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on Small Business Management |
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Issue of 2019‒09‒02
thirteen papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Thomä, Jörg; Zimmermann, Volker |
| Abstract: | In the present paper, various groups of innovating German SMEs are empirically identified according to their use (or non-use) of in-house R&D, their reliance on external sources of knowledge, and the degree of internal interactive learning that they employ.In order to account for non-R&D innovation activities, we apply the STI/DUI concept as a theoretical starting point. This distinguishes between (1) the science, technology, innovation (STI) mode with its strong emphasis on formal processes of in-house R&D and (2) the doing, using, interacting (DUI) mode with its focus on experience-based knowledge and interactive learning. On this basis, the empirical results indicate that three groups associated with different modes of learning and innovation exist within the German SME sector: the supplier-dependent DUI group, the customer-oriented DUI group and the STI/DUI group. The corresponding findings confirm that SMEs innovate differently depending on the specificities of their knowledge environments. In order to evaluate this in terms of innovation policy, we examine how these learning modes among innovating SMEs relate to overall company performance. Our main observation is that each learning mode is likely to positively affect performance, at least to some degree. There isno differ-ence in economic performance between the three learning modes as long as non-high-growth SMEs are considered. Hence, in large parts of the SME sector, it is economically rational to choose a non-R&D-oriented mode of learning and innovation. The paper con-cludes with some policy implications of these findings. |
| Keywords: | Modes of learning,R&D,Non-R&D innovation,Interactive learning,SMEs |
| JEL: | M21 O32 O38 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:172019&r=all |
| By: | LAMIA SABOUR ALAOUI (Economics and Business, SETTAT University) |
| Abstract: | In Morocco the concept of corporate social responsibility has become present in academic research as in the business world. Each company must integrate in its strategy, the implementation of a societal responsibility approach to attract new national and international market. The big Moroccan companies are aware of the importance of this trend, but this notion is still new for Moroccan SME (Small and Medium Enterprise). The purpose of this article is to determine societal responsibility practices in Morocco and in SMEs (Small and Medium Enterprises) in the province of El Jadida in particular. SMEs (Small and Medium Enterprises) in this region have an important role in national industrial development. The first part is devoted to defending social responsibility in general and in Morocco in particular. Next, we identify the social responsibility practices that differentiate the Moroccan small and medium enterprise. For the third part we will present the research methodology and show the results obtained from the survey. |
| Keywords: | Corporate Social Responsibility, SME, Development, Moroccan companies, The province of El Jadida |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:8511053&r=all |
| By: | Akcigit, Ufuk; Dinlersoz, Emin; Greenwood, Jeremy; Penciakova, Veronika |
| Abstract: | Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC-backing increases a startup's likelihood of reaching the right tails of the firm size and innovation distributions. Furthermore, outcomes are better for startups matched with more experienced venture capitalists. An endogenous growth model, where venture capitalists provide both expertise and financing for business startups, is constructed to match these facts. The presence of venture capital, the degree of assortative matching between startups and financiers, and the taxation of VC-backed startups matter significantly for growth. |
| Keywords: | Endogenous Growth; mergers and acquisitions; R&D; venture capital |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13932&r=all |
| By: | Enrietti, Aldo; Geuna, Aldo; Nava, Consuelo R.; Patrucco, Pier Paolo (University of Turin) |
| Abstract: | By discussing the relation between the traditional Marshallian/Jacobian approach and Klepper’s concept of spinoffs and their role, this paper tries to explain the early genesis and later evolution of the Italian automotive industry, based on the for mation of the Torino’s car cluster from the late nineteenth century. Historical analysis and econometric models are integrated to identify key factors that enabled the creation and success of the automotive industry in Turin. Specifically, we investigate agglomeration economies, the role of spinoffs and institutional factors such as the level and importance of local education. Based on original archival research, we built a new database of all Italian automobile companies. Replication of Klepper’s (2007) and Boschma and Wenting’s (2007) models shows no particular influence of the Turin cluster and no early entry advantages. Our model, which integrates and extends previous contributions, confirms the existence of a spinoffs effect, and in particular the positive effect of inherited technical skills embedded in pilots. We find support also, for positive agglomeration effects at the regional level and inter industry externalities from aeronautics, a metropolitan cluster effect and the significance of metropolitan education. |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201901&r=all |
