Value generation in B2B contexts: the SMEs’ perspective

2015 ◽  
Vol 27 (3) ◽  
pp. 297-317 ◽  
Author(s):  
Lourdes Pérez ◽  
Jesús Cambra-Fierro
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Value Appropriation ◽  
Content Type ◽  
A Value ◽  
Novel Concept ◽  
To Receive ◽  
The Relationship ◽  
Asymmetric Relationships

Purpose – The aim of this paper is to understand the process of value creation in business-to-business (B2B) contexts from the perspective of small- and medium-sized firms (SMEs). Small businesses are challenged to compete and collaborate with larger firms. While the “sharks” dilemma (often the most dangerous sharks also have the most valuable resources) focuses on specific defences, the authors emphasize a value generation perspective. Design/methodology/approach – The concept of asymmetric relationships is taken as a reference and examined using a longitudinal multi-case study. Findings – The authors results demonstrate how small firms not always assume an inferior, defensive position. Ambitious and growth-oriented SMEs learn to collaborate with larger partners and exhibit a proactive attitude towards relationship management. They understand the importance of developing social ties. They foster frequent and informal communication with their customers, favouring personal visits as a means to receive advice for directing their research efforts and exchange information and views. Such ties help them to develop shared plans and goals. Research limitations/implications – In asymmetric relationships, partner selection models should help firms to concentrate their efforts in a reduced group of key partners. These models should include not only economic performance indicators – variables such as flexibility and autonomy – but also innovation and improvement in processes, image, prestige and positioning, access to markets and stability. Originality/value – The authors found insight into a novel concept: dual-value appropriation, where partners do not split the pie of the total value generated, as frequently proposed in the literature, but fully appropriate a different and unique value from the relationship. The authors further highlight the important role played by the committed champions in developing communication and trust.

Uneven partners: managing the power balance

2015 ◽  
Vol 36 (6) ◽  
pp. 13-21 ◽  
Author(s):  
Lourdes Pérez ◽  
Jesús J. Cambra-Fierro
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Small Firms ◽  
Negative Impact ◽  
Qualitative Case Study ◽  
Value Appropriation ◽  
Content Type ◽  
Novel Concept ◽  
Zero Sum

Purpose – Research suggests that asymmetry has a negative impact on value creation and value distribution and assumes that the smaller partner has an inferior position and must defend itself from value misappropriation. However, industries are plagued with a range of business relationships of varying degree of imbalance. Ambitious and growth-oriented small firms enter relationships with larger counterparts, tolerate the imbalance and learn to achieve successful outcomes. In spite of the increasing importance of asymmetric partnerships, there are still many research and conceptual lacunas. Design/methodology/approach – Ideas and conclusions of this paper are based on the authors’ experience as well as on evidence from a qualitative case study conducted at a small- and medium-sized enterprise (SME) and one of its key larger partners. Findings – Findings reveal that asymmetric partnerships may offer a clear route to value creation and innovation for firms. Moreover, both partners can fully appropriate the value jointly generated. Originality/value – Asymmetric partnerships, generally characterized by large dissimilarities between firms, offer the possibility of moving beyond the zero-sum game, where firms obtain value at the expense of their partners. By examining the development and dynamic aspects of these partnerships, we found a novel concept, “dual-value appropriation”, and addressed the issues of how and under which conditions dual value emerges to explain the success of asymmetric partnerships.

Learning to work in asymmetric relationships: insights from the computer software industry

2015 ◽  
Vol 20 (1) ◽  
pp. 1-10 ◽  
Author(s):  
Lourdes Pérez ◽  
Jesús Cambra-Fierro
Keyword(s):  
Small Firms ◽  
Computer Software ◽  
Easy Access ◽  
Senior Managers ◽  
Value Appropriation ◽  
Content Type ◽  
Specific Investments ◽  
Key Dimensions ◽  
Novel Concept ◽  
Relational Management

