nep-sbm New Economics Papers
on Small Business Management
Issue of 2023‒11‒27
seventeen papers chosen by
João Carlos Correia Leitão, Universidade da Beira Interior

  1. Spatial patterns and drivers of SME digitalisation. By Adelheid Holl; Ruth Rama
  2. FDI and superstar spillovers: Evidence from firm-to-firm transactions By Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
  3. Knowledge spillovers from clean innovation. A tradeoff between growth and climate? By Ralf Martin; Dennis Verhoeven
  4. FDI spillovers and productivity in Vietnamese manufacturing industries - New insights from the unconditional quantile regression By Thanh Tam Nguyen-Huu
  5. A Conceptual Framework for Describing the Phenomenon of Hackathons for Entrepreneurial Behavior (title of the paper) By Marieke Funck (first name last name)
  6. The Proptech Innovation Network: A Complexity-Evolutionary Perspective By Damien Nouvel
  7. The signaling value of legal form in debt financing By Felix Bracht; Jeroen Mahieu; Steven Vanhaverbeke
  8. Detecting economic growth pathways in the EU’s lagging regions By Ganau, Roberto; Kilroy, Austin
  9. The Convergence of Business, Information Technology, and Education: A Review of Interdisciplinary Approaches By Rojab, Ahmad
  10. The impact of COVID-19 on productivity By Nicholas Bloom; Philip Bunn; Paul Mizen; Pawel Smietanka; Gregory Thwaites
  11. Help wanted: the drivers and implications of labour shortages By Groiss, Martin; Sondermann, David
  12. Heterogeneous macroprudential policies and corporate financing decisions By Bakkar, Yassine; Machokoto, Michael
  13. FDI spillovers, New Industry Development, and Economic Growth By Thanh Tam Nguyen-Huu; Ngoc‐sang Pham
  14. The Role of Bank-Fintech Partnerships in Creating a More Inclusive Banking System By Alan Chernoff; Julapa Jagtiani
  15. Market power and innovation in the intangible economy By Maarten de Ridder
  16. Predictors of entrepreneurial attitude among administrators of selected community colleges and universities in Leyte By Jereco Jims J. Agapito; Liza Lorena C Jala; Rosemarie Cruz-Español; Anthony G Esguerra
  17. The Importance of Intellectual Humility in New Venture Teams (title of the paper) By Marieke Funck (first name last name); Slawa Tomin (first name last name of second author); Rüdiger Kabst (first name last name of third author)

  1. By: Adelheid Holl; Ruth Rama
    Abstract: Digital transformation plays an increasingly important role in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet little is known regarding spatial inequalities in their adoption of advanced digital technologies. Using recent data from the Flash Eurobarometer 486, we study the spatial patterns of drivers for the implementation of new digital technologies in SMEs in Europe. In our analysis, the focus is on the possible influence of location. Considerable heterogeneity of SMEs is found in their propensity to adopt advanced digital technologies related to the strength of the local business environment and to the urban/rural hierarchy.
    Keywords: SMEs, Digitalisation, technology adoption, location.
    Date: 2022–07
  2. By: Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
    Abstract: Using firm-to-firm transactions, we show that starting to supply a 'superstar' firm (large domestic firms, exporters, and multinationals) boosts productivity by 8% in the medium run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.
    Keywords: productivity, FDI, spillovers
    Date: 2023–04–27
  3. By: Ralf Martin; Dennis Verhoeven
    Abstract: Innovation policy faces a tradeoff between growth and climate objectives when the knowledge spillover externality from clean innovation is low compared to other sectors. To make such a comparison, we use patent data to estimate field-specific spillover returns generated by R&D support. Supporting Clean presents itself as a win-win opportunity, yielding global returns one-eighth higher than those of an untargeted policy. Nevertheless, only a modest portion of the returns stays within country borders, raising the question of whether national interests distort efficient allocation. Our policy simulations underscore the benefits of supranational coordination in clean innovation policy, potentially boosting returns by approximately 25% for the EU and over 60% globally. Moreover, the EU benefits strongly from US Clean innovation spillovers, impacting the debate on the Inflation Reduction Act. Overall, we identify no explicit innovation policy tradeoff in tackling the twin challenges of economic growth and climate change but emphasize the necessity for international cooperation.
