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on Small Business Management |
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Issue of 2024‒03‒25
23 papers chosen by |
| By: | Rajesh Raj Natarajan; Kunal Sen |
| Abstract: | The documented under-representation of marginalized groups in business ownership and the labour market is a concerning issue. This study explores how caste disparities in small-firm entrepreneurship impact on firm performance in India, focusing on the informal sector. Our examination shows a significant productivity gap between firms owned by disadvantaged castes and others, including Other Backward Classes and Forward Castes, across the productivity distribution. |
| Keywords: | Caste, Productivity gap, Informal sector, Firms, Discrimination, India |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-4&r=sbm |
| By: | Mitra, Alessio; Di Girolamo, Valentina; Canton, Erik |
| Abstract: | This paper studies the firm-level drivers of product, process, organisation and marketing innovation in the EU with panel data from 2009 to 2021. Employing conditional logit and linear probability models we investigate how firms’ characteristics, firms’ sources of financing, and firm perception of different challenges influence their likelihood to innovate. In line with the academic literature, we find that firms’ size and profit level improve firms’ innovation performance, while firms’ age decreases it. We also observe that the effectiveness of different financing instruments varies considerably depending on whether the company is pursuing product, process, organisation or marketing innovation. Finally, innovative firms more frequently report access to finance and regulations as important challenges for their future, while the relevance of other challenges (e.g. the availability of skilled staff or finding customers) varies depending on what type of innovation activities companies are engaged in. |
| Keywords: | Access to finance, Financing instruments, Innovation challenges, Firm innovation |
| JEL: | G20 G23 O30 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283909&r=sbm |
| By: | Mirella Schrijvers; Jan Jacob Vogelaar |
| Abstract: | High-growth firms are known to contribute extraordinarily to economic growth and job creation, but concerns have been raised about their exclusionary focus on creating shareholder value. This paper adopts a stakeholder capability perspective to investigate social value creation by high-growth firms. Interviews with founders and CEOs of high-growth firms in the Netherlands provide insight into the mechanisms through which these firms create and destroy value for their stakeholders. We find that the rapid growth these firms experience can be a driver of some unique growth-related value creation mechanisms and serves as an amplifier of more general value creation mechanisms. The value creation of high-growth firms is shaped by certain firm attributes. This results in a typology of high-growth firms from a stakeholder value perspective, indicating three types: profit-driven high-growth firms, conscious high-growth firms, and mission-driven high-growth firms. While rapid growth presents firms with unique challenges and trade-offs between stakeholders, we argue that, if directed well, it also creates opportunities to substantially increase their social value creation. The heterogeneity of high-growth firms with respect to stakeholder value creation raises the question whether targeting high-growth firms in general is good entrepreneurship policy. |
| Keywords: | High-growth firms, Value creation, Stakeholder capabilities |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2307&r=sbm |
| By: | Samuel Bazzi; Marc-Andreas Muendler; Raquel F. Oliveira; James Rauch |
| Abstract: | This paper explores how financial constraints distort entry decisions among otherwise productive en- trepreneurs and limit growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit constraints can induce more entry of firms with greater long-run growth potential than the easing of conventional entry barriers would bring about. We study this growth mecha- nism using a large-scale program to expand the supply of credit to small and medium enterprises in Brazil. Local credit supply shocks generate greater firm entry but also greater exit with no effect on short-run employment growth in the formal sector. However, credit expansions increase average capability among entering firms, which enter at larger size, survive longer, and grow faster. These firm dynamics are more pronounced in areas with ex ante weaker credit markets and consistent with local bank branches using cheap targeted credit lines to expand lending more broadly. Our findings provide new evidence on the general equilibrium effects of credit supply expansions. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:589&r=sbm |
| By: | Josh Lerner; Junxi Liu; Jacob Moscona; David Y. Yang |
