|
on Small Business Management |
|
Issue of 2026–03–23
thirty papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Talatu Jalloh (Graduate School of Economics, Kobe University); David Wolf (Graduate School of Economics, Kobe University); Keijiro Otsuka (Kobe University) |
| Abstract: | Entrepreneurs play critical roles in driving economic growth, and recent evidence suggests that entrepreneurial skills can be developed through job training. Yet little is known about the conditions under which such training shapes entrepreneurial mindsets. This study examines how management and work environment factors influence entrepreneurial aspiration. We draw on a novel survey dataset collected from participants in the African Business Education Initiative—a program that aims to develop Africa’s industrial human resources. Our findings consistently demonstrate that task clarity, role-match, and mentorship positively influence entrepreneurial aspiration, whereas facing adaptability challenges has no meaningful effect. Jointly, task clarity and role-match exerted greater influence on entrepreneurial aspiration than either factor alone, highlighting their complementarity relationship. Furthermore, mentorship appeared to play a compensatory role by offsetting any potential negative effect of adaptability challenges on entrepreneurial aspiration. Further analysis showed that management factors played a larger role in promoting entrepreneurial aspirations than work environment factors. These findings suggest that a well-structured internship program that emphasizes clear responsibilities, role alignment, and strong mentorship can cultivate future entrepreneurial leaders who can foster entrepreneurship and drive innovation in Africa. |
| Keywords: | management factors, work environment factors, entrepreneurial aspiration |
| JEL: | L26 J24 O15 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:koe:wpaper:2603 |
| By: | Océane Vernerey (LISA - Laboratoire « Lieux, Identités, eSpaces, Activités » (UMR CNRS 6240 LISA) - CNRS - Centre National de la Recherche Scientifique - Università di Corsica Pasquale Paoli [Université de Corse Pascal Paoli], LEDi - Laboratoire d'Economie de Dijon [Dijon] - UBE - Université Bourgogne Europe) |
| Abstract: | In this article, we re-examine the innovation process through the CDM model. Compared to the existing literature, this study offers several contributions. First, it relies on an unusually large dataset of 509, 033 firms from nine European countries – Bulgaria, the Czech Republic, Estonia, Spain, Hungary, Lithuania, Portugal, Romania, and Slovakia – over the period 1998–2016. This extensive dataset allows us to explore cross-country heterogeneity, as well as potential temporal trends across multiple survey waves. Second, the paper provides a systematic and detailed review of the vast CDM literature, offering a structured synthesis of prior findings and highlighting the main areas where results diverge across studies. Third, methodologically, we compare three alternative estimation strategies, which enables us to evaluate the robustness of our findings and to identify potential sources of heterogeneity in estimated relationships. Across all specifications, we find that R&D investment has a positive effect on the share of new products in sales, which subsequently enhances firm performance. Promoting innovation can have a substantial impact on performance. However, the magnitudes of these effects vary depending on the country, the estimation method, and the treatment of potential biases. In some countries, innovation generates stronger positive spillover effects on firm performance, while others are more effective at transforming R&D into innovation but face challenges in converting this innovation into productivity gains. This implies, on the one hand, that public policies must be context-specific, and on the other hand, that the choice of estimation method and the treatment of potential biases can significantly affect the robustness and validity of the results. |
| Keywords: | Innovation process, CDM model, Methodological comparison |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05536446 |
| By: | João Bento; Miguel Matos Torres; Hicham Nachit |
| Abstract: | We are exploring the interplay between inequality and foreign direct investment (FDI) and green technology innovation, an area that remains underexplored in international business (IB) research. This study examines how green technology innovation moderates the relationship between FDI, proxied by the performance and operational outcomes of majority-owned U.S. foreign affiliates, and income inequality, measured by the Gini coefficient of equivalised disposable income from the Luxembourg Income Study (LIS) database. We employ OECD patent data on green innovations to construct a panel dataset of 28 high-income OECD countries from 2000 to 2020. Using fixed-effects panel regressions and quantile models with bootstrapped inference, the results indicate that FDI has a significant inequality-reducing effect, and green innovation moderates this relationship, reducing income inequality. Firm investment, profitability, efficiency, and innovation interact with green innovation to reduce inequality, highlighting the role of MNEs in fostering equitable outcomes. These findings contribute to a better understanding of IB activity by unpacking the interdependent dynamics between firm performance and national competitiveness, offering policy insights to promote FDI and green innovation and mitigate inequality. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:lis:liswps:914 |
| By: | Patrick Cohendet; Patrick Llerena |
