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on Small Business Management |
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Issue of 2023‒11‒20
fourteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Roberto Alvarez; Miguel A. Gonzalez |
| Abstract: | In this paper, we explore the relevance of obstacles to green innovation in Chilean firms. We analyze differences in green innovation across firm size and industries and we explore which barriers have a greater impact on green innovators. We find that these innovators, in general, do face higher obstacles to innovation than similar but non-green firms. We conclude that, after controlling for other firm characteristics, the most relevant obstacles for green innovators are those associated with financial and knowledge aspects. This finding is relevant for the implementation of public policies aimed at enhancing green innovation in Chile. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp550&r=sbm |
| By: | Roberto Alvarez; Miguel A. Gonzalez |
| Abstract: | In this paper, we study the existence of different innovation barriers between exporters and non-exporters in Chile. We deal with endogeneity of exporting using several econometric models. Our findings are very robust. For most of the aspects analyzed, exporters perceive lower innovation obstacles compared to non-exporters. Consistent with the concept of learning by exporting, it seems that the internationalization process allows firms to access new knowledge and technologies to improving their innovation capabilities. This can have relevant implications for public policy, particularly suggesting that public support for innovation would be more important for non-exporter firms. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp551&r=sbm |
| By: | Vojtech Bartos; Silvia Castro; Kristina Czura; Timm Opitz |
| Abstract: | We analyze gender discrimination in entrepreneurship finance. Access to finance is crucial for entrepreneurial success, yet constraints for women are particularly pronounced. We structurally unpack whether loan officers evaluate business ideas and implementation constraints differently for male and female entrepreneurs, both as individual entrepreneurs or in entrepreneurial teams. In a lab-in-the-field experiment with Ugandan loan officers, we document gender discrimination of individual female entrepreneurs, but no gender bias in the evaluation of entrepreneurial teams. Our results suggest that the observed bias is not driven by animus against female entrepreneurs but rather by differential beliefs about women’s entrepreneurial ability or implementation constraints in running a business. Policies aimed at team creation for start-up enterprises may have an additional benefit of equalizing access to finance and ultimately stimulating growth. |
| Keywords: | access to finance, gender bias, entrepreneurship, lab-in-the-field |
| JEL: | C93 G21 J16 L25 L26 O16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10719&r=sbm |
| By: | Christoph Grimpe (CBS, DK - ZEW, DE); Katrin Hussinger (DEM, Université du Luxembourg); Wolfgang Sofka (CBS, DK - University of Liverpool, UK) |
| Abstract: | Access to unique knowledge of a target firm is the strategic rationale for many firm acquisitions with the expectation of improving the acquirer’s innovation performance. We argue that the ac- quisition price reflects opportunities for value creation through innovation and investigate whether acquirers pay not just for the target firm’s knowledge but also for the opportunity to access local- ized knowledge when targets are embedded in the knowledge flows of their region. Accordingly, we integrate embeddedness theory with literature on the expectations for knowledge-based value creation in M&A. We hypothesize that target firms that are highly embedded in local knowledge flows have higher acquisition prices. Using data on 520 technology-oriented firm acquisitions in Europe between 2001 and 2010, we find that the acquisition price increases with the target firm’s local embeddedness. The effects are weaker when an acquirer’s knowledge base is closely related to the localized knowledge and stronger when the target’s knowledge base is closely related to the localized knowledge, suggesting that local embeddedness conditions the ability of acquirer and |
| Keywords: | firm acquisitions, local embeddedness, localized knowledge, patents, knowledge relatedness. |
| JEL: | G34 O3 P48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-01&r=sbm |
| By: | Sharma, Gautam (CIRCLE, Lund University); Haldar, Stuti (CIRCLE, Lund University) |
| Abstract: | Makerspaces and fabrication laboratories (fablabs) have received extensive attention recently due to their potential to drive innovation and entrepreneurship. These spaces provide access to high-tech tools to the people and encourage community building and collaborations around technology-oriented projects. This paper analyzes the existing research on the innovation dynamics within these spaces. Seventy peer-reviewed studies were selected and thematically analyzed from the Scopus and Web of Science databases. The results are analyzed and presented as descriptive statistics and thematic analysis. We found nine significant themes from the extant literature: 1) Collaborations, learning and sharing practices in makerspaces; 2) Motivations and spatial environment affecting makerspace innovations; 3) Physical Resources, experimentations, and knowledge dimension of makerspaces; 4) Diversity and inclusion aspects of makerspaces; 5) Social and economic impact of innovation in makerspaces; 6) Regional innovation policies and maker cultures; 7) Maker movement in different regions; 8) Maker movement and the city culture; and 9) Academic makerspaces and innovation. The paper contributes to the broader literature on innovation dynamics within informal spaces like makerspaces and fablabs. |
