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Article
Publication date: 11 June 2024

Diego Antônio Bittencourt Marconatto, Emidio Gressler Teixeira, Gaspar Antônio Peixoto, Kadigia Faccin and Luis Felipe Dias Lopes

Little is known about the role causation plays in establishing the necessary conditions for micro and small enterprises (MSEs) to face the first stages of a major crisis. Our…

Abstract

Purpose

Little is known about the role causation plays in establishing the necessary conditions for micro and small enterprises (MSEs) to face the first stages of a major crisis. Our study aims to investigate how causation affects their ability to be successful at the onset of widespread calamities.

Design/methodology/approach

We examined how 191 Brazilian MSEs utilized causation in managing different aspects of their operating cycle before the COVID-19 pandemic using a combinatory methodology.

Findings

Causation is more important than usually supposed for MSEs when facing widespread crises.

Research limitations/implications

Our study did not explore the specific interactions between the intensified use of causation practices and other factors within MSEs that may lead to superior outcomes. The limitations of our data prevented a fully assessment of sales fluctuations of firms and how they responded to the latter stages of the COVID-19 crisis.

Practical implications

Our findings underscore the significance of causation in helping MSEs navigate future crises, emphasizing the enduring value of time-tested management practices. MSE owners and managers should ensure the presence of causation-oriented practices, as these forms the foundation for well-established management principles. This strong foundation equips MSEs to effectively employ effectuation strategies when it is needed.

Social implications

Small enterprises are the backbone of every economy and play a vital role in economic recovery. Our findings offer valuable insights that can help these enterprises effectively navigate major crises and contribute to economic recovery.

Originality/value

This study is among the first to answer to the call for more research that isolates and investigates granular elements of causation. Additionally, our study is original in that we address the need to consider the temporal dimension of causality.

Details

Management Decision, vol. 62 no. 12
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 18 March 2021

Emidio Gressler Teixeira, Gilnei Luiz de Moura, Luis Felipe Dias Lopes, Diego Antônio Bittencourt Marconatto and Adalberto Américo Fischmann

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

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Abstract

Purpose

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

Design/methodology/approach

This paper used a theoretical DSIC model to process data on 137 Brazilian startups, using a stepwise regression.

Findings

Service startup growth is related to the capability of enterprises to understand market signals, learn from customers and design a scalable, repetitive and profitable business model.

Research limitations/implications

Despite the innovative nature of startups, this paper found that technological and networking capacities are not a determinant of growth.

Practical implications

Managers should commit themselves to improve their competence in terms of understanding market signals, even when they already have a consolidated business model, products and service offerings. The findings also function as a warning about the dangers of an excessive focus on technological capabilities.

Social implications

Innovative startups, which achieve high growth create a disproportionate number of new jobs. Hence, by indicating the dynamic capabilities that are more conducive to firm growth, this paper contributes to society and the economy at large.

Originality/value

The findings challenge the myth of technological capacity and networking skills as the main sources of startup growth. This paper shows that founders and managers of service startups who want to achieve rapid growth should concentrate more effort on other skills. Marketing competence and building scalable business models – abilities that are common to successful traditional firms – are more relevant for short-term growth than technological innovation.

Details

RAUSP Management Journal, vol. 56 no. 1
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 12 July 2021

Diego Antonio Bittencourt Marconatto, Emidio Gressler Teixeira, Gaspar Antônio Peixoto and Kadigia Faccin

The purpose of this paper is to identify the configurations of working capital and customer and supplier diversification employed by successful small and medium-sized enterprises…

1043

Abstract

Purpose

The purpose of this paper is to identify the configurations of working capital and customer and supplier diversification employed by successful small and medium-sized enterprises (SMEs) before and during the COVID-19 pandemic.

Design/methodology/approach

This study employed a combinatory methodology to analyze how 124 Brazilian SMEs configured – before and during the pandemic – the size of their working capital and their levels of dependency on clients and suppliers.

