Business Survey Research Articles

Automation and the Workforce: A Firm-Level View from the 2019 Annual Business Survey

Automation and the Workforce: A Firm-Level View from the 2019 Annual Business Survey

On the Representativeness of the ifo Business Survey

On the Representativeness of the ifo Business Survey

KIET Manufacturing Business Survey Index (Bsi) for the 4th Quarter 2021

KIET Manufacturing Business Survey Index (Bsi) for the 4th Quarter 2021

A Study of Supply Chains of Korean Firms in Vietnam Based on Business Survey Data (2021)

A Study of Supply Chains of Korean Firms in Vietnam Based on Business Survey Data (2021)

“Российский экономический барометр”: опыт исследования рыночных реформ в России

The article is dedicated to the 30th anniversary of “The Russian Economic Barometer” – an independent research program being implemented under the auspices of the Institute of World Economy and International Relations. The program was launched in the end of 1991 with the purpose to conduct regular business surveys in order to compensate for the shortage of statistical data revealing changes in the behavior of the Russian industrial enterprises during economic transition. The article describes the distinctive features of REB data base which at present contains over 200 monthly indicators of enterprise performance and changes in the business environment. The main advantages of REB time series consist in the continuity of information gathering throughout a period of 30 years and immutability of the methodology for calculating indicators. The other advantages of REB data base are a short time span from conducting a survey to the data release and availability of indicators that are difficult or impossible to measure by conventional methods such as factors limiting output and investment, capacity and labor utilization rate, managers’ assessments of the current situation of their enterprises and expectations for the nearest future, their views on the overall economic situation and the economic policy of the government. Furthermore the authors outline the stages of the development of the research program, key studies and major achievements as well as current problems and challenges for the future. Special attention is paid to the evolution of the main end users of REB statistical information: from directors of enterprises – survey participants, to whom REB helped to cope with new realities at the early stage of the transition period, and foreign researchers, who experienced shortage of statistical information on developments in the Russian industrial sector – to the public authorities and scientific community of Russia which use REB statistics as a reliable source of independent data supplementing the official statistics. The regularly updated time series of REB indicators and analytical articles are published in the quarterly bulletin “The Russian Economic Barometer” available on the IMEMO website both in Russian https://www.imemo.ru/publications/periodical/reb-quarterly and in English https://www.imemo.ru/publications/periodical/reb-quarterly-eng.

An Analysis of the Relationship Between Housing Prices and Business Survey Index

This paper empirically analyzed the short-and long-term dynamic equilibrium relationship between housing price and business survey index, macroeconomic variables using cointegration analysis and ECM model as considering that psychological factors of economic subjects that cannot be explained by economic variables can affect housing price. The results of are as follow. First, the long-term equilibrium relationship between housing price and expectations showed a one-on-one relationship, with housing price rising 0.96% when economic subject optimistic expectations for the economy rose 1%. Second, in the short-term adjustment model between housing price and business survey index, housing price rose 0.021% when expectations rose 1%, while expectations rose 1.154% when housing price rose 1%. This means that a rise in housing price increases expectations more than a rise in expectations raises housing price. Third, the error correction term between housing price and business survey index was statistically significant, When housing price exceed the long-term equilibrium level, the return to equilibrium is found to be resolved by about 6% within a year. Therefore, there is a need to stably manage expectations in order to stabilize the housing market.

Working capital management routines in small German craft businesses: an empirical study of the drivers of implementation

Using data from a survey of small German craft businesses, this article sheds light on the drivers of working capital management (WCM) efforts of small enterprises and their relation with performance. Unlike previous studies, this article explicitly investigates the routines small firms undertake to manage their working capital (WC). Based on the argumentation of asset orchestration theory, factor and cluster analysis are applied to identify four distinct types of small businesses with regard to their WCM approach. Thereupon, several regression analyses are applied to identify the drivers of this differentiation. The results determine financial education and skill of individual personnel as the main driver of WCM routine implementation in small businesses. Firm age, willingness to grow in size, and ease of access to external funding are also affecting WCM undertakings. Considering performance, evidence indicates a positive association between the implementation of WCM routines and both liquidity and profitability.