| Keywords: | makerspaces; fabrication laboratories; fab labs; creative open spaces; innovation; systematic literature review; thematic analysis |
| JEL: | O30 O32 |
| Date: | 2023–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2023_010&r=sbm |
| By: | Laura Bisio; Angelo Cuzzola; Marco Grazzi; Daniele Moschella |
| Abstract: | We investigate the impact of investment in automation-related goods on adopting and non- adopting firms in the Italian economy during 2011-2019. We integrate datasets on trade activities, firms’, and workers’ characteristics for the population of Italian importing firms and estimate the effects on adopters’ outcomes within a difference-indifferences design exploiting import lumpiness in product categories linked to automation and AI technologies. We find a positive average adoption effect on the adopters’ employment and on the value-added and average wage, whereas sales and productivity increase after an initial drop with a net positive effect five years after adoption. Crucially, the employment effect is heterogeneous across firms: a positive scale effect is predominant among small firms, whereas a negative displacement effect is predominant among medium and large firms. We complete the framework with a 5-digit sector-level analysis showing that adopting automation technologies has an overall negative effect on aggregate employment. |
| Keywords: | automation, employment, firm heterogeneity, imports, technology adoption |
| JEL: | D24 J23 L25 O33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10697&r=sbm |
| By: | Kristina McElheran; J. Frank Li; Erik Brynjolfsson; Zachary Kroff; Emin Dinlersoz; Lucia S. Foster; Nikolas Zolas |
| Abstract: | We study the early adoption and diffusion of five AI-related technologies (automated-guided vehicles, machine learning, machine vision, natural language processing, and voice recognition) as documented in the 2018 Annual Business Survey of 850, 000 firms across the United States. We find that fewer than 6% of firms used any of the AI-related technologies we measure, though most very large firms reported at least some AI use. Weighted by employment, average adoption was just over 18%. AI use in production, while varying considerably by industry, nevertheless was found in every sector of the economy and clustered with emerging technologies such as cloud computing and robotics. Among dynamic young firms, AI use was highest alongside more-educated, more-experienced, and younger owners, including owners motivated by bringing new ideas to market or helping the community. AI adoption was also more common alongside indicators of high-growth entrepreneurship, including venture capital funding, recent product and process innovation, and growth-oriented business strategies. Early adoption was far from evenly distributed: a handful of “superstar” cities and emerging hubs led startups’ adoption of AI. These patterns of early AI use foreshadow economic and social impacts far beyond this limited initial diffusion, with the possibility of a growing “AI divide” if early patterns persist. |
| JEL: | M15 O3 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31788&r=sbm |
| By: | Novaresio, Anna; Patrucco, Pier Paolo (University of Turin) |
| Abstract: | The goal of the paper is threefold: 1) to empirically investigate whether out-of-equilibrium conditions in international economic performances (exports & imports) are correlated with greater innovative efforts (R&D expenditures) in the automotive industry, by means of both descriptive and inferential techniques; 2) to explore, by using descriptive means, whether and which countries display the abovementioned path, in search for possible local-specific dynamics; 3) to provide empirical evidence in support of the existence of a self-feeding loop between trade indicators (exports & imports) and R&D expenditures in the European automobile sector, by using an appropriate econometrical strategy inspired by the “Crépon-Duguet-Mairesse†(CDM) method. Our empirical analysis, based on a panel sample of European countries between 1990-2018, provide substantial support to the hypothesis that a “creative response†to out-of-equilibrium export conditions drives innovation also in the automotive industry. Finally, our study confirms the existence of a self-reinforcing loop between exports, imports and innovation in the automotive industry, which is yet mediated by the industry size, suggesting that the economies of scale are still the major driver of the sectoral growth and innovation capability. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202306&r=sbm |
| By: | Mesquita, José (Universidade Nova de Lisboa); Pereira dos Santos, João (Queen Mary University of London); Tavares, José (Universidade Nova de Lisboa) |
