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on Technology and Industrial Dynamics |
| By: | Mickey Folkeringa; Andre van Stel; Joris Meijaard |
| Abstract: | In this paper, we investigate the relationship between strategic renewal and the performance of smaller firms (less than 100 employees). We use a panel of micro data on about 1000 Dutch firms. The dataset contains information on aspects of strategic renewal, including process innovation and knowledge management. In our regression analyses we explain the variation in firm performance and we explicitly control for reversed causality, business cycle effects, sector effects, and firm age. We find that market research, an active external network for knowledge acquisition and strategic efforts into the improvement of internal processes are positively related to turnover growth. Furthermore, codification of knowledge, cooperation with partner firms and the provision of training to employees directly relates to employment growth. The results emphasize the importance of both knowledge absorption and knowledge creation to the success of innovative efforts in small firms. We find that the impact of the various measures varies with firm size. One further notable finding is that the ownership of patents negatively impacts small firm performance, particularly for the smallest firms in our sample. |
| Keywords: | strategic renewal, growth of small firms, entrepreneurship, innovation |
| JEL: | L25 O33 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2005-36&r=tid |
| By: | Andre van Stel; David Storey; Roy Thurik; Sander Wennekers |
| Abstract: | This exploratory study focuses on the conversion from nascent to actual entrepreneurship and the role of entry barriers in this process. Using data for a sample of countries partici-pating in the Global Entrepreneurship Monitor between 2002 and 2004, we estimate a two-equation model explaining the nascent entrepreneurship rate and the young business entre-preneurship rate, while taking into account the interrelationship between the two variables (i.e. the conversion). Furthermore various determinants of entrepreneurship reflecting the demand and supply side of entrepreneurship as well as government intervention are incor-porated in the model. We find evidence for a strong conversion effect from nascent to ac-tual entrepreneurship. We also find positive effects on entrepreneurial activity rates of la-bour flexibility and tertiary enrollment and a negative effect of social security expenditure. Concerning the effect of entry regulations we find mixed results. Using one set of entry regulation measures we find no effects whereas using data from a second source we find a weak negative effect of more burdensome entry regulations on the rate of entrepreneurship. |
| Keywords: | nascent entrepreneurship, young businesses, entry regulations |
| JEL: | H10 M13 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2005-35&r=tid |
| By: | Christopher A Laincz; Ana Sofia Domingues Rodrigues |
| Abstract: | This paper presents a dynamic model of the firm size distribution. Empirical studies of the firm size distribution often compare the moments to a log-normal distribution as implied by Gibrat's Law and note important deviations. Thus, the first, and basic questions we ask are how well does the dynamic industry model reproduce Gibrat's Law and how well does it match the deviations uncovered in the literature. We show that the model reproduces these results when testing the simulated output using the techniques of the empirical literature. We then use the model to study how structural parameters affect the firm size distribution. We find that, among other things, fixed and sunk costs increase both the mean and variance of the firm size distribution while generally decreasing the skewness and kurtosis. The rate of growth in an industry also raises the mean and variance, but has non-monotonic effects on the higher moments. |
| Keywords: | Firm size distribution; Gibrat's Law; R&D. |
| JEL: | L11 L13 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:05/34&r=tid |
| By: | Bruining, H.; Verwaal, E. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | The paper explores the impact of entrepreneurial management dimensions on post-MBO financial performance. We use Stevenson?s conceptualization of entrepreneurship (1983), empirically validated by Brown, Davidsson and Wiklund (2001), positing that entrepreneurial companies will be involved in recognizing and exploiting opportunity, regardless of the resources controlled. From the literature we hypothesize positive effects of entrepreneurial management dimensions on post-MBO financial performance. We find that successful buyout managers cannot be classified as entrepreneurs on all entrepreneurial dimensions. Instead they ambidextrously combine the pursuit of valuable opportunities with the exploitation and control of their resources. Implications for theory and managerial practice are discussed. |
| Keywords: | Management Buyouts;Entrepreneurial Management;Financial Performance; |
| Date: | 2005–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30007805&r=tid |
| By: | Ana, MAULEON; José, SEMPERE-MONERRIS; Vincent, VANNETELBOSCH |
