factors contributing to creativity performance among entrepreneurs using the Bayesian Mindsponge Framework By Vuong, Quan-Hoang; Le, Tam-Tri; Zhang, Tao; La, Viet-Phuong; Quang-Loc, Nguyen; Hoang, Giang; Nguyen, Minh-Hoang
  23. Technology Spillover and Absorptive Capacity of Firms and Countries By Urata, Shujiro; Baek, Youngmin
  24. Platform Choices: Impact on Startup Performance By Ajit, Tejaswi Channagiri; Jamison, Mark A.

  1. By: Salomé Baslandze
    Abstract: Firm-level productivity differences are big and largely ascribed to ex-ante heterogeneity in the entrepreneurs’ growth potential at birth. Where do these ex-ante differences come from, and what can the policy do to encourage the entry of high-growth entrepreneurs? I study empirically and by means of a quantitative growth model the spinout firms: the firms founded by former employees of the incumbent firms. By focusing on innovating spinouts identified through the inventor mobility in the patent data, I document that spinout entrants significantly outperform regular entrants throughout their life. Firms with a bigger technological lead spawn more successful spinouts. Building on these observations, I build a structural model of innovation and firm dynamics, where firm heterogeneity arises from endogenous decisions of innovation workers to become entrepreneurs and create spinouts. The spinout dynamics affect productivity growth through four main channels: direct entry, incumbents’ disincentive effect, knowledge diffusion, and the firm composition channel. Growth decompositions show that accounting for spinout dynamics is quantitatively important for our understanding of the growth process. I analyze the role of noncompete laws affecting employee entrepreneurship for aggregate innovation and growth.
    Keywords: innovation; spinouts; entrepreneurship; noncompete laws; firm dynamics
    JEL: O30 O43
    Date: 2022–09–26
  2. By: Zheng Tian; Timothy R. Wojan; Stephan J. Goetz
    Abstract: Self-reported innovation measures provide an alternative means for examining the economic performance of firms or regions. While European researchers have been exploiting the data from the Community Innovation Survey for over two decades, uptake of US innovation data has been much slower. This paper uses a restricted innovation survey designed to differentiate incremental innovators from more far-ranging innovators and compares it to responses in the Annual Survey of Entrepreneurs (ASE) and the Business R&D and Innovation Survey (BRDIS) to examine the informational value of these positive innovation measures. The analysis begins by examining the association between the incremental innovation measure in the Rural Establishment Innovation Survey (REIS) and a measure of the inter-industry buying and selling complexity. A parallel analysis using BRDIS and ASE reveals such an association may vary among surveys, providing additional insight on the informational value of various innovation profiles available in self-reported innovation surveys.
    Keywords: Self-reported innovation, substantive and incremental innovation, latent innovation measure, logistic regression
    JEL: O00 O30
    Date: 2022–10
  3. By: Haus-Reve, Silje; Fitjar, Rune Dahl; Rodríguez-Pose, Andrés
    Abstract: Implicitly or explicitly, much innovation policy treats investments in research and development (R&D) as the main input to innovation. A large body of literature in innovation studies has challenged this, highlighting the role of external sources of innovation and of innovation based on learning by doing, using and interacting (DUI). Nonetheless, there has been limited empirical research on how firm-internal activities to promote DUI affect innovation, and on how important such activities are relative to internal R&D and to external sources of knowledge. We also know little about how internal DUI activities interact with internal R&D and with external knowledge sourcing. We address these gaps using Norwegian Community Innovation Survey data from 2010. We find that internal DUI is an important driver of new-to-market product innovation. Further, the results show partial substitution effects between internal DUI and internal R&D, as well as between internal DUI and external DUI.
