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on Small Business Management |
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Issue of 2011‒05‒14
fifteen papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Lamia Ben Hamida (Institute of Management and Information Systems, University of Applied Sciences, Haute Ecole de Gestion ARC) |
| Abstract: | This paper examines the impact of the MNCs’ internationalisation of R&D activities on their performances/productivity at home. Specifically, using detailed firm-level data for Swiss manufacturing firms, we find that foreign R&D activity of Swiss MNCs is a valuable source of knowledge which improves their productivity performance at home, but only when firms invest in knowledge-seeking activities. Conversely, R&D activities conducted abroad with knowledge exploiting purposes seem to weaken the MNC’s productivity at home. |
| Keywords: | internationalization, R&D, knowledge, seeking, exploiting, productivity |
| JEL: | F23 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:heg:wpaper:article_bjir2010&r=sbm |
| By: | Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Welsh, Dianne H. B. (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | Many researchers have studied correlates of business formations. Through the case-based and statistical literature several broad categories of influence on the entrepreneurial decision to start a new business have been identified. We contribute to this literature though our statistical analysis of a unique database of young inventive scientists and engineers and their propensity toward a new business formation. Our particular focus is on young inventors starting a business based on their creative achievements. Among this group do not find empirical support for the influence of traditional variables—such as age, education, and gender—on the propensity to start a new business. Rather, we find that their entrepreneurial experience as a new business proprietor is driven by dimensions of their university laboratory research experience. |
| Keywords: | Entrepreneurship; business formation; patents |
| JEL: | L26 |
| Date: | 2011–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_011&r=sbm |
| By: | MOTHE Caroline; NGUYEN Thi Thuc Uyen; NGUYEN-VAN Phu |
| Abstract: | Organizational innovation has been shown to be favourable for technological innovation. However, the question of which organizational practices should be combined – and thus of their compatibility – remains unanswered. We here empirically investigate the complementarities between different organizational practices (business practices, knowledge management, workplace organization and external relations). Firm-level data were drawn from the Community Innovation Survey (CIS) carried out in 2008 in Luxembourg. Supermodularity tests provide evidence of the impact of complementary asset management to raise firms’ innovative performance. The organizational practices’ combinations differ according to whether the firm is in the first step of the innovation process (i.e. being innovative) or in a later step (i.e. performing as far as innovation is concerned). When adopting organizational practices, managers should therefore be aware of their effects on technological innovation. These results also have implications for public policies in terms of innovation support. |
| Keywords: | Complementarities; Organizational innovation; Technological innovations; Supermodularity; Innovative performance |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2011-32&r=sbm |
| By: | Giulio Cainelli (University of Padova); Massimiliano Mazzanti (University of Ferrara); Sandro Montresor (University of Bologna) |
| Abstract: | This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with ‘qualified’ local actors – i.e. universities and suppliers – is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in district areas, which might even turn agglomeration into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in fields as CO2 abatement and ISO labelling, generally extending the analysis EI driver by joining local and international factors. |
| Keywords: | Eco-Innovation, Foreign Ownership, Networking, District, Agglomeration Economics, Local Production Systems |
| JEL: | C21 L60 O13 O30 Q20 Q58 F23 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2011.20&r=sbm |
| By: | B. SCHOONJANS; P. VAN CAUWENBERGE; H. VANDER BAUWHEDE |
| Abstract: | This paper provides new empirical evidence on the impact of formal business networking on SME growth. More specifically, using a large, unbalanced panel data set of Flemish SMEs over the period 1992-2008, we examine whether participation in a government-supported program aimed at intense guidance for small business managers affects SME growth. We find that this objective measure of formal business networking is significantly positively correlated with net asset and value added growth. These results confirm that formal business networking contributes to company success. |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:11/708&r=sbm |
| By: | Vásquez Urriago, Ángela Rocio; Barge-Gil, Andrés; Modrego Rico, Aurelia; Paraskevopoulou, Evita |
| Abstract: | Science and Technology Parks (STP) are one of the most important and extensive innovation policy initiatives introduced in recent years. This work evaluates the impact of STP on firm product innovation in the Spanish context. Spain is less developed than most of the advanced countries, and regional and national governments are prioritizing STP initiatives. The large firm sample for our study is from the Spanish Technological Innovation Survey, provided by the National Statistical Institute. We focus on average treatment effects for firms located in 22 Spanish STP. Our results show that Spanish STP have a strong and positive impact on the probability and amount of product innovation achieved by STP located firms. These results hold for different assumptions about the mechanisms underlying location in a STP. |
| Keywords: | Science and Technology Parks; product innovation; treatment effects; regional development policies. |
| JEL: | R53 L25 O25 O18 L38 O30 H76 |
| Date: | 2011–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30555&r=sbm |
| By: | Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Christian Le Bas (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Nicolas Poussing (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes I - Université de Caen) |
