Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation

PurposeA global pandemic, broken supply chains, workforce constraints, technological advancements in artificial intelligence, etc. illustrate the continual threats that SMEs face. Extending the dynamic capability concepts of sensing, seizing and transforming, this research investigates practices by which SMEs successfully adapt over time.Design/methodology/approachA comparative case study method was employed using a purposive sample of SMEs, consisting of three American firms and one Canadian firm.FindingsThree sets of organizational practices, termed adaptive practices, that underlie dynamic capabilities for successful adaptation were identified: (1) continuous learning and process improvement, (2) leveraging reciprocal relationships and (3) communicating effectively.Research limitations/implicationsThe selected cases are from two countries in North America. Using a qualitative, inductive process, the authors are able to identify patterns of actions within various organizations; however, they are not able to establish causality.Practical implicationsThis study provides practical guidance for leaders to take action to improve their SME's dynamic capabilities for adaptation through creating coherent bundles of specified adaptive practices.Social implicationsBetter understanding of how SMEs successfully adapt to high uncertainty and business viability threats can result in multidimensional (e.g. financial, emotional) and multi-level (individual, family, community), positive outcomes for societal stakeholders.Originality/valueThe findings of this study build on the literature of dynamic capabilities and organizational practices and provide a practical foundation for effective adaptation, labeled as adaptive practices.

How coaching services help early stage entrepreneurs: an exploration of gender differences

PurposeEntrepreneurial support organizations, such as business incubators and accelerators (BIAs), provide coaching as a core element of their service offering for startups. Yet little is known about how coaching creates value from the entrepreneur's perspective. This is an important issue given that entrepreneurship is recognized as a gendered phenomenon. The purpose of this article is to explore how the coaching services provided during incubation create value for men and women entrepreneurs.Design/methodology/approachFocusing on university business incubators, our comparative qualitative study of 18 men and women entrepreneurs takes a grounded theorizing approach, and draws abductively on entrepreneurial learning theory, to explore the dimensions of coaching services that support venture development and explain gender differences.FindingsThe emergent explanatory model suggests that venture development is supported by coaching service design (at the incubator level) and by coaching content and rapport (at the entrepreneur-coach dyad level). Gender differences were observed in the emphasis placed on accessibility of coaching services provided by the incubator and the guidance provided by the coaches. We theorize that these findings reflect differences in entrepreneurial learning.Practical implicationsTo better support entrepreneurial learning, gender differences should be considered in both the design and delivery of coaching services.Originality/valueOur findings provide deeper insight about how coaching services create value for entrepreneurs by revealing explanatory dimensions at two levels of analysis and theorizing the interrelationship between entrepreneurial learning, gender and venture development.

Job challenges are hindrances too: examining experiences of managers and employees in Finnish SMEs

PurposeThe study aims to explore job demands experienced by employees and managers in micro-enterprises and small and medium-sized enterprises (SMEs). Drawing on the job demands framework, the study discusses the experienced demands from the perspective of challenges that create opportunities for learning and achievement and hindrances that create obstacles for work. The study builds on the idea that the same demand can be perceived both as a challenge and a hindrance. That approach opens a path to responding to challenges by reformulating working practices and removing hindrances by designing, developing and crafting jobs and tasks.Design/methodology/approachThe authors analyzed open-ended survey responses (N = 306) to study experienced job demands in 50 micro-enterprises and SMEs, how the perceived demands differ between employees and managers and whether they represent challenge or hindrance demands.FindingsThe authors identified 17 job demand categories most including both challenge and hindrance demands. Time management and prioritization was the most central challenge and hindrance category for both employees and managers. For employees, sales and stakeholder relationships represented the second largest challenge category and communication and information flow was the second largest hindrance category. For managers, the second largest challenge and hindrance categories were organization and management of activities and the fragmentation of work, respectively.Originality/valueBy focusing on employee experience, the achieve a more nuanced understanding of the SME context, which has been dominated by managerial evaluations. The study also advances the discussion on job demands by extending our knowledge of demands that may be experienced both as a challenge and a hindrance.

