|
on Small Business Management |
|
Issue of 2018‒03‒19
fourteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Comin, Diego (Dartmouth College & CEPR); Licht, Georg (ZEW); Pellens, Maikel (ZEW & KU Leuven); Schubert, Torben (CIRCLE & Fraunhofer ISI) |
| Abstract: | Among available policy levers to boost innovation, investment in applied research organisations has received the least attention. In this paper, we analyze the case of the Fraunhofer Society, the largest public applied research organization in Germany. We analyze whether project interaction with Fraunhofer affect the performance and strategic orientation of firms. To that end, we assemble a unique dataset based on the confidential Fraunhofer-internal project management system and merge it with the German contribution to the Community Innovation Survey (CIS), which contains panel information on firm performance. Using instrumental variables that exploit the scale heteroscedasticity of the independent variable (Lewbel, 2012), we identify the causal effects of Fraunhofer interactions on firm performance and strategies. We find a strong, positive effect of project interaction on turnover and productivity growth. We also provide evidence that a major driver of the positive performance effects is the firms increased share of sales from new products and an increase in the share of workers with tertiary education. More detailed analyses reveal, amongst others that the performance effects become stronger the more often firms interact with Fraunhofer and that interactions aiming at generation of technology have a stronger effect than interactions aiming merely at the implementation of existing technologies. |
| Keywords: | Innovation; R&D; diffusion; applied research; Fraunhofer |
| JEL: | O33 O38 |
| Date: | 2018–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2018_007&r=sbm |
| By: | Armanda Cetrulo; Valeria Cirillo; Dario Guarascio |
| Abstract: | In the last decades, labour flexibility has been introduced all across Europe with the aim of spurring jobs and productivity. This work explores the link between the use of temporary employment and the propensity to introduce product innovations by firms. The analysis performed at the sectoral level combines information on innovation, economic performance and employment for five major European economies observed over the period 1998-2012. Taking into account the variety of technological patterns, the authors find that industries using temporary employment more intensively are characterized by a weak product innovation propensity. The negative correlation between temporary employment and innovation is stronger in medium and high-tech sectors identified alternatively by Peneder classification and by the concentration of firms’ intangible assets proxing different Schumpeterian regimes of accumulation. |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ast:wpaper:0032&r=sbm |
| By: | Johannes van der Pol |
| Abstract: | The aim of this paper is to show how firm-level partner selection strategies impact the structure a of collaboration network. The analysis is performed in three stages. A first stage identifies how partners select their collaborators, a second stage shows how these decisions result in clusters, and a final stage studies the global network structure that emerges from the interconnection of these clusters. In order to highlight the importance of the sectors’ influence, the analysis is performed on the French Aerospace and the French Biotech collaboration networks. Results show that the firm-level strategies are the same in both sectors while the resulting global network structure is different (core-periphery structure with small-world characteristics for the aerospace network and no particular structure for the biotech sector). The difference in the global network structure can be explained by sectorial characteristics. These differences define the manner in which knowledge flows through the network. |
| Keywords: | SNA; Sectoral analysis; Collaboration network; Biotechnology; Aerospace; ERGM; Innovation |
| JEL: | L25 C23 D85 L14 C20 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2018-02&r=sbm |
| By: | Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Giovanni Marin (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo") |
| Abstract: | TThis paper evaluates the effect of host-country environmental policy stringency on the offshoring of environmental patents for 2000 top world R&D performers. It is shown that a more stringent environmental regulation triggers both the extensive and intensive margin of patent offshoring in the field of environmental technologies. Results are robust to various different specifications, alternative definitions of innovation offshoring and of regulation restrictions, and to the consideration of possible endogeneity of regulation. It is suggested inter alia that R&D subsidies and non-market based regulatory measures are more important than market-based instruments as drivers of cross-border environmental innovation |
| Keywords: | MNE, environmental policy, patent data |
| JEL: | F10 F23 O33 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:18_03&r=sbm |
| By: | Santiago Lago-Peñas; Elena Rivo-López; Alberto Vaquero-García; Mónica Villanueva-Villar |
| Abstract: | This article analyzes if, on average, choices made by family businesses regarding job stability in bad times are different to those made by non-family firms. Moreover, we try to elucidate if this potential difference also depends on the family generation in charge. Our analysis relies upon a sample of 55,091 Spanish firms, Spain being one of the countries that suffered the greatest impact of the so-called “Great Recession”. We find that at times of crisis, family businesses do maintain jobs in a higher extent than non-family businesses, and that this effect is especially intense when the first generation is in charge. |
