|
on Small Business Management |
| By: | Drydakis, Nick |
| Abstract: | Artificial intelligence (AI) is increasingly recognised as a key driver of business innovation, yet its adoption among small and medium-sized enterprises (SMEs) varies considerably. This study examines whether AI Capital, defined as AI-related knowledge, skills and capabilities, is associated with business innovation among SMEs in England. Using a two-wave longitudinal panel dataset comprising 504 observations from SMEs collected in 2024 and 2025, the study develops and validates a 45-item AI Capital of Business scale. Business innovation is measured across five dimensions: product and service innovation, process innovation, technology adoption, market and customer engagement, and organisational culture and strategy. Regression models, including pooled OLS, Random Effects, and Fixed Effects specifications, are employed. The findings reveal a robust positive association between AI Capital and business innovation across all model specifications. This association holds across all business innovation dimensions and remains consistent for SMEs with differing levels of financial performance, size, and operational maturity. Each component of AI Capital independently exhibits a positive association with business innovation outcomes. The results highlight the central role of AI Capital in enabling SMEs to translate AI adoption into tangible business innovation. From a policy perspective, the findings indicate the value of targeted interventions that prioritise AI upskilling, organisational capability development, and accessible support mechanisms to promote inclusive and sustainable AI-driven business innovation among SMEs. |
| Keywords: | Artificial Intelligence, Artificial Intelligence Capital, Business Innovation, Innovation, SMEs |
| JEL: | O31 O33 O32 L26 L25 M15 D83 J24 O14 O39 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1723 |
| By: | Davide Antonioli; Elisa Chioatto; Giovanni Guidetti; Riccardo Leoncini; Mariele Macaluso |
| Abstract: | This paper analyses how firms' skill development strategies affect their propensity to introduce innovation. We develop an adjustment-cost framework that links human capital theory and institutionalist and evolutionary approaches, considering innovation as an activity that entails costs in labour adjustment arising either from the training activities of workers or the recruitment of skilled employees. Using a two-wave panel of Italian manufacturing firms observed in 2017-2018 and 2019-2020, we analyse firms' adoption of total, product, process, and circular innovation as a function of internal training practices and of external skills acquisition. Overall, the empirical analysis confirms the expected positive relationship between training and innovation, while also revealing important nuances in the workforce upskilling strategies required for different types of innovation. Moreover, while training activities and skills development are essential across all forms of innovation, our findings indicate that internal training is particularly effective in supporting the implementation of circular innovations. By contrast, external recruitment appears to be consistently necessary whenever innovations are introduced, regardless of their type. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.05153 |
| By: | Haotian Deng (Department of Economics, Ghent University, Belgium); Sam Desiere (Department of Economics, Ghent University, Belgium; IZA Institute of Labor Economics, Germany); Bart Cockx (Department of Economics, Ghent University, Belgium; IZA Institute of Labor Economics, Germany; IRES/LIDAM, UCLouvain, Belgium; CESIfo, Germany; ROA, Maastricht University, the Netherlands); Gert Bijnens (National Bank of Belgium) |
| Abstract: | This paper studies how employment subsidies for start-ups shape their performance. We exploit an unexpected policy reform in Belgium that permanently exempted start-ups hiring their first employee from payroll taxes for that employee. Using firm-level administrative data and a regression-discontinuity-in-time design, we find that subsidized post-reform startups employed fewer workers and generated lower output, value added, and profits compared to pre-reform start-ups. However, post-reform start-ups were more likely to survive as employers. These effects emerged within the first year after hiring and remained stable over a medium horizon of three years. Our findings indicate a compositional shift: the subsidy primarily induced low-productivity firms to enter the market. As most firms nowadays are nonemployers, our results meaningfully generalize the theoretical implications of standard neoclassical entrepreneurship models (employee–employer margin) and fill the important gap of the nonemployer–employer margin. |
| Keywords: | entrepreneurship; start-up; employment subsidy; tax reduction; labor demand; small firms |
| JEL: | H25 J23 J24 J38 L25 L26 M51 |
| Date: | 2026–02–04 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2026004 |
| By: | Kekezi, Ana |