The centrality of organisational factors in the growth of new technology-based firms

PurposeNew technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs.Design/methodology/approachThe authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity.FindingsThe model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors – such as the level of innovation and the governance structure – that explain initiation of a growth trajectory and the intensity of the growth.Originality/valueBy using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.

Trust building in science-based SMEs in the North East of England: an ecosystem perspective

PurposeThis paper identifies exigent factors that enable and constrain trust building in a science-based innovation ecosystem.Design/methodology/approachSet in the Northeast England, this study adopts a processual sensemaking approach to thematically analyse interviews with a diverse range of participants in six science-based SMEs.FindingsThe findings provide a unique exposition of trust building in an innovation ecosystem across geographic and platform relationships. In doing so, the findings highlight factors outside of contractual agreements that enable or constrain trust building in an innovation ecosystem.Research limitations/implicationsLimitations centred on subjectivity in the use of thematic analysis, sample bias and size. Sampling limitations were mitigated through the research design and analysis.Practical implicationsThe findings provide unique insights into understanding the exigent factors that enable or constrain trust building in a science-based innovation ecosystem.Originality/valueThe study identifies five exigent factors that constrain or enable trust building in science-based SMEs' innovation ecosystem at a micro-level – building network relationships, degree of novelty, protection of innovations, propensity for adding value, propensity for risk.

Student entrepreneurship ecosystems at Australian higher education institutions

PurposeDespite the significance, university student start-ups and student entrepreneurship ecosystems (SEEs) have been subject to little research. This study aims to apply a qualitative emergent enquiry approach to explore best practice SEEs in Australia, complimented by narratives from leading scholars in higher education institutions with the aim of delineating the integrative components of SEEs.Design/methodology/approachAdopting the entrepreneurial ecosystem framework and aligned to the social cognitive theory, this paper explores the components and dynamics of SEEs, contributing to an understanding of how such components can better support the growth, sustainability and success of student start-ups. The authors extend entrepreneurship research on social construction using narrative research.FindingsThe findings provide guidelines for researchers, entrepreneurship scholars and educators, entrepreneurship students, policymakers and practitioners to enhance the impact and success of university student start-ups by adopting a student ecosystem approach.Research limitations/implicationsThe narratives represent a limited number of universities with an opportunity for further research to empirically measure the impact and outcomes of SEEs. The research is exploratory, inherently conceptual and emergent, providing an opportunity for validation of narrative frameworks in future studies.Practical implicationsThe findings may assist university managers to be more aware of their own subconscious preferences to student entrepreneurship and start-up initiatives, which may be useful in refining their impact and offerings regarding a quest toward the entrepreneurial university.Social implicationsFrom social perspectives, the alignment of the components of SEE has the ability to enhance and shift the entrepreneurial mindset of entrepreneurship students, notwithstanding enhancement of intentionality and self-efficacy.Originality/valueThis is the first study of SEEs in Australia, highlighting the importance of the integration of entrepreneurship education programs, entrepreneurship education ecosystems, the entrepreneurial university and specific start-up initiatives such as university accelerators. Furthermore, students may enhance their entrepreneurial mindset by actively engaging in such ecosystems.

Analysis of determinants of youth self-employment career choices

PurposeGiven the different manifestations of the unemployment crisis, the main purpose of this study was to identify what characteristics influence the participation of youth in key self-employment business options.Design/methodology/approachThe study has used both probability and nonprobability sampling techniques. Purposive sampling methods were used to identify target study areas (districts and Kebeles) while the systematic random sampling method was used to locate sample respondents. A total of 424 sample respondents were interviewed through interview scheduled questionnaires. Statistical data analysis was carried out using STATA 14 software.FindingsAgriculture, local value-added business activities, food-related services, petty trade and local transportation were common business choices where unemployed youths were engaged in. The findings of the study also showed that sex, loan size, loan repayment period and training gap were predictors of youth engagement in various self-employment career choices.Practical implicationsIncreasing loan size has a positive and significant influence on youth engagement in all self-employment business choices and has reminded us the need to revise or lift up loan size celling to assist youths in engaging in productive sectors. Similarly, the favourable correlation between female youths and value-added activities necessitates a well-designed female-specific intervention.Originality/valueAn understanding of the key determinants of youth preference to engage in specific self-employment career choices enables practitioners to intervene where necessary in supporting youth self-employment engagement. A combination of skill training, relaxed loan size and relaxed repayment is likely to gain sustainable business, which would benefit the local economy by transforming small businesses to a higher level and creating more job opportunities.