| Abstract: | This paper explores the relationship between different Corporate Social Responsibility (CSR) strategies and innovation. Using a survey carried out on CSR behavior of Luxembourg firms, we found two types of firms as far as CSR practices are concerned. Cluster 1 firms adopted CSR practices to achieve economic goals without resorting to the formalization of these practices. In contrast, cluster 2 firms "learn CSR by doing" and by establishing CSR procedures and tools. Then we match Community Innovation Survey (CIS) data and specific data collected on CSR clusters. We estimate Logit models to explain the different types of innovation (product, process, organizational). In comparison with the firms which don't adopt CSR, firms in Cluster 1 are more innovative in terms of product and process once we control for firm characteristics and innovation drivers while firms in cluster 2 tend to reject innovation in process and adopt organizational innovation. These results, which show the link between the various CSR practices and innovation types, have important consequences in terms of managerial recommendations and public policy support for innovation. |
| Keywords: | Corporate Social Responsibility; Innovation; Organizational; Practices; Product; Process |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00590326&r=sbm |
| By: | Eleonora Cutrini, Enzo Valentini (University of Macerata) |
| Abstract: | <div style="text-align: justify;">It is well-known that Italy has two distinguishing characteristics closely intertwined with each other and unusual for an advanced country: a persisting specialization in traditional industries and deep internal disparities. The Italian "anomaly" is rooted in the predominance of clusters of small firms producing and exporting low-skilled labour-intensive goods. Some authors have suggested that marked regional variations in manufacturing structures underpin Italy’s perpetual North-South divide, with northern regions more oriented to capital (and knowledge) intensive industries than the rest of the country. Whatever the remote causes of the Italian "anomaly" may be, we provide evidence of a new tendency whereby capital- and knowledge intensive regional structural change has occurred. The literature to date may provide some descriptive and indirect evidence on the dynamics of regional specialization in high-tech industries during the past decades, but previous studies have not addressed the issue of what determines such specialization. The aim of the article is to fill this gap. Our main research question can be summarized as follows: What are the structural characteristics that may explain the regional high-tech share in manufacturing? The methodology is based on a panel analysis (GLS with dummies to account for regional fixed effects) over the period 2004-2007. We control for panel level heteroskedasticity, autocorrelation and endogeneity. The results suggest that various factors such as labour force composition, firms borrowing capacity, accessibility, R&D, private and public expenditure and a good cultural environment significantly and positively influence regional high-tech specialization. We also find that a high prevalence of industrial districts may lock-in regional structures away from capital-intensive and high-tech manufacturing activities.</div> |
| Keywords: | manufacturing structure,GLS panel analysis,High-tech specialization, Italy |
| JEL: | C33 O18 R11 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:wpaper:wpaper00035&r=sbm |
| By: | Kraeussl, R.; Krause, S. |
| Abstract: | After nearly two decades of U.S. leadership in the 1980s and 1990s, are Europe's venture capital markets in the 2000s finally catching up regarding the provision of financing and successful exits, or is the performance gap as wide as ever? Are we amidst overall dismal performance of the venture capital experience without any encouraging news? We attempt to answer these questions by tracking down over 40,000 venture capital--backed firms of six industries in 13 European countries and the U.S., and determine which type of exit - if any - each particular firm's investors have chosen between 1985 and 2009. Our empirical findings suggest that: (i) in terms of the number of venture capital-backed firms successfully going public, European venture capitalists have closed the gap with respect to the U.S., albeit as a result of a worse initial public offering performance overall; (ii) Europe continues to lag behind the U.S. by means of mergers and acquisitions, and in successful exits of seed/start-up and early stage firms, (iii) average investment and R&D are important determinants of venture capital success, but only have a positive impact after 2000; and (iv) idiosyncratic differences across industries seem to be more relevant than country-specific characteristics in explaining differences in performance. |
| Keywords: | Venture capital, private equity, success rates, performance, IPOs. |
| JEL: | G24 G3 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:327&r=sbm |
| By: | Ozgen, Ceren (VU University Amsterdam); Nijkamp, Peter (VU University Amsterdam); Poot, Jacques (University of Waikato) |
| Abstract: | The concentration of people with diverse socio-cultural backgrounds in particular geographic areas may boost the creation of new ideas, knowledge spillovers, entrepreneurship, and economic growth. In this paper we measure the impact of the size, skills, and diversity of immigration on the innovativeness of host regions. For this purpose we construct a panel of data on 170 regions in Europe (NUTS 2 level) for the periods 1991-1995 and 2001-2005. Innovation outcomes are measured by means of the number of patent applications per million inhabitants. Given the geographical concentration and subsequent diffusion of innovation activity, and the spatial selectivity of immigrants' location choices, we take account of spatial dependence and of the endogeneity of immigrant settlement in our econometric modelling. We use the location of McDonald's restaurants as a novel instrument for immigration. The results confirm that innovation is clearly a function of regional accessibility, industrial structure, human capital, and GDP growth. In addition, patent applications are positively affected by the diversity of the immigrant community beyond a critical minimum level. An increase in the fractionalization index by 0.1 from the regional mean of 0.5 increases patent applications per million inhabitants by about 0.2 percent. Moreover, the average skill level of immigrants (proxied by global regions of origin) also affects patent applications. In contrast, an increasing share of foreigners in the population does not conclusively impact on patent applications. Therefore, a distinct composition of immigrants from different backgrounds is a more important driving force for innovation than the sheer size of the immigrant population in a certain locality. |