| Abstract: | This chapter aims to address the paradoxical portrayal of entrepreneurs in the Schumpeterian tradition. While entrepreneurs are portrayed as key players in economic development in Schumpeter's early works, they essentially disappear in neo-Schumpeterian literature, where their role is replaced by 'routines' as the primary operational component of organizations. This chapter re-establishes the entrepreneur as a producer of ideas, as well as an initiator and orchestrator of creative destruction, by reintegrating what we consider to be the primary “function of entrepreneurship”: generating and proposing new ideas and introducing novelty into the economic system. From this perspective, we argue that ideas, viewed primarily as processes, are the essence of the Schumpeterian entrepreneur’s role at the core of the 'entrepreneurial function', which orchestrates the ideation process by attracting, mobilizing and aligning allies around their vision. This entrepreneurial function takes different forms — from the 'heroic' entrepreneur of early capitalism, to a more 'depersonalized, routinised and automated' entity within large organizations, and, more recently, to an orchestrator within an innovative ecosystem. |
| Keywords: | Schumpeter, Creativity, Ideas |
| JEL: | B15 L26 L21 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2026-05 |
| By: | Cowgill, Bo (Columbia Business School); Hernandez-Lagos, Pablo (Sy Syms School of Business at Yeshiva University); Wright, Nataliya (Columbia Business School) |
| Abstract: | Screening human capital based on signals such as job applications or entrepreneurial pitches is crucial for organizations. Signals are often informative insofar as they require differential knowledge and effort to produce. Generative AI (GAI) complicates screening by lowering the cost of producing impressive signals. We model the informational effects of GAI, showing that applicants' access to GAI can increase---but also decrease---an evaluator's screening mistakes. This result depends on how GAI affects experts' signals compared to non-experts'. Using experiments in hiring and startup investing, we estimate that senders' access to GAI (ChatGPT) lowers screening accuracy by 4-9% for employers and startup investors. Consistent with our model, senders' access to GAI also improves screening accuracy in some settings---in our case, among senders from non-English-speaking countries. These results show that GAI can profoundly shape screening accuracy. |
| Keywords: | screening, Artificial Intelligence, entrepreneurship, human capital |
| JEL: | D82 M51 L26 D83 O33 M13 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18442 |
| By: | Carlotta Nani; Martin Alejandro Correa; Julio Raffo |
| Abstract: | This paper examines gender disparities in intellectual property (IP) awareness and participation, using the 2023 and 2025 waves of the WIPO Pulse Survey conducted among 58, 135 individuals across seventy-four countries. Our findings reveal that copyrights are the most recognized IP forms globally, while patents, trademarks and geographical indications remain the least familiar. At the individual level, women demonstrate lower knowledge of patents and trademarks, but greater knowledge of designs and copyrights compared to men, with these differences persisting after controlling for socioeconomic factors. These patterns are consistent with gendered specialization in education, professional and household spheres where women tend to cluster in creative industries while men dominate entrepreneurship and technical sectors. Notably, we observe a cohort effect: while we identify significant differences in knowledge between men and women for older cohorts, these disappear among younger cohorts. We do not observe comparable changes by level of education or occupation of respondents. Moreover, women exhibit more positive attitudes towards IP-protected products across categories. These findings highlight the need for targeted awareness campaigns and reveal that gendered patterns of IP knowledge may contribute to innovation gender gaps through educational pathways and professional specialization. |
| Keywords: | Intellectual property, Gender equality, Gender disparities, Surveys |
| JEL: | O34 O31 J16 C83 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:wip:wpaper:100 |
| By: | Juan S. Mora-Sanguinetti (BANQUE DE FRANCE AND BANCO DE ESPAÑA); Cristina Peñasco (BANQUE DE FRANCE AND UNIVERSITY OF CAMBRIDGE); Rok Spruk (UNIVERSITY OF LJUBLJANA) |
| Abstract: | This paper analyses the impact of “green regulations” - i.e. those aimed at mitigating the effects of climate change and environmental externalities - on innovation, using a novel regulatory database covering the period 008-2022 for Spain. The database identifies regulations at both the national and regional levels through textual analysis. Employing a panel data approach, we assess how different types of environmental regulations - particularly those related to renewable energy - affect firm-level innovation activities. Our findings indicate that national-level green regulations have a positive effect on innovation, whereas regional-level regulations show mixed or negligible impacts. Importantly, the interaction between national and regional regulations, measuring the simultaneous production of legal texts at both levels, can foster innovation but at a reduced pace with respect to the sole production of regulation at the national level. Given the results for regional-level regulation, our findings provide evidence in favour of the hypothesis that regulatory fragmentation due to unequal, overlapping, inconsistent or conflicting procedure across jurisdictions may diminish these benefits. |
| Keywords: | green regulation, innovation, Porter hypothesis, renewable energy, business |
| JEL: | K32 Q5 O44 O13 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2611 |
| By: | Seoyoung Kwon; Jongkwan Lee; Joan Monràs |
| Abstract: | High-skilled migration programs exist around the world in the hope that immigrants complement native workers, allow firms to grow, and boost innovation. We study the effect of one such program by exploiting the 2016 extension of the Optional Practical Training (OPT) program, which significantly prolonged the work authorization period for international STEM graduates. Using a synthetic difference-in-differences approach, we find that the policy successfully increased the local supply of high-skilled immigrants in exposed Commuting Zones. This local inflow stimulated firm creation and the demand for native high-skilled workers. The program might have also boosted innovation in certain sectors and startup investment, especially in Commuting Zones hosting top-ranked universities, where, overall, the effects tend to be larger. |
