Secondee: Dr. Ching T. Liao, CUNEF University, Spain
Hosting Organisation: Lancey Energy Storage, France
Secondment period: 15/07/2024 – 31/08/2024
This report summarises the activities and findings of my six-week secondment to Lancey Energy Storage in Grenoble, France. During my secondment, I worked mainly on two studies, drawing on fruitful discussions with staff at Lancey Energy Storage and colleagues at the Grenoble Ecole de Management.
In the first study, I examine how the educational level of managers affects the productivity of firms operating in the informal sector. Using data from informal firms in three developing countries, I confirm that management practices and workers´ skills are the two underlying mechanisms. Identifying the relevant role of workers’ skills deepens our understanding of entrepreneurship in developing countries by challenging the conventional wisdom that human capital is irrelevant in the informal sector because informal firms mainly engage in low-level tasks. Understanding the driver of productivity in informal firms is consistent with the International Labour Organization’s policy orientation to pursue the decent work agenda, as informal firms provide livelihoods for billions of people. As productivity increases, informal firms are more likely to formalise and improve the working conditions of their workers. In addition, given the shortage of trained managers, the results of this study give governments a lever to improve the productivity of informal firms by focusing on developable factors, such as implementing management practices and the upgrading of workers’ skills. This is particularly important given the shortage of trained managers in the informal sector.
The second study aims to understand how diversity within the R&D team affects the ability of firms to introduce innovations that are environmentally friendly, often referred to as ¨green innovation¨. Existing research has focused mainly on gender diversity on boards and in top management, with less emphasis on the diversity of R&D teams. However, the literature suggests that companies with a diverse workforce are better positioned to implement a green innovation strategy. Using the Spanish part of the Community Innovation Survey, I measure the diversity of R&D teams in terms of gender, education, skills and geographical location. Preliminary analyses suggest that not all diversity is related to green innovation. The relationship between diversity and green innovation is complex. The study is ongoing, with further research to identify the mechanisms and refine the empirical model.
Overall, the six-week secondment to Lancey Energy Storage in France was productive. I was able to advance both studies through discussions with my colleagues at the Grenoble Ecole of Management, as well as gain a first-hand understanding of green innovation through interaction with staff at Lancey Energy Storage.