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1 – 10 of 413The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…
Abstract
Purpose
The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.
Design/methodology/approach
Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.
Findings
As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.
Research limitations/implications
It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.
Practical implications
The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.
Social implications
Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.
Originality/value
Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.
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Nikola Rosecká, Ondřej Machek, Michele Stasa and Aleš Kubíček
This study aims to explore the effects of long-term orientation (LTO) and strategy formation mode on corporate social responsibility. While many researchers have investigated how…
Abstract
Purpose
This study aims to explore the effects of long-term orientation (LTO) and strategy formation mode on corporate social responsibility. While many researchers have investigated how large businesses address corporate social responsibility (CSR), there is little empirical evidence on how small- and medium-sized businesses implement CSR or what individual drivers shape this process.
Design/methodology/approach
The paper surveyed 282 small and medium-sized managers from the United Kingdom. The respondents were recruited using platform Prolific Academic.
Findings
The findings reveal that LTO is a prerequisite for developing CSR and shapes strategy formation mode. The findings also suggested that deliberate strategies are positively related to CSR. The results are consistent across different components of LTO (futurity, continuity and perseverance) and CSR types (internal and external).
Originality/value
The results show that all aspects of LTO are relevant for CSR in SMEs. Besides LTO, deliberate strategy formation model is an important factor contributing to CSR. The paper presents as first an empirical contribution to the strategy literature by examining positive relationship between LTO and deliberate strategy formation mode.
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Md. Khalid Hossain and Sharif Nafe As-Saber
The paper aims to investigate key aspects of climate change adaptation strategies of Multinational Corporations (MNCs) across two different climate-vulnerable country contexts…
Abstract
Purpose
The paper aims to investigate key aspects of climate change adaptation strategies of Multinational Corporations (MNCs) across two different climate-vulnerable country contexts, developed, i.e. Australia and developing, i.e. Bangladesh, while identifying the key factors affecting the formulation and implementation of such strategies.
Design/methodology/approach
The research uses a qualitative research method using interviews and document analysis while considering distinctive factors manifest in Australia and Bangladesh and focussing on the agricultural seed business sector.
Findings
The research reveals that no specific pattern of adaptation strategies exists across MNCs. They either follow a proactive “deliberate” strategy or a reactive “emergent” strategy. MNCs also follow a distinct strategy, “subliminal”, i.e. unintended or inadvertent strategy, by following the “business as usual” approach.
Practical implications
In recent years, many MNCs have started embracing strategies to reduce their negative environmental footprint but barely adopted any formal strategies to adapt to climate change impacts on their business operations. This study provides insights into the existing climate change adaptation strategies of MNCs, which could be beneficial for companies in better planning and implementing their existing as well as future climate change adaptation strategies.
Originality/value
Based on a developed-developing country comparison and together with a novel focus on the agricultural seed business sector, the paper has used a variety of business strategies in providing insights and understanding of the status of MNC climate change adaptation strategies. The research has identified and coined the term, “subliminal” or unintended strategy as a new addition to the MNC adaptation strategy literature.
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This paper aims to outline the role that serendipity can play in providing a complementary and previously unrepresented vector in deliberate and emergent strategies within…
Abstract
Purpose
This paper aims to outline the role that serendipity can play in providing a complementary and previously unrepresented vector in deliberate and emergent strategies within organizations.
Design/methodology/approach
The paper is conceptual in nature and draws upon the serendipity pattern in sociological theory and serendipitous relations in developmental sciences to provide a framework for executives to consider when examining the process of strategy formation. Two case vignettes are used to illustrate the difference between luck and serendipity and the paper also traces key micro foundations of serendipity by returning to the original serendipity fable and a famed science experiment producing “floppy-eared” rabbits.
Findings
The notion of chance favoring the “prepared firm” is espoused where the prepared organizational mind is positioned as an antecedent of serendipitous strategy formation. This is based on Louis Pasteur’s famous aphorism, “chance favors the prepared mind.” Components of the prepared firm include deep domain knowledge, anticipatory mindset, noticing, abductive reasoning, elaboration and relations development.
