Articles by Jarle Aarstad
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
Papers by Jarle Aarstad
Administrative Sciences
1) Background: Previous studies have shown that absenteeism is negatively associated with employe... more 1) Background: Previous studies have shown that absenteeism is negatively associated with employee-level performance, but we do not know how exactly absenteeism affects enterpriselevel performance. To bridge this knowledge gap, we investigate how average long-term absenteeism affects Norwegian enterprises' operating revenues and productivity. Also, we investigate if absenteeism decreases employment and whether operating revenues mediate the association. (2) Methods: We performed an enterprise-level dynamic unconditional quasi-maximum likelihood fixed-effects panel regression. (3) Results: The average share of long-term absenteeism nonlinearly decreases operating revenues and overall productivity at an increasing rate. The nonlinear effect may indicate deteriorating value creation among the share of employees largely not absent, but their productivity actually increases at an increasing rate. Thus, the overall findings indicate that the least productive employees first tend to opt out of the workforce, and as absenteeism increases, those subsequently opting out are otherwise increasingly productive. In parallel, those remaining in the workforce are increasingly productive. Absenteeism, moreover, decreases employment the following year, which is partly explained by revenue losses. However, enterprises cut their workforce due to factors beyond the impact of absenteeism on revenues.
Frontiers in Research Metrics and Analytics
Norwegian data show that from 2018 to 2020, enterprises in densely populated regions increased R&... more Norwegian data show that from 2018 to 2020, enterprises in densely populated regions increased R&D investments relative to those in sparsely populated regions, but not from 2016 to 2018. Therefore, COVID-19 likely induced the shift. The findings imply that densely populated regions have become more R&D-intensive, while sparsely populated regions have become less R&D-intensive during the pandemic. Small enterprises increased both R&D investments and employment from 2018 to 2020 relative to large enterprises and the analyses control for regression toward the mean effects. The findings were similar to those observed in the period from 2016 to 2018, which rules out COVID-19 as an explanation. Instead, the waves of data indicate a long-term trend where small enterprises increased R&D investments and employment.
Fishes
Background: There has been a strong focus on environmental sustainability in the aquaculture indu... more Background: There has been a strong focus on environmental sustainability in the aquaculture industry, but we do not know how firms in this industry emphasize the issue compared to firms in other industries. Methods: Responding to this research gap, we compared survey data of Norwegian firms in the (1) aquaculture industry with those in the (2) manufacturing industry, (3) the consulting, finance and insurance industry, and (4) the hospitality, tourism and culture industry. Results: We found that firms in the aquaculture industry emphasize environmental sustainability more than those in the other industries do. Likewise, firms in the aquaculture industry emphasize social sustainability more than those in the other industries do, but the difference is less marked. Across industries, knowledge-intensive firms emphasize environmental sustainability and social sustainability to a lesser extent. Additionally, firms with local or regional major ownership emphasize social sustainability mor...
Frontiers in Sustainability
This paper's major focus is to study if firms' emphasis on environmental and social susta... more This paper's major focus is to study if firms' emphasis on environmental and social sustainability has impacted how they have been affected by and responded to COVID-19. A survey of Norwegian firms across industries shows that those emphasizing environmental and social sustainability have had a relatively strong response to COVID-19, albeit not having been strongly affected. For firms in the aquaculture industry, the results are similar to those emphasizing environmental and social sustainability. Firms in the hospitality, tourism and culture industry and firms with international engagements have been strongly affected by COVID-19 and have also had a strong response. Firms with international ownership have been strongly affected but have not had a corresponding response. Overall, being strongly affected by COVID-19 does not always result in a corresponding response. Similarly, a strong response to COVID-19, being the case for firms emphasizing sustainability, is not always t...
Frontiers in Sociology
Panel data of Norwegian industries show that when they increase in the number of firms, firm size... more Panel data of Norwegian industries show that when they increase in the number of firms, firm size inequality in employees decreases. Decreasing firm size inequality implies that large firms become smaller in employees, and an increasing number of firms in an industry implies that more new firms are established than closed, i.e., ceasing to operate and going out of business. Thus, new firms chiefly recruit employees from large firms. Similarly, the data show that when industries decrease in the number of firms, firm size inequality in employees increases. Increasing firm size inequality implies that large firms become larger in employees, and a decreasing number of firms in an industry implies that more firms are closed than established. Thus, large firms chiefly recruit employees from firms that cease to operate. An implication of our findings is that large firms are crucial in recruiting employees to new firms and in recruiting employees from firms that cease to operate.