| Keywords: | family business, employment, generation, crisis, Socioemotional Wealth. |
| JEL: | M14 M41 M42 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpfami:1801&r=sbm |
| By: | Hatzigeorgiou, Andreas (The Ratio Institute); Lodefalk, Magnus (The Ratio Institute and Örebro University) |
| Abstract: | Many countries display remarkably high dependence on services for production and employment that is incommensurate with their level of services exports. One explanation is that trade in services is more sensitive to informal and behind-the-border trade barriers such as information friction and inadequate access to foreign networks. Immigrant employees may provide access to and appeal in foreign markets through their knowledge of—and contacts in—their former home countries. We develop a heterogeneous firm framework to guide our empirical analysis and draw on new employer-employee data for nearly 30,000 Swedish firms during the period 1998-2007. The results suggest that immigrant employees facilitate services exports. Hiring one additional foreign-born worker can increase services exports by approximately 2.5 percent, on average, with a stronger effect found for skilled and newly arrived immigrants. |
| Keywords: | Trade; firms; migration; services; networks |
| JEL: | D80 F10 F20 |
| Date: | 2017–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0298&r=sbm |
| By: | Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); Luan, Fushu (Division of Economics, Xi'an Jiaotong-Liverpool University); Regis, Paulo José (Division of Economics, Xi'an Jiaotong-Liverpool University) |
| Abstract: | We contribute to explore the roles of sub-national leaders and institutional environment in shaping urban innovation in China. We adopt a dynamic production function framework using a panel dataset comprising 280 prefecture cities during 2001-2014. We find that knowledge and education boost local innovative outputs and has positive spillover effects; the externalities of domestic and foreign capital are limited to local investments. Controlling for the basic production inputs, our analysis unveils a clear and significant role of meritocracy with regional dimension in sharpening the competitive advantage of city innovativeness measured by patents applications. Party secretary competition intensity and tenure encourages innovation while city mayor turnover rate has a negative effect. Marketization intensity also positively links with urban innovation. Compared with diversity and specialization, competitive industrial structures bring more creative elements into regional knowledge and idea production. |
| Keywords: | Innovation, Meritocracy, Institutions, Prefecture-Level City, China |
| JEL: | H11 R11 O30 P26 C33 |
| Date: | 2018–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2018-03&r=sbm |
| By: | Fu, Kun (Loughborough University London); Larsson, Anne-Sophie (The Ratio Institute); Wennberg, Karl (Linköping University and the Ratio Institute) |
| Abstract: | We investigate the impact of country-level labour market regulations on the re-entry decision of experienced entrepreneurs, whereby they become habitual entrepreneurs. Multilevel logit models on entry decisions among 15,709 individuals in 29 European countries show that labour market regulations have a positive influence on the decision to re-enter into entrepreneurship. This positive impact is stronger among individuals holding wage jobs at the time of re-entry compared to those that do not. Our results indicate that novice and habitual entrepreneurs may respond very differently to labour market rigidity. We discuss and provide tentative explanations for these differences, and outline potential policy implications. |
| Keywords: | Habitual entrepreneurship; employment; labour market rigidity; institutional context; multilevel modelling |
| JEL: | J24 J41 K31 L26 |
| Date: | 2017–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0297&r=sbm |
| By: | Giebel, Marek; Kraft, Kornelius |
| Abstract: | We analyze the causal effect of the credit supply shock to banks induced by interbank market disruptions in the recent financial crisis 2008/2009 on their business customers' innovation activity. Using a matched bank-firm data set for Germany, we find that having relations with a more severely affected bank seriously hampers firms' current innovation activities due to funding shortages. Furthermore, we find that firms with a relationship to a less severely affected bank are more likely to initiate new product and process innovations and to reallocate human resources to innovation during the financial crisis. |
| Keywords: | financing of innovations,credit supply,financial crisis,innovative activities |
| JEL: | G01 G21 G30 O16 O30 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:18011&r=sbm |
| By: | Carsten Fink; Bronwyn H. Hall; Christian Helmers |
| Abstract: | We analyze the use of intellectual property (IP) by firms in Chile over the decade 1995-2005 as the then middle-income country experienced rapid economic growth of 4.7 percent per year. We use a novel dataset that contains a combination of detailed firm-level information from the annual manufacturing census, information on firms’ innovative activities from Chile’s innovation surveys, and firms’ patent, industrial design, and trademark filings with the Chilean IP office. We use these data to look at how IP use by companies has changed over time and analyze the determinants of IP use, in particular first-time use. We find that sales growth prompts first-time use of patents and trademarks, though such use does not change the growth trajectory of firms nor does it improve their total factor productivity. We also find that trademark use is associated with new-to-the-world product innovation, which suggests that branding may be an important mechanism to appropriate returns to innovation in a middle-income country like Chile. |