| Keywords: | Immigration, labor demand, firm dynamics, high-skilled migration |
| JEL: | F22 J31 J61 R11 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:upf:upfgen:1940 |
| By: | Océane Vernerey (LEDi - Laboratoire d'Economie de Dijon [Dijon] - UBE - Université Bourgogne Europe); Jimmy Lopez (UBE - Université Bourgogne Europe) |
| Abstract: | We investigate both the innovation and labor market effects of network sector regulation in a consistent framework. The estimated impact of regulation on the innovation process is based on the Community Innovation Survey and a system of equations modelling the firm's choice of R&D expenditure, propensity to innovate, and performance. We then examine the regulation and innovation impact on the labor market using the European Union Labor Force Survey. From a sample of 330, 604 firms and 8, 594, 055 individuals over the period 1998-2016 and five countries that have undergone important reforms (the Czech Republic, Hungary, Portugal, Slovakia and Spain), we find a strong negative effect of network regulation on firms' performance and individuals' employment probability. According to our estimates, the overall impact of the reforms implemented would be an average increase in the employment probability of 12.8%, almost entirely explained by an increase in firms' performance. |
| Keywords: | Employment, Innovation, Regulation |
| Date: | 2026–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05536453 |
| By: | Celine (Yue) Fei; Ulrich Hege; Xiao Jia |
| Abstract: | We study how IPO reforms transmit to venture capital (VC) markets using the introduction of China’s entrepreneurial boards, ChiNext and the registration-based STAR. We document that both boards attract younger, higher-growth firms with weaker fundamentals in levels, but post IPO growth persists for ChiNext firms while decelerating sharply for STAR firms. VC backing plays different roles across regimes: on ChiNext it aligns with valuation premia and long-run outperformance, whereas on STAR it mainly predicts higher first-day returns. To identify causal effects on VC allocation, we construct novel text-based regulatory exposure measures from listing documents using keyword matching and Sentence-BERT semantic similarity, and show that VC financing reallocates toward firms more aligned with “supported” activities. |
| Keywords: | IPO Reforms; IPO Listing Requirements; Venture Capital; Business Description; BERT; China |
| JEL: | G24 G28 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_736 |
| By: | Chih-Cheng Lin (Shih Chien University (Taiwan, Taipei) - USC); Hsiu-Yu Hung (NTNU - National Taiwan Normal University); Ajay Kumar (EM - EMLyon Business School); V. Kumar (Brock University [Canada]); Kim Hua Tan (UON - University of Nottingham, UK) |
| Abstract: | Understanding player co-creation dynamics on gaming platforms is crucial for fostering engagement and driving innovation in digital marketing. This study investigates these dynamics on the Roblox platform, proposing an integrated framework that connects platform capabilities with player-driven orchestration actions and the pursuit of diverse goals − a model applicable to various digital marketing contexts. We identify three types of gaming platform affordances and three types of developers' orchestration actions, ultimately shaping co-creation activities in terms of creative and social engagement. Using web crawling and text mining methodologies, we analyze a large, longitudinal dataset from Roblox developers engaged in co-creation projects. We employ three observable metrics to quantify co-creation activities, applying different perspectives including equality-based, effort-based weighted, and specialized measures of creative and social engagement. Our findings confirm the direct effects of platform affordances and orchestration actions on co-creation activities, with post-hoc analyses revealing goal fulfillment as an important antecedent mechanism. To validate our results, we conducted a two-stage survey with 206 experienced Roblox developers, providing additional robustness to our empirical findings. This research advances our understanding of digital co-creation and offers practical implications for designing more engaging and innovative gaming platforms. As gaming and digital marketing converge, particularly in the evolving metaverse landscape, this study underscores the importance of leveraging co-creation dynamics to enhance user engagement and drive platform growth. |
| Keywords: | Roblox, Platform affordances, Goal fulfillment, Game developers, Creation, Co-creation |
| Date: | 2024–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05531910 |
| By: | Kivimaa, Paula; Janssen, Matthijs; Edler, Jakob |
| Abstract: | Increasing rise of military and non-military security issues, globally, influences innovation policies and interacts with policy aspirations to address societal challenges, notably around sustainability transitions. Drawing from research on security, geopolitics, and transformative and mission-oriented innovation policy, we map out what an increased focus on security means for challenge-led innovation policymaking. The analysis is structured around five policy imperatives: directionality, experimentation, inclusivity, regime destabilisation, and policy mix adaptation. Some clear synergies exist between sustainability and security, e.g., directing innovation support towards technologies that reduce supply chain dependencies, or dual-use technologies that improve resource efficiency and defence capability. Tensions also exist, e.g. security-risks of smart 'clean' technologies, or making innovation processes more closed for security reasons. Three broad policy strategies to govern the interrelations between security and sustainability objectives in innovation policy are proposed. The contribution raises awareness and provides nuance regarding ways the rising security concerns influence challenge-led innovation policy. |