| Abstract: | Global innovation and entrepreneurship has traditionally been dominated by a handful of high-income countries, especially the US. This paper investigates the international consequences of the rise of a new hub for innovation, focusing on the dramatic growth of high-potential entrepreneurship and venture capital in China. First, using comprehensive data on global venture activities, we show that as the Chinese venture industry rose in importance, entrepreneurship increased substantially in other emerging markets, particularly in sectors dominated by Chinese companies. Using a broad set of country-level economic indicators, we find that this effect was driven by country-sector pairs most similar to their counterparts in China. Second, turning to mechanisms, we show that the baseline findings are driven by local investors and by new firms that more closely resemble existing Chinese companies. Third, we find that this growth in emerging-market investment had wide-ranging positive consequences, including a rise in serial entrepreneurship, cross-sector spillovers, innovation, and broader measures of socioeconomic well-being. Together, our findings suggest that developing countries benefited from more “appropriate” businesses and technology pioneered by China, and that a system where only rich countries lead in innovation could limit entrepreneurial activity in large parts of the world. |
| JEL: | O11 O33 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32193&r=sbm |
| By: | Mitra, Alessio; Niakaros, Konstantinos |
| Abstract: | This paper evaluates the causal impact of the Horizon 2020 Framework Programme for Research and Innovation on financial firm-level outcomes using a Difference-in-Differences (DiD) approach. We use administrative data from CORDA and financial data from ORBIS spanning from 2010 to 2022, for a sample of approximately 40 thousand unique private companies that applied for Horizon 2020 funding. The findings suggest that firms receiving Horizon 2020 grants exhibit an average increase of 20% in employment and about 30% in total assets and revenues, compared to comparable companies in the control group, in the years after receiving their first grant. Positive effects persist even after 2.5 years, which is the average duration of a project in our sample. Companies in the “Information and communication” and “Professional, scientific and technical activities” NACE sectors are driving the results, while other sectors show insignificant effects. |
| Keywords: | Horizon 2020, Difference-in-Differences, European Union, Innovation policy |
| JEL: | G38 L52 O38 D22 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:283906&r=sbm |
| By: | Bijnens, Gert; Anyfantaki, Sofia; Colciago, Andrea; De Mulder, Jan; Falck, Elisabeth; Labhard, Vincent; Lopez-Garcia, Paloma; Meriküll, Jaanika; Parker, Miles; Röhe, Oke; Schroth, Joachim; Schulte, Patrick; Strobel, Johannes; Lourenço, Nuno |
| Abstract: | The impact of climate change on European Union (EU) countries and regions is poised to exhibit considerable diversity, influenced by factors encompassing average temperature, sectoral composition, developmental stages, and adaptation endeavours. The transition towards a more climate-friendly economy demands a well-orchestrated approach to mitigate enduring productivity costs. This shift will have varied implications for businesses, contingent upon their scale, access to financial resources, and capacity for innovation. The formulation of transition policies holds the potential to foster green innovation without displacing other initiatives, yet stringent climate regulations might impede the productivity ascent of pollutant-emitting enterprises. It will thus take time to reap the benefits of innovation. The efficacy of the policy mix is of critical importance in determining the trajectory of success. Market-driven mechanisms exhibit milder distortions compared to non-market-based strategies, though they may not inherently stimulate innovation. Significantly, subsidies earmarked for green research and development (R&D) emerge as a pivotal instrument for fostering innovation, thus constituting a vital component of the policy repertoire during the green transition. The implementation of transition policies will inevitably trigger a substantial reallocation of resources among and within sectors, potentially carrying short-term adverse ramifications. Notably, considerable productivity disparities exist between top and bottom emitters within specific industries. The transition period poses a risk to a substantial proportion of firms and can erode employment opportunities, with a likely decline in new ventures within affected sectors. JEL Classification: D24, L52, O33, O38, Q54, Q58 |
| Keywords: | climate change impact, climate transition policies, economic reallocation, green innovation, physical risk, productivity, transition risk |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2024340&r=sbm |
| By: | Rachid Achbah (UL2 UFR SEG - Université Lumière - Lyon 2 - UFR de Sciences économiques et de gestion - UL2 - Université Lumière - Lyon 2) |
