Entrepreneurial ecosystems during COVID-19: the survival of small businesses using dynamic capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sumayya Rashid ◽  
Vanessa Ratten
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Global Economy ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Entrepreneurial Ecosystem ◽  
Global Crisis ◽  
Content Type ◽  
The World ◽  
Dynamic Capabilities Perspective

PurposeThe world is going through a global crisis after the outbreak of coronavirus (COVID-19) in most areas of the world. Businesses particularly small ones do not work in isolation but instead are embedded in an entrepreneurial ecosystem that is dependent on environmental conditions. The disruptive changes from COVID-19 have caused serious damage to the global economy, so it is up to entrepreneurs to bring equilibrium by introducing change. This paper adopts the lens of dynamic capabilities to study how small business entrepreneurs are trying to survive and grow in an entrepreneurial ecosystem affected by coronavirus.Design/methodology/approachUsing qualitative research methods, 20 Pakistani entrepreneurs have been interviewed in order to assess how the entrepreneurial ecosystem in an emerging economy has been affected by COVID-19. This enables a contemporary and realistic understanding about the way small business entrepreneurs have adjusted to a crisis.FindingsFrom the data analysis, the three main dimensions of dynamic capabilities for small business entrepreneurs emerge, which involve a sensing, seizing and transforming capability.Research limitations/implicationsThe findings suggest that small businesses utilise the following strategies to cope with change: emergent humanitarian crisis, carte blanche agile business models and effectual business functions. These findings contribute to the literature about the challenges of current crises and how businesses can cope in this situation using a dynamic capabilities perspective.Practical implicationsThe findings contribute to the ability of small businesses to cope during the current pandemic situations and anticipate how to manage future crises. Furthermore, the entrepreneurial practices exercised by small businesses are also presented that represent an innovative way to understand crisis management techniques by entrepreneurs in emerging economies.Social implicationsThese findings contribute to the literature about the challenges of current crises and how businesses can cope in this situation using a dynamic capabilities perspective.Originality/valueBy drawing on the existing literature of COVID-19's impact on businesses, the theoretical contribution of this paper highlights the applicability of dynamic capabilities on small businesses to survive during the global crisis.

Small businesses during a global crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Case Studies ◽  
Emerging Economies ◽  
Small Businesses ◽  
Design Methodology ◽  
Reading Time ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Small businesses in emerging economies have been hit hard during the global COVID-19 pandemic. Utilizing key dynamic capabilities enables business models and strategies to be modified accordingly to provide these entrepreneurs with new opportunities that can help them achieve stability and survival. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals The crucial role of market intelligence in the development of small business marketing capabilities

2020 ◽  
Vol 27 (5) ◽  
pp. 797-816
Author(s):  
Grace Carson ◽  
Christina O'Connor ◽  
Geoff Simmons
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Dynamic Capabilities ◽  
Marketing Strategies ◽  
Marketing Capabilities ◽  
Resource Based View ◽  
Content Type ◽  
Market Intelligence ◽  
The Relationship

PurposeDrawing on the resource-based view of the firm, this article explores the influences of market intelligence on the development of small business marketing capabilities, with reference to specialized marketing capabilities, architectural marketing capabilities and dynamic capabilities.Design/methodology/approachThe conceptual framework and propositions present and interpret the resource–capability complementarity between market intelligence and small business marketing capabilities and outline the relationship between individual capability sets.FindingsMarket intelligence is shown to be crucial in the development of small business marketing capabilities and in the implementation of more formalized marketing strategies that allow small businesses to create value for customers and improve their performance. However, the level to which market intelligence is utilized and marketing capabilities are developed is found to be considerably influenced by the small business owner-manager and firm learning.Practical implicationsIt is imperative that small businesses acknowledge the practical benefits of market intelligence and harness these advantages accordingly. However, owner-managers must be motivated to encourage the development of more formalized marketing capabilities and act incisively upon the information derived from market intelligence.Originality/valueRecent research indicates that market intelligence and marketing capabilities can interact to enable a firm to align its resources with the market, by providing customer insights that guide them as to which value-adding activities they should implement. However, extant research in this area remains in its infancy, and very little is known about the adoption processes of market intelligence in small businesses and its role in developing marketing capabilities.

scholarly journals Social Media use and value creation in the digital landscape: a dynamic-capabilities perspective

