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on Small Business Management |
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Issue of 2014‒05‒04
seventeen papers chosen by Joao Carlos Correia Leitao Universidade da Beira Interior and Universidade de Lisboa |
| By: | Hellerstedt, Karin (Jönköping International Business School); Wennberg, Karl (The Ratio Institute and Stockholm School of Economics.); Frederiksen, Lars (Innovation Management Group, Department of Business Administration, Aarhus University,) |
| Abstract: | This paper investigates regional start-up rates in the knowledge intensive services and high-tech industries. Integrating insights from economic geography and population ecology into the literature on entrepreneurship, we develop a theoretical framework which captures how both supply- and demand-side factors mold the regional bedrock for start-ups in knowledge intensive industries. Using multi-level data of all knowledge intensive start-ups across 286 Swedish municipalities between 1994 and 2002 we demonstrate how characteristics of the economic and political milieu within each region influence the ratio of firm births. We find that economically affluent regions dominate entrepreneurial activity in terms of firm births, yet a number of much smaller rural regions also revealed high levels of start-ups. Knowledge spillovers from universities and firm R&D strongly affect the start-up rates for both knowledge intensive manufacturing and knowledge intensive services firms. However, the start-up rate of knowledge-intensive service firms is tied more strongly to the supply of highly educated individuals and the political regulatory regime within the municipality. This suggests that knowledge intensive service-start-ups are more susceptible to both demand-side and supply-side context than manufacturing start-ups. Our study contributes to the growing stream of research that explains entrepreneurial activity as shaped by contextual factors, most notably educational institutions that contribute to technology startups. |
| Keywords: | Start-ups; Spillovers; Universities; R&D; Political regime |
| JEL: | L26 M13 P25 R12 |
| Date: | 2014–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0230&r=sbm |
| By: | Antonio Vezzani (JRC-IPTS); Sandro Montresor (University of Bologna) |
| Abstract: | The paper investigates the extent to which outward FDI affect the MNC's capacity of entering (and remaining in) the club of top R&D world investors, benefiting from performance gains in both financial and economic markets. By merging the European Industrial Research and Innovation Scoreboard with the fDi Markets dataset, we find supporting evidence. Increasing the number of FDI projects helps firms overcome the discontinuities that, in the distribution of R&D expenditures, separate the largest R&D investors from those below them. The same is true for the number of FDI projects in R&D, which are also more important than greater FDI portfolios in becoming a top R&D spender. Furthermore, unlike FDI in general, more FDI in R&D guarantee firms to remain in this top club of firms as it increases their capacity of competing among the top R&D spenders. Results at the extensive margin (i.e. the number of FDI projects) are confirmed with respect to the scale of FDI projects (i.e. at the intensive margin). However, increasing their size is not enough to become one of the highest ranking R&D firms. Policy implications about the support to R&D internationalisation are drawn accordingly. |
| Keywords: | Foreign Direct Investments (FDI), Multinational Corporations (MNC), Research & Development (R&D) |
| JEL: | O32 F23 O33 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc88585&r=sbm |
| By: | Sen, Neelanjan |
| Abstract: | This paper analyses technology transfer and innovation activities by the high cost firm in a Cournot duopoly framework, where technology transfer between the firms may occur after the innovation decision. The two effects of innovation are to access the superior technology of the low cost firm if higher cost prohibits technology transfer and to affect the pricing rule of technology transfer via higher bargaining power. The incentive for innovation is more in fixed-fee licensing than in two-part tariff (royalty) licensing if cost difference between firms is low. The possibility of licensing, irrespective of the licensing scheme, encourages innovation if the cost difference between the firms is high. |
| Keywords: | Technology licensing; Innovation; Welfare |
| JEL: | D45 L24 |
| Date: | 2014–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55542&r=sbm |
| By: | Sander Wennekers; al et |
| Abstract: | This eleventh edition deals with Top sectors and their importance to the Dutch economy. In 2010, the Dutch government introduced a new policy framework regarding the business sector. Besides generic measures to strengthen the business environment for all companies, there is a specific policy track to improve the performance of a number of important business sectors by building excellent eco-systems of government, knowledge institutes and businesses. Products and technologies produced by these sectors are furthermore important because they can provide solutions for societal problems. Topics: Entrepreneurship in the Netherlands in international perspective The policy of the Dutch government on top sectors Characteristics of SMEs in top sectors Entrepreneurship and business dynamics in the Netherlands - enabling experimentation � |
| Date: | 2014–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:a201417&r=sbm |
| By: | Giuditta de Prato (European Commission – JRC - IPTS); Daniel Nepelski (European Commission – JRC - IPTS) |
| Abstract: | The EIPE project aims to identify ICT R&D&I-related activities which are geographically concentrated and which demonstrate high performance in ICT innovative activities: the European ICT Poles of Excellence. This is the third EIPE Report and it presents the results of an empirical mapping of ICT activity in Europe and the ranking of the top European NUTS 3 regions based on their performance in the EIPE Composite Indicator (EIPE CI). It also ranks the individual 42 indicators which contributed to the building of the EIPE composite indicator. This report offers a snapshot of the performance of regions that are identified as the main locations of ICT activity in Europe. It is meant to provide a comprehensive picture of how ICT activity is distributed across Europe and where its main locations are. This information is expected to give a better overview of the European ICT landscape. |
| Keywords: | ICT; information and communication technologies; innovation, R&D, ICT industry; region; Europe; Poles of Excellence; clusters; indicators; methods |
| JEL: | O32 O52 R12 R28 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85353&r=sbm |
| By: | Jacques Arlotto; Philippe Jourdan; Jean-Michel Sahut; Frédéric Teulon |
| Abstract: | This article questions the impact of contest « Challenge Projets d’Entreprendre » on entrepreneurial intention of students, but also its real contribution to the creation of innovative firms as motivation and stimulation factors. The results confirm its role of «awakening» among students, but they do not suggest that this type of training predominantly influence the passage to the act of creation, even for the winners of this competition. |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-257&r=sbm |
| By: | Jean Rédis; Jean-Michel Sahut |
| Abstract: | This article is about the existence of potential differences in access to venture capital between serial entrepreneurs (who have founded several businesses, either one after the other or simultaneously) and new entrepreneurs (who create a business for the first time). Even though the empirical results differ regarding the serial entrepreneurs’ outperformance compared to new entrepreneurs, numerous examples seem to suggest that serial entrepreneurs have an easier access to venture capital. This paradox can be explained through organisational theory. The distribution of venture capital is characterized by an information asymmetry between the investor and the entrepreneur. This problem can either be solved through contracts or rely on a mutual confidence. If we look at the second solution, the entrepreneurial experience, because considered as entrepreneurial training, is an advantage for the serial entrepreneur, because he or she has both more human capital (experience) and social capital (network) than a new entrepreneur. These are advantages that can give the entrepreneur easier access to venture capital. A review of empirical studies points towards an easier access to venture capital for serial entrepreneurs. They access funds more quickly, and receive bigger amounts than new entrepreneurs. But the studies are less conclusive if we look for a higher valuation of the serial entrepreneurs’ businesses compared to those of the new entrepreneurs. |
| Keywords: | entrepreneurial finance ; venture capital ; start-up ; organizational capital ; human capital ; social capital ; serial entrepreneurship. |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-260&r=sbm |
| By: | Humbert Lesca; Dorota Leszczynska |
| Abstract: | This publication presents theoretical documents dealing with the capacity of a community of practice to create useful knowledge favouring the innovative process in its emerging stage. This research aims at a better understanding of innovative communities, and deals with the 2 situated dimension of these communities. This research also raises the question of the potential means to support the activity of a community of practice with innovative projects. The main line of investigation concerns the modes of communicational regulation chosen by innovative communities in order to match the specific features of the environment of their activity. The case study followed by a process of research / intervention favours an empirical questioning of the situated conceptualization of the communities of creators. The case of a long-standing innovative community, widely acknowledged by several generations, is compared to the cases of two firms attempting, ex nihilo, to set up a community of creative practitioners with innovative aims. These examples highlight some aspects of creative exchanges, such as human sensorial knowledge, emotional environment, shared emotions, tacit communication, etc. |
| Keywords: | innovative community, situated approach, communicational regulation, tacit knowledge, sensorial. |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-276&r=sbm |
| By: | Aurélie SANNAJUST; Fabien ROUX; Anissa CHAIBI |
| Abstract: | In the last few years, small firms have had difficulties to finance their projects via the traditional bank system. A new type of financing has recently appeared in Europe and in particular in France: the crowdfunding. It is a method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals via Internet. Our paper contributes to the literature by introducing this financial innovation and building a theoretical framework to explain its success. We also discuss some more practical issues to enhance crowdfunding in France. |
| Keywords: | financial innovation, crowdfunding, SMEs, France. |
| JEL: | G24 G34 |
| Date: | 2014–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-234&r=sbm |
| By: | Jean-Sebastien Lantz; Jean-Michel Sahut; Frédéric Teulon |
| Abstract: | Le capital risque industriel (CVC) joue un rôle moteur dans le développement d’innovations technologiques. C’est à la fois un apport en fonds propres ainsi qu’en compétences techniques et stratégiques aux start-up. Mais c’est également une stratégie entrepreneuriale réalisée à l’extérieur des grands groupes car ces derniers ne peuvent plus se contenter d’essayer de créer en interne des innovations. Le capital risque industriel permet ainsi de réduire le risque de l’innovation tout en gardant un certain contrôle sur l’entreprise cible ou une option de rachat sur l’innovation une fois que cette dernière aura dépassé le stade de l’émergence. Le CVC apparaît donc comme un mode de financement de l’innovation externe et plus efficient. Malgré les crises, il continue de se développer dans les secteurs high-tech les moins touchés notamment dans les biotechnologies. Les avantages qu’il apporte à chaque étape du projet par rapport au financement par des fonds de capital risque sont un gage de sa pérennité. |
| Keywords: | capital risque, innovation, performance, financement, motivation, investissement |
| Date: | 2014–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-233&r=sbm |
| By: | Jimmy A. Saravia |
| Abstract: | This paper reviews the empirical literature on corporate governance and firm performance and finds that it has yielded mixed results. The paper argues that a primary reason for this situation is that the relevant theories have not been applied to the class of phenomena they were designed to explain. In particular, the literature that focuses on ownership structure and firm performance employs entrepreneurial agency theories of the firm but applies them to managerial firms where ownership is separated from control. This is evidenced by the fact that firms in which managerial ownership is close to zero percent are included in the samples. Conversely, empirical work centered on the relationship between board composition and firm performance (which relies on managerial agency theories of the firm) not only does not make sure that the firms in their samples are characterized by the separation of ownership and control, but it also ignores the alternative managerial agency theory concerning the agency costs of free cash flows. Additionally, the paper maintains that other approaches, such as that which studies the relationship between indices of anti-takeover provisions and firm performance, do not rely on any particular theory and for this reason are beset by problems of interpretation. The paper concludes with recommendations for avoiding the drawbacks and achieving future progress. |
| Keywords: | Corporate Governance, Firm Performance, Agency Theory, Firm lifecycle |
| JEL: | G31 G34 |
| Date: | 2014–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:col:000122:010914&r=sbm |
| By: | Helene Jorgensen; Eileen Appelbaum |
| Abstract: | The Family and Medical Leave Act of 1993 (FMLA) gives eligible employees the right to take job-protected, unpaid leave to bond with a new child, care for a family member or military service member, or for one’s own serious illness for up to 12 weeks in a year. About 60 million private sector employees (55.9 percent) were eligible for family and medical leave under the FMLA in 2012. However, more than two-in-five private sector employees do not have access to job-protected leave because they are employed by small employers, which are exempt from the FMLA, and/or because they do not meet the tenure and hours worked requirements for eligibility. If the FMLA were amended to cover all firms and worksites regardless of size, an estimated 34.1 million private-sector employees would gain access to job-protected family and medical leave, if they otherwise meet the eligibility requirements relating to length of tenure and hours of work. |
| Keywords: | FMLA, family leave, medical leave |
| JEL: | I I1 H J J8 J83 J88 J3 J33 J38 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2014-06&r=sbm |
| By: | Reckendrees, Alfred |
| Abstract: | The economic transition characterizing the process of European industrialization in the 19th century was concentrated on regions rather than on states. In the first half of the 19th century, the region of Aachen (in the west of Prussia) pioneered on the territory of the German states and developed to a powerful industrial district. The implementation and diffusion of the factory system and the economic impact of adapted and new institutions make the core of this paper. Reciprocal interconnections between firms of different clusters shaped the region and created economic dynamics. Investments transgressed the boundaries of single industries and new industries emerged. One important feature of the regional production system was cross-sectional knowledge transfer; a second was institutions supportive to this process. |
| Keywords: | Germany, Industrialization, Factory System, Joint-Stock-Companies, Development |
| JEL: | N63 N94 O14 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55523&r=sbm |
| By: | Misunova Hudakova, Ivana; Misun, Juraj |
| Abstract: | Companies that are exposed to an uncertain changing business environment must be able to adapt and change in order to achieve some compliance with the subject of business carried out and the objectives with the ambient conditions. Also these conditions can be a source of threats for small and medium-sized enterprises. In this context, we emphasize the adaptability of the enterprise. It is the active joining of resolving the conflict between the business entity and its environment. Signs of this joining we follow through changes as a transition of stability on one level to a whole new level of stability, which can cause a change in the company's original strategy to a new strategy. |
| Keywords: | adaptability, awareness, flexibility, value chain, the response. |
| JEL: | M21 M29 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55442&r=sbm |
| By: | Infelise,Federico |
| Abstract: | This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools. |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:eps:ecmiwp:9188&r=sbm |
| By: | Jacques Arlotto; Jean-Michel Sahut; Frédéric Teulon |
| Abstract: | The concept of "Business Model" emerged from the mid 90s with the rise of eCommerce and more generally of the "new economy". The mutations responsible of its development are technological, economic and regulatory. Then, the concept of business model was built by successive additions and sedimentation of many papers, reports and books that came to define its meaning over time. In addition to its ability to explain why some firms perform better than others, this concept opens up many ways and applications for entrepreneurship research. |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-261&r=sbm |
| By: | Louis-Etienne Dubois (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris, HEC Montréal - HEC MONTRÉAL); Pascal Le Masson (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Benoît Weil (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Patrick Cohendet (HEC Montréal - HEC MONTRÉAL) |
| Abstract: | Amongst the plethora of methods that have been developed over the years to involve users, suppliers, buyers or other stakeholders in the design of new objects, co-design has been advertised as a way to generate innovation in a more efficient and more inclusive manner. Yet, empirical evidence that demonstrates its innovativeness is still hard to come by. Moreover, the fact that co-design workshops are gatherings of participants with little design credentials and often no prior relationships raises serious doubts on its potential to generate novelty. In this paper1, we study the contextual elements of 21 workshops in order to better understand what codesign really yields in terms of design outputs and relational outcomes. Our data suggest that codesign emerges in crisis situations and that it is best used as a two-time intervention. We also suggest using collaborative design activities as a way to bring about change through innovation. |
| Keywords: | co-design, design, innovation, collaboration, change management |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00981108&r=sbm |