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on Small Business Management |
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Issue of 2024‒02‒26
twenty-one papers chosen by |
| By: | Bourjila Mountacer (UIT - Université Ibn Tofaïl); Ayoub El Bahi (UIT - Université Ibn Tofaïl) |
| Abstract: | This research investigates the impact of technological innovation adoption on the organizational culture of Small and Medium-sized Enterprises (SMEs) in Morocco. The central research question explores how the adoption of technological innovation influences cultural dynamics within Moroccan SMEs. Employing a questionnaire-based methodology with 183 responses, the study aims to shed light on the intricate relationship between technological innovation and organizational culture in the context of Moroccan SMEs. The study reveals two key findings. Firstly, it is observed that the adoption of technological innovation serves as a robust driver to stimulate a culture of efficiency within the surveyed SMEs. Secondly, the research underscores the emergence of tensions within Moroccan SMEs arising from resistance to technological change. However, the principal limitation of this study is the restricted number of respondents, which may limit the generalizability of our findings to the broader landscape of Moroccan SMEs. Despite this limitation, the insights gleaned offer valuable perspectives and a foundation for future research to further explore the nuanced interplay between technological innovation and organizational culture in Moroccan SMEs. In summary, this study contributes valuable insights into the nexus between technological innovation and organizational culture within Moroccan SMEs. The findings underscore the dual nature of this relationship, acting as both a catalyst for efficiency-driven cultural enhancement and a source of tension due to resistance to change. The implications of these findings extend beyond the confines of individual SMEs, offering guidance for policymakers, industry practitioners, and scholars seeking to understand and facilitate the positive integration of technological innovation in diverse organizational settings. Keywords: Technological innovation; Organizational culture; Moroccan SMEs. |
| Keywords: | Technological innovation, Organizational culture, Moroccan SMEs |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04401627&r=sbm |
| By: | Antonio Rafael Ramos-Rodriguez; Jose Aurelio Medina-Garrido; Jose Ruiz-Navarro |
| Abstract: | Purpose: Understanding the formation of entrepreneurial intentions is critical, given that it is the first step in the entrepreneurial process. Although entrepreneurial intention has been extensively studied, little attention has been paid on the intended timing of future entrepreneurial projects. This paper analyses entrepreneurial intentions among final-year university students after graduation in terms of the timeframe to start a business. Potentially rapid entrepreneurs and entrepreneurs-in-waiting were compared using the Theory of Planned Behaviour (TPB). Methodology: A variance-based structural equation modelling approach was used for the sample of 851 final-year university students with entrepreneurial intentions who participated in GUESSS project. Findings: The results obtained contribute to the understanding of how entrepreneurial intentions are formed, particularly, how intended timing plays a moderating role in the relationships of the variables of the theoretical model of TPB. This study provides empirical evidence that significant differences exist between potential rapid entrepreneurs and entrepreneurs-in-waiting. Practical implications: The findings of this study have practical implications for entrepreneurship education, and they can help policy makers develop more effective policies and programs to promote entrepreneurship. Originality: Intention-based models have traditionally examined the intent -- but not the timing -- of new venture creation. However, the time elapsed between the formation of the entrepreneurial intent and the identification of a business opportunity can vary considerably. Therefore, analysing the moderating role of intended timing could be relevant to entrepreneurial intention research. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.13682&r=sbm |
| By: | NIREI Makoto; OIKAWA Koki; OROKU Masahiro |
| Abstract: | Patents applied by private firms occasionally cite scientific papers. We regard these citations as a signal that the research project of the applying firms involves basic research, and examine the relationship between basic research and firm performance. Firms conducting basic research are more likely to earn higher profit margins, while no monotonic relationship is observed between basic research and sales size. We then construct an endogenous growth model incorporating the basic research investment by heterogeneous firms. Firms' decisions regarding basic research depend on firm size, the necessity for basic research for developing their products, and the degree of knowledge spillover from external basic research results. Quantitative analysis using this model reveals how basic research spillover effects impact economic growth, and how declining R&D efficiency, which has been reported in the literature in recent years, leads to lower growth. Furthermore, we compare public basic research investment with basic research subsidies and demonstrate that the latter is more efficient as a growth policy. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24013&r=sbm |
| By: | Miguel Angel Montanes-Del-Rio; Jose Aurelio Medina-Garrido |
