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on Small Business Management |
| By: | Victor (Xucheng); CHEN |
| Abstract: | This study investigates the relationship between innovation activities and firm-level productivity among early-stage high-tech startups in China. Using a proprietary dataset encompassing patent records, R&D expenditures, capital valuation, and firm performance from 2020 to 2024, we examine whether and how innovation, measured by patents and R&D input, translates into economic output. Contrary to established literature, we find that patent output does not significantly contribute to either income or profit among the sampled firms. Further investigation reveals that patents may primarily serve a signaling function to external investors and policymakers, rather than reflecting true innovative productivity. In contrast, R&D expenditure shows a consistent and positive association with firm performance. Through mechanism analysis, we explore three channels (organizational environment, employee quality, and policy-driven incentives) to explain the impact of R&D, identifying capital inflow and valuation as key drivers of R&D investment. Finally, heterogeneity analysis indicates that the effects of R&D are more pronounced in sub-industries such as smart terminals and digital creativity, and for firms based in Shenzhen. Our findings challenge the prevailing assumption that patent output is a universal indicator of innovation success and underscore the context-dependent nature of innovation-performance linkages in emerging markets. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.18227 |
| By: | Mahunan Anselme Hounnou (UCAD - Université Cheikh Anta Diop de Dakar [Sénégal]); Mouhamed El Bachir Wade; Patrice Aimé Agossou |
| Abstract: | The aim of this article is to analyze the role of university training courses specializing in entrepreneurship in the relationship between managerial innovation and value creation in SMEs. This research is intended to be hypothetico-deductive. In order to test the relationships, we collected data from 76 business leaders who were beneficiaries of the Programme de Formation Sud Entrepreneuriat Intrapreneuriat Burkina Faso - Bénin. Three statistical tools were used to analyze the data collected: flat sorting, exploratory factor analysis (PCA) and linear regressions. The results of our research show that, for 10% of SME value creation, managerial innovation contributes 41% and university training in entrepreneurship 48.9%. These results are significant only at the 1% level. It follows that university training programs specialized in entrepreneurship positively and significantly moderate the relationship between managerial innovation and value creation in small and medium-sized enterprises |
| Abstract: | Cet article vise à d'analyser le rôle des formations universitaires spécialisé en entrepreneuriat dans la relation entre innovation managériale et création de valeur des PME. Cette recherche se veut hypothético-déductive. Afin de tester les relations nous avons collecté auprès de 76 chefs d'entreprises bénéficiaires du Programme de Formation Sud Entrepreneuriat Intrapreneuriat Burkina Innovation managériale et création de valeur … || 167Faso -Bénin. Trois outils statistiques ont permis d'analyser les données collectées : le tri à plat, analyse factorielle exploratoire (ACP) et les régressions linéaires. Il ressort des résultats de notre recherche que pour 10% de la création de valeur des PME, l'innovation managériale contribue à hauteur de 41% et la formation universitaire en entrepreneuriat assure 48, 9%. Ces résultats sont significatifs au seul de 1%. Il en découle que les programmes de formation universitaire spécialisés en entrepreneuriat modèrent positivement et significativement la relation innovation managériale et création de valeur des Petites et Moyenne Entreprises. |
| Keywords: | Managerial innovation - Value creation - University training - SMEs, Innovation managériale création de valeur formation universitaire PME Managerial innovation -Value creation -University training -SMEs, Innovation managériale, création de valeur, formation universitaire, PME Managerial innovation -Value creation -University training -SMEs |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05104236 |
| By: | Daisuke TSURUTA |
| Abstract: | We investigate the differences in firm performance between non-defaulting firms and firms that have defaulted on their bank loan, and factors that determine these differences, using small business data. Many previous studies investigate the determinants of loan payment defaults by small businesses. However, few papers investigate small business activities and performance after they default. Using firm-level data from Japan, we show that bank borrowings, return on assets (ROA), and sales growth are all lower after such defaults. These negative effects last approximately 10 years after default if the firm survives, suggesting that the constraints associated with a default have negative effects on firm performance for extended periods. In addition, firms with weak financial statements before the default are unlikely to survive, but those that survive enjoy a high ROA. Next, asset growth, ROA, sales growth, younger management, and the existence of a successor have positive effects on firm survival after a default. These imply that real factors are important for firm survival after a default. Lastly, additional credit and reduction of interest payments have positive effects on sales growth after a default, but negative effects on ROA. This suggests that financial support from banks has a limited effect on the survival of defaulting small businesses. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25066 |
| By: | Manolov, Mladen; Berrones-Flemmig, Claudia Nelly |
| Abstract: | Given the European Union's commitments of achieving net zero by 2050 and advocating Environmental, Social, and Corporate Governance (ESG) targets, ESG is having an increasingly larger impact on businesses (Alamillos & De Mariz, 2022). Various studies have concluded that if a company has a high ESG score, it typically borrows at a cheaper rate, receives more favorable credit terms and conditions, has higher valuation, achieves better financial performance, as well as other benefits relating to its access to finance (Jang et al., 2020; Srivastava et al., 2022; Albuquerque et al., 2019; Friede et al. 2015). The same studies focus, however, predominantly on large companies in developed economies. On the other hand, the issue of the financing gap in Small and Medium-Sized Enterprises (SMEs) is experienced globally and especially in developing economies (World Bank, 2019; PwC, 2021). Given the positive impact of ESG on companies access to finance as found in existing literature and the presence of the SME finance gap in developing economies, this research investigates the impact of ESG practices on Small and Medium-Sized Enterprises access to finance in the context of Bulgaria. An overview of current and planned ESG-related European Union regulations impacting SMEs is provided. With a focus on Bulgarian SMEs, a total of 27 experts in the fields of banking, venture capital, angel investing, SME ownership or management, and ESG consulting were interviewed. This study adds to the limited body of research pertaining to the impact of ESG on SMEs financing in a developing economy setting. The research concluded that Bulgarian SMEs engaged in ESG have better debt and equity financing terms, more opportunities and dedicated channels for receiving financing, as well as benefits adding to their competitiveness, such as better access to international supply chains, reduced firm risk, tax exemptions, ability to attract and retain top talent, and higher potential for top line growth, among others. |
