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on Small Business Management |
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Issue of 2024‒08‒26
thirteen papers chosen by |
| By: | Koch, Florian; Hoellen, Max; Konrad, Elmar D.; Kock, Alexander |
| Abstract: | Creative industries contain paradoxes because conflicting tensions arise between the market and the arts. Entrepreneurs need to find and maintain a balance between those two sides to create innovation. This study tests the interaction between business and creative orientations of a founder in their influence on innovation in the context of creative entrepreneurial firms and provides recommendations for how creative agents can leverage and manage their innovations based on their creative visions. Determinants on the individual level, such as the founder's creative or business orientations, have a lasting impact on the practices and process of their venture. To trace the imprinting influence of the founder's orientation on innovation, the empirical setting is a time‐lagged study of German firm owners in the cultural and creative industries surveyed 5 years apart. The results show a significant relationship between creative orientation and innovation, whereas business orientation does not significantly relate to innovation. However, creative and business orientations reveal a negative interaction effect. This study contributes empirical evidence to the paradox theory and the interaction between the opposite poles. Our findings provide valuable insights about the relevance of creative orientation and its visionary impact on the firms' innovation process. Furthermore, the results shed new light on the tension between art and the market, as different compositions of the two orientation poles seem to have a varying impact on the degree of innovation. Thus, the study reveals the complexity of creative entrepreneurship and provides managerial guidance for other knowledge‐based industries. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:147985 |
| By: | Damioli, Giacomo; Van Roy, Vincent; Vertesy, Daniel; Vivarelli, Marco |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be "enabling technologies", a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| Keywords: | Artificial Intelligence, Technological Paradigm, Structural Change, Patents |
| JEL: | O31 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1467 |
| By: | Xavier Giroud; Ernest Liu; Holger Mueller |
| Abstract: | The vast majority of U.S. inventors work for firms that also have inventors and plants in other tech clusters. Using merged USPTO–U.S. Census Bureau plant-level data, we show that larger tech clusters not only make local inventors more productive but also raise the productivity of inventors and plants in other clusters, which are connected to the focal cluster through their parent firms' networks of innovating plants. Cross-cluster innovation spillovers do not depend on the physical distance between clusters, and plants cite disproportionately more patents from other firms in connected clusters, across large physical distances. To rationalize these findings, and to inform policy, we develop a tractable model of spatial innovation that features both within- and cross-cluster innovation spillovers. Based on our model, we derive a sufficient statistic for the wedge between the social and private returns to innovation in a given location. Taking the model to the data, we rank all U.S. tech clusters according to this wedge. While larger tech clusters exhibit a greater social-private innovation wedge, this is not because of local knowledge spillovers, but because they are well-connected to other clusters through firms' networks of innovating plants. In counterfactual exercises, we show that an increase in the interconnectedness of U.S. tech clusters raises the social-private innovation wedge in (almost) all locations, but especially in tech clusters that are large and well-connected to other clusters. |
| JEL: | G30 O30 R30 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32677 |
| By: | Joanna Tyrowicz (Group for Research in Applied Economics (GRAPE); University of Warsaw; Institute of Labor Economics (IZA); University of Warsaw; Group for Research in Applied Economics (GRAPE)); Katarzyna Bech - Wysocka (Group for Research in Applied Economics (GRAPE); Warsaw School of Economics) |
| Abstract: | We study the effects of gender board diversity on firm performance. We use novel and rich firm-level data covering over seven million private and public firms spanning the years 1995- 2020 in Europe. We augment a standard TFP estimation with firm fixed effects to explore the role of gender board diversity. We construct a shift-share instrument for gender board diversity and find that increasing the share of women on boards is conducive to better economic performance. The results prove robust to a variety of sensitivity analysis. This outcome is driven primarily by firms from the service sector and by smaller firms. The impact was stronger during the early years of our sample. |
| Keywords: | firm performance, gender board diversity |
| JEL: | J16 J88 D22 L25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fme:wpaper:95 |
| By: | Josef Taalbi; Mikhail Martynovich; ; ; |
| Abstract: | While recent studies have heralded large cities as “innovation machines†, the majority of regional studies of innovation are based on patent indicators. In this paper, we compare regional patent and innovation counts in Sweden (1970-2014) and document the presence of a sizeable urban bias in patent indicators, which is primarily explained by higher patent filing propensity in urban areas. We also show that using administrative spatial units which do not account for spatial organization of economic activity tends to exacerbate this bias. This poses a problem for academic studies that wish to understand regional innovation, or policy reports benchmarking regional performance. |
| Keywords: | Regional Innovation, Patents, Urban Scaling, Urban Bias of Patents |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2422 |
| By: | Flavio Calvino; Chiara Criscuolo; Hélène Dernis; Lea Samek |
