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on Small Business Management |
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Issue of 2025–01–06
fifteen papers chosen by João Carlos Correia Leitão, Universidade da Beira Interior |
| By: | Ali-Yrkkö, Jyrki; Pajarinen, Mika; Ylhäinen, Ilkka |
| Abstract: | Abstract This study examines the outcomes of firms’ innovation cooperation activities. Using data from the Community Innovation Survey (CIS), we analyze Finnish-owned and foreign-owned firms operating in Finland. Our findings suggest a positive relationship between in-house R&D and innovation outcomes. However, the relationship between innovation cooperation and innovation outcomes appears more complex and varies by the type of cooperation. Specifically, for product innovation, the link between innovation cooperation and innovation outcomes seems to be limited for both domestic and foreign firms. |
| Keywords: | Innovation, R&D, Research, Development, Foreign, Domestic, Ownership |
| JEL: | F23 O3 |
| Date: | 2024–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:153 |
| By: | Andrea Fazio (Marche Polytechnic University & GLO - Global Labor Organization); Erminia Florio (DEF, University of Rome "Tor Vergata" & HEC Montreal); Gustavo Piga (DEF, University of Rome "Tor Vergata") |
| Abstract: | This study investigates the impact of the Italian Legality Rating (LR) on small and medium enterprises (SMEs) in public procurement. The LR, issued by the Italian Antitrust Authority, evaluates firms based on fiscal transparency, anti-corruption practices, corporate responsibility, and sustainability. While larger firms are more likely to obtain higher LR scores, SMEs benefit significantly from holding the certification. Using firm-level data and a Regression Discontinuity Design, we find that the LR increases SMEs’ tender-winning probabilities by 12.9 percentage points, highlighting its role as a strong institutional signal. Our findings emphasize the LR’s potential to enhance SME competitiveness in public procurement. |
| Keywords: | SMEs, Legality Rating, Public Procurement |
| Date: | 2024–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:rtv:ceisrp:587 |
| By: | Leogrande, Angelo; Drago, Carlo; Mallardi, Giulio; Costantiello, Alberto; Magaletti, Nicola |
| Abstract: | This article focuses on the propensity to patent across Italian regions, considering data from ISTAT-BES between 2004 and 2019 to contribute to analyzing regional gaps and determinants of innovative performances. Results show how the North-South gap in innovative performance has persisted over time, confirming the relevance of research intensity, digital infrastructure, and cultural employment on patenting activity. These relations have been analyzed using the panel data econometric model. It allows singling out crucial positive drivers like R&D investment or strongly negative factors, such as limited mobility of graduates. More precisely, given the novelty of approaches applied in the used model, the following contributions are represented: first, the fine grain of regional differentiation, from which the sub-national innovation system will be observed. It also puts forward a set of actionable policy recommendations that would contribute to more substantial inclusive innovation, particularly emphasizing less-performing regions. By focusing on such dynamics, this study will indirectly address how regional characteristics and policies shape innovation and technological competitiveness in Italy. Therefore, it contributes to the debate on regional systems of innovation and their possible role in economic development in Europe since the economic, institutional, and technological conditions are differentiated between various areas in Italy. |
| Date: | 2024–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nftv3 |
| By: | Lee, Juneyoung (Korea Institute for Industrial Economics and Trade); Kim, Young Min (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Digital transformation (DX) technologies are general-purpose technologies that replace human labor. They can be applied to a wide variety of industries today to enhance various aspects of firm performance. The Seoul Capital Area (SCA), which comprises the cities of Seoul and Incheon and the surrounding province of Gyeonggi, is home to most of Korea’s largest and most influential firms and economic activity. But the government has policies in place designed to promote balanced regional development, and DX is at the forefront of South Korea’s policy agenda for strengthening the competitiveness of industries outside the SCA. But in order for these efforts to be effective, it is necessary to analyze the unique ways that DX technologies can affect firms depending on their industry and even geographic location. For this study, we empirically analyze data extracted from Statistics Korea’s Survey of Business Activities to examine the different ways in which DX technologies impact firms in different regions and industries. Our analysis reveals that DX technologies exert a positive impact on employment and financial performance, especially at non-manufacturing firms in SCA and manufacturing firms outside of it. We also find that DX leads to better performance at non-SCA manufacturers. The results carry the following implications for DX-based balanced regional development policies. - The government should increase policy funding to support the use of digital technologies at factories and other places of business. It should also support upgrades of existing business sites. - There is a need for additional support measures to facilitate collaboration between buyers and suppliers of DX solutions. The Industrial Digital Transformation Promotion Act lays out some provisions calling for this support, but achieving balanced regional development requires more investment. - We should also increase support for research at public institutions that operate regional headquarters and have proven capable of providing quality research services essential for regional DX and innovation. - Finally, more support should be provided to regional post-secondary institutions of learning. Only by doing so can regions hope to develop and train their own human resources equipped with the necessary DX skills to enhance indigenous DX capacity. |
