Template-Type: ReDIF-Article 1.0 Author-Name: Tine Lehmann Author-X-Name-First: Tine Author-X-Name-Last: Lehmann Author-Name: Carola Jungwirth Author-X-Name-First: Carola Author-X-Name-Last: Jungwirth Title: Clusters as an adaptable regional development measure to mitigate perceived competitive disadvantages Abstract: European public policy is intensively supporting clusters as instruments for regional development. Clusters seem to be ubiquitous across Europe. However, economic conditions and institutional constraints in European regions differ substantially. This paper analyses which competitive disadvantages local companies perceive and how the offered cluster services are tailored to address these perceived problems. With the value adding web perspective we analyse two groups of economically weaker regions: transition economies and structurally weaker regions in non-transition economies. We show that the perceived competitive disadvantages differ essentially. Companies in transition economies mainly face obstacles that are rooted in institutional voids. Companies in structurally weaker regions are confronted with blind spot disadvantages. The article demonstrates, that clusters are adaptable to perceived disadvantages and blind spot disadvantages are perceived as 'less important' local problems. This contributes to recognise clusters as a tool to spur regional development and to the debate on smart specialisation of regions. Journal: Int. J. of Globalisation and Small Business Pages: 105-126 Issue: 2 Volume: 10 Year: 2019 Keywords: cluster; regional development; institutional voids; blind spots; competitive disadvantage; organisational change; changing institutional environments. File-URL: http://www.inderscience.com/link.php?id=97928 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:2:p:105-126 Template-Type: ReDIF-Article 1.0 Author-Name: Anastasiia Konstantynova Author-X-Name-First: Anastasiia Author-X-Name-Last: Konstantynova Title: Cluster policy change and evolution: facilitating regional smart specialisation and economic development Abstract: Cluster policy is a process of different activities that has been globally in place for more than 20 years. Lately, the importance of context specific policies has its comeback. Therefore, an understanding of the evolution of cluster policy is particularly relevant for tailoring it to territory-specific needs. For this, a theoretical framework based on matrix of key components was developed. Two case studies were undertaken to develop in-depth insights about cluster policy, its evolution and change: The Basque country (Spain) and Upper Austria. The research findings indicate that both regions' cluster policies have evolved along similar evolutionary stages and have been transformed from being regional technology-driven cluster policy to a regional smart specialisation cluster-based innovation strategy. This outcome stresses the evolutionary dimension of policy and the need to adjust territorial activities to the specific cluster and territorial conditions. A number of applied policy recommendations for managing institutional change are illustrated. Journal: Int. J. of Globalisation and Small Business Pages: 127-142 Issue: 2 Volume: 10 Year: 2019 Keywords: cluster policy; regional development; industrial specialisation; institutional change. File-URL: http://www.inderscience.com/link.php?id=97929 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:2:p:127-142 Template-Type: ReDIF-Article 1.0 Author-Name: Annika Ludwig Author-X-Name-First: Annika Author-X-Name-Last: Ludwig Title: From free to fee: a behavioural perspective on why companies avoid paying for cluster services Abstract: Clusters and cluster policy are central to smart specialisation strategies across Europe. Smart specialisation strategies can succeed only when their fundament, namely the clusters, survive in the long run. Whether clusters manage to survive strongly depends on their ability to uncouple from initial public funding. This is the current problem of clusters and cluster policy, since companies are not willing to contribute to the clusters with an adequate level of payments. This article critically discusses why clusters struggle to overcome extreme changes in their funding policy by shedding light on why member companies avoid paying for cluster membership and services and by offering possible explanations for companies' behaviour as well as problem-solving strategies for cluster managers and politicians. Based on the classical net value concept, this article discusses various behavioural and economic perspectives that help shed light on the phenomenon. Journal: Int. J. of Globalisation and Small Business Pages: 143-162 Issue: 2 Volume: 10 Year: 2019 Keywords: pricing strategy changes; behavioural pricing strategies; smart specialisation; cluster policy; initial public funding. File-URL: http://www.inderscience.com/link.php?id=97930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:2:p:143-162 Template-Type: ReDIF-Article 1.0 Author-Name: Birgit Leick Author-X-Name-First: Birgit Author-X-Name-Last: Leick Title: Steering through tough times? Insights into strategic change processes of small firms in the context of demographic challenges Abstract: Market transformations induced by demographic change challenge the strategy-formation of small firms because they are complex, hard to predict and slowly evolving. Demographic change therefore represents a context of market crisis and turbulences, requiring the adaptation of business strategies. This article