    Keywords: innovation, knowledge spillovers, clean technology, innovation policy, green transition, net-zero, patent data, Economic geography, Green Growth, Productivity, Technological change
    Date: 2023–07–12
  4. By: Thanh Tam Nguyen-Huu (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)
    Abstract: This research investigates the effects of FDI spillovers on the productivity of domestic firms by relying on unconditional quantile regression. Using panel data of Vietnamese enterprises over the period 2000–2012, we find evidence of positive spillovers for firms at the lower tails and negative spillovers for those at the upper tails of the productivity distribution. Time and the firm's legal status are other factors determining the effect of FDI spillovers. Notably, only low productivity state-own enterprises benefit from positive horizontal spillovers, but in the long run rather than in the short run.
    Keywords: FDI spillovers, Total factor productivity, Unconditional quantile regression
    Date: 2023–07–11
  5. By: Marieke Funck (first name last name) (Paderborn University)
    Abstract: As hackathons bring together participants of diverse backgrounds and skills to solve specific problems, they create a tension between the hackathon intention to create new ventures for innovation problems and the empowerment of the participants to engage in entrepreneurial action. While previous research focuses predominantly on aspects of hackathons that are related to their organization and outcomes, our study takes a fresh perspective by highlighting whether and how hackathons contribute to fostering entrepreneurial behavior at the individual level. Drawing on social cognitive theory, I construct a theoretical framework to show how hackathon characteristics (time pressure, competition-collaboration duality, lack of structure and guidance) influence entrepreneurial self-efficacy via mastery experiences, vicarious learning, social persuasion, and physiological states. Our work suggests that hackathons may not boost participants’ confidence in their entrepreneurial abilities (entrepreneurial self-efficacy) and their likelihood of developing a new venture. The findings can inform the design of hackathons and offer insights into mechanisms that promote entrepreneurial self-efficacy and entrepreneurial behavior after a hackathon. (abstract of the paper)
    Keywords: Hackathon; entrepreneurial self-efficacy; innovation process; participation (keywords)
    JEL: L26
  6. By: Damien Nouvel
    Abstract: It is evident that the COVID-19 pandemic has accelerated the adoption and popularity of proptech. Remote work, social distancing, and the need for contactless transactions have driven the need for enhanced solutions that enable virtual property tours, online lease signing, and other digital services. Such global growth of the proptech sector has been mirrored by accelerated funding campaigns, increased number of proptech startups, and unprecedent interest from real estate developers as well as policy makers. A specific shift has been observed in the networks of the proptech around the world. Industry associations, accelerators, incubators, co-working spaces, and other forms of collaboration and networking have played a decisive role in taking the proptech into the next level. However, this networking intensifying efforts were not only attributed to the crisis as a trigger, but also to well-developed international-local high-tech innovation linkages, active innovation personal networks, and, in most cases, regional public and private readiness to adopt the new changes. In this study, we adopt a complexity-evolutionary perspective to illustrate the evolution of the proptech networks before and after the Covid-19 pandemic. Such approach is allowing us to assess the emergence of a cluster of proptech through studying the linkages between real estate actors, high-tech actors and startups and the funding organisations. Notions such as small events, windows of opportunities, local-international pipelines, regional readiness and path dependency are employed to draw a quasi-full picture of the proptech ecosystem in the last five years and its perspective for the near future. The study is taking the French proptech market as a case study. Our paper introduces the theoretical approach and the preliminary results of this study.
    Keywords: Complex adaptive systems; innovation networks; proptech; real estate digitalisation
    JEL: R3
    Date: 2023–01–01
  7. By: Felix Bracht; Jeroen Mahieu; Steven Vanhaverbeke
    Abstract: We examine if a startup's legal form choice is used as a signal by credit providers to infer its risk to default on a loan. We propose that choosing a legal form with low minimum capital requirements signals higher default risk. Arguably, small relationship banks are more likely to use legal form as a screening device when deciding on a loan. Using data from Orbis and the IAB/ZEW Start-up Panel for a sample of German firms, we find evidence consistent with our hypotheses but inconsistent with predictions of several competing explanations, including differential demand for debt or growth opportunities.