| Keywords: | ESG, SME access to finance, sustainable finance, SME financing gap, ESG in developing economies |
| JEL: | M Q |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhbm:323240 |
| By: | Miguel Ortiz (Departamento de Economía de la Pontificia Universidad Católica del Perú); Juan Palomino (Departamento de Economía de la Pontificia Universidad Católica del Perú) |
| Abstract: | This study examines how technologyextension and transfer services (TETS) drive firm-level innovation andproductivity. Since research and development (R&D) investments are subjectto market failure, engaging with external agents enables firms to innovate atlower risk and cost. Using data from Peru’s National Innovation Survey (ENI), we apply the Crépon, Duguet, and Mairesse (CDM) model alongside propensityscore matching (PSM) to enhance the reliability of our results. Additionally, we employ the generalized propensity score (GPS) method to analyze thesensitivity of innovation and sales outcomes to varying investment levels. Thefindings confirm that investment in training and external R&D significantlyenhances innovation, thereby boosting labor productivity. However, thisrelationship is nonlinear, suggesting the presence of investment thresholdsrequired to maximize impact. Palabras claves: Technology Transfer, Innovation, Productivity, R&D, CDM model JEL Classification-JE: L25, O32, O38 |
| Keywords: | Technology Transfer, Innovation, Productivity, R&D, CDM model |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pcp:pucwps:wp00543 |
| By: | Koenigsmarck, Markus |
| Abstract: | Sustainability is a paradigm permeating all aspects of business, including financial performance. Startups as innovation drivers are of particular interest in this context. However, our knowledge of how sustainability and performance are connected is limited for startups compared to large corporations. This doctoral dissertation addresses related research gaps with three empirical studies at the intersection of corporate finance and corporate sustainability. The first study examines the relationship between startup sustainability signaling and financing success. The results provide the first large-scale empirical evidence for a U-shaped connection between startup sustainability and funding success: those that signal the most and the least raise the most venture capital. Sustainability signaling is, therefore, not exclusively positive or negative for startups but rather part of their strategic differentiation. The second study explores how investors and startups select each other based on sustainability preferences, how investors influence the sustainability efforts of their startup investments, and the consequences for startup valuation. It provides empirical evidence that startups and investors prefer partners with a similar view on sustainability. As a result, investors are willing to pay a premium for an investment in a similar-minded firm. Moreover, it shows that startup sustainability communication increases after a green investor joins as an investor, while there is no change after a brown investor does so. Overall, the study contributes to a more nuanced understanding of treatment and selection mechanisms between investors and startups. The last study delves into how the maturity of a startup’s business model influences the founding team’s exit options. It identifies that startups pioneering a new business model are the least likely to perform an initial public offering. However, they are also the most likely to exit via an acquisition. This study contributes to a more nuanced understanding of how firstmoving and business models affect founder’s exit prospects. |
| Date: | 2025–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:156012 |
| By: | Craig A. Chikis; Benny Kleinman; Marta Prato |
| Abstract: | Most U.S. innovation output originates from firms that operate R&D facilities across multiple local markets. We study how this geographic structure influences aggregate innovation and growth, and whether it is socially optimal. First, we develop an endogenous growth model featuring multi-market innovative firms that generate knowledge spillovers to geographically proximate firms. In equilibrium, firms may operate in too few or too many local markets, depending on how sensitive are the local spillovers they generate to their local size. Second, to quantify these effects, we link the model to data on firms’ R&D locations, patents, and citation networks. Using an event-study design, we show that firms’ spatial expansion increases spillovers to other firms and estimate how these spillovers depend on a firm's local footprint. Our estimates imply that U.S. innovative firms operate in too few markets relative to the social optimum. Third, using quantitative counterfactuals, we find that policies promoting broader spatial scope yield larger welfare gains than standard R&D subsidies. Moreover, unlike R&D subsidies, such policies can also reduce regional inequality. |
| JEL: | E0 F0 L0 O0 R0 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34010 |
| By: | Torben Klarl; Alexander S. Kritikos; Knarik Poghosyan |
| Abstract: | While Equity Crowdfunding (ECF) platforms are a virtual space for raising funds, geography remains relevant. To determine how location matters for entrepreneurs using equity crowdfunding (ECF), we analyze the spatial distribution of successful ECF campaigns and the spatial relationship between ECF campaigns and traditional investors, such as banks and venture capitalists (VCs). Using data from the two leading German platforms – Companisto and Seedmacht – we employ spatial eigenvalue filtering and negative binomial estimations. In addition, we introduce an event study based on the implementation of the Small Investor Protection Act in Germany allowing us to obtain causal evidence. Our combined analysis reveals a significant geographic concentration of successful ECF campaigns in some, but not all, dense areas. ECF campaigns tend to cluster in dense areas with VC activity, while they are less prevalent in dense areas with high banking activity, and are rarely found in rural areas. Thus, rather than closing the so-called regional funding gap, our results suggest that, from a spatial perspective, ECF fills the gap when firms in dense areas seek external financing below the minimum equity threshold offered by VCs and when there are few banks offering loans. |