| Abstract: | We study the endogenous formation of networks between manufacturers of differentiated goods and multi-product retailers who interact in a successive duopoly. Joint consent is needed to establish and/or maintain a costly link between a manufacturer and a retailer. We find that only three distribution networks are stable for particular values of the degree of product differentiation and link costs : (i) the non-exclusive distribtion & non-exclusive dealing network in which both retailers distribute both products is stable for intermediate degree of product differentiation and small link costs; (ii) the exclusive distribution & exclusive dealing network in which each retailer distributes a different product is stable for low degrees of product differentiation; (iii) the mixed distribution network in which one retailer distributes both products while the other retailer sells only one is stable for high degrees of product differentiation and large link costs. We show that the distribution networks that maximize social welfare are not necessarily stable. Thus, a conflict between stability and social welfare is likely to occur, even more if the degree of product differentiation is either low or high. |
| Keywords: | Networks; Retailers; Manufacturers |
| JEL: | C70 L13 L20 J50 J52 |
| Date: | 2005–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2005036&r=tid |
| By: | Stel, A.J. van; Suddle, K. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | This paper examines the relationship between new firm formation and regional employment change in the Netherlands. Using a new regional data base for the period 1988-2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by time period, by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about six years. Our results also suggest that the overall employment impact of new-firm startups is positive but that the immediate employment effects may be small in the Netherlands. Furthermore, we find that the relation between new businesses and regional development has been stable during the period under investigation, that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization. |
| Keywords: | Startups;Entrepreneurship;Regional Development;the Netherlands; |
| Date: | 2005–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30007804&r=tid |
| By: | Huasheng, SONG; Vincent, VANNETELBOSCH |
| Abstract: | We reconsider Goyal and Moraga-Gonzalez (Rand J. of Econ. 32 (2001), 686-707) model of strategic networks in order to analyze how government policies (e.g. subsidies) will affect the stability and efficiency of networks of R&D collaboration among three firms located in different countries. A conflict between stability and efficiency is likely to occur. When governments cannot subsidize R&D, this conflict will occur if public spillovers are not very small. However, when governments can subsidize R&D, the likelihood of a conflict is considerably reduced. Indeed, a conflict will arise only if public spillovers are very small or quite large. |
| Keywords: | Network; R&D collaboration; Subsidy |
| JEL: | C70 F13 L13 L20 |
| Date: | 2005–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2005035&r=tid |
| By: | Maryann Feldman; Alessandra Colaianni; Kang Liu |
| Abstract: | This paper examines the history of the licensing and subsequent commercialization of the Cohen-Boyer Patents. These licenses are considered among the most successful examples of university technology transfer in terms of generating revenue and creating a range of new products. Stanford was negotiating new ground with their licensing program and they consulted widely in the design and implementation their program. The paper begins by providing the context for Stanford’s approach to licensing and then examines the implementation of the licensing practices and procedures. The final section of the paper examines the commercial products that companies developed using the technology and the resulting licensing revenues. We demonstrate that even with a successful nonexclusive license the outcome is highly skewed with about 80% of the revenues originating from ten companies with a small number of products. |
| Keywords: | Cohen-Boyer; patents; university technology transfer; licenses; biotechnology |
| JEL: | L65 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:05-21&r=tid |
| By: | Philip Stevens (National Institute of Economic & Social Research) |
| Abstract: | This paper considers the job satisfaction of academics using a detailed dataset of over two thousand academics from ten English higher education institutions. The results of our analysis suggest that one would be wrong to consider one single measure of job-satisfaction. Academics appear to be considering three separate sets of elements of their jobs, namely the pecuniary factors (both the salary and the ability to earn money from additional work. We also consider the influence of these elements of job satisfaction on their intentions to leave the sector. |
| Keywords: | Satisfaction, academics, turnover, comparison income |
| JEL: | C25 J28 J63 |
| Date: | 2005–12–06 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpla:0512005&r=tid |