| Abstract: | This paper analyses the impact of European Union (EU) funds on the performance of private firms. In particular, we examine a quasi-natural experiment consisting of a redrawing of administrative areas that expanded regional eligibility and led to a sudden increase in accessibility to EU grants for firms located in 33 Portuguese municipalities. Using a comprehensive linked employer-employee administrative dataset that covers the universe of private firms between 2003 and 2010, our difference-in-differences estimates uncover a significant and positive causal effect of increased eligibility on firms' sales, labour productivity, and average wages, while employment is not significantly altered. While firms' sales in the non-tradable sectors are positively impacted, firms' sales in more competitive, tradable, sectors remain unaffected by increased access to EU funds. |
| Keywords: | grants, regional policy, private firm, municipalities, Portugal |
| JEL: | C21 R10 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16526&r=sbm |
| By: | Laura Bisio; Angelo Cuzzola; Marco Grazzi; Daniele Moschella |
| Abstract: | We investigate the impact of investment in automation-related goods on adopting and non-adopting firms in the Italian economy during 2011-2019. We integrate datasets on trade activities, firms', and workers' characteristics for the population of Italian importing firms and estimate the effects on adopters' outcomes within a difference-in-differences design exploiting import lumpiness in product categories linked to automation and AI technologies. We find a positive average adoption effect on the adopters' employment and on the value-added and average wage, whereas sales and productivity increase after an initial drop with a net positive effect five years after adoption. Crucially, the employment effect is heterogeneous across firms: a positive scale effect is predominant among small firms, whereas a negative displacement effect is predominant among medium and large firms. We complete the framework with a 5-digit sector-level analysis showing that adopting automation technologies has an overall negative effect on aggregate employment. |
| Keywords: | Automation; Employment; Firm heterogeneity; Imports; Technology adoption. |
| Date: | 2023–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/37&r=sbm |
| By: | Anne Margarian (Thünen Institute of Market Analysis); Cécile Détang-Dessendre (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Aleksandra Barczak (Département EcoSocio - Département Économie et Sciences Sociales pour l'Agriculture, l'Alimentation et l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Corinne Tanguy (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Abstract Some rural locations in industrialized countries have experienced considerable employment growth in the last decades, while others suffer from depopulation and decline. The paper aims to contribute to the development of an evolutionary approach that allows for the identification of those often difficult-to-observe evolving factors that explain success and failure of rural locations. It also wants to show how the combined recognition of evolutionary labour market perspectives, the dynamic capability view of the firm, and human resource management (HRM) theories can serve the operationalisation of evolutionary explanations in this context. According to the derived model, apparent locational disadvantages might be compensated for by subtle, potentially self-enforcing labour market dynamics that generate opportunities for certain firms and industries. Empirically, the ideas are substantiated by means of a mediation model. The empirical analysis is based on latent class analysis and discrete choice models using data from an own survey of 200 food-processing firms in urban and rural locations of one German federal state. For these observations, our results support the idea that the exploitation of HRM opportunities may be more important for good performance in rural labour markets than the direct implementation of specific innovation modes. Investment in HRM allows rural firms in our sample to realise those gains in terms of innovation and growth offered by the creation of a stable and experienced workforce. Their focus on internal labour markets potentially generates external effects, which further encourages neighbouring firms to also invest in involved HRM measures. |
| Keywords: | Agglomeration advantages, Innovation, Human resource management, Mediation |
| Date: | 2022–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03736538&r=sbm |
| By: | Heinz Hollenstein (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | The study provides evidence with respect to some topics of inter- and intra-firm diffusion of digital technology so far neglected in research. The analysis is based on a slightly extended version of the encompassing model of Battisti et al. (2009). We use a unique dataset that provides for the entire business sector information on the diffusion of 24 digital technologies ranging from old ones up to others developed only in recent years. We use the model, firstly, to analyse the determinants of the inter- and intra-firm diffusion of the entire set of digital technologies. Secondly, we do the same for six subfields of digital technology we identified by use of a factor analysis. Thirdly, we examine the effect of in-house learning on the intra-firm diffusion of digital technology. We distinguish between “cross-learning†(learning from previous experience with such technologies in subfields other than that considered) and “cumulative learning†(effect of previous application of relatively “old†digital technologies on the intensity of usage of advanced technology in the same or a closely related subfield). Finally, we analyse the determinants of a firm’s decision to digitalise a particular combination of two or more functional fields of its activity (fabrication, storage, marketing, etc.). The findings of this paper strongly support the underlying model in the case of the first and the second topic, whereas the evidence is somewhat weaker with regard to the third and the fourth element of the study. Finally, we find that complementing the “Battisti model†with variables representing firm-specific anticipated benefits is highly sensible, as these are powerful drivers of adoption and diffusion, which points to a strong forward-looking behaviour of firms in the diffusion process. |