Does membership of local Chambers of Commerce networks enhance rural SME performance?: An empirical analysis

PurposeLocal Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses, resulting in improved business performance. However, rural SMEs are less likely to participate in these networks and often possess lower performance. This paper aims to examine the relationship between being members of local Chambers of Commerce networks and rural SMEs’ performance by comparing business performance between rural SMEs who are members and non-members of local Chambers of Commerce networks. This paper also further explores difference in business growth plans between rural SMEs members and non-members.Design/methodology/approachThe empirical analysis draws on cross-sectional data of 3,769 rural SMEs in England and Wales from the UK's Government Longitudinal Small Business Survey 2015. Propensity score matching (PSM) is applied to control for selection bias and variations in business characteristics before comparing business performance, measured in terms of annual turnover, sale growth and profitability, between rural SMEs that are members and non-members of local Chambers of Commerce networks.FindingsOur results show that rural SME members of local Chambers of Commerce networks are more likely to grow their sales than non-members. However, they perform as good as non-members in terms of turnover and profitability. The results also emphasise that local Chambers of Commerce networks are crucial for rural SMEs to develop the skills of the workforce and leadership capability of managers, new product/service development and new working practices. Therefore, to enhance rural SMEs' performance, tailoring the services of local Chambers of Commerce to support rural businesses' needs and encouraging rural SMEs to make use of business networks are recommended.Practical implicationsThe paper unpacks the relationships between being local Chamber of Commerce membership and business performance, offering lessons for rural SMEs to boost their business performance and growth through participating in local business association networks.Originality/valueThis paper is the first study that explores the comparative analysis of business performance and growth plans between rural SMEs that are members and non-members of the local Chamber of Commerce networks. We provide an empirical evidence-based analysis to existing literature regarding the advantages of being local Chamber of Commerce memberships to enhance business performance in rural areas.

FAMILY FIRMS: COVID-19 CHALLENGES AND FUTURE OUTLOOK

The COVID-19 pandemic endangered the survival of many firms and emphasized the need to reevaluate corporate strategy. This paper studies the impact of the pandemic on family businesses and how it changed their strategy, priorities, and outlook. We use data from the PricewaterhouseCoopers (PwC) Family Business Survey 2021 that covers 2,801 family firms in 87 countries. Our study highlights some of the challenges family businesses faced during the pandemic and the need for an updated blueprint to ensure their long-lasting success. The survey draws attention to the financial resilience of family businesses and their unique advantages in terms of reputation and trust. However, it also underscores the need for family firms to adopt a more focused environment, social and governance (ESG) agenda, and to invest in technological transformation. The paper analyzes the congruity between academic research and CEO responses and forms a bridge between the academic literature on family firms and the real-world surveys of CEOs of family businesses conducted by PwC.

Estimation of Domain Means from Business Surveys in the Presence of Stratum Jumpers and Nonresponse

Abstract Misclassified frame records (also called stratum jumpers) and low response rates are characteristic for business surveys. In the context of estimation of the domain parameters, jumpers may contribute to extreme variation in sample weights and skewed sampling distributions of the estimators, especially for domains with a small number of observations. There is limited literature about the extent to which these problems may affect the performance of the ratio estimators with nonresponse-adjusted weights. To address this gap, we designed a simulation study to explore the properties of the Horvitz-Thompson type ratio estimators, with and without smoothing of the weights, under different scenarios. The ratio estimator with propensity-adjusted weights showed satisfactory performance in all scenarios with a high response rate. For scenarios with a low response rate, the performance of this estimator improved with an increase in the proportion of jumpers in the domain. The smoothed estimators that we studied performed well in scenarios with non-informative weights, but can become markedly biased when the weights are informative, irrespective of response rate. We also studied the performance of the ’doubled half’ bootstrap method for variance estimation. We illustrated an application of the methods in a real business survey.

Response Burden and Data Quality in Business Surveys

Abstract Response burden has long been a concern for data producers. In this article, we investigate the relationship between some measures of actual and perceived burden and we provide empirical evidence of their association with data quality. We draw on two business surveys conducted by Banca d’Italia since 1970, which provide a very rich and unique source of information. We find evidence that the perceived burden is affected by actual burden but the latter is not the only driver. Our results also show a clear link between a respondent’s perceived effort and the probability of not answering some important questions (such as those relating to expectations of future investments and turnover) or of dropping out of the survey. On the contrary, we do not find significant effects on the quality of answers to quantitative questions such as business turnover and investments. Overall, these findings have implications for data producers that should target the perceived burden, besides the actual burden, to increase data quality.

Is the German Mittelstand more resistant to crises?

