Journal of Small Business and Enterprise Development

Computer acceptance in Greek SMEs : Table of Contents

Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – Owing to the unique computing needs and different IT adoption patterns of SMEs, research findings concerning larger organisations may not be fully generalisable to offer practical assistance for the successful utilisation of computers. This paper aims to focus on factors affecting personal computer acceptance, using data from 278 employees from Greek SMEs. Design/methodology/approach – An aggregate structural model is developed, based on the technology acceptance model (TAM) and incorporating social influence, management support, perceived service quality and computer satisfaction factors, that was tested using structural equation modelling (SEM). Findings – The results indicate that perceived ease of use is more powerful in explaining computer usage and satisfaction, whereas usefulness has a strong impact on intention. Moreover, the findings underline the importance of internal (management) and external support in achieving wider computer acceptance. Research limitations/implications – Factors such as end-user training, facilitating conditions, self-efficacy and computer anxiety should be incorporated into the model for a more complete understanding of the factors that influence computer acceptance in SMEs. Practical implications – The results indicate the importance of ease of use and usefulness perceptions, as well as computer satisfaction. Therefore management should pay special attention to the enhancement of such positive perceptions through adequate support and encouragement. Originality/value – This is one of the few studies in the literature to incorporate intention, actual usage and satisfaction in a single model, which is tested using data from SMEs. Overall, the final model can explain 60 per cent and 54 per cent of the variance in actual computer usage and computer satisfaction, respectively.

When management and customers see eye-to-eye: the agreement factor and performance : Table of Contents

Cinzia Dessì, Michela Floris — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – The paper aims to focus on management-customer relations as a way to understand the competitive advantages of small/medium-sized family businesses. The aim of this work is to verify whether management perceptions of business strengths and customer perceptions of the same strengths agree, and whether this agreement (perceptive concordance) can become an important factor in maintaining the firm's competitive advantages. Design/methodology/approach – The research is carried out through a single case study with a sample of 120 customers. Findings – The findings indicate that when management and customers agree on certain business issues, performance benefits. Comparing management's perception of strengths and customers' perceptions of the same strengths allow one to relate what the firm thinks of itself to what the customer sees in it. Practical implications – The research offers useful information about the efficiency of the firm's external communications and demonstrates that a shared language between the firm and its customers does exist and is understood by both entities. Moreover, practical implications are related to customers' degree of satisfaction with respect to management beliefs, and to management's opportunity to correct the weaknesses revealed by the agreement factor. Originality/value – The paper provides a different perspective on how to analyse competitive advantage inside small to medium-sized family businesses with cases and specific analyses not considered in depth by the family business literature.

Ethnic minority businesses and immigrant entrepreneurship in Greece : Table of Contents

Panagiotis Piperopoulos — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – The present paper aims to report and analyse empirical data from 391 ethnic minority entrepreneurs and 132 of their family members, from eight different ethnic communities of Albanians, Armenians, Bulgarians, Chinese, Georgians, Indians, Nigerians and Russians in Greece. Design/methodology/approach – The paper presents empirical data from face-to-face interview-type research conducted between January 2006 and August 2008 in the regions of Attica and Central Macedonia, Greece. The selection criteria used for the inclusion of enterprises in the ethnic minority business (EMB) database were: ethnicity of the business owner; sectors, including traditional sectors and emerging sectors of EMB; and finally location, i.e. in the regions of Attica and Central Macedonia. Findings – The findings of this research point to the fact that the three theories of “block mobility”, “opportunity structures” and “ethnic resources” complement each other in explaining the process of starting up an ethnic minority business and becoming self-employed, while the “cultural thesis” seems to stand on its own. Originality/value – This paper presents the results of the first-ever large-scale authoritative analytical research on EMBs and immigrant entrepreneurship in Greece, provides empirical evidence to why and to what extent ethnic groups are attracted to self-employment, in which economic sectors they develop occupational niches, and how strong family participation and support is in the EMBs, and attempts to go beyond most of the existing literature, which is focused mainly on “Black” or “Asian” ethnic groups. The research makes a contribution by presenting empirical evidence of five “White”, one “Asian”, one “Indian” and one “Black” ethnic group.