explores the strategic change processes of small firms in Germany in the light of demographic change particularly with regard to changing regional sales markets. Conceptually, it is informed by various perspectives on the strategy-formation and strategic adaptation of small firms in dynamically changing environments. Empirically, a mixed-method approach with qualitative case study and descriptive data analysis is used, which covers firms in different German regions affected by demographic change. The findings suggest that market leadership and market expansion are the most important adaptive business strategies. Gradual divestment as a partial market exit strategy is typically not chosen, and, if so, embedded in a local business networking strategy. Journal: Int. J. of Globalisation and Small Business Pages: 163-186 Issue: 2 Volume: 10 Year: 2019 Keywords: strategic change; strategy-formation; small firms; demographic change; adaptive strategies. File-URL: http://www.inderscience.com/link.php?id=97931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:2:p:163-186 Template-Type: ReDIF-Article 1.0 Author-Name: Elmar Lins Author-X-Name-First: Elmar Author-X-Name-Last: Lins Title: When do subsidies facilitate high-tech firms' access to venture capital? An examination of cross-national and national grants Abstract: This study addresses the key question of how grant-based subsidies might serve differently as quality certificates for new technology-based firms (NTBFs) when trying to raise venture capital (VC). Therefore, we distinguish between cross-national, national, and sub-national subsidies. Based on the data of 1,568 German NTBFs, we apply a non-parametric matching procedure to control for the endogenous nature of subsidy reception. Our results show that cross-national grants have a strong certification effect, which reduces the information asymmetry between NTBFs and VC providers to the benefit of the new venture. Similarly, sub-national grants, awarded by regional government authorities, exhibit the same certification effect butless pronounced compared to cross-national grants. No significant effect can be observed for national subsidies. Journal: Int. J. of Globalisation and Small Business Pages: 191-209 Issue: 3 Volume: 10 Year: 2019 Keywords: public subsidies; grants; subsidies; cross-national subsidy; national subsidy; venture capital; venture capital access; new ventures; high tech start-ups; technology based firms. File-URL: http://www.inderscience.com/link.php?id=100119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:3:p:191-209 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio D'Amato Author-X-Name-First: Antonio Author-X-Name-Last: D'Amato Title: How did the global financial crisis impact the determinants of SMEs' capital structure? Abstract: While there is sufficient evidence that a crisis impacts lending behaviour and corporate leverage, the literature on the effects of the global financial crisis on small and medium-sized enterprises (SMEs') capital structure is limited if not absent. This paper aims to analyse how and to what extent various macroeconomic states impact the capital structure determinants of SMEs. Based on a comprehensive dataset of Italian SMEs during the 2006-2016 period, we use a fixed effects panel approach to examine SMEs' capital structure decisions before, during and after the 2008 financial crisis. Our results show that the financial crisis negatively affected SMEs' financial leverage, as the total debt ratio significantly declines in our sample period. However, we also find that the financial crisis negatively impacted trade credit, given that it does not substitute for the reduction of credit from financial institutions. Finally, the impact of capital structure determinants significantly changed during and after the crisis compared to the pre-crisis levels. Our results indicate that compared to the pre-crisis period, profitability, profit volatility and liquidity are the main determinants of the total debt ratio during and after the crisis. These results have implications for firms and policy makers. Journal: Int. J. of Globalisation and Small Business Pages: 210-232 Issue: 3 Volume: 10 Year: 2019 Keywords: capital structure; financial crisis; small and medium-sized enterprises; SMEs. File-URL: http://www.inderscience.com/link.php?id=100121 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:3:p:210-232 Template-Type: ReDIF-Article 1.0 Author-Name: Matteo Rossi Author-X-Name-First: Matteo Author-X-Name-Last: Rossi Author-Name: Elvira Martini Author-X-Name-First: Elvira Author-X-Name-Last: Martini Title: Venture capitalists and value creation: the role of informal investors in the growth of smaller European firms Abstract: In the last few decades, the innovation process has involved research systems, production systems, and governmental/institutional systems (Etzkowitz and Leydesrdoff, 1998, 2000; Fagerberg et al., 2005; Chesbrough, 2006). In this new context, both formal and informal investors - banks, business angel investors, venture capitalists, and corporate venture capitalists - play an important role. The aim of this paper is to analyse the particular role of venture capitalists (henceforth, VCs) in the innovation system, with a specific focus on new, small, innovative firms in the European context. This research is based on secondary data (Boston Consulting Group, 2015; DealRoom, 2018a, 2018b). The paper can be defined as a descriptive paper, and it attempts to illustrate a phenomenon. The limitations of the paper