| Keywords: | sustainability transistions, security, innovation policy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fisidp:338081 |
| By: | Nuriye Melisa Bilgin; Ester Faia; Gianmarco Ottaviano |
| Abstract: | We examine how upstream firms' technology adoption affects the performance and adoption decisions of downstream partners. Using business-to-business data with administrative records on advanced technology adoption, we find gains in productivity, performance, adoption probabilities of firms connected to the adopter, relatively to those that are not. Identification combines staggered event studies, balanced panels of pre-existing relationships, and recentering methods to address expected exposure within the network. Gains vary along firm size, centrality, technology quality, but do not systematically increase with input exposure, suggesting that knowledge spillovers may induce organizational adjustments. Adoption by competitors is associated with short-run negative effects. |
| Keywords: | technology diffusion, adoption and propagation, firm networks, firm productivity, imported inputs |
| Date: | 2026–03–11 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2157 |
| By: | J. Anderson, Stephen; Grover, Arti; Kankanhalli, Shreya; Ramani, Nandini |
| Abstract: | Business upgrading programs in developing economies often generate substantial gains for male entrepreneurs but limited average impacts for women, raising concerns about both efficiency and equity. This study develops a Program Readiness Scorecard (PRS)—a transparent, scalable tool based on 10 observable factors capturing both entrepreneurial resources and capabilities—to identify those most likely to benefit from such programs. Using pooled experimental data from firms in Uganda, South Africa, and Mexico, this paper shows that without targeting, firms led by men experience large and statistically significant gains, while those led by women have near zero average returns. Targeting that screens out entrepreneurs with the lowest scores on the PRS irrespective of gender improves women’s outcomes but leaves a significant gap. Applying a higher PRS threshold—specifically, restricting eligibility to women in the top quartile of the PRS distribution—closes the gap entirely, as women with high scores achieve returns that are statistically indistinguishable from men’s. These results are robust to multiple sensitivity checks. The findings have two broad policy implications. First, targeting based on the PRS can strengthen program outcomes for women-led firms while also identifying the cohort in need of remedial support prior to joining high-value initiatives. Second, beyond gender-focused programs, the PRS can be applied in a wider range of settings where scarce program resources must be directed toward enterprises with the greatest potential for sustained growth. |
| Date: | 2026–03–02 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11327 |
| By: | Flora Bellone (Université Côte d'Azur, CNRS, GREDEG, France; OFCE, Sciences Po, France); Charlie Joyez (Université Côte d'Azur, CNRS, GREDEG, France); Xavier Poulet-Goffard (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | The OECD's Base Erosion and Profit Shifting (BEPS) initiative, adopted in 2015, introduced country-by-country reporting (CbCR) obligations for multinational groups with consolidated turnover above €750 million. This paper examines whether the reform generated unintended behavioral responses among smaller firms below the reporting threshold. Using firm-level data on French multinationals from OFATS, FARE, and DIANE (2007, 2009, 2014–2022), we estimate difference-in-differences models in a linear probability framework with firm and year fixed effects. We focus on restructuring at the extensive margin, distinguishing entry into and exit from tax-haven jurisdictions. Firms below the threshold significantly increase their probability of opening tax-haven affiliates after 2016, the year CbCR started to be enforced in Europe, while larger firms become more likely to exit. The results are robust to alternative tax-haven definitions and to excluding firms near the cutoff. Heterogeneity analyses show that the post-reform entry in tax havens is concentrated among financially structured small MNEs. Overall, the findings suggest that targeted transparency reforms can reallocate tax-haven activity across the firm size distribution rather than uniformly reduce it. |
| Keywords: | tax avoidance; multinational enterprises; BEPS; country-by-country reporting; tax havens; firm heterogeneity |
| JEL: | F23 H26 H32 K34 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-10 |
| By: | Marouane El Aliti (National School of Commerce and Management, Ibn Tofail University, Kénitra, Morocco); Omar Taouab (National School of Commerce and Management, Ibn Tofail University, Kénitra, Morocco) |
| Abstract: | Management control plays an ambivalent role in industrial innovation, acting both as a potential obstacle and as a strategic lever for performance. Given the growing importance of innovation for the competitiveness of industrial firms, this research aims to analyze how management control systems can support, guide, and steer innovation processes in an environment characterized by uncertainty and complexity. Based on a narrative analysis of recent academic literature, the study highlights a gradual evolution of control tools, moving from traditional budgetary control to more interactive, agile, and strategically oriented forms that foster organizational ambidexterity. The findings show that steering innovation relies on a combination of formal and informal mechanisms, facilitating support, coordination, and strategic analysis of innovative initiatives. Furthermore, this research demonstrates that management control, when designed as a flexible and interactive system, constitutes a key lever for industrial innovation rather than a mere constraint. However, tensions between rigor and flexibility, as well as cultural, organizational, and digital dimensions, remain major challenges. These observations underscore the need to develop integrated frameworks and to deepen empirical research in order to better understand the role of management control in steering innovation. |
