|
on Small Business Management |
|
Issue of 2024‒02‒19
33 papers chosen by |
| By: | Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics) |
| Abstract: | This study explores the physiological evolution of entrepreneurship in the Robola PDO wine sector in Cephalonia, Greece, utilizing the Stra.Tech.Man Scorecard as a diagnostic tool. Focusing on micro-firms producing and marketing the Robola PDO wine variety, the research provides insights into the executives’ self-assessments of their strategic, technological, and management adaptation efforts from 2017 to 2021. The findings indicate that these firms exhibit a strong strategic ambition to improve their competitiveness, but encounter obstacles in technology and networking operations, as well as limitations in developing their human resources and their overall management methodologies. Furthermore, the study reveals that the companies’ innovation potential was enhanced during the COVID-19 pandemic. The study highlights the potential for developing a sophisticated regional wine brand and underscores the role of innovative entrepreneurs and government support in fostering a competitive and sustainable entrepreneurial ecosystem. |
| Keywords: | Business physiology; Stra.Tech.Man Scorecard; Cephalonian Robola |
| JEL: | B52 L10 L66 |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:duthrp:2023_002&r=sbm |
| By: | Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization) |
| Abstract: | The use of robots by firms can be expected to go hand in hand with higher productivity, higher product quality and more product innovation, which should be positively related to export activities. This paper uses firm level data from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate the link between the use of robots and export activities in manufacturing enterprises from the 27 member countries of the European Union. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use robots do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated robots premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of robots are positively related. |
| Keywords: | Robots, exports, firm level data, Flash Eurobarometer 486, kernel-regularized least squares (KRLS) |
| JEL: | D22 F14 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:426&r=sbm |
| By: | Martin, Ralf; Verhoeven, Dennis Johannes Mathijs |
| 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 |
| JEL: | O31 O33 O34 O38 Q55 Q58 |
| Date: | 2023–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121306&r=sbm |
| By: | Valentina Peruzzi (Sapienza University of Rome) |
| Abstract: | This paper investigates the impact of family ownership on firms’ adoption of open innovation strategies. Using data from the VIII UniCredit survey on medium-sized enterprises, we find that family ownership is positively and significantly associated with the adoption of open innovation models by firms. The propensity to engage in open innovation by family firms is particularly pronounced in firms involved in product innovation and in collaborations with suppliers. The paper also delves into the inherent characteristics of family owners, emphasizing that the positive association between family ownership and open innovation is largely driven by their long-term perspective and relational abilities. |
| Keywords: | open innovation; family firms; product innovation; process innovation; relational capital |
| JEL: | O36 G32 D22 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:lui:casmef:2401&r=sbm |
| By: | Lu, Shun (Nottingham University Business School China, University of Nottingham Ningbo, China); Glushenkova, Marina (Nottingham University Business School China, University of Nottingham Ningbo, China); Huang, Wei (Nottingham University Business School China, University of Nottingham Ningbo, China,); Matthews, Kent (Cardiff Business School) |
| Abstract: | This study explores the impact of relationship banking on the financial constraints and loan conditions of small and medium-sized enterprises (SMEs) in China. Our research contributes to the literature in several ways. First, we examine both the financial costs and loan benefits associated with SME relationship banking, extending the scope of existing literature. Second, our study is unique in its focus on micro-enterprises, rather than large-scale listed companies in China. Lastly, we enhance the quality of the analysis by using direct measures of firms’ spending on bank relationships and their financial constraints, drawn from a recent survey on SMEs in China. Our findings are twofold. On one hand, bank relationship spending significantly reduces financial constraints for SMEs by facilitating access to loans. On the other hand, while this spending enables SMEs to secure more bank credit and longer-term loans, it also results in higher interest rates, increased guarantee requirements, and overall dissatisfaction with loan services. Our research provides new insights into the role of 'guanxi' in China's credit market and its consequences. |
| Keywords: | SME Financing, Relationship Banking, China, Financial Constraints |
| JEL: | G21 L14 O53 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2024/5&r=sbm |
| By: | L. Serafini; E. Marrocu; R. Paci |
