Emerald | International Journal of Entrepreneurial Behaviour & Research

Towards a new model of success and performance in SMEs

Mike Simpson, Joanne Padmore, Nicki Newman — 2012-05-04 00:00:00.0

Abstract

Purpose – The purpose of this study is to develop an academic theoretical framework relating success and performance in small and medium-sized enterprises (SMEs) so that future research could be carried out to identify the critical success factors (CSFs) for SMEs. Design/methodology/approach – The research used a literature review, in-depth interviews with owner-managers of SMEs and a knowledge elicitation exercise was carried out based on the experience of the researchers and on the interviews with owner-managers. Findings – A new academic conceptual model was developed linking CSFs, definitions of success and performance to the characteristics of the business environment, the characteristics of the owner-manager and the characteristics of the business. The relatively new idea that feedback on performance in the model could modify the strategic/tactical behaviour of the SME owner-managers was introduced. Research limitations/implications – The many research problems posed by performance studies aimed at establishing CSFs in SMEs are still present in the current framework but a longitudinal research methodology could be employed to avoid these problems in future research. Practical implications – The theoretical framework offers a different way forward for both practitioners and business advisors in thinking about those factors that may be critical for success in SMEs. Originality/value – This is a new framework that can be used to inform thinking and research design in the area of performance measurement and success.

Family business management: Contribution of the CFO

Bruce Gurd, Jill Thomas — 2012-05-04 00:00:00.0

Abstract

Purpose – The interaction of the chief financial officer (CFO) with family and non-family managers is important for the financial management of a family business to maximise wealth creation within the business. This paper explores the role and the possible conflict with managers from the family. Design/methodology/approach – A mixed method is used combining interviews of CFOs, CEOs and a telephone survey of CFOs in Australia. Three propositions are tested. Findings – Surprisingly, the authors find no evidence that there is substantial role conflict as has been found in previous research. Relationships with the family CEO and other family and non-family managers are usually positive. Commitment to the business from the family and strong support from the CEO are identified as making the CFO's job easier. Conflict with external accountants appears to be minimised as external accountants usually focus on the management of personal financial affairs and taxation issues while the CFO focuses on business financial management. Research limitations/implications – The sample is Australian and relatively small. Practical implications – The contribution of the CFO will be optimised by giving them the opportunity to move out of the “bean counter” role to a more strategic financial management position. Originality/value – There is limited empirical evidence relating to the role of the CFO in the family business.

Performance drivers of serial entrepreneurs: Entrepreneurial and team experience

Florian Kirschenhofer, Christian Lechner — 2012-05-04 00:00:00.0

Abstract

Purpose – This paper aims to focus on the role of team and entrepreneurial experience for firm performance of serial entrepreneurs in the multi-media industry. Design/methodology/approach – The research assumes that serial entrepreneurs have certain advantages over novice entrepreneurs, such as the development of effective start-up teams and entrepreneurial experience effects. Disadvantages, however, are also mentioned in the literature, and these are assumed to out-balance the advantages, leading to mixed research findings. The hypotheses are tested on a sample of 52 European multimedia companies. Findings – The results show a positive impact of relevant entrepreneurial experience and evidence both team advantages as well as disadvantages. Team diversity had a positive impact on performance while the extent of repeated partnerships (or relative team stability) had a negative impact on performance. Moreover, entrepreneurial experience helps to build better diverse teams but has no impact on repeated partnerships. Research limitations/implications – The degree of experience of serial entrepreneurs in the same industry matters, and suggests that more experience is better. The findings challenge a general assumption about serial entrepreneurs: that the building of superior teams creates performance differences. Team diversity drives performance and the study could also show that habitual entrepreneurs are better in building diverse teams (through a positive moderation of team diversity by entrepreneurial experience). However, relying heavily on previous partners is counter-productive. Limitations of this study are due to self-reported data, small sample size and survivor bias. Practical implications – Entrepreneurs need to focus on opportunities and resource needs linked to these opportunities, and use their experience to build stronger teams but to resist the temptation of replicating perceived past success formula by over-relying on previous partners. The latter is also important for stakeholders in the entrepreneurial venture. Originality/value – This paper tests various assumptions and propositions about serial entrepreneurship that are rarely based on sound evidence. The role of entrepreneurial experience to build better diverse teams and the role of repeated partnerships constitute an original contribution to habitual entrepreneurship research.

Tax compliance of small business owners: A review

Bernadette Kamleitner, Christian Korunka, Erich Kirchler — 2012-05-04 00:00:00.0

Abstract

Purpose – Small business owners play an important role in the tax system. This paper seeks to establish a framework to highlight the particular tax situation of small business owners and the resulting implications, from a psychological perspective. Design/methodology/approach – A framework identifying the key characteristics of small business owners' actual and perceived tax situation is established. Literature investigating these characteristics is reviewed in line with the proposed framework. Findings – Three key aspects seem to distinguish small business owners' perceptions of their tax situation: small business owners are likely to perceive more opportunities not to comply than employed taxpayers; they are more likely to experience a lack of meaningful taxation knowledge; and they are more likely to face decision frames that render taxes as painful losses. Research limitations/implications – The suggested link between the subjective experience of the tax situation and compliance calls for a focus on strategies that aim to influence taxpayers' perceptions of their own evasion opportunities, their level of legislative and procedural knowledge, and their sense of ownership of tax money. Such a strategy is suggested to be particularly likely to be effective in the phase of nascent entrepreneurship and in a climate of mutual trust between taxpayers and tax authorities. Originality/value – This paper comprehensively identifies and reviews the perceptual correlates of factors unique to small business owners' tax behaviour.

Applying entrepreneurial orientation to a medium sized firm

Davina Vora, Jay Vora, Douglas Polley — 2012-05-04 00:00:00.0

Abstract

Purpose – The purpose of this study is twofold. First, the authors aim to investigate the applicability of the five (EO) dimensions of autonomy, innovativeness, risk taking, proactiveness, and competitive aggressiveness to a medium-sized firm. Second, the research seeks to explore firm processes leading to the development of entrepreneurial orientation (EO) in a medium-sized domestic US firm. Thus, it endeavours to examine the applicability of EO dimensions as well as the processes by which EO arose in the focal company. Design/methodology/approach – The authors use a multi-method approach entailing analysis of archival data as well as semi-structured interviews of executives to examine the applicability of EO dimensions as well as the processes associated with the development of EO to a medium sized firm competing in a Midwestern US market. Such an in-depth analysis of one firm provides rich data, enabling the exploration of EO using qualitative methods. Findings – While the medium-sized domestic US business had high levels of autonomy and proactiveness, it exhibited moderate levels of innovativeness and risk-taking, and only a low level of competitive aggressiveness. Furthermore, the analysis suggests that organizational artifacts facilitate the development of EO and support organizational culture. Specifically, the organizational artifacts of having an ESOP, a flat hierarchy, inter-unit coordination, and customer communication facilitated EO, and reinforced the organizational culture aspects of empowerment, openness, teamwork, quality services, customer satisfaction, and adaptability. Originality/value – This study is among the first to examine all five EO dimensions as well as to use qualitative methods to do so. It also illustrates how EO applies to medium-sized firms, and identifies processes by which these dimensions develop.

Making Ecopreneurs: Developing Sustainable Entrepreneurship (2nd ed.)

2012-05-04 00:00:00.0

Handbook of Research in Entrepreneurship Education, Volume 3: International Perspectives

2012-05-04 00:00:00.0

Special issue on entrepreneurship and perseverance

2012-05-04 00:00:00.0