| By: | Schulte, Reinhard |
| Abstract: | Investment trajectories of new enterprises are a largely neglected but important issue of new firms' business behavior. This paper debuts in showing robust evidence of new venture investment time patterns by using investment time series of 4.733 new businesses. Based on a fixed effects nonlinear panel regression approach, the study models the trajectory of new venture asset acquisition in the first years after market entry. The results unveil durations and levels of investment patterns. Showing a first investment peak at market entry and a second peak years later, an initial new venture investment cycle is bimodal. Its peak-to-peak duration yields approximately nine years on average. New venture investment can be staggered into three stages, namely an initial, a plateau, and a replacement and expansion stage. |
| Keywords: | new ventures,start-up,investment pattern,investment trajectory,fixed effects model,panel data |
| JEL: | D92 G31 L25 M13 M21 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:luebgf:13&r=all |
| By: | Nergiz Dincer (Department of Economics, TED University); Ayça Tekin-Koru (Department of Economics, TED University) |
| Abstract: | The main aim of the current paper is to investigate the productivity dynamics of Turkey during the Adalet ve Kalkinma Partisi (AKP) era to contribute to the ongoing discussions of long-term economic growth of the country, using a unique data set and firm-level granular productivity analysis. Furthermore, the deindustrialization of Turkey is scrutinized as a complement to the productivity analysis. Among a plethora of results, the following three are the most important ones in terms of their policy implications: (i) The aggregate productivity figures underestimated the productivity improvements in the manufacturing sector and overestimated the productivity losses in the services sector. (ii) The productivity growth of manufacturing sector in Turkey has been positive yet evolving towards medium-low tech manufacturing which displays the lowest productivity growth among all manufacturing sectors. (iii) While the surviving firms in the Turkish manufacturing sector have increased their own productivity in the AKP era, in the services sector surviving firms have a negative contribution to aggregate productivity growth. |
| Date: | 2019–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1318&r=all |
| By: | Klaesson, Johan (Centre of Entrepreneurship and Spatial Economics (CEnSE) at Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)); Johansson, Börje (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | During the period 2007-2016 in Sweden we can observe how the share of business (producer) services gradually increases as an aggregate phenomenon. The service categories are partitioned into ordinary (OBS), knowledge-intensive (KIBS), and very knowledge-intensive business services (VKIBS). The growth is faster in local and regional economies that have large demand potentials. Other sectors grow faster when located in places where the business-service supply potential is larger. We outline a theoretical framework where service suppliers locate their capacity in response to the size of the service-demand potential, whereas other sectors of the economy, locate and expand in response to the service-supply potentials, for each of the three service categories OBS-services, KIBS-services and VKIBS-services. These model alternatives are assessed in a series of dynamic econometric exercises. A major assumption is that business-service firms operate in a context of monopolistic competition, which means that when the capacity to supply and deliver business services increases, then the number of service varieties also increases, and thus adds to the multiplicity of varieties in local economies (municipalities) that have a large demand potential. In the model framework the service suppliers are selling innovation-relevant information to customer firms in a region, and thereby also unintentionally spread information and knowledge among firms in the region. In this way, business-service suppliers become knowledge providers and important actors in the relevant regional innovation system. |
| Keywords: | Random choice; business services; demand and supply potentials; co-evolution |
| JEL: | C23 L84 R11 R12 R30 |
| Date: | 2019–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0480&r=all |
| By: | Francesca Di Iorio (Università di Napoli Federico II); Maria Letizia Giorgietti (Università di Milano) |
| Abstract: | Recent literature on the role of patents in shaping competition between incumbents and new entrants shows mixed evidence, as patents can discourage entry into markets but may also encourage potential entrants by increasing profitability from research and development. The increasing use of patents as strategic weapons motivates this investigation of the impact of innovation on competition. In a case study of US pharmaceutical cardiovascular submarkets over the period 1988-1998, we use a panel probit model to study the impact of a firm’s patents and rivals’ patents in the firm’s decision to launch new products. Our results show that the number of a firm’s lagged patents encourages the firm’s entry with new products, while rivals’ initial stock of patents discourages entry, but more recent patents promote entry by opening new technological opportunities. |
