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on Small Business Management |
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Issue of 2010‒11‒06
seven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Armando Silva (Escola Superior de Estudos Industriais e de Gestão do Instituto Politécnico do Porto); Óscar Afonso (Universidade do Porto, Faculdade de Economia); Ana Paula Africano (Universidade do Porto, Faculdade de Economia) |
| Abstract: | Using a longitudinal database (1996-2003) at the plant level, this paper aims to shed light on the causal nexus between international trade engagement and productivity in Portugal. We analyse in particular the learning-by-exporting hypotheses. In line with recent empirical literature, we apply mainly the Propensity Score Matching and a differences-in-differences estimator. In post-entry years we find a higher growth of labour productivity and total factor productivity for new exporting firms when compared to firms that, although having similar characteristics, have decided not to begin exporting in that year. Moreover, in an attempt to uncover the channels through which the learning effects are driven to new exporters, we applied the same methodology to some sub-samples. We found that learning effects are higher for new exporters that are also importers or start importing at the same time. Other important factors influencing that learning ability are found in firms that export to more developed markets, in those that achieve a certain threshold of export intensity and particularly for those firms that belong to sectors in which Portugal is at a comparative disadvantage |
| Keywords: | Exports, Imports, Self-Selection, Learning-by-exporting, Matching |
| JEL: | F14 D24 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0026&r=sbm |
| By: | Alcina Nunes (Escola Superior de Tecnologia e de Gestão do Instituto Politécnico de Bragança); Elsa Sarmento (Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação) |
| Abstract: | We address the post-entry performance of new Portuguese firms by investigating the structural characteristics of the hazard and survival functions, using semi-parametric survival analysis for the total economy and its broad sectors. In order to approach the prevalence of some stylized facts and determinants of new firm survival, a new entrepreneurship database was produced, using the administrative data of Quadros de Pessoal, following the Eurostat/OECD´s internationally comparable business demography methodology. In line with the literature, we find that firms that start small and experience faster post-entry growth, face a higher probability of survival. Firm’s current size dimension matters particularly for the Services sector probability of survival. In industries characterized by high entry rates, post-entry survival is more difficult. This happens mostly in Agriculture and the Construction sectors in Portugal. We find a different result from the literature, for the effect of industry growth in survival rates. Firms operating in industries which are growing faster, seem to suffer from a higher probability of failure. The combined effect of turbulence and entry and growth variables help explaining this unexpected effect of industry growth on survival probabilities. By correcting heterogeneity, we obtain stronger magnitudes of the hazard ratios found previously |
| Keywords: | Entrepreneurship, Business, Demography, Business Survival, Performance Determinants, Micro-data |
| JEL: | C14 C41 L25 L26 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0023&r=sbm |
| By: | Carolina Castaldi; Jan Faber; Maikel Kishna |
| Abstract: | This paper investigates the ability of knowledge intensive business firms (KIBS) to engage in co-innovation with client firms. Co-innovation relates to KIBS competitive advantage as knowledge creators and sources of innovation. We propose a resource-based model where knowledge-related resources and capabilities explain why certain KIBS firms are able to co-innovate. We explore the model on a sample of Dutch environmental investigation firms. Our exploratory results confirm the expected dominant role played by the learning capabilities of KIBS firms in explaining their ability to co-innovate. |
| Keywords: | KIBS, co-innovation, resource-based, knowledge |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:tuecis:wpaper:1005&r=sbm |
| By: | Maria Luisa Mancusi (KITeS, Bocconi University, Milan, Italy); Andrea Vezzulli (Department of Management, University of Bologna, Bologna, Italy and KITeS, Bocconi University, Milan, Italy) |