Purpose – This paper aims to provide guidance for managers so that they may develop advanced supply chain management (SCM) capabilities in the context of asymmetric alliances. These alliances, generally characterised by large dissimilarities between the partners, often facilitate value-creating opportunities. Design/methodology/approach – Using case studies, the paper analyses similarities and differences in SCM between symmetric and asymmetric alliances within supply networks. It focusses on the key dimensions of complementarity, value distribution, relational management and specialisation. Findings – It was found that the question of complementarity, although important, should not be equated to the need for symmetry but to the ability of the firms in the supply network to learn to work together. For small firms who seek co-creation with large partners, this means collaboration, specialisation through relation-specific investments, flexibility and understanding the overall value system in which their business relationships compete is important. Practical implications – Small firms seeking to develop advanced SCM capabilities have to accept responsibility for selecting a reduced number of key partners and managing relationships. Firms should proactively use the contractual process to learn about partners' expectations and goals and to identify committed champions. These factors play an important role in developing communications and trust, as small firms do not have easy access to senior managers in large corporations. Originality/value – This paper discovered a novel concept – dual value appropriation – where partners do not divide the total value generated as frequently proposed in the literature, but that it is fully appropriated, as it represents a different value proposition for each of them.

scholarly journals Gender and the use of external business advice: a Swedish study

2015 ◽  
Vol 7 (1) ◽  
pp. 105-124 ◽  
Author(s):  
Darush Yazdanfar ◽  
Saeid Abbasian
Keyword(s):  
Small Businesses ◽  
Small Firms ◽  
Important Variable ◽  
Small Business Owners ◽  
Firm Level ◽  
Content Type ◽  
Start Up ◽  
Gender Based ◽  
Start Ups ◽  
The Relationship

Purpose – The aim of this study is to examine whether there are significant differences between female and male entrepreneurs’ use of consultation during business start-ups. Design/methodology/approach – Using several statistical tools, including ANOVA and seemingly unrelated regressions, empirical analyses are conducted on a unique and firm-level panel database of 837 female- and 1926 male-owned active small firms. Findings – The results indicate that gender may be an important variable in the use of advice among small business owners in Sweden. Female owners in this study are shown to be more eager than male owners to use external business advice, and do so to a higher extent. Practical implications – One implication of this study is that firms may not be able to use all business advice types simultaneously during their start-up stage, so an ordered list of consultancy services would help them prioritize and adjust their needs accordingly. Because the use of business advice is context-based, the findings of this study may not be generalized to firms in other countries. This paper shows some gender-based attributes/features relating to the use of business advice, which need to be better integrated into policymaking for the future assistance of small businesses. Originality/value – This article focuses on an important issue and is unique partly because few studies have examined the relationship between gender and external business advice. By explicitly and empirically examining this issue, this article makes a contribution to the small- and medium-sized enterprises’ literature.

University social responsibility and empathy in organizations during COVID-19 pandemic in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariane Lemos Lourenço ◽  
Mara Rosalia Ribeiro Silva ◽  
Rafael Santana Galvão Oliveira
Keyword(s):  
Social Responsibility ◽  
Secondary Data ◽  
The Elderly ◽  
Online Classes ◽  
Case Study Methodology ◽  
Content Type ◽  
Study Methodology ◽  
Psychological Assistance ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between empathy and social responsibility (SR) practices in a university organization in Brazil during the COVID-19 pandemic in 2020. Design/methodology/approach The research was qualitative, using case study methodology. The case study was about the Brazilian organization Ânima Educação, which is the greatest among the five largest publicly traded education companies in Brazil. Secondary data collection and content analysis was carried out. Findings As emotional response toward the problems caused by the pandemic, the company's leadership adopted an empathic behavior, allowing traces of its empathic culture to emerge. Empathy was expressed through the implementation of SR practices aimed at workers (policy of not firing in the first two months of the pandemic), at students (provision of technological apparatus, online classes, physical/psychological assistance and negotiation of late fees) and at the society (assistance to the elderly). Originality/value It was concluded that empathy can be taken as the emotional motivator for companies to engage in SR practices, especially in extreme circumstances in society, as the economic and health challenges that the world is experiencing with the COVID-19 pandemic nowadays. SR practices, in turn, can foster even more empathy in organizations, mobilizing leaders and their respective groups in the creation and implementation of new practices, thus demonstrating that the relationship between empathy and SR practices is a “two-way street.”