| Abstract: | This paper focuses on the impact of the Smart Specialisation Strategy (S3) and Industry 4.0 (I4) initiatives during the 2014-2020 programming period on firms' performance in Italy. By analysing European Regional Development Fund (ERDF)-funded projects under these frameworks, we use OpenCoesione data and a Difference-in-Differences approach to assess the effectiveness of S3 and I4 initiatives. Our results reveal that projects integrating I4 technologies within the S3 framework (S3I4 projects) significantly enhance firms' performance. This is particularly evident when compared to projects funded under other ERDF initiatives. The study highlights the importance of aligning S3 and I4 strategies with regional economic profiles and innovation capacities to maximise their impact. Our analysis underscores the role of these initiatives in driving innovation and economic growth. The results offer key insights for policymakers, suggesting that focused and strategic investment in S3 and I4 can lead to more effective regional innovation and development. |
| Keywords: | Industry 4.0;Innovation and firm Performance;Cohesion Policy;Counterfactual Impact Analysis;Smart Specialisation Strategy |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202403&r=sbm |
| By: | Mnahel Babgi (AMU - Aix Marseille Université); Benyamin Aghhavani-Shajari (Excelia Group | La Rochelle Business School); Marion Vieux (AMU - Aix Marseille Université) |
| Abstract: | Digitalization and internationalization have an important role in the growth of enterprises, especially small and medium enterprises (SMEs). Despite considerable attention to this topic in the literature, there is a need to synthesize and categorize diverse contributions to obtain a deeper understanding of how digitalization and internationalization have developed. This article aims to provide a holistic picture of the topic as a basis for future research and debate. A bibliometric analysis technique was used to analyse 246 publications in IB research to present a contextual picture of digitalization and a subsequent front analysis was conducted to supplement these findings. The way in which literature has evolved is divided into five phases: initiation, IT boom, turbulence, international relations, and evolution. Four major clusters were identified as: competitive advantage; business growth and market expansion; evolution and innovation; and theory building through case studies & research. Perspectives for future research are also provided. |
| Keywords: | Digital, Content Analysis, Digitalization, Internationalization, Bibliometric Analysis |
| Date: | 2023–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04398156&r=sbm |
| By: | Bergeaud, Antonin; Guillouzouic, Arthur |
| Abstract: | Following Bergeaud et al. (2022), we construct a new measure of proximity between industrial sectors and public research laboratories. Using this measure, we explore the underlying network of knowledge linkages between scientific fields and industrial sectors in France. We show empirically that there exists a significant negative correlation between the geographical distance between firms and laboratories and their scientific proximity, suggesting strongly localized spillovers. Moreover, we uncover some important differences by field, stronger than when using standard patent-based measures of proximity. |
| Keywords: | knowledge spillovers; technological distance; public laboratories |
| JEL: | O32 O38 R12 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121289&r=sbm |
| By: | Yi Jiang; Richard S.J. Tol (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom) |
| Abstract: | In the era of sustainability, firms grapple with the decision of how much to invest in green innovation and how it influences their economic trajectory. This study employs the Crepon, Duguet, and Mairesse (CDM) framework to examine the conversion of R&D funds into patents and their impact on productivity, effectively addressing endogeneity by utilizing predicted dependent variables at each stage to exclude unobservable factors. Extending the classical CDM model, this study contrasts green and non-green innovations' economic effects. The results show non-green patents predominantly drive productivity gains, while green patents have a limited impact in non-heavy polluting firms. However, in high-pollution and manufacturing sectors, both innovation types equally enhance productivity. Using unconditional quantile regression, I found green innovation's productivity impact follows an inverse U-shape, unlike the U-shaped pattern of non-green innovation. Significantly, in the 50th to 80th productivity percentiles of manufacturing and high-pollution firms, green innovation not only contributes to environmental sustainability but also outperforms nongreen innovation economically. |
| Keywords: | Green innovation, Crowding-out effects, Productivity, CDM framework, Quantile regression, Recentered influence function |
| JEL: | D24 O31 Q55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0124&r=sbm |
| By: | Koshy, Perumal |
| Abstract: | Indian entrepreneurial ecosystem and policy framework evolved over the years as one with potential to facilitate new venture creation at ease. The current ecosystem and regulatory framework is much more entrepreneur and small business friendly. Enterprise ecosystem and entrepreneurship approach has to focus on nurturing economic & business who take the economy & society in the path of a sustainable future, while contributing to Global Sustainability Objectives and to be attuned to facilitate the formalization of informal sector enterprises, ease of doing business for micro and small enterprises. This chapter is an attempt to look at key aspects of Indian entrepreneurial system, its evolution and as well as some of the challenges, entrepreneurship policies and approaches, startup ecosystem, training and skill development challenges and addresses focal areas in the formalization of informal sector enterprises into formal enterprise space and how they can potentially contribute in attaining sustainable development goals (SDGs). |
