scholarly journals The Impact of Investment in Knowledge-Based Capital on Productivity: Firm-Level Evidence from Ireland

Author(s):  
Mattia Di Ubaldo ◽  
Iulia Siedschlag
2020 ◽  
Vol 12 (9) ◽  
pp. 3874 ◽  
Author(s):  
Kyungsuk Lee ◽  
Taewoo Roh

We investigate the impact of proactive divestitures on innovative activities at a firm-level. Research concerning the relationship between proactive divestiture and innovation performance remains unexplored and requires a close investigation. Furthermore, we argue that proactive-divestiture is an essential means to achieve corporate sustainability by fostering innovation outcomes. To explore such a relationship, this study integrates research on knowledge-based view and organizational inertia and encompasses the model of financial distress. We hypothesize that proactive divestiture increases both the firm’s R&D intensity and the number of patents and propose that prior divestiture experiences and divested-unit size would moderate this relationship. Results indicate that proactive post-divestiture firms have increased in R&D inputs but not significantly in output. We found mixed results for such a relationship as prior experiences increased, but interestingly, the relationship revealed to be more significant for both input and output as divested-unit size decreased. This study contributes to our understandings of how proactive divestiture can reinforce knowledge capacity, distant from a traditional resource-based view that mainly regarded divestiture as a mere responsive action vis-à-vis financial pressure.


2017 ◽  
Vol 55 (6) ◽  
pp. 1226-1247 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella

Purpose Considering that SMEs are widely recognized as important innovators and, in the past years, have registered increasing levels of patenting, the purpose of this paper is to unveil the impact of both internal and external knowledge sourcing on SME patenting performance and test the moderating role of formal plan for innovation and absorptive capacity. Design/methodology/approach The authors propose an econometric approach based on a Hurdle Count Data Model which allows the authors not only to overcome problems related to the count dependent variables often assuming zero values, but also to separate patent propensity from patent portfolio size. Findings This methodology puts in evidence that an internal factor (i.e. employee skills for innovation) significantly influences SME patent propensity, while an external factor (i.e. open innovation with business partners) impacts SME portfolio size. Moreover, both formal plan for innovation and absorptive capacity play an important moderating role. Originality/value This paper embraces a knowledge perspective to investigate the determinants of SME patenting, which contributes to the knowledge-based view of the firm in the SME domain. Moreover, differently from most studies in the area of patenting which adopt a macro-level perspective and rely on secondary data, it assumes a firm-level approach and bases on primary data, which contributes to make it particularly distinctive.


Author(s):  
Jürgen Bitzer ◽  
Erkan Gören ◽  
Sanne Kruse-Becher

Abstract What role do immigrants play in firms’ ability to absorb and apply foreign knowledge? Based on a matched employer–employee dataset from Danish manufacturing firms over the period 2001–2011, this study examines the impact of foreign knowledge accessible by firms’ immigrant employees on firm-level total factor productivity (TFP). We construct various firm-specific absorbable foreign knowledge measures that link firms’ immigrant employees to the technological knowledge base of their country of origin. The empirical results suggest that firms employing immigrant employees have higher firm-level TFP outcomes and a higher probability of new firm-level patent applications. The average productivity gain associated with the hiring of one immigrant employee is about 1.5% in the year following the firm’s hiring decision. Additional results show that the estimated productivity increase varies with the level of education and the occupational positions of the immigrant employees. The results are robust to the inclusion of a large range of firm-specific controls and various sensitivity checks.


