Local Networks and New Business Formation

ABSTRACTThe purpose of this paper is to open the ‘black box’ of knowledge spillovers by testing the extent to which social interactions between firms in a region positively contribute to firm performance. Specifically, we examine the Marshall‐Jacobs controversy, a debate over whether these spillovers occur across firms operating in similar or dissimilar fields. Our empirical examination of the debate relies on a dataset that is constructed from three sources: firm‐level data of 1,881 high‐tech firms in all 40 Dutch regions, regional economic data and network data constructed from the membership registrations of all business associations in a sample of 11 regions. The results show that the total amount of regional network activity has no effect on individual firm performance; however, participation in local business networks does support firm employment growth. With regards to the Marshall‐Jacobs controversy, the results show that having local links to other high‐tech firms is conducive to a firm's employment growth, while links to other types of firms provided no such lift.

Whither Public Interest: The Case of Greece's Public Finances

Japan has often been described as a ‘network society’. Business networks are said to succeed as alternatives to markets and hierarchies by fostering cooperation and competition among members. Interpretations of existing business networks in Japan are biased toward the central state and big business, while failing to examine underlying power asymmetries, which have been masked by assumptions of ‘trusting’ relations between large firms and small. In essence, in Japan most networks are in fact hierarchies. High-technology small- and medium-sized firms that have de-linked and formed some kind of alternative (non-hierarchical) inter-firm interaction (network) type are much more innovative in terms of R&D output and new product creation than their ‘linked’ (ie to hierarchical production structures, or keiretsu) counterparts. In other words, de-linking, not firm location, is what matters. That said, there exist more independent firms in Kyoto, coupled with a sense of ‘civic entrepreneurship’. This civic-minded independent entrepreneurship dynamic leads to innovative outcomes, more so than in other regions in this study. I examine three local business networks: Kyoto's ‘Kiseiren’, Osaka's ‘TOPS Higashi Osaka’ and Tokyo's ‘O-net’. The most successful networks are enterprise-initiated and independent of state and big business. Emerging network forms are proving to be an important alternative to hierarchy in Japan.

En este artículo, se exploran los elementos condicionantes de las dinámicas económicas y políticas en torno a la extracción de hidrocarburos en dos países del golfo de Guinea: Ghana y GuineaEcuatorial. Para ello, atenderemos a las similitudes y diferencias entre ambos casos, a partir de los elementos teóricos señalados por el paradigma de la maldición de los recursos, perspectiva que utilizaremos de manera crítica. Las diferencias en relación con la importancia cuantitativa de los recursos petroleros respecto del total del ingreso nacional, el desarrollo regulatorio, la transparenciaen la gestión de las rentas petroleras y la calidad institucional son algunas de las divergencias más importantes. No obstante, estos casos también presentan importantes similitudes; por ejemplo, enrelación con el escaso rol que desempeña la especialización petrolera para favorecer la inserción regional, así como el gran reto de articular encadenamientos productivos entre la industria extractiva y el entramado empresarial local.

This study examines the systemic obstacles to entrepreneurship education in East Nusa Tenggara (NTT), one of Indonesia's most underdeveloped provinces. Rural institutions like SMPN 2 and SMPN 7 Sambi Rampas encounter significant obstacles: 83% of educators are untrained in entrepreneurship pedagogy, and only 21% of schools have access to entrepreneurial resources or local business networks. This research seeks to develop a pragmatic, context-sensitive educational model that enhances entrepreneurial skills among rural students. The study uses a qualitative approach involving four informants comprising school leaders, teachers, parents, and students through interviews, focus group discussions, and document analysis to derive grounded insights. Research indicates that adaptive school leadership, teacher peer mentoring, and parental engagement directly impact the success of student-led microbusiness initiatives. A notable revelation deemed a “Stunning Finding” is that women-led student cooperatives in these isolated regions surpass conventional school-operated business programs regarding sustainability, participation rates, and local innovation. Experiential and problem-based learning make this innovation model viable and replicable in under-resourced communities. It contests the belief that entrepreneurial success necessitates urban infrastructure, emphasising that inclusive, community-based educational models can convert rural schools into centres of innovation and resilience. The study concludes with a proposed framework for school-based entrepreneurship that emphasises leadership, collaboration, and gender-inclusive practices within rural education systems