Power, dependence and frustration

2015 ◽  
Vol 23 (3) ◽  
pp. 250-275 ◽  
Author(s):  
Gerard Stone
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Owner ◽  
Content Type ◽  
Information Power ◽  
Theoretical Perspectives ◽  
Advisor Roles ◽  
The Relationship ◽  
Practical Implications ◽  
Advisory Role

Purpose – This study aims to explore the existence and strength of power through focussing on the manner in which accountants exercise power in their advisory relationship with small business. Design/methodology/approach – Interviews provided insights into accountants’ power-related perceptions, experiences and use of power in the advisory relationship. A questionnaire accessed evidence from small business owner-managers (SBOMs). Power theoretical perspectives informed the analysis of the findings. Findings – Accountants’ expert and information power is a consequence of SBOMs’ dependence on their accountants’ expertise and knowledge. Accountants construct advisor roles and exercise power in a manner indicating that they attempt to manage rather than exploit power imbalances to the detriment of dependent SBOMs. However, outbreaks of frustration and conflict in the relationship illustrate the difficulties in managing the dysfunctional consequences of power imbalances. Research limitations/implications – While the findings are restricted to the Australian accountant–small business advisory relationship, they offer a basis for research into the effect of power on the relationship in other national contexts. Research which includes the views of managers of failed small businesses would also extend this work. Practical implications – The study’s focus on accountants’ experiences can assist practitioners endeavouring to develop advisory relationships with small business and designers of professional development programmes seeking to optimise the value of the advisory relationship. Originality/value – The paper extends the study of power to the under-researched yet important accountant–small business advisory area. Its findings are of interest to accountants and accounting policymakers who envisage a broadening of accountants’ small business advisory role.

scholarly journals VALUE CO-CREATION THROUGH SOCIAL MEDIA: A CASE STUDY OF A START-UP COMPANY

2019 ◽  
Vol 20 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Junic Kim ◽  
Hwanho Choi
Keyword(s):  
Social Media ◽  
Value Creation ◽  
Small Businesses ◽  
Start Up ◽  
Media Platform ◽  
Social Media Tools ◽  
Start Ups ◽  
The Relationship ◽  
Social Media Strategy

This research examines social media users’ value-creation processes and the drivers of a start-up company’s successful social media strategy. This research primarily aims to understand start-ups’ effective utilization of social media and value co-creation processes. Although utilizing social media has become key for many organizations, start-ups and small businesses often suffer from a lack of understanding and knowledge of the utilization of social media tools. Therefore, this article uses a case study on the relationship between a social media platform and users’ value co-creation to offer a conceptual framework for start-ups to consider in utilizing social media. Our research reveals that four core drivers of social media success include experience, satisfaction, expression, and sharing ability. Each of these drivers in turn contains conditions for understanding users’ value-creation process and the creation of drivers for successful social media strategies. The research contributes to literature by providing a detailed review of users’ value co-creation as a part of a start-up’s successful social media strategy.

Family businesses: fertile environments for conflict

2015 ◽  
Vol 5 (2) ◽  
pp. 294-314 ◽  
Author(s):  
Steffen Großmann ◽  
Arist Von Schlippe
Keyword(s):  
Social Systems ◽  
Theoretical Background ◽  
Individual Characteristics ◽  
Future Research ◽  
Business Systems ◽  
Content Type ◽  
Study Approach ◽  
Holistic Understanding ◽  
The Relationship

Purpose – The purpose of this paper is to present an innovative study with a twofold focus: on highly escalated family business (FB) conflicts and on the interactions between conflicts and the failure of the company as FB. The authors devoted this paper to the question of how family-related conflicts are connected with the demise of FB. Conflicts constitute an essential part of every FB and may definitely have the power to superimpose the performance of the FB as well as the family life in a destructive way. Especially, highly escalated so called relationship conflicts can be seen as one reason for the failure of FB. Design/methodology/approach – The research aims at analysing the meaning of conflict in FB with respect to the failure of the FB. Therefore, the authors use an explorative case study approach. The study is based on a total of five case studies. As the authors use theory of social systems as a theoretical background, the authors focused in the analysis in all cases on patterns rather than on individual characteristics. Findings – As an essential part of the study the authors formulated eight hypotheses describing specific patterns of the conflict process as a communicative system. These hypotheses convey a comprehensible impression of the effects conflicts may have within FB and present a number of new facets of conflict dynamics and patterns of escalation in FB. Originality/value – In particular, the authors provide new insights into the dynamics of highly destructive forms of conflicts in FB and the relationship between family-related conflicts and the failure of FB. The authors also pave the way for future research that aim to develop a more holistic understanding about when and why the outcomes from family and business systems will conflict or be harmonious.