    Keywords: Legal form, Minimum Capital Requirements, Signaling, Access to Debt, Financial Constraint
    Date: 2022–12–15
  8. By: Ganau, Roberto; Kilroy, Austin
    Abstract: We analyse growth pathways of European Union NUTS-3 regions from 2003 to 2017. We focus on lagging regions, using a taxonomy based on income level and long-run growth rate that combines the Cohesion Policy classification with that proposed under the ‘Catching Up’ initiative. We find that lagging areas can sometimes be found within larger and more prosperous regions, especially in Western Europe. We analyse the role of industrial structure, innovation and inward foreign direct investments as growth drivers, and find that economic growth is associated with different economic dimensions in different types of regions. The NUTS-3 scale of analysis is helpful to inform the design and implementation of development strategies catering to different opportunities at this smaller geographical scale.
    Keywords: development policy; economic growth; European Union; NUTS-3 regions; World Bank Group
    JEL: R11 R58
    Date: 2023–01–02
  9. By: Rojab, Ahmad
    Abstract: The intricate relationship between business, information technology (IT), and education, exploring their convergence. The primary issue addressed is the dynamic interaction among these fields, emphasizing the transformation of education and business practices. The study aims to provide a comprehensive overview of interdisciplinary approaches in education and their implications for business and IT. Employing a systematic literature review methodology, the findings reveal that interdisciplinary models, collaboration between academia and industry, and the integration of IT are pivotal in fostering innovation and adaptability. Furthermore, emerging trends in technology adoption and pedagogical strategies for effective interdisciplinary learning are identified as promising research directions. The article underscores the significance of interdisciplinary education in preparing individuals for the evolving landscape of the digital age, while providing insights for educators, researchers, and practitioners navigating this dynamic terrain.
    Date: 2023–10–26
  10. By: Nicholas Bloom; Philip Bunn; Paul Mizen; Pawel Smietanka; Gregory Thwaites
    Abstract: We analyse the impact of Covid-19 on productivity using data from an innovative monthly firm survey panel that asks for quantitative impacts of Covid on inputs and outputs. We find total factor productivity (TFP) fell by up to 5% during 2020-21. The overall impact combined large reductions in 'within-firm' productivity, with an offsetting positive 'between-firm' effects as less productive sectors, and less productive firms within them, contracted. Despite these large pandemic effects, firms' post-Covid forecasts imply surprisingly little lasting impact on aggregate TFP. We also see significant heterogeneity over firms and sectors, with the greatest impacts in those requiring extensive in-person activity. We also ask about unmeasured inflation in the form of deteriorating product quality, finding an additional 1.4% negative impact on TFP.
    Keywords: impact, Covid-19, productivity, innovation, quantitative, TFP, forecasts, heterogeneity
    Date: 2022–12–15
  11. By: Groiss, Martin; Sondermann, David
    Abstract: Labour shortages have become prevalent across advanced economies. Yet, little is known about which firms are more likely to face them and the impact they have on the labour market. We create a firm-level data set spanning 28 EU countries, 283 regions and 18 sectors, contributing to close this gap. We find that structural factors play the dominant role. Firms in regions with limited labour supply as well as innovative and fast-growing firms are particularly prone to face labour shortages. Moreover, shortages tend to aggravate at business cycle peaks. In a second stage, we empirically determine the impact of labour shortages on wages and hiring. Firms with higher shortages pay a wage growth premium to keep and attract workers, increasingly so if they face excess demand. At the same time, those are the firms that hire less than the average. JEL Classification: C36, E24, J20, J23, J30
    Keywords: labour shortages, matching, shift-share instrument, tightness
    Date: 2023–11
  12. By: Bakkar, Yassine; Machokoto, Michael
    Abstract: Utilizing data from 31, 336 firms across 69 countries over the period 2011-2017, we find evidence suggesting macroprudential policies have a significant negative impact on corporate debt, particularly long-term debt. We further find that macroprudential policies have heterogeneous effects, with a greater impact observed among firms facing binding credit constraints and high market competition, as well as those operating in countries with less developed institutions. These findings underscore the importance of institutional factors in determining the effectiveness of macroprudential policies.
    Keywords: Capital structure, debt maturity, macroprudential policies
    JEL: G20 G30 G32
    Date: 2023
  13. By: Thanh Tam Nguyen-Huu (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie); Ngoc‐sang Pham
    Abstract: The paper investigates the optimal strategy of a small open economy receiving FDI in an optimal growth context. We prove that no domestic firm can enter the new industry when the multinational enterprise's productivity or the fixed entry cost is high. Nevertheless, the host country's investment stock converges to a higher steady state than an economy without FDI. A domestic firm enters the new industry if its productivity is high enough. Moreover, the domestic firm can dominate or even eliminate its foreign counterpart.