| Keywords: | Small and Micro Enterprises, Enterprise Ecosystem; Startup ecosystem, Informal Sector Enterprises, Reforms to facilitate enterprise formalization, Skill development, Sustainable Development Goals: SDG-8, SDG-8.3, SDG12 SDG-4 |
| JEL: | E60 E61 L5 L52 L53 |
| Date: | 2023–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119757&r=sbm |
| By: | Kauma, Bridget; Mion, Giordano |
| Abstract: | We propose a new data resource that attempts to overcome limitations of standard firm-level datasets for the UK (like the ARD/ABS) by building on administrative data covering the population of UK firms with at least one employee. We also construct a similar dataset for France and use both datasets to: 1) Provide some highlights of the data and an overall picture of the evolution of aggregate UK and French productivity and markups: 2) Analyse the spatial distribution of productivity in both countries at a fine level of detail - 228 Travel to Work Areas (TTWAs) for the UK and 297 Zones da'emploi (ZEs) for France - while focusing on the role of economic density. Our findings suggest that differences in firm productivity across regions are magnified in the aggregate by an increasing productivity return of density along the productivity distribution. |
| Keywords: | firm-level dataset; merging; BSD; FAME; VAT; FICUS; FARE; productivity; markups; UK; France; regional disparities; density |
| JEL: | R12 D24 |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121301&r=sbm |
| By: | Moloney, Kitty (Central Bank of Ireland); O'Gorman, Paraic (Central Bank of Ireland); O’Sullivan, Max (Central Bank of Ireland); Reddan, Paul (Central Bank of Ireland) |
| Abstract: | In this Note we focus on non-banks lending to small and medium-sized enterprises (SMEs). Understanding how non-bank lenders (NBLs) to SMEs fund themselves and the interconnections they have with other entities helps us to assess the lenders’ resilience and how their activities may impact the real economy. We find they have significant interconnections with European banks and other international financial entities, as well as with European parent non-financial companies (NFCs). We also present an activity-based taxonomy of NBLs to SMEs containing three main categories. Asset Finance Providers mainly receive funding through their (European) parent companies. Specialist Property and General Lenders rely on a mix of market-based sources of funding and the banking sector, and often borrow through variable rate loans. We suggest that Specialist Property Lenders are the most important category from a financial stability perspective as they are lending to a systemically important sector of the Irish economy, are specialist lenders (increasing concentration risk) and appear to be more sensitive to current financial conditions. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:fsnote:11/fs/23&r=sbm |
| By: | Dienes, Christian; Schneck, Stefan; Wolter, Hans-Jürgen |
| Abstract: | This research note examines the relationship between start-up rates and GDP per capita growth in urban and rural regions in Germany. Hereby, we take into account that urban and rural areas differ markedly in their resource endowment for entrepreneurship, which might be responsible for different effects of start-up activity on regional development. Therefore, we examine the growth implications rural entrepreneurship might have on the local economy. Our results suggest that new business formation is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties. The results also unveil that the often-cited inverse U-shaped relationship between entrepreneurship and GDP growth is mainly evident in rural areas. |
| Keywords: | Regional growth, entrepreneurship, start-up rate |
| JEL: | L26 O18 O47 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmwps:281788&r=sbm |
| By: | Marcelo S. Tedesco; Francisco Javier Ramos Soria |
| Abstract: | This study offers an examination of grassroots innovation actors and their integration within larger economic ecosystems. Through a comparative analysis in Oaxaca, Mexico; La Plata, Argentina; and Araucania, Chile, this research sheds light on the vital role that grassroots innovation plays in broader economic ecosystems. Using Complex Network Analysis and the TE-SER model, the study unveils how these actors interact, collaborate, and influence major economic ecosystems in the context of complex social challenges. The findings highlight that actors from the grassroots innovation ecosystem make up a significant portion of the larger innovation-driven entrepreneurial economic ecosystem, accounting for between 20% and 30% in all three cases and are strategically positioned within the ecosystem's structural network. Additionally, this study emphasizes the potential for greater integration of grassroots innovation actors to leverage resources and foster socio-economic development. The research concludes by advocating for further studies in similar socio-economic contexts to enhance our understanding of integration dynamics and mutual benefits between grassroots innovation ecosystems and other larger economic systems. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.06163&r=sbm |