The International Journal of Entrepreneurship and Innovation, 2021
We study whether business incubator management collaboration with R&D milieus affects incubated e... more We study whether business incubator management collaboration with R&D milieus affects incubated entrepreneurs to also collaborate with R&D milieus in different regional contexts. Empirically, we analyse 281 Norwegian entrepreneurs in 32 different business incubators. Incubator collaboration with R&D milieus increases entrepreneur collaboration with R&D milieus in sparsely but not densely populated regions. Also, education level increases collaboration with R&D milieus (plus investor milieus and international customers). Entrepreneur collaboration with R&D milieus is positively associated with market orientation and perceptual performance but tends to delay enterprise development.
Centre for Applied Research at NHH På oppdrag fra Siva har Mohnsenteret for innovasjon og regiona... more Centre for Applied Research at NHH På oppdrag fra Siva har Mohnsenteret for innovasjon og regional utvikling ved Høgskulen på Vestlandet, sammen med Ideas2Evidence og Samfunnsog næringslivsforskning (SNF) gjennomført en midtveisvaluering av Inkubatorprogrammet og Næringshageprogrammet. Evalueringen dekker perioden 2012-2016. Inkubatorprogrammet skal ha et særlig søkelys på oppstartbedrifter med vekstpotensial, mens næringshageprogrammet inkluderer et bredere spekter av bedrifter. I vår evaluering finner vi at de lokale inkubatorene har et betydelig innslag av nystartede og ambisiøse virksomheter innenfor kunnskapsintensive bransjer, og at operatørene og bedriftene i hovedsak er lokalisert til sentrale områder. Næringshageprogrammet på sin side synes å oppfylle intensjonen om å være et virkemiddel «fortrinnsvis for distriktene», og det er en variert sammensetning av bedrifter knyttet til næringshagene. En betydelig del av de tilknyttede målbedriftene ser også ut til å ha potensial fo...
Journal of Destination Marketing & Management, 2020
This study examines whether tourism organizations influence each other to cobrand with the destin... more This study examines whether tourism organizations influence each other to cobrand with the destination brand as a function of the interorganizational network structure. Empirically, it combines questionnaire and interorganizational network data from a Norwegian region of winter sports destinations. By taking a dyadic level of analysis and examining 990 dyadic observations of tourism organizations, the study shows that central organizations' cobranding increases other less-central organizations' cobranding through direct or indirect collaboration. The findings further indicate that cobranding spreads (like ripples) from central to less-central organizations. Because of central organizations' strong cobranding and network proximity to other organizations, the study illuminates their importance as carriers of cobranding to other less-central organizations.
Journal of Risk and Financial Management, 2021
We address how independent variables of inherently different sizes across units, e.g., small vs. ... more We address how independent variables of inherently different sizes across units, e.g., small vs. large industries, in panel regression is an advantage interpretively. Analyzing a Norwegian industry panel, we find that wage inequality is a function of industry size, particularly size increase, in an absolute number of firms. A possible reason is that specialized skilled employees negotiate higher wages when there are many legal entities. The findings can also imply that wage inequality is more sensitive to random change, particularly an increase, in large rather than small industries. We conclude that particularly large industries are positive carriers of wage inequality and discuss potential underlying causal mechanisms such as monopolistic competition.
Economies, 2021
Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating ... more Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee.
Applied Economics Letters, 2020
Battery electric vehicles (BEVs) have gained popularity in Norway, chiefly due to generous tax in... more Battery electric vehicles (BEVs) have gained popularity in Norway, chiefly due to generous tax incentives. Using the synthetic control method, we study if BEVs' popularity has complemented or substituted for conventional new car sales. Comparing Norway with weighed control units from a donor pool of 16 other European countries between 1990 and 2018 as a counterfactual, we find that conventional new car sales since 2011 have fallen steeply in the country. Analyses also indicate that total new car sales have decreased since 2011. We conclude that BEVs substitute for conventional cars and probably even subtract total new car sales. An implication is that tax revenue loss from BEVs is probably higher than previously estimated, and the fleet of cars in Norway is probably older than in the absence of BEVs' generous tax incentives.
Sustainability, 2020
Today, there is strong pressure for firms, in Norway and abroad, to adopt green or sustainable st... more Today, there is strong pressure for firms, in Norway and abroad, to adopt green or sustainable strategies. Furthermore, many Norwegian firms, directly or indirectly dependent on the dominating but declining petroleum sector, face a further challenge as they have to enter new industries in search of market opportunities. We address these dual challenges and study how green and new industry strategies are a function of firm- and regional-level characteristics. Multilevel analyses of Norwegian survey data show that both green and new industry strategies are pursued by knowledge-intensive firms that are innovative and having interfirm innovation collaboration. Green strategies are pursued by large firms and firms localized in sparsely populated regions, but they are avoided by independent firms and firms having carried out layoffs. New industry strategies are pursued by small firms, firms with growth in employees, and firms having carried out mergers or acquisitions and cost reductions.