| Abstract: | We study the effect of financing constraints on the decision to do R&D and on the level of R&D investment using survey data and complete financial accounting data on a large number of Italian manufacturing SMEs from 2001 to 2003. We use a direct indicator of credit constraints and employ an econometric approach allowing for the existence of binding financing constraints to be endogenously determined. We find that there is a significantly negative effect on the probability to set up R&D activities due to the presence of financing constraints, ceteris paribus. We also find that ignoring the endogeneity of the financing constraints indicator and the sample selection originating from firms not interested in doing R&D induces a bias in the estimated effect, which turns out to be positive and significant. We find the same result when studying the effect of liquidity constraints on R&D spending and are able to show that its reduction of liquidity constraints is largely to be associated with the reduction in the likelihood to do R&D (the R&D participation decision), rather than with a reduced level of investment. Finally, but importantly, firms that are both young and small appear to have additional difficulties in obtaining financing - even after controlling for both size and age - and disply a higher probability of being subject to credit constraints, ceteris paribus. |
| Keywords: | R&D, financing constraints, bivariate probit, IV Tobit |
| JEL: | G32 C35 O31 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:kites30_wp&r=sbm |
| By: | Hank Lim; Fukunari Kimura (Asian Development Bank Institute) |
| Abstract: | Production networks and the regional division of labor have been established in East Asia resulting in massive vertical intra-industry trade in parts and components within the region. This phenomenon is known as cross-border production sharing or the fragmentation of production processes into many stages across different countries. New development strategies claim that participation in international production and distribution networks is the key to accelerating economic development in the era of globalization. This process suggests that vertical input-output linkages between local firms and multinational corporations are the most powerful channels to accelerate technology transfers and spillovers. Given the trends of globalization and economic integration in East Asia, there is significant potential for the small and medium enterprise (SME) sector to increase its contribution to the region’s development through greater participation in global value chains. However, multiple market failures exist with regard to the development of SMEs and local entrepreneurship. These risks can be mitigated by proper policy measures such as strengthening technological and human resource capabilities through better networking and facilitating access to financing for SMEs. Despite many distortions and inefficiencies in implementing regional economic integration schemes in East Asia, there are many cumulative positive effects contributing to the emerging trend internationalization of SMEs in the region. This process can be significantly strengthened by creating a positive business environment through the standardization of products and services, rules and regulations, and a seamless market infrastructure in the region. |
| Keywords: | East Asia, production networks, input-output linkages, SME |
| JEL: | D20 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eab:microe:2312&r=sbm |
| By: | Nuno Crespo; Isabel Proença; Maria Paula Fontoura |
| Abstract: | There are theoretical reasons to expect that benefits to domestic firms from foreign direct investment would be confined to the area where the multinational firm is located and that the benefits depend on the development level of the host region. However, there is a scarcity of empirical studies on FDI’s indirect effects at the regional level, particularly with regard to inter-industry spillovers. This paper is an empirical contribution to this literature with data for Portugal. Both intra-industry and inter-industry FDI spillovers are considered. The concept of region adopted comprises the county in which the domestic firm is located, together with all of the directly neighbouring counties. Equations are estimated using the System GMM, with robust estimation of covariance matrices. Data confirms the relevance of both the geographical proximity and the development level of the region to this phenomenon. Furthermore, FDI spillovers are more evident at the inter-industry level. These results raise important implications for economic policy. |
| Keywords: | Portugal, FDI intra-industry spillovers, FDI inter-industry spillovers, counties, regional development level, geographical proximity. |
| JEL: | F21 F23 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp172010&r=sbm |
| By: | Koen Frenken; Roderik Ponds; Frank van Oort |
| Abstract: | This study shows for eight science-based industries that the citation impact of research collaboration is higher for international collaboration than for national and regional collaboration. A further analysis of institutional affiliations shows that university-industry-government collaborations profit from being organised at the regional scale only in the cases of biotechnology and organic fine chemistry. The alleged importance of physical proximity for successful interaction between university, industry and government thus is not robust across industries. We discuss the policy implications that follow. |
| Keywords: | proximity, citation, globalisation, university-industry-government collaboration, triple helixience, economics of science, geography of science, sociology of scientific knowledge |
| JEL: | O30 R10 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:tuecis:wpaper:1002&r=sbm |