| Abstract: | Tourism's increasing share of Gross Domestic Product throughout the world, its impact on employment and its continuous growth justifies the interest it raises amongst entrepreneurs and public authorities. However, this growth coexists with intense competition; as a result of which, tourism companies must continuously innovate in order to survive and grow. This is evident in the diversification of tourism products and destinations, the improvement of business processes and the incorporation of new technologies for intermediation, amongst other examples. This paper expounds on the factors that explain the propensity for innovation amongst tourism entrepreneurs and it may help governments to promote innovation that is based on those determining factors. The hypotheses are tested using a logistic regression on 699 international tourism entrepreneurs, taken from the 2014 Global Adult Population Survey of the Global Entrepreneurship Monitor project. The propensity for innovation amongst tourism entrepreneurs has a statistically significant relationship to gender, age, level of education and informal investments in previous businesses. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.13679&r=sbm |
| By: | Amiti, Mary; Duprez, Cedric; Konings, Jozef; Van Reenen, John |
| Abstract: | Using firm-to-firm transactions, we show that starting to supply a "superstar" firm (large domestic firms, exporters and multinationals) boosts productivity by 8% in the medium-run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology-intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status. |
| Keywords: | productivity; FDI; spillovers; POID |
| JEL: | F23 O30 F21 |
| Date: | 2023–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121331&r=sbm |
| By: | Kaufmann, Matteo; Schiereck, Dirk |
| Abstract: | We investigate the effect of corporate innovation on mergers and acquisitions (M&A). Using a sample of 786 public-to-public transactions in the U.S. technology sector, we show that acquirers are willing to pay higher premiums for more innovative target firms. This effect is amplified by the acquirer's own level of innovativeness as more innovative acquirers are willing to pay higher premiums for innovative targets than non-innovative acquirers. We further document significant strategic reactions of rival firms. In the aftermath of the M&A, all acquirer rivals increase their R&D spending but the effect is more pronounced for innovative rivals than for non-innovative ones. Innovative acquirer rivals are also more likely to acquire a technology firm in the aftermath of their competitor's M&A announcement than their non-innovative peers. The similarity between acquirers and their rivals shrinks in the post-acquisition period, which may be caused by rival firms extending the breadth of their technological search in response to the acquisition. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:142308&r=sbm |
| By: | Gonzalo Nunez-Chaim; Henry G. Overman; Capucine Riom |
| Abstract: | We evaluate the impact of the UK's Growth Vouchers Programme, which offered subsidised business advice to 15, 207 randomly selected small and medium size enterprises. Using administrative and survey data, we show that the programme increased turnover by 8.2% but only in the short-term and potentially at the expense of non-supported firms. We find that subsidised advice appears to improve firms' capabilities and practices in a way that is consistent with the increase in turnover. We also demonstrate that propensity score matching introduces a sizeable upward bias to estimated effects on turnover and employment and that this bias grows over time. |
| Keywords: | firm performance, enterprise growth, entrepreneurship |
| Date: | 2024–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1977&r=sbm |
| By: | Bénédicte Aldebert (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Rani Jeanne Dang (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Amandine Maus (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | We often talk about David versus Goliath when referring to the relationships between startups and large corporations. Yet David and Goliath find mutual benefits in working together, as evidenced by the continuous growth of startup-large corporation alliances, 87% in 2019 compared to 79% in 2017 (according to Raise and Bain & Company, 2019). The innovative capacity of startups, combined with their speed of execution, indeed prove to be significant assets for large corporations, while the latter provide financial, material, and brand support for the startup. The strategic, technological, and economic interests in terms of innovation have been quite extensively studied in the literature, but not from the perspective of the transfer of legitimacy from one to the other of these two types of companies |
| Abstract: | On parle souvent de David contre Goliath lorsque l'on fait référence aux relations qu'entretiennent les startup et les grandes entreprises (GE). Pourtant David et Goliath trouvent des avantages mutuels à travailler ensemble à en croire la progression continue des alliances startup-GE, 87% en 2019 contre 79% en 2017 (selon Raise et Bain & Company, 2019). La capacité d'innovation des startups, couplée à leur rapidité d'exécution se révèlent en effet être des atouts de taille pour les grandes entreprises tandis que les grandes entreprises apportent des soutiens financiers, matériel et de notoriété pour la startup. Les intérêts stratégiques, technologiques et économiques en termes d'innovation ont été assez largement étudiés dans la littérature, mais pas sous l'angle du transfert de légitimité de l'une à l'autre de ces deux entreprises. Notre recherche vise donc à mieux comprendre les relations entre startup deeptech et grandes entreprises sous l'angle de la légitimité. Nous nous intéresserons ainsi à des startups particulières, les deeptech, considérées comme garantes de l'avenir et du rayonnement de la performance économique française. Une étude de cas, portant attention aux mécanismes de légitimation comme levier du transfert de légitimité, est réalisée pour comparer les apports de ces organisations à leur partenaire. Une contribution de ce travail est d'adapter le cadre théorique de la légitimité à une compréhension plus approfondie du management de l'innovation dans la relation startup-grande entreprise. |