| Abstract: | This study aims to empirically investigate the impact of managers' characteristics on their choice between in-court and out-of-court restructuring. Based on the theory of upper echelons, we tested the preferences of 342 managers of financially distressed French firms regarding restructuring decisions. The overall findings of this study provide empirical support for the upper echelons theory. Specifically, managers with a long tenure and those with a high level of education are less likely to restructure before the court and are more likely to restructure privately. The findings also indicate that managers' age and gender do not significantly affect their choice between in-court and out-of-court restructuring. This study contributes to the literature on bankruptcy and corporate restructuring by turning the focus from firm characteristics to manager characteristics to explain restructuring decisions. |
| Keywords: | SMEs, Insolvency proceedings, Manager characteristics, Restructuring, Upper echelons theory |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04279942&r=sbm |
| By: | Bao-We-Wal Bambe; Jean-Louis Combes; Pascale Combes Motel; Chantale Riziki Oweggi |
| Abstract: | We investigate the impact of climate change on firms’ investment in research and development (R&D) in developing countries. The paper relies on two contrasting hypotheses. In the first hypothesis, we speculate an optimistic situation where climate change could induce firms to spend on R&D to both reduce their environmental impact and curb the effects of future climate shocks. In the second hypothesis, we propose a pessimistic scenario where climate change would reduce firms’ incentives to invest in R&D. This second hypothesis would mainly be due to tighter conditions for access to finance from lenders, given the increased uncertainty about the firm’s future returns in the face of climate change. The empirical results support the second scenario, small firms being more severely affected. Furthermore, we examine the underlying mechanisms and identify financial access as the key channel through which climate change reduces R&D investment. |
| Keywords: | Climate change • Firm innovation • Developing Countries |
| JEL: | D22 O3 Q54 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp03122024&r=sbm |
| By: | Ramirez Chaparro, Maria Nathalia; Chacón Mejía, Catalina |
| Abstract: | This research paper examines the role of industrial policies and innovation strategies in Latin America's quest for economic development. Despite the region's potential, persistent challenges such as coordination deficits and limited technology absorption continue to impede progress. Through a review of productivity data and historical perspectives on industrial policies in four Latin American countries, this paper highlights the complexities of state intervention and the importance of strategic alignment with innovation agendas. Additionally, it explores the interplay between industrial policies and innovation strategies, emphasizing the need to nurture indigenous capabilities and promote inclusive innovation. By challenging conventional views on informality in the labor market, this paper advocates for a holistic approach that integrates targeted industrial policies with innovation strategies to drive sustainable growth and inclusive prosperity in Latin America. |
| Keywords: | innovation strategies, structural change, industrial policies, Latinamerica |
| JEL: | O1 O3 O35 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120240&r=sbm |
| By: | Malte Schlosser (University of Zurich); Ester Trutwin (University of Zurich); Thorsten Hens (University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute) |
| Abstract: | We examine whether a company’s green and high–quality innovative strength is related to its environmental impact and what the implications are for its financial performance. By analyzing WIPO patent data and MSCI ESG data, we reveal a notable positive and statistically significant impact of possessing more green patents on a company’s carbon emissions score. Further, we find that the patent related increase in carbon emissions score is driven by the high–quality green patents. Our analysis validates the positive influence of green and high–quality innovation strength on both the E and ESG scores. Despite the positive impact on the environment, investors do not need to sacrifice returns. Investment strategies which invest in companies within the top decile of green patents or green patents ratio do not perform worse than the market. |
| Keywords: | WIPO, Green Innovations, Carbon Emissions Score, ESG Scores, Correlation Analysis, Performance Analysis, Fama–French Analysis |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2418&r=sbm |
| By: | Asyahid, Esa A. (Warwick University) |
| Abstract: | Although local government splits have been widely implemented in developing countries, there is limited empirical evidence on their effects on economic activities. This study investigates the impacts of district splits on household business activities using a rich household-level panel dataset that spans over 20 years and covers an episode of massive district splits in Indonesia. Using a difference-in-differences approach, I found that district splits do not improve non-farm business revenue growth. Instead, they drive more businesses to exit from the industry. On the other hand, district splits improve farm business revenue growth and entry into this industry. However, the growth effect is not driven by productivity improvement as expected, but solely the result of land input expansion, which is likely acquired in unsustainable ways. Additionally, district splits decrease out-migration, aligning with the Tiebout sorting model. Taken together, these findings add another argument for the need to reevaluate the current practices and regulations on local government splits. |
