1,721,128 research outputs found
Fostering Entrepreneurs’ Capabilities to Outline Sustainable Strategies in ‘Stunted’ SMEs through Modelling and Simulation: a Dynamic Resource Based View
Get PDFThe literature recognises the phenomenon of ‘dwarf’ or ‘stunted’ small and micro firms (in
Italian nanismo aziendale) and that they might represent potential lost opportunities for
owners and the local economy.
Based on a field survey conducted by Bianchi et al. (2003) and the analysis previously
developed by the authors of this paper in sketching a simple ‘insight’ model to simulate the
behaviour of such firms (Bianchi & Winch, 2005), this work aims to show further research
developments in the effort to better understand the business dwarfism phenomenon.
A system dynamics model replicating the basic no-growth, cyclical behaviour attributed to
“stunted” SMEs is firstly analysed. Alternative policies arising from different entrepreneur’s
targets and attitudes towards strategic resources, aimed to change that behaviour to one of
stability or steady growth, are then tested and commented.
Although the model encompasses a larger range of inter-relationships than in its early version,
it is still a simple insight tool that will be used by the authors in a later step of the research, in
Euram Conference, Munich (Germany), 4-5 May 2005
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order to conduct field experiments on the way “stunted” business entrepreneurs can better
learn and perceive weak signals of crisis or growth opportunities.
In this simple form, the model does link behaviours to system structure and could support
individual entrepreneurs in understanding the reasons for dwarfism in their firm and the
potential for unleashing growth. It could also further form the basis for a more detailed model
to support the identification and evaluation of strategic alternatives in individual firms
Supporting value creation in SMEs through capacity building and innovation initiatives: the danger of provoking unsustainable rapid growth
No full textValue creation comes in many guises, and may be achieved through expansion and efficiency, innovation and novel processes, and closer alignment with customer needs. This article examines the real dangers to firms, especially small firms, which pursue very ambitious capacity growth plans in order to chase market opportunities. Case analysis has unearthed a new phenomenon, which might be termed ‘business gigantism’ – a situation of rapid and unsustainable growth that places severe strains on the firm. This article briefly recounts two case studies where small firms secured substantial funding to support rapid expansion – in both cases via public agencies. In each case, funding was justified by formal business plans, but their static and mechanistic nature failed to foresee the perils when the firms attempted to grow too quickly and both experienced major crises. Simulation modelling explored more moderate, but still ambitious, growth options and showed that sustainable futures were feasible. © 2009 Inderscience Enterprises Ltd
MANAGING LEVERS OF ORGANIZATION DESIGN TO ENHANCE SMES’ LONGEVITY: An Agenda for Further Research
Get PDFSME success is often primarily linked to the personal traits of entrepreneurs and vice versa. In terms of SME failure, most of the literature, research and popular press, seems focused on individual factors, such as those related to the owner/entrepreneur’s profile and behavior, or contextual factors like those associated with relationships between the firm and its own stakeholders, especially on the competitive and financial systems arenas.
That said, some scholars have emphasized the relevance of organizational design for SME longevity, though there seems to be little inter-relating of the two sides. This paper examines the relationships between owner/entrepreneur attributes and organization design and infrastructure in an attempt to gain a clearer understand of SME longevity and failure. It examines critical issues in appropriateness and comprehensiveness of organizational design, control and decision-making flexibility and risk perception. It concludes that these linkages are not well understood and may lead to unhelpful misdiagnoses of small business failure. It consequently suggests a research agenda based on a structural analysis and modeling using the system dynamics approach
Exploring Options and Increasing Confidence in Turning “Stunted Growth” Firms Round: Trials with a Management Simulator
No full textProject governance interface and owner organizational identity: The Venice Biennale case
No full textThere is a considerable body of work on managing the governance interface in project organizing, yet there has been little consideration of how the organizational identity of the project owner might shape the design of that interface. This is important because organizational identity is known to shape various aspects of project orga-nizing, such as how an organization is perceived by team members, so we might expect it also influence the performance of projects. We explore this question through a case study of how the Venice Biennale owner or-ganization governs one of its temporary project events - the 2019 Venice International Film Festival. Through our empirical fieldwork, based on multiple data sources including a participant ethnography of the 76th Venice International Film Festival and semi-structured interviews, we found that the organizational identity of the project owner organization influences choices made for the governance of a delivery project. The study con-tributes to theory on project organizing by highlighting the importance of owner organizational identity for the design of the governance interface in project organizing and identifying the importance of an interpersonal approach to governance interface design for an owner organization with an identify of innovation and experi-mentation on its delivery projects
A Physiological Approach to Analysing SME Growth Patterns and to Understanding the Distinctions and Similarities between Normal and Abnormal Growth
No full textBuilding on Entrepreneurs’ Leadership through ‘Lean’ and Dynamic Performance Management Systems in Small and Micro Firms. Challenges and Missed Opportunities
No full textThis paper frames the potential benefits of ‘lean’ and dynamic performance management (PM) systems for small and micro enterprises. In this context, the ‘lean’ attribute is used to characterize a different approach in applying PM to small firms, in respect to larger organizations. In fact, such systems may exploit the entrepreneur’s tacit knowledge and build on leadership, by incorporating individual attributes into organizational routines.
Related to small and micro firms, direct experience and case-studies suggest that their sudden crises and demises are often a product of gradual – internal and external – phenomena that entrepreneurs are not enabled to selectively and promptly detect and counteract.
To empower small and micro-business actors with relevant information and decision-support tools, formal, financial-oriented and structured accounting systems are usually recommended. Though such tools may generate benefits in terms of specific knowledge on single and isolated information needs (e.g. net working capital, product costing), they are not primarily useful to support decision-makers to figure out relevant patterns of behaviour over time, and to frame and question the causal structure affecting them, in order to support sustainable decisions. Furthermore, usually such tools are not developed by explicitly taking into account that a micro or small business has very specific and differential features, in respect to larger firms. This implies that the critical problems or issues to deal with, in order to foster a sustainable development in such firms require the use of tailored ‘lenses’ to properly frame them.
We claim here that using ‘lean’ and dynamic PM systems may help entrepreneurs and their own direct collaborators in this process of ‘tailored’ and continuous scanning of crisis symptoms and detection of opportunities for their business development. To this end, based on a number of exemplary cases, we discuss the potential benefits of such systems, in respect to four specific contexts (artisan, new company start-up, established firm, and micro-giant company). Related to such contexts, we identify: 1) needs or priorities, and 2) obstacles or impediments to pursue business survival and development. This conceptual framework discloses a quite original empirical basis to outline ‘lean’ and dynamic PM systems that may provide decision-makers with a set of key-performance drivers that help them to prioritize action, in each of the four above-mentioned contexts
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