Vincenzo Scrutinio: Managerial Input and Firm Performance. Evidence from a Policy Experiment (online)

FBK-IRVAPP is pleased to invite you to the following seminar: Managerial Input and Firm Performance. Evidence from a Policy Experiment.

With the participation of Vincenzo Scrutinio, University of Bologna.

The seminar is held in English.

Abstract 

We study the effects of a subsidy program designed to boost small and medium enterprises’ export capabilities through a Temporary Export Manager (TEM), hired for at least 6 months to provide consulting on how to reach foreign markets. Firms applied online for the subsidy and vouchers to hire TEMs were allocated on a first-come, first-served basis. We use a difference-in-differences design to compare the performance of firms that nearly got the subsidy with those that barely did not. Eligible firms experienced a large increase in revenues, return on equity, profits and value added per employee, accompanied by a significant growth in export in extra-EU markets four years after receiving the subsidy. The gains were larger for the least productive and smaller firms and effects were heterogeneous across TEM providers. TEMs were also effective in stimulating `good’ labor demand: besides intensifying exports, firms increased their workforce by nearly 13%, mainly in full-time and permanent employees. Results of a survey conducted on TEM providers suggest that collaboration between beneficiary and providers persisted after the initial contract and that the availability of other services such as support for digitalization was associated with larger improvements in performance for the beneficiary firms.