| Keywords: | D13 ; D73 ; H77 JEL classifications: local government splitting ; Indonesia ; household business ; difference-indifference |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wrkesp:70&r=sbm |
| By: | Phumlani Nkontwana; Erik Stam |
| Abstract: | Many regions and countries aim to copy a Silicon Valley model of entrepreneurship-led development. We argue that this is misguided, in general, and in low income economies even more. We advocate an alternative approach that can be adapted to local context, with respect to both conditions and outcomes. We focus on a context with low incomes and massive population growth, with large cohorts of youngsters entering the economy: Africa. In this context there is a huge need for well-functioning entrepreneurial ecosystems to enable private sector development and more fundamentally to have the talents of a large new generation flourish and to tackle gigantic sustainable development challenges. We argue that for the entrepreneurial ecosystem approach to be useful for African economies it needs to be meaningful for the stakeholders involved, and that this can be achieved with locally-embedded narratives about the future of entrepreneurship in Africa. We analyze entrepreneurial ecosystem narratives that inform theory and policy practice of entrepreneurship-led development in Africa. Our argument is that for Africa, and other low income economy contexts as well, we need to embrace entrepreneurial ecosystem narratives that suit the local context and envisioned futures of the local stakeholders |
| Keywords: | entrepreneurial ecosystems, entrepreneurship-led developmentvelopment, Africa, context, narratives, futuring |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2305&r=sbm |
| By: | Bullipe R. Chintha; Ravi Jagannathan; Sri S. Sridhar |
| Abstract: | China's admission into the WTO in 2001 heralded a new era of globalization, increasing both import competition in domestic markets and foreign opportunities for US firms. In the aggregate, the average annual profitability of US public firms during the post globalization period (2003-2019) increased by 11.5% of the corresponding pre-globalization period (1984-2002) profitability. This increase in overall aggregate profitability was primarily driven by foreign profitability increasing by 47.4% for firms in the S&P 500 index, which are larger and have more intangible assets created by R&D and SG&A expenditures. In contrast, following globalization, the average aggregate domestic profitability of US firms remained flat, and firms employed more capital to generate sales. Firms with higher intangible assets benefited more from globalization. |
| JEL: | F20 F30 G0 G12 G30 L1 L25 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32202&r=sbm |
| By: | Yikai Zhao; Rui Sun; Jun Nagayasu |
| Abstract: | This study investigates the impact of corporate transparency on a firm's extensive margin in exports ("transparency-export" (TE) relationship). We propose a theoretical model for an asymmetric information environment and demonstrate that the TE relationship depends on a firm's current corporate transparency record. Moreover, we posit that mandated firms, especially those with severe financing constraints, can harm their export activities to enhance transparency. However, improving a city's financial deepening and legal environment could offset these negative impacts and positively impact its TE relationship. The Chinese data support these theoretical implications. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:toh:dssraa:139&r=sbm |
| By: | Bunel, Simon; Bijnens, Gert; Botelho, Vasco; Falck, Elisabeth; Labhard, Vincent; Lamo, Ana; Röhe, Oke; Schroth, Joachim; Sellner, Richard; Strobel, Johannes; Anghel, Brindusa |
| Abstract: | The productivity-enhancing effects of digitalisation have generated increased interest in the promotion of digital technologies. This report provides different estimations for euro area countries of the impact of digital uptake on productivity at firm level, showing that the adoption of digital technologies could lead to an increase in firms’ productivity in the medium term. However, not all firms and sectors experience significant productivity gains from digital adoption, and not all digital technologies deliver significant productivity gains. The report highlights possible factors behind the low productivity benefits of digitalisation in euro area countries. For example, a lack of strong institutions and governance structures may help to explain why digital diffusion is slower than expected, why it is slower in some countries than others and why the expected productivity benefits from digitalisation have not been fully achieved by now. Furthermore, the report suggests that the full benefits of the digital revolution will be reaped by properly supplying skills to firms and also by investing in computerised information in low-productivity firms. JEL Classification: D24, E24, E22, J24, O33, O38, C67 |