| Abstract: | This paper explores the interlinkages between the Sustainable Development Goals (SDGs) and small and medium enterprise (SME) development in Albania, assessing how national policies and donor-supported initiatives to the business ecosystem contribute to reducing inequality and fostering inclusive growth. The study adopts a participatory multiple-case design within a mixed-methods framework. It triangulates national and regional policy documents, official SME performance indicators, and longitudinal field evidence collected through more than ten visits, interviews, and direct observations with each of the thirteen SMEs across a six-month period in three neighbouring municipalities of Albania. Results show partial alignment between SDG priorities and SME policies. Firms demonstrate tangible improvements in workplace organisation, innovation capacity, and gender participation, though systemic constraints limited finance, technological adoption, and rural inclusion persist. . The study is based on extensive field engagement, including more than ten visits, interviews, and direct observations for each of the thirteen SMEs over a six-month period, complemented by national policy and statistical analysis. While these longitudinal observations provide rich qualitative depth and triangulated validity, the research does not aim to establish causal relationships or statistical generalisation beyond the observed sample. Strengthening SME access to finance, digitalisation, and capacity development can advance inclusive economic growth. Social implications. Enterprise upgrading contributes to regional cohesion, household income stability, and women’s participation in the labour market. This paper provides field-verified evidence on how Albania’s SMEs operationalise SDG 8 (Decent Work), SDG 9 (Industry and Innovation), and SDG 10 (Reduced Inequalities), offering insight into sustainable industrialisation in a transition economy. |
| Keywords: | SME; Sustainable Development Goals (SDGs); Business ecosystem; Albania; Transition economies |
| JEL: | L26 O17 O25 Q13 |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127693 |
| By: | Samiha El Azzouzi (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès); Mohammed M'Hamdi (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès) |
| Abstract: | Access to finance remains one of the main challenges faced by Moroccan small and medium-sized enterprises (SMEs), largely due to banking governance constraints, information asymmetry and compliance requirements. In this context, this paper aims to analyse the impact of conventional and participatory financing methods on the financial and organizational performance of Moroccan SMEs, while examining the mediating role of banking governance and ethical practices. Methodologically, the study adopts a quantitative approach based on a survey conducted among SME managers operating in various economic sectors in Morocco. The collected data are analysed using econometric models estimated through linear regression with EViews software. The empirical results indicate, first, that the quality of banking governance mechanisms has a positive and significant effect on SMEs' access to finance. Second, the findings reveal a differentiated impact of financing choices on overall performance: conventional financing contributes more to financial stability, whereas participatory financing enhances organizational performance, trust and the sustainability of banking relationships. These findings highlight the relevance of a hybrid financing approach for Moroccan SMEs and emphasize the need to strengthen governance, transparency and compliance practices in order to improve the efficiency of the financial system and support sustainable SME development. |
| Abstract: | L'accès au financement constitue l'un des principaux défis auxquels font face les petites et moyennes entreprises (PME) marocaines, en raison notamment des contraintes liées à la gouvernance bancaire, à l'asymétrie d'information et aux exigences de conformité. Dans ce contexte, cet article vise à analyser l'impact des différents modes de financement conventionnels et participatifs sur la performance financière et organisationnelle des PME marocaines, tout en examinant le rôle médiateur de la gouvernance bancaire et des pratiques éthiques. Sur le plan méthodologique, l'étude s'appuie sur une approche quantitative fondée sur une enquête menée auprès de dirigeants de PME opérant dans plusieurs secteurs d'activité au Maroc. Les données collectées ont été traitées à l'aide de modèles économétriques estimés par régression linéaire sous le logiciel EViews. Les résultats empiriques montrent, d'une part, que la qualité des mécanismes de gouvernance bancaire exerce un effet positif et significatif sur l'accès des PME au financement. D'autre part, ils révèlent un impact différencié des modes de financement sur la performance globale : le financement conventionnel contribue davantage à la stabilité financière, tandis que le financement participatif favorise la performance organisationnelle, la confiance et la durabilité des relations bancaires. Ces résultats mettent en évidence l'intérêt d'une approche hybride du financement des PME marocaines et soulignent l'importance de renforcer les pratiques de gouvernance, de transparence et de conformité afin d'améliorer l'efficacité du système financier et de soutenir le développement durable des PME. |
| Keywords: | Gouvernance bancaire financement conventionnel et participatif performance globale PME marocaines. Classification JEL: G21 Type de papier: Recherche empirique Banking governance conventional and participatory financing overall performance Moroccan SMEs. JEL Classification: G21 Paper type: Empirical Research, Gouvernance bancaire, financement conventionnel et participatif, performance globale, PME marocaines. Classification JEL: G21 Type de papier: Recherche empirique Banking governance, conventional and participatory financing, overall performance, Moroccan SMEs. JEL Classification: G21 Paper type: Empirical Research |
| Date: | 2026–01–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05492631 |
