Managers Of Small Firms Research Articles

Becoming a more attractive supplier by managing references – The case of small and medium-sized enterprises in a digitally enhanced business environment

The importance of corporate online references in managing client perceptions and firm attractiveness is increasingly recognized. At the same time, evidence pointing to how references work in business-to-business contexts remains sporadic, with particularly limited information regarding the supplier pre-selection process in small- and medium-sized enterprises (SMEs). Within the theoretical orbit of attractiveness, the purpose of this study is to investigate the impact of corporate online references, Word-of-Mouth recommendations, and firm size on customer intention to initiate the business relationship with the supplier. The study takes on a mixed methods design combining qualitative interviews and focus groups with an experimental approach; both conducted with managers from SMEs based in the United Kingdom. Results indicate important preferential differences in supplier pre-selection between managers in small versus large customer firms. While generally more elaborated corporate online references tend to be preferred across small and large SMEs, less elaborated references appear sufficient in the case of small SMEs, as long as they occur in combination with a Word-of-Mouth recommendation. Our study makes important contributions to the literature on partnering attractiveness from an SME perspective and adds meaningfully to the discussions on reference management.

Work-life support: the key to managers’ happiness

PurposeBuilding on the conservation of resource theory, the authors posit work-life support as an essential resource for middle managers. This paper aims to explore the positive association between work-life support, positive emotion, job satisfaction and happiness. The paper also assesses the moderating role of work pressure on work-life support and positive emotion relationship on the one hand and flextime on positive emotion and job satisfaction on the other.Design/methodology/approachData collected from 512 middle managers of small and medium-sized firms including manufacturing, service and finance sectors in Taiwan were used to test the hypotheses.FindingsThe results reveal that work pressure strengthens the effect of work-life support on positive emotions, whereas time flexibility weakens the effect of positive emotion on job satisfaction. Work-life support positively influences happiness through the intervening variables of positive emotion and job satisfaction.Practical implicationsThe paper highlights the importance of creating a positive work environment, as empowering middle managers with work-life support can help them handle work pressure and work-life conflict. The negative influence of flextime on positive emotion and job satisfaction highlights the need for effective handling of flextime.Originality/valueThis paper examines the work-life support and happiness of middle managers in the Chinese cultural context which has been under-explored. This paper expands the external validity of previous research results of Western samples by finding the positive influence of work pressure on work-life fit and positive emotion and negative influence of flextime on positive emotion and job satisfaction link.

Absorptive Capabilities and Competitive Advantage: The Linkage

The main goal of this study is to analyze the influence of absorptive capabilities on competitive advantage. Based on survey data from 247 Portuguese small and medium-sized enterprises (SMEs) findings suggest that: Acquisition, assimilation and exploitation’s absorptive capabilities are positively associated with cost leadership; Transformation’s absorptive capabilities are not positively associated with cost leadership; Acquisition and transformation’s absorptive capabilities are positively associated with differentiation; and Assimilation and exploitation’s absorptive capabilities are not positively associated with differentiation.This study deepens our understanding and provides novel insights into strategic management literature, since it combines multiple factors and has obtained the importance of each construct in SMEs business competitive advantage. Moreover, this paper presents further evidences of the strategies that small firm managers should pursue and policy makers should promote.

Chronic Underfit of the Small Firm’s HRM Function: When Low Functional Elaboration Interacts with Contingencies

We address qualitative functional elaboration of human resource management (HRM) in small firms where HRM is typically simple and informal. After describing qualitative functional elaboration in terms of structuration, managerial process, and effects on HRM, we discuss relevant contingencies that can render small-firm HRM’s degree of elaboration insufficient relative to firm needs and goals. We then discuss implications of chronic underfit of HRM in small firms, drawing on theory of asymmetric effects of misfit. Finally, we discuss implications for future research, practice, and entrepreneurship education.