| Keywords: | Adoption and diffusion of digital technologies, extent of digitalisation of business, inter- and intra-firm diffusion, Rank, stock/order and epidemic effects, effects of learning on the diffusion of IT, digitalisation of functional fields of firm activity |
| JEL: | O30 O31 O32 O33 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:22-504&r=sbm |
| By: | Nicolas Wattiez; Hervé Goy (UJML - Université Jean Moulin - Lyon 3 - Université de Lyon, Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon, Iaelyon - Iaelyon School of Management - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon) |
| Abstract: | In France, public aid for financing research and innovation has multiplied since the beginning of the 2000s. With the advent of the "research tax credit", an innovation financing consulting industry has gradually developed. This niche of the business consulting sector has been little studied, so that the effects of digital transformation on the traditional business model of firms in the sector remain, to this day, largely unknown. This article aims to fill this gap based on a qualitative exploratory study of 16 players in the sector in France. Our results highlight three ways in which the business models of innovation financing consultancies have changed as a result of digitalisation. Finally, we discuss the similarities and differences with the results of similar studies conducted in the general consulting industry. |
| Abstract: | En France, les aides publiques au financement de la recherche et de l'innovation se sont multipliées depuis le début des années 2000. Avec l'avènement du crédit impôt recherche, une industrie du conseil en financement de l'innovation s'est progressivement développée. Cette niche du secteur du conseil aux entreprises a très peu été étudiée, si bien que les effets de la transformation numérique sur le modèle économique traditionnel des cabinets du secteur restent, jusqu'à ce jour, largement méconnus. Cet article vise à combler cette lacune à partir d'une étude qualitative à visée exploratoire menée auprès de 16 acteurs du secteur en France. Nos résultats mettent en évidence trois modalités d'évolution des modèles d'affaires des cabinets de conseil en financement de l'innovation sous l'effet de la numérisation. Les similitudes mais aussi les différences avec les résultats de travaux proches menés dans l'industrie du conseil généraliste sont finalement discutées. |
| Keywords: | Consulting – Digital transformation – Business model – Financing – Innovation, Conseil – Transformation numérique – Modèle économique – Financement – Innovation |
| Date: | 2023–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04232253&r=sbm |
| By: | Grace C. Liu (Research to Empower, USA); Willem Spanjers (Kingston University, UK; ICEA; Rimini Centre for Economic Analysis) |
| Abstract: | This paper addresses the unexplained phenomenon of gender differences in entrepreneurial decision-making, particularly in business sectors involving innovation and risk. Although the topics of risk attitudes and uncertainty have been studied comprehensively from a gender perspective, research that combines different forms of uncertainty and links them with women’s entrepreneurial decision-making has not been done to the best of our knowledge. This paper provides a theoretical framework involving models on risk, ambiguity, perceptions of risk as in cumulative prospect theory, and asymmetric information. It unifies and connects these models through specific assumptions on utility functions in the presence of uncertainty and uses bias discount factors to denote how strongly biases devalue outcomes. Conclusions from the models indicate that a range of external factors—such as race and access to education and social networks—may interact with the internal behavioral biases of an entrepreneur, such as overconfidence, risk appetite, altruism, and trust in others. By detailing and analyzing theoretical gender-type differences and their effects on entrepreneurial decision-making, we find that traditional one-dimensional gender policies are not sufficient to address complex gender issues. Rather, we suggest a more multi-dimensional and holistic policy approach that combines traditional gender policies and policies for long-term sustainability, encouraging firms to be more socially and environmentally conscious, and demanding less “greedy works” as Nobel laureate Professor Goldin also argued. It aims to create a new business eco-system that is more feminine-friendly and balanced, considering gender-type differences and incentive biases to address the current worldwide gender disparities in entrepreneurship. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:23-15&r=sbm |