| Keywords: | innovation, economic growth, cultural diversity, immigration, spatial autocorrelation |
| JEL: | J61 O31 R23 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5676&r=sbm |
| By: | Driouchi, Ahmed; Zouag, Nada |
| Abstract: | Abstract: The objective of this paper is to show that universities can be engines for local development in Southern economies. Previous contributions to the literature on this subject have already shown the positive effects of regional sources of tacit knowledge on local development. Using data on developed, developing and emerging countries, regression analysis is pursued with the available data. The attained results show that developing economies do have room for local development as this can be further provided by regional universities and schools. These potential gains have been expressed to be higher for developing and emerging countries. These results imply that developing and emerging countries can enhance their local and overall development through the promotion of local universities and schools but these sources of skills and knowledge need to be tied with the local needs of the population as in developed countries. The case of Morocco illustrates the potential and positive effects of regional universities on local development. The transmission channel includes encouragement of skills, access to patents and intellectual property rights protection besides enterprise creation and implementation. These trends are likely to be accelerated within the regionalization process and the role of regional knowledge centers. |
| Keywords: | universities-innovations-local development-Southern countries-Morocco |
| JEL: | R10 O18 O31 |
| Date: | 2011–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30705&r=sbm |
| By: | Maré, David C. (Motu Economic and Public Policy Research Trust); Fabling, Richard (Reserve Bank of New Zealand); Stillman, Steven (Motu Economic and Public Policy Research Trust) |
| Abstract: | We combine firm-level innovation data with area-level Census data to examine the relationship between local workforce characteristics, especially the presence of immigrants and local skills, and the likelihood of innovation by firms. We examine a range of innovation outcomes, and test the relationship for selected subgroups of firms. We find a positive relationship between local workforce characteristics and average innovation outcomes in labour market areas, but this is accounted for by variation in firm characteristics such as firm size, industry, and research and development expenditure. Controlling for these influences, we find no systematic evidence of an independent link between local workforce characteristics and innovation. |
| Keywords: | local labour market, immigration, innovation |
| JEL: | O31 R30 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5686&r=sbm |
| By: | Unknown |
| Abstract: | This Policy Brief is part of the EU-EFIGE (European Firms in a Global Economy) project which aims to address policy questions on the casual link between firm characteristics and internationalisation. Authored by Giorgio Barba Navaretti, University of Milan; Matteo Bugamelli, Bank of Italy; Gianmarco Ottaviano, Bruegel Senior Fellow; and Fabiano Schivardi, University of Cagliari, this paper is based on a comprehensive survey of 15,000 firms across seven EU countries. The findings of this paper set the foundation for deeper investigation into key policy challenges affecting European firms on the global stage. |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polbrf:411&r=sbm |
| By: | Marco Marini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Maria Luisa Petit (Department of Computer and System Sciences "Antonio Ruberti", Università di Roma "La Sapienza"); Roberta Sestini (Department of Computer and System Sciences "Antonio Ruberti", Università di Roma "La Sapienza") |
| Abstract: | We present a model of endogenous formation of R&D agreements among firms in which also the timing of R&D investment is made endogenous. The purpose is to bridge two usually separate streams of literature, the noncooperative formation of R&D alliances and the endogenous timing literature. Our approach allows to consider the formation of R&D agreements over time. It is shown that, when both R&D spillovers and investment costs are sufficiently low, firms may find difficult to maintain a stable R&D agreement due to the strong incentive to invest noncooperatively as leaders. In such a case, to be stable a R&D agreement requires that the joint investment occurs at the initial stage, avoiding any delay. When instead R&D spillover rates are sufficiently high, the cooperation in R&D constitutes a profitable option, although firms also possess the incentive to sequence their investment over time. Finally, when spillovers are asymmetric and the knowledge leaks mainly from the leader to the follower, to invest as follower becomes extremely profitable, making R&D alliances hard to sustain unless firms strategically delay their joint investment in R&D. |
| Keywords: | R&D investment, Spillovers, Endogenous Timing. |
| JEL: | C72 D43 L11 L13 O30 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:11_04&r=sbm |
| By: | Ahmed, Vaqar; Wahab, Mohammad Abdul; Mahmood, Hamid |
| Abstract: | Today South Asia is host to a large youth bulge which is entering the labor market every year posing challenging questions for the national governments in the context of employable skills, space for entrepreneurship, innovation and economic freedom. SME sector provides an opportunity for the young to exercise their ideas and ideals. However a prerequisite for the young to be innovate is the how countries produce and retain a high end human capital. This study provides a review of national socio-economic policies in South Asian region - which answer such challenges. |
| Keywords: | human resource development; small and medium enterprises; economic growth; competitiveness |
| JEL: | J08 J24 |
| Date: | 2011–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30780&r=sbm |