Small Business Context Research Articles

Impact of Socio-cultural Factors on the Development of Entrepreneurship: A Case Study of Belagavi City of Karnataka State

This research investigates the defining traits of successful entrepreneurs, specifically within the context of small and medium-scale businesses in Belgaum. It explores the influence of personal attributes such as personality traits, family business background, upbringing, and the role of community support in shaping entrepreneurial ambitions and actions. Utilizing a mixed-methods approach, the study employs comprehensive content analysis alongside thematic analysis of qualitative data derived from semis-structured interviews with Belgaum-based entrepreneurs aged between 25 and 45. These methods facilitate the examination of psychological factors like self-efficacy, and risk-taking behaviour, as well as the impact of social networks and environmental upbringing on the development of entrepreneurial traits and skills. The interviews provide a platform to uncover detailed themes and pathways that lead to entrepreneurial skill acquisition and refinement, offering insights into the early stages of psychological development conducive to entrepreneurial success. The research's findings contribute to a deeper understanding of the complex interplay between an entrepreneur's personal and social environment and their success in business ventures. Through its exploration of these dimensions, the study aims to enrich the literature on enterprise management and entrepreneurship, particularly in the realm of small and medium-sized businesses in emerging markets like Belgaum.

Sustainable practices in last-mile logistics of small Brazilian e-retailers: an analysis using an MCDM approach

ObjetivosEl objetivo es contribuir al desarrollo de estrategias mediante la identificación de prácticas sostenibles. Por lo tanto, la investigación tiene un doble objetivo: revelar las prácticas de sostenibilidad integradas en las actividades logísticas de última milla de minoristas de comercio electrónico, analizar las interrelaciones entre estas prácticas y categorizarlas según su importancia para los pequeños minoristas de comercio electrónico en Brasil.MetodologíaSe llevó a cabo un mapeo de la literatura para identificar prácticas de sostenibilidad en las actividades de última milla adoptadas por minoristas en línea, lo que llevó a la propuesta de un metamodelo. Un total de 67 artículos forman parte de la muestra final. Posteriormente, el estudio aplicó la técnica de toma de decisiones multicriterio Decision-Making Trial and Evaluation Laboratory (DEMATEL) para estructurar el problema de investigación mediante análisis de causa y efecto entre las prácticas, con el objetivo de priorizar las prácticas críticas.ResultadosEl resultado indica una fuerte dependencia de prácticas económicas para implementar la sostenibilidad en la logística de última milla. En la dimensión económica de la sostenibilidad, los costes operacionales y la calidad de los servicios son variables de efecto y presentan una fuerte correlación.OriginalidadLa originalidad de esta investigación radica en identificar prácticas de sostenibilidad económica, social y ambiental adoptadas por minoristas en línea en los procesos logísticos de última milla. Además, el estudio se centra en el segmento minorista de comercio electrónico a pequeña escala, un área poco explorada en el contexto brasileño. Por último, el metamodelo propuesto contribuye a abordar prácticas desde la perspectiva de la Teoría de los Stakeholders y el enfoque de Sostenibilidad.Limitaciones/implicaciones para la investigaciónEl artículo proporciona contribuciones teóricas al abordar dos áreas complementarias de conocimiento: la Teoría de los Stakeholders y la Sostenibilidad, alineándose también con las directrices de la Iniciativa de Reporte Global (GRI). En términos prácticos, destaca al ofrecer ideas valiosas sobre la implementación de estrategias sostenibles al identificar prácticas económicas, ambientales y sociales en la logística de última milla, particularmente en el contexto de las pequeñas empresas en el segmento minorista en línea.Implicación prácticaLos resultados ayudan a los minoristas electrónicos a reevaluar los procesos logísticos de última milla desde una perspectiva de sostenibilidad. Este estudio pretende contribuir el avance del conocimiento de la literatura actual sobre la adopción de prácticas sostenibles en pequeñas empresas de comercio electrónico.Implicación socialTeniendo en cuenta que uno de los pilares de la sostenibilidad es el compromiso con el desarrollo social, este estudio contribuye a comprender la visión de los pequeños minoristas electrónicos sobre los trabajadores independientes encargados de la entrega de mercancías.