| By: | Alexandra Bykova (The Vienna Institute for International Economic Studies, wiiw); Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Ioannis Gutzianas (The Vienna Institute for International Economic Studies, wiiw); Mario Holzner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Europe’s innovation bottleneck increasingly manifests in the difficulty of scaling promising startups into globally competitive firms. Central, East and Southeast Europe (CESEE) is particularly exposed to this due to limited finance and local acquirers, which lead to serious risks of relocation particularly beyond the EU’s borders. This policy note documents the sectoral structure and dynamics of CESEE small enterprises (10-49 employees) across six broadly defined macro-sectors Digital Economy, Life Sciences, Media, Creative Economy, Production, and Neighbourhood Economy. It uses Eurostat’s Structural Business Statistics and patent data from the OECD Patent Database. An analysis of the most influential rankings of innovative clusters and related outcome indicators complements the descriptive analysis. The note finds that Production and the Neighbourhood Economy represent the lion’s share of the region’s small enterprises, while Digital Economy is the clear growth champion. Creative Economy activities show solid, if uneven, expansion. And while the Media macro-sector stagnates, Life Sciences exhibits highly concentrated but distinctive niche specialisations, especially in smaller economies. Ecosystem rankings and unicorn outcomes reveal an intensely urban, highly heterogeneous innovation landscape. Some small CESEE states, such as Estonia, Lithuania, and Croatia, achieve exceptional unicorn densities, yet many of these firms relocate their headquarters to the US or the UK to access deeper capital markets. The paper posits that strategic intra-EU relocation and dual-hub models – particularly leveraging, for instance, Vienna’s role as a proximate, research-intensive hub – can help to keep CESEE firms and value creation within the European innovation system while Capital Markets Union reforms remain incomplete. |
| Keywords: | CESEE, Startups, Scaleups, Unicorns, Innovation, Sectoral specialisation, Patents, Urban hubs, Capital markets |
| JEL: | L26 O30 O52 R11 R58 G24 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:105 |
| By: | Diego Ocampo-Corrales (AQR-IREA, Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain.); Rosina Moreno (AQR-IREA, Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain.) |
| Abstract: | This paper investigates the role of regions’ recombinatorial technological capacity in shaping the technological space. To do so, we identify novel combinations of technologies and track their evolution by tracing all subsequent inventions that incorporate the same combination. Building on the concepts of relatedness and geographical proximity, we focus on the relevance of the technological antecedents of a pair of technologies combined for the first time in determining their success. This is due through the estimation of the likelihood of a new technological combination eventually becoming embedded within the broader knowledge space. Using patent data from 1976 to 2022 in the case of the European regions, we find strong evidence that a higher degree of relatedness between the technological antecedents of the two combined technologies significantly increases the likelihood that the combination will be reused in future inventions. Additionally, we find that the success of a new combination also benefits from the presence of dissimilar knowledge—not directly involved in the combination’s antecedents but accessible within the surrounding technological environment. In these cases, the greater the relatedness between the new invention’s antecedents and the broader regional knowledge base, the more likely it is to generate a high number of follow-on inventions and contribute meaningfully to the formation of the technological space. |
| Keywords: | New Combination of Technologies; Regional Innovation; European Regions; Recombination Capacity; Knowledge Space; Technological Antecedents. JEL classification: O18; O31; O33; R11. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202526 |
| By: | Melecky, Martin; Ruiz Ortega, Claudia; Bizhan, Asset; Jambal, Ganbaatar |
| Abstract: | This paper evaluates the employment and sales effects of two widely used financial support instruments for small and medium-sized enterprises, interest rate subsidies and credit guarantees, using administrative program data from Kazakhstan matched to the universe of firms. Utilizing staggered intervention rollouts and a difference-in-differences design, the analysis reveals significant differences across program designs and local labor market conditions. Interest rate subsidies, despite their large fiscal costs, fail to improve firm performance: beneficiary firms experience a 10 percent decline in employment and no significant increase in sales. Fully subsidized credit guarantees show no discernible effects on sales or employment. By contrast, a market-aligned, fee-based partial credit guarantee that ensures lender and borrower risk-sharing increases employment by 24 percent and sales by 21 percent, with particularly stronger effects among women-led and formally incorporated businesses. These employment gains are substantially larger in regions with higher pre-program unemployment, suggesting that well-designed credit guarantees are more likely to generate net job creation in labor markets with greater slack, rather than merely reallocating workers across firms. Overall, the findings underscore the pivotal role of incentive-compatible program design and local labor market condit ions in determining the effectiveness of financial policies for small and medium-sized enterprises. |
| Date: | 2026–03–23 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11344 |
| By: | Lerner, Josh (Harvard University and NBER); Liu, Junxi (University of Warwick); Moscona, Jacob (MIT); Yang, David Y. (Harvard University, BREAD, J-PAL and NBER.) |