2019 ◽  
Vol 80 (4) ◽  
pp. 200-204 ◽  
Author(s):  
Brittany Cormier ◽  
Lana Vanderlee ◽  
David Hammond

Purpose: In 2010, Health Canada implemented a national campaign to improve understanding of “percent daily value” (%DV) in Nutrition Facts Tables (NFTs). This study examined sources of nutrition information and knowledge of %DV information communicated in the campaign. Methods: Respondents aged 16–30 years completed the Canada Food Study in 2016 (n = 2665). Measures included sources of nutrition information, NFT use, and %DV knowledge based on the campaign message (“5% DV or less is a little; 15% DV or more is a lot”). A logistic regression examined correlates of providing “correct” responses to %DV questions related to the campaign messaging. Results: Overall, 7.2% (n = 191) respondents correctly indicated that 5% is “a little”, and 4.3% (n = 115) correctly indicated 15% DV was “a lot”. Only 4.0% (n = 107) correctly answered both. Correct recall of %DV amounts was not associated with number of information sources reported, but was greater among those who were female, were younger, and reported greater NFT understanding and serving size information use (P < 0.05 for all). Conclusions: Results show low awareness of messaging from the Nutrition Facts Education Campaign among young Canadians. Such a mass media campaign may be insufficient on its own to enhance population-level understanding of %DV.


ABSTRACT The present study was undertaken to explore the evolution of the impact of firm-level performance on employment level and wages in the Indian organized manufacturing sector over the period 1989-90 to 2013-14. One of the major components of the economic reform package was the deregulation and de-licensing in the Indian organized manufacturing sector. The impact of firm-level performance on employment and wages were estimated for Indian organized manufacturing sector in major sub-sectors in India during the period from 1989-90 to 2013-14 of the various variables namely profitability ratio, total factor productivity change, technical change, technical efficiency, openness (export-import), investment intensity, raw material intensity and FECI in total factor productivity index, technical efficiency, and technical change. The study exhibited that all explanatory variables except profitability ratio and technical change cost had a positive impact on the employment level. Out of eight variables, four variables such as net of foreign equity capital, investment intensity, TFPCH, and technical efficiency change showed a positive impact on wages and salary ratio and rest of the four variables such as openness intensity, technology acquisition index, profitability ratio, and technical change had negative impact on wages and salary ratio. In this context, the profit ratio should be distributed as per the marginal rule of economics such as the marginal productivity of labour and capital.


Author(s):  
Anna Watson

AbstractThe paper examines the impact of trade credit on cyclical fluctuations in international trade. It provides new empirical evidence based on firm-level UK and Irish data showing that exporters use trade credit more actively and intensively than non-exporters. The study introduces inter-firm lending into an open economy general equilibrium model with heterogeneous firms and endogenous entry into the exports market. It demonstrates that trade credit amplifies the impact of macroeconomic shocks on international trade both along the intensive and extensive margins and that it significantly contributes to the high trade income elasticity observed in the data.


Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.


2019 ◽  
Vol 52 (5) ◽  
pp. 933-952 ◽  
Author(s):  
David Morris ◽  
Enrico Vanino ◽  
Carlo Corradini

This paper contributes to the literature on regional productivity, complementing previous education and skill-level perspectives with a novel approach analysing the impact of regional skill gaps and skill shortages. This allows us to reflect the idiosyncratic needs of the regional economic structure better, considering both the demand and supply side of the skills equation in localised labour markets. Controlling for unobserved time-invariant firm-level heterogeneity and other region–industry effects across a longitudinal data set for the period 2008–2014, our analysis reveals a negative direct effect of skill shortages on firm productivity. We further find negative spillover effects for both skill gaps and skill shortages in related industries and proximate regions. Results are also shown to be heterogeneous with respect to agglomeration levels and industrial sectors. Stronger negative effects are found in industries defined by a knowledge-intensive skill base, pointing to the loss of learning effects in the presence of skill deficiencies. Conversely, agglomeration effects appear to moderate the impact of skill deficiencies through more efficient matching in the local labour market. The findings presented thus suggest that policies aimed at improving productivity and addressing the increasing regional productivity divide cannot be reduced to a simple space-neutral support for higher education and skill levels but need to recognise explicitly the presence and characteristics of place-specific skills gaps and shortages.


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