Management beyond a critical threshold of employees: evidence-based HR solutions for SMEs

PurposeThis research identifies human resource (HR) management challenges and associated solutions of a medium-sized organization that reached a critical threshold of employees and required formalized HR systems. HR solutions focused on using labour efficiently, linking pay to performance and motivating or rewarding desired employee behaviour are identified.Design/methodology/approachThis case study involved HR data analysis and 50 semi-structured interviews (SSIs) over 4 successive phases: HR audit, problem identification and job description validation, solutions analysis and feedback on outcomes. Additionally, HR files and schedules were reviewed to determine labour usage, organizational structure and compensation.FindingsHR problems and solutions associated with job analysis (e.g. role identity, role conflict), HR planning (e.g. scheduling, motivation), employee performance management (e.g. validity, employee empowerment) and compensation (e.g. inequity, turnover intentions) issues are clearly identified.Research limitations/implicationsTraditionally, HR theory or concepts are presented in a limited or isolated manner. However, this research provides an integrative assessment of numerous interrelated, complex, core HR concepts including role conflict, equity, employee empowerment, motivation, consensus building, accountability, change champions, communication and coaching.Practical implicationsThis multi-phased, multi-stakeholder approach to small and medium enterprise (SME) management informs organizational leaders about HR problems and solutions they may encounter as they grow and require formalized HR systems. The proposed solutions can help safeguard organizational survival.Originality/valueThis research bridges HR theory with HR practices focusing specifically on SMEs. In addition, SMEs can benefit from the HR process information presented to conduct similar evidence-based HR problem and solution assessments.

Testing the EntreComp framework and its relation to start-up behaviour in seven European countries

PurposeThe European Commission has published a general framework of entrepreneurship competence (EC), EntreComp, to create a shared definition and support its development. This study proposes and tests a scale to measure EC based on the EntreComp framework and examines its relation to start-up behaviour using data from seven European countries.Design/methodology/approachThe data were gathered from seven European countries and consist of 1,128 answers from both secondary and higher education level students. The authors use explorative factor analysis (EFA), analysis of variance and logistic regression analysis as data analysis methods.FindingsThe results show that EC is related to start-up behaviour and sensitive to role models and prior experience of entrepreneurship but is not sensitive to gender or level of education. The results also show that although the framework proposes three distinct areas, EC is unidimensional.Originality/valueThe study tests the EntreComp framework and introduces a scale for measuring EC based on the framework. The results show that EC can be addressed as unidimensional construct and that it explains start-up behaviour and develops through enterprising activities. The study also shows the impact of role models on EC. No difference in EC between genders is observed, suggesting the gender differences in entrepreneurship arise from factors other than competence.

Dynamic capability, ambidexterity and social network—empirical evidence from SMEs in China

PurposeThe investigation of organization's ambidextrous innovation is a challenge in the research studies of management sciences. As existent literature showed a positive relation between dynamic capability (DC) and innovation, few empirical studies are conducted to explain how DC impacts on the balanced and combined dimension of ambidexterity and still less on how social network moderates this relation. As a result, this paper aims to investigate and provide empirical evidence on DC’s influence on ambidexterity in the context of China.Design/methodology/approachBy a relational model of DC, ambidextrous innovation and social network, this study has conducted multiple regression analysis on the data collected from 350 small and medium enterprises (SMEs) in mainland China.FindingsThe results show that, DC has positive influence on both the combined and balanced dimension of ambidexterity; and both the relational network and structural network play an inverted U moderating role, where the moderation of relational network is stronger than that of structural network.Originality/valueThis study provides empirical support on DC's influence on ambidexterity together with the moderation of social network.