Papers in Regional Science, 2018
Despite that previous studies have examined factors that affect location decisions of enterprise ... more Despite that previous studies have examined factors that affect location decisions of enterprise R&D investments, they have not investigated if regional industry structures play a role. Responding to this research gap, we analyse data from Norway and find that location in regions with unrelated, diversified, and fragmented industry structures increases both the probability and amount of enterprise R&D investments. Location in regions with related and complementary industry structures, on the contrary, has no effect. We further find that location in populous regions spanning a large geographical area increases the probability of enterprise R&D investments.
Journal of Destination Marketing & Management, 2018
The paper investigates the association between tourism firms' imitation strategies and the interf... more The paper investigates the association between tourism firms' imitation strategies and the interfirm network structure in which they are embedded. In particular, it analyzes how imitation contributes to (1) tie formation and (2) clustered structures. It also tests reverse relationships; i.e. how tie formation and clustered structures cause imitation. The paper combines network and survey data within and across nine Norwegian destinations. Estimations with instrumental variables show that imitation is an effect, and probably also a cause, of the network structure. More specifically, clustered structures increase imitation, which increases firms' involvement and tie formation activities with other firms in the interfirm network. The study illustrates how the structureagency duality can be addressed in a tourism destination context.
Geoforum, 2016
The conceptual framework of local buzz and global pipelines has received much attention. It sugge... more The conceptual framework of local buzz and global pipelines has received much attention. It suggests that regional collaboration (local buzz) in particular will induce value creation if combined with international collaboration (global pipelines). Here, we analyze national data from Norway and find that both regional and international collaboration can foster product innovation. However, for medium-sized enterprises, we only found a substitution effect from combining regional and international collaboration. For small enterprises, there was even a subtractive effect. For large enterprises, we found an additive effect, and for very large enterprises, there was a multiplicative effect. It thus appears that large enterprises have an increased absorptive capacity in handling both regional and international collaboration. We conclude that the local buzz and global pipelines proposition is rejected for small and medium-sized enterprises, and gains partial to full support for large and very large enterprises.
Research Policy, 2016
We conduct multilevel analyses of Norwegian data and find that related industrial variety is a po... more We conduct multilevel analyses of Norwegian data and find that related industrial variety is a positive regional driver of enterprise innovation. Unrelated variety is a negative regional driver of enterprise productivity. This implies that regions with high levels of related variety and low levels of unrelated variety optimize enterprise performance. We argue that regional specialization is a two-dimensional construct inversely associated with related and unrelated variety. Thus, a specialized region (low in unrelated variety) is in fact a driver of enterprise productivity. In addition, we find that population density is another regional driver of enterprise productivity.
Journal of Innovation and Entrepreneurship, 2015
The focus in this paper is to study whether business incubation can provide entrepreneurial start... more The focus in this paper is to study whether business incubation can provide entrepreneurial start-ups with critical network resources. We make a distinction between incubator-provided network resources and start-ups' "own" external network resources that are unrelated to the incubator context. Although there has been an increasing number of studies examining incubated entrepreneurs' network resources, to our knowledge, this is the first study that explicitly compares incubator-provided network resources and start-ups' own external network resources. Analyzing the results from qualitative interviews with start-up tenants at a technology incubator in Bergen, Norway, we find that network resources acquired by the start-ups' own efforts (rather than network resources facilitated by an incubator) were most critical in all phases of enterprise development. They played a crucial role in terms of idiosyncratic (non-generic) knowledge generation as drivers of innovation, catalysts for financial contributors, and as a means to organizational reputation and market access. Nevertheless, internal networking with other incubator firms and external network resources facilitated by the incubator were also helpful and complementary, but they were more generic in nature and provided limited idiosyncratic resources. We also found that incubator network resources tend to have traits similar to those of identity-based network resources because they are not mainly governed by economic interests, but at the same time, they are not path-dependent. Inter-tenant network resources, therefore, can have nonbinding weak-ties properties and provide non-redundant information.
Annals of Tourism Research, 2016
SpringerPlus, 2015
The purpose of this short study was to identify the drivers of export orientation of firms in the... more The purpose of this short study was to identify the drivers of export orientation of firms in the subsea oil and gas industry in Western Norway. As the oil fields in the North Sea are approaching a stage of maturity, gaining knowledge of these drivers is crucial. An online survey was conducted of firms operating in the subsea oil and gas industry in the region. Consistent with previous research, the data reveal that product innovation and a majority share of international ownership increase firms' export rates. The use of instrumental variables indicates that both product innovation and international ownership are causes of subsea petroleum exports. The study moreover finds that subcontractors have a lower rate of direct exports than system providers, but international ownership in particular boosts subcontractors' export rates, probably by decreasing their market dependency on regional system providers. A clear recommendation for managers and stakeholders is that they should encourage foreign investments throughout the value chain. The results of such a strategy appear to be especially positive for subcontractors.
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Articles by Jarle Aarstad
Papers by Jarle Aarstad