| Abstract: | Le contrôle de gestion joue un rôle ambivalent dans l'innovation industrielle, à la fois comme obstacle potentiel et comme levier stratégique de performance. Face à l'importance croissante de l'innovation pour la compétitivité des entreprises industrielles, cette recherche vise à analyser la manière dont les dispositifs de contrôle de gestion peuvent soutenir, orienter et piloter les processus d'innovation dans un environnement marqué par l'incertitude et la complexité. Sur la base d'une analyse narrative de la littérature académique récente, l'étude met en évidence une évolution progressive des outils de contrôle, passant d'un contrôle budgétaire traditionnel à des formes plus interactives, agiles et stratégiquement orientées, favorisant l'ambidextrie organisationnelle. Les résultats montrent que le pilotage de l'innovation repose sur une combinaison de mécanismes formels et informels, facilitant l'accompagnement, la coordination et l'analyse stratégique des initiatives innovantes. Par ailleurs, cette recherche montre que le contrôle de gestion, lorsqu'il est conçu comme un système flexible et interactif, constitue un levier essentiel de l'innovation industrielle plutôt qu'un simple mécanisme de contrainte. Toutefois, les tensions entre rigueur et flexibilité, ainsi que les dimensions culturelles, organisationnelles et digitales, demeurent des défis majeurs. Ces constats soulignent la nécessité de développer des cadres intégrés et d'approfondir les recherches empiriques afin de mieux comprendre le rôle du contrôle de gestion dans le pilotage de l'innovation. |
| Keywords: | Strategic management, Organizational ambidexterity, Organizational performance, Industrial innovation, Management control, Ambidextrie organisationnelle, Pilotage stratégique, Performance organisationnelle, Innovation industrielle, Contrôle de gestion |
| Date: | 2026–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05470592 |
| By: | Luca Macedoni; Ariel Weinberger |
| Abstract: | Do firms uniformly oppose regulations that increase production costs, or might industry leaders strategically support stricter standards as a competitive tool? We identify a specific mechanism through which large firms strategically support regulations to enhance their competitive position. Extending the Melitz-Chaney model of firm heterogeneity to incorporate government regulations and lobbying following Grossman-Helpman, we derive conditions under which regulations disproportionately burden smaller competitors while benefiting larger survivors through reduced competition. The model predicts that firm size is positively correlated with support for stringent regulations, but that larger sunk investments push firms to oppose such policies. To test these predictions, we develop a text-as-data approach using large language models to classify firm regulatory preferences from lobbying disclosures—a measurement challenge that has limited prior systematic analysis. Applying guided machine learning to over 20, 000 U.S. lobbying reports, we confirm that larger firms are significantly more likely to support stricter regulations, especially in concentrated industries. Capital-intensive firms with high leverage and less redeployable assets tend to oppose regulations, suggesting that operational flexibility is crucial for extracting strategic benefits from regulatory changes. |
| Keywords: | strategic lobbying, product standard regulations, firm heterogeneity, machine learning |
| JEL: | F12 D22 D72 L11 L51 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12536 |
| By: | Rodrigo Cuenca De Armas (Department of Economics, Universitat Jaume I, Castellón, Spain); Maria Teresa Balaguer-Coll (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | This study explores the risk of financial development traps in European regions by analysing the performance of the financial sector in terms of productivity and its relationship with GDP per capita. Using data for 226 NUTS2 regions over the period 2000–2021, we construct two original indicators adapted from Diemer et al. (2022) to a sectoral framework, capturing respectively the cyclical and structural dimensions of decoupling between financial sector dynamics and regional economic performance. The analysis reveals that a non-negligible share of European regions show signs of entrapment, with considerable heterogeneity both between and within Eastern and Western Europe. Results also point to a reduction in the share of trapped regions between the crisis period (2008–2015) and the subsequent recovery phase (2016–2021), alongside a notable inversion in the relative exposure of Eastern and Western European regions. Our findings highlight the importance of assessing the functional orientation of the financial sector (rather than its mere size or depth) and suggest that institutional and sectoral factors play a critical role in shaping regional financial resilience beyond geographic location. |
| Keywords: | financial development, development traps, regional inequalities, productivity, employment, convergence |
| JEL: | R11 R58 O16 O18 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2026/06 |
| By: | J. Jason Lu Jin A; X. Xiaopeng Lai; M. Dong Meitong; L. Wang (Audencia Business School); Y. Yaqin Zheng |