| By: | Adel Ben Youssef (UCA - Université Côte d'Azur); Mounir Dahmani (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, UGAF - Université de Gafsa - Sidi Ahmed Zarroug) |
| Abstract: | In the context of an increasingly digitized global marketplace, this study seeks to shed light on its adoption in developing countries, focusing on Morocco. Applying logit, probit, and conditional mixed-process probit models to a sample of 807 Moroccan firms, we identify key factors that influence e-commerce adoption. The results show that younger, innovation-driven firms and those with a highly educated workforce tend to adopt e-commerce more readily. However, digital skills required in hiring do not significantly affect adoption, suggesting a complex relationship between digital skills and e-commerce use. The results also show that firms that are active on digital platforms and engage in innovative practices are more likely to adopt e-commerce. Therefore, this study argues for the need to improve digital skills training and for firms to establish a presence on digital platforms and promote innovation. On the policy front, the study suggests the promotion of supportive policies such as financial assistance, improved Internet infrastructure, and robust regulatory frameworks. As an important starting point for future research, these findings underscore the complexities of e-commerce adoption in Morocco and can guide further research, particularly in the context of similar emerging economies. |
| Keywords: | technology adoption, e-commerce, facilitating conditions, qualitative, Moroccan firms, logit, probit, conditional mixed process-probit model |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04374231&r=sbm |
| By: | J.J. Harrigan; Ariell Reshef (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Farid Toubal (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research - CEPR, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study the impact of techies—engineers and other technically trained workers—on firm-level productivity. We first report new facts on the role of techies in the firm by using French administrative data and unique surveys. Techies are STEM-skill intensive and are associated with innovation, as well as with technology adoption, management, and diffusion within firms. Using structural econometric methods, we estimate the causal effect of techies on firm-level Hicks-neutral productivity in both manufacturing and non-manufacturing industries. We find that techies raise firm-level productivity, and this effect goes beyond the employment of R&D workers, extending to ICT and other techies. In non-manufacturing firms, the impact of techies on productivity operates mostly through ICT and other techies, not R&D workers. Engineers have a greater effect on productivity than technicians. |
| Keywords: | productivity, R&D, ICT, techies, STEM skills. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-04429434&r=sbm |
| By: | Juan-Andrés Castro; Enzo A. Cerletti |
| Abstract: | We address two main questions: (i) how do firms respond to an unanticipated shock to their cash flows, and (ii) what is the role of financial constraints in mediating such response? To answer these questions, we study the behavior of Chilean firms during the 2019 social unrest, which caused a series of disruptions to the firms’ activity over several months. Exploiting quasi-experimental variation in the exposure of firms to these incidents, we find that more exposed firms experience larger declines in sales, larger employment losses, and are more likely to fall behind in their financial obligations than less affected firms. Moreover, these responses are significantly stronger for those firms more likely to be financially constrained. A back-of-the-envelope calculation suggests that constrained firms translate almost half the decline in sales into lower demand for labor and intermediate inputs, more than double the transmission of unconstrained firms. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:chb:bcchwp:995&r=sbm |
| By: | Di Cataldo, Marco; Ferranna, Licia; Gerolimetto, Margherita; Magrini, Stefano |
| Abstract: | This article analyzes institutional changes in local governance structures as determinants of wage premium and innovation capacity of urban areas. By combining individual and metropolitan area data for the US, we study the role of institutional fragmentation, related to the number of local governments operating in an area, and institutional coordination, stemming from the creation of authorities fostering the collaboration of local governments. Our findings suggest that more fragmented institutional landmarks do not benefit the wage competitiveness and innovativeness of urban areas. If anything, they harm them. Conversely, stronger coordination among local governments boosts the productivity of functional regions by increasing their wage premium and improving their capacity to innovate. Coordination agreements between different counties or municipalities are especially relevant in the case of urban areas modifying their functional borders over time. These findings provide key insights into the economic effects of reforming the governance structure of metropolitan areas. |