| Keywords: | Transfert de légitimité, Legitimité, Start-up deeptech, Grand groupe |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04390033&r=sbm |
| By: | Cahuc, Pierre (Sciences Po, Paris); Palladino, Marco G. (Banque de France) |
| Abstract: | This paper provides a review of the existing literature on the effects of employment protection legislation (EPL) on job allocation across industries, firms, and workers, and its implications for innovation and economic growth. We analyze empirical studies to assess how EPL influences resource allocation, firm dynamics, and labor market segmentation. The review highlights the heterogeneous effects of EPL on different firms and workers' groups. Additionally, we discuss the channels identified in the structural literature through which EPL-induced job reallocation affects productivity, innovation, and overall growth. While existing evidence demonstrates the significant influence of EPL on all these outcomes, further quantification of these effects remains a research challenge. |
| Keywords: | job protection, job allocation, economic growth, productivity, innovation |
| JEL: | J23 O47 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16747&r=sbm |
| By: | Aydin, Deniz; Kim, Olivia S. |
| Abstract: | Firms with ample financial slack are unconstrained... or are they? In a field experiment that randomly expands debt capacity on business credit lines, treated small-and-medium enterprises (SMEs) draw down 35 cents on the dollar of expanded debt capacity in the short-run and 55 cents in the long-run despite having debt levels far below their borrowing limit before the intervention. SMEs direct new borrowing to financing investment gradually over time and do not exhibit a measurable impact on delinquencies. Heterogeneity analysis by the risk of being at the credit line limit supports the SME motive to preserve financial flexibility. |
| Keywords: | field experiment, RCT, finance, investment, debt structure |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:281672&r=sbm |
| By: | Antonio Rafael Ramos-Rodriguez; Salustiano Martinez-Fierro; Jose Aurelio Medina-Garrido; Jose Ruiz-Navarro |
| Abstract: | In the past 15 years, two international observatories have been intensively studying entrepreneurship using empirical studies with different methodologies: GEM and PSED. Both projects have generated a considerable volume of scientific production, and their intellectual structures are worth analyzing. The current work is an exploratory study of the knowledge base of the articles generated by each of these two observatories and published in prestigious journals. The value added of this work lies in its novel characterization of the intellectual structure of entrepreneurship according to the academic production of these two initiatives. The results may be of interest to the managers and members of these observatories, as well as to academics, researchers, sponsors and policymakers interested in entrepreneurship. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.13684&r=sbm |
| By: | Mircea Epure; Victor Martin-Sanchez; Sebastian Aparicio; David Urbano |
| Abstract: | We argue that the positive relationship between pro-market institutions and entrepreneurial growth aspirations is dampened for individuals with general human capital (higher education), but augmented for those with specific human capital (experience in the marketplace). However, during a crisis, the differential effect of pro-market institutions on growth aspirations manifests only for entrepreneurs with specific human capital, with stronger effects than in good economic times. We run our empirical analysis on a dataset of individual- and country-level characteristics during 2005– 2020, thus exploiting variation from the Global Financial Crisis and the Covid-19 pandemic. We confirm our predictions and show stronger results for early stage (compared to nascent) entrepreneurs, and potential complementarities between human capital types. Altogether, our work paves the way to institutional adaptive policymaking. |
| Keywords: | Pro-market institutions; human capital; growth aspirations; entrepreneurship; crisis |
| JEL: | L26 M13 I25 J24 K2 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1875&r=sbm |
| By: | Federico S. Mandelman; Mehra Mishita; Hewei Shen |
| Abstract: | This paper studies the impact of skilled immigration policy frictions in the United States on technology-intensive firms by age cohorts. We use firm-level data and a general equilibrium model with endogenous firm entry and exit. The empirical results show that skilled immigration policy frictions directly influence young firm dynamics in technology-intensive sectors by affecting firm survival. Our general equilibrium model incorporates skilled foreign labor and immigration policy frictions that mimic the H-1B policy and matches the age distribution of firms in high-technology sectors, showing also that increased entry of younger firms leads to a greater exit of older firms. |
