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Article
Publication date: 19 August 2024

Michael Ryan Jenkins

As consumers interact with various small businesses, they develop a mental image, called a prototype, to represent what small businesses are as a generalized, conceptual category…

Abstract

Purpose

As consumers interact with various small businesses, they develop a mental image, called a prototype, to represent what small businesses are as a generalized, conceptual category. However, prior research has said little about what this small business prototype entails. Thus, the aim of this study is to explore consumers’ perceptions of the prototypical small business by identifying common attributes among small businesses that differentiate them from large businesses.

Design/methodology/approach

This study undertakes a thorough review of the relevant consumer research literature for the attributes that consumers use to evaluate small businesses. Then, using a contemporary parallel analysis approach, it conducts an exploratory factor analysis (EFA) on a sample of 266 university students who were asked to evaluate how common those attributes are of small businesses. A second comparative EFA for large businesses is also conducted.

Findings

The EFA reveals two dimensions on which consumers evaluate small businesses: a sincere–authentic dimension and a disruptive–innovative dimension. Specifically, consumers view the prototypical small business to be relatively high on sincere–authentic and moderate on disruptive–innovative dimensions.

Originality/value

Through a comprehensive literature review and exploratory analysis, this study provides a novel understanding of consumers’ conceptualizations of small businesses. In studying the mental image consumers associate with the prototypical small business, this research fills a significant gap in the existing literature and provides important insights for practitioners and researchers alike.

Details

Journal of Research in Marketing and Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 20 August 2024

Xinbo Sun and Magaji Abdullahi Usman

Building on the theory of resource-based view (RBV), this paper is determined to explore the key drivers that drive platform ecosystem adoption by small businesses and mediation…

Abstract

Purpose

Building on the theory of resource-based view (RBV), this paper is determined to explore the key drivers that drive platform ecosystem adoption by small businesses and mediation mechanisms that facilitate the translation of these drivers into improved firm financial and nonfinancial performance.

Design/methodology/approach

In this study, structural equation modeling is used to analyze the data. A survey questionnaire was taken from 430 small businesses operating their businesses on various digital platform ecosystems in China to investigate the links between parameters by testing hypotheses. Digital startups operating their businesses on popular Chinese platform ecosystems, including Alibaba, Taobao, Jingdong, Maituan and HelloChe, were chosen.

Findings

The finding deciphers a nuanced interplay of the adoption drivers, with innovation capability emerging as a mediation mechanism translating these drivers into improved financial and non-financial performance.

Research limitations/implications

The acknowledgment of potential drawbacks, such as the focus on specific drivers of platform ecosystem adoption, highlights the need for future research to explore additional factors that may influence adoption decisions. By examining institutional factors, market conditions or external shocks like the COVID-19 pandemic, researchers can provide a more comprehensive understanding of the complexities surrounding platform ecosystem dynamics and offer insights into adaptive strategies for businesses facing uncertainty.

Practical implications

The outcome benefits policymakers and ecosystem designers by creating and overseeing platform ecosystems that support the highlighted drivers. This study further serves as a roadmap for both platform owners and prospective small enterprises as they map their path toward the digital frontier.

Social implications

The findings from the research indicate that small enterprises that embrace platform ecosystems can experience improved financial and non-financial performance, which in turn promotes economic development and the generation of jobs. By utilizing innovative strategies and maximizing their strategic advantages, these enterprises can not only prosper but also make significant contributions to community development and help alleviate joblessness. This highlights the significance of assisting with the incorporation of digital technology in small businesses to achieve wider societal advantages.

Originality/value

Research originality lies in bridging the gap between strategic inputs and measurable outcomes, stressing the vital function of a firm’s innovation in turning ecosystem-driven opportunities into enhanced performance. This means the pivotal role of this study lies in exploring platform ecosystem adoption drivers based on the theory of RBV and the way innovation capability of platform ecosystems facilitates the translation of these drivers into improved financial and nonfinancial performance.

Details

Business Process Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 16 August 2024

Nipa Ouppara, Wayne Fallon and Gabriela Coronado

This paper aims to explain how the dynamics of inter-firm relations between small and large firms can, in the case of some behaviours, be interpreted as inter-organizational…

Abstract

Purpose

This paper aims to explain how the dynamics of inter-firm relations between small and large firms can, in the case of some behaviours, be interpreted as inter-organizational bullying.

Design/methodology/approach

This paper draws on a qualitative approach adopting the critical incident method to explore the subjective experiences of 13 individual managers and owners of small service businesses in dealing with the representatives/executives of the large corporations they serviced. The method facilitated an investigation of the significant occurrences identified by the small-firm respondents about the undue advantage taken by the large firms. This was found to be more than simple occasional opportunistic or unfair business practices perpetrated by representatives of the large firms but, instead, involved bullying.

Findings

The results revealed that large corporations actively, though covertly, sought to take advantage of their small service providers by resorting to bullying practices. Intimidation, opportunism, use of deceitful or unfair business practices, as well as abuse of power, were manifestations of inter-organizational bullying committed by the large and powerful corporations. The contrasting characteristics of size, access to resources, economic and market power were identified as strong impediments against building effective ethical relational exchanges between the large corporations and their small service providers.