| Abstract: | This report outlines a new methodology and provides a first exploratory analysis of technologies and applications that are at the core of recent advances in AI. Using AI-related keywords and technology classes, the study identifies AI-related patents protected in the United States in 2000-18. Among those, “core” AI patents are selected based on their counts of AI-related forward citations. The analysis finds that, compared to other (AI and non-AI) patents, they are more original and general, and tend to be broader in technological scope. Technologies related to general AI, robotics, computer/image vision and recognition/detection are consistently listed among core AI patents, with autonomous driving and deep learning having recently become more prominent. Finally, core AI patents tend to spur innovation across AI-related domains, although some technologies – likely AI applications, such as autonomous driving or robotics – appear to increasingly contribute to developments in their own field. |
| Keywords: | Artificial Intelligence, Innovation, Patents |
| JEL: | C81 O31 O33 O34 |
| Date: | 2023–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:oec:comaaa:6-en |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | Entrepreneurship scholarship and policy are based on the myth of firm growth as imperative and the related myth of perpetual economic growth. This paper takes issue with the obsession with this growth myth, discussing the dangers it poses. Green growth and sustainable entrepreneurship are exposed as oxymorons. Given the dangers and the impossibility of perpetual growth, the paper then tries to answer the question of what role entrepreneurship could play in a post-growth society or in degrowth (the proposed approach to get there). The tentative conclusion is that entrepreneurship is incompatible with current visions of post-growth and degrowth. Degrowth and post-growth societies are post-entrepreneurship societies. While seeing how post-growth and degrowth could be made compatible with entrepreneurship is complicated, it does not mean it is impossible. More imagination and attention by entrepreneurship and post-growth scholars on the nature of entrepreneurship beyond growth is required sooner rather than later. Since economic growth is not perpetual, time is running out. |
| Keywords: | entrepreneurship, economic growth, capitalism, polycrisis, climate change |
| JEL: | L26 L21 O40 O44 P17 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17158 |
| By: | Mark Fenwick; Erik P. M. Vermeulen; Marcelo Corrales Compagnucci |
| Abstract: | Identifying and then implementing an effective response to disruptive new AI technologies is enormously challenging for any business looking to integrate AI into their operations, as well as regulators looking to leverage AI-related innovation as a mechanism for achieving regional economic growth. These business and regulatory challenges are particularly significant given the broad reach of AI, as well as the multiple uncertainties surrounding such technologies and their future development and effects. This article identifies two promising strategies for meeting the AI challenge, focusing on the example of Fintech. First, dynamic regulation, in the form of regulatory sandboxes and other regulatory approaches that aim to provide a space for responsible AI-related innovation. An empirical study provides preliminary evidence to suggest that jurisdictions that adopt a more proactive approach to Fintech regulation can attract greater investment. The second strategy relates to so-called innovation ecosystems. It is argued that such ecosystems are most effective when they afford opportunities for creative partnerships between well-established corporations and AI-focused startups and that this aspect of a successful innovation ecosystem is often overlooked in the existing discussion. The article suggests that these two strategies are interconnected, in that greater investment is an important element in both fostering and signaling a well-functioning innovation ecosystem and that a well-functioning ecosystem will, in turn, attract more funding. The resulting synergies between these strategies can, therefore, provide a jurisdiction with a competitive edge in becoming a regional hub for AI-related activity. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.19439 |
| By: | Simon Baumgartinger-Seiringer (Department of Geography and Regional Research, University of Vienna, Vienna, Austria); Balazs Pager (Department of Geography and Regional Research, University of Vienna, Vienna, Austria); Michaela Trippl (Department of Geography and Regional Research, University of Vienna, Vienna, Austria) |
| Abstract: | This article focuses on regions in industrial transitions (RITs) in the context of climate change mitigation and their varying paths towards sustainability, drawing on rich data from 11 regions in 9 countries in the Danube area in Europe. Inspired by recent work on green regional vulnerability, challenge-oriented regional innovation systems and transformative resilience, the article conceptualizes regional industrial transition pathways as the outcome of a complex interplay between distinct geographies of (1) vulnerability to, (2) preparedness for, and (3) responsiveness to transition pressures. Empirically, the article employs a mixed-method approach, combining quantitative analyses of regional structural conditions (focusing on vulnerability and preparedness) with qualitative investigations of agency of regional and non-regional actors (focusing on responsiveness). In doing so, the article unravels diverse pathways that regions adopt to navigate industrial transitions. We contend that these insights hold important implications for the design of tailor-made regional industrial transition strategies. |
| Keywords: | Regions in industrial transitions, vulnerability, preparedness, responsiveness, transformative resilience |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:aoe:wpaper:2403 |
| By: | Siyu Chen; Qing Guo |