| Keywords: | service sector; services; digital transformation; balanced development; regional development; regional economics; digital innovation; regional innovation; service industry; South Korea; KIET |
| JEL: | L80 L88 O14 O30 O36 O38 |
| Date: | 2024–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kietia:2024_005 |
| By: | Delis, Manthos; Iosifidi, Maria; Pnevmatikos, Lampros; Tsiritakis, Emmanuel |
| Abstract: | Credit negotiations can have real economic implications, especially for small firms that heavily rely on bank credit. We hypothesize and empirically establish through textual analysis that three characteristics reflecting credit negotiations are the time interval from loan application to approval or rejection, the probability of applying to another bank, and the probability of reapplying soon after a rejection. We show that poor and female entrepreneurs negotiate less vigorously, and identify several channels backing these effects, most notably education of loan applicants and firm R&D expenses. We also show how the identified effects influence loan approval and firm performance. |
| Keywords: | Credit negotiations; Small firms; Loan applications; Firm performance |
| JEL: | G0 G02 G2 G21 G30 |
| Date: | 2023–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123003 |
| By: | Fabling Richard (Motu Economic and Public Policy Research); David Maré (Motu Economic and Public Policy Research) |
| Abstract: | This study examines whether working in a M?ori-led firm contributes to the earnings of M?ori employees. It uses administrative data for 2005-2020 to identify M?ori-led firms, based on the ethnicity and descent of working proprietors, and using an improved method of measuring descent. Almost 8% of M?ori employees work in M?ori-led firms. Controlling for firm and worker characteristics, we find that M?ori-led firms have slightly lower than average multi-factor productivity and wage levels. The wage effects for M?ori of working in a M?ori-led firm are small but there is some evidence to suggest that moving between M?ori-led firms contributes to wage growth for w?hine M?ori, and that in M?ori-led firms there is stronger pass-through of firm performance to earnings levels for t?ne M?ori. |
| Keywords: | earnings; productivity; M?ori; ethnicity |
| JEL: | J30 J15 J71 J42 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_05 |
| By: | Sabrina Lucia Di Addario; Zhexin Feng; Michel Serafinelli |
| Abstract: | This paper presents direct evidence on how firms' innovation is affected by access to knowledgeable labor through co-worker network connections. We use a unique dataset that matches patent data to administrative employer-employee records from "Third Italy"-a region with many successful industrial clusters. Establishment closures displacing inventors generate supply shocks of knowledgeable labor to firms that employ the inventors' previous co-workers. We estimate event-study models where the treatment is the displacement of a "connected" inventor (i.e., a previous coworker of a current employee of the focal firm). We show that the displacement of a connected inventor significantly increases connected inventors' hiring. Moreover, the improved access to knowledgeable workers raises firms innovative activity. We provide evidence supporting the main hypothesized channel of knowledge transfer through firm-to-firm labor mobility by estimating IV specifications where we use the displacement of a connected inventor as an instrument to hire a connected inventor. Overall, estimates indicate that firms exploit displacements to recruit connected inventors and the improved capacity to employ knowledgeable labor within the network increases innovation. |
| Keywords: | social connections, firm-to-firm labor mobility, patents, establishment closure |
| JEL: | J60 O30 J23 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:497 |
| By: | Ali-Yrkkö, Jyrki; Pajarinen, Mika |
| Abstract: | Abstract The machinery and equipment industry accounts for one-third of the R&D activities in the Finnish manufacturing sector. Since 2017, the Finnish machinery and equipment industry has increased its R&D investment more than its counterparts in other countries. In Finland, the growth rate of R&D investment in medium-sized companies has been faster than in small and large companies. However, according to a survey, small companies are expected to increase their R&D investment more than medium-sized and large companies by 2027. |
| Keywords: | Research, Development, R&D, Machinery, Manufacturing |
| JEL: | O3 L6 L64 |
| Date: | 2024–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:156 |
| By: | Rozi Kumari (Guru Gobind Singh Indraprastha University); A. Ganesh Kumar (Indira Gandhi Institute of Development Research); Rajendra Vaidya (Indira Gandhi Institute of Development Research) |
| Abstract: | Despite impressive growth performance, empowering women and bridging gender gaps in entrepreneurship remains a key challenge for India. Given the crucial role of finance functioning of businesses, we investigate whether females face disproportionate barriers in seeking and receiving loans. Using nationally representative datasets from the World Banks's World Enterprise survey (WBES) data for 2014 and 2022, we analyse the role of manager's and owner's gender in the loan seeking behaviour and loan approval rate. On the demand side, we find that female managers are less likely to seek loans while female owners are more likely to seek loans. Particularly, female managed firms even with male owners are less likely to seek loans while male managed firms with female owners are more likely to apply for loan. On the supply side, we find that loans of female managed firms are less likely to be approved whereas female owned firms do not have significantly less chances of loan approval. Interestingly, the female owned firms with male managers do not face any significant chance of loan denial but male owned firms with female managers have higher and significant chances of loan denial. Female owned and female managed firms also have lower chances of loan approval. |
