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Recruiting for Small Business Growth: Micro Level Evidence

PublicationArticle (with peer review)
Anton Gidehag, Företagandets villkor, Företagstillväxt, Kunskapsöverföring, Magnus Lodefalk, Produktivitet, Rekrytering, Småföretagande

Abstract

We examine the link between new employees in leading positions and subsequent productivity in small- and medium-sized enterprises (SMEs). Managers and professionals are likely to possess important tacit knowledge. They are also in a position to influence the employing firm. Exploiting rich and comprehensive panel data for Sweden in the 2001-2010 period and employing semi-parametric and quasi-experimental estimation techniques, we find that newly recruited professionals have a positive and statistically significant impact on the productivity of the hiring SME. For newly recruited managers there is no general link to the productivity of the hiring SME. We also find that professionals with experience from international firms and enterprise groups contribute the most to total factor productivity. Overall, the findings suggest the importance of mobility of key personnel for productivity-enhancing knowledge spillovers to SMEs.
Related content: Working Paper No. 280

Gidehag, A., & Lodefalk, M. (2017). Recruiting for Small Business Growth: Micro Level Evidence. International Review of Entrepreneurship, 15(2), 151-174.

Based on content

Recruiting for Small Business Growth: Micro Level Evidence
Artikel (med peer review)Publication
Gidehag, A., & Lodefalk, M.
Publication year

2017

Abstract

We examine the link between new employees in leading positions and subsequent productivity in small- and medium-sized enterprises (SMEs). Managers and professionals are likely to possess important tacit knowledge. They are also in a position to influence the employing firm. Exploiting rich and comprehensive panel data for Sweden in the 2001-2010 period and employing semi-parametric and quasi-experimental estimation techniques, we find that newly recruited professionals have a positive and statistically significant impact on the productivity of the hiring SME. For newly recruited managers there is no general link to the productivity of the hiring SME. We also find that professionals with experience from international firms and enterprise groups contribute the most to total factor productivity. Overall, the findings suggest the importance of mobility of key personnel for productivity-enhancing knowledge spillovers to SMEs.
Related content: Working Paper No. 280

The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector
Article (with peer review)Publication
Aldieri, L., Grafström, J., & Vinci, C. P.
Publication year

2021

Published in

Energies, 14(14), 4269.

Abstract

The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

Aldieri, L., Grafström, J., & Vinci, C. P. (2021). The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector. Energies, 14(14), 4269.

Spin-in and spin-out for growth – On the acquisition and divestiture of high-tech firms
Article (with peer review)Publication
Öberg, C.
Publication year

2021

Abstract

Purpose: This paper describes and discusses company spin-ins and spin-outs as a means to understand company growth in a dynamic context. The following question is asked: How can growth be understood in spin-ins and spin-outs of innovative firms? The paper suggests return on capabilities as a measure to understand growth in an open innovation context.

Design/methodology/approach: The empirical part of the paper consists of a single case study. Data was captured through interviews and secondary data sources.

Findings: The paper points to that resources alone do not explain strategic decisions by a company and how spin-ins and spin-outs result from the need for capabilities, changes in business foci and temporary solutions to deal with overcapacities or lack of alternatives.

Originality/value: The paper contributes to research by discussing contemporary issues in strategy and innovation and relating them to the resource-based view and the growth of the firm. Spin-outs, and acquisitions and divestitures as interlinked events have rarely been focused on in the literature, while they remain frequent phenomena in practice.

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