2020 ◽  
Vol 31 (3) ◽  
pp. 313-343
Author(s):  
Aurora Garrido-Moreno ◽  
Víctor García-Morales ◽  
Stephen King ◽  
Nigel Lockett
Keyword(s):  
Social Media ◽  
Value Creation ◽  
Dynamic Capabilities ◽  
Media Use ◽  
Business Value ◽  
Customer Engagement ◽  
Social Media Use ◽  
Content Type ◽  
Social Media Tools ◽  
Dynamic Capabilities Perspective

PurposeAlthough Social Media use has become all-pervasive, previous research has failed to explain how to use Social Media tools strategically to create business value in today's increasingly digital landscapes. Adopting a dynamic capabilities perspective, this paper empirically examines the specific process through which Social Media use translates into better performance and the capabilities involved in this process.Design/methodology/approachA research model is proposed that includes both antecedents and consequences of Social Media use. Existing research was examined to derive the research hypotheses, which were tested using SEM methodology on a sample of 212 hotels.FindingsThe results show that Social Media use does not exert significant direct impact on organizational performance. Rather, the findings confirm the mediating role played by Social CRM and Customer Engagement capabilities in the value creation process.Practical implicationsThe results demonstrate how Social Media tools should be implemented and managed to generate business value in hotels. Implications yield interesting insights for hotel managersOriginality/valueThis study is a first attempt to analyze empirically the real impact of digital media technologies, particularly Social Media use, drawing on the dynamic capabilities perspective and focusing on service firms (hotels). Including the variable “Organizational Readiness” as a basic prerequisite to benefit from Social Media use enhances the study's novelty and contribution.

London’s local Olympic legacy

2019 ◽  
Vol 12 (2) ◽  
pp. 142-163 ◽  
Author(s):  
Michael B. Duignan
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Local Development ◽  
Secondary Data ◽  
Business Failure ◽  
Business Policy ◽  
Content Type ◽  
Business Sustainability ◽  
Ex Post ◽  
Small Business Sustainability

PurposeLondon’s Candidature bid projected an irresistible legacy of lasting benefits for host communities and small businesses. Yet, local post-Games perspectives paint a contrasted picture – one of becoming displaced. This paper aims to draw on event legacy, specifically in relation to rising rents, threats to small business sustainability and impact on place development by empirically examining London’s localembryonic legaciesforming across one ex-hosting Olympic community: Central Greenwich.Design/methodology/approachIn total, 43 interviews with local businesses (specifically, small retailers and hospitality businesses), local authorities, London-centric and national project actors and policymakers underpin analysis, supported by official London 2012 archival, documentary and media reports, were conducted to add texture and triangulate primary and secondary data sources.FindingsJuxtaposing ex ante projections vs emerging ex post realities, this paper reveals a local legacy of small business failure fuelled by rising commercial rents and a wider indifference for protecting diverse urban high streets. Embroiled in a struggle to survive, and barely recognised as a key stakeholder and contributor to legacy, small businesses have and continue to become succeeded by a new business demographic in town: monochromatic global and national chains. Typifying the pervasive shift toward clone town spaces, this article argues that corporate colonisation displaces independent businesses, serves to homogenise town centres, dilute place-based cultural offer and simultaneously stunts access to a positive local development legacy. This paper argues that such processes lead to the production of urban blandscapes that may hamper destination competitiveness.Originality/valueExamining event legacy, specifically local legacies forming across ex-host Olympic communities, is a latent, under-researched but vital and critical aspect of scholarship. Most event legacy analysis focuses on longer-term issues for residents, yet little research focuses on both local placed-based development challenges and small business sustainability and survival post-Games. More specifically, little research examines the potential relationship between event-led gentrification, associated rising rents and aforementioned clone town problematic. Revealing and amplifying the idiosyncratic local challenges generated through an in-depth empirically driven triangulation of key local business, policy, governmental and non-governmental perspectives, is a central contribution of this article missing from extant literatures. This paper considers different ways those responsible for event legacy, place managers and developers can combat such aforementioned post-Games challenges.

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.