| Keywords: | innovation; institutional coordination; institutional fragmentation; local governance; US MSAs; wage premium |
| JEL: | H70 R12 R23 J30 |
| Date: | 2023–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117956&r=sbm |
| By: | Yang, Hoonsik (Korea Institute for Industrial Economics and Trade) |
| Abstract: | When a supplier agrees to deliver goods or services to a buyer under a fixed-price contract, fluctuations in raw material costs over the contract period influence the supplier’s profit. A sudden and unexpected increase in raw material costs (as seen in recent years following the Russian invasion of Ukraine and the disruptions to global supply chains caused by the COVID-19 pandemic) can be detrimental to suppliers, especially to small and medium-sized enterprises (SMEs). It is frequently argued that SMEs are prominent in South Korea. SMEs account for 99.9 percent (7.71 million) of all firms in South Korea. SMEs employ 80.9 percent of all workers (18.5 million), and annual sales generated by SMEs account for 46.8 percent of all sales nationwide (over KRW 3.07 quadrillion). In addition, a significant proportion of SMEs engage in subcontracting. A survey estimates that 50.6 percent of manufacturing SMEs participated in subcontracting in 2021. Despite the preponderance of SMEs in the economy, when SME suppliers request price adjustments in response to sudden increases in raw material costs they are (allegedly) not very successful. Given this, there had long been calls for the government to mandate price adjustments in subcontracting contracts to mitigate unexpected profit losses faced by suppliers when raw material costs suddenly increase. In October 2023, a mandatory price adjustment scheme for subcontracting contracts went into effect in South Korea. This article briefly explains how the policy works, introduces some discussions related to the adoption of the policy, and offers some economic perspectives on the policy. |
| Keywords: | subcontracting; small and medium-sized enterprises; SMEs; price adjustment scheme; price adjustment mechanism; subcontracting policy; contract theory; information asymmetry; transactional relationships; large corporations; contractor-subcontractor relationships; Korea; KIET |
| JEL: | C78 D23 L14 L24 |
| Date: | 2023–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2023_030&r=sbm |
| By: | Claire Bidart (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique); Rym Ibrahim (Kedge BS - Kedge Business School, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, UJM - Université Jean Monnet - Saint-Étienne, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | The transition to entrepreneurship is a complex process, and the study of which requires innovative adapted methods. The social sciences can help shed light on this process, considering in particular the social and technological contexts that are involved in these trajectories. In this chapter, we focus on the roles that personal networks of the entrepreneurs, combined with digital tools, play in accessing resources. We propose a precise scientific method to better understand the emergence of resources from personal networks along the entrepreneurial processes. Indeed, a very precise and longitudinal collection of personal network data allows to better shed light on the emergence of resources and opportunities during the entrepreneurial process, sometimes in unexpected pockets. This method is particularly powerful for considering relationship-based strategies for finding resources and opportunities, including when relationships are distributed across multiple geographical locations or are digitally mediated. Our network analysis relies on four dimensions: quality of alters (meeting context, similarity, diversity, etc.), of ties (strength, focus, emotional intensity, etc.), of whole network structure (density, modularity, centralization, etc.), and of alters' positioning in the structure. Finally, we directly illustrate our propositions through the specific case study of a recruiter who started and managed to develop his activity on his own, as a digital nomad. |
| Keywords: | Digital Nomadism, Social Network Analysis, Entrepreneurial Process, Processual Analysis, Methodology |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04383505&r=sbm |
| By: | Damien Girollet (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | AbstractThis paper investigates digital inequalities in usage within African informal sectors. In particular, we examine whether the uneven digital diffusion is embedded in pre‐existing socio‐economic inequalities. After identifying three segments of informal firms, we rely on multivariate and decomposition analyses to identify predictors of usage of digital technologies for business purposes and explain usage gaps between segments. Our findings suggest that digital inequalities are rooted in the vertical heterogeneity of informal sectors, with some firm characteristics significantly predicting professional use of digital technologies. In addition, we find that there are both common and segment‐specific levers for addressing digital inequalities between informal firms. |
| Keywords: | Africa, Digital divide, ICT, Digital technology, Informal sector |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04395947&r=sbm |
| By: | Miguel Acosta-Henao; Sangeeta Pratap; Manuel Taboada |