| Keywords: | skilled immigration; start-ups; high-technology firms; firm dynamics |
| JEL: | F22 M13 |
| Date: | 2024–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:97726&r=sbm |
| By: | Bracht, Felix; Mahieu, Jeroen; Vanhaverbeke, Steven |
| Abstract: | We examine if a startup's legal form choice is used as a signal by credit providers to infer its risk to default on a loan. We propose that choosing a legal form with low minimum capital requirements signals higher default risk. Arguably, small relationship banks are more likely to use legal form as a screening device when deciding on a loan. Using data from Orbis and the IAB/ZEW Start-up Panel for a sample of German firms, we find evidence consistent with our hypotheses but inconsistent with predictions of several competing explanations, including differential demand for debt or growth opportunities. |
| Keywords: | legal form; minimum capital requirements; signaling; access to debt; financial constraint |
| JEL: | D80 G30 M40 |
| Date: | 2023–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121335&r=sbm |
| By: | TAKAHASHI Hidetomo; XU Peng |
| Abstract: | Utilizing a unique questionnaire survey, we investigate difficulties in actual exit and organizational weaknesses in dealing with exit. Less profitable companies are more likely to answer that they have difficulties in making decisions related to downsizing and exit due to a lack of criteria. The higher the foreign investor ownership ratio and the higher the leverage, the less likely that firms answer that the internal procedures for deciding divestment lack clarity. Market-to-book ratio and the presence of a labor union increase problems associated with coordination with employees and with succession of employment after a sale. Interestingly, cash holdings per lifetime employee alleviate the labor problem concerning divestment. In terms of organization, small firms, high valuable firms, and cash rich firms are less likely to have criteria for evaluating divestment. Executive ownership significantly increases the likelihood of criteria but increasing size of board of directors decreases the existence of criteria. Likewise, small firms, high valuable firms, and cash rich firms tend not to have a process for evaluating divestment. Firms with high executive ownership or high foreign investors’ ownership are more likely to have procedures in place for evaluating downsizing and exit in response to such proposals. The effect of outside directors on the criteria and process for exit decision making as well as on issues involved in actual exit is insignificant. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24011&r=sbm |
| By: | Prince HIKOUATCHA (University of Dschang, Dschang, Cameroon); Alain G. TAGNE FOKA (niversity of Dschang, Dschang, Cameroon); Armand D. FOSSI (niversity of Dschang, Dschang, Cameroon); Simplice A ASONGU (Johannesburg, South Africa) |
| Abstract: | Recent and ongoing advancements in the field of ICT have led to the introduction of increasingly diversified financial products, and their use is improving people's level of financial knowledge and skills. This article aims at assessing the effect of Fintech on the level of financial literacy of small business’ managers in Cameroon. To this end, information was gathered using a questionnaire from 209 small business managers in Cameroon. Descriptive statistics, Principal Component Analysis (PCA), and multiple linear regression are used. Results lead to two main conclusions. On the one hand, unlike knowledge of their existence, the frequency of use of Fintech tools is better able to contribute to improving financial literacy levels overall. On the other hand, specifically, this result is more important when it comes to competence and self-confidence in managing financial affairs. As a result, increasing the utilization of financial technology instruments in companies is imperative for efficiency. |
| Keywords: | Financial Skill; Financial Knowledge; Financial literacy; Fintech; Small business |
| JEL: | G53 M2 O33 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/070&r=sbm |
| By: | HONJO, Yuji; IWAKI, Yunosuke; KATO, Masatoshi |
| Abstract: | This study explores the impact of initial debt financing on the survival of start-up firms by identifying three types of exit routes: bankruptcy, voluntary liquidation, and merger. Using a discrete-time duration model for Japanese start-up firms, we examine how debt financing affects the time from founding to exit. We find that firms that initially rely on debt financing from outside creditors are more likely to go bankrupt, and long-term debt, rather than short-term debt, is positively associated with the time to exit due to bankruptcy. In contrast, such firms are less likely to liquidate voluntarily, and long-term debt is negatively associated with the time to voluntary liquidation. Moreover, they are less likely to exit via merger, and long-term debt is negatively associated with the time to exit via mergers. Furthermore, macroeconomic conditions influence the likelihood of bankruptcy, unlike voluntary liquidation and merger. |
| Keywords: | Bankruptcy, Debt financing, Long-term debt, Merger, Outside creditors, Start-up |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:tdbcdp:e-2023-03&r=sbm |
| By: | Gretsch, Oliver; Tietze, Frank; Kock, Alexander |
