Management Studies (ISSN 2328-2185) Vol.5, No.4, 2017 (original) (raw)

Innovations from SMEs or large firms?: sector structure and dynamics

progress was most conspicuous, the trail leads not to the doors of those firms that work under conditions of comparatively free competition but precisely to the doors of the large concerns…and a shocking suspicion draws upon us that big business may have had more to do with creating that standard of life than with keeping it down." (Schumpeter 1943, p.) This has become known as the Schumpeter Mark I vs. Mark II discussion (Malerba & Orsenigo 1997). Evidence was found for both these views, and so the Schumpeterian Innovation Puzzle has perplexed the economics of innovation literature for some time now. Acs & Audretsch (1988) have tested an econometric model relating a sector's innovativeness to a number of variables denoting entry barriers. They have found, a.o., that innovations are to be expected from sectors where large firms dominate: creative accumulation of the Schumpeter Mark II type. Others have found evidence for a Schumpeter Mark I (xxx). In a recent study, using new product announcements as indicator for innovativeness as the studies by Acs & Audretsch did too, we have analyzed this issue again (Dolfsma & Van der Panne 2008). The results, using similar but much less noisy data for the Netherlands, were remarkably similar except for the findings on firm size. Sectors where SMEs predominate are more innovativecreative destruction of the Schumpeter Mark I type. Still others believe that there is an inverse U-shaped relation between innovation and the dominance in an industry of firms of a specific size (Aghion et al. 2005; Acs & Audretsch xxxx). This paper will further analyze the issue by doing two things. First the exact way in which firm size is implicated is analyzed by taking size as a continuous variable. Given the richness of our data, we are able to take several proxies for firm size, giving us information about what aspect of size matters. This does not resolve Paper to be presented at the annual AEA meetings,

Measuring and Validating the Factors Influenced the SME Business Growth in Germany—Descriptive Analysis and Construct Validation

Data

In Germany, the medical device industry constitutes a cornerstone of the health sector. In this study, we investigated the challenges and factors affecting the present-day performance of German SMEs concerned with medical devices. The research methodology adopted a cross-sectional and correlational research design, with simple random-sampling techniques, to data obtained from 110 mid-level and senior managers in German SMEs by means of an online structured survey in August 2022. We statistically validated our study data using exploratory factor analysis (EFA), Kaiser–Meyer–Olkin (KMO) testing, and Bartlett’s test, to assess the relationship between study variables and measure data adequacy using the R4.1.1(21) software, then carried out principal component analysis (PCA) with varimax factor loading and extracted six factors for use as research variables. The researchers also applied descriptive data analysis techniques using SPSS.21. The main study variables were: (1) the business p...

COMPETITIVENESS OF SMEs AND TRENDS ON THE MARKET

2009

A new economy is a global economy and it means worldwide trading with services, goods, capital, production and information. Small and middle enterprises play importance role of nationality economies functioning. So there is need to evaluate the potential of small and medium enterprises with the meaning of European integration. Small and middle companies have pivotal position in national economics in light of formation healthy entrepreneurial environment. Existences of small and middle companies stabilize society because each marked political insecurity and radical currents situation could be for them recourses diversification. Small and middle companies forms healthy entrepreneurial environment. Integration process of the Czech Republic into European union brigs the changes of parameters of business environment which needs to be monitoring and evaluated. The aim of this paper is engaged in the competitiveness of small and middle companies in light of trends on market and using soft ...

Influencing Factors and the Effect of Organizational Capabilities on Internationalization Strategies for German SMEs in the MedTech Industry

This paper is focusing on SME internationalization and investigates the antecedents and the effects of organizational capabilities on strategy in the German MedTech industry. However, the impact of existing research in this field is relatively poor and is not yet applicable in other countries or industries. As a consequence, a systematic review of the literature has been conducted. The results have shown heterogeneous research outcomes in the field of strategy and the need for further research in this context. Overall, the review indicates an initial conceptual model that has been developed, in which significant findings could be identified and refined in a country-, industry-or firm-specific way. The results will serve as a strategic input for SME's in the German MedTech industry.

Small Firm Internationalisation and International Entrepreneurship : Würzburg International Business Forum International Business Conference 2019 Conference Proceedings

2019

Entrepreneurship, innovation and internationalisation are substantially interrelated. In an increasingly competitive world economy these are getting more importance. In 2000 at its Lizbon meeting, the European Council set the objective of making the European Union “the most competitive and dynamic knowledge-based economy in the world”. Entrepreneurship, innovation and internationalisation are essential ingredients of achieving such objectives as they are now three of the most important factors for growth and job creation in open market economies. SMEs are also very important in many countries (as well as in Germany where they play a critical role in forming a middle class society so called Mittelstand that is also the backbone of the German economy). On the other hand, it seems that SMEs in general (and also many German SMEs are reluctant to invest in foreign countries though export orientation historically has been the case). There may me various factual and psychological reasons b...

Structural and competitive determinants of globally oriented small- and medium-sized enterprises: An empirical analysis

Journal of International Entrepreneurship, 2010

This paper examines the factors influencing the internationalization of the activities of small- and medium-sized enterprises (SMEs) as an entrepreneurial response to the opportunities and threats posed by the increasing globalization of the economic system. Findings from agricultural equipment manufacturers indicate that size, international experience, innovation, and distinctiveness have a direct influence on the degree in internationalization by SMEs. Scanning, learning, and networking have some influence on the extent of internationalization of SME activities but only indirectly through other variables. Competition intensity and uncertainty also have an indirect impact on internationalization, but standardization does not. Relative importance of each determinant is ascertained and the impact of SME internationalization activities on performance is assessed.

SMEs in the Contemporary Era of Global Competition

Procedia Computer Science, 2019

The evolution of globalization has provided a vast array of opportunities to the whole world. Companies have moved across the boundaries to take advantage of wider customer base. While exploring benefits of globalization and moving across boundaries, these giant multinational companies often pose a serious threat to the local companies of the host country by intensifying the competition for them. Especially the SMEs of less developed countries are more vulnerable because of their limited investment, already insufficient to remain competitive in the market. The establishment of stable and prosperous SME sector ensures the economic success of a country. Most of the developing economies are pursuing their growth by stabilizing their SME sector. These developing countries with gradually increasing purchasing power parity due to their economic growth are also a charm for the MNCs. These MNCs along with their huge resources, technological expertise and already achieved economies play a dominating role and evacuate the markets of local SMEs by their cost leadership strategy resulting in destruction of local industrial base and consequently the economic growth of the country. The paper indicates the negative effects of the MNCs on the growth of local industry thus providing a framework to the policy makers to devise policies safeguarding their local companies. The research also aims to facilitate local small scale entrepreneurs to be aware of the possible threats and enabling them to better combat against the giant MNCs.