| Keywords: | Crowdfunding, Finance Geography, Entrepreneurial Finance, Venture Capital (VC) Proximity |
| JEL: | G30 L26 M13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2134 |
| By: | Bergeaud, Antonin; Deter, Max; Greve, Maria; Wyrwich, Michael (University of Groningen) |
| Abstract: | We investigate the causal relationship between inventor migration and regional innovation in the context of the large-scale migration shock from East toWest Germany between World War II and the construction of the Berlin Wallin 1961. Leveraging a newly constructed, century-spanning dataset on Germanpatents and inventors, along with an innovative identification strategy based onsurname proximity, we trace the trajectories of East German inventors and quantify their impact on innovation in West Germany. Our findings demonstrate a significant and persistent boost to patenting activities in regions with higher inflows of East German inventors, predominantly driven by advancements in chemistry and physics. We further validate the robustness of our identification strategy against alternative plausible mechanisms. We show in particular that the effect is stronger than the one caused by the migration of other high skilled workers and scientists. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gro:rugfeb:2025002-i&o |
| By: | Hussinger, Katrin; Palladini, Lorenzo |
| Abstract: | China's special economic zones (SEZs) have been established to foster business growth and innovation by improving the institutional context of specific sub-regional areas. We examine the effect of SEZs on the contribution of research and development (R&D) to the market value of firms located in these areas. The market value reflects investors' expectations of future returns to R&D, providing crucial information for strategic investment decisions. Larger R&D contributions to the market value create stronger incentives for firms to invest in innovation. Empirical results suggest that the contribution of R&D to the market value increases through the SEZs program, particularly for R&D intensive firms. This suggests that regional policies, while increasing incentives to innovate, may widen the gap between less and more R&D intensive firms, potentially impacting competition and long-term growth. |
| Keywords: | Special economic zones (SEZs), China, Market value, R&D, Institutional development, Innovation incentives |
| JEL: | O32 R58 O25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319898 |
| By: | Hussinger, Katrin; Issah, Wunnam Basit |
| Abstract: | We investigate whether family ownership is associated with a preference for patents or trade secrets. Using a sample of S&P 500 firms, we show that family ownership is negatively associated with patenting and positively associated with the usage of trade secrets. We further show that both relationships are moderated by firm performance below the aspiration level, i.e. the performance benchmark level that an organization sets. These results can be explained with a mixed gambles behavioral agency framework. When family firms perform below their aspiration level, prospective financial gains become relatively more important as compared to current socioemotional wealth so that patents become more and trade secrets less attractive. |
| Keywords: | Family firms, patents, trade secrets, mixed gambles, aspiration gap |
| JEL: | O34 O32 G32 M14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319899 |
| By: | Francesco Zanetti; Jesús Fernández-Villaverde; Yang Yu |
| Abstract: | Defensive hiring of researchers by incumbent firms with monopsony power reduces creative destruction. This mechanism helps explain the simultaneous rise in R&D spending and decline in TFP growth in the US economy over recent decades. We develop a simple model highlighting the critical role of the inelastic supply of research labor in enabling this effect. Empirical evidence confirms that the research labor supply in the US is indeed inelastic and supports other model predictions: incumbent R&D spending is negatively correlated with creative destruction and sectoral TFP growth while extending incumbents lifespan. All these effects are amplified when ideas are harder to find. An extended version of the model quantifies these mechanisms implications for productivity, innovation, and policy. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:cnn:wpaper:25-016e |
| By: | Joris Tielens (National Bank of Belgium, Research Department) |
| Abstract: | We study the interconnection between the productivity and pricing effects of financial shocks. Combining administrative records on firm-level output prices and quantities with quasi-experimental variation in credit supply, we show that a tightening of credit conditions has a persistent, yet delayed, negative effect on firms’ long-run physical productivity growth (TFPQ) but also induces firms to change their pricing policies. Commonly used revenue-based productivity measures (TFPR)—which conflate price and productivity—offer biased predictions regarding the consequences of financial shocks for firms’ productivity growth, underestimating the long-run elasticity of physical productivity to credit supply by half. We also show that the pricing adjustments themselves have productivity implications. Firms use low pricing as a source of internal financing, allowing them to avoid cutting expenditures on productivity-enhancing activities, thereby softening the impact of financial shocks. We incorporate these forces into a quantitative model of firm dynamics to quantify the importance of productivity and pricing dynamics (and their interplay) in driving the scarring effects of financial crises on aggregate productivity and welfare. |
| Keywords: | productivity, pricing, financial constraints, innovation |
| JEL: | D22 D24 E31 E44 G01 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202507-479 |
| By: | Yoshiki Ando; Emin Dinlersoz; Jeremy Greenwood; Ruben Piazzesi |