Research limitations/implications
The paper is a conceptual articulation of a novel concept that now requires deeper empirical case development and ultimately statistical validation. The paper suggests linkages between serendipity and theories of absorptive capacity and the attention-based view of the firm.
Practical implications
Several mindsets, capabilities and relations for architecting organizational serendipity are suggested for executives using a stylized framework.
Originality/value
From a strategy process perspective, the Mintzberg and Waters seminal article “Of strategies deliberate and emergent” is complemented by considering “floppy-eared” strategy characterized by unexpected, anomalous and strategic datum.
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This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that…
Abstract
Purpose
This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.
Design/methodology/approach
Using data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.
Findings
Our findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.
Practical implications
This research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.
Originality/value
This study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.
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Rodrigo Natal Duarte, Elisa Reis Guimarães, Maurício Ribeiro do Valle and Simone Vasconcelos Ribeiro Galina
This study aimed to understand coopetition in the context of Brazilian specialty coffee grower Small and medium enterprises (SMEs), based on the need to differentiate the beans in…
Abstract
Purpose
This study aimed to understand coopetition in the context of Brazilian specialty coffee grower Small and medium enterprises (SMEs), based on the need to differentiate the beans in and outside the farm level, taking into account the stakeholders’ influence.
Design/methodology/approach
In this study twenty semistructured interviews were carried out with coffee growers and managers of cooperatives, associations and supporting institutions involving two Brazilian coffee geographical indications. Data were analyzed using a mixed grid composed of qualitative, semantic and categorical factors.
Findings
Strategic moves undertaken by coffee growers and stakeholders have shaped the pathway of coopetition among coffee growers, as determinants to frame it as a deliberate or emergent pattern (intentional or unplanned, respectively). Our findings provide evidence that coopetition development among firms is deliberate when influenced by firms’ or stakeholders’ cooperative moves and emergent when influenced by firms’ or stakeholders’ competitive moves.
Originality/value
Although the firm/stakeholder relationship is often approached as a joint wealth creation effort, stakes are not always fairly distributed, so one of the parties may be negatively affected, with consequences for the development of coopetition. Underpinned by a stakeholder-oriented resource-based theoretical lens, this investigation of the development patterns of coopetition linked to the strategic actions undertaken by firms and stakeholders has resonance on competitive advantages.
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This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology…
Abstract
Purpose
This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology (IT) sector are able to scale up and develop sustainable strategies, based on three consecutive years. The average sales of the companies during the last period analysed was around US$1,323,579, with an average annual growth rate of 66.7%. Scaling up SMEs may require several attributes to achieve positive revenue and develop effective high growth rates that allow them to succeed over several years.
Design/methodology/approach
To discern the phenomenon of entrepreneurship, the methodology of multiple case study research was conducted in three parts. The first was to define and design the research process, in which the study should settle the theory analysis and then show that research propositions and questions. The second part of the research was to prepare, collect and analyse the data through crafting instruments and data collection protocols as a source of evidence to conduct the pilot and multiple case study. In this stage, interviews were scheduled, transcribed, analysed and coded to explore how individual attributes may create a scaling-up entrepreneurial process for maintaining or developing high performance in the IT sector. The last part of the research concludes and validates the research propositions for the identification for potential attributes, which were obtained during the qualitative study.
Findings
Attributes were selected when 13 or more SMEs reported the importance of this initiative for the process of scaling up their SMEs. As a result of the data analysis, the empirical findings suggest on the importance of the academic background, budgetary control, negative entrepreneurial experiences, building teams, geographical expansion and first critical experience as key attributes for scaling-up. Additionally, the data propose that constructive entrepreneurial ecosystem and reforms financing markets and programmes are two additional components that could moderate the interaction between the scaling-up process and the achievement of rapid sales results as a key outcome measure.
Research limitations/implications
The first limitation was the lack of consensus on the phenomenon of the scaling up of entrepreneurship. Information in Latin America and emerging countries is scarce, which also represents an opportunity for other researchers to deepen and validate the results reported here. Even though it was an attempt to understand the issue of environmental change, this additional limitation did not allow the evaluation of these adjustments over time that can positively or negatively drive the strategies corresponding to the evolution in each of the moderator variables.
