|
on Small Business Management |
|
Issue of 2026–06–15
eleven papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Ouakil, Hicham; Liouaeddine, Mariem; Hosni, Mohamed; Saadi, Ayoub |
| Abstract: | The allocation and effectiveness of public subsidies for R&D and innovation are crucial issues for firms and policymakers. This study has two main objectives: first, to identify the determinants of access to public funding for R&D and innovation within firms; second, to quantitatively assess the causal impact of this support on firms’ R&D and innovation activities. We used data from the 2019 World Bank survey of 1, 096 Moroccan firms (www. enterprise surveys and applied two econometric approaches. For the first objective, we resorted to logistic regression based on a probit model. The results show that competitive firms, those investing in ICT, and those that employ graduates are more likely to receive public financial support. For the second objective, we used Propensity Score Matching (PSM) to control for selection bias and endogeneity. The results show that government financial support significantly favors the innovation inputs and outputs of Moroccan firms. |
| Keywords: | Public Support, Firm R&D and Innovation, Impact Assessment, Probit Model, Propensity Score Matching (PSM). |
| JEL: | D2 D22 O3 |
| Date: | 2026–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128707 |
| By: | Moiz, Abdul; Siddiqui, Danish Ahmed |
| Abstract: | The economic growth of developing economies depends heavily on Small and Medium Enterprises (SMEs) since they generate significant GDP and employment numbers in Pakistan and other emerging markets. The sustainability of these businesses faces frequent obstacles because they encounter restricted financial resources and poor financial expertise alongside cautious managerial decision-making. This study explored how financial literacy affects SME sustainability. We proposed that financial literacy components i.e. budgeting, investment analysis, and risk management, improve access to finance in turn leading to SME sustainability. We also contend that financial risk attitude moderates the relationship between financial literacy components and sustainability in a way that a higher risk attitude would lead to a more pronounced effect. Empirical validity was established by conducting a survey using a close-ended questionnaire. A structured questionnaire was used to gather data from 309 SME owners financial managers and operational managers who resided in five major Pakistani cities. The analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to process the data. The results show that budgeting (β = 0.165, p = 0.010) and risk management (β = 0.424, p |
| Keywords: | SME Sustainability, Financial Literacy, Access to Finance, Financial Risk Attitude, Pakistan SMEs, PLS-SEM Analysis |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341018 |
| By: | Johann Kortsch; Stefan Raff-Heinen; David Bendig; Martin Murmann; Colin Schulz; Fiona Murray |
| Abstract: | The term “deep-tech innovation” has attracted growing attention in research, policy, and practice, but it is applied inconsistently and lacks an agreed-upon definition. This limits cumulative knowledge building and blurs how deep-tech innovation relates to adjacent concepts. We address this gap by developing a framework that treats deep-tech innovation as a distinct object of inquiry. Using a multi-method design that combines a systematic, integrative, concept-centric literature review and semi-structured interviews with deep-tech founders, we identify twelve defining attributes structured across three levels: invention, venture, and ecosystem. At the invention level (the conceptual core), we specify six attributes: three foundational attributes that capture the scientific and technological basis of the invention, and three attributes that describe its characteristic exposure profile. The remaining six attributes capture recurring implications at the venture level (staged financing strategies, dual scientific and commercial maturation, and the multidisciplinary broadening of teams) and the ecosystem level (multi-actor interactions, specialized incubation support, and industrial de-risking and scaling partnerships). We use this framework to delineate the boundaries of deep-tech innovation, distinguish it from adjacent concepts, and propose an agenda for future research. |
| JEL: | O33 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35255 |
| By: | Emanuele Colonnelli; Marcio Cruz; Mariana Pereira-Lopez; Tommaso Porzio; Chun Zhao |
| Abstract: | We build new data on startups in Africa to study which types of financing these firms demand, how financing is allocated in practice, and the implications for startup creation and the composition of the sector. We combine a continent-wide founder survey, an incentive-compatible experiment estimating financing preferences, and venture capital (VC) deal records matched to founders’ education and work histories. We find that startups strongly prefer equity over debt, but equity is supplied mainly by foreign investors and flows disproportionately to foreign-connected founders. About 80 percent of VC deals involve a foreign investor, and more than 60 percent of funded founders have studied or worked outside Africa. A simple accounting framework shows that this foreignness reflects three main forces: scarce local equity capital, a thin pool of local entrepreneurs able to access startup finance, and frictions limiting local entrepreneurs’ access to foreign investors. Together, these forces reduce startup creation and tilt the sector toward foreign investors and foreign-connected founders. |