| Abstract: | How do advanced technology adoption and venture capital (VC) funding impact employment and growth? An analysis of data from the US Census Bureau suggests that while both advanced technology use and VC funding matter on their own for firm outcomes, their joint presence is most strongly correlated with higher employment levels. VC presence is linked with a high increase in employment, though primarily among a limited subset of firms. In contrast, technology adoption is associated with a smaller rise in employment, yet it influences a considerably larger number of firms. A model of startups is created, focusing on decisions to use advanced technology and seek VC funding. The model is compared with firm-level data on employment, advanced technology use, and VC investment. Several thought experiments are conducted using the model. Some experiments assess the importance of advanced technology and VC in the economy. Others examine the reallocation effects across firms with different technology choices and funding sources in response to shifts in taxes and subsidies. |
| Keywords: | Advanced technology, banks, capital gains taxation, corporate income taxation, difference-in-difference analysis, employment, firm-level data, reallocation effects, startups, subsidies, synergy, venture capital, technology adoption, U.S. Census data |
| JEL: | E13 G24 O30 O40 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:25-49 |
| By: | Yılmaz, Emre; Bekele, Tewodros; Yuang, Đặng; Kim, Min-ji |
| Abstract: | This paper examines the critical yet underutilized role of financial ratio analysis in enhancing the crisis preparedness and resilience of small and medium enterprises (SMEs). Drawing from recent studies, the paper synthesizes evidence showing that when ratio analysis is performed systematically and integrated into daily management, it can act as an early warning system and guide proactive decision-making during economic shocks. While large firms have demonstrated the effectiveness of real-time liquidity, solvency, and profitability monitoring during the COVID-19 pandemic, SMEs often lack the technological and governance capacity to do the same. This research highlights the potential of affordable digital dashboards, sector-specific benchmarking, and governance improvements to close this gap. Policy recommendations emphasize training, ecosystem support, and incentives to promote transparency and regular ratio use. Ultimately, the study underscores that ratio analysis must shift from a static compliance exercise to a dynamic, digitally enabled management practice if SMEs are to build robust resilience in an era of uncertainty. |
| Keywords: | Financial Ratios, SMEs, Crisis Preparedness |
| JEL: | O1 |
| Date: | 2025–05–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125292 |
| By: | YoungGak KIM; Sadao NAGAOKA |
| Abstract: | Business groups can provide access not only to internal capital markets but also to existing knowledge pools within the group, which can promote innovation. However, there is limited empirical evidence on intra-group knowledge flows that incorporated controls for selection effects. This study analyses the impact of business groups on inter-firm knowledge flows by using Japanese acquisition events that led to the establishment of subsidiaries. Leveraging acquisition events and panel data, we attempt to disentangle the selection effect of target firms acquired by business groups from the treatment effect of being internalized into the group. We combine patent data with detailed information on business group structures from the Basic Survey of Japanese Business Structure and Activities to capture factors influencing knowledge flows, such as the knowledge stocks of parent and acquired firms, their technological proximity, prior joint patent applications, and the post-acquisition governance structures of subsidiaries. Our main findings suggest that acquisitions resulting in the integration of independent firms into business groups tend to increase the level of, and accelerate the speed of, inter-firm knowledge flows. Moreover, this treatment effect is significantly positive for both wholly-owned and partly-owned subsidiaries. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:25017 |
| By: | Jan Malek; Jo Seldeslachts; Reinhilde Veugelers |
| Abstract: | This paper provides empirical evidence on which M&A deals spur innovation, and which stifle it. To do so, we consider not only the product market position of the acquiring firm, but also the position of both target and acquirer in the technology space. Focusing on the antidiabetic drugs market, our dataset tracks the lifecycle and patenting of all individual antidiabetic projects in development between 1997 and 2017. We show that most terminations of acquired projects occur while the projects are still far from product market entry. Nevertheless, a number of these early-stage acquisitions have a positive impact on innovation. These cases arise when incumbents acquire projects close to their own projects in product markets, but only if these projects are also close in technology markets. Those deals are associated with increased subsequent patenting, which is consistent with the exploitation of technological synergies. Our results point to the crucial role of combining both product market and technology market positions in assessing the innovation effects of pharmaceutical M&As. |
| Keywords: | M&As, innovation, R&D, pharmaceutics, technology, novelty, patents |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:768578 |
| By: | Breyer-Mayländer, Thomas; Zerres, Christopher |
| Abstract: | In the following, eight exemplary paradoxes for entrepreneurs are briefly presented on the basis of a literature review. This is followed by a case analysis based on the information, advice and training services offered by a German university, to examine which university-related services and formats support the handling of paradoxes for founders and startup teams. The focus is on the perspective of the founders. |
| Keywords: | Entrepreneurship |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ouwpmm:323587 |
| By: | Hermes, Niels; Hudon, Marek; Moahid, Masaood (University of Groningen) |
| Abstract: | In recent years, there has been a notable shift towards embracing innovative microfinance products. Yet, what do we know about the impact of these innovations on clients, MFIs, and their associated challenges? This systematic literature review (SLR) analyzes 105 articles to analyze the effects of so-called disruptive and incremental innovation in microfinance products. The findings reveal that these innovations elicit diverse outcomes for clients and MFIs, albeit through different pathways. Although the results are mixed, this SLR emphasizes the potential of these innovations to deepen the effects of microfinance. The study highlights a symmetry between the two types of innovations. Disruptive innovations prioritize the financial empowerment of clients, whereas incremental innovations focus more on socioeconomic development. Moreover, implementing innovative products enhances the financial and social performance of MFIs.Intriguingly, incremental innovation may reintroduce information asymmetry problems. Disruptive innovation raises concerns about client protection and exclusion of the most unprivileged, among other aspects. The analysis emphasizes that MFIs may use these innovations to maximize benefits for their clients while maintaining sustainable financial returns. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:gro:rugfeb:2024011-eef |