| Abstract: | We evaluate the mechanisms behind relationship lending and its macroeconomic consequences. Using confidential credit registry data merged with firm tax records in Chile, we find that a closer relationship with a bank gives firms access to more credit at better terms. More productive and larger firms have closer relationships with banks. We build a dynamic model of firm behavior where firms choose their relationship status jointly with investment and borrowing decisions. Calibrating the model to Chilean data, we find that borrowing in relationships allows for greater screening and monitoring of firms, provides implicit guarantees to other creditors and necessitates a lower amount of collateral. More productive firms select into relationships, and relationship lending allows for larger loans at lower interest rates. Counterfactual experiments indicate that the effects of relationship lending are large. Extending these benefits to all firms results in an increase of almost 30 percent in aggregate output, capital and TFP. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chb:bcchwp:999&r=sbm |
| By: | Hanna Berkel; Finn Tarp |
| Abstract: | Worldwide, enterprises are hit by disasters such as cyclones and floods. Despite being impacted negatively, most enterprises do not prepare for future disasters. This study aims at understanding the determinants of enterprises' disaster preparedness. It first examines whether specific socio-psychological characteristics of entrepreneurs are associated with their enterprises' disaster preparedness. The second step includes an experiment providing enterprises with information about six specific and easy-to-implement measures of disaster preparedness. |
| Keywords: | Natural disasters, Firms, Informality, Information |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-2&r=sbm |
| By: | Mattia Guerini (UniBs - Università degli Studi di Brescia = University of Brescia, FEEM - Fondazione Eni Enrico Mattei [Milano]); Lionel Nesta (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Xavier Ragot (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Stefano Schiavo (UNITN - Università degli Studi di Trento, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | This paper evaluates the risk of zombification of the French economy during the COVID-19 pandemic crisis, as a result of the unconditional financial support provided to firms by public authorities, to limit the impact of lockdown measures. We develop a simple theoretical framework based on a partial-equilibrium model to simulate the liquidity and solvency stress faced by a large panel of French firms and assess the impact of government support. Simulation results suggest that those policies helped healthy but illiquid firms to withstand the shock caused by the pandemic. Moreover, the analysis finds no evidence of a "zombification effect", as less productive companies did not disproportionately benefit from government support. |
| Keywords: | Covid-19, zombie firms, job-retention, schemes, microsimulation, policy evaluation |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04384037&r=sbm |
| By: | Prince HIKOUATCHA (University of Dschang, Dschang, Cameroon); Alain G. TAGNE FOKA (University of Dschang, Dschang, Cameroon); Armand D. FOSSI (University of Dschang, Dschang, Cameroon); Simplice A ASONGU (Johannesburg, South Africa) |
| Abstract: | Recent and ongoing advancements in the field of ICT have led to the introduction of increasingly diversified financial products, and their use is improving people's level of financial knowledge and skills. This article aims at assessing the effect of Fintech on the level of financial literacy of small business’ managers in Cameroon. To this end, information was gathered using a questionnaire from 209 small business managers in Cameroon. Descriptive statistics, Principal Component Analysis (PCA), and multiple linear regression are used. Results lead to two main conclusions. On the one hand, unlike knowledge of their existence, the frequency of use of Fintech tools is better able to contribute to improving financial literacy levels overall. On the other hand, specifically, this result is more important when it comes to competence and self-confidence in managing financial affairs. As a result, increasing the utilization of financial technology instruments in companies is imperative for efficiency. |
| Keywords: | Financial Skill; Financial Knowledge; Financial literacy; Fintech; Small business |
| JEL: | G53 M2 O33 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/070&r=sbm |
| By: | Engberg, Erik (Örebro University); Görg, Holger (Kiel Institute for the World Economy); Lodefalk, Magnus (Örebro University); Javed, Farrukh (Örebro University); Längkvist, Martin (Örebro University); Monteiro, Natália Pimenta (University of Minho); Kyvik Nordås, Hildegunn (Council on Economic Policies); Schroeder, Sarah (Aarhus University); Tang, Aili (Örebro University) |
| Abstract: | We unbox developments in artificial intelligence (AI) to estimate how exposure to these developments affect firm-level labour demand, using detailed register data from Denmark, Portugal and Sweden over two decades. Based on data on AI capabilities and occupational work content, we develop and validate a time-variant measure for occupational exposure to AI across subdomains of AI, such as language modelling. According to the model, white collar occupations are most exposed to AI, and especially white collar work that entails relatively little social interaction. We illustrate its usefulness by applying it to near-universal data on firms and individuals from Sweden, Denmark, and Portugal, and estimating firm labour demand regressions. We find a positive (negative) association between AI exposure and labour demand for high-skilled white (blue) collar work. Overall, there is an up-skilling effect, with the share of white-collar to blue collar workers increasing with AI exposure. Exposure to AI within the subdomains of image and language are positively (negatively) linked to demand for high-skilled white collar (blue collar) work, whereas other AI-areas are heterogeneously linked to groups of workers. |
| Keywords: | artificial intelligence, labour demand, multi-country firm-level evidence |
| JEL: | E24 J23 J24 N34 O33 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16717&r=sbm |
| By: | Masashige Hamano (Faculty of Political Science and Economics, Waseda University); Toshihiro Okubo (Faculty of Economics, Keio University) |
| Abstract: | This paper investigates the dynamics specific to various firm cohorts and their implications at an aggregate level. Utilizing a structural model that incorporates entry, exit, and selection of heterogeneous firms, we demonstrate that the dynamics of firms from each generation, and thus the historical economic landscape, can be reconstructed. Moreover, we estimate generation-specific parameters in both demand and supply within our theoretical model, using Japanese data. Our findings reveal that fixed operational costs for firms established immediately after the Second World War are relatively lower compared to subsequent generations of firms, resulting in an increased market congestion for these early-born enterprises. |
| Keywords: | Heterogeneity; fixed cost; business cycles |
| JEL: | D24 E23 E32 L11 L60 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:wap:wpaper:2307&r=sbm |
| By: | Hélia Costa; Lilas Demmou; Guido Franco; Stefan Lamp |
| Abstract: | Despite the ambitious carbon reduction targets set by policy makers worldwide, current investments fall well short of the net-zero emissions scenario. This paper analyses the factors holding back corporate green investment, with a particular focus on the role of firm capacity – specifically financing constraints and weak green management practices – and its interaction with environmental policy. Combining a variety of econometric techniques, including panel data models, difference-in-differences settings and instrumental variable approaches, our cross-country analysis on large listed companies shows that: i) both financing constraints and a lack of green managerial capacity reduce firms’ probability of investing in green technologies, leading to higher emission intensity; ii) well-designed environmental policies can mitigate these impacts. A case study using more granular data on Portuguese firms further shows that: iii) green investment is more elastic to financing conditions than other types of investment; iv) investment in integrated technologies is more sensitive to financing conditions and to managerial capacity compared to end-of-pipe solutions. Lastly, the paper discusses a wide range of policy options that may be considered to foster the green transition through upgrading firms’ capacity. |
| Keywords: | Environmental policy, Financing constraints, Green investment, Green management |
| JEL: | D22 G32 Q52 Q58 |
| Date: | 2024–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1791-en&r=sbm |
| By: | Elisa Salvador (ESSCA Research Lab - ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Pierre-Jean Benghozi (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In recent years, attention towards the Cultural and Creative industries (CCIs) has been largely renewed. It has become a focal point in management researches for their weight in the economy as well as for their laboratory nature of creativity and innovation practices. Nonetheless, it is not clear whether the present attention towards the CCIs emerged because of internal sector dynamics or is the result of targeted institutional and political attention. Understanding the origin of this perspective and the structuring of associated concepts is important in terms of managerial practices and research: helping CCIs' development on the one hand or understanding and promoting awareness of CCIs on the other hand. In this perspective, this article highlights how the concept of CCIs has gradually imposed itself. It focuses on the context of the European Union. We argue that a thorough analysis of the content of the various Communications issued by the European Commission helps to weigh up the growing weight of CCIs' issues, in what sense and meaning the concept has been mobilized, and its place in public policy actions, beyond long-established cultural policies. |