The bias of unhealthy SMEs in bankruptcy prediction models : Table of Contents

J. Samuel Baixauli, Antonina Módica-Milo — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – This paper aims to construct a financial health indicator to define the degree of financial health in order to decontaminate the estimation sample and to make predictions that are not biased by unhealthy firms. Design/methodology/approach – The binomial logit model is used to examine the likelihood that a firm will go bankrupt. In order to evaluate the accuracy of the estimated models, measures proposed by the Basel Committee on Banking Supervision are applied: cumulative accuracy profile (CAP) and the receiver operating characteristics (ROC). Findings – The proposed financial health indicator permits the heterogeneity of the firms to be reduced as well as identifying a strong firm sample to estimate the bankruptcy probability accurately. Originality/value – A drawback of all bankruptcy prediction models comes from the fact that bankruptcy is an example of a homogeneous observable qualitative response while non-bankruptcy would be expected to be represented by a healthy firm. However, the non-bankruptcy firms are heterogeneous and their actual probabilities of bankruptcy are non-observable. The article adds to the previous literature on SMEs' bankruptcy prediction by using a financial health indicator to construct the estimation sample and to make accurate bankruptcy predictions.

The rapid growth of young firms during various stages of entrepreneurship : Table of Contents

Hannu Littunen, Hannu Niittykangas — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – This paper aims to examine factors influencing the high growth of new firms in metal-based manufacturing and business service firms in Finland. It seeks to compare the factors of how new firms achieve a high rate of growth during the first four years and years five to eight. Design/methodology/approach – The study reported here is part of a longitudinal research project that has followed the development of 200 SMEs in Finnish metal-based manufacturing and business services since their start-up in 1990. At the seven-year follow-up the present study concentrates on the 86 surviving firms. Logistic regression analysis was used as statistical technique in locating differences between high-growth and other firms and their owner-managers in the selected attributes. This paper focuses on Storey's key elements. In search of potential differences in these characteristics between high-growth firms and other firms, this study compares Finnish firms in relation to founders' motives in starting up on their own account and in their individual background characteristics, changes in strategic factors, changes in networks and management styles during various stages of entrepreneurship. Findings – The results indicated firstly that there is a clear connection between entrepreneur's know-how and the high growth of firms. Secondly, the findings of this study demonstrate that external networks as a management capability bring about great competitive advantage, innovations and efficiency, especially during the first four years. However, the findings of five to eight years of development contradict the findings of the first four years. The results show that the use of internal networks has a positive effect on firms' high growth during years five to eight years. Finally, the results show that industry sector affected high growth, especially in specialised metal industry firms, both during the first four years and after five to eight years of development. Research limitations/implications – The implications of this study for academics, educational institutions, entrepreneurs, and other practitioners are that the so-called support services of internationalisation and growth for new firms are most important. These support services could be developed with public sector assistance in areas such as financing research, innovation and information technology projects. Orginiality/value – The paper provides a framework for testing the factors that differentiate growing new ventures during various stages of entrepreneurship.

Linking firm and managers' characteristics to perceived critical success factors for innovative entrepreneurial support : Table of Contents