| By: | Andrej Přívara (EUBA - Bratislava University of Economics and Business / Ekonomická univerzita v Bratislave); Arief Rahman (Universitas Islam Indonesia); Ivana Ognjanović (UDG - University of Donja Gorica / Univerzitet Donja Gorica); Amir Hasnaoui (CERIIM - Centre de Recherche en Intelligence et Innovation Managériales - Excelia Group | La Rochelle Business School); Virginie Hachard (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School) |
| Abstract: | This study investigates the critical factors influencing Digital Transformation (DT) in micro, small, and medium enterprises (MSMEs) within the post-pandemic context. Data were collected through an online survey of 341 respondents and analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The results indicate that Information System (IS) capacity, competitive pressure, and government support significantly contribute to DT, while perceived benefits and complexity have weaker effects. The findings also reveal that the influence of these factors varies by enterprise size: micro-enterprises rely on external pressures and technological capabilities, small businesses depend on internal management support and Information System Capacity (ISC), and medium enterprises require further exploration of alternative drivers. This study addresses gaps in existing research by exploring DT in a unique socio-economic setting and contributes to the literature on MSME resilience and competitiveness. Limitations include the use of convenience sampling and a focus on a single geographic context. Practical implications include recommendations for tailored policies, skill development initiatives, and improved IS infrastructure. Social implications emphasize inclusive digitalization to enhance enterprise sustainability and reduce inequality. |
| Keywords: | Digital transformation, Enterprise resilience, Micro and small enterprises, Post-pandemic |
| Date: | 2025–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05148353 |
| By: | Yoshiki Ando (Singapore Management University); Emin Dinlersoz (US Census Bureau); Jeremy Greenwood (University of Pennsylvania); Ruben Piazzesi (University of Pennsylvania) |
| Abstract: | How do advanced technology adoption and venture capital (VC) funding impact employment and growth? An analysis of data from the US Census Bureau suggests that while both advanced technology use and VC funding matter on their own for firm outcomes, their joint presence is most strongly correlated with higher employment levels. VC presence is linked with a high increase in employment, though primarily among a limited subset of firms. In contrast, technology adoption is associated with a smaller rise in employment, yet it influences a considerably larger number of firms. A model of startups is created, focusing on decisions to use advanced technology and seek VC funding. The model is compared with firm-level data on employment, advanced technology use, and VC investment. Several thought experiments are conducted using the model. Some experiments assess the importance of advanced technology and VC in the economy. Others examine the reallocation effects across firms with different technology choices and funding sources in response to shifts in taxes and subsidies. |
| Keywords: | Advanced technology; banks; capital gains taxation; corporate income taxation; difference-in-differe |
| JEL: | E13 G24 O30 O40 |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:smuesw:021427 |
| By: | Chifae El Hail (UCD - Université Chouaib Doukkali); Mustapha El Koraichi (UCD - Université Chouaib Doukkali) |
| Abstract: | This paper aims to demonstrate the relevance of customer relationship research in the context of family businesses, to structure existing literature, and to identify promising areas for further research. By conducting a scoping review of relevant peer-reviewed journal articles published from 2005 to 2021 and adhering to the Prisma protocol for enhanced transparency and quality, this paper underscores the pivotal role of customer relationship management in the success of family businesses, emphasizing a tendency towards conservative and traditional approaches. The owner-manager involvement, especially in strategies for managing customer relationships in both B to C and B to B sectors. Also, The imperative for deliberate relationship strategies during successions is emphasized. loyalty, and overall performance, highlights the necessity for empirical studies to gain nuanced insights. Additionally, consumer behavior towards family businesses, shaped by the communication of familial identity, underscores the need for further research on diverse communication approaches. Lastly, acknowledging the positive impact of corporate social responsibility practices on loyalty and reputation in family businesses underscores the call for regulations across countries. |
| Keywords: | Customer-Oriented, Family Firm, Firm Reputation, Relationship Marketing, Social Capital |
| Date: | 2024–04–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05085390 |
| By: | Böninghausen, Benjamin; Evrard, Johanne; Gati, Zakaria; Gori, Sofia; Lambert, Claudia; Legran, Daniel; Schuster, Wagner Eduardo; van Overbeek, Fons |
| Abstract: | The European Union (EU) economy depends heavily on bank funding. For this reason, strengthening EU equity markets as an alternative funding source has been a policy priority under the Capital Markets Union (CMU) agenda, and more recently a key feature of the Savings and Investment Union (SIU). EU listed equity markets are smaller and structurally different from those in the United States (US), with differing market capitalisations of listed firms and differences in the number of companies listed, stemming from lower initial public offering (IPO) activity in Europe. This paper aims to understand the drivers behind the EU-US listing gap, focusing on two aspects: (1) the general firm-level benefits of listing, and (2) whether pre-listing financing opportunities in the EU are underdeveloped, hindering firm growth and ultimately market depth. This paper first puts forward an empirical analysis to assess how a firm’s decision to list impacts various key performance indicators, with a view to assessing the implications of listing for the economy at large. Second, it zooms in on innovative firms to shed light on the primary challenges faced by EU startups in their funding pipelines, with a focus on late-stage equity financing and venture capital (VC) markets. Focusing on the euro area (EA) as a proxy to derive broader benefits of listing in the EU, we find that EA companies’ key profitability measures, employment, innovation capacity and productivity all increase after listing – and are thus indicative of wider economic benefits. This is, however, associated with challenges for the long-term investment strategies of listed companies, such as potential short-termism – a topic widely studied in the literature. Moreover, a comparison with the US suggests that, while the benefits and risks of listing are qualitatively similar on the other side of the Atlantic, EA companies seem to benefit somewhat less from listing than their US peers. […] JEL Classification: G10, G30, L10, L50, G24, G32, L21, L25 |
