Daniela Maresch

When the difference makes a difference – the regional embeddedness of entrepreneurship

Abstract Regional determinants of new firm formation are of interest to researchers and policymakers. In the analysis of new firm formation, most studies use econometric approaches that mask intra-unit variations, not recognizing counterbalancing and dilution effects as a result. Recent advances in spatial statistics such as Geographically Weighted Regression (GWR) take local variations into account. However, these approaches operate only on a bivariate level, making it impossible to detect the homogenous parts of the area under examination with regard to a number of relationships between new firm formation and its determinants. Based on a sample of 412 German regions, we apply GWR and subsequent graph-partitioning clustering to identify multi-relationally homogeneous sub-areas. Being that the results suggest a four-cluster solution, ‘one size fits all’ policies and premature unit zoning can be called into question.

The Potential of Additive Manufacturing for Technology Entrepreneurship: An Integrative Technology Assessment

Additive manufacturing (AM) is likely to contribute considerably to key targets of innovation policy such as employment, R&D and education. The expectations of those engaged in AM, such as providers, users and policy makers, regarding the potential of this technology influence its future development and thus create opportunities for technology entrepreneurship. Therefore, these expectations need to be researched so that opportunities for technology entrepreneurship can be identified. Based on prospect theory, we employ an integrative approach to online‐based technology assessment. Using the outcome of a constructive technology assessment (CTA) as a reference, a comparison with the results of a traditional technology assessments (TTA) derived from the policy makers enables us to identify the need for action regarding the allocation of public resources. Further, the comparison of the outcome of our CTA with the TTA derived from the general public shows the need to establish a public opinion on AM that legitimizes AM‐related innovation policies. The approach of an integrative technology assessment proves useful, as we can deduce concrete recommendations for action on innovation policy based on our empirical findings.

Creditor protection, judicial enforcement and credit access

ABSTRACT We investigate the impact of the legal system on whether firms obtain the credit they apply for or not. Data comprise unique information provided directly by 48,590 firms from 11 European countries. We look at the strength of creditor protection, the strength of property rights, the time taken to resolve a dispute, the dispute resolution process’s costs and the number of procedures the plaintiff faces using data provided by the World Bank and the Heritage Foundation. The results suggest that the more efficient the judicial enforcement system is, and the higher the creditor protection is, the lower the probability that the firms are partially or totally denied credit. Our results are robust to selection bias (Heckman selection) as well as different controls and different estimation techniques. We find that these variables have considerable economic impact: the probability of obtaining credit is up to 40% higher in countries with more robust legal systems.

Loan managers’ decisions and trust in entrepreneurs in different institutional contexts

Abstract Loan managers’ trust in entrepreneurs can be a useful tool for overcoming entrepreneurial firms’ opaqueness. Nevertheless, the possibility for loan managers to leverage trust can be affected by differences in the regulative institutions within the banks (type of bank) and by place-bound normative institutions (social context). By relying on semi-structured interviews and a survey of 450 bank-entrepreneur relationships, this study finds that a positive impact of trust in lending relationships is sensitive to different place-bound normative institutions and to the regulative institutions within the banks. The results are robust with respect to potential endogeneity issues.

Does employment protection legislation affect credit access? Evidence from Europe

We investigate the impact of employment protection on firms credit access by looking at both credit obtained from banks and firms’ decision to apply for a loan. We find that greater flexibility in structuring the employees’ working hours and in dismissing employees increases the probability that firms obtain credit and that greater flexibility in dismissing employees decreases the probability that firms are discouraged from applying for credit. However, our findings also reveal that firms perceive regulations providing flexibility with regard to the employees’ working hours differently from banks, leading to a situation in which firms are more likely to be discouraged from applying for a loan, even though the probability to obtain a loan increases. Our results are robust to confounding, endogeneity, selection bias as well as to alternative specifications. JEL Classification: D22, G21, G32, J41

Neither a Borrower Nor a Lender Be! Loan Application and Credit Decision for Young European Firms

We investigate the impact of banks’ capability to recover a loan on firms’ propensity to apply for credit and on banks’ propensity to lend, looking at firms from eleven European countries. Our findings suggest that banks’ recovery rates negatively affect firms’ decisions to apply for credit but not banks’ decision to provide credit. We also find that the role of recovery rates differs in economically weak and strong contexts: high recovery rates discourage borrowers only in economically strong countries and have a positive impact on banks’ lending decisions in economically weak countries.

Much ado about nothing? Interest and non-interest products and services: Their impact on small banks’ margins

Abstract We investigate the impact of interest and non-interest products and services on the margin a bank can derive from a specific customer. The analysis is based on 4,277 observations of relationships between small cooperative banks and small and medium-sized enterprises (SME) in Finland from 2001 to 2005. The results show that only long-term loans significantly contribute to the bank’s margin, whereas short-term loans as well as other additional products and services do not affect the bank’s margin, and cash management services even seem to reduce the bank’s margin. The findings suggest that small cooperative banks did concentrate on their core business during the first years of this millennium, i.e. lending, instead of diversifying their activities to increase their margin. However, by taking only financial considerations into account, small cooperative banks might forget about the non-financial impacts of their decisions, which may involve a considerable loss of information about SMEs.

Entrepreneurship research without passion: Let's fall in love again

Institutionalization of the field and its impact on both the ethics and the quality of entrepreneurship research in the coming decades

Community marketing in social media – can marketers leverage Facebook groups of celebrities?

Social media networks (e.g., Facebook) have become a major factor influencing various aspects of consumer behaviour and have thus also become the targets of marketers. Social networks that gather special interest groups, such as celebrity fan groups, provide a particularly attractive point of leverage for community marketing. However, there remain open questions regarding the success of community marketing activities in social media. The present study attempts to close this gap by investigating whether 1 the image of the brand, and 2 the celebrity endorser credibility of a top sports team influence the perceived customer value of the sponsoring firm. Based on a survey of members of a Facebook fan group of an Austrian celebrity sports team (n = 322), we identify a direct positive impact of celebrity-centred community marketing in social media on customer value. Our findings emphasise the relevance of coordinated marketing activities that use social media to create customer value.