TRADE INDUCED MORTALITY

This paper evaluates the effect of increased trade on the mortality of workers in the manufacturing sector. We exploit the large increase of Chinese exports in the last two decades to assess its effect in two different countries, Italy and the US. Exploiting individual longitudinal data, we find that trade leads to an increased mortality rate among these populations, the effect being higher in Italy than in the US. A one billion dollar increase in imports leads to a 4 percent mortality increase in the US and up to 7 percent in Italy. We show that mortality patterns are different across occupational groups, with a more pronounced effect on blue-collar workers in the US and in Italy, a marked effect on managers of small firms. We show that there are important spatial inequalities in the mortality burden of trade.

Contrasting Contemporary Advertising Media Strategies of Small Retail Firms:

This paper is an investigation contrasting modern and traditional advertising media from the perspective of small retail firms in Limpopo province of South Africa. Prior studies established juxtaposition in terms of media choices which continuously challenges businesses at large, per se, small retail businesses. A cross-sectional survey, through a purposive sampling technique of a subsequent sample size of 236 owners and managers of small retail firms was utilised in this research. Descriptive statistics, correlation and exploratory factor analysis (EFA) were used in data analysis. Furthermore, structural equation modelling (SEM) was used in hypotheses testing. The findings of the study posit that traditional advertising media have no significant influence on communication effectiveness and the performance of small retail SMEs. Contrarily, modern advertising media was found to positively and significantly influence the performance of retail SMEs. The practical implications of this study primarily pertain to the demise of traditional advertising media in the contemporary environments which business people need to consider. Theoretically, the study posits a review of the theory that pertains to the use of traditional media juxtaposed to modern media in contemporary advertising.

Contrasting Contemporary Advertising Media Strategies of Small Retail Firms:

This paper is an investigation contrasting modern and traditional advertising media from the perspective of small retail firms in Limpopo province of South Africa. Prior studies established juxtaposition in terms of media choices which continuously challenges businesses at large, per se, small retail businesses. A cross-sectional survey, through a purposive sampling technique of a subsequent sample size of 236 owners and managers of small retail firms was utilised in this research. Descriptive statistics, correlation and exploratory factor analysis (EFA) were used in data analysis. Furthermore, structural equation modelling (SEM) was used in hypotheses testing. The findings of the study posit that traditional advertising media have no significant influence on communication effectiveness and the performance of small retail SMEs. Contrarily, modern advertising media was found to positively and significantly influence the performance of retail SMEs. The practical implications of this study primarily pertain to the demise of traditional advertising media in the contemporary environments which business people need to consider. Theoretically, the study posits a review of the theory that pertains to the use of traditional media juxtaposed to modern media in contemporary advertising.

Does the Corporate Governance Impact the Working Capital Management of Small Cap Firms?

Does the Corporate Governance Impact the Working Capital Management of Small Cap Firms?

Improvement of Project Competency for Small IT Companies through SWOT-AHP Analysis

In the SW industry, the diversification of global markets and technology trends are changing due to the emergence of new services, and IT companies are in need of strategic change different from the previous one. In this study, SWOT analysis was performed by extracting the internal environmental factors and external environmental factors through the previous studies to improve the project performance competence of small IT companies, and the SWOT Matrix was reconstructed through the pairwise comparison. Based on this, the purpose of this research was to propose the project performance competency improvement plans for small IT companies based on importance and priority, and the following four strategies were derived from the result of SWOT-AHP analysis. SO strategy was drawn in direction to invest R & D in new SW industry to enhance technology competitiveness of SMEs in order to develop SMEs, and in order to secure competitiveness of SW industry, WO strategy is drawn the cultivation of professional technical manpower through SW policy. ST Strategy presented technical management through SW system improvement policy to improve SW environment, and WT Strategy presented awareness training on the construction and necessity of project management system construction. Using the strategies presented in this study, it is expected that the managers of small IT firms will be presented as references to measure the performance competence factors of current organizations and company organizations.