| Abstract: | Employing a comprehensive survey of micro and small enterprises (MSEs) and the Digital Financial Inclusion Index in China, this study investigates the influence of fintech on MSE innovation empirically. Our findings indicate that fintech advancement substantially enhances the likelihood of MSEs engaging in innovative endeavors and boosts both the investment and outcomes of their innovation processes. The underlying mechanisms are attributed to fintech's role in fostering long-term strategic incentives and investment in human capital. This includes the use of promotions and stock options as rewards, rather than traditional perks like gifts or trips, the attraction of a greater number of university graduates, and the increase in both training expenses and the remuneration of technical staff. Our heterogeneity analysis reveals that fintech exerts a more pronounced effect on MSEs situated in economically developed areas, those that are five years old or younger, and businesses with limited assets and workforce. Additionally, we uncover that fintech stimulates the innovation of MSEs' independent research and development (R\&D) efforts. This paper contributes to the understanding of the nuanced ways in which fintech impacts MSE innovation and offers policy insights aimed at unleashing the full potential of MSEs' innovative capabilities. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.17293 |
| By: | Pouya Janghorban; Temilade Sesan; Muhammad-Kabir Salihu; Olayinka Ohunakin; Narges Chinichian |
| Abstract: | Rural electrification initiatives worldwide frequently encounter financial planning challenges due to a lack of reliable market insights. This research delves into the preferences and marginal willingness to pay (mWTP) for upfront electricity connections in rural and peri-urban areas of Nigeria. We investigate discrete choice experiment data gathered from 3, 599 households and 1, 122 Small to Medium-sized Enterprises (SMEs) across three geopolitical zones of Nigeria, collected during the 2021 PeopleSuN project survey phase. Employing conditional logit modeling, we analyze this data to explore preferences and marginal willingness to pay for electricity connection. Our findings show that households prioritize nighttime electricity access, while SMEs place a higher value on daytime electricity. When comparing improvements in electricity capacity to medium or high-capacity, SMEs exhibit a sharp increase in willingness to pay for high-capacity, while households value the two options more evenly. Preferences for the electricity source vary among SMEs, but households display a reluctance towards diesel generators and a preference for the grid or solar solutions. Moreover, households with older heads express greater aversion to connection fees, and male-headed households show a stronger preference for nighttime electricity compared to their female-headed counterparts. The outcomes of this study yield pivotal insights to tailor electrification strategies for rural Nigeria, emphasizing the importance of considering the diverse preferences of households and SMEs. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.15757 |
| By: | Tarsia, Romano |
| Abstract: | This paper provides novel, firm-level estimates of the economic damages induced by temperature shocks. Leveraging European firm-level data, this study investigates the heterogeneity of damages across firms characteristics overlooked in aggregate analyses. The analysis consistently highlights negative (positive) impacts on the least (most) productive firms, contributing to both climate economics and the literature on aggregate productivity. Industry-specific effects indicate different susceptibilities across sectors to weather shocks. These results delve into the findings from the pooled sample which reveal a moderate U-shaped relationship between temperature and economic outcomes, suggesting significant adaptation for firms located in warmer areas. Temperature impacts on economic performance manifest with a lag, and varying persistence across firms. Methodologically, this work employs quantitative methods to address the potential drawbacks highlighted in the current climate econometrics discussion. |
| Keywords: | weather; climate change; firms; climate damages; economic performance |
| JEL: | D24 O13 O14 O52 Q51 Q54 R11 |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124251 |
| By: | Julie Jammes (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UM - Université de Montpellier); Pauline Folcher (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School, UM - Université de Montpellier); Gilles N'Goala (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UM - Université de Montpellier) |
| Abstract: | The social acceptability of technological innovation is a concept that has been discussed in various disciplines in the humanities and social sciences. However, this subject remains understudied in the marketing literature, which has predominantly focused on practical acceptability, adoption, and appropriation of technological innovation. To address this gap, this communication proposes a theoretical conceptualization of the social acceptability of technological innovation perceived by the consumer. This approach aims to lay the necessary conceptual foundations for operationalizing the construct and encouraging future marketing research. A qualitative study, involving 30 semi-structured interviews, was conducted to generate an enriched and detailed understanding of what the social acceptability of technological innovation means for consumers. The results indicate that the social acceptability of technological innovation is a bidimensional construct. |
| Abstract: | L'acceptabilité sociale de l'innovation technologique est un concept qui a été discuté dans diverses disciplines en sciences humaines et sociales. Cependant, ce sujet reste sous-étudié dans la littérature en marketing, qui a principalement focalisé son attention sur l'acceptabilité pratique, l'acceptation et l'appropriation de l'innovation technologique. Pour combler cette lacune, cette communication propose une conceptualisation théorique de l'acceptabilité sociale de l'innovation technologique perçue par le consommateur. Cette démarche vise à poser les bases conceptuelles nécessaires en vue d'opérationnaliser le construit afin d'encourager de futures recherches en marketing. Une étude qualitative, impliquant la réalisation de 30 entretiens semi-directifs, a été menée pour générer une compréhension enrichie et plus détaillée de ce que l'acceptabilité sociale de l'innovation technologique signifie pour les consommateurs. Les résultats indiquent que l'acceptabilité sociale de l'innovation technologique est une construction bidimensionnelle. |
| Keywords: | acceptability of technological innovation ; Conceptualization ; Qualitative study Marketing, Acceptabilité sociale de l'innovation technologique; Conceptualisation; Étude qualitative; Marketing Social; |
| Date: | 2024–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04643346 |