| Keywords: | Female, Entrepreneurship, Loans, Heckprobit, India, Discrimination |
| JEL: | J16 L26 G2 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-025 |
| By: | Elizabeth Webster (Melbourne Institute: Applied Economic & Social Research, University of Melbourne); Alfons Palangkaraya (Centre for Transformative Innovation, Swinburne University of Technology); Paul H. Jensen (Faculty of Business and Economics, University of Melbourne); Russell Thomson (Centre for Transformative Innovation, Swinburne University of Technology) |
| Abstract: | We quantify how competitive funding programs that promote university-industry (U-I) research partnerships affect firm performance. To do this, we estimate staggered difference-indifference models using data from more than 5, 000 funded and unfunded Australian Research Council Linkage Project grant applications from 2002 until 2015. Our results show grant funding led to a 12 percent increase in employment over a five-year period with both employment and turnover trending upward relative to untreated firms over our five-year posttreatment window. |
| Keywords: | university, industry, research, collaboration |
| JEL: | O31 O32 O34 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iae:iaewps:wp2024n14 |
| By: | Quimba, Francis Mark A.; Barral, Mark Anthony A.; Andrada, Abigail E. |
| Abstract: | The paper examines the role of higher education institutions (HEIs) in the agribusiness innovation ecosystem in Central Visayas, Philippines, underlining their contributions, the challenges they face, and the opportunities available. Using a mixed-methods approach, the research reveals that HEIs serve as knowledge sharers and collaborators within the ecosystem. Their impact, however, is limited by inadequate funding and a lack of entrepreneurial engagement, among other factors. The agribusiness innovation ecosystem is perceived by stakeholders as a nascent yet growing industry, with potential for significant economic contributions. The study further identifies areas for improvement, such as policy enhancement, deeper collaboration and engagement, and supportive intellectual property frameworks. The paper recommends strengthening HEI involvement in agribusiness innovation to boost their role in driving regional economic growth and in addressing emerging issues like climate change and food security. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | agribusiness;agribusiness innovation ecosystem;capacity building;entrepreneurship;food security;higher education institutions;intellectual property;knowledge sharing;regional development;research and development;sustainable agriculture |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-25 |
| By: | Casati, Paola; Kalantzis, Fotios |
| Abstract: | This study investigates how regional spillovers influence firms' climate investment decisions across EU regions using spatial econometric models. Using data from the European Investment Bank Investment Survey (EIBIS) 2023, we address two key questions: what triggers firms to adopt greener profiles, and how spillover effects impact investment decisions in neighbouring regions. Our study, reveals the existence of significant spatial dependence in firms' climate investment decisions across EU regions, underscoring at the same time the interconnected nature of adaptation and mitigation efforts. Further, risk perceptions, financial capabilities, external conditions like economic and institutional frameworks and EU funds, play a key role in shaping climate investment choices both locally and in neighbouring regions. The results underscore the critical need for spatial considerations in climate policy development, suggesting that policies tailored to regional dynamics can more effectively foster climate resilience and climate investments. |
| Keywords: | European Investment Bank Investment Survey, Green investment, Spatial regression analysis |
| JEL: | C21 Q54 Q55 Q56 Q58 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:306851 |
| By: | Liebregts, Werner (Tilburg University, School of Economics and Management); Rigtering, Coen; Bosma, Niels |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:162bb2e2-f8ae-46ea-8fc3-504939595d3a |
| By: | Mammadaliyev, Farid; Gilsing, Victor; Knoben, J. (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:56c854b7-ed86-4830-843e-c9d489162062 |
| By: | Fabling Richard (Motu Economic and Public Policy Research) |
| Abstract: | Productivity data is missing from the Longitudinal Business Database (LBD) for over a third of firm-year observations in “measured sector” industries, equating to a fifth of total labour in those industries. We develop a method to fill these data gaps using an additional (third) data source – firm-level annualised goods and services tax (GST) returns. Coupled with additional modelling using full-coverage employment information, the resulting “complete” productivity dataset provides additional avenues for researchers to test the robustness of their results to the inclusion of firm types previously underrepresented in the productivity data – particularly new and owner-operated firms. |
| Keywords: | Longitudinal Business Database; administrative data; productivity |
| JEL: | D20 D24 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:mtu:wpaper:24_06 |