| Abstract: | While online transactions through live streaming are rising rapidly for international exchanges, we understand little about why foreign firms vary in their use of live streaming on the digital platform when operating in host markets. Drawing on institutional theory, our study investigates how institutional distance affects foreign firms' live streaming use as a digital operation strategy in the host market. Using a unique longitudinal dataset consisting of 3, 158 product-month observations from a Chinese digital platform, our findings reveal that while legal distance has a positive effect on live streaming use, digital distance has a negative impact. Moreover, firm age and platform experience significantly moderate the roles of institutional distance. These findings provide novel insights into platform-based operation strategies in international markets. |
| Keywords: | Platform experience, Digital distance, Legal distance, Live streaming use, Institutional distance |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05460935 |
| By: | Danny Hermawan (Bank Indonesia); Cicilia Anggadewi Harun (Bank Indonesia); Citra Amanda (Bank Indonesia); Elpiwin Adela (Bank Indonesia); Marissa Novita (Bank Indonesia); Ananda Surya Dahana Dewantara (Bank Indonesia); Ilham Farizi Indrayadi (Bank Indonesia); Fariz Ahmad Sultansyah (Bank Indonesia); Matias Judatama (Bank Indonesia) |
| Abstract: | This study investigates the structural challenges hindering Indonesia’s transition toward an innovation-driven, high-income economy, focusing on the interconnected roles of human capital, productivity, and technological capability. Using a mixed-method approach that combines 2SLS econometric modelling with extensive qualitative evidence from national focus group discussions across universities, government institutions, and industry stakeholders, the study finds that weaknesses in education quality, fragmented talent pipelines, and persistent gaps in university-industry collaboration significantly suppress Indonesia’s innovation output. The quantitative results demonstrate that human capital exerts a strong causal influence on productivity and income, yet its impact is constrained by weak R&D ecosystems and low patent generation capacity. Qualitative insights further reveal systemic misalignment across education policy, labour-market demand, and research commercialization, producing a “human capital paradox†in which increased educational attainment does not translate into proportional economic gains. These findings underscore the urgent need for an integrated national strategy that simultaneously strengthens foundational education, expands R&D capacity, and builds cohesive innovation ecosystems to accelerate Indonesia’s escape from the middle-income trap. |
| Keywords: | Emerging Economies, Human Capital, Innovation Ecosystem, MiddleIncome Trap, Productivity |
| JEL: | O15 O31 O47 O53 I2 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp062025 |
| By: | Etheridge, Ben |
| Abstract: | This paper investigates Artiï¬ cial Intelligence (AI) adoption and its labour market conse-quences among UK small and medium enterprises, using novel data from the British Cham-bers of Commerce Business Outlook Survey, collected in early 2026. AI adoption is increas-ingly widespread, with over half of responding ï¬ rms currently using AI, up from around a third in 2025. Most users rely on generic tools such as ChatGPT or Copilot, but around one in ten ï¬ rms have adopted bespoke AI implementations. We ï¬ nd that bespoke adoption in par-ticular is associated with a coherent bundle of workforce adjustment. Approximately one-ï¬ fth of bespoke users report stafï¬ ng reductions attributable to AI, and bespoke adopters are roughly three times more likely to have restructured job roles. Restructuring is in turn strongly associated with headcount reductions and shifts in skills requirements. Surprisingly, ï¬ rms investing in AI-related training are signiï¬ cantly more likely to anticipate headcount reductions than those not investing in training. We also ï¬ nd that current AI users are substan-tially more optimistic about future productivity gains than non-users. Our ï¬ ndings provide a novel ï¬ rm-level picture of how SMEs are reorganising work, adjusting workforces, and in-vesting in skills in response to AI. |
| Date: | 2026–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:ese:iserwp:2026-01 |
| By: | M. Asghar, M; J. Shen (Audencia Business School); N. Gull, N; J. Khan, J; Z. D. Xiong, Z.D |
| Abstract: | Regardless of the role of service-oriented leadership in co-creating green value for customers in the hospitality industry, this study aims to investigate how service-oriented leadership influences employees' service performance through green self-efficacy and shared vision, particularly in the hospitality sector. This study explores the multilevel moderating role of green shared vision in the relationship between green self-efficacy and employee service performance. We collected data from 545 hotel employees using time-lagged and multilevel structural equation modeling. The study results indicate that service-oriented leadership has a significant influence on employee service performance, which is mediated by green self-efficacy and a shared vision. Furthermore, the findings suggest that a shared green vision moderates the relationship between green self-efficacy and employee service performance, thereby enhancing employee service performance. The study provides theoretical insights, practical implications, and valuable recommendations for managers in the hospitality sector. |
| Keywords: | Hotel sector, Service performance, Green self-efficacy, Green shared vision, Service-oriented leadership |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05519797 |
| By: | Ufuk Akcigit; Craig A. Chikis; Emin Dinlersoz; Nathan Goldschlag |