| Keywords: | capital markets union, equity markets, financial structure, listing, savings and investments union, venture capital |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2025373 |
| By: | Silvia Tedeschi; Giacomo Marzi; Marco Balzano; Gabriele Costa |
| Abstract: | This study examines the strategic role of cybersecurity based on survey data from 1, 083 managers across Europe, the UK, and the United States. The findings indicate growing recognition of cybersecurity as a source of competitive advantage, although firms continue to face barriers such as limited resources, talent shortages, and cultural resistance. Larger and high-tech firms tend to adopt more proactive strategies, while SMEs and low-tech sectors display greater variability. Key managerial tensions emerge in balancing security with innovation and agility. Notable country-level differences are observed across Europe, the UK, and the United States. Across all contexts, leadership and employee engagement appear central to closing the gap between strategic intent and operational practice. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.11549 |
| By: | Omar R. Malik |
| Abstract: | Using data from the U.S. Census Bureaus Business Trends and Outlook Survey (BTOS), I examine the adoption of AI among US firms at national, state, industry, and firm size levels. I find that adoption remains overall low (only around 7% of firms currently use AI), but is on a steady upward trajectory with a rising share of firms planning to implement AI. Adoption rates vary significantly across regions and sectors: some states are emerging as early adopters, while others lag, and knowledge-intensive industries (such as information technology and professional services) along with larger firms show higher openness to AI adoption compared to sectors like construction or small businesses. In general, these trends indicate that a quiet revolution in AI adoption is underway; a gradual but expanding diffusion of AI across the economy with important implications for future productivity and policy. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.14721 |
| By: | Elfsbacka-Schmöller, Michaela; Goldfayn-Frank, Olga; Schmidt, Tobias |
| Abstract: | This paper provides novel empirical evidence on the impact of monetary policy on innovation investment using unique firm-level data. First, we document the effect of a large, systematic monetary tightening (ECB rate increases from 0% to 4.5% during 2022-23), with average firm-level innovation cuts of 20%. These cuts persist over the medium term, indicating a sustained innovation slowdown. Second, we use the survey to identify elasticities of innovation expenditure to exogenous policy rate changes. Responses to hikes and cuts are significant and largely symmetric at the baseline rate (4.5%), though we detect potential state-dependent asymmetry due to the extensive margin. The financing channel emerges as one of the transmission channels, with more pronounced effects in firms with higher shares of bank loans and variable-rate loans. Crucially, we show that monetary policy transmits via aggregate demand, with stronger responses in firms with pessimistic demand expectations. Forward guidance provides substantial additional stimulus by reducing uncertainty about future rates, suggesting long-term, supply-side effects of announcements. These results challenge monetary long-run neutrality and are suggestive of policy endogeneity of R∗ operating through innovation-driven technology growth. JEL Classification: E52, E22, E24, D22 |
| Keywords: | endogenous growth, forward guidance, monetary policy transmission, R&D, R∗ |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253080 |
| By: | Payne Hennigan |
| Abstract: | I develop a dynamic model of how internal capital markets in conglomerates respond to liquidity shocks when affiliated firms vary in innovation potential. A two-stage framework defines cutoff rules for when the conglomerate should liquidate low-productivity firms, coerce intermediate types into short-termist strategies, or preserve high-potential firms for long-horizon R&D. Embedding these margins into an endogenous growth model, I show how the optimal policy evolves: early in development, coercion preserves liquidity while sustaining broad innovation; as the economy nears the frontier and short-term returns decline, the optimal strategy shifts toward binary reallocation between liquidation and long-termism. I characterize two policy failures: a "coercion trap, " where short-termism persists too long, and a "liquidation fallacy, " where viable firms are discarded prematurely. The framework provides microfoundations for dynamic reallocation in conglomerate systems and offers policy insights for crisis-era restructuring. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.13993 |
| By: | Kaoru HOSONO; Masaki HOTEI; Daisuke MIYAKAWA |
| Abstract: | Using tax filing data of Japanese business enterprises from 2014 to 2020, we investigate how the 2015-2018 tax reforms in Japan affected the average tax burden and whether the reforms benefited growing firms or not. We first calculate backward-looking effective tax rates (ETRs) and then estimate the sensitivity of the ETR and its components with respect to firm sales growth, R&D intensity, and other characteristics. Our findings are as follows. First, the average ETR increased after the reform. Second, compared with the average ETR, ETRs for growing and R&D-intensive firms initially decreased, but then began to increase. The reforms did not benefit growing firms in the long run due to the expansion of tax bases. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25072 |
| By: | Julie Achmirowicz (Ministère des armées, ENST - Ecole Nationale Supérieure des Télécommunications); Jean Langlois-Berthelot (Ministère des armées) |
| Abstract: | Développer une innovation p é d a g o g i q u e s u r l e s systèmes cognitifs et l'IA au sein du CEMS-T |