| Abstract: | Ces dernières années, l'attention portée aux industries culturelles et créatives (ICC) s'est largement renouvelée. Celles-ci sont en effet devenues un point focal des recherches en économie et gestion du fait de leur poids dans la société ainsi que par leur caractère de laboratoire des modes de créativité et d'innovation. On peut néanmoins s'interroger pour savoir si cette attention portée aux ICC a émergé en raison de la dynamique interne propre au secteur ou si elle n'est pas plutôt le résultat d'un ciblage des politiques publiques mettant ce secteur particulièrement en avant. Comprendre l'origine de l'attention portée aujourd'hui aux ICC et celle de la génération des concepts associés est donc important particulièrement intéressant à la fois pour mieux appréhender les stratégies sectorielles et pour éclairer la structuration et la construction des thématiques de recherche associées. Dans cette perspective, cet article éclaire, à partir du contexte européen, la manière dont le concept d'ICC s'est progressivement imposé dans le champ institutionnel. L'analyse approfondie du contenu des différentes communications émises, au fil des ans, par la Commission européenne permet de mesurer le poids croissant qu'y ont pris des enjeux des ICC, la manière dont la signification et le sens de la notion ont été construits, la place qu'elle a prise dans les actions publiques au-delà de politiques culturelles établies de longue date. |
| Keywords: | creative and cultural industries, Communications, culture, public policy, European Commission, text analysis |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04386344&r=sbm |
| By: | Bräuer, Richard |
| Abstract: | This paper proposes a model that explains both recently documented facts about the decline of disruptive innovation and the decline in productivity growth as the result of large firms trying to monopolize technologies by poaching inventors from disruptive activities. To come to this conclusion, the paper builds an endogenous growth model with inventor labor markets on which firms can interact strategically. To inform this model, I perform an event study of the effect of disruptive inventions on their technology fields using PATSTAT (1980-2010). I document that technology classes without disruption slowly trend towards incrementalism and that after a disruption, more patents get registered and research becomes less incremental. |
| Keywords: | disruptive innovation, general equilibrium, general purpose technology, innovation strategies, inventor labor markets, microeconometrics |
| JEL: | J24 J42 J44 O12 O33 O41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:281190&r=sbm |
| By: | Sara Zouiri (Mohammed V University in Rabat) |
| Abstract: | The informal sector, a key feature of African economies, can cause significant distortions that result in loss of growth and constrain countries’ development. Many papers have shown that at the firm level, the informal sector may impact the performance of the formal sector through competition. The purpose of this study is to examine the relationship between informal sector competition and labor productivity in the formal sector in Africa. To this end, we use data from the World Bank Enterprise Survey (WBES) conducted between 2009 and 2020 for 36 African countries. The regression results reveal a negative and statistically significant relationship between informal sector competition and labor productivity. The policy implications are twofold. First, policies to reduce the size of the informal sector and/or prevent negative spillovers from informal competition are required to improve productivity. Second, in order to stimulate the formal sector and promote its expansion, policy measures to improve the macroeconomic and institutional context of the region are needed.Length: 25 |
| Date: | 2023–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1689&r=sbm |
| By: | Sarah McNamara (ZEW Mannheim); Guido Neidhöfer (ZEW Mannheim); Patrick Lehnert (University of Zurich) |
| Abstract: | We estimate intergenerational mobility of education for people born 1940-1999 at the subnational level for 40 European countries. The result is a panel of mobility indices for 105 mesoregions (NUTS1), and 215 microregions (NUTS2). We use these indices to make three contributions. First, we describe the geography of intergenerational mobility in Europe. Second, adapting a novel weighting procedure based on cohorts’ relative economic contribution, we transform cohort-linked measures into annual measures of intergenerational mobility for each region. Third, we investigate the relationship between intergenerational mobility and innovation, and find robust evidence that higher mobility is associated with increased innovation. |
| Keywords: | Intergenerational Mobility, Equality of Opportunity, Human Capital, Innovation, Regional Economic Performance, Europe |
| JEL: | D63 I24 J62 O15 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2024-664&r=sbm |
| By: | TSURUTA Daisuke |
| Abstract: | We investigate what types of small businesses use bank loans during crisis periods, focusing on the global financial crisis (GFC) and the economic crisis caused by the coronavirus pandemic (COVID-19 crisis). Using comprehensive data on small businesses in Japan, we obtain the following results. First, during these two crisis periods, small businesses with low cash flow, high credit risk, and low sales growth borrowed more from banks. Second, these firms borrowed more during the COVID-19 crisis than during the GFC. Furthermore, ex post profitability of these firms was lower during the COVID-19 crisis, which was special in that vulnerable firms borrowed more from banks. Third, the increases in probability of default were not large during the early stages of the COVID-19 crisis but were economically significant in 2021. These results imply that massive financial support during the COVID-19 crisis delayed firm defaults. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24007&r=sbm |