In a globalized world with high international factor mobility, crises often spread quickly over large parts of the world. Politicians carry a vital interest in keeping crises as small and short as possible. Against this background we study whether the type of company of owner-managed SMEs, in Germany well-known as Mittelstand firms, helps increasing an economy’s crisis resistance. We study this issue at the example of the Great Recession of the years 2008/2009. Using micro panel data from the ifo Business Survey, we study the comparative performance of Mittelstand enterprises and find supporting evidence for the hypothesis that Mittelstand firms performed more stable throughout the Great Recession than non-Mittelstand firms. We also show that owner-managed SMEs performed significantly better than SMEs and owner-managed large enterprises. Thus, it is rather the combination of firm size and owner-management that leads to more crisis resistance.

Intersections of gender, ethnicity, place and innovation: Mapping the diversity of women-led SMEs in the United Kingdom

This article advances knowledge on the diversity and heterogeneity of women-led small and medium-sized enterprises (SMEs) in the United Kingdom by analysing how gender intersects with ethnicity and place to influence their engagement in innovation. We adopt an intersectional perspective, and base our analyses on the Longitudinal Small Business Survey (LSBS) data of 29,257 SMEs over the period 2015–2018. Our findings suggest that despite their limited number, as well as firm size and industry sector constraints, women-led SMEs are actively engaged in innovation activities. In addition, our results on the effects of intersecting categories of gender, ethnicity and place on innovation, further emphasise the heterogeneity of women-led SMEs, both with regard to their likelihood to engage in innovation, as well as the place where innovation is most likely to occur. Implications for policy and practice are highlighted.

How has the 2013 decoupled payment reform affected farmland rental values in Northern Ireland?

The degree of capitalisation of agricultural subsidies into land rents has been mainly determined by different payment implementation systems and land markets. The 2013 EU Common Agricultural Policy (CAP) reform introduces a transition of Single Farm Payment towards a flat rate system and entitlement reallocation. Based on 2009–2017 Farm Business Survey data, we used the Arellano-Bond dynamic panel data estimation technique to estimate the capitalisation impact of the 2013 CAP reform to decoupled payments (DP) in Northern Ireland (NI) where a short term conacre land rental system is dominant. Our estimates suggest that under the 2013 CAP reform in NI, the capitalisation of DP into land rental prices has continued even when entitlements are less than eligible land areas. Specifically, the marginal effect on rental rates of an additional pound of the DP is 22 pence, increasing to 43 pence following the 2013 CAP reform but only in the first year. Given that about one-third of land area is rented in NI, land capitalisation will be of particular relevance in designing more efficient future subsidy policies.

New Credit Drivers: Results from a Small Open Economy

ABSTRACT In developed economies, macroeconomic indicators such as unemployment and price indices tend to predict new credit expansion. We explore whether business and consumer surveys complement traditional macroeconomic variables in predicting new household and corporate loans in the following 3, 6, 9 and 12 months. Using monthly data for Slovakia, starting in 2009 and ending in 2019, we use Bayesian model averaging to examine 102 potential credit drivers. Our results show that, with the exception of interest rates and unemployment, traditional macroeconomic variables do not seem to drive credit market development. Instead, survey-based perceptions, calendar effects and policy uncertainty show relevant predictive power.

Optimising the Spatial and Production Input Features to Improve Efficiency of Hill Farm Production Systems

Integration of crop and livestock production systems (ICLS) represents a method for enhancing the sustainability of agricultural systems. Introducing more diversified farm production plans increases profitability and resilience by minimising the negative environmental impacts of agricultural production. Examining farm businesses located in Less Favoured Areas (LFAs) of England, we investigate how conversion into more integrated systems impacts on profitability. Thus, providing knowledge that can enable structural changes on the farm level towards enhancing financial performance and the sustainable intensification of the production system. Through Linear Programming (LP), four distinct optimisation scenarios are estimated, demonstrating the different dynamics between more specialised and more integrated-diversified (intensified) production systems. Data regarding physical and financial performances of 139 farm businesses were derived from the Farm Business Survey (FBS) for the accounting year of 2013–2014. Our findings suggest that there is a lot of potential for increasing profitability of hill farms through optimisation of ICLS. Policy interventions may accommodate productivity challenges within the LFAs via the construction of networks of transferrable knowledge to enable farmers gain knowledge on benefits emerging from ICLS. Hence, promote strategies and risk mitigation practises that could allow hill farmers to develop a sustainably intensified production system that is maximising the production capacity of the available natural resources.