| JEL: | F0 G0 O10 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35261 |
| By: | Nauman, Khalida; Siddiqui, Danish Ahmed |
| Abstract: | This study investigates the influence of green human resource management (GHRM) practices on employees' in-role and extra-role green behaviors in small and medium-sized enterprises (SMEs) in Karachi, Pakistan. The research examines the direct effects of Green Recruitment and Selection (GRS), Green Training and Development (GTD), and Green Compensation and Benefits (GCB), the mediating role of Green Organizational Culture (GOC), and the moderating effects of Top Management Commitment (TMC), Transformational Leadership (TL), and Employee Green Passion (EGP). Data were collected from 190 employees using purposive sampling and analyzed with structural equation modeling via SmartPLS. Results reveal that GTD significantly enhances in-role green performance, while GRS and GCB have no significant direct effects on employee green behaviors. Mediation analysis shows that GOC does not significantly transmit the effects of GHRM practices. Moderation analysis indicates that TMC strengthens the relationship between GRS and extra-role green behavior, whereas TL positively moderates the GTD-extra-role green behavior link and negatively moderates GRS effects. EGP did not exhibit significant moderating effects. The findings highlight the critical role of training and leadership in promoting sustainable employee behaviors in SMEs, while organizational culture and intrinsic motivation have limited influence in this context. |
| Keywords: | Green Human Resource Management, Employee Green Behavior, Organizational Culture, Transformational Leadership, Top Management Commitment, SMEs, Pakistan |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341065 |
| By: | Fabbri Emanuele (European Commission - JRC); Spalazzi Annalisa |
| Abstract: | This technical report offers a preliminary exploration of how the design and implementation of Smart Specialisation Strategies (S3) might contribute to rural development in the Western Balkans. Although in the Western Balkans rural areas account for nearly 50% of the region's population they face critical challenges, such as economic stagnation, depopulation, and infrastructure deficits. As a key pillar for EU accession, S3 represents a place-based policy framework for boosting innovation ecosystems and European Research Area (ERA) integration. Here, S3 is also examined as a strategic framework to potentially mitigate the main challenges in rural areas by discovering untapped potential and promoting policy integration. As a result, this report assesses the degree to which S3 frameworks are tailored to rural needs and sheds a light on potential impact on regional development, specifically within the agriculture, tourism, and energy sectors. Based on a mixed-method approach of stakeholder interviews and document analysis, this research investigates the integration of rural areas within Western Balkan S3 strategies at both the national and macro-regional levels. The study evaluates the gaps and opportunities in policy design and implementation, specifically addressing the depth of rural integration and the identification of sectors capable of driving innovation and competitiveness. Furthermore, it examines how S3 facilitates territorial cohesion between urban and rural dimensions and fosters cross-border collaboration across the Western Balkan economies. Findings aim to provide actionable policy recommendations to enhance the effectiveness of S3 strategies in fostering development and innovation for rural development, through a place-based approach on the Western Balkans economies. By identifying opportunities, sectoral synergies, and areas requiring further attention, this report contributes to the broader goal of integrating rural development more effectively into national and regional innovation policies in the region, particularly with reference to the Green Agenda for the Western Balkans and the Innovation Agenda. |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc145560 |
| By: | Jean-Éric Pelet (LEFMI - Laboratoire d’Économie, Finance, Management et Innovation - UR UPJV 4286 - UPJV - Université de Picardie Jules Verne); Fauvy Stéphane (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut National de l'Horticulture et du Paysage); Papadopoulou Panagiota (DI NKUA - Department of Informatics and Telecomunications [Kapodistrian Univ] - NKUA - National and Kapodistrian University of Athens); Nic S. Terblanche (SU - Stellenbosch University) |