Practical implications
Because of the characteristics of the sample in terms of size of the SMEs, industrial sector, location, culture, socio-economic environment and years of establishment of the company, the study cannot be generalised in terms of other industrial sectors or countries. The results of this research are also limited to SMEs in Chile, and to the extent that it can be applied to emerging countries IT sectors with similar sample characteristics, it must be done so with caution. Yin states that eight cases “are sufficient replications to convince the reader of a general phenomenon”.
Social implications
Policymakers have the option to identify what skills and knowledge the entrepreneur requires to be trained to scale up their established ventures. In this context, they will also benefit from the empirical contribution of knowing what the restrictions that limit this process are, such as adverse tax systems and public strategies. Additionally, it is of public interest because no national records exist on the presence of theoretical terms.
Originality/value
Even though the literature promotes the present findings, it shows that there is an absence of empirical evidence in emerging economies to better comprehend which factors may affect the development process of scaling up entrepreneurship in the IT sector. Both deliberate and emergent strategic initiatives are necessary for the scaling-up process where six critical factors are the basis of the scaling-up. This empirical contribution for entrepreneurs will support the achievement of rapid and sustained sales results for scaling up their ventures.
Details
Keywords
- Scaling up entrepreneurship
- High-growth firm (HGF)
- Academic background
- Budgetary control
- Building teams
- Geographical expansion
- Negative entrepreneurial experience
- First entrepreneurial experience
- Constructive entrepreneurial ecosystem
- Reforms financing markets and programmes
- Rapid sales results
- High-performance business outcomes (HPBO)
- Deliberate and emergent strategies
Jeffrey A. Stone, Kimberly J. Flanders, Pedro Robles and Salih Hakan Can
This study aims to investigate how a sample of US municipalities use social media for strategic communication, focusing on efforts to effectively measure and evaluate that…
Abstract
Purpose
This study aims to investigate how a sample of US municipalities use social media for strategic communication, focusing on efforts to effectively measure and evaluate that communication. Research questions focus on measurement and evaluation practices, as well as the motivations and impacts associated with these practices.
Design/methodology/approach
This research uses a qualitative approach. Interviews were conducted with 12 municipal government personnel responsible for social media communication. The self-selected participants represent 10 states and all US Census regions. Data was content analyzed and categorized according to four research questions, with emergent themes described.
Findings
The results show a diverse set of approaches and motivations, with surface-level measurement and evaluation methods. Initial efforts at more ad hoc use of social media are moving toward more deliberate strategies, but limited resources inhibit progress for some municipalities.
Originality/value
Few studies exist which explore how US municipalities formally measure and evaluate their social media activities as part of their overall strategic communication efforts. This study adds to the existing literature by providing insight into the measurement and evaluation practices that municipalities use to assess their social media communication. The study also provides a basis for larger and deeper investigations of municipal strategic communication practices related to measurement and evaluation.
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There are few concepts in the modern business lexicon where people feel as strongly confident in their understanding of its meaning – while there is simultaneously such profound…
Abstract
Purpose
There are few concepts in the modern business lexicon where people feel as strongly confident in their understanding of its meaning – while there is simultaneously such profound disagreement in how people actually define the term – than the concept of “strategy.” After decades of research and publications trying to correct this situation, the problem remains. It is difficult to advance the field, teach the field, or even effectively put it into practice if you cannot define what “it” is in a clear, concise, and meaningful way. This paper offers updated definitions of key strategic management concepts.
Design/methodology/approach
A large academic and practitioner literature review was added to the author’s personal experience as a Fortune 500 chief strategy officer and university professor to identify five separate concepts at the heart of current colloquial uses of the term “strategy.” These concepts were then clarified and defined with implications summarized.
Findings
The generic term “strategy” is frequently used in place of multiple other very distinct concepts. This problem of concept ambiguity can be greatly reduced by understanding and emphasizing the definitions and usage of five other, already existing, business terms – “Strategic Management,” “Strategic Planning Process,” “Strategic Plan,” “Realized Strategy,” and “Business Model.”
Originality/value
This paper identifies the negative effects of the misuse of the term strategy and offers clear, concise remedies. Resolving the definition problems is a necessary precursor to the advancement, education, and practice of the field.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford