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Article
Publication date: 26 March 2024

Kristin Sabel, Andreas Kallmuenzer and Yvonne Von Friedrichs

This paper aims to examine how organisational values affect diversity in terms of different competencies in rural family Small and Medium-sized Enterprises (SMEs). Recruiting a…

Abstract

Purpose

This paper aims to examine how organisational values affect diversity in terms of different competencies in rural family Small and Medium-sized Enterprises (SMEs). Recruiting a diverse workforce in rural family SMEs can be particularly difficult due to the prevalence of internal family values and the lack of available local specialised competencies. A deficiency of diversity in employment and competence acquisition and development can create problems, as it often prevents rural family SMEs from recruiting employees with a wide variety of qualifications and skills.

Design/methodology/approach

The study takes on a multi-case method of Swedish rural family SMEs, applying a qualitative content analysis approach. In total, 20 in-depth structured interviews are conducted with rural family SME owners and 2 industries were investigated and compared – the tourism and the manufacturing industries.

Findings

Rural family SMEs lack long-term employment strategies, and competence diversity does not appear to be a priority for rural family SMEs, as they often have prematurely decided who they will hire rather than what competencies are needed for their long-term business development. It is more important to keep the team of employees tight and the family spirit present than to include competence diversity and mixed qualifications in the employment acquisition and development.

Originality/value

Contrary to prior research, our findings indicate that rural family SMEs apply short-term competence diversity strategies rather than long-term prospects regarding competence acquisition and management, due to their family values and rural setting, which strictly narrows the selection of employees and competencies. Also, a general reluctance towards competence diversity is identified, which originates from the very same family values and rural context.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 25 January 2013

Martina Battisti, David Deakins and Martin Perry

The aim of this paper is to consider empirical evidence on the strategic behaviour of rural SMEs compared to urban SMEs in times of difficult economic conditions. The authors…

1967

Abstract

Purpose

The aim of this paper is to consider empirical evidence on the strategic behaviour of rural SMEs compared to urban SMEs in times of difficult economic conditions. The authors build the paper from a theoretical discussion that suggests that there will be distinctive differences in SMEs’ strategic behaviour across different settlement patterns, utilising resource‐based and opportunity‐based theoretical perspectives. This leads to three research questions which are concerned with three elements when comparing urban and rural SMEs; their characteristics, their performance and their strategic behaviours. The paper argues that the role and strategic behaviour of SMEs in the literature has been neglected.

Design/methodology/approach

For this study, the paper is able to draw upon a data set of 1,411 SMEs from an annual survey of New Zealand's SMEs. This is a national survey of SMEs and the paper has analysed the data to draw out distinctive differences with firms located in different urban or rural locations.

Findings

The paper has shown that SMEs in independent urban areas/small town settlements have distinctive characteristics, performance and strategic behaviour. The important findings are that geographical location matters; that impacts of changing economic conditions cannot be assumed to be homogenous across economies and that SMEs across different settlement patterns will adopt different strategic response and behaviours.

Originality/value

The paper provides an original contribution to knowledge through the following: a primary focus on the comparison of urban and rural SMEs’ strategic behaviour in challenging and turbulent economic conditions, providing for the first time empirical evidence on the sustainability of rural SMEs in recessionary times compared to urban firms across three different locational settlement patterns; urban, independent urban and rural.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 19 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 March 2004

Paul Westhead, Deniz Ucbasaran and Martin Binks

This study explores whether there are differences between established “rural” and “urban” SMEs with regard to the decision to sell goods or services abroad. Several hypotheses…

4180

Abstract

This study explores whether there are differences between established “rural” and “urban” SMEs with regard to the decision to sell goods or services abroad. Several hypotheses were formulated and tested. In 1990/1991, survey responses were gathered from 621 independent businesses located in the UK. In 1997, a follow‐on telephone survey was conducted with 150 surviving firms. Urban exporting SMEs reported superior performance to urban non‐exporting SMEs in 1997. Rural and urban SMEs, however, did not significantly differ from each other with regard to the reasons cited for not exporting, the reasons cited for exporting, and the modes of entry into the largest current foreign market selected by exporters. Nevertheless, some rural SMEs had circumvented local resource constraints and entered foreign markets by engaging in networking. Implications for policy‐makers, practitioners and researchers are highlighted.