| Keywords: | complementary investments, digitalisation, human capital, institutions, productivity |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2024339&r=sbm |
| By: | Giovanni Dosi; Anna Snaidero |
| Abstract: | This paper delves into geographical agglomeration patterns of economic activities focusing on the connection between these agglomeration tendencies and sectoral patterns of innovative activities. Within a broad evolutionary perspective, we refine upon incumbent statistical models, trying to distinguish between intra- and inter-sectoral agglomerative forces, conditional on different types of sectoral innovative activities. Utilizing data spanning three distinct years, a decade apart, we investigate the systematic nature of spatial distributions, the relationship between agglomeration drivers and technological paradigms, and shifts in agglomerative tendencies over time. Our findings suggest that economic space is far from uniform, but the spatial heterogeneity differs across sectors as it is driven by various factors, including increasing returns, urbanization advantages, and sector-specific forms of knowledge generation and diffusion. |
| Keywords: | spatial agglomeration, evolutionary economic geography, increasing returns, externalities, knowledge specificities, Pavitt taxonomy |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/07&r=sbm |
| By: | Fadi Hassan (Bank of Italy) |
| Abstract: | Using custom-level and survey data for Italian firms, this paper examines the performance of firms exposed to global value chain (GVC) bottlenecks in terms of exports, revenues, and hours worked. We find evidence that firms reporting greater difficulties in sourcing the desired amount of inputs experienced posted significantly higher growth on average. The magnitude of this result is larger for firms with more diversified suppliers and is unaffected by the geographical distance of suppliers. We disentangle the role of demand and supply factors in firms’ performance and the results suggest that, despite constraints on the supply side, problems in sourcing inputs mostly mirrored an increase in demand. These findings hold true when using alternative direct and indirect measures of firms’ exposure to bottlenecks, as well as when taking into account several firms’ characteristics and fixed effects. We also examine firms’ future GVC strategies through a survey. There is limited evidence of firms willing to retrench from GVCs through re-shoring or near-shoring, but there is strong evidence of firms aiming to increase GVCs’ resilience through greater diversification of suppliers and larger inventories. |
| Keywords: | GVCs, production bottlenecks, exports |
| JEL: | F1 F6 D22 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_813_23&r=sbm |
| By: | Ryosuke Fujitani; Masazumi Hattori; Tomohide Mineyama |
| Abstract: | We present a novel fact called the ``V-shaped relationship'' between firms' growth opportunities and cash holdings. Specifically, cash holdings are positively correlated with growth opportunities in firms experiencing positive growth but negatively correlated with those facing adverse growth opportunities. This divergent link suggests that the motivation for cash holdings varies between these two types of firms. To account for this V-shaped relationship, we develop a new numerical model in which a manager optimally determines the levels of investment and cash holdings in response to shocks that affect the corporate production process. A unique aspect of this model is that it incorporates the dual motives of cash holdings: cash serves as a cushion against an adverse shock and simultaneously allows the provision of agile money, thereby seizing a growth opportunity. Considering these passive and proactive motives for cash holdings enables the model to replicate the V-shaped link. Furthermore, we investigate the rise in corporate cash holdings in recent decades through the model and find that tighter borrowing constraints and lower interest rates after the global financial crisis account for more than 60% of the rise in corporate cash holdings. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e200&r=sbm |
| By: | Scaini, Anna; Mulligan, Joseph; Berg, Håkan; Brangarí, Albert; Bukachi, Vera; Carenzo, Sebastian; Chau Thi, Da; Courtney-Mustaphi, Colin; Ekblom, Anneli; Fjelde, Hanne; Fridahl, Mathias; Hansson, Anders; Hicks, Lettice; Höjer, Mattias; Juma, Benard; Kain, Jaan-Henrik; Kariuki, Rebecca W.; Kim, Soben; Lane, Paul; Leizeaga, Ainara; Lindborg, Regina; Livsey, John; Lyon, Steve W.; Marchant, Rob; McConville, Jennifer R.; Munishi, Linus; Nilsson, David; Olang, Luke; Olin, Stefan; Olsson, Lennart; Rogers, Peter Msumali; Rousk, Johannes; Sandén, Hans; Sasaki, Nophea; Shoemaker, Anna; Smith, Benjamin; Thai Huynh Phuong, Lan; Varela Varela, Ana; Venkatappa, Manjunatha; Vico, Giulia; Von Uexkull, Nina; Wamsler, Christine; Wondie, Menale; Zapata, Patrick; Zapata Campos, María José; Manzoni, Stefano; Tompsett, Anna |