| Keywords: | Sciences cognitives, IA, Armée |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05062904 |
| By: | Yoshiyuki ARATA; Hiroshi YOSHIKAWA; Shingo OKAMOTO |
| Abstract: | The fact that the distributions of firm sales and individual incomes have a Pareto tail is one of the important statistical regularities, and numerous theoretical models have been proposed to explain it. However, recent studies have pointed out a difficulty with these existing models: they predict that the time required for firms to become giants or individuals to be super-rich is excessively long compared to what is observed in empirical data. Furthermore, our empirical data show that Zipf's law holds within the size distributions of younger firms and younger individuals, contradicting existing models that predict that Zipf's law is primarily driven by older firms and older individuals. This paper provides an alternative explanation for Zipf's law to address the inconsistencies observed in empirical data. We focus on the heavy-tailed nature of the distribution of growth rates for firm sales and individual incomes, showing that their growth dynamics are characterized by rapid growth over short periods. We show that the emergence of giant firms and the super-rich results from this rapid growth, leading to the formation of Zipf's law. Zipf's law reflects the shared growth dynamics underlying firm sales and individual incomes. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25070 |
| By: | Abdelkarim Jabri (ENCGO - ecole nationale de commerce et de gestion d'oujda); Btissam El-Karouni (ENCGO - ecole nationale de commerce et de gestion d'oujda) |
| Abstract: | The objective of this article is to analyse the forms that cooperation between NMF and SMEs can take in Morroco, in a framework which takes into account not only the complementarity of the capacities of the cooperators, but also the existing asymmetries between African SMEs and MNFs Although several studies have examined B2B cooperation (D. R. G. Scott (2004), B. Kogut (1999), Jeffrey J. Reuer, Jeffrey S. Smith (2002)), those in partnerships between MLFs and SMEs in developing countries are rare. By mobilizing a review of narrative literature, this article explores how these relationships can vary according to size, partners' objectives and national context. The main findings show that MNFs are mainly looking for cost savings and access to local networks, while SMEs are looking to benefit from the image of large companies and gain access to new markets. Major challenge |
| Abstract: | L'objectif de cet article est d'analyser les formes que la coopération entre les FMN et les PME peut prendre au Maroc, dans un cadre qui prend en compte non seulement la complémentarité des capacités des coopérants, mais aussi les asymétries existantes entre les PME africaines et les FMN Bien que plusieurs études aient examiné la coopération interentreprises (D. R. G. Scott (2004), B. Kogut (1999), Jeffrey J. Reuer, Jeffrey S. Smith (2002)), celles portant sur les partenariats entre FMN et PME dans les pays en développement sont rares. En mobilisant une revue de littérature narrative, cet article explore comment ces relations peuvent varier selon la taille, les objectifs des partenaires et du contexte national. Les principaux résultats révèlent que les FMN recherchent principalement la réduction des coûts et l'accès aux réseaux locaux, tandis que les PME visent à bénéficier de l'image des grandes entreprises et à accéder à de nouveaux marchés. Les défis majeurs identifiés incluent les asymétries d'information et les différences culturelles, qui influencent la réussite des partenariats |
| Keywords: | FMN -PME -Coopération -Marocobstacle Classification JEL : F23 L23 O55 Type de papier : Article théorique MNCs -SMEs -Cooperation -Morrocoobstacle Classification JEL: F23 L23 O55 Paper type: Theoretical Research, FMN -PME -Coopération -Marocobstacle Classification JEL : F23, L23, O55 Type de papier : Article théorique MNCs -SMEs -Cooperation -Morrocoobstacle Classification JEL: F23, O55 Paper type: Theoretical Research |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05137758 |
| By: | Mishra, Sarmistha; Sahoo, Dukhabandhu; Mohapatra, Souryabrata |
| Abstract: | Purpose The study aims to explore the enablers and barriers to the adoption of Circular Economy (CE) practices in Micro, Small and Medium Enterprises (MSMEs) and examine how these factors differ between developed and developing countries. Methodology The research utilises a Systematic Literature Review (SLR) methodology to identify key enablers and barriers to CE adoption in MSMEs. The SLR process involved a detailed search and analysis of relevant academic articles from the Scopus and Web of Science databases, following the PRISMA guidelines to ensure transparency. Findings The study identifies 19 enablers and 16 barriers to CE adoption in MSMEs. Technological upgrades are the key factor helping MSMEs successfully implement CE practices, while financial constraints are the main challenge they face, according to studies from both developed and developing countries. Originality This research contributes to the existing body of literature by not only identifying the primary factors that either support or impede the implementation of CE by MSMEs but also by classifying them according to developed and developing countries to provide policymakers and MSME stakeholders with valuable insights on enhancing the implementation of CE in both countries by taking into account the particular barriers and enablers faced by each group individually. |
| Keywords: | Circular economy; MSMEs; Enablers and barriers; Systematic literature review |
| JEL: | L26 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124196 |
| By: | Ayoub El Haddada (UM5 - Université Mohammed V de Rabat [Agdal], FLSH UM5 - Faculté des Lettres et des Sciences Humaines Rabat - Institut National d'Aménagement et d'Urbanisme, Rabat); Abdelhakim Mansoureddine (UM5 - Université Mohammed V de Rabat [Agdal], FLSH UM5 - Faculté des Lettres et des Sciences Humaines Rabat - Institut National d'Aménagement et d'Urbanisme, Rabat) |
| Abstract: | This article offers a narrative review of the literature dedicated to the use of Internal Social Networks (ISNs) in Knowledge Management (KM), with a particular focus on the Moroccan context. Drawing on a body of both theoretical and empirical studies, from national and international sources, the analysis identifies the factors that facilitate the integration of ISNs within organisations, as well as the specific obstacles encountered in culturally hierarchical environments. The findings reveal that while ISNs are widely adopted in industrialised countries to catalyse organisational innovation, their uptake in Morocco remains limited, hindered by cultural resistance, vertical organisational structures, and technological shortcomings. The article highlights the scarcity of context-specific empirical research and underscores the absence of a theoretical framework tailored to local dynamics. Based on this analysis, recommendations are made to encourage the adoption of ISNs, particularly through the development ofa more collaborative organisational culture, technological investment, and the formulation of contextualised theoretical models. Finally, the study proposes a conceptual framework intended to guide future empirical research on the relationship between ISNs and knowledge management performance in Morocco. |