Details

Journal of Small Business and Enterprise Development, vol. 11 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 December 2021

Pattanapong Tiwasing and Sukanlaya Sawang

Local Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses…

Abstract

Purpose

Local Chambers of Commerce networks provide small- and medium-sized enterprises (SMEs) with an opportunity to access essential information and networking with other businesses, resulting in improved business performance. However, rural SMEs are less likely to participate in these networks and often possess lower performance. This paper aims to examine the relationship between being members of local Chambers of Commerce networks and rural SMEs’ performance by comparing business performance between rural SMEs who are members and non-members of local Chambers of Commerce networks. This paper also further explores difference in business growth plans between rural SMEs members and non-members.

Design/methodology/approach

The empirical analysis draws on cross-sectional data of 3,769 rural SMEs in England and Wales from the UK's Government Longitudinal Small Business Survey 2015. Propensity score matching (PSM) is applied to control for selection bias and variations in business characteristics before comparing business performance, measured in terms of annual turnover, sale growth and profitability, between rural SMEs that are members and non-members of local Chambers of Commerce networks.

Findings

Our results show that rural SME members of local Chambers of Commerce networks are more likely to grow their sales than non-members. However, they perform as good as non-members in terms of turnover and profitability. The results also emphasise that local Chambers of Commerce networks are crucial for rural SMEs to develop the skills of the workforce and leadership capability of managers, new product/service development and new working practices. Therefore, to enhance rural SMEs' performance, tailoring the services of local Chambers of Commerce to support rural businesses' needs and encouraging rural SMEs to make use of business networks are recommended.

Practical implications

The paper unpacks the relationships between being local Chamber of Commerce membership and business performance, offering lessons for rural SMEs to boost their business performance and growth through participating in local business association networks.

Originality/value

This paper is the first study that explores the comparative analysis of business performance and growth plans between rural SMEs that are members and non-members of the local Chamber of Commerce networks. We provide an empirical evidence-based analysis to existing literature regarding the advantages of being local Chamber of Commerce memberships to enhance business performance in rural areas.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 10 February 2012

Argiris Tzikopoulos, Nikos Manouselis, Kostas Kastrantas and Constantina Costopoulou

Away from central public authorities, regional (also called rural) enterprises do not have direct, physical access to all the services that governmental or public agencies offer…

1399

Abstract

Purpose

Away from central public authorities, regional (also called rural) enterprises do not have direct, physical access to all the services that governmental or public agencies offer. Very often, these services are essential for enterprises, mostly small and medium‐sized enterprises (SMEs), in such areas, in order to perform their business operations. This paper aims to present an example of how such types of information management and use took place in the case of familiarizing rural SMEs with the use of e‐government.

Design/methodology/approach

This paper is a case study of how a practical application is designed and developed for the blended training of rural SMEs. First of all, an identification of the main information resources that will be stored, annotated, shared and accessed through the system took place. Then, an outline of the general architecture and user roles involved was developed. System analysis and specification using Unified Modeling Language (UML) then took place. This was accompanied by design and specification of the database, based on appropriate metadata schemas for describing the information resources. The whole process was completed by the design and prototype development of the interface, which was put into public operation and testing with a sample set of real users.

Findings

Although there are several information management systems focusing on the education and training of rural stakeholders, their learning resources are not directly relevant to SMEs' needs. The main finding of this paper is that it shows a complete case study of designing, developing and evaluating an information technology application for rural businesses.

Originality/value

The value of the approach presented here is the combination of training resources in an information system with a blended training approach, so that it better matches the learning needs of SMEs. Through this web‐based environment, rural SMEs are able to find information on the e‐government services offered in their region, as well as gaining access to e‐learning content on how they can use such services.