Industry Peer Networks (IPNs)

2019 ◽  
Vol 42 (1) ◽  
pp. 122-140 ◽  
Author(s):  
Ada Leung ◽  
Huimin Xu ◽  
Gavin Jiayun Wu ◽  
Kyle W. Luthans
Keyword(s):  
Small Businesses ◽  
Business Performance ◽  
Business Models ◽  
Peer Networks ◽  
Operating Efficiency ◽  
Structured Interviews ◽  
Firm Level ◽  
Content Type ◽  
Industry Trends ◽  
Over Time

Purpose This paper aims to examine a type of interorganizational learning called Industry Peer Networks (IPNs), in which a network of non-competing small businesses cooperates to improve their skills and to stay abreast of the industry trends, so that the firms remain competitive in the local and regional markets. The key characteristic of an IPN is the regular gathering of peers in small groups (typically 20 or fewer carefully selected members) in an atmosphere of significant trust, guided by a facilitator, to participate in a series of formal and informal activities through established guidelines, to share knowledge about management and marketing, exchange information about industry trends beyond their core markets, discuss issues related to company performance and provide constructive criticism about peer companies. Design/methodology/approach The qualitative research on the context included visits to 13 peer meetings, three workshops for peer members, seven semi-structured interviews with members and many communications with the founder, chairman, committee chairpersons and several facilitators of peer meetings that spanned across five years. Data collection and analysis followed grounded theory building techniques. Findings The authors identified both cooperative and competitive learning practices that a small business could carry out to grow from a novice to an expert IPN peer member. The cooperative elements such as peer discussions, disclosure of financial data and exposure to various business models allow member firms to learn vicariously through the successes and/or failure of their peers. At the same time, the competitive elements such as service delivery critiques, business performance benchmarking and firm ranking also prompt the members to focus on execution, to emphasize accountability and to strive for status in the network. The IPN in this research has also built network legitimacy over time, and it has sustained a viable administrative entity that has a recognizable form and structure, whose functions are to strategically manage network activities and network growth to attract like-minded new members. Research limitations/implications First, because this research focused on fleshing out the transformative practices engaged by IPN peers, it necessarily neglected other types of network relationships that affect the small businesses, including local competitors, vendors and customers. Second, the small employment size of these firms and the personal nature of network ties in the IPN may provide an especially fertile ground for network learning that might not exist for larger firms. Third, the technology-intensive and quality-sensitive nature of IT firms may make technological trend sensitization and operating efficiency more competitive advantages in this industry than in others. Finally, although participation in IPN is associated with higher level of perceived learning, the relationship between learning and business performance is not yet articulated empirically. Practical implications The study contributes to the understanding of cooperative/competitive transformative practices in the IPN by highlighting the defining features at each transformation stage, from firms being isolated entities which react to market forces to connected peers which proactively drive the markets. IPNs are most effective for business owners who are at their early growth stage, in which they are positioned to grow further. Nevertheless, the authors also present the paradoxical capacity of IPNs to propel firms along trajectories of empowerment or disengagement. Social implications As 78.5 per cent of the US firms are small businesses having fewer than 10 employees, the knowledge of firm and IPN transformation is important for both researchers and advocates of small businesses to understand the roots of success or failure of firms and the IPNs in which they are embedded. Originality/value Earlier research has not explored the network-level effects as part of a full array of outcomes. Instead, research involving IPNs has focused primarily on the motivation and immediate firm-level outcomes of IPNs. Research to this point has also failed to examine IPNs from a developmental perspective, how the firms and the IPN as a network transform over time.

scholarly journals Organizational and economic features of the functioning of small enterprises of the forest sector of economics and the causes of strengthening the deformation of enterprise activity

2018 ◽  
Vol 80 (2) ◽  
pp. 490-496
Author(s):  
E. A. Kolesnichenko ◽  
Yu. M. Sokolinskaya
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Forest Sector ◽  
Careful Study ◽  
Economic Policies ◽  
Economic Management ◽  
Strategic Resources ◽  
The World ◽  
Reducing Costs ◽  
Regional Budgets

In modern Russian conditions of economic management, it is important to analyze deformations in the development of small business in those sectors of the economy that are strategically important for the development of the economy of the whole country. So, for Russia strategic resources, determining the vector of development of its economy, among others are forestry. This is due to the fact that Russia is the world's largest country with forest resources. It ranks first in the world in terms of forest area and the volume of timber reserves. In addition, the development of entrepreneurship in forestry, including small business, is the most problematic in the current economic conditions. Due to the specific scope and the lack of financial capacity of small businesses in this sector demonstrates the lack of effectiveness in its development, which is reflected in the increase in arrears to the budgets of all levels, increasing the size of the shadow work and others. The results of the survey of small business leaders revealed that businesses can to lead a part of the activity into the shadow, first of all, with the goal of reducing costs. According to the estimates of the World Wide Fund for Nature, the extent of deforestation in the informal sector in Russia is more than 30%, and in the surplus regions up to 59-70%. According to expert estimates, federal and regional budgets are losing every year in this connection from 1 to 1.5 billion rubles. forest payments. The reasons for the deforming activities in small business are inadequate state, legal and economic policies and the lack of effective measures to support small business. This necessitates a more careful study of the implemented instruments of state support for small business in the forest sector of the economy, taking into account the currently existing factors of business deformation.