Resource attributes and firm performance in international joint ventures

The aim of this study was to investigate the differences in structural connectivity based on diffusion tensor imaging (DTI) and functional connectivity based on arterial spin labeling (ASL) MRI between temporal lobe epilepsy (TLE) patients with and without hippocampal sclerosis (HS). We enrolled 50 patients with TLE, including 25 patients with HS and 25 patients without HS, who underwent brain MRI, including DTI and ASL. We calculated the network parameters of structural connectivity based on DTI and functional connectivity based on ASL using a graph theoretical analysis. The parameters included global network measures (radius, diameter, characteristic path length, global efficiency, local efficiency, mean clustering coefficient, transitivity, assortative coefficient, and small-worldness index) and a local network measure (betweenness centrality). The global and local network measures of structural connectivity were not different between TLE patients with and without HS. However, significant differences in functional connectivity existed between the two groups. The radius and diameter of the global network measures in the TLE patients with HS were significantly increased compared with those without HS (4.140 vs. 3.140, p = 0.045; 6.812 vs. 5.132, p = 0.049; respectively). No differences were detected between other global network measures of functional connectivity and local network measure. Significant differences in global network measures of functional connectivity based on ASL existed between TLE patients with and without HS. These findings suggest that TLE patients with HS exhibit a more disconnected functional brain network than those without HS.

Research on firm internationalisation has tended to focus on Large Enterprises(LEs), with relatively less focus on Small Medium Enterprises (SMEs), despite the importance of SMEs in generating national employment and economic development. In many countries the government has acknowledged SMEs as a key source of domestic income growth and employment creation, most particularly from export activities. Studies on internationalisation of SMEs, however, have been predominantly focused on developed countries. This study therefore is focused on the internationalisation of SMEs from Indonesia, which represents developing countries. Most studies of exporting SMEs focus on macroeconomic factors such as regulation, infrastructure and programs which assist SME development. On the other hand, management literature has recognised the important roles of senior managers in terms of their management know‐how and international business skills as human capital which can influence the export activity of the firm. At the same time, social capital is also recognised a further resource needed for SME internationalisation. Therefore this research will address this gap in order to examine the role of entrepreneur’s human and social capital in internationalisation of the firm. Further to this, findings on the relationship between firm internationalisation and firm performance are mixed. More specifically, the effect of internationalisation of SMEs on business performance has not been seriously investigated. This study therefore seeks to fill this gap by examining the unique effect of different dimensions of internationalisation on business performance. Overall, this study has three purposes: the first is to measure company resources (Human and Social Capital) influencing Indonesia’s manufacturing exporting SMEs in their internationalisation process; the second is to examine the effect of human and social capital in relation to three dimensions of internationalisation (international performance, number of markets and time to internationalise); and the third is to assess the effect of the aforementioned internationalisation dimensions on firm financial performance. This study used a mixed method combining quantitative and qualitative approaches. The quantitative data was drawn from 241 SMEs’ managers and/or owners who have exporting activities from a total of approximately 3 million SMEs based on the Indonesian government database. The qualitative data was collected through interviews with ten SMEs owner‐managers who were participating in the survey. Using Structural Equation Modelling (SEM) technique, the findings suggest that Management Know‐How have no positive relationship with any dimension of internationalisation, but, interestingly, it has a negative relationship with time for internationalisation; suggesting that it delays the internationalisation of the firms. The findings also show that both International Business Skills and Social Capital skills have a positive relationship with international performance and number of exporting markets, but not with time for internationalisation. With regard to the effect of internationalisation on business performance, the findings show that international performance has no effect on business performance, but the number of export market has a positive relationship with business performance. On the other hand, the time for internalisation has a negative effect on business performance, meaning that the later the SMEs internationalise, the better their performance. Qualitative findings indicate that good networks with competitors, suppliers and government will help a firm to serve the international market successfully. From theoretical perspectives, the findings support the Resource‐Based View theory as international business skills have positive relationships with two dimensions of internationalisation. The findings of this study also support the traditional view of incremental internationalisation advanced by Stage Theory. Consequently, the findings imply that International New Venture Theory, which supports born‐global or leap‐frog approach in internationalising SMEs, is not appropriate for Indonesian context. Finally, this study also supports the Network Perspective which suggests that the relationships built by firms with other businesses, community leaders, and government have significant effect on internationalisation of SMEs. Overall, this study demonstrates the unique effect of different organisational capitals (i.e. human and social) as key resources for facilitating internationalisation.

Integration of immigrants in their host societies is a key-issue on the refugee crisis throughout the world. Self-employment appears as means of survival representing the so-called necessity-driven entrepreneurship, which is rather common among immigrant survival strategies. Syrians in Brazil are the fourth largest nationality to seek refuge in the country. Therefore, the present paper aims at analyzing how ethnic and local networks of support are configured and influence the creation of new businesses, such as food stalls and restaurants. For that purpose, an exploratory study through in-depth interviews was conducted with Syrians in Rio de Janeiro, generating reflections on the institutional picture as well as the hosting conditions of the country. Key-findings include contingency factors showing evidences that social capital is more a function of brokerage across structural holes than closure within a network articulation, the family network importance as well as the establishment of a local support network. Keywords: immigration, refugee, Syrians, Brazil, self-employment.