| Abstract: | Global innovation and entrepreneurship have 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 ascent of high-potential entrepreneurship and venture capital in China. First, using comprehensive global data, we show that as the Chinese venture industry rose in importance in certain sectors, entrepreneurship increased substantially in other emerging markets. 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. The estimates are similar when exploiting Chinese sector-specific policies that affected the likelihood of entrepreneurship. 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 economic consequences, including a rise in serial entrepreneurship, cross-sector spillovers, innovation, and broader measures of socioeconomic well-being. Together, our findings suggest that many developing countries benefited from the more “appropriate” businesses and technology that resulted from a rise of an innovation hub in an emerging economy. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1608 |
| By: | Geng, Heng (Griffin); Hau, Harald; Liu, Pengfei |
| Abstract: | Corporate Opportunity Waiver (COW) laws permit firms to suspend fiduciary duties related to corporate opportunities. Fich, Harford, and Tran (2023) argue that these laws reduced firm innovation and lowered corporate valuation for research-intensive firms. However, we find that over 90% of the regressions we re-examine are non-replicable using correct samples and specifications. We further show that the reported decline in Tobin's q is confounded by the effects of the dot-com bubble burst. Moreover, public firms subject to COWs reduce takeover defenses, contradicting their argument that COW laws weaken corporate governance. Overall, their conclusion that COW laws foster managerial disloyalty and harm shareholder value is not supported by the data. |
| Keywords: | COW laws, fiduciary duties, shareholder value, innovation |
| JEL: | G34 G38 O34 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:285 |
| By: | Julia Müller; Thorsten Upmann |
| Abstract: | This paper develops a dynamic model in which the productivity of joint research governs strategic investment timing in innovation races. Departing from the standard assumption that discovery rates scale proportionally with the number of active firms, we allow research to exhibit decreasing or increasing returns, thereby endogenizing the aggressiveness of innovation competition. We show that returns to joint research determine whether innovation races exhibit preemption or coordination. When research efforts are substitutes, follower entry is unattractive, generating a first-mover advantage and a preemption equilibrium. When complementarities are sufficiently strong, the gains from early investment vanish and firms invest simultaneously. The model thus identifies a regime shift in innovation races: competition accelerates investment under decreasing returns but promotes coordinated entry under increasing returns. These findings highlight the research technology as a central determinant of market dynamics and provide a unified perspective on heterogeneous patterns of innovation. |
| Keywords: | innovation races, R&D competition, strategic investment timing, preemption and coordination, research complementarities |
| JEL: | O31 D81 C73 L13 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12552 |
| By: | Peng Hu'An (Guangxi Normal University); Fateh Saci (CHROME - Détection, évaluation, gestion des risques CHROniques et éMErgents (CHROME) - Nîmes Université - UNIMES - Nîmes Université, UMay - Université de Mayotte (UMay)); Javid Iqbal (CUI - COMSATS University Islamabad); Mohamad Ahmad (LARGEPA - Laboratoire de recherche en sciences de gestion Panthéon-Assas - Université Paris-Panthéon-Assas); Wafa Ghardallou (Princess Nourah Bint Abdulrahman University); Ubaldo Comite (Giustino Fortunato University) |
| Abstract: | Amongst escalating environmental challenges, organizations are increasingly adopting leadership approaches that advance sustainability-oriented outcomes. This study investigates the influence of Green Servant Leadership (GSL) on Green Innovation (GI), emphasizing the mediating role of Tacit Green Knowledge (TK) and the moderating effect of Organizational Green Culture (OC). Drawing on empirical data collected from China's manufacturing sector and employing structural equation modeling via SmartPLS, the results demonstrate that GSL significantly fosters TK, which subsequently promotes GI. Furthermore, the moderation analysis indicates that OC positively strengthens the relationship between GSL and TK (β = 0.121, T = 3.562, p < 0.001), suggesting that the impact of green leadership on knowledge-sharing behaviors is amplified in organizations that cultivate a strong green culture. This moderated mediation effect implies that organizational culture not only enhances the dissemination of tacit green knowledge but also strengthens the indirect influence of leadership on innovation. |
| Keywords: | Moderated Mediation, Knowledge-Based, Organizational Green Culture, Green Innovation, Tacit Green Knowledge, Leadership |
| Date: | 2026–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05551357 |
| By: | Salvatore Viola (Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain; AQR-IREA, Spain.); Ernest Miguelez (Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain; AQR-IREA, Spain.); Rosina Moreno (Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain; AQR-IREA, Spain.); Davide Consoli (INGENIO, Universitat Politècnica de València, Spain; CSIC-UPV, Spain); François Perruchas (Universitat Politècnica de València, Spain.) |
| Abstract: | One important factor in addressing climate change is the development and deployment of environmental-related, or green, technologies (GT). Environmental-related technologies are distinct, requiring specific conditions to be developed which vary depending on their relative level of technological maturity. Recent studies have focused on the role of migrant inventors in creating these conditions and spurring regional diversification into new technological domains. Regional diversification helps regions avoid lock-in and even escape fossil fuel dependencies. While the contribution of migrants to science and innovation is well documented, less attention has been given to migrants and diversification, especially in the case of GT and along the technological life cycle. In this study, we investigate the role of US-based migrant inventors in regional GT diversification using patent data from the USPTO between the year 1990 and 2012. We find that migrant inventors are positively associated with regional GT diversification, partly as a result of their previous patenting experience as well as the specializations of their countries of origin. With regard to the technological life cycle, while geographically diffused technologies rely on corresponding inventor experience, emergent technological diversification benefits from inventors from specialized countries. These findings highlight the bridging role that migrant inventors in international knowledge transfer and their importance in regional diversification in particular environmental-related technologies. |
| Keywords: | Regional Diversification; Green Technology; Immigration; Technological Life Cycle. JEL classification: O33; Q55; J61; R11. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202517 |
| By: | 手塚, 昂嗣 |
| Abstract: | 本研究は、企業とメインバンクとの地理的距離の変化が、企業の借入ポートフォリオの再編に与える影響を実証的に分析した。帝国データバンク（TDB）の2008〜2021年のパネルデータ（企業−年レベルで約1, 880万観測）を用い、支店統廃合等による距離拡大が新規銀行との取引開始および既存銀行の取引順位変動に与える効果を推定した。 分析の結果、以下の知見が得られた。第一に、メインバンクとの距離が拡大した企業は、新規銀行との取引を開始し（オッズ比約18倍）、既存のサブ取引銀行の順位を引き上げる（約25%ポイント上昇）傾向がある。第二に、小規模企業は新規取引開始、大規模企業はポートフォリオ内の順位変動という異なる調整チャネルを活用している。また、地方圏企業は都市圏企業よりも距離ショックに敏感である。第三に、COVID-19期においては、当初の仮説（デジタル化によるメガバンクの距離制約緩和）とは逆に、地方銀行で距離の影響が緩和され、メガバンクで相対的に強まった。これは、ゼロゼロ融資を通じた地銀のロックイン効果として解釈できる。 本研究の貢献は、Ono et al.（2023）が示したメインバンクのスイッチに至る前の「水面下の調整」を捉えた点にある。企業は距離ショックに対して即座にメインバンクを変更するのではなく、新規取引の開始やサブ取引銀行の順位引き上げという段階的な調整を行っている。また、危機時の政策支援が企業−銀行関係の構造に長期的な影響を及ぼしうることを示した点で、政策的含意も有する。, This study examines how changes in geographical distance between firms and their main banks affect the reorganization of borrowing portfolios, using Teikoku Databank (TDB) panel data for 2008–2021 (approximately 18.8 million firm-year observations). Distance shocks, arising primarily from bank branch consolidations, serve as the key explanatory variable. Three main findings emerge. First, firms experiencing an increase in distance to their main bank are significantly more likely to initiate new banking relationships (odds ratio ≈ 18) and to upgrade the ranking of existing sub-relationship banks (≈25 percentage point increase), revealing gradual portfolio adjustments that precede a complete main bank switch (Ono et al., 2023). Second, small firms adjust primarily through new bank entry, while large firms reallocate within existing portfolios; rural firms are more sensitive to distance shocks than metropolitan firms. Third, contrary to the hypothesis that digitalization would mitigate distance constraints for megabanks during COVID-19, the distance effect was attenuated for regional banks and relatively intensified for megabanks—interpreted as a lock-in effect of zero-interest, zero-collateral emergency lending channeled predominantly through regional banks. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:hit:tdbcdp:j-2025-01 |
| By: | Salomé Baslandze; Zachary Edwards; John Graham; Ty McClure; Brent H. Meyer; Michael Sparks; Sonya R. Waddell; Daniel Weitz |
| Abstract: | We use novel data from a survey of nearly 750 corporate executives to study the effects of artificial intelligence (AI) on productivity and the workforce. We document substantial heterogeneity in AI adoption across firms, with more than half having already invested, though many smaller firms are only beginning to do so. Labor productivity gains are positive, vary across sectors, and are expected to strengthen in 2026, with the largest effects concentrated in high-skill services and finance. These gains are not primarily driven by firms' capital deepening but instead reflect increases in revenue-based total factor productivity, closely associated with innovation-and demand-oriented channels. We document a productivity paradox, in which perceived productivity gains are larger than measured productivity gains, likely reflecting a delay in revenue realizations. In labor markets, we find little evidence of near-term aggregate employment declines due to AI, though larger companies anticipate AI-driven workforce reductions, while smaller firms expect modest gains. We also find evidence of compositional reallocation of labor both within and across firms, with routine clerical roles declining and a relative demand for skilled technical roles increasing. We develop an index that ranks job functions most negatively affected by AI. |
| JEL: | D22 D24 G0 J01 J24 M15 O33 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34984 |
| By: | Thomas {\AA}stebro; Frank M. Fossen; C\'edric Gutierrez |