Authenticity in small businesses: exploring the consequences of brand authenticity

PurposeAlthough small businesses are important to the economy, few studies have examined how the small restaurant experience influences customer behavior. Thus, the purpose of this study is to develop a model and examine the influence of small restaurant attributes (i.e. authenticity) on customers’ positive attitudes and behavior.Design/methodology/approachUsing 181 responses from customers of small restaurants, this study examines how the dimensions of authenticity (i.e. continuity, credibility, integrity, and symbolism) affect customers’ positive behavioral intentions through emotional attachment.FindingsThe results of partial least squared–structural equation modeling demonstrate that customer perceptions of symbolism, credibility, and integrity in their experience at a small restaurant influence their attachment, which in turn influences both their word of mouth and revisit intentions. However, continuity has no significant effect on customers’ emotional attachment to service providers. Also, the effects of authenticity on customer behavior vary across demographic categories.Originality/valueWith increasing competition in the small business context, service providers seek to understand how to create positive customer patronization behavior. This study provides guidelines for small business owners who are developing marketing strategies.

Entrepreneurship, subjective risk intelligence and SMEs’ financial stability: evidence from Italy

PurposeThis paper applies an original construct of “subjective risk intelligence (SRI)” to the small business context. By leveraging on its multidimensionality, it aims to shed light on the existing ambiguities in the analysis of the relationship between the entrepreneurial attitude towards risk evaluation and firms’ financial stability.Design/methodology/approachThe empirical investigation refers to the Italian context, where an ad hoc survey has been administered to a sample of small businesses. Based on both a linear and a semiparametric regression, results show a significant relationship between SRI and firm’s financial structure, and that such relationship is basically nonlinear.FindingsEvidence shows that entrepreneurs with a high level of risk intelligence run highly leveraged firms. Moreover, in the light of the non-linearity of such relationship, higher levels of risk intelligence are associated with a greater capacity of the entrepreneur to govern the financial balance of the enterprise only up to a certain threshold. Over this threshold, risk intelligence generates overconfidence leading the entrepreneur to a reckless behaviour in taking financial risks.Originality/valueFrom a theoretical point of view, the paper contributes to the literature by shedding lights on the complexity of the relationship between risk intelligence and small businesses. From a policy point of view, findings suggest that, to train new entrepreneurs, the educational system aims should focus on the development of two specific “soft skills”: the ability to manage emotions and the ability to glimpse opportunities even in uncertain situations.

Blockchain for enhancing small business security: A theoretical and practical exploration

The review provides an overview of the theoretical and practical exploration of utilizing blockchain technology to enhance security in small businesses. Small businesses face significant security challenges in the digital age, including data breaches, fraud, and cyberattacks. This paper investigates how blockchain, as a decentralized and immutable ledger technology, can address these challenges by providing transparency, integrity, and trust in business operations. Through a comprehensive examination of blockchain fundamentals and its application in small business contexts, this study elucidates the mechanisms through which blockchain enhances security. Drawing on case studies and theoretical frameworks, the paper explores successful implementations of blockchain solutions, practical considerations for adoption, and the regulatory landscape governing blockchain in small businesses. Additionally, it evaluates the risks and benefits associated with blockchain adoption, providing insights into the potential impact on business operations and compliance requirements. Finally, the paper discusses future trends and innovations in blockchain technology, offering a roadmap for small businesses to navigate the evolving landscape of security solutions. This theoretical and practical exploration underscores the critical role of blockchain in safeguarding small businesses against digital threats while highlighting opportunities for innovation and growth.