| Abstract: | Purpose: Despite its long-established heritage, the Champagne industry appears to increasingly embrace novel technologies enabling its digital transformation. This paper aims to study the adoption potential of artificial intelligence (AI) and digital innovations in the Champagne sector, with lessons learnt from a real case, highlighting how traditional business models can be reinvented through innovative tools and practices while preserving heritage.•Design/methodology/approach: The study examines the digital evolution of EPC, an innovative Champagne startup, using an exploratory qualitative approach based on a semi-structured interview with its director, complemented by secondary sources. Findings are interpreted through the Resource-Based View (RBV) to analyze how EPC leverages unique technological capabilities and contextual knowledge to achieve a sustainable competitive advantage.•Findings: The analysis highlights the role of EPC's AI-powered system, DAVE, and digital strategies in optimizing the value chain, enhancing customer relationships, enabling personalized marketing, promoting partner winegrowers, and supporting sustainable operations. Digital tools contribute to operational efficiency, market resilience, and preservation of the cultural and symbolic value of Champagne.•Practical implications: The study provides insights for heritage-driven industries seeking to adopt digital innovations without compromising authenticity. It identifies key enablers and barriers, and offers directions for future research, including comparative studies across regions, longitudinal adoption analyses, and investigations of consumer perceptions of authenticity in digitally mediated experiences. |
| Abstract: | Objectif : Malgré son héritage de longue date, l'industrie champenoise semble de plus en plus adopter les nouvelles technologies permettant sa transformation numérique. Cet article vise à étudier le potentiel d'adoption de l'intelligence artificielle (IA) et des innovations numériques dans le secteur champenois, avec les enseignements tirés d'un cas réel, mettant en évidence comment les modèles économiques traditionnels peuvent être réinventés grâce à des outils et pratiques innovants tout en préservant le patrimoine.•Conception/méthodologie/approche : L'étude examine l'évolution numérique d'EPC, une startup champenoise innovante, en utilisant une approche qualitative exploratoire basée sur un entretien semi-directif avec son directeur, complété par des sources secondaires. Les résultats sont interprétés via la vue basée sur les ressources (RBV) pour analyser comment EPC exploite des capacités technologiques uniques et des connaissances contextuelles pour obtenir un avantage concurrentiel durable.•Résultats : L'analyse met en évidence le rôle du système basé sur l'IA d'EPC, DAVE, et des stratégies numériques dans l'optimisation de la chaîne de valeur, l'amélioration des relations clients, la mise en place d'un marketing personnalisé, la promotion des vignerons partenaires et le soutien d'opérations durables. Les outils numériques contribuent à l'efficacité opérationnelle, à la résilience du marché et à la préservation de la valeur culturelle et symbolique du Champagne.•Implications pratiques : l'étude fournit des informations aux industries axées sur le patrimoine qui cherchent à adopter des innovations numériques sans compromettre l'authenticité. Il identifie les principaux catalyseurs et obstacles et propose des orientations pour de futures recherches, notamment des études comparatives entre régions, des analyses longitudinales d'adoption et des enquêtes sur les perceptions des consommateurs quant à l'authenticité des expériences numériques. |
| Keywords: | Innovation, Resource-Based View, Digital transformation, Artificial intelligence, Champagne |
| Date: | 2026–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05627472 |
| By: | Ursel Baumann; Zoë B. Cullen; Ester Faia; Annalisa Ferrando; Ricardo Perez-Truglia; Judit Rariga |
| Abstract: | How well does innovation diffuse across geographic boundaries? To shed light on this question, we present a large-scale field experiment involving 3, 300 firms across twelve European Union countries. We elicit firms' perceptions of the share of similar firms in their own country that had invested in artificial intelligence (AI), as well as the corresponding share among similar firms in Germany, France, and Italy. We randomly provide half of the sample with accurate information about both domestic and foreign AI investment. We show that firms substantially underestimate competitors' current AI investment, both domestically and abroad, and that they update their expectations about competitors' future AI investment in response to the information treatment. The treatment also causes a statistically significant increase in firms' own expected AI investment rate (p-value |
| JEL: | C93 D22 L21 O33 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35314 |
| By: | Ahmed, Abrar; Siddiqui, Danish Ahmed |