Perspectives on Energy Insecurity and Its Impacts on Urban Livelihoods: Adaptation and Resilience of Women in the Informal Sector

Variability in temperature and precipitation due to climate change is predicted to significantly impact on Southern African countries' resources. These variations have the potential to affect the energy sector due to a heavy reliance on hydropower for electricity in the region. Energy insecurity is largely felt in cities as they are large consumers of the resource. This negatively impacts on urban livelihoods reliant on electricity like those in the informal sector. A survey of electricity dependent home-based informal businesses operated by women was conducted, to generate information on the vulnerability of urban livelihoods to energy insecurity in Harare, Zimbabwe. Households across all socio-economic backgrounds performed informal businesses to supplement household income and were heavily depended on the irregular electricity supply. Women from poor households managing informal businesses were disproportionately affected by the unstable electricity supply, as they could not afford alternative energy sources to continue business operations during power cuts. This accentuated their low adaptive capacity and vulnerability to climate change induced stresses. This paper brings to light the importance of improving the resilience and adaptive capacity of urban livelihoods to climate change related challenges like energy insecurity, whilst exploring climate-resilient energy options to sufficiently mitigate against the impacts of climate change on energy security.

Уровень доверия к безопасности финансовых технологий – барьер или точка роста

The article substantiates the importance of the existing level of trust in the security of financial technologies, which can act as both a barrier and a point of growth for their use. Some results of an all-Russian survey of citizens and businesses conducted by the Bank of Russia in 2021 to assess the level of confidence in the security of financial technologies and services are considered. The main areas of work of the Bank of Russia aimed at overcoming existing barriers and creating a high level of confidence in the security of financial technologies are outlined. Conclusions are made about the importance of coordinating efforts at the regional level aimed at increasing the cyber literacy of the population. It should be noted that the point of view of the authors of this article may not coincide with the official position of the Central Bank of the Russian Federation.

The unintended consequences of the pandemic on non-pandemic research activities

Research about the Covid-19 pandemic has taken center stage in shaping the work of many scholars, inter alia highlighting the importance of research in addressing the grand challenges humanity faces. However, the pandemic has also ushered in increased administrative, teaching and out of work commitments for many researchers, leading to concerns that academics will become less willing to invest time in obtaining resources to undertake non-Covid-related projects. Using a large-scale survey of business, economics and management researchers, coupled with their publication histories and additional institutional data, we examine how far individuals experienced the focus on the pandemic as ‘crowding out’ interest in, and undermining their confidence in applying for grants for work not focused on the pandemic. We found 40% of the sample agree that the pandemic has impaired their confidence in applying for non-pandemic-related grants and ‘crowded out’ other projects. Researchers with current and prior grants, particularly those with the most experience of holding grants, scholars whose work ‘impacted’ beyond academia, and early career researchers, disproportionately considered themselves to be most affected. We also found that researchers’ perceptions differed based on institutional characteristics. We discuss the implications of these findings for grant providers and national research agencies as well as for individual academic researchers and the institutions in which they work.

Forecasting GDP Growth Considering Crisis Shocks Based on Business Survey Results

The article analyzes the short-term effects of aggregate economic sentiment on the expected GDP growth in Russia based on the results of regular large-scale surveys of business activity of the Federal State Statistics Service (Rosstat) for the period 1998–2021. The main purpose of the study is to substantiate the predictive value of the opinions of economic agents in expanding macroeconomic information, especially during crisis periods. The authors aggregate quarterly information for the analyzed period on 18 indicators of surveys with a sample of about 24,000 organizations in basic kinds of economic activity and 5,000 consumers in all Russian regions in a composite economic sentiment indicator (ESI). Then, a statistical analysis of the time series of ESI and GDP growth is carried out, including the identifcation of the integrability order with testing for stationarity and the presence of causality between indicators. The authors prove the possibility of using a vector autoregression (VAR) model with dummy variables to measure the investigated relationship.The forecasting results reflect the interconnection of two time series with the response in the dynamics of the estimated variable (GDP growth) to the reaction of the business environment and the simulation of fluctuations in the ESI dynamics, which are set by the authors and correspond to the expected economic sentiments amid possible crisis changes. Probabilistic estimates of GDP growth until mid-2022 are based on scenario impulses in the ESI dynamics at the 3rd quarter of 2021, which differ in the amplitude and duration of their impact on economic growth, primarily due to coronavirus shocks. According to the results, under all scenarios for the development of business trends introduced by the authors, national economic growth can exceed by the middle of 2022 the pre-pandemic level of the 4th quarter of 2019 (102,9%).