Sense‐making and recipes: examples from selected small firms

Abstract

Purpose

The purpose of this paper is to examine the processes of knowing and sense‐making in small client‐based firms.

Design/methodology/approach

The paper adopts a qualitative approach to the case studies of two small firms in the public relations sector located in the North West of England. The paper also assumes that the firms are “activity systems” and thus draws on the “activity theory” as a framework for conducting the empirical study.

Findings

The data and analysis highlight the firms' ability to survive, grow and innovate, drawing on knowing and sense‐making recipes shaped mainly by the extent and nature of the managers' networks and “significant others” including policy makers, customers, suppliers and competitors.

Research limitations/implications

The paper is based on two case studies. Although in‐depth analysis is achieved through narratives of rich data, it cannot be generalised across firms. Increasing the number of cases will certainly add validity for pattern recognition and this is the future direction of research.

Practical implications

Managerial knowledge and experience gained from past events and incidents are important inputs of decision making. The paper argues that managers naturally draw on their “intuition” in their enactment of events. Such intuitions and judgments are complemented by intended courses of action. It is reflection on such incidences that realises the experiences. Reflective and reflexive attempts provide valuable learning moments for managers and organisations.

Originality/value

The paper notes that there is a limited account and understanding of the processes of knowing and sense‐making in SMEs. It therefore offers a framework for illustrating the dynamic interactions between managers' enacting, knowing and the development of sense‐making recipes. It is an attempt to contribute to the understanding of “knowing” in SMEs.

Citation

Sharifi, S. and Zhang, M. (2009), "Sense‐making and recipes: examples from selected small firms", International Journal of Entrepreneurial Behavior & Research, Vol. 15 No. 6, pp. 555-570. https://doi.org/10.1108/13552550910995434