| Abstract: | How do entrepreneurs act on their beliefs when probabilities of outcomes are unknown but subjectively perceived? We theorize that two distinct dimensions of ambiguity attitudes influence entrepreneurial action: ambiguity aversion - the unwillingness to bear ambiguity - and ambiguity sensitivity - how individuals discriminate between different levels of perceived chances of success. The second dimension determines how much entrepreneurs adjust their actions based on new information - a distinct aspect that cannot be captured by ambiguity aversion alone. Our theory suggests that entrepreneurs with different growth orientations have different ambiguity attitudes as compared to employees. Using incentivized measures from a large-scale survey, we find that incorporated entrepreneurs exhibit lower ambiguity aversion than employees, indicating that they are more willing to act under ambiguity. Distinctively, unincorporated self-employed individuals show higher ambiguity sensitivity, indicating that their actions are more responsive to changes in their beliefs. These patterns persist after controlling for risk attitudes, optimism, cognitive ability, and demographics. Our results highlight the distinct impacts of ambiguity aversion and ambiguity sensitivity on entrepreneurial actions. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.14148 |
| By: | Balázs Reizer (ELTE Centre for Economic and Regional Studies; Corvinus University Budapest) |
| Abstract: | I investigate the relationship between bonus payments and firm performance using Hungarian linked employer-employee data. A raw comparison shows that firms paying bonuses to 10 percentage points more of their employees are 3-5 percent more productive. Then, I construct an instrument to estimate the incentive effect of bonus payments. The IV estimates show that the incentive effect of a 10 percentage point increase in the share of employees with bonus payments increases firm productivity by 7-14 percent. Based on these results, I conclude that the raw comparison of firms with and without bonuses underestimates the incentive effects of bonus payments. Furthermore, some firms may have motivations for paying bonuses other than incentivizing employees. |
| Keywords: | Risk Management, Wage Structure, Personnel Economics |
| JEL: | G32 M5 J31 J23 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:has:discpr:2516 |
| By: | Hideaki MIYAJIMA; Konari UCHIDA; Hirari OMORI; Yu ASAI |
| Abstract: | Using data from the Director Compensation Survey 2023 conducted by Deloitte Tohmatsu LLC, this study examines the characteristics of firms that adopt CEO succession plans and the consequences of their adoption. Firms that separate management execution from monitoring—such as those with executive officer systems, higher ratios of outside directors, and voluntary nominating committees—are more likely to implement succession planning. This finding is consistent with the view that when the board of directors has less opportunity to directly observe CEO candidates due to structural separation, succession plans become more necessary. Following the disclosure of a succession plan, stock prices respond positively to CEO turnover announcements. Consistent with prior research, we find that larger firms are more likely to adopt succession plans, supporting the view that organizations requiring skilled CEOs offer a training program in their succession plans. However, we do not find strong evidence that business diversification, institutional ownership, or foreign ownership significantly influence the likelihood of adopting succession plans. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:eti:rdpsjp:26015 |
| By: | Eiblmeier, Sebastian |
| Abstract: | This paper explores the link between business outlook and corporate debt. Previous research has found business outlook to be a key determinant of firm investment and firm investment to be a key reason for firms to take on debt. This implies a connection between outlook and debt. Indeed, panel regressions show a tight connection between business sentiment and firms' debt growth. A mediation analysis reveals that most of this effect runs through inventories and accounts receivable, whereas for investment only a smaller effect can be found. |
| Keywords: | Firm expectations, corporate finance, panel regression, mediation analysis. |
| JEL: | C23 D22 D84 D92 G31 |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128296 |
| By: | Konstantin Remke (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Sönke Mestwerdt (Alliance MBS - Alliance Manchester Business School - University of Manchester [Manchester]); Matthias Mrożewski (ESCP Europe Campus Berlin - ESCP Europe - Ecole Supérieure de Commerce de Paris); Maximilian Tigges (ESCP Europe Campus Berlin - ESCP Europe - Ecole Supérieure de Commerce de Paris); René Mauer (ESCP Europe Campus Berlin - ESCP Europe - Ecole Supérieure de Commerce de Paris) |
| Abstract: | The circular economy (CE) has emerged as a promising paradigm to address environmental challenges through resource efficiency, product life cycle transformation, and business model innovation. Yet, implementing circular business models remains challenging due to the complexity of coordinating stakeholders and managing large volumes of data, especially across the different life cycle phases. Artificial intelligence (AI) offers great potential to address these challenges. However, prior research has predominantly focused on a generic and undifferentiated application of AI within the CE, neglecting the complexity and diversity across life cycle phases. Our study seeks to address this. Drawing on the external enablement framework, we conduct a qualitative study comprising 57 semi‐structured interviews with domain experts and AI‐based ventures operating in the CE. In demonstrating how AI facilitates business model innovation by enabling navigation through circular product life cycles, our findings advance three key areas. We extend the external enablement framework by showing that external enablers can interact synergistically. Specifically, we develop a model that illustrates how the underlying dynamics of the CE and AI jointly enable business model innovation and subsequent new venture creation through complementary mechanisms, a dynamic we term dual enablement . We show how AI enhances life cycle efficiency, fosters systems interconnectivity, and supports holistic decision‐making, engendering two novel categories of business models, which we coin AI‐based business models for complexity navigation and dual enablement. |