Identifying Cultural and Cognitive Proximity Between Managers and Customers in Tornio and Haparanda Cross-Border Region

ABSTRACT Daily intercultural interactions in cross-border regions such as those between customers and managers can be a source of knowledge and ideas. However, such interactions can pose distinctive constraints and opportunities for learning and exchange of ideas. This study adopts a relatively fine–grained quantitative approach to study elements of cognitive and cultural proximity which have a major impact on these interactions. It is based on a survey of 91 managers of small service firms and 312 customers in the twin city of Tornio and Haparanda on the border between Finland and Sweden. Seven elements of proximity were identified and measured. Six elements of perceived cognitive and cultural proximity including values, conservative values towards new ideas, knowledge and use of technology, use of a foreign language, sufficiently focusing or providing specific details and ways of solving problems were found significant in terms of shaping perceptions of Swedish and Finnish managers and customers, which shape these interactions. The results enhance our understanding of how daily cross-border intercultural can be examined in the context of cross-border regional knowledge transfer.

Absorptive capacity and small family firm performance: exploring the mediation processes

PurposeDespite the recognized importance of knowledge management for small family firms, relatively little empirical research has been done so far to understand the mechanisms through which absorptive capacity (AC) assists their performance. The purpose of this study is to understand the relationship between absorptive capacity and performance in small family firms.Design/methodology/approachIn this study, the authors theoretically argue and empirically validate that AC enables the creation of entrepreneurial, market and technology orientations in small family firms, which, in turn, lead to superior firm performance. They also tested the study’s hypotheses using mediation and multiple linear regression analyses on data collected from 272 small Indian family firms.FindingsThe study’s findings suggest indirect relationship between AC and performance. The strategic orientations provide a mechanism through which investments in small family firms’ AC results in firm performance.Practical implicationsThis study offers crucial insights to practitioners and small firm managers regarding the use of knowledge-based capabilities in creating appropriate strategic postures, which, in turn, assist firm performance.Originality/valueThis study is among few research attempts in understanding the knowledge aspects of small family firms. The present research contributes to the existing literature by unravelling the relationship between knowledge management and small family firm performance. Also, by bringing in data from an under-studied context of an emerging economy, this study strengthens the theoretical applicability of knowledge management in different contexts.

Are Top Management Teams Compensated as Teams? A Structural Modeling Approach

This paper develops an empirical approach to explicitly test two multi-agent moral hazard models on executive compensation in S&P 1500 firms, which distinguish between a team perspective and an individual perspective. This approach assesses which model is more robust at rationalizing the observed relationship between executive compensation and firm performance. The results favor the team perspective under which unilateral shirking is assumed infeasible for managers. The analysis rejects the individual perspective under which each manager can unilaterally shirk. This paper also quantifies three model-based measures of agency costs. The risk premium can explain up to 37% of total compensation for higher-paid managers in large firms. This upper bound is higher than that of lower-paid managers and all managers in small firms. Shareholders could experience a reduction in equity return by 0.04-0.15 due to managers shirking. In addition, shareholders could benefit from switching from an individual-perspective contract to a team-perspective contract. Such counterfactual analysis predicts the risk premium could be reduced by $1 million-$17 million in the compensation of the higher-paid managers and $0.1 million-$3 million in the compensation of the lower-paid managers.

Key drivers of SMEs export performance: the mediating effect of competitive advantage

PurposeWith its focus on the context of small firm internationalization, this paper aims to assess the important contribution of strategic determinants that influence export performance (EP), considering the mediating effect of competitive strategy.Design/methodology/approachBased on survey data from 247 Portuguese small and medium-sized enterprises (SMEs) exporting textiles, members of the Portugal’s Textile Association (ATP), this research adopted a quantitative methodological approach, conducting an exploratory and transversal empirical study.FindingsThe paper finds suggest that entrepreneurial orientation (EO) has a positive and significant influence on differentiation and EP. Moreover, the results also highlight the role of intangible resources (IR) in the design of both differentiation and cost leadership strategies, which drives EP. Finally, absorptive capabilities (ACAPs) are highly related with EP.Practical implicationsThe paper provides empirical evidence that EO, IR and ACAPs are predictors of competitive strategies and EP. Moreover, and alongside with firm’s resources, this study validates that competitive strategy does matters for small firm managers and the development of one type of competitive advantage is also a major performance enhancer.Originality/valueThis study provides fresh insights into entrepreneurship and strategic management literature, as it considers the importance of multiple factors to SMEs business growth. Moreover, this paper presents empirical evidences of the strategies that small firm managers should pursue and policy makers should support. Finally, this is an original study applied to the Portuguese textile industry.