| Keywords: | Entry, Patents, Panel data, Probit model, Submarkets |
| JEL: | L11 L65 C11 C23 C25 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:pav:demwpp:demwp0169&r=all |
| By: | Fanti, Lucrezia; Guarascio, Dario; Tubiana, Matteo |
| Abstract: | Relying on a unique integrated database, this work explores the relationship between labour productivity, on one side; intensity and characteristics of companies’ skills need and degree of skill mismatch, on the other. The analysis focuses on a representative sample of Italian limited liability companies observed during the years 2012, 2014 and 2017. First, companies acknowledging the need to update their knowledge base display a higher productivity vis-à-vis other firms. Second, when it comes to the skill need distinguished by competence/knowledge domains (management, STEM, social and soft skills, technical operatives and humanities) it emerges that companies looking for technical operative and social skills show lower labour productivity as compared to other firms. On the contrary, companies characterized by a need in managerial, STEM or humanities-related skills show higher productivity. Third, the ability to match the skill need via new hiring is always positively correlated with firms’ productivity. This result is confirmed across all the adopted specifications. |
| Keywords: | labour productivity, skill mismatch, firm-level heterogeneity, knowledge- base, organizational capabilities |
| JEL: | D22 D80 J24 |
| Date: | 2019–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95694&r=all |
| By: | Hsieh, Chang-Tai; Rossi-Hansberg, Esteban |
| Abstract: | The rise in national industry concentration in the US between 1977 and 2013 is driven by a new industrial revolution in three broad non-traded sectors: services, retail, and wholesale. Sectors where national concentration is rising have increased their share of employment, and the expansion is entirely driven by the number of local markets served by firms. Firm employment per market has either increased slightly at the MSA level, or decreased substantially at the county or establishment levels. In industries with increasing concentration, the expansion into more markets is more pronounced for the top 10\% firms, but is present for the bottom 90\% as well. These trends have not been accompanied by economy-wide concentration. Top U.S. firms are increasingly specialized in sectors with rising industry concentration, but their aggregate employment share has remained roughly stable. We argue that these facts are consistent with the availability of a new set of fixed-cost technologies that enable adopters to produce at lower marginal costs in all markets. We present a simple model of firm size and market entry to describe the menu of new technologies and trace its implications. |
| JEL: | E23 E24 L16 L22 R12 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13797&r=all |
| By: | Idrees Khawaja (Air University, Islamabad); Nasir Iqbal (Pakistan Institute of Development Economics, Islamabad) |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2019:160&r=all |
| By: | Lucrezia Fanti; Dario Guarascio; Matteo Tubiana |
| Abstract: | Relying on a unique integrated database, this work explores the relationship between labour productivity, on one side; intensity and characteristics of companies' skills need and degree of skill mismatch, on the other. The analysis focuses on a representative sample of Italian limited liability companies observed during the years 2012, 2014 and 2017. First, companies acknowledging the need to update their knowledge base display a higher productivity vis-a-vis other firms. Second, when it comes to the skill need distinguished by competence/knowledge domains (management, STEM, social and soft skills, technical operatives and humanities) it emerges that companies looking for technical operative and social skills show lower labour productivity as compared to other firms. On the contrary, companies characterized by a need in managerial, STEM or humanities-related skills show higher productivity. Third, the ability to match the skill need via new hiring is always positively correlated with firmsù productivity. This result is confirmed across all the adopted specifications. |
| Keywords: | labour productivity; skill mismatch; firm-level heterogeneity; knowledge-base; organizational capabilities. |
| Date: | 2019–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/30&r=all |
| By: | Liu, Yi; Tan, Yu; Fang, Yu |
| Abstract: | This paper studies the impact of innovation spillover and licensing on optimal ex-post privatization policies by involving an exogenous R&D activity in a partial-equilibrium international duopoly setting. By assuming a domestic public firm is relatively inefficient compared to its foreign private rival, we characterize and discuss optimal privatization policies under both foreign private and domestic public innovation. The theoretical results suggest that foreign private (domestic public) innovation, including both spillover and licensing, reduces (increases) the optimal degree of ex-post privatization. In addition, innovation spillover and licensing have the same impact direction on privatization policies. The numerical evidence supports these theoretical findings. |
| Keywords: | Spillover, Licensing, Ex-post Privatization, International Duopoly |
| JEL: | F13 H4 L13 L24 L33 |
| Date: | 2019–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95467&r=all |