| Keywords: | Artificial intelligence, Circular economy, Business model innovation, External enablement, Grand challenges |
| Date: | 2026–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05547705 |
| By: | Martin Peitz |
| Abstract: | Innovation and the diffusion of new technologies are central to consumer welfare in dynamic markets. On the one hand, mergers may harm innovation by removing independent innovation paths, restricting access to key inputs for innovation, or weakening incentives to adopt and diffuse new technologies. On the other hand, mergers may generate innovation efficiencies when they combine complementary tangible and intangible assets. This article discusses how the revised EU Merger Guidelines should evaluate these opposing forces and proposes a structured approach to assessing innovation harms and efficiencies while ensuring that merger control remains focused on effective competition and consumer welfare. |
| Keywords: | EU merger control, innovation theories of harm, innovation efficiencies, start-up acquisitions, EU Merger Guidelines |
| JEL: | K21 L40 L41 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_741 |
| By: | Giovanni Guidetti; Riccardo Leoncini; Mariele Macaluso |
| Abstract: | This paper studies patenting trends in artificial intelligence (AI) and robotics from 1980 to 2019. We introduce a novel distinction between traditional robotics and robotics embedding AI functionalities. Using patent data and a time-series econometric approach, we examine whether these domains share common long-run dynamics and how their trajectories differ across major innovation systems. Three main findings emerge. First, patenting activity in core AI, traditional robots, and AI-enhanced robots follows distinct trajectories, with AI-enhanced robotics accelerating sharply from the early 2010s. Second, structural breaks occur predominantly after 2010, indicating an acceleration in the technological dynamics associated with AI diffusion. Third, long-run relationships between AI and robotics vary systematically across countries: China exhibits strong integration between core AI and AI-enhanced robots, alongside a substantial contribution from universities and the public sector, whereas the United States displays a more market-oriented patenting structure and weaker integration between AI and robots. Europe, Japan, and South Korea show intermediate patterns. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.05034 |
| By: | Elmahdi Tcham (MAPES - Laboratoire de Recherche en Management de la Performance des Organisations Publiques, Privées et de l’Économie Sociale - École Nationale du Commerce et de Gestion d’Agadir,); Malika Souaf; Youssef El Wazani |
| Abstract: | The gradual generalization of ESG (Environmental, Social, and Governance) reporting, particularly through AMMC Circular No. 03/19, is engaging Moroccan companies, especially listed firms, in a dynamic process of transparency and sustainability. This regulatory development raises major challenges for accounting professions, notably chartered accountants, who are increasingly called upon to play a key role in supporting organizations in achieving compliance and structuring non-financial information. Based on a qualitative study conducted with fifteen Moroccan chartered accountants, relying on semi-structured interviews analysed through an inductive thematic analysis, this research examines perceptions, emerging practices, and the difficulties encountered in integrating ESG requirements into traditional audit and advisory missions. The findings reveal a growing awareness of the strategic importance of ESG criteria, alongside a lack of adequate training, appropriate tools, and formalized demand beyond listed companies. Nevertheless, some professionals are developing frugal innovation approaches to address these emerging needs, notably through the creation of simplified analytical frameworks, targeted client training, or the gradual adaptation of financial statements to ESG-related issues. The study highlights a reconfiguration of the chartered accountant's role, from a guarantor of financial compliance to a partner in sustainable transformation, particularly within Moroccan entrepreneurial ecosystems undergoing transition. |
| Abstract: | Résumé : La généralisation progressive du reporting ESG (environnemental, social et de gouvernance), notamment à travers la circulaire AMMC n°03/19, engage les entreprises marocaines, en particulier les sociétés cotées, dans une dynamique de transparence et de durabilité. Cette évolution réglementaire soulève des enjeux majeurs pour les professions du chiffre, notamment les experts-comptables, appelés à jouer un rôle clé dans l'accompagnement des organisations dans la mise en conformité et la structuration des informations extra-financières. À travers une étude qualitative menée auprès de quinze experts-comptables marocains, fondée sur des entretiens semi-directifs analysés selon une méthode d'analyse thématique à visée inductive, cette recherche analyse les perceptions, les pratiques émergentes et les difficultés rencontrées dans l'intégration des exigences ESG dans les missions traditionnelles d'audit et de conseil. Les résultats révèlent une prise de conscience croissante de l'importance stratégique des critères ESG, mais aussi un déficit de formation, d'outils adaptés et de demande formalisée en dehors des sociétés cotées. Certains professionnels développent cependant des démarches d'innovation frugale pour répondre à ces nouveaux besoins, notamment via la création