Risk management in small and micro construction firms undertaking repairs and modernisation of residential houses: a case of India

This paper identifies risk factors and suggests their mitigation in small and micro construction firms undertaking repairs and modernisation projects in residential houses. It uses a case study approach with a combination of work breakdown structure and fault tree analysis to identify risk factors in repairs and modernisation projects. Fifty two risk factors have been identified. Risk factors such as damage to household goods during shifting, injury to the labourers during shifting household goods, damage to household goods during packing, damage to household goods during unpacking and accidents during shifting of household goods have been found typical for small to micro construction firms involved in repairs and modernisation of residential houses. The suggested risk treatment reflects the lite version of project management and is validated by discussing with construction professionals and owners of small and micro construction firms. Risk retention, risk sharing and risk prevention are recommended for treatment of risks. This study is qualitative in nature and its scope is limited to Indian context only.

Structure and significance of knowledge networks in two low-tech clusters in Poland

The co-location and networking of firms and institutions, also known as clustering, positively influences the innovativeness of firms. The cluster literature provides a single-sided understanding of how clusters function due to an overemphasis in the literature on clusters in high-tech and developed economies at the expense of clusters in low-tech industries in less-developed regions. Applying social network analysis (SNA), this paper studies two furniture clusters in the Wielkopolska region of Poland. The findings demonstrate that: (1) the critical factor is the impact of institutionalization on the mechanisms of knowledge flows, Marshall’s externalities and, in consequence, innovativeness of firms; and (2) the underlining clusters do not show a tendency to build cluster-external linkages, opposing the dominant premise in the cluster literature. In the absence of national and international relations, managers of small and medium-sized firms and local institutions are the main sources of novelty for the clusters at the sustaining stage of their life cycle. The findings pave the way for initiatives aiming at creating and developing knowledge networks in lagging and catching-up regions in Europe, particularly those specialized in low-tech sectors.

Risk management in small and micro construction firms undertaking repairs and modernisation of residential houses: a case of India

This paper identifies risk factors and suggests their mitigation in small and micro construction firms undertaking repairs and modernisation projects in residential houses. It uses a case study approach with a combination of work breakdown structure and fault tree analysis to identify risk factors in repairs and modernisation projects. Fifty two risk factors have been identified. Risk factors such as damage to household goods during shifting, injury to the labourers during shifting household goods, damage to household goods during packing, damage to household goods during unpacking and accidents during shifting of household goods have been found typical for small to micro construction firms involved in repairs and modernisation of residential houses. The suggested risk treatment reflects the lite version of project management and is validated by discussing with construction professionals and owners of small and micro construction firms. Risk retention, risk sharing and risk prevention are recommended for treatment of risks. This study is qualitative in nature and its scope is limited to Indian context only.

Managing local supplier networks: conflict or compromise?

ABSTRACTThis paper examines conflict management in small firm networks. Informal conflict management strategies used in exchange relationships are identified and analysed. In-depth, semi-structured interviews with 22 small and medium-sized enterprise managers in an industrial district in the south-east of France are analysed. Results point to managers adopting accommodating behaviours in conflicts with clients and compromising and collaborative strategies with local partners. This research reveals the mobilization of local norms in the management of conflicts and also contributes to research concerning coopetition and the possibility that managers of small firms may both separate and integrate coopetition activities.

Firm Size as Moderator to Non-Linear Leverage-Performance Relation: An Emerging Market Review

The purpose of this research was to investigate leverage-performance relation with moderating firm size in developing countries like Pakistan. Data were collected from 304 Pakistani non-financial firms for the period of 2005-2013. It is found that overall leverage-performance relation is negative for all types of firms. However,such losses are more prominent for small size firms. Results also show that the leverage-performance relation is nonlinear for medium and large size firms. However, these firms are not targeting optimal level and overleveraging that ultimately decrease their profits. So, financial managers of small size firms should avoid debt financing while for large and medium size firms, managers need to adjust their debt ratio to its optimal level.