Aspiration, foreignness liability and market potential

2018 ◽  
Vol 35 (6) ◽  
pp. 1009-1032
Author(s):  
Lee Li ◽  
Gongming Qian ◽  
Zhengming Qian ◽  
Irene R.R. Lu
Keyword(s):  
Performance Feedback ◽  
Small Firms ◽  
Theory Of The Firm ◽  
Market Potential ◽  
Content Type ◽  
Country Market ◽  
International Behavior ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

PurposeUsing behavioral theory of the firm, the purpose of this paper is to examine how a small firm’s performance relative to historical and social aspirations is related to its international entrepreneurial orientation (IEO). This study also explores two environmental factors, liability of foreignness (LoF) and host-country market potential (HMP), as the moderators for the relationship of performance and IEO.Design/methodology/approachThis study uses survey for data collection from Canadian small firms and employs regression models for data analysis.FindingsThe results show that small firms demonstrate stronger IEO when their performance is below aspirations, but their IEO diminishes when their performance exceeds aspirations. The authors also found that a small firm’s LoF does not moderate the impact of its performance feedback on IEO. However, the authors found HMP plays a moderating role when a small firm’s performance is below aspirations.Originality/valueThis study investigates the relationship of IEO to aspiration and found that this relationship is moderated by HMP. The study advances our knowledge on small firms’ international behavior.

Confronting the unprecedented: micro and small businesses in the age of coronavirus disease 2019

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alessandro Bressan ◽  
Abel Duarte Alonso ◽  
Seng Kiat Kok
Keyword(s):  
Small Businesses ◽  
Design Methodology ◽  
Small Firms ◽  
Theory Of Planned Behaviour ◽  
Theoretical Framework ◽  
Wine Industry ◽  
Online Questionnaire ◽  
Content Type ◽  
Key Stakeholders

PurposeThe purpose of this study is to understand how micro and small firms are navigating through the coronavirus disease 2019 (COVID-19) threat, and the alternatives they are implementing to coexist with the ongoing crisis. To this end, Italy's socioeconomically and traditionally significant wine industry is examined. The study considers insights of the theory of planned behaviour (TPB) and develops a theoretical framework, which proposes various emerging theoretical dimensions, including proactiveness, support-reliance and resourcefulness.Design/methodology/approachWinery owners–managers were contacted and invited to partake in the study completing an online questionnaire. Overall, 167 useable responses were collected.FindingsWhile facing the loss of vital income through decreasing demand and exports, participants resort to exploiting various initiatives, including “reinventing” their firms. Their observations also recognise the vital supporting role of various key stakeholders, first and foremost family members, as well as clients and staff. Concerning how owners-managers envision managing their firm post-COVID-19, two predominant groups are identified, one strongly favouring modern-day alternatives, and the second committing to the firm's traditional business model. Overall, the different predictors of the TPB, namely attitude, subjective norms and perceived behavioural control emerged.Originality/valueThis study is one of the first that empirically analyses micro and small firms in a socioeconomically and traditionally significant industry during an unprecedented event. In addition, the proposed theoretical framework provides a roadmap and guide to examine, understand and assimilate the entrepreneurial journey through a devastating event.

Doing Business in Paradise

2011 ◽  
pp. 221-243
Author(s):  
Michelle L. Kaars-Brown ◽  
Chingning Wang
Keyword(s):  
Financial Management ◽  
Small Businesses ◽  
Small Firms ◽  
Small Scale ◽  
British West Indies ◽  
Developmental Context ◽  
Financial Firms ◽  
Doing Business ◽  
Transfer Of Technology

This chapter presents findings from a case study of the Turks and Caicos Islands (TCI) in the British West Indies area of the Caribbean. TCI is a tax haven that has worked to attract offshore financial firms such as trust, insurance, and financial management companies. All of these firms, which qualify as “information intensive,” are small in size (average 11 employees), engage in business on a global basis, and yet must compete while dealing with local infrastructure challenges. TCI is presented as the developmental context in which small businesses (largely owned or managed by foreigners from other cultures) must interpret and cope with national infrastructure challenges in this very small, young, rapidly growing island nation. Not surprisingly, we found that these firms share similar challenges with those in other developing countries; however, the perceptions of these challenges and how these small firms cope provide insights into the importance of small firms, small-scale foreign investment, and cross-national transfer of technology expectations.

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