| Abstract: | Cet article propose une revue narrative de la littérature consacrée à l'usage des Réseaux Sociaux Internes (RSI) dans la gestion des connaissances (Knowledge Management - KM), avec un focus particulier sur le contexte marocain. En mobilisant un corpus d'études théoriques et empiriques, tant nationales qu'internationales, l'analyse identifie les facteurs favorisant l'intégration des RSI dans les organisations, ainsi que les obstacles spécifiques rencontrés dans les environnements à forte hiérarchisation culturelle. Les résultats révèlent que, tandis que les RSI sont largement adoptés dans les pays industrialisés pour catalyser l'innovation organisationnelle, leur diffusion reste marginale au Maroc, entravée par des résistances culturelles, des structures organisationnelles verticales et des carences technologiques. L'article met en évidence le manque de recherches empiriques contextualisées et souligne l'absence d'un cadre théorique adapté aux dynamiques locales. À partir de cette analyse, des recommandations sont formulées pour encourager l'adoption des RSI, notamment à travers le développement d'une culture organisationnelle plus collaborative, l'investissement technologique et l'élaboration de modèles théoriques contextualisés. L'étude propose enfin un cadre conceptuel destiné à orienter les futures recherches empiriques sur les liens entre RSI et performance en gestion des connaissances au Maroc. |
| Keywords: | Konwledge management, Internal Communications, Internal Social Networks, Réseau Social Interne, Communication interne |
| Date: | 2025–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05146272 |
| By: | Sanjaya Kumar Malik (Institute for Studies in Industrial Development, New Delhi) |
| Abstract: | The electronics industry is the largest and fastest-growing industry in the world. Because of their complementary and enabler properties, electronics are increasingly diffusing into communication, computing, healthcare, defence, transportation, energy, and countless other applications around the world. Electronics are the driving force behind emerging technologies such as artificial intelligence, blockchain, cloud computing, internet of things, advanced robotics, 3D printing, 5G, and so on. The electronics industry is the most-prioritized industry of the government of India as it lies in the heart of the Make in India and Digital India programme of the country. The domestic electronics industry has nevertheless been crippled with declining share of value addition in output and negative productivity growth over the last three decades. Employing the unbalanced panel data on electronics manufacturing firms from ProwessIQ database for the period spanning from 2000-01 to 2021-22, the paper analyses the technological efforts by the electronics manufacturing firms to delineate the dismal productivity growth in Indian electronics industry. The paper underscores an abysmal technological effort made by the firms in the electronics industry, that explains the dismal productivity growth in the Indian electronics industry during the last two decades. Further, the selective policy measures are not seen to have accelerated the technological efforts by firms in the electronics industry, instead there was a declined allocation of resources towards the technological activities to revive the productivity growth of the electronics industry. |
| Keywords: | Technological change, total factor productivity, electronics industry, India |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:sid:wpaper:277a |
| By: | Al Said Ahmat (CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne, REGARDS - Recherches en Economie Gestion Agroressources Durabilité et Santé - CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne) |
| Abstract: | This article explores how coopetition can accelerate the adoption of technology by agricultural microenterprises in Chad. In developing countries, the majority of farmers remain excluded from technological advances, which are nonetheless essential for the modernization of their practices. Coopetition emerges here as an innovative solution to overcome these barriers. The central question is: how can competing microenterprises cooperate to share technological tools in their respective operations? Through semi-structured interviews conducted with small-scale farmers, we identified several typical configurations of coopetition, with a focus on the role of dyadic relationships and the actors involved in co-development dynamics. The findings reveal that coopetition serves as a powerful strategic lever to stimulate the growth of microenterprises, relying on support networks and sharing practices. This research thus highlights the importance of collective strategies and relational capital in the success of such initiatives. |
| Abstract: | Cet article explore comment la coopétition peut accélérer l'adoption des technologies par les TPE agricoles au Tchad. Dans les pays en développement, la majorité des agriculteurs reste exclue des avancées technologiques, pourtant essentielles à la modernisation de leurs pratiques. La coopétition émerge ici comme une solution innovante pour lever ces barrières. La question qui se pose : comment des TPE concurrentes, parviennent-elles à coopérer pour partager des outils technologiques dans leurs exploitations respectives ? À travers des entretiens semi-directifs menés auprès des petits agriculteurs, nous avons identifié plusieurs configurations type de coopétition, en analysant notamment le rôle des relations dyadiques et des acteurs impliqués dans des dynamiques de co-développement. Les résultats révèlent que la coopétition constitue un levier stratégique puissant pour stimuler la croissance des TPE, en s'appuyant sur des réseaux d'entraide et des logiques de partage. Cette recherche met ainsi en lumière l'importance des stratégies collectives et du capital relationnel dans la réussite de telles initiatives. |
| Keywords: | appropriation, outils technologiques, coopétition, TPE agricoles, Tchad., technological tools, coopetition, agricultural microenterprises, Chad. |
| Date: | 2025–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05146659 |