| Abstract: | We construct a novel dataset linking academic publication records to U.S. Census employer–employee data to track 42, 000 AI researchers over two decades. We document systematic changes in the allocation of AI talent. Industry increasingly attracts younger and foreign-born researchers, while gender representation improves more in academia. The top 1% of publishing industry scientists now earn $1.5 million more annually than comparable academics, a fivefold increase since 2001. Rising wage premia coincide with greater sorting into large incumbent firms. Researchers who move to industry publish less but patent more, consistent with a shift from open science toward proprietary innovation. |
| JEL: | I23 J45 L33 O31 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34964 |
| By: | Gómez, Laura; Joachín, Arturo; Támola, Alejandro; Fernández Díez, María Carmen |
| Abstract: | Informational credit rationing is a disequilibrium phenomenon in credit markets, in which price mechanisms fail to allocate credit efficiently due to informational frictions. It is commonly argued that innovative firms are particularly susceptible to credit rationing because innovation may exacerbate information asymmetries between firms and lenders. However, this argument often overlooks the improvements in internal information and management required to undertake such activities, which can influence the net change in information available to lenders. These improvements can enhance transparency and reduce agency problems, potentially offsetting the initial informational disadvantages. Using data from the World Bank Enterprise Surveys for medium and large formal firms and proxy indicators such as product differentiation and process improvement, this study estimates the average effect of innovation-related activities on access to credit. The results reveal statistically significant reductions in the probability of experiencing credit rationing, with marginal effects ranging from 11.8 to 19.7 percentage points. These findings are robust across model specifications and suggest that product differentiation, while initially increasing informational frictions, ultimately improves firms credit profiles. |
| Keywords: | credit rationing;credit markets;innovation;productdifferentiation;agency problems |
| JEL: | D82 L25 Q31 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14533 |
| By: | Cruz Romero, Roberto (Deutches Zentrum für Hochschul- und Wissenschaftsforschung (DZHW)); Stahlschmidt, Stephan |
| Abstract: | This study reconstructs and characterises the science-policy nexus in the field of artificial intelligence research in Germany, examining the alignment between normative policy goals and empirical research outcomes. Adopting a narrative policy framework, the research investigates transition dynamics across policy, scholarly, and innovation levels, tracing the interconnectedness in stages of patents, papers, and publicly funded projects. The research employs a two-pronged empirical approach: 1) identifying German contributions to AI research through patent citations and bibliometric data, and 2) linking these outputs to the policy instances that funded and enabled them. This methodology reveals the complex pathways through which policy intentions translate into research outcomes, highlighting the mostly indirect nature of this relationship. Key findings emphasise significant challenges in data quality and availability, particularly in linking research outputs to higher-level policy dimensions. While the study successfully identifies German-affiliated papers through patent and bibliometric datasets, it uncovers fundamental disconnections between stated policy objectives and actual research trajectories. These dimensions are compounded by administrative bottlenecks, asynchronous implementation settings, and entangled funding periods. The study concludes that AI development is heavily influenced by geopolitical and strategic decisions extending beyond academia, and that academic research into AI is part of a larger narrative of policy and political design. The study offers a framework for assessing the nuances of science-policy pathways while acknowledging the limitations of fully characterising this nexus. The systematisation presented serves as a foundation for future research, emphasising the need for comprehensive and coherent data sources to evaluate the phases and connections within scholarly and policy narratives. |
| Date: | 2026–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:mtz4d_v1 |
| By: | Phoebe Koundouri; Maria Chourdaki; Konstantinos Dellis; Kit England |
| Abstract: | Europe, as the fastest warming continent, faces elevated climate risks coupled with a climate adaptation finance gap, defined as the difference between the costs of achieving an adaptation target and the amount of finance available for adaptation (UNEP, 2024). The EU needs to invest almost EUR 70 billion per year in climate adaptation up to 2050 (Monteleone et al., 2026). However, current funding relies heavily on public sources, highlighting the urgent need for private sector involvement (CPI, 2023). Regions and cities in the EU face barriers in their effort to muster financial resources to translate adaptation strategies into tangible projects to promote climate and socioeconomic resilience. The Adaptation Investment Cycle (AIC), developed in the HEU Pathways2Resilience project, is a six-step process designed to help regions overcome barriers to financing climate adaptation by offering a step-by-step approach that builds local capacity and bridges gaps between planning and implementation. This paper maps the steps of the AIC to common adaptation finance barriers -economic, financial, awareness, behavioral, and institutional-, highlights their impact on raising and leveraging capital to strengthen regional resilience and assesses innovative financial sources and instruments tailored to regional needs. Finally, we emphasize concise frameworks for sub-national adaptation finance and contribute to the literature on regional resilience. |
| Keywords: | climate finance, climate adaptation, adaptation finance barriers, Adaptation Investment Cycle (AIC), public sector, investors |
| Date: | 2026–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2608 |