Open Access
Article
Publication date: 16 April 2018

Asterio Tenedero Miranda and Juneth Lourdes Fiel Miranda

This study aims to determine the status and conditions of small and medium enterprises (SMEs) as predictors in empowering the rural communities of Samar Island, Philippines…

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Abstract

Purpose

This study aims to determine the status and conditions of small and medium enterprises (SMEs) as predictors in empowering the rural communities of Samar Island, Philippines. Specifically, it aimed to describe SMEs’ organizational variables, and assess their conditions in terms of membership/ownership structure; leadership; policies, systems and procedures; resource mobilization; linkages and networking; communication systems; and awards and recognition; determine the level of empowerment of rural communities with SMEs along the aspects of material, perceptual and relational changes; and find out whether significant relationship exist between the organizational variables and the level of empowerment.

Design/methodology/approach

The study is a descriptive survey that utilized structured survey questionnaires, personal interviews and dialogues with the respondents in the actual data collection. The survey involved 18 SMEs from the rural communities of the 12 municipalities from the 3 provinces of Samar Island, as study samples – 6 coming from each province with 2 SMEs in every sub-sector of trading, manufacturing and services. Out of 270 respondents, 256 (94.81 per cent) responded. All statistics were computed using the SPSS computer software.

Findings

The organizational variables of the SMEs such as membership and ownership structure, leadership, policies, systems and procedures, resource mobilization, linkages and networking, communication systems and awards and recognition were assessed to be all “good” and were found to have significant relationship with the level of empowerment of rural communities with SMEs.

Originality/value

The rural communities with SMEs were empowered along the aspects of material, perceptual and relational changes. The result of the study indicated that through SMEs, rural people experienced changes in their lives. The test about the relationship of the organizational variables such as nature and ownership of business enterprise, leadership, policies, systems and procedures, resource mobilization, linkages and networking, communication systems and awards and recognition and the level of empowerment of rural communities as determined by changes in the material, perceptual and relational aspects of rural life proved to have significant relationships.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 12 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Article
Publication date: 6 July 2012

Ernawati Mustafa Kamal and Roger Flanagan

The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to…

4851

Abstract

Purpose

The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium‐sized enterprises (SMEs) are at the core of the Malaysian construction industry and account for about 90 per cent of companies undertaking construction work. One of the main challenges faced by the Malaysian construction industry is the ability to absorb new knowledge and technology and to implement it in the construction phase. The purpose of this paper is to consider absorptive capacity in Malaysian construction SMEs in rural areas.

Design/methodology/approach

The research was conducted in three stages: first, understanding the Malaysian construction industry; second, a literature review on the issues related to absorptive capacity and discussions with the Construction Industry Development Board (CIDB); and third, multiple case studies in five construction SMEs operating in a rural area to validate the factors influencing absorptive capacity.

Findings

Nine key factors were identified influencing absorptive capacity in Malaysian construction SMEs operating in rural areas. These factors involved: cost and affordability; availability and supply; demand; infrastructure; policies and regulations; labour readiness; workforce attitude and motivation; communication and sources of new knowledge and; culture.

Originality/value

The key factors influencing absorptive capacity presented in this paper are based on validation from the case studies in five construction SMEs in Malaysia. The research focuses on how they operate in rural areas; however, the research results have wider application than just Malaysia. The key factors identified as influencing absorptive capacity can serve as a basis for considering knowledge absorption in the wider context by SMEs in other developing countries.

Details

Journal of Engineering, Design and Technology, vol. 10 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 1 June 2005

Laura Galloway and Robbie Mochrie

There is much evidence that information and communication technologies (ICTs) are drivers of economic growth. As a result, government is keen to promote ICT take‐up, particularly

4465

Abstract

Purpose

There is much evidence that information and communication technologies (ICTs) are drivers of economic growth. As a result, government is keen to promote ICT take‐up, particularly where there is economic development need. The rural economy in most countries is regarded as that which requires intervention in order to foster sustainability and development, and there have been many empirical studies of both the value and the use of ICTs in rural areas. These are, however, highly disparate, often being industry‐, country‐ and, indeed, type‐of‐technology‐specific. Aims to draw together the highly eclectic literature on the use of ICTs in rural small to medium‐sized enterprises (SMEs) in order to provide an overview of generic issues, relevant to policy.

