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The purpose of this paper is to investigate the use of power in cases of upwards bullying by examining the bases of power that staff members use, and how these bases create power imbalances.

Qualitative, semi-structured interviews were conducted with six managers from several organisations. After completion of each interview, verbatim transcripts were created and examined using NVivo, allowing in-depth thematic analysis. The broad coding schema, developed through a review of the literature, was refined as analysis progressed.

Three major themes emerged: a loss of legitimate power, coercive power, and structural power. The findings suggest a “power cycle” exists in upwards bullying episodes, which is presented diagrammatically. Discussion focusses on the processes that commence with a decrease or loss of a manager’s legitimate power, associated with a lack of organisational support, and staff members’ perceptions of illegitimacy. Managers indicated vulnerability to inappropriate behaviours by staff members, and the potential for greater power imbalances to build due to these behaviours triggering a feedback mechanism, with managers experiencing a further loss of legitimate power.

The study recommends that research into the perspectives of staff members (such as alleged perpetrators) can further strengthen our understanding of the use of power in workplace bullying, and in upwards bullying in particular. Given the applicability of the outcomes of this research to our understanding of workplace bullying, such theory development can also foster practical approaches to addressing workplace bullying within organisations. Understanding the nature of power within workplace bullying processes can inform organisational strategies to disrupt the cycle of inappropriate behaviours, upwards and otherwise.

Small to medium‐sized enterprises (SMEs) continue to make a major contribution to the Australian economy. However, research into organisational processes within SMEs has been limited to date. This study aims to examine the links between communication processes and organisational effectiveness in SMEs.

This quantitative study uses social capital theory as a framework to investigate whether employees' level of satisfaction with organisational communication processes affects organisational outcomes within three high growth manufacturing SMEs in one area of Australia.

Results indicate that organisational communication processes does affect employees' levels of ambiguity regarding customers, job satisfaction and commitment to their firms.

While generalisability is limited because of the small number of SMEs participating in the study, the research indicates great potential for developing theoretical and practical insights into Australian SMEs that would assist industry and employees overall.

Implications for the growth strategies of SMEs, particularly in relation to the current skilled labour shortage, are discussed.

The paper contributes much needed theoretical development and research into SMEs.