    Keywords: Optimal growth, FDI spillovers, TFP, Fixed cost
    Date: 2023–10–18
  14. By: Alan Chernoff; Julapa Jagtiani
    Abstract: Fintech firms are often viewed as competing with banks. Instead, more recently, there has been growth in partnership and collaboration between fintech firms and banks. These partnerships have allowed banks to access more information on consumers through data aggregation, artificial intelligence/machine learning (AI/ML), and other tools. We explore the demographics of consumers targeted by banks that have entered into such partnerships. Specifically, we test whether banks are more likely to extend credit offers (by mail) and/or credit originations to consumers who would have otherwise been deemed high risk either because of low credit scores or lack of credit scores altogether. Our analysis uses data on credit offers based on a survey conducted by Mintel, as well as data on credit originations based on the Federal Reserve’s Y-14M reports. Additionally, we analyze a unique data set of partnerships between fintech firms and banks compiled by CB Insights to identify the relevant partnerships. Our results indicate that banks are more likely to offer credit cards and personal loans to the credit invisible and below-prime consumers — and are also more likely to grant larger credit limits to those consumers — after the partnership period. Similarly, we find that fintech partnerships result in banks being more likely to originate mortgage loans to nonprime homebuyers and that they increase the mortgage loan amounts that banks grant to nonprime buyers as well. Overall, we find that these partnerships could help to move us toward a more inclusive financial system.
    Keywords: Fintech; alternative data; fintech partnership; financial inclusion; credit invisible
    JEL: G21 G28 G18 L21
    Date: 2023–10–04
  15. By: Maarten de Ridder
    Abstract: This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs - such as software - can explain these trends. Intangibles reduce marginal costs and raise fixed costs, which gives firms with high-intangible adoption a competitive advantage, in turn deterring other firms from entering. I structurally estimate the model on French and U.S. micro data. After initially boosting productivity, the rise of intangibles causes a decline in productivity growth, consistent with the empirical trends observed since themid-1990s.
    Keywords: Productivity, Growth, Business Dynamism, Intangible Inputs, Market Power
    Date: 2022–12–20
  16. By: Jereco Jims J. Agapito (University of the Visayas); Liza Lorena C Jala (University of the Visayas); Rosemarie Cruz-Español (University of the Visayas); Anthony G Esguerra (University of the Visayas)
    Abstract: The school administrators adopted an "Entrepreneurial Attitude" approach to run the school profitably. Furthermore, administrators who embrace successful entrepreneur techniques were able to attain and establish an effective school, as the literature says. Using a descriptive survey method, this study determined the factors that affect the entrepreneurial attitudes of school administrators and faculty in selected universities and colleges in the 4th congressional district of Leyte through model generation. Hierarchical regression analysis showed that cognition is the most dominant and significant predictor of entrepreneurial attitude, which generated two models. An emergent model can enhance the lens to see a better picture of what school administrators should prioritize in improving their school management strategy. A simple model equation can be a foundation for enhancing someone's entrepreneurial attitude. A critical takeaway from the simple equation model was that enhancing someone's cognition can help school administrators transform their entrepreneurial mindset and attitude.
    Keywords: Entrepreneurial attitude, school administrators, hierarchical regression, aptitude, boundaries, cognition, Leyte, Philippines
    Date: 2022–12–30
  17. By: Marieke Funck (first name last name) (Paderborn University); Slawa Tomin (first name last name of second author) (Paderborn University (workplace of second author)); Rüdiger Kabst (first name last name of third author) (Paderborn University (workplace of third author))
    Abstract: In the dynamic environment of new venture teams (NVTs), where new information and diverse perspectives necessitate ongoing adaptation, intellectual humility assumes a central role. Intellectual humility is marked by openness to alternative viewpoints, recognition of the fallibility of personal beliefs and opinions, and the capacity to engage in fair and constructive negotiation. We investigate the role of intellectual humility in NVTs’ dynamics in terms of its influence on interpersonal conflict and information elaboration and how influence is distributed on the team. Our findings reveal that intellectual humility has a positive effect on the equal distribution of influence, reduces interpersonal conflict, and enhances information elaboration in NVTs. These findings expand our understanding of NVTs’ dynamics and provide valuable insights into the role of intellectual humility in the field of entrepreneurship. (abstract of the paper)
    Keywords: Intellectual humility; new venture teams; distribution of influence; interpersonal conflict; information elaboration (keywords)
    JEL: L26

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