Design/methodology/approach

Comprises a literature review, based on academic, government and agency publications, and provides commentary on emergent issues, particularly those relating to policy recommendations.

Findings

Finds that there is a lag in rural uptake of ICTs and that the reasons for this include both supply and demand failures. From a policy perspective the review notes that intervention is best directed via a multi‐channel approach.

Originality/value

The value of the paper lies in the provision, for the first time, of a coherent review of findings and implications of the many research studies and informed commentaries on ICT up‐take by SMEs, particularly in rural areas, thus providing a more sound basis for understanding the implications for, and informing, those involved in policy intervention and support.

Details

info, vol. 7 no. 3
Type: Research Article
ISSN: 1463-6697

Keywords

Book part
Publication date: 4 August 2014

David Moyes, Mike Danson and Geoff Whittam

It is important that agency advice and support for SMEs in rural areas is congruent with how business-owners perceive their needs and challenges. To explore how well matched these…

Abstract

Purpose

It is important that agency advice and support for SMEs in rural areas is congruent with how business-owners perceive their needs and challenges. To explore how well matched these two sides are, this chapter investigates the difficulties faced by small businesses operating in rural southwest Scotland.

Methodology/approach

In-depth interviews with business influencers (those whose activities affect businesses either through application of policy initiatives, development of policy or the giving of business advice) and owner-managers of rural businesses compare and contrast the perceptions of the challenges of rurality for small businesses.

Findings

Mismatches are revealed between the concerns of rural business-owners and what business influencers understand them to be. Business influencers consider that structural weaknesses and a ‘lifestyle’ business culture in the region inhibit growth, but business owners are strategic in their business aspirations and approaches to growth. However, they are also highly critical of the promotion of the region and concerned about the misunderstanding of potential visitors that the region is remote and difficult to access.

Research limitations

This chapter reports experiences in a particular rural location; such experiences are typical of many rural regions and, thus, the findings should be transferable.

Practical implications

The region’s economic strategy focuses on reducing the significant prosperity gap with the rest of the country. Key to this is the development of indigenous business sectors. However, the policy interventions derived from a misapprehension of the constraints and underpinning culture of indigenous businesses are unlikely to be successful and may be counter-productive.

Originality value

Contrasting the perspectives of those who do business with those who influence business reveals issues of understanding which need to be addressed.

Details

Exploring Rural Enterprise: New Perspectives On Research, Policy & Practice
Type: Book
ISBN: 978-1-78441-109-1

Keywords

Article
Publication date: 23 September 2022

Pattanapong Tiwasing, Yoo Ri Kim and Sukanlaya Sawang

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs

Abstract

Purpose

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs that are members and non-members of social media business networks.

Design/methodology/approach

The analysis empirically draws on cross-sectional data of 9,292 English and Welsh family-owned SMEs from the UK's Government Small Business Survey 2015. Propensity Score Matching (PSM) is applied to control for selection bias and differences in firm characteristics before comparing business performance, measured in terms of annual turnover, sales-growth intention and innovation between family-owned SMEs that are members and non-members of social media business networks.

Findings

The findings show that family-owned SMEs that are members of social media business networks are more likely to have higher prior turnover and to grow their sales than non-members. Also, they are more likely to report being innovative in products and processes than non-members. The empirical results acknowledge the importance of online business networks and digital social capital on enhanced family-owned business performance.

Originality/value

This paper is the first to explore the comparative analysis of business performance between family-owned SMEs that are members and non-members of social media business networks. This paper is important for the development of family business research by providing a comprehensive evidence-based analysis regarding the importance of online business networks to improve family-owned business performance, given the significant contribution of digital business activities to the UK economy.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

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