On the role of small and medium-sized businesses in the economy of modern Russia

The relevance of the research topic is due to significant changes in business conditions and the need to assess their impact on the activities of small and medium-sized enterprises. At the current stage of the geo-economic confrontation, the domestic economy is faced with large-scale restrictions and measures to curb its development. Solving the problem of the emerging shortage of financial and other resources involves their optimal distribution between business entities and their groups, including between small and large businesses. The priority recipients of resources should be groups of systemically important entities capable of ensuring the sustainability and dynamic development of the entire economy. In the article, the author considers the question of whether domestic small and medium-sized enterprises belong to such entities. The purpose of the study is to assess the role and potential of small and medium-sized businesses in ensuring sustainable and dynamic development of the domestic economy in modern conditions. The author presents the results of systematization of current scientific approaches on the topic under consideration, indicators characterizing the share of small and medium-sized businesses in the economy of Russia and a number of foreign countries. A criteria analysis of its role and potential in ensuring the development of the domestic economy has been performed. The prerequisites for changing this role in the medium term are assessed. To achieve the goal of the article, the results of Russian and foreign research, statistical observation data, as well as methods of criterial and comparative analysis were used. When studying the prerequisites for increasing the role of small and medium-sized businesses, a factorial method was used based on a set of factors presented by the author. The results of the study confirmed the special importance of small and medium-sized businesses for ensuring the social aspects of economic development, including ensuring employment and stimulating private initiative. It is concluded that there is a need to increase government support in this area. In the broader context of economic development, domestic small and medium-sized businesses are characterized as a relatively small part of the national economy with a moderate level of stability in times of crisis and relatively low innovative activity and susceptibility to innovation. Its influence on economic growth is assessed as limited, and its role in ensuring sustainable and dynamic development of the domestic economy is assessed as secondary and complementary. There are no prerequisites for a significant change in this role in the medium term, which is due to the existing economic structure, industry structure and modern business conditions. The results of scientific research may be in demand by experts in the field of strategic socio-economic planning.

THE SUSTAINABLE SYNERGY: NAVIGATING CSR, GREEN INNOVATION, & DEVELOPMENT DYNAMICS

Within the context of small and medium-sized businesses, primary focus of this research is on interrelationships that exist between Corporate Social Responsibility (CSR), green innovation, environmental strategy, as well as Corporation Sustainable Development. This research validates that there are notable correlations amid these components by utilizing correlation matrix. Significantly positive relationships have been shown between CSR and corporate social responsibility (CSD), and between green innovation education, employee happiness & organization development. According to these findings, there is positive correlation between two, which suggests that businesses that place emphasis on corporate social responsibility are likely to adopt integrated sustainable practices and an environmentally friendly attitude, in turn has a beneficial impact on employee satisfaction and organizational success. It is emphasized in the case study that small and medium-sized enterprises (SMEs) should incorporate CSR activities and green innovation not only because these are ethical goals, but also because they have the potential to be drivers of the overall sustainable development.

A qualitative study of factors that managers in small companies consider important for their wellbeing

ABSTRACT Purpose Given the importance of small businesses for society, and the significance of managers’ wellbeing for employee health, leadership, and business performance, more knowledge is needed on the sources of managers’ wellbeing. This study explored factors within the small business context that were perceived by managers to hinder or enable their wellbeing. Methods Data were collected through qualitative semi-structured interviews with 20 managers from 12 small companies, and analysed with content analysis. Results The factors that these managers in small businesses experienced as enhancing or hindering their personal wellbeing covered five categories: demands and resources in the daily managerial work, achievement of results, social factors, organizational factors, and individual factors. Conclusions The specific context of managerial work in small companies encompasses unique factors. For instance, the small company managers’ wellbeing was affected by vulnerability due to the smallness of the business and the absence of available resources. Simultaneously, a small company context provided a strong social climate and close relationships with employees and customers that strengthened the managers’ wellbeing. The findings suggest that the availability of financial, personnel, and organizational resources varies between small companies of different size, which may have implications for small business managers’ work and wellbeing.

The role of augmented reality for sustainable development: Evidence from cultural heritage tourism

Issues of sustainability have gained interest and priority, examining ways organisations can protect environmental and cultural heritage, whilst addressing stakeholders' needs. Research exploring the role of Augmented Reality (AR) for sustainable tourism development has been limited. This study adopts the Triple Bottom Line (TBL) framework, to explore how AR can improve tourism attraction sustainability and create business benefits beyond enhanced visitor experiences. A UNESCO-recognised small cultural heritage tourism attraction in the UK was selected as a case study. Adopting a stakeholder approach, 50 interviews were conducted and analysed using thematic analysis. This study reveals AR presents strategic opportunities to achieve social, economic, and environmental sustainability, extending the current understanding of the TBL in a small tourism business context. We propose AR as a tool to help tourism attractions ensure their long-term viability and sustainability, and the findings provide important insight into how to achieve this.

Entrepreneurial Resilience in the Micro and Small Business Context – Systematic Literature Review

The topic of resilience is increasingly gaining momentum as the world shifts from a crisis to another. The operating environment for micro-enterprises has profoundly and irrevocably changed since the COVID-19 crisis’ landfall and war in Ukraine.
 This systematic literature review based on 36 papers, studies resilience from micro-entrepreneurship perspective focusing on resilience development, the process, and enhancing interventions from intra and interpersonal perspectives.
 The review indicates three different types of resilience domains: process-related (e.g. Ducheck 2017), individual capability (e.g. Demyen, S. 2022, Ducheck 2017) and resource-based (e.g. Bardoel & Drago, 2021). The connecting factor is that resilience is primarily developed in a learning process when facing challenging situations and crises. Building from those experience, the entrepreneur is more prepared to respond the next time.

Subjugation by superstition: Gender, small business and family in Bangladesh

AbstractThis feminist research explores how superstition is used by in‐law's family to subordinate women business‐owners in a highly patriarchal developing context. Whereas the exploration of gender subordination regarding women's entrepreneurship is almost exclusively confined to developed nations, little is known regarding the way women are subjugated in managing their small businesses in a patriarchal developing nation. This research generates data by conducting a case study on a woman's business in Bangladesh. This study yields unique insights by unfolding a specific form of superstition that attempts to restrain a woman from continuing her small business. The paper reveals that the male relative caused a severe adverse impact on the personal life and business of the woman by employing superstition. With particular reference to superstition, this feminist study substantially extends the theoretical understanding of gender subordination within the context of small businesses of women in a highly patriarchal developing nation. The research strongly suggests policymakers to consider familial issues of women business‐owners in designing programmes to empower them effectively.

Digital Service Innovation and Customer Value

The limited research linking digital service innovation to the small business context makes this research mandatory. This research itself examines the impact resulting from digital service innovation on customer value in Ternate City. A total of 113 respondents were involved in this study. The data in this study were collected through a survey with a questionnaire. Testing the research hypothesis was carried out using simple linear regression analysis using SPSS version 24. The results revealed that there was a positive relationship between digital service innovation and customer value. Next, recommendations for future research are discussed.

Knowledge management requirements for information systems in small ventures: A fuzzy-set qualitative comparative analysis (fsQCA)

Knowledge management and information systems have garnered increased attention for their potential to enhance venture performance. However, there is limited research on the specific competences of information systems based on knowledge management within the context of micro and small businesses. This study aims to fill this gap by examining small businesses in the entrepreneurship field to determine whether they recognize the importance of these competences. The research focuses on a sample of 70 small businesses operating in lower-middle-income economies and employs a fuzzy-set qualitative comparative analysis (fsQCA) methodology. The findings reveal that smaller businesses acknowledge the significance of information systems competences in facilitating their organizational development and that these ventures are increasingly exposed to the value of knowledge management in their day-to-day operations. This study contributes to the existing literature by shedding light on the role of smaller businesses in lower-middle-income economies.

Managing mental health problems in the workplace: are small businesses different?

PurposeThis study addresses a gap in evidence on small employer experiences of managing mental health problems in the workplace. The authors gathered first-hand experiences of small business managers to empirically investigate how the small business context affects the management and support of mental health problems in the workplace, and the practice implications that arise.Design/methodology/approachQualitative interviews, combining semi-structured and narrative approaches, with 21 small business managers with experience of managing employees with mental health difficulties. The 21 managers recounted a total of 45 employee cases, which were analysed thematically, using a case-based matrix. Study participants were drawn from small businesses within England and Scotland (UK). Interviews were conducted between November 2019 and February 2020.FindingsSupport aligned with current understanding of effective practice, yet was often informal, instinctive and flexible. Accommodating employees with mental health problems impacted the workload of managers and co-workers, and business operation and growth. Challenges and tensions reflected the difficult balancing act faced by managers in organisations of all sizes. However, the intensity and immediacy of cross-pressures was enhanced for small businesses, due to their smaller workforce and lack of dedicated Human Resource Management and occupational health expertise.Practical implicationsGuidance should address the navigation of day-to-day management and support for employees with mental health difficulties, including approaches to balancing the needs of the wider workforce and business operation. Access to HR and occupational health expertise is valuable. Financial subsidies may be of lesser concern to small businesses.Originality/valueThis study offers originality in focusing exclusively on small business managers with first-hand experience of supporting employees with mental health problems. Findings challenge the perception that small firms have unique experiences, whilst highlighting contextual features that exacerbate intensity and immediacy of impacts.

The Effect of Transformational Leadership on Innovative Work Behavior in SMEs: Test of a Mediating Model

In today’s advancing small-business competition, SME leaders are forced to build superior and innovative employees to sustain competitive advantages. This study scrutinises the link between transformational leadership and innovative work behavior by developing a mediating research model. The samples used in this study are 235 employees who work in the SME creative industries in Kebumen. Most of the respondents are working in the design and production divisions in the food, craft and fashion businesses. The analysis model used is the structural equation model (SEM) with Smart PLS software analysis. This study found that transformational leadership significantly affects innovative work behavior. Psychological safety and friendship at work significantly mediate the connection between transformational leadership and innovative work behavior. In addition, this research revealed that psychological safety shares a positive influence on friendship at work. This study provides insight for the transformational leader in the small business context to improve employees' innovative work behavior. Keywords: Transformational Leadership, Innovative Work Behavior, Psychological Safety, Friendship at Work.

Impact of affective attitudes on team outcomes in small business contexts: Lessons from a simulation

ABSTRACT The study examines the impact of positive and negative emotions by individual members on team outcomes in a small business context. Using a simulation, the research conducts a survey of individual perceptions to examine team dynamics over a three-month period. Initial negative emotions on team tasks were found to lower intra-team trust, while positive emotions increased trust through team identification. Initial identification was associated with improved team outcomes. Through subsequent relationship conflict, increases in negative (positive) emotions lowers (raises) team cohesion and performance. For small businesses, the results suggest that leaders should address assigned tasks to help members mitigate initial negative emotions. Leaders should also monitor employee emotions as work progresses, given that affective attitudes continue to impact team outcomes. In addition, pairing employees with previous work experiences may help build team identification and so improve outcomes.

The impact of market information use on entrepreneurial performance: insights from the UK food industry

PurposeThis paper explores the nuanced relationship between individual and firm performance through the lens of market information use, in the specific context of small businesses, shedding light on the specificity of information use and impact of information use on both types of performance.Design/methodology/approachA mixture of subjective and objective data from a sample of small food producers engaged in an action research project with a major UK supermarket was used to test hypotheses developed from the information management, marketing and small business literature.FindingsThe results suggest that the effective use of market information has a significant impact on the performance of both the individual and the organization but independently of each other. The result provides evidence of the potential “disconnection” between individual and organizational levels of performance and the tension that exists in small businesses between operational and strategic decision-making and the use of market information therein.Research limitations/implicationsWhile the author's study benefits from access to individual decision-makers and objective organizational performance data, the study is not without its limitations. Chief among these is the small sample size. Moreover, while there are clear benefits to working with a homogeneous sample of small food producers supplying the same key customer in the same market, generalizing to small food businesses operating in other distributions channels and small businesses in other sectors is also difficult.Practical implicationsWhen analyzing the performance of marketing managers, owner-managers should pay attention to the incentives for them to invest time and effort in the effective use of market information as the disconnection between individual and firm performance can have negative implications for their personal development and the overall firm performance.Originality/valueThis study explores a missing link in the extant body of small business literature, i.e., the role played by key individuals with responsibility for the marketing function within small businesses and the relationship between small businesses' approach to the use of market information and performance at a functional level and the overall firm performance.

Personality trait imprints across generations: small family business context

PurposeThe purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB) contributes to a successful succession transition across generations.Design/methodology/approachThe conceptual model method was employed in this investigation, which describes an entity and identifies issues that should be considered in a study (MacInnis, 2011). It involves a form of theorizing that seeks to create a nomological network around the focal concept, to examine and detail the causal linkages and mechanisms at play (Delbridge and Fiss, 2013).FindingsDrawing on the trait activation theory (TAT), this study conceptualizes that the congruence of the successor's PTs with those of the predecessor, as well as the values, transitions and nature of the assigned task, activates the successor's PTs and motivates him to work diligently for a successful succession transition while preserving the business's core values established by the founder.Research limitations/implicationsThis study is an eye-opener for strategists and SFB predecessors to ponder the successor's PTs disparities across generations. Additionally, it urges them to consider the congruence of SFB's values and nature of operations with the successor's PTs for successful succession transition. Thus, such awareness may contribute to stabilizing the SFB's survival rate.Originality/valueThis study contributed to the existing literature by answering how predecessor’s and successor's PTs congruence and SFB's values and nature of operations congruence with their PTs may contribute to successful succession transition across generations. This study contributed to the TAT by thematically explaining the organizational cues to bridge a relationship between entrepreneurial personality traits (EPT) and succession success of SFBs.

Juggling on a tightrope: Experiences of small and micro business managers responding to employees with mental health difficulties

This article presents findings from an in-depth qualitative study focused exclusively on the first-hand experiences of small and micro businesses managers who have responded to employees with mental health difficulties. Despite growing policy focus on workplace mental health, empirical research evidence on management experiences of responding to mental health issues in a small or micro business context is rare. Drawing on in-depth interviews with 21 UK-based small and micro business managers who described 45 individual employee cases, we examine how managers traverse a support-performance continuum, and use a tension-based lens to analyse the tensions that managers experienced. We examine three key tensions for small and micro business managers that surfaced when responding to employees with mental health problems: (1) Individual vs Collective; (2) Confidence vs Caution; (3) Informal vs Formal. Our analysis exposes how managers handle tensions when managing at the nexus of support and performance and contributes a deeper understanding of the dynamics and challenges of managing mental health problems in small and micro businesses.

Learning apart or together? The relationships of the social interdependence orientation and social competence of owner-managers with their social learning behaviour and firm performance within a Korean small-business context

ABSTRACT The present study aims to contribute to the body of knowledge on HRD in small businesses by providing a detailed investigation of the role that owner-managers play in enabling social learning and performance in small firms. The investigation focusses particularly on the specific relationships of the social-interdependence orientation and social competence of owner-managers with their social learning behaviour, as well as with the performance of their small-businesses within the pig-production sector in the Republic of Korea. A survey was conducted amongst nearly 200 Korean owner-managers of pig farms. The results indicate that social interdependence orientations and social competencies have a significant relationship with social learning behaviour. Self-promotion and a cooperative orientation are especially important, with self-promotion taking precedence for social learning behaviour of a more ‘internal’ nature, and a cooperative attitude being more important social learning behaviour of a more ‘external’ nature. Social competence and social interdependence did not have a significant relationship with performance, but social learning behaviour did. The results further highlight the importance of individual social characteristics to social learning behaviour occurring outside highly structured educational settings, in addition to demonstrating that the competence and attitudes required are determined by the type of interaction partner.