| Abstract: | Objective: This study examines the effect of Board of Directors (BOD) effectiveness on the performance of Takaful companies in Pakistan, with a focus on the moderating role of Shariah Committee quality. It aims to assess how governance elements influence firm performance in the Islamic finance context. Sampling: The study uses panel data from 14 Takaful firms in Pakistan, covering a five-year period (2018-2022). Data were sourced from annual reports and official governance disclosures. Methodology: A quantitative approach is used, employing multiple regression analysis with interaction effects to test the relationships between BOD effectiveness, Shariah committee quality, and firm performance (measured by ROA, ROE, and Tobin's Q). Results: The findings reveal that Board Independence, Shariah Committee Expertise, and Shariah Committee Independence significantly improve firm performance. Conversely, CEO Duality, Shariah Committee Size, and Meeting Frequency show no significant impact. Implications and Significance: The results highlight the importance of board independence and Shariah competence over structural factors. This study offers empirical guidance for regulators, policymakers, and Takaful firms to strengthen governance frameworks and enhance performance through high-quality dual governance. |
| Keywords: | Takaful, Board of Directors, Shariah Committee Quality, Corporate Governance, Firm Performance, Islamic Insurance, Islamic Finance |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341015 |
| By: | Tugrul Temel, Tugrul |
| Abstract: | This paper develops a co-evolutionary network model to analyze how micro-level interactions among heterogeneous organizations generate macro-level structural patterns and performance outcomes in innovation systems. Organizations possess knowledge stocks, absorptive and distributive capacities, and adaptively rewire their connections. We integrate six key mechanisms---capacity-constrained knowledge flows, endogenous capacity accumulation, resource-based collaboration costs, innovation as a growth-structure interaction, strategic repositioning, and adaptive network rewiring---into a formal simulation framework. The model is calibrated using Approximate Bayesian Computation to match stylized facts from the innovation literature and employed in a structured scenario analysis spanning alternative policy-relevant regimes. Results reveal systematic trade-offs with important policy implications. Expanding connectivity without parallel capacity development yields limited gains; isolated capacity building amplifies inequality. In contrast, coordinated interventions targeting both network structure and organizational capabilities produce the most robust and equitable growth. Comparative analysis across four distinct economic environments demonstrates that intervention effectiveness is highly contingent on underlying frictions. The findings underscore the need for innovation policy that is explicitly network-aware and systemic, emphasizing bundled, context-sensitive interventions rather than isolated levers. The model provides a computational laboratory for exploring such policy design principles. |
| Keywords: | innovation systems; policy design; network analysis; graph-theoretic concepts; |
| JEL: | O31 O32 O38 |
| Date: | 2026–02–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128018 |
| By: | Suliman, Abdulhameed; Nihar, Samia; Arabi, Zuhair; Omer, Namariq |
| Abstract: | The study examines how digital inclusion shapes the economic empowerment and resilience of women entrepreneurs in Kassala State, Eastern Sudan, using a mixed‑methods design that combines SLMPS 2022 survey analysis with interviews and focus groups. Grounded in a technological capability and inclusive innovation framework, it conceptualizes digital inclusion as meaningful, safe use of technologies for enterprise functions rather than simple access, and constructs a Women’s Economic Empowerment Index (WEEI) to capture empowerment attitudes. Quantitative findings show that education and household wealth are positively associated with empowerment, while age and marriage correlate negatively, and that basic digital access indicators are not robust predictors of empowerment, suggesting that technology alone is insufficient in the absence of key conversion factors such as skills, affordability, and institutional support. Qualitative evidence explains these patterns by revealing widespread “ownership without business use”, with women constrained by high data and device costs; unreliable electricity and connectivity; low digital skills; and gendered norms and reputational fears that limit public-facing online activity, leading them to rely mainly on low-barrier platforms like WhatsApp and Facebook. The study concludes that digital inclusion contributes to women’s economic empowerment in Kassala only conditionally, depending on the interaction between access, individual capabilities, and enabling ecosystem factors, and argues that policy and programme interventions must move beyond access metrics to address these structural and normative constraints. |
| Keywords: | Digital inclusion, women entrepreneurs, economic empowerment, technological capabilities, inclusive innovation, Women's Economic Empowerment Index (WEEI) |
| JEL: | J24 O3 O33 |
| Date: | 2026–02–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128011 |