are a consequence of its very nature, i.e., the fact that it is largely conceptual and based on a secondary data. Journal: Int. J. of Globalisation and Small Business Pages: 233-247 Issue: 3 Volume: 10 Year: 2019 Keywords: venture capital; value creation; firm performances; innovation process; Europe. File-URL: http://www.inderscience.com/link.php?id=100123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:3:p:233-247 Template-Type: ReDIF-Article 1.0 Author-Name: Catherine R. Macaulay Author-X-Name-First: Catherine R. Author-X-Name-Last: Macaulay Title: Smaller firms and public equity: new platforms with old problems Abstract: Paradoxically, while numbers of listed companies are declining in advanced economies, new equity markets for small and medium-sized enterprises (SMEs) are being developed and recommended as an alternative way of raising capital. This paper contests the conventional wisdom that persistently low levels of public listing represents deficiencies of market design and presents publicly traded equity as fundamentally unsuitable for SMEs due to inherent structural flaws. It begins with the controversial origins of publicly traded equity and finds that developing other investment channels in a culture of 'direct investment in enterprise' would be more beneficial to both SMEs and economies than the development of an 'equity culture' with its associated unproductive trading. In particular, internal funding, recognised as a widespread SME financing preference and common denominator of successful small firms, is found worthy of further examination for opportunities and efficiencies rather than dismissal as an inconsequential or temporary financing method. Journal: Int. J. of Globalisation and Small Business Pages: 248-277 Issue: 3 Volume: 10 Year: 2019 Keywords: small and medium-sized enterprises; SME; financial markets; publicly traded equity; public corporations; stock market; equity market; investment platforms; corporate bonds; secondary markets; internal finance; external finance. File-URL: http://www.inderscience.com/link.php?id=100125 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:3:p:248-277 Template-Type: ReDIF-Article 1.0 Author-Name: Giuseppe Festa Author-X-Name-First: Giuseppe Author-X-Name-Last: Festa Author-Name: Gerardino Metallo Author-X-Name-First: Gerardino Author-X-Name-Last: Metallo Author-Name: Maria Teresa Cuomo Author-X-Name-First: Maria Teresa Author-X-Name-Last: Cuomo Author-Name: Mario Situm Author-X-Name-First: Mario Author-X-Name-Last: Situm Title: Crowdfunding in wine business as financing opportunity for smaller wineries Abstract: Crowdfunding is an innovative form of financial support for enterprises, most of all when smaller and engaged in ethical/sustainable issues. This is true also for wineries: in fact, they are ideal subjects for crowdfunding experiments, especially if active also in vine cultivation. Very few platforms, however, are currently available especially for wine crowdfunding: one of the most important is Fundovino, whose so far accomplished projects provide no recourse to dividend from equity, but recourse to in-kind return (above all wine, of course). In other platforms, wine crowdfunding could find attraction also in equity (e.g., WineFunding), but in every circumstance of wine crowdfunding a sentiment of involvement/engagement/commitment of the backers seems present, as clearly emerges from the investigation on Fundovino as case study. The research, with exploratory nature, analyses the possible mix of reward (how), together with the presumable expectations of the backers (why), for wine crowdfunding projects with non-equity finality. Journal: Int. J. of Globalisation and Small Business Pages: 278-292 Issue: 3 Volume: 10 Year: 2019 Keywords: crowdfunding; wine business; financial support; small and medium-sized enterprises; SMEs; smaller wineries. File-URL: http://www.inderscience.com/link.php?id=100126 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:3:p:278-292 Template-Type: ReDIF-Article 1.0 Author-Name: Jalleh Sharafizad Author-X-Name-First: Jalleh Author-X-Name-Last: Sharafizad Title: Influence of mentors on networking behaviour of small business owners: a conceptual framework Abstract: The core purpose of this paper is to review the literature on networks and networking in relation to mentors within the small business context. The method was a review of literature including research and case studies related to mentors and networks and networking within the small business context from various databases. This literature review presents six propositions and a research framework for future studies in these areas where gaps are identified. New directions offered include: 1) examining the influence of mentors on small business owners' networks (structure, interaction and content) during different stages of network formation for both planned and accidental, or one off interactions; 2) researching the influence of mentors on the two main types of barriers to networking: operational and psychological barriers; 3) whether mentors can affect the success of inter-firm networks between a small business and other businesses. Journal: Int. J. of Globalisation and Small Business Pages: 298-323 Issue: 4 Volume: 10 Year: 2019 Keywords: small business; small business owners; networks; networking; social network theory; SNT; mentors; mentoring. File-URL: http://www.inderscience.com/link.php?id=103581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:4:p:298-323 Template-Type: ReDIF-Article 1.0 Author-Name: Antonino Galati Author-X-Name-First: Antonino Author-X-Name-Last: Galati Author-Name: Antonio Tulone Author-X-Name-First: Antonio Author-X-Name-Last: Tulone Author-Name: Salvatore Tinervia Author-X-Name-First: Salvatore Author-X-Name-Last: Tinervia Author-Name: Maria Crescimanno Author-X-Name-First: Maria Author-X-Name-Last: Crescimanno Title: The role of internal resources in the competitive positioning of Sicilian wine cooperatives Abstract: The paper is an original article that uses accounting frameworks to determine what creates a competitive advantage in a cooperative business model. In particular, it investigates the influence of tangible, intangible and financial resources on the business performance of cooperatives operating in the Sicilian wine industry, with the RBV of the firms as a theoretical background. Using a linear regression model, our results show that tangible and financial resources are a source of a sustained competitive advantage. This study fills the gap existing in the strategic management literature related to the role of resources, tangible and intangible, in the cooperative system, providing both theoretical and practical implications. Journal: Int. J. of Globalisation and Small Business Pages: 324-337 Issue: 4 Volume: 10 Year: 2019 Keywords: tangible resources; intangible resources; resource-based view; RBV; wine industry; competitive advantage; econometric model. File-URL: http://www.inderscience.com/link.php?id=103582 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:4:p:324-337 Template-Type: ReDIF-Article 1.0 Author-Name: Ingridi Vargas Bortolaso Author-X-Name-First: Ingridi Vargas Author-X-Name-Last: Bortolaso Author-Name: Jorge Renato Verschoore Author-X-Name-First: Jorge Renato Author-X-Name-Last: Verschoore Author-Name: Giovanni Battista Dagnino Author-X-Name-First: Giovanni Battista Author-X-Name-Last: Dagnino Title: Regional strategic networks in southern Brazil Abstract: Regional strategic networks (RSNs) are long-term purposeful arrangements among firms that cooperate and compete in a regional context allowing them to win or sustain a competitive advantage. RSN coopetitive strategy requires an open approach with inclusiveness of members and internal transparency of the formulation and implementation processes. This open approach of a coopetitive strategy raises questions concerning the outcomes of RSNs. How does strategic openness affect the outcome of RSNs? What are the outcomes of an open strategy formulation and open strategy implementation? This paper focuses on the effects of greater strategy openness on the outcomes of RSNs. To achieve this goal, the study follows a quantitative exploratory survey based on 150 firms associated to 50 RSNs established by a regional public policy in southern Brazil. The unit of analysis of this study are the RSN. Results indicate that an open approach supports the RSNs' coopetitive strategy and ultimately affects their collective outcomes. Results also show a significant relationship between the member inclusion and internal transparency of the strategy process and the networks' outcomes. Journal: Int. J. of Globalisation and Small Business Pages: 338-358 Issue: 4 Volume: 10 Year: 2019 Keywords: regional strategic networks; RSNs; open strategy; coopetition; networks; small firms; Brazil. File-URL: http://www.inderscience.com/link.php?id=103586 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:4:p:338-358 Template-Type: ReDIF-Article 1.0 Author-Name: Sidsel Grimstad Author-X-Name-First: Sidsel Author-X-Name-Last: Grimstad Author-Name: Jennifer Waterhouse Author-X-Name-First: Jennifer Author-X-Name-Last: Waterhouse Author-Name: John Burgess Author-X-Name-First: John Author-X-Name-Last: Burgess Title: 'Creating a little bit of La Dolce Vita'. Explaining resilience and transformation in the Hunter Valley wine region, NSW, Australia Abstract: Using the Hunter Valley wine region as a case study, this paper examines how a region, renowned internationally for specific wine varieties, reinvents itself through becoming a gastronomic landscape. Using a case study approach, this paper identifies, through qualitative data how, in spite of being a small national producer, the Hunter Valley still strongly identifies with and protects its wine-region identity. The importance of having regional identity 'custodians' such as the old wine families that ensure that the landscape maintains the rural aesthetic, creates embedded institutions that benefit both old and new entrants. While new entrants may be considered a risk, they also provide a continuous stream of creative solutions and investments, leading to continuous improvement of quality and luxury provision of wine and gastronomy sensory experiences. Hunter Valley wine-tourism actors have contributed to its resilience through simultaneously maintaining a strong wine region identity, while at the same time using this as a means to regenerate itself into a gastronomic landscape where lifestyle, food, wine and tourism complement each other. Through this the Hunter Valley manages to maintain its lead among the top Australian destinations for both national and international wine and food tourists. Journal: Int. J. of Globalisation and Small Business Pages: 359-380 Issue: 4 Volume: 10 Year: 2019 Keywords: regional renewal; regional resilience; regional transformation; wine regions; gastronomy tourism; Australia; Hunter Valley. File-URL: http://www.inderscience.com/link.php?id=103589 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijgsbu:v:10:y:2019:i:4:p:359-380