    Keywords: DUI; experience-based knowledge; firms; innovation; STI
    JEL: J50
    Date: 2022–10–31
  4. By: Chambers, Dustin; McLaughlin, Patrick (Mercury Publication)
    Abstract: Using RegData and the Statistics of US Businesses (SUSB), we seek to estimate the relationship between the rate of new industry-specific regulatory restrictions and the corresponding quantity and distribution of firms within each industry. Business data
  5. By: Matsuzaki, Taisuke; Shigeno, Hidenori; Taher, Sheikh Abu; Tsuji, Masatsugu
    Abstract: The innovation theory tends to focus on innovation capabilities and estimate how these promote innovation. However, the final aim of innovation is not innovation itself but enhancing profits or sales. To complete the innovation theory, it is required to show whether innovation achieved contributes to improve in business performances. A further focus of this paper is on the role of ICT and R&D in the innovation process. ICT plays a vital role in absorbing information from outside the firm, while R&D is essential for assimilating obtained information with existing resources to create something novel. This paper focus on the joint effect of these two factors. The estimation is based on the twostage provit IV panel model and authors' own data of 2012 and 2017. The dependent variables are innovation in the first equation and sales in the second. The results obtained show that (i) Innovation enhances sales; (ii) R&D is significant for innovation; (iii) ICT is not significant for neither of equations; and (iv) the cross term of R&D and ICT is significant for innovation, implying ICT is an enabler of innovation. This is a novel result of the paper.
    Keywords: Open innovation,instrumental variable,mediation,cross term,enabler
    Date: 2022
  6. By: Antonin Bergeaud; Arthur Guillouzouic; Emeric Henry; Clement Malgouyres
    Abstract: Introducing a new measure of scientific proximity between private firms and public research groups and exploiting a multi-billion euro financing program of academic clusters in France, we provide causal evidence of spillovers from academic research to private sector firms. Firms in the top quartile of exposure to the funding shock increase their R&D effort by 20% compared to the bottom quartile. We exploit reports produced by funded clusters, complemented by data on labor mobility and R&D public-private partnerships, to provide evidence on the channels for these spillovers. We show that spillovers are driven by outsourcing of R&D activities by the private to the public sectors and, to a lesser extent, by labor mobility from one to the other and by informal contacts. We discuss the policy implications of these findings.
    Keywords: knowledge spillovers, policy instruments, technological distance
    Date: 2022–10–26
  7. By: Pyun, Ju Hyun (Asian Development Bank Institute); Sun, Jong-in (Asian Development Bank Institute)
    Abstract: We examine the effect of foreign direct investment (FDI) on local firms’ productivity via human capital transfer from multinational enterprises (MNEs) to local firms. Using the firm-level data for 2010–2015 from the Republic of Korea, we identify human capital spillovers using local firms’ hired permanent foreign employees in an industry and region where MNEs and local firms operate. This identification is valid because permanent foreign workers hired by local firms tend to be visa holders from MNEs due to the Republic of Korea’s visa regulations. We find that the industry and regional FDI positively affect local firms’ productivity, particularly firms with higher growth in hiring skilled foreign employees. This human capital spillover from FDI is also more pronounced in high R&D-intensive industries. Our results are robust with various measures of skilled foreign employees hired by local firms, variations of specifications, and controlling for endogeneity issues. Our findings on positive FDI spillovers via human capital transfer to a local firm suggest that policy makers may relax unnecessary regulations for highly skilled foreign workers and provide a platform where a local firm’s manager and skilled foreign employees find each other.
    Keywords: FDI; firm productivity; human capital; foreign employees; technology spillover; knowledge spillover; visa status
    JEL: D24 F21 F23 J24 J63 O33
    Date: 2022–06
  8. By: Patricia Laurens (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Pierluigi Toma (University of Salento [Lecce]); Antoine Schoen (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel); Cinzia Daraio (Sapienza University of Rome - Department of Informatics and System Sciences - UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome]); Philippe Larédo (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel, University of Manchester [Manchester])
    Abstract: This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm's degree of R&D internationalisation, and (2) the firm's geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation.
