Projects / Programmes
How to speed up growth of Slovenian enterprises: Structural dinamisation, granularity, internationalisation and innovation
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S186 |
Social sciences |
International commerce |
| Code |
Science |
Field |
| 5.02 |
Social Sciences |
Economics and Business |
Firm growth, structural dynamisation, granularity, internationalisation, innovation
Researchers (19)
Organisations (3)
Abstract
Comparison of Slovenian corporate sector with corporate sectors of other EU countries exhibits a structural deficit in small and medium-sized enterprises. Therefore, to speed up aggregate growth of the Slovenian economy, it is necessary to increase the growth dynamics of Slovenian enterprises. The objective of the proposed project is to identify those factors of firm growth within enterprises themselves and in their macroeconomic and institutional environment that, in comparison to enterprises from other EU countries, impede faster growth of Slovenian enterprises, and factors that have the most positive impact on their growth.
The above objective puts the research in the context of the theory of firm growth. The purpose of our research can best be summarized by a combination of optimum size and resource-based theories of firm’s growth. On the one hand, resource-based theory says that firm growth depends on inherent factors within the firm, such as technology, skilled personnel, efficient procedures, brand names, trade contacts etc. and their efficient combination (organizational capabilities). On the other hand, the model of optimum firm size basically says that optimum size depends on a number of exogenous variables. Overview of existing empirical studies reveals the following determinants of firm’s growth: firm’s size, age, export propensity and broader internationalisation activity, firm owwnership, granularity (i.e. firm heterogeneity), R&D and innovation activity, human capital, and financial constraints. Firm level determinants act within industry specific factors, and relevant macro-economic and institutional factors.
In the first stage, we will estimate a model of firm growth in Slovenia and other EU countries with firm level / industry specific / macroeconomic and institutional factors of growth. In the second stage, the following specific issues of Slovenian firms' growth will be analysed in greater detail:
Structural dynamisation of Slovenian corporate sector via resource reallocation among firms and creative destruction.
- Impact of granularity on firms' growth, i.e. first and higher-order effects of demand shocks to large hub firms on economic activity across the economy.
- Intangible capital accumulation and the dynamics of SMEs’ growth.
- Relevance of trade (exports) diversification for the growth of Slovenian firms.
- Changed patterns of internationalisation and complex internationalisation strategies.
- Impact of firms' access to finance and indebtness on their growth.
- Impacts of human capital and its diversity on firm’s growth.
- Specific importance of various aspects of business environment for SMEs.
Primary source of data will be individual firm-level data: for EU, Amadeus and World Bank Enterprise Surveys; for Slovenia, data in the safe room of Statistical Office of Slovenia, where we combine the data of AJPES (financial statements of firms), Bank of Slovenia (related to foreign-owned firms in Slovenia in Slovenian firms investing abroad), Statistical Office (labour force data, innovation survey) and state aid data.
The novelty of the reaserch is reflected in the following aspects:
- The first research of this kind for Slovenia in a comparative EU setting that will analyse micro firm level factors (based on individual firm-level data), and macroeconomic and institutional factors of firm growth in a really complex way.
- Analysing the following specific aspects of firm growth, which have not yet been analysed systematically in Slovenian case: (i) granularity, (ii) structural dynamisation of corporate sector, (iii) intangible capital accumulation as a source of SMEs’ growth, (iv) changed patterns of internationalisation and complex internationalisation strategies, (v) trade (exports) diversification, (vi) human capital diversity (vii) firms’ own financial distress and debt spillovers, (viii) business environment of particular importance for SMEs.
Significance for science
- The first research of this kind for Slovenia in a comparative EU setting that will analyse micro firm level factors (based on individual firm-level data) and macroeconomic and institutional factors of firm growth in a really complex way. Combination of micro and macro factors is absolutely necessary for comprehending the importance of firm level determinants and of the systemic and policy framework for firm growth. The research will discern where Slovenia stands with its macroeconomic, systemic and policy framework in the EU context, as far as the environment for firm growth is concerned.
- Analysing the importance of the following specific aspects of firm growth, which have not yet been analysed in the Slovenian case or only to a very limited extent: (i) granularity, (ii) structural dynamisation of corporate sector, (iii) intangible capital accumulation as a source of SMEs’ growth, (iv) changed patterns of internationalisation and complex interntionalisation strategies, (v) trade (exports) diversification, (vi) human capital diversity (vii) firms’ own financial distress and debt spillovers.
- Based on individual firm level data, identification of those business environment barriers that are particulary demaging for the growth of small and medium sized enterprises. This is the first analysis of the kind for Slovenian enterprises.
- Placement of our findings in the global knowledge flow through our intensive international research co-operation via publication of research results in international journals and books.
- To create original data-bases and knowledge, i.e. valuable resources available also to other researchers as well as to policy makers, business analysts and managers.
Significance for the country
- The first research of this kind for Slovenia in a comparative EU setting that will analyse micro firm level factors (based on individual firm-level data) and macroeconomic and institutional factors of firm growth in a really complex way. Combination of micro and macro factors is absolutely necessary for comprehending the importance of firm level determinants and of the systemic and policy framework for firm growth. The research will discern where Slovenia stands with its macroeconomic, systemic and policy framework in the EU context, as far as the environment for firm growth is concerned.
- Analysing the importance of the following specific aspects of firm growth, which have not yet been analysed in the Slovenian case or only to a very limited extent: (i) granularity, (ii) structural dynamisation of corporate sector, (iii) intangible capital accumulation as a source of SMEs’ growth, (iv) changed patterns of internationalisation and complex interntionalisation strategies, (v) trade (exports) diversification, (vi) human capital diversity (vii) firms’ own financial distress and debt spillovers.
- Based on individual firm level data, identification of those business environment barriers that are particulary demaging for the growth of small and medium sized enterprises. This is the first analysis of the kind for Slovenian enterprises.
- Placement of our findings in the global knowledge flow through our intensive international research co-operation via publication of research results in international journals and books.
- To create original data-bases and knowledge, i.e. valuable resources available also to other researchers as well as to policy makers, business analysts and managers.
Most important scientific results
Interim report
Most important socioeconomically and culturally relevant results
