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on Small Business Management |
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Issue of 2013‒09‒28
four papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Degryse, Hans; Lu, Liping; Ongena, Steven |
| Abstract: | The recent financial crisis has reopened the debate on the impact of informal and formal finance on firm growth in developing countries. Using unique survey data, we find that informal finance is associated with higher sales growth for small firms and lower sales growth for large firms. We identify a complementary effect between informal and formal finance for the sales growth of small firms, but not for large firms. Informal finance offers informational and monitoring advantages, while formal finance offers relatively inexpensive funds. Co-funding, i.e. the simultaneous use of formal and informal finance, is the optimal choice for small firms. |
| Keywords: | Co-Funding; Formal Finance; Growth; Informal Finance |
| JEL: | G21 G32 P2 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9519&r=sbm |
| By: | Friedrich Dornbusch (Fraunhofer Institute for Systems and Innovation Research ISI, Competence Center Policy and Regions); Thomas Brenner (Economic Geography and Location Research, Philipps-Universität Marburg) |
| Abstract: | It is often claimed that universities act as local knowledge factories. Although this function is largely analyzed in previous research, there still is a knowledge gap regarding the role of a technological match between the profiles of partners in university-industry interactions. In addition, the effects of different knowledge dynamics in technological regimes remain under-researched. In this paper, we thus draw special attention to the question how geographical distance and the specific role of a technological fit between the knowledge provided by the university and the technological needs of the local industry affects interactions between universities and firms. Thereby, we differentiate between six technological regimes constituted by different knowledge dynamics. Our analyses are based on a unique dataset containing all German universities’ academic patenting and publication activities. As these are further enriched by secondary data, they enable us to show that the technological fit between a university and its surrounding region (in terms of local industry needs) indeed has a significant influence on a university’s innovation-related research interactions, especially with small firms. We further show that this effect additionally depends on the underlying knowledge base in heterogeneous technological regimes. |
| Keywords: | university-industry interaction, technological fit, knowledge base, academic patenting, technology regime, local knowledge hub |
| JEL: | O31 R12 L14 |
| Date: | 2013–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2013-10&r=sbm |
| By: | Stefan Wagner (ESMT European School of Management and Technology); Karin Hoisl (University of Munich); Grid Thoma (University of Camerino) |
| Abstract: | The literature on organizational learning asserts that external learning is often limited geographically and technologically. We scrutinize to what extent organizations acquire external knowledge by accessing external knowledge repositories. We argue that professional service firms (PSFs) grant access to nonlocalized knowledge repositories and thereby not only facilitate external learning but also help to overcome localization. Focusing on patent law firms, we test our predictions using a unique dataset of 544,820 pairs of EP patent applications. Analyzing patterns of knowledge flows captured in patent citations we find that accessing a PSF’s repository facilitates the acquisition of external knowledge. As the effect is more pronounced for knowledge that is distant to a focal organization we conclude that having access to a knowledge repository compensates for localization disadvantages. |
| Keywords: | Learning, knowledge acquisition, localization, patent citations, professional service firm |
| Date: | 2013–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:esm:wpaper:esmt-13-09&r=sbm |
| By: | Morgan, Horatio M. |
| Abstract: | Although the size of the informal economy is relatively large across Latin America and the Caribbean, it is not completely understood how deficiencies in the institutional environment may be related either to the propensity for entrepreneurship or the performance of entrepreneurs in the informal economy. Focusing on institutional heterogeneity, this paper characterizes external finance (i.e. local family-based equity, remittances, bank credit, business angel finance and venture capital) in terms of (1) the mix of finance, business consulting and contacts, (2) governance mechanisms (i.e. reputational capital versus formal contracts) and (3) fungibility (i.e. discretion to use funds borrowed or received for alternative purposes); and develop a number of propositions. The outcome is a finance-performance nexus that provides a basis for a theoretically grounded empirical investigation of the relationship between the financial aspects of the institutional environment and both the propensity for entrepreneurship and the performance of entrepreneurs in the informal economy. |
| Keywords: | Bank Credit; Entrepreneurship; Family-based Equity; Informal Economy; Latin America and the Caribbean; Remittances. |
| JEL: | G21 L26 M13 O17 O43 |
| Date: | 2013–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49856&r=sbm |