| By: | Christian Gschwendt; Claudio Schilter |
| Abstract: | Generative AI (GenAI) adoption is spreading rapidly and reshaping work, yet its implications for firms' training decisions remain largely unexplored. This paper examines how automation in the post-GenAI era affects firms' entry-level training positions using a vignette experiment with recruiters at over 2, 800 Swiss firms, covering more than 100 distinct occupations. Firms plan to reduce training positions in response to automation prospects, with larger reductions the greater the expected automated task share and the earlier the expected implementation. Effects are markedly stronger in routine-intensive and AI-exposed occupations, as well as among large firms. Our experiment allows us to disentangle an "erosion of the training pipeline, " where firms reduce training even though demand for trained specialists remains, from an overall decline in occupational labor demand. We find that pipeline erosion accounts for less than one third of the average reduction in training, but substantially more when automation is particularly intensive - measured by a high share of tasks being automated - and in routine-intensive and AI-exposed occupations. Overall, the results suggest that GenAI adoption is likely to reallocate firms' human capital investment with potential downstream implications for early career formation, and to reinforce labor market de-routinization trends. |
| Keywords: | Automation, firm training, technological change, generative AI, artificial intelligence, entry-level employment |
| JEL: | J24 M53 O33 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:iso:educat:0252 |
| By: | Evgeny Kagan; Kyle Hyndman; Anyan Qi |
| Abstract: | To grow their businesses, entrepreneurs often rely on equity funding. This paper focuses on two elements of entrepreneur-investor equity negotiations: the number of potential investors and the contractual complexity surrounding investor protection. Our approach involves a theoretical model and a series of laboratory experiments that analyze the effects of different bargaining conditions and contractual terms on the equity (ownership) split between entrepreneurs and their investors. We show that the conventional wisdom that entrepreneurs should seek to negotiate with as many investors as possible, while consistent with the theoretical model, is not true in the data. Indeed, negotiating with multiple investors reduces the entrepreneur's profits under most conditions. We also show that investor downside protections may disadvantage early-stage startups, but can be beneficial to later-stage startups. A refinement of belief modeling in multi-party bargaining, as well as a stylized risk allocation framework, reconcile these results with theory predictions. Our findings provide a decision framework for entrepreneurs to optimize their approach to investors and negotiate favorable contractual terms. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.00706 |
| By: | Lydia Papadaki; Ebun Akinsete (ICRE8); Alice Guittard (ICRE8); Phoebe Koundouri |
| Abstract: | A comprehensive, innovation-driven approach that incorporates policy frameworks, stakeholder collaboration, and adaptive governance is necessary for the sustainable development of the blue economy (BE). This chapter investigates the potential of systems innovation to resolve critical issues in the maritime sector, such as sustainable fisheries, offshore renewable energy, and marine tourism. It emphasises the significance of cross-sector synergies, data-driven decision-making, and multi-stakeholder engagement in the promotion of long-term sustainability. The chapter also identifies obstacles, including financial constraints, policy misalignment, and data fragmentation, that impede the widespread implementation of sustainable solutions. The chapter offers insights into strategies for accelerating the transition to a sustainable BE and enhancing resilience by examining successful case studies and innovation ecosystems. Key future directions include developing digital platforms for real-time data exchange, improving regulatory coherence, and expanding innovation hubs that bring together policymakers, businesses, researchers, and local communities. In conclusion, the chapter promotes a comprehensive transformation model that emphasises stakeholder-driven governance and systemic innovation as critical components of the blue economy's future. |
| Keywords: | Blue Economy, Systems Innovation, Participatory workshops, Stakeholder Engagement, Living Lab |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2611 |
| By: | Phoebe Koundouri; Ioanna Grypari; Yannis Ioannidis; Lydia Papadaki; Charalampos Stavridis; Nicolaos Theodossiou; Haris Papageorgiou |
| Abstract: | SDSN Greece, the Black Sea and the Mediterranean, supported by SDSN Europe, have established the Sustainable Euro-Asian Seas Initiative (SEAs) to accelerate science-driven blue growth and SDG implementation in the Euro-Asian Seas and beyond. Two essential components to provide knowledge, legal certainty and security in the blue economy are the following: ensuring marine knowledge to improve access to information about the sea and enforcing maritime spatial planning to ensure efficient, sustainable, job-based and inclusive management of activities at sea. IntelComp (H2020 project) seeks to build an innovative Cloud Platform that will offer AI-based services to public administrators and policymakers across Europe for data- and evidence-driven STI policy design and implementation. One of IntelComp's focus areas is the climate change challenge, targeting the Blue Growth perspective. Within the project's framework, Living Labs (LLs) will take the role of implementing a co-creation approach and engaging all relevant stakeholders to explore, experiment with and evaluate STI policies at all stages. |
| Keywords: | Blue growth, blue economy, sustainable seas, SEAs initiative, IntelComp, STI policy, living labs |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2610 |