Polish perceptions on changing the world with sustainable entrepreneurship

2021 ◽  
Vol 37 (4) ◽  
pp. 19-21
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Business Models ◽  
Design Stage ◽  
Model Design ◽  
Content Type ◽  
Coffee Waste ◽  
The World ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper highlights how circular economy business models focus on the regenerative value creation inherent in reusing resources and waste. Circular startup transformations see founders moving out of sustainability-focused mindsets and into taking specific action to construct innovative circular business models. The purpose-led founders combined environmental and economic goals to produce scalable engines capable of inspiring and educating customers and larger companies on the beauty of reusing waste. Solving universal problems at their business model design stage allowed the Polish startups – for example, EcoBean who make renewable energy coffee briquettes from coffee waste – to offer value to international customers. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals The contribution of human resource development managers to organisational branding in the hotel industry in India and South East Asia (ISEA): a dynamic capabilities perspective

2020 ◽  
Vol 43 (1) ◽  
pp. 131-153
Author(s):  
Adebayo Serge Francois Koukpaki ◽  
Kweku Adams ◽  
Adegboyega Oyedijo
Keyword(s):  
East Asia ◽  
Human Resource Development ◽  
Human Resource ◽  
Dynamic Capabilities ◽  
Hotel Industry ◽  
Resource Development ◽  
South East Asia ◽  
Quality Service ◽  
Content Type ◽  
Dynamic Capabilities Perspective

PurposeThis research explores the significant contribution of human resource development (HRD) managers in building organisational brands in the hotel industry through the lenses of dynamic capabilities for sustaining competitiveness.Design/methodology/approachUsing a qualitative case study design, this study deployed a semi-structured interview research method. It used a purposive sample of 20 HRD managers across twenty different hotels in India and South East Asia (ISEA) to explore their contribution to organisational brands. The data was analysed using thematic analysis.FindingsThe findings show the significance of HRD in building organisational brands. From a dynamic capabilities perspective, it was found that HRD has an impact on fostering brand awareness culture; HRD functional branding enhances the creation and sustaining of quality service culture; functional branding of HRD helps differentiate the brand and quality service, for product development and innovation by linking talent development and growth of key competencies and capabilities; brand training and behavioural training directly influence the right behaviour knowledge and effective communication that is translated into the enhancement of guest experience; and finally, organisational branding through branding culture and employer branding creates organisational wealth.Originality/valueThe authors propose a new conceptual framework for the branding of the Heroes to reclaim the HRD's splendour in the realm of other functions in the hotel industry in ISEA contexts. While the authors do not claim an external generalisability, we believe that an analytical application of this framework could be relevant in similar environments. The study also claims that HRD practitioners could use parallel literature repertoires from brand management discourse to value their strategic contributions in building and maintaining their reputational position at the board level. Practical implications and further research are discussed.

Virtual workplaces and lean leadership: integrative conceptualization and organizational implications

2020 ◽  
Vol 19 (4) ◽  
pp. 177-181
Author(s):  
Talina Mishra ◽  
Lalatendu Kesari Jena
Keyword(s):  
Design Methodology ◽  
Research Articles ◽  
Employee Morale ◽  
Virtual Leadership ◽  
Global Crisis ◽  
Secondary Research ◽  
Content Type ◽  
Organizational Goals ◽  
Virtual Workplace ◽  
The World

Purpose The purpose of this paper is to integrate the concept of lean in the world of virtual leadership by continuously engaging employees and building efficient teams to increase the effectiveness of digital workplaces. Design/methodology/approach Secondary research from various research articles by authors in lean and leadership was done. Findings Lean leadership can serve as a great way to boost employee morale and enrich their experience in times of global crisis. Employees can effectively contribute to the organization with the help of virtual lean teams and tools. Originality/value This paper adds to the scarce literature on the integration of lean and leadership by exploring the various ways in which employees can be empowered to achieve organizational goals in the virtual workplace.

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