The creation of new businesses is vitally important to a healthy economy. Governments can enact laws and enforcement policies to foster and protect business. Or, the priority in some countries can be to protect employees and labor organizations. We examine how the business policies and laws enacted foster or inhibit new firm births in 19 countries. Firm birth rates are analyzed in countries with various business polices and control for legal environments, quality of government, and cultural variables. We conclude that policies which inhibit large firm competitiveness also foster more new firm births. Policies that give large firms an advantage seem to restrain firm births. High accounting standards favor the specialization ability of large firms and reduce new firm startups. Firm death rates are also examined.

Rural tourism is relatively new product in the process of diversification of the rural economy in Republic of Macedonia. This study used desk research and life story interviews of rural tourism entrepreneurs as qualitative research method to identify prevalent success influential factors. Further quantitative analysis was applied in order to measure the strength of influence of identified success factors. The primary data for the quantitative research was gathered using telephone questionnaire composed of 37 questions with 5-points Likert scale. The data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) by SmartPLS 3.1.6. Results indicated that human capital, social capital, entrepreneurial personality and external business environment are predominant influential success factors. However, human capital has non-significant direct effect on success (p 0.493) nonetheless the effect was indirect with high level of partial mediation through entrepreneurial personality as mediator (VAF 73%). Personality of the entrepreneur, social capital and business environment have direct positive affect on entrepreneurial success (p 0.001, 0.003 and 0.045 respectably). Personality also mediates the positive effect of social capital on entrepreneurial success (VAF 28%). Opposite to the theory the data showed no interaction between social and human capital on the entrepreneurial success. This research suggests that rural tourism accommodation entrepreneurs could be more successful if there is increased support in development of social capital in form of conservation of cultural heritage and natural attractions. Priority should be finding the form to encourage and support the establishment of formal and informal associations of entrepreneurs in order to improve the conditions for management and marketing of the sector. Special support of family businesses in the early stages of the operation would have a particularly positive impact on the success of rural tourism. Local infrastructure, access to financial instruments, destination marketing and entrepreneurial personality have positive effect on success.

Prospects for the establishment of joint-ventured agribusiness in developing countries are a function of international agreements, local risk conditions, business networks, and banking systems that are willing to support the innovative transfer, protection, assessment, and commercialization of biotechnology. The integration of biotechnology will occur only if truly convincing practices emerge that enhance biodiversity and the competitiveness of sustainable production, utilization, and marketing cycles. Integration also depends on agreements on intellectual property rights, plant protection, trade and tariffs, price stabilization, and non-trade-distorting policies. These policies deal with broad issues in research, pest and disease control, environmental quality, germplasm conservation, resource retirement programs, and even with crop and disaster insurance. Measures derived from these policies will apply to novel processes and to organisms that have been genetically engineered and approved for release into the environment. For developing countries, much more attention will have to be paid to biological diversity and sustainable balances among intercropped agriforest and horticultural production systems. Balances should be compatible with regional and local customs and practices before genetically engineered “green goods and services” are introduced in the marketplace. Recombinant DNA technologies are currently better-suited to deal on a “gene-by-gene” basis, with commodity surpluses and material conversions involving more concentrated and industrialized processes than with field plantations of genetically engineered, complex, and long-lived crops that may require considerable adaptive plasticity. In most countries with developing economies, the integration of recombinant DNA technology represents a “special problematique” involving politico- and socioeconomic and environmental factors. Barriers to transfer and integration may involve evolving international agreements, public acceptance, resource over-exploitation, environmental degradation, rapid insect and disease resistance, contaminated water and food supplies, reduced quality of life, labor quality, corruption, crime, farmers' rights, germplasm conservation, and lack of protection of intellectual property, among other factors. Hence, the timing and mode of transferring biotechnology needs considerable impact assessment on a case-by-case basis.

Local Networks and New Business Formation

The connection between the weak performance of the Italian economy and its mechanisms governing the creation and allocation of human capital has been investigated only rarely. This paper argues that the Italian economy faces not just a generic shortage of human capital but also a specific shortage of entrepreneurial human capital, which explains the small size of firms and their lack of international competitiveness in high-tech sectors. We identify the main institutional mechanisms responsible for this state of affairs and the economic policy tools needed to promote the generation of entrepreneurial human capital.

Objectives: Sexual partnerships can be viewed as networks in order to study disease transmission. We examined the transmission of Neisseria gonorrhoeae in a localised outbreak in Alberta, Canada, using measures...