| JEL: | O12 O34 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24348&r=sbm |
| By: | João Pereira dos Santos (Nova School of Business and Economics); José Tavares (Nova School of Business and Economics and Centre for Economic Policy Research (CEPR)) |
| Abstract: | We take advantage of a quasi-natural experiment to assess the impact of European funds on firm dynamics in regions that, while not having their status changed, saw their neighbours increased access to European funds. Causality is established in a difference-in-differences intention to treat setting, using a rich dataset that considers the universe of Portuguese mainland municipalities from 2003 to 2010, and controlling for socio-economic, political and demographic variables. Our findings suggest a causal impact of between 1 and 2 percent in private sector firms´ entry and net entry rates, while we find no impact on firm exit rates. We consider time and space placebos to assure the reliability of our estimates. Our findings suggest that EU regional funds have a greater impact in times of distress, such as the world economic crisis, as far as entry rates are concerned. The analysis of the cross-section of firm demonstrates it is domestic owned micro firms in the primary and tertiary sectors that are most impacted by regional funds. |
| Keywords: | quasi-natural experiment, European funds, firm creation; municipalities |
| JEL: | C21 R10 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0099&r=sbm |
| By: | Dewit, Gerda; Görg, Holger; Temouri, Yama |
| Abstract: | We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws in the current production location discourage firms' relocation abroad. While larger, more productive firms and firms with higher labour intensities have, ceteris paribus, higher propensities to relocate, they also face higher exit barriers if the country from which they consider relocating has strict employment protection laws. Our predictions are supported empirically, using firm level data for 28 OECD countries. |
| Keywords: | Employment Protection,Relocation,Multinational Enterprises |
| JEL: | F23 L23 J88 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2102&r=sbm |
| By: | Astrid Rudyanto (Department of Accountancy, Trisakti School of Management Author-2-Name: Dipta Daniswari Author-2-Workplace-Name: Trisakti School of Management, Jl. Kyai Tapa No 20, 11440, Jakarta, Indonesia Author-3-Name: Yuli Oktaviani Author-3-Workplace-Name: Trisakti School of Management, Jl. Kyai Tapa No 20, 11440, Jakarta, Indonesia) |
| Abstract: | Objective –The emergence of the ASEAN Single Window has triggered the need for higher audit quality in ASEAN countries, including Indonesia. A recent study conducted in Indonesia reveals that the reputation of auditing firms, as rated by clients and users, and auditor's competence, as rated by the auditor, are the primary determinants of audit quality. The purpose of this study is to analyze whether the reputation or competence of an auditor affects audit quality, within manufacturing companies in Indonesia. Methodology/Technique –This paper contributes to the creation of new measurements for auditor capability, by highlighting empirical evidence concerning the determinants of audit quality in Indonesia. Findings – By using discretionary accrual as the inverse determinant of audit quality, the result show that financial statements audited by reputable auditing firms contain the same discretionary accruals as those audited by other firms. The results further demonstrate that auditor capability does not affect audit quality. Audit quality in Indonesia is therefore not determined by firm reputation or auditor capability. Hence, it is important to search for new determinants of audit quality. Research Limitations/Implications – The limitation of this research is the low number of reputable audit firms and specialized auditors used by the sample firms, which lead to the exclusion of numerous controlled variables that may be integral when explaining audit quality. Future studies may use other sample firms and use additional controlled variables, to further explain audit quality. |
| Keywords: | Audit Quality; Discretionary Accrual; Audit Firm Reputation; Auditor Capability |
| JEL: | M40 M42 |
| Date: | 2017–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr147&r=sbm |
| By: | Josh Ederington (University of Kentucky); Georg Goetz (University of Giessen) |
| Abstract: | We develop a model in which ex ante identical firms make endogenous entry and technology adoption decisions. We show that this model is capable of matching the stylized facts in which entry and adoption are dispersed over time and that, in many industries, it is the newest firms which are the most likely to exhibit high productivity growth and adopt new innovations (i.e., leapfrogging). We then derive the characteristics of those industries where such leapfrogging is likely to occur and show that leapfrogging can induce reverse preemption (i.e., forward-looking incumbent firms delaying entry and adoption due to leapfrogging behavior). As an application, we demonstrate how, in an industry conducive to leapfrogging, research subsidies can actually reduce short-run consumer welfare by discouraging firms from entering the market with a basic technology. |
| Keywords: | entry, technology adoption |
| JEL: | L11 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201811&r=sbm |