de grilles d'analyse simplifiées, des formations clients ciblées ou l'adaptation progressive des états financiers aux enjeux ESG. L'étude met en lumière une reconfiguration du rôle de l'expert-comptable, de garant de la conformité financière vers partenaire de la transformation durable, en particulier dans les écosystèmes entrepreneuriaux marocains en transition. Abstract : The gradual generalization of ESG (Environmental, Social, and Governance) reporting, particularly through AMMC Circular No. 03/19, is engaging Moroccan companies, especially listed firms, in a dynamic process of transparency and sustainability. This regulatory development raises major challenges for accounting professions, notably chartered accountants, who are increasingly called upon to play a key role in supporting organizations in achieving compliance and structuring non-financial information. Based on a qualitative study conducted with fifteen Moroccan chartered accountants, relying on semi-structured interviews analysed through an inductive thematic analysis, this research examines perceptions, emerging practices, and the difficulties encountered in integrating ESG requirements into traditional audit and advisory missions. The findings reveal a growing awareness of the strategic importance of ESG criteria, alongside a lack of adequate training, appropriate tools, and formalized demand beyond listed companies. Nevertheless, some professionals are developing frugal innovation approaches to address these emerging needs, notably through the creation of simplified analytical frameworks, targeted client training, or the gradual adaptation of financial statements to ESG-related issues. The study highlights a reconfiguration of the chartered accountant's role, from a guarantor of financial compliance to a partner in sustainable transformation, particularly within Moroccan entrepreneurial ecosystems undergoing transition. |
| Keywords: | durabilité organisationnelle. JEL Classification : M41 Type du papier : Recherche empirique ESG reporting, chartered accountants, financial regulation, frugal innovation, organizational sustainability Classification JEL : M41, innovation frugale, réglementation financière, experts-comptables, Reporting ESG, Reporting ESG experts-comptables réglementation financière innovation frugale durabilité organisationnelle. JEL Classification : M41 Type du papier : Recherche empirique ESG reporting chartered accountants financial regulation frugal innovation organizational sustainability Classification JEL : M41 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05491857 |
| By: | Steinhuebel-Rasheed, Linda; Darwish, Maram; Ecker, Olivier |
| Abstract: | Rural households in many low- and middle-income countries remain highly dependent on agriculture and related value chain activities, making them particularly vulnerable to the impacts of climate change. As rising temperatures and increasing climate variability reduce agricultural productivity and income stability, small and medium enterprises (SMEs) are increasingly promoted as a path toward rural development and the transformation of the agrifood systems (AFS). Yet, little is known about whether climate change influences rural households’ decision to start an enterprise to diversify or switch their income sources away from agriculture-related activities in order to adapt to weather risks. We address this research gap by drawing from nationally representative data from the Egypt Labor Market Panel Survey 2023 and estimating a dynamic duration model to explore how heat stress is linked to households’ likelihood to start a (nonfarm) SME. Our findings offer new evidence for climate-responsive rural policy and SME support strategies in vulnerable regions. |
| Keywords: | small and medium enterprises; development; climate change; climate change adaptation; food systems; agrifood systems; heat stress; dynamic models; modelling; Egypt; Northern Africa |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:180550 |
| By: | Dubey, Rohan (National Institute of Public Finance and Policy); Chakraborty, Lekha (National Institute of Public Finance and Policy) |
| Abstract: | The rapid diffusion of artificial intelligence (AI) has generated widespread expectations of substantial productivity gains, yet empirical evidence on its macroeconomic effects remains limited. This paper provides across-country empirical assessment of the relationship between AI adoption and labour productivity using a newly constructed panel dataset covering G20 over the period 2012–2023. We develop two composite indices of AI adoption that capture both relative cross-country positioning and within-country evolution overtime, drawing on indicators of investment, innovation, computational capacity, and scientific output. Employing panel regressions with country and time fixed effects and a rich set of macroeconomic controls, we find evidence of a statistically significant short-run effect of AI diffusion on aggregate labour productivity. These results are robust across alternative index constructions and model specifications. We then extend our analysis to human development indicators and find that AI diffusion is positively associated with UNDP the Human Development Index (HDI). At the sametime, the magnitude and dynamics of the estimated effects suggest that productivity gains from AI are likely to materialize gradually and depend on complementary investments and structural conditions. Beyond the regression results, the indices developed in this paper provide a transparent framework for tracking AI diffusion and identifying areas of AI preparedness and technological lag, offering useful insights for future research and policy design. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:npf:wpaper:26/445 |