Findings

High levels of working capital and supplier diversification were found to be key to SMEs' ability to thrive before and during the pandemic. However, while SMEs that were growing prior to the pandemic depended on a few major customers, firms flourishing during this time have divided their sales among many clients.

Research limitations/implications

This study focuses on what configurations SMEs have adopted during the crisis. Qualitative studies are needed to identify how SMEs reconfigure themselves in the face of a major crisis.

Practical implications

The results of this study indicate that SMEs hit by the pandemic should avoid retrenchment strategies. They might have better chances of success if they embrace their vulnerability and take risks to foster growth.

Social implications

The results of the study can help SMEs respond to the economic crisis caused by COVID-19, which has already caused the failure of millions of businesses worldwide.

Originality/value

This is the first empirical investigation of SMEs that are weathering the pandemic, and in this study, the authors have analyzed the three aspects of their operations, which have been struck the hardest by the crisis.

Details

Management Decision, vol. 60 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 November 2021

Diego Antônio Bittencourt Marconatto, Emidio Gressler Teixeira, Fernando de Oliveira Santini and Wagner Junior Ladeira

The paper aims to provide robust evidence about the relationships between key individual characteristics of owners and managers (OMs) and small and medium enterprises (SMEs)'…

Abstract

Purpose

The paper aims to provide robust evidence about the relationships between key individual characteristics of owners and managers (OMs) and small and medium enterprises (SMEs)' growth and the moderating influence of the country context on these relationships.

Design/methodology/approach

The authors meta-analyzed 62 studies presenting a cumulative sample of 175 effect-sizes and 174,590 SMEs.

Findings

The authors found that SMEs led by more experienced men with higher levels of education are more likely to grow. While the relationship between OMs' experience and SMEs' growth is significant for differing country contexts, national characteristics affect the magnitude of the influence that OMs' education and gender specifically exert on SME expansion. The authors also found that the positive impact of OMs' human capital on SMEs' growth increases when these firms are focused on technology.

Research limitations/implications

The study yielded small-effect sizes for the impact of OMs' human capital and gender on SMEs' growth. Researchers can assess the influence of these characteristics on SMEs' growth along with other individual dimensions.

Originality/value

The current study is the first meta-analytical investigation about the influence of OMs' gender on SMEs' growth. The study focuses solely on SME OMs, as SMEs are not simply larger businesses on a smaller scale. The authors employ a wide set of country-level moderators in the research going beyond most empirical examinations of the topic that have given only marginal attention to moderators.

Details

Journal of Small Business and Enterprise Development, vol. 29 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 11 March 2022

Angélica Pigola, Priscila Rezende da Costa, Naiche van der Poel and Franklin Thiago Ribeiro Yamaçake

The purpose of this study is to analyze the systematic relationships among dynamic capabilities in startups’ survival.

Abstract

Purpose

The purpose of this study is to analyze the systematic relationships among dynamic capabilities in startups’ survival.

Design/methodology/approach

This study is based on a systematic literature review on dynamic capabilities related to startups’ survival, following the content analysis approach.

Findings

This study presents four different perspectives of analysis about dynamic capabilities from resources exchange and business factors that meet needs of startups' survival. It also points out new area for future research in this field. In doing so, this study differentiates itself by its approach not limiting dynamic capabilities research and enriching entrepreneurs' capability theory.

Practical implications

By indicating an evolution of dynamic capabilities theory among tangible and intangible resources exchange in a more favorable adaptation to startups growth, this study boosters and contributes to the society, economy in general and to the science of business management in various perspectives such as overcoming cognitive barriers, entrepreneur’s commitment, innovation capabilities and knowledge capacity of startups.

Originality/value

This study amplifies dynamic capabilities vision in startups’ survival as one of the main sources for growth in this type of organizations. It also develops a deeper understanding about new avenues for dynamic capabilities theory among tangible and intangible resources exchange.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 5
Type: Research Article
ISSN: 2053-4604

Keywords

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