    Keywords: R&D productivity,Multinationality,Conditional efficiency,Patents,DEA modelling,multinationality,conditional efficiency,patents,DEA modelling JEL classification O32,F23,L25,C44
    Date: 2022
  9. By: Utku U. Acikalin; Tolga Caskurlu; Gerard Hoberg; Gordon M. Phillips
    Abstract: We examine the impact of lost intellectual property protection on innovation, competition, acquisitions, lawsuits and employment agreements. We consider firms whose ability to protect intellectual property (IP) using patents is weakened following the Alice Corp. vs. CLS Bank International Supreme Court decision. This decision has impacted patents in multiple areas including business methods, software, and bioinformatics. We use state-of-the-art machine learning techniques to identify firms’ existing patent portfolios’ potential exposure to the Alice decision. While all affected firms decrease patenting post-Alice, we find an unequal impact of decreased patent protection. Large affected firms benefit as their sales and market valuations increase, and their exposure to lawsuits decreases. They also acquire fewer firms post-Alice. Small affected firms lose as they face increased competition, product-market encroachment, and lower profits and valuations. They increase R&D and have their employees sign more nondisclosure agreements.
    JEL: D43 G34 O31 O33 O34
    Date: 2022–11
  10. By: Shiang, Lim Ee (Asian Development Bank Institute); Lee, Cassey (Asian Development Bank Institute)
    Abstract: We examine how the diversity of global engagement is related to firms’ participation in innovation input and output activities in the Malaysian manufacturing sector. We use firm-level data obtained from the World Bank’s Enterprise Survey 2015. Firms are classified into four different groups based on their engagement in global activities, i.e., foreign trade and foreign direct investment. Incidences of innovation for 10 innovation activities are computed. The incidence of innovation was used to examine the extent to which different global engagement groups participate in 10 various types of innovation activities. Logit models are used to estimate the probability of engaging in innovation input and output activities for firms with differing global engagements. Generally, the results clearly highlight that globalized firms, i.e., firms engaging in global activities, participate in innovation activity more actively than their nonglobalized counterparts, despite there being some evidence that the pattern of engagement in innovation activity varies across globalized firms. Empirical findings propose that trade policies promoting exporting and policies attracting foreign direct investment may be useful in driving firms’ participation in innovation activity. A number of export-related policies can be formulated to assist domestic firms in integrating into the global value chain. These include providing easier access to information about foreign markets, export marketing development assistance, and training programs. In addition, foreign direct investment liberalization policies may be used to attract selective foreign direct investments, and tax-related incentive policies may be formulated to encourage firms to set up in-house R&D activities for product development.
    Keywords: exports; foreign ownership; global engagement; innovation; R&D
    JEL: F61 L60 O31
    Date: 2022–08
  11. By: Georgios TSIACHTSIRAS; Deyun YIN; Ernest MIGUELEZ; Rosina MORENO
    Abstract: This paper explores the effect of the High Speed Rail (HSR) network expansion on local innovation in China during the period 2008-2016. Using exogenous variation arising from a novel instrument - courier’s stations during the Ming dynasty, we find solid evidence that the opening of a HSR station increases cities’ innovation activity. We also explore the role of inter-city technology diffusion as being behind the surge of local innovation. To do it, we compute least-cost paths between city-pairs, over time, based on the opening and speed of each HSR line, and obtain that an increase in a city’s connectivity to other cities specialized in a specific technological field, through the HSR network, increases the probability for the city to specialize in that same technological field. We interpret it as evidence of knowledge diffusion.
    Keywords: high speed rail, innovation, technology diffusion, patents, specialization
    JEL: R40 O18 O30 O33
    Date: 2022
  12. By: Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)); Tåg, Joacim (Research Institute of Industrial Economics (IFN))
    Abstract: The creation and scaling of startups are associated with risk-taking and different types of owners treat these risks differently. We show how an active venture capital (VC) market affects risk-taking in research and scaling decisions of startups. VC-backed startups will choose more high-risk, high-reward research and scaling strategies than independent startups. The reason is temporary ownership and the compensation structures used in the VC industry. These create ”exit costs” for VC-backed startups that imply that riskier strategies pay off. We also show that the presence of an active VC market may induce startups to take more risks initially since VC firms can help startups pivot in case of failure.
    Keywords: Entrepreneurship; Pivoting; Scaling; Venture capital
    JEL: G24 L25 M13
    Date: 2022–11–18
  13. By: Antonin Bergeaud; Julia Schmidt; Riccardo Zago
    Abstract: When a technology becomes the new standard, the firms that are leaders in producing this technology have a competitive advantage. Matching the semantic content of patents to standards and exploiting the exogenous timing of standardization, we show that firms closer to the new technological frontier increase their market share and sales. In addition, if they operate in a very competitive market, these firms also increase their R&D expenses and investment. Yet, these effects are temporary since standardization creates a common technological basis for everyone, which allows followers to catch up and the economy to grow.
    Keywords: standardization, patents, competition, innovation, text mining
    Date: 2022–10–24
  14. By: Gaspar, Raymond (Asian Development Bank Institute)
    Abstract: We examine the impact of foreign-licensed technology and identifies channels to effectively leverage such technology to improve the performance of manufacturing firms in the Philippines. Using the fixed effects approach to World Bank Enterprise Survey panel data for the Philippines covering 2009 and 2015, we find no statistically significant impact of introducing foreign-licensed technology to manufacturing firms in terms of annual sales, employment, and energy intensity. Interestingly, the impact is more pronounced and significant among manufacturing firms that conduct workforce trainings, thereby improving absorptive capacity through better quality of labor. The empirical findings call for the Philippine government to bolster skills training and human capital formation initiatives, further incentivizing in-house training, to support the advancement of local absorptive capacity and better assimilate the use of foreign technologies.
    Keywords: technology transfer; technology licensing; firm performance; local absorptive capacity; Philippines
    JEL: L24 L25 L60
    Date: 2022–06
  15. By: Napasintuwong, Orachos
    Keywords: Agribusiness, Crop Production/Industries
    Date: 2021
  16. By: Erkko Autio (Imperial College); Mohamad D. Revindo (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Yothin Jinjarak (Asian Development Bank); Éva Komlósi (Faculty of Business and Economics, University of Pécs); Donghyun Park (Asian Development Bank); Cynthia Petalcorin (Asian Development Bank); Dandy Rafitrandi (Centre for Strategic and International Studies/CSIS); Yoshua Caesar Justinus (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Willem Smit (Asia School of Business, Fulbright University Vietnam); László Szerb (Faculty of Business and Economics, University of Pécs); Shu Tian (Asian Development Bank); Mónika Tiszberger (Faculty of Business and Economics, University of Pécs)
    Abstract: The speed of digitalisation is accelerating, but not everywhere at the same pace. Widening digital divides, between and within countries, may disproportionally harm local small and medium sized enterprises (SMEs) in digitally lagging host markets. Without proper policies, these actors, important for their local economies, could be denied access, dismissed from or downgraded in their participation in digitalised global value chains (GVCs). This policy brief reviews the literature and analyses entrepreneur-level, national-level and international trade-dyadic data to provide 11 evidence-based policy recommendations aimed at enhancing GVC inclusivity through (1) supra-national level alignment, (2) country-level policy adjustments and (3) firm-level interventions to stimulate digital entrepreneurship among SMEs.
    Keywords: gvc — t20 — global value chain — digital entrepreneurship — smes — small and medium sized enterprises
    Date: 2022–01
  17. By: Teruel, Mercedes; Amaral-Garcia, Sofia; Bauer, Péter; Coad, Alexander; Domnick, Clemens; Harasztosi, Péter; Pál, Rozália
    Abstract: We analyse how the COVID-19 crisis impacted firms' employment levels and digitalisation efforts differently depending on their pre-crisis productivity, digitalisation and growth performance. We match the EIB Investment Survey with firm-level financial statements from the ORBIS database for 27 EU Member States and the United Kingdom. Following the sales decline during the crisis, we show that: (1) Higher productivity firms are less prone to reduce the number of employees both in the short and in the long term; (2) High-growth enterprises are also less prone to reduce the number of employees in the long term; (3) Firms in highly digitalised sectors are less likely to reduce the number of employees; (4) Firms are more likely to increase their use of digital technologies, especially those that were already more digitalised before the crisis.
    Keywords: HGE,labour productivity,digitalisation,COVID-19,Mercedes Teruel,Sofia Amaral-Garcia,Peter Bauer,Alex Coad,Clemens Domnick,Péter Harasztosi,Rozália Pál
    JEL: L22 O47
    Date: 2022
  18. By: Fei Yu (School of Economics and Management & Research Center for Technological Innovation, Tsinghua University); Yanrui Wu (Business School, The University of Western Australia); Jin Chen (School of Economics and Management & Research Center for Technological Innovation, Tsinghua University)
    Abstract: In this paper, the term “strategic patent policy” refers to the case where examination of foreign firms’ patent applications may be deliberately manipulated by national patent offices so that domestic firms are protected and can leapfrog their foreign counterparts in technology in strategic sectors. However, it is not easy to distinguish the impacts of discriminatory patent policy from those due to liabilities of foreignness. Therefore, international intervention to eliminate discriminatory treatment becomes difficult. In this paper, we try to solve this conundrum by proposing a game-theory model to simulate the effect of strategic patent policy. The simulation results suggest that strategic patent policy measures are more likely to impede foreign patents that are (1) associated with R&D-intensive industries, (2) related to sectors where local firms’ absorptive capability is weak, and (3) registered in more countries. These hypotheses are then tested empirically by using patent databases of six major economies in the world. The empirical analysis provides evidence of possible existence of strategic patent policy against foreign companies in Japan and China, especially in high-technology and medium-high-technology industries.
    Keywords: Technological Leapfrogging and Strategic Patent Policy
    JEL: L16 O31 O34
    Date: 2022
  19. By: Nabil Rizqi (MAE2D - Laboratory MAE2D, University of Abdelmalek Essaadi); Hajar EL HASSANI (MAE2D - Laboratory MAE2D, University of Abdelmalek Essaadi)
    Abstract: Some statistical patterns have been identified in the course of studying the idea of entrepreneurship among young Moroccan students while focusing on the demographic characteristics that determine the likelihood of becoming an entrepreneur. The elements studied include gender, age, level, and type of education pursued. The results showed/ that men are more likely to start a business than women (in a ratio of about ¾) and that entrepreneurs are generally of a higher educational level compared to the average citizen. However, this stream of research is subject to an important limitation that is common to the personality trait approach since both schools of thought assume that different psychological and demographic characteristics have the same consequences regardless of the context in which the potential entrepreneur is situated. Yet, being set in an environment that favors the founding of a business and being stimulated by external reasons to start a business can also have an influence on the individual who, with the same characteristics, wouldn't carry out the same actions. To address this topic, the adopted research methodology is of a hypothetico-deductive nature, as it is based on the verification of a range of hypotheses among 300 students with a predominantly entrepreneurial background.
    Keywords: Socio-demographic factors,Entrepreneurship,Entrepreneurial education
    Date: 2022–11–08
  20. By: Karymshakov, Kamalbek (Asian Development Bank Institute); Azhgaliyeva, Dina (Asian Development Bank Institute); Mishra, Ranjeeta (Asian Development Bank Institute); Aseinov, Dastan (Asian Development Bank Institute)
    Abstract: We examine economic activity measured with firm performance indicators using the changes in intensity of night-time light in four Central Asia Regional Economic Cooperation economies: Azerbaijan, Georgia, Kazakhstan, and Mongolia. The empirical analysis is based on the World Bank Enterprise Survey data for 2019 and a follow-up survey conducted during the coronavirus disease (COVID-19) pandemic. The enterprise survey dataset was enhanced with data on night-time light intensity from Google Earth and the strictness of “lockdown-style” policies. Using the probit regression model, we investigate the impact of COVID-19 on firm performance and night-time light in CAREC countries. Firm performance is measured using four variables: decrease in sales, demand, export share, and working hours. Our results show that, as the night-time light increases, the likelihood of performance deterioration is reduced. Larger firms are more likely to maintain their performance than smaller firms. The sales in the manufacturing, clothing, and services sectors are more likely to decline than those in the food sector. Accordingly, the results point to a significant decline in the performance of firms operating in the service sector compared with those in the food sector during the pandemic.
    Keywords: Central Asia; COVID-19; big data; firm performance; gender; SMEs
    JEL: C13 C25 C55 L25
    Date: 2022–07
  21. By: , editor2021; Younus, Ahmed Muayad
    Abstract: Applications of artificial intelligence (AI) in business have garnered much attention in recent years, but the implementation issues posed by AI have not been addressed. The purpose of this study was to shed light on the effect of artificial intelligence and its associated variables on job performance. Privacy, consent, security, scalability, the role of corporations, and the changing nature of business are used as a study community and focused in Small and Medium Enterprises (SMEs) in China, business sector. To collect data from the random sample, a questionnaire was constructed. 220 managers were included in the sample. Additionally, the study took a descriptive method and analyzed the data using SPSS. The findings indicated that artificial intelligence has a statistically significant effect on employment. Performance is determined solely by factors. Additionally, the findings indicated that gender, academic credentials, and years of experience all have a statistically significant impact on work performance If the implementation science community wants to aid in the general adoption of business, the concerns outlined in this research will demand significant attention in the future years.
    Date: 2022–06–10
  22. By: Vuong, Quan-Hoang; Le, Tam-Tri; Zhang, Tao; La, Viet-Phuong; Quang-Loc, Nguyen; Hoang, Giang; Nguyen, Minh-Hoang
    Abstract: Creativity is a crucial aspect of entrepreneurship. However, research on the information-processing mechanism of creativity in relation to entrepreneurship is still very limited. To explore factors contributing to creativity performance among entrepreneurs in terms of information processing, we applied the Bayesian Mindsponge Framework. We used the Serendipity-Mindsponge-3D (SM3D) knowledge management theory to construct models and conducted Bayesian analysis on the most comprehensive and well-designed dataset of 3071 Vietnamese entrepreneurs up to date. We found that entrepreneurs who give more time to their startup attempts are likely to have lower levels of creativity. Both factors of higher levels of knowledge within one’s discipline and better connections to out-of-discipline knowledge are positively associated with more creativity. While the effect of openmindedness on the relationship between within-discipline knowledge and creativity is unclear, openmindedness was found to have a positive moderating effect on the association between out-of-discipline knowledge and creativity. These findings support entrepreneurs in understanding the information processing mechanisms behind creativity for creating more effective knowledge management strategies.
    Date: 2022–11–16
  23. By: Urata, Shujiro (Asian Development Bank Institute); Baek, Youngmin (Asian Development Bank Institute)
    Abstract: We examine the foreign direct investment (FDI) spillover effects in developing countries and investigate the importance of the absorptive capacity of a firm and a country in realizing and facilitating FDI spillover. We use data obtained from the World Bank’s Enterprise Surveys for 107 countries from 2007 to 2020. We find that firms in developing countries do not benefit from horizontal FDI but benefit from forward and backward vertical FDI. We also find that firms can benefit from horizontal, forward, and backward FDI by improving the absorptive capacity of firms and host countries. Based on these findings, we present several recommendations to help firms benefit from FDI spillover.
    Keywords: foreign direct investment; technology transfer; absorptive capacity
    JEL: D22 F21 O30 R10
    Date: 2022–06
  24. By: Ajit, Tejaswi Channagiri; Jamison, Mark A.
    Abstract: We study the impact of platform choice (iOS vs Android) for firms that build apps for smart phones. We merge app data from Sensor Tower® with financial performance data from Crunchbase®. We find that apps that begin on Android have greater average downloads per month. However, apps with the greatest average downloads per month are likely to have begun on iOS. On each platform, the categories that attracted most app-based firms had greater skewness and kurtosis in average downloads per month. When endogenizing the choice of platform using propensity-score matching, firms that prefer to launch on iOS first seem likelier than those that launch on Android first to not receive any funding at all. However, they seem to receive greater funding in USD per firm.
    Keywords: platforms,innovation,competition
    JEL: L13 L15 L51
    Date: 2022

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