Al Qatef Holding: a case of a rough landing in the Gulf-based real estate industry

Subject area Organizational behavior. Study level/applicability Upper-level undergraduate courses, introductory MBA courses. Case overview This case study unveils the story of Al Qatef Holding, a Gulf-based real estate company that was created on the vision of one ambitious businessman. The case begins in 1999 when Faisal Al Qatef decided to pursue his dream of establishing a full-fledged corporation to serve the mounting real estate needs in the Gulf region. Faisal started his company by launching a number of residential and commercial property developments in his home country, Kuwait. During its early years of operation, Al Qatef Holding witnessed an impressive success and an increasing appetite for growth. A couple of years down the road, the founder made the strategic decision to open a new branch in Doha to seize the opportunity that the Qatari real estate market presented at that time. Yet, along with the rapid expansion came the company’s incapacity to deliver on its promises, generating many customer complaints and a damaged reputation owing to poor construction quality and significant delays in project delivery. The case describes the multiple challenges experienced by Al Qatef Holding throughout its evolution and portrays the external and internal dynamics that led to its initial success and subsequent decline. Expected learning outcomes Assess the internal dynamics and challenges that are associated with the management of small firms; discuss how leadership styles and characteristics affect the organizational climate and employee performance; demonstrate understanding of how corporate culture drives human behavior in the workplace; perform an analysis of firm structure to estimate its impact on individual and organizational outcomes; apply different techniques for enhancing employee motivation in organizations; and evaluate the effectiveness of managerial decisions and provide recommendations for securing corporate survival. Supplementary Materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 6: Human Resource Management.

Ethical perceptions of employees in small retailing firms: A case of indigenous-owned fast-food outlets in Zimbabwe

Background: Although the subject of ethical business practices has a well-established tradition in large corporations where shareholder value maximisation is largely dependent on such entities’ conduct of good business ethics, its investigation in small businesses in agile, economically depressed economies such as that of Zimbabwe has targeted business owners and managers but excluded their employees. Given the middleman role that employees of emerging indigenous-owned retail firms play in the distribution chain from manufacturers to the consumers, the ethical perceptions of these employees are critical to the leveraging of businesses’ strategic orientations. Employees are the coal face of the firm, withering intense competition from these firms’ rivals and achieving the firms’ strategic orientations (profitability, market share, business growth and survival). In order to meet stakeholder expectations simultaneously largely depends on the ethical conduct of such employees.Aim: The overall aim of this study is to contribute to ethical theory and literature by demonstrating how employees’ ethical perceptions and behaviour shape the strategic orientations of the business. To achieve this aim, the study sought to: (1) establish the typical ethical dilemmas that employees of these retail firms faced in their daily tasks, (2) assess how they responded to these ethical challenges, (3) ascertain whether demographic factors such as age, level of education, gender and their position in the organisational hierarchy influence their reaction to ethical dilemmas; and (4) determine these employees’ overall perceptions of ethical issues within their organisations.Setting: The study was conducted on employees of an indigenous-owned fast-food firm operating in two cities in Zimbabwe.Methods: A survey was conducted on 108 employees working in two cities. A structured questionnaire was developed and administered to the employees.Results: The results suggested that a majority of the respondents were ethically conscious and could make ethical choices. In addition, most respondents deemed the ethical scenarios presented to them as morally wrong, suggesting that the surveyed employees wished to engage in ethical behaviour. However, while the respondents were deemed to be ethically astute in their individual capacities, they seemed to lack an in-depth knowledge of the ethical policies of their organisation.Conclusion: The study concludes that owners and managers of small firms should provide interventions to cascade ethical policy to the lower ranks of the organisation to enhance the ethical perception amongst employees of these firms. The study implication is that an institutional top-down approach is critical to embedding ethical sensitivity into employees without which employees may continue to speculate about the business ethics of their organisation.