Skip to main content
main-content

Über dieses Buch

This book contributes to the microeconomics of growth among SMEs in less-developed countries. It begins with an overview of the Kosovo economy, and takes the case of Kosovo to explore the dynamics and determinants of firm growth. The author does this by exploring dynamics of firms' creation; survival and exit; organisational capabilities of firms; and looks at how external (environmental) factors affect firms' growth. The author pays special attention to innovation capabilities. This study makes a major contribution to European Studies by dealing for the first time with economic development in Kosovo.
This book will be of relevance to development specialists including policy makers, researchers, consultants, students, and field staff of donor organisations active in Kosovo, the wider Balkan region and other low-income countries. It will also be of value to policy makers working in fields of economic development, entrepreneurship, industrial policy and innovation policy, and European and EU studies.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract
The book addresses the important theme of which factors enable and constrain firm growth in less-developed economies. The empirical evidence used for the analysis is related to Kosovan firms, but the findings are presented in the wider context of developing economies. However, there are no other published works addressing the specific context of Kosovo. Although Kosovo is a small country, it became headline news due to its centrality in a major war in Europe. Its geopolitical importance and the unresolved nature of the conflict between Kosovo and Serbia, which might very well erupt again, mean that economic development and job creation in Kosovo are issues deserving of more attention than received so far in the current scholarly literature.
Fadil Sahiti

Chapter 2. Economic Profile of Kosovo: Problems and Challenges

Abstract
Kosovo is the youngest independent country in Europe. It declared independence on 17 February 2008. In July 2010, the International Court of Justice (ICJ) confirmed that Kosovo’s declaration of independence did not breach international law. Despite its economic potential, rich natural resources base and fertile agricultural land, Kosovo, traditionally, has been the least developed and poorest region in the Yugoslav federation. The World Bank classifies Kosovo in the group of lower-middle-income economies. Kosovo’s production capacities are generally considered underdeveloped and its economy relies on consumption, investment in infrastructure and, especially, remittances. Its economy is small, consumption-driven, and dominated by the services and a fairly large agricultural sector. Although Kosovo has achieved some major advances towards building an institutional, regulatory and financial framework conducive to SME development, the problem remains one of implementation of these measures.
Fadil Sahiti

Chapter 3. Firm Growth Factors: A State of the Art Review and Research Issues

Abstract
Factors that enable and constrain firm growth are one of most widely studied topics in the economic literature. The impact of firm growth on economic development, employment and innovation activities is the main reason for this major interest. The literature addressing determinants of the business environment is large and offers numerous important insights into the role of institutions in firm growth. However, despite a large body of work on firm dynamics and their influence on growth for firms in developed economies, the evidence for less-developed economies is scarce. This literature review shows that evidence is particularly scant in relation to explaining the role of firms’ internal capabilities in firm growth, in a less-developed country context. In addition, although the effect of social conditions on the emergence of innovative firms is relatively recent, few academic works explore the social conditions needed to enable the emergence of firms with innovation capabilities.
Fadil Sahiti

Chapter 4. Measuring Business Dynamics in Kosovo: Cross-Country Comparison and Analysis

Abstract
The focus of analysis is on the pattern of firm dynamics among incumbent, newborn and exiting firms, and on the survival probabilities of firms that operate in less developed economic settings. Specific emphasis is put on tracking cohorts of newly born enterprises during a five-year period, that is, tracking firms that entered in market during 2010–2015. The findings for the Kosovo economy are compared to the findings for five comparator countries. Specific attention is paid to investigating the association between countries’ institutional characteristics and firm creation and survival over time.
Fadil Sahiti

Chapter 5. An Analysis of the Business Environment in Kosovo Using Growth Diagnostics Approach

Abstract
The empirical literature highlights various business environment factors that affect rates of private investment and entrepreneurship as drivers of economic growth. Most of these factors belong to one of the following dimensions: human and physical infrastructure; legal and regulatory institutions (understood as the rules of the game in which firms engage, and the organizations that implement these rules and services); and the quality of the financial system (e.g., cost of and access to finance). Using information from various international and national sources, this chapter examines not only the set of constraints on firm growth but also which among these constraints is the most binding.
Fadil Sahiti

Chapter 6. Resources, Capabilities and Managerial Practices of Firms in Less-Developed Economies: Evidence from Kosovo Manufacturing Firms

Abstract
This chapter investigates the impact of firm specific resources, organizational capabilities and managerial practices on performance variation among manufacturing firms in less-developed economies, based on evidence for Kosovo. The aim is to identify the main factors differentiating high- and low-growth firms. The analysis focuses on three types of factors: inputs (resources), organizational capabilities and managerial practices. We expect the main differentiator in less-developed countries to be resources (inputs), followed by managerial practices and organizational capabilities. The results show that, resources (inputs) play a limited differentiating role while managerial practices appear crucial for performance variability. Organizational capabilities are also a factor influencing performance variability, but their effect is more truncated.
Fadil Sahiti

Chapter 7. Social and Economic Conditions and Firm Growth

Abstract
Firms operate in particular social contexts, characterized by the national, social and economic institutions, which influence the social conditions of innovative activity. Governance institutions have an effect on strategic control, employment institutions influence organizational integration and investment institutions shape financial commitment. This chapter examines whether these social and economic factors matter for the emergence of innovative firms in a less-developed economy context. This is an important aspect since the social conditions are variables that can be influenced by government policies and managers.
Fadil Sahiti

Chapter 8. Conclusions on the Growth of Firms in Less-Developed Countries

Abstract
Drawing on the results obtained from the analysis, this book argues that firm growth is not just a macro or micro issue, but derives from the interactions among both macro and micro factors. For this reason, the investigation focused on the integration of different perspectives to understand the macro and micro factors involved and how they affect firm growth. We applied different frameworks to improve (illuminate) our understanding of these macro and micro interactions in the context of firm growth in a less-developed economy such as Kosovo.
Fadil Sahiti

Backmatter

Weitere Informationen

Premium Partner

    Bildnachweise