Jaloni Pansiri, Zelealem T. Temtime — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – This paper aims to examine perceived critical success factors (CSFs) affecting the performance of small to medium-sized enterprises (SMEs) and their relationship with firm characteristics. The paper also seeks to investigate the interdependence relationship among the perceived CSFs themselves using correlation coefficients. Design/methodology/approach – This paper is part of a wider study that was designed to investigate the perceived critical success/failure factors (PCSFs) affecting the development of SMEs. The study is based on a review of the literature, which provided a theoretical understanding of both CSFs and firm characteristics. This theoretical linkage was then tested using primary data that were collected through a two-page questionnaire survey of 203 SMEs randomly selected from three cities in the Republic of Botswana. Principal component analysis (PCA) with Varimax rotation was used to reduce the data. Analysis of variance (ANOVA) was conducted to test the relationship between firm characteristics and perceived impacts of selected CSFs, and correlations were used to assess the relationships between the CSFs. Findings – The study identifies ten sets of perceived CSFs affecting the performance of SMEs; statistically significant relationships between the perceived impact of selected CSFs and firm-specific variables, indicating that the perceived impact of CSFs vary from firm to firm depending on their size, age, industry, and management profile; and statistically significant relationships among the selected CSFs themselves. Research limitations/implications – The study relies exclusively on a questionnaire as the data collection instrument, and many respondents were unwilling to participate in the survey. Therefore, it took the authors eight months to collect 203 questionnaires. This forced the authors to make some important changes from the original research proposal. Practical implications – SME managers and advisors should not deal with CSFs individually, but should adopt an integrated and innovative approach to deal with them collectively. This approach should consider SMEs' uniqueness, given that these CSFs are perceived differently depending on firm characteristics. The paper forwards some research and policy implications for designing SME support and promotional interventions. Originality/value – The paper uses well-established and researched CSFs in the SME literature. To this end, the paper's originality and value lie in the investigation of these factors in Botswana. However, the findings are applicable to most SMEs, since they continue to suffer from the same problems worldwide.

Prior tacit knowledge and first-year sales: learning from technology entrepreneurs : Table of Contents

Matthew R. Marvel, Scott Droege — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – This paper aims to explore differences in tacit knowledge at opportunity recognition reported by founders of new technology ventures. The paper seeks to shed light on the types of tacit knowledge related to achieving sales within the first year of new technology ventures. Design/methodology/approach – A survey was administered to 145 technology venture founders during structured interviews across 13 university-affiliated technology incubators. To investigate tacit knowledge a framework was used comprised of ways to serve markets, customer problems, markets, and technology. The results were analyzed using t-tests and logistic regression while controlling for founder's years of work experience. A configuration analysis is presented revealing the patterns of knowledge related to sales in the first year of new ventures. Findings – The study provides an understanding of how types of tacit knowledge relate to early sales outcomes in the high technology context. Prior hands-on experiences with development of products or services as well as prior experiences within markets were found vital to achieving first-year sales for newly created innovations. On the other hand, tacit knowledge of customer problems and technology is, surprisingly, of less importance. Research limitations/implications – The findings provide insights as to the particular hands on experiences important in achieving desirable venture outcomes. By identifying and developing tacit knowledge in particular areas (prior hands-on development experience and prior experience within markets) future entrepreneurs may develop an early sales advantage. The results demonstrate how configurations of tacit knowledge link to desired outcomes while highlighting the importance of certain knowledge at the opportunity recognition stage of new product development. Practical implications – Generation of early sales for new technology ventures is a momentous concern for enterprise development. The ability to identify specific types of knowledge that link to initial sales enables educators and entrepreneurs alike. Originality/value – The paper develops further a theoretical conceptualization of types of knowledge related to recognizing opportunities. The study contributes to the literature by assessing how patterns of tacit knowledge at opportunity recognition relate to achieving early sales in the context of technology entrepreneurship.

Liquidity management in small firms: a learning perspective : Table of Contents

Ignatius Ekanem — Mon Feb 22 02:05:17 GMT 2010

Abstract:
Purpose – This paper aims to focus on liquidity management in small firms and how this may be best met. It seeks to present results from eight case study firms to demonstrate different types of learning in small firms. Design/methodology/approach – The paper uses a qualitative methodology that involves in-depth, semi-structured interviews and direct observation, conducted longitudinally in eight case study companies. Findings – The findings suggest that liquidity management is either based on owner-manager past experiences, experiences of others or is strongly influenced by industry norms, which are shared rules within the industry, and not based on the calculation of costs and benefits of particular causes of action. Research limitations/implications – The study is limited to the extent to which it can be generalised to a wider population of small firms. The main implication is that policy makers should facilitate networking opportunities where owner-managers can interact with external advisors. Originality/value – The originality and value of the paper is that it conceptualises liquidity management in small firms as a learning process utilising closed and open loop learning.