| Abstract: | Intellectual property (IP) ownership aggressiveness constitutes an organization's strategic stance that prioritizes its IP protection. An organization thus pursues a rigid approach to protect its background IP and strives for exclusive ownership of the foreground IP that results from collaborative projects. This paper investigates how firms' IP ownership aggressiveness influences university–industry collaboration (UIC) project success and examines if the relationship is contingent on the governance modes that firms employ in UICs, especially the intensity of contract formality and shared governance. Analysing survey data from UIC projects of medium‐sized to large firms covering four industries, we find that the levels of contract formality and shared governance moderate the effect of firms' IP ownership aggressiveness on project success. Strong contract formality leads to a negative relationship between firms' IP ownership aggressiveness and UIC project success. Conversely, if firms apply strong shared governance, the relationship between IP ownership aggressiveness and UIC project success is positive. Given firms' strategic approach to protect background IP and claim ownership of foreground IP, these results have implications for UIC managers when selecting governance modes to best support UIC project success. |
| Date: | 2024–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:142707&r=sbm |
| By: | Hashimy, Loha; Geetika, Jain; Grifell-Tatje, Emili |
| Abstract: | urpose: Large attention surrounds identifying the meaningful blockchain business model on financial services, while a little focus about non-financial organizations and solutions in terms of how the blockchain business model can affect the organization and bring more value. To address the complex structure of businesses that have public goods, it is important to develop sustainable blockchain-based business models. Design/methodology/approach: This study offers the first qualitative research that uses an integrated technological, environmental and organizational (TOE) framework with technology acceptance theory (TAM) to study the adoption of blockchain technology by Spanish firms. Findings: The results of the paper discuss how that competitive pressure, competence, top management support and relative advantage have a positive impact on intention to adopt blockchain technology while complexity affects the intention to adopt the technology negatively. Contrary to many adoption studies, the findings show that intention to adopt negatively impacts adoption and outline the effect of blockchain on business model elements on the macroeconomic level. Originality/value: The key contribution of this study lies in providing a comprehensive understanding of the environmental, technological and organizational factors that impact the intention to adopt blockchain that eventually affects adoption. |
| Keywords: | Blockchain technology ; Business model ; Decentralized ; TAM ; TOE |
| JEL: | M21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119903&r=sbm |
| By: | Pablo Ottonello; Thomas Winberry |
| Abstract: | We study the role of financial frictions in determining the allocation of investment and innovation. Empirically, we find that firms are investment-intensive when they have low net worth but become innovation-intensive as they accumulate more net worth. To interpret these findings, we develop an endogenous growth model with heterogeneous firms and financial frictions. In our model, low net worth firms are investment-intensive because their returns to capital are high. Financial frictions slow the rate at which firms exhaust the returns to capital and shift towards innovation. Calibrating to the US economy, we find that the resulting lower growth implies large GDP losses even though capital misallocation is small. In other words, financial markets effectively fund the implementation of existing ideas, but do not adequately fund the discovery of new ideas. If innovation has positive spillovers, a planner would not only raise innovation but also lower investment expenditures among constrained firms. |
| JEL: | E22 E23 G3 O30 O4 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32056&r=sbm |
| By: | Nicoletta Corrocher; Simone Maria Grabner; Andrea Morrison |
| Abstract: | To promote a more environmentally sustainable economy, countries need to broaden their innovation activities to include green technologies. In this process, the increasing global interconnectedness and internationalisation of innovative activities underlines the growing importance of external knowledge linkages. This paper examines how different categories of countries - technological leaders, catching-up countries and follower countries - diversify into green technologies by exploiting different types of external linkages through co-inventions with international partners. The dataset covers 49 countries over a period of 40 years. The results show that it is complementary linkages, rather than external linkages alone, that facilitate related diversification in the green sector. Moreover, while complementary linkages have a significant impact on the ability of catching-up countries and followers to diversify into less complex and widely diffused green technologies, the diversification pattern of leaders is more oriented towards complex technologies in their early stages. Therefore, green technology development policies should actively promote international cooperation as it has the potential to catalyse green catching-up and foster sustainable growth. |
| Keywords: | technological diversification, green technologies, co-inventor linkages, relatedness, catching-up |
| JEL: | O33 Q55 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2404&r=sbm |