| Abstract: | Drawing on collective experience from ten collaborative research projects focused on the Global South, we identify three major challenges that impede the translation of research on sustainability and resilience into better-informed choices by individuals and policy-makers that in turn can support transformation to a sustainable future. The three challenges comprise: (i) converting knowledge produced during research projects into successful knowledge application; (ii) scaling up knowledge in time when research projects are short-term and potential impacts are long-term; and (iii) scaling up knowledge across space, from local research sites to larger-scale or even global impact. Some potential pathways for funding agencies to overcome these challenges include providing targeted prolonged funding for dissemination and outreach, and facilitating collaboration and coordination across different sites, research teams, and partner organizations. By systematically documenting these challenges, we hope to pave the way for further innovations in the research cycle. |
| Keywords: | upscaling; climate change adaptation; knowledge co-creation; knowledge transfer; resilience; sustainable development goals; 2016-06359; 2016-06355; 2016-06297; 2016-06300; 2016-06327; 2016-06329; 2016-06334; 2016-06289; 2016-06313; 2016-06389 |
| JEL: | R14 J01 N0 |
| Date: | 2024–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122096&r=sbm |
| By: | Kampmann, David |
| Abstract: | This paper examines the venture capital-driven process of making intangible assets in platform start-up firms. By examining the case study of the rise and fall of a venture capital-backed ‘unicorn’ firm developing a digital health platform, this paper argues that the process of real valorization of capital invested in platform start-up firms involves the making of algorithmic systems and data as intangible assets as well as the experimentation with strategies of exploitation and appropriation, which are inherently linked to the future-oriented financial valorization process of equity shares since unprofitable start-up firms continuously require outside capital to expand operations. While the fetish of ‘artificial intelligence’ posing the firm’s chatbot for self-diagnosis as an intelligent ‘doctor in your pocket’ plays an important role in financial valorization, it is the failed real valorization process in making profits that ultimately leads to the platform start-up’s financial collapse. The conceptual contribution of the paper centres on the contradictory nature of assetization processes which sheds light on how class domination operates in and through venture capital-driven accumulation. |
| Keywords: | venture capital; asset making; Babylon Health; artificial intelligence chatbot; fetishism of technology; T&F deal |
| JEL: | L81 |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121107&r=sbm |
| By: | Catayoun Azarm; Erman Acar; Mickey van Zeelt |
| Abstract: | Online transaction fraud presents substantial challenges to businesses and consumers, risking significant financial losses. Conventional rule-based systems struggle to keep pace with evolving fraud tactics, leading to high false positive rates and missed detections. Machine learning techniques offer a promising solution by leveraging historical data to identify fraudulent patterns. This article explores using the personalised PageRank (PPR) algorithm to capture the social dynamics of fraud by analysing relationships between financial accounts. The primary objective is to compare the performance of traditional features with the addition of PPR in fraud detection models. Results indicate that integrating PPR enhances the model's predictive power, surpassing the baseline model. Additionally, the PPR feature provides unique and valuable information, evidenced by its high feature importance score. Feature stability analysis confirms consistent feature distributions across training and test datasets. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.09495&r=sbm |
| By: | Jesse Groenewegen; Sjoerd Hardeman; Erik Stam |
| Abstract: | COVID-19 forced many businesses to rapidly adapt to new circumstances. While firms could not foresee this shock, some were better able to adapt than others. This required firms to quickly and efficiently process new information from both external and internal sources. To what extent and how are absorptive capacity and quality of management practices important in this setting? We expect a high level of absorptive capacity to enable firms to efficiently gather and process external information, whereas good management practices helps them to deal with internal information. To test these hypotheses, we run a large scale survey among companies in the Netherlands to assess their level of absorptive capacity and the quality of their management practices. We relate this to their level of adaptiveness, measured in terms of firms’ pivot toward online revenue sources during COVID-19. We find that firms with greater absorptive capacity and greater quality of management practices earned a higher share of their revenues online. This suggests that absorptive capacity and management practices enable firms to adapt successfully in response to the COVID-19 shock. |
| Keywords: | management practices, absorptive capacity, COVID-19 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:2301&r=sbm |