Research limitations/implications

The study's findings provide valuable insights into the root causes and consequences of inter-organizational bullying. However, it is crucial to interpret these results in the context of this specific study. It is worth nothing that these findings primarily represent the self-perception of inter-organizational bullying among small service providers and may not capture other viewpoints or aspects of the industrial sector. Replicating this study in different sectors could enhance the generalizability of the conclusions drawn.

Practical implications

This analysis is valuable in understanding what constitutes the phenomenon referred to as inter-organizational bullying. It also assists to understand the conditions when large firms exhibit such behaviours and their implications on the well-being of relevant stakeholders.

Social implications

Firstly, the business partners should maintain a healthy relationship if they want to avoid incidents of bullying, which can harm the performance of the relationship. In doing so, they need to reduce the level of uncertainty in their business relationships through the transparent information exchange, formulating commonly agreeable contracts and enhancing communication procedures. They also need to put aside their self-interest, but rather strive for achieving results that will be beneficial to both parties.

Originality/value

This exploratory study offers a novel and unexplored way of theorizing inter-organizational bullying, as well as uncovering its antecedents and impacts on the welfare of small businesses, particularly small service providers.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 22 March 2024

Zuzana Bednarik and Maria I. Marshall

As many businesses faced economic disruption due to the Covid-19 pandemic and sought financial relief, existing bank relationships became critical to getting a loan. This study…

Abstract

Purpose

As many businesses faced economic disruption due to the Covid-19 pandemic and sought financial relief, existing bank relationships became critical to getting a loan. This study examines factors associated with the development of personal relationships of rural small businesses with community bank representatives.

Design/methodology/approach

We applied a mixed-method approach. We employed descriptive statistics, principal factor analysis and logistic regression for data analysis. We distributed an online survey to rural small businesses in five states in the United States. Key informant interviews with community bank representatives supplemented the survey results.

Findings

A business owner’s trust in a banker was positively associated with the establishment of a business–bank relationship. However, an analysis of individual trust’s components revealed that the nature of trust is complex, and a failure of one or more components may lead to decreased trustworthiness in a banker. Small businesses that preferred personal communication with a bank were more inclined to relationship banking.

Research limitations/implications

Due to the relatively small sample size and cross-sectional data, our results may not be conclusive but should be viewed as preliminary and as suggestions for future research. Bankers should be aware of the importance of trust for small business owners and of the actions that lead to increased trustworthiness.

Originality/value

The study extends the existing knowledge on the business–bank relationship by focusing mainly on social (instead of economic) factors associated with the establishment of the business–bank relationship in times of crisis and high uncertainty.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 28 August 2024

Vaibhav Tripathi, Prajna Paromita Dey, Ramji Nagariya and Ajai Pratap Singh

Even after establishing their business successfully, many business owners get demotivated, and it leads to unwillingness to grow. This study aims to propose a comprehensive model…

Abstract

Purpose

Even after establishing their business successfully, many business owners get demotivated, and it leads to unwillingness to grow. This study aims to propose a comprehensive model that represents interrelationships among various personal factors affecting “unwillingness to grow.”

Design/methodology/approach

The personal factors for unwillingness to grow were identified by extant literature, and expert interviews were conducted to establish the contextual relationships among these factors. The interrelationships among the filtered variables have been done using interpretive structural modeling (ISM) and MICMAC analysis was done to determine the importance of each factor in influencing “unwillingness to grow.”

Findings

In total, 30 personal attributes were identified from previous literature, out of which 15 were selected for the final study. The result identifies 7 variables having a strong impact on “unwillingness to grow.” These attributes are “absence of strong network,” “lack of vision,” “lack of proactiveness,” “reluctance to involve external consultants,” “absence of/small founding team,” “lack of ambition” and “improper attitude.”

Originality/value

The research attempts to create a bricolage of all the important personal factors affecting “unwillingness to grow.” Previous researches have used few attributes, but with the help of ISM, a graphical modeling technique, it became possible to draw interrelationship between 15 attributes. Further, with the help of MICMAC, the importance of each attribute was determined.

Details

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

Keywords

Article
Publication date: 4 July 2024

Zakaria Boulanouar

This study aims to investigate the reality of relationship banking (RB) in the small and medium enterprise (SME) context, specifically how banks organize activities, define SMEs…

Abstract

Purpose

This study aims to investigate the reality of relationship banking (RB) in the small and medium enterprise (SME) context, specifically how banks organize activities, define SMEs and manage the SME–banking relationship.

Design/methodology/approach

Using qualitative methods, this study uses a case study approach, conducting in-depth interviews with relationship managers from major New Zealand banks. The data are analyzed using thematic analysis with a process- and mechanism-oriented lens.

Findings

The study identifies bank criteria for defining SMEs, considering factors such as business complexity, owner/manager ethnicity and business lending. Banks divide their activities into personal and business banking, with the latter further classified as micro-, small- and medium-sized businesses based on borrowing amounts. Three types of RB emerge, namely, micro-business (online/many-to-many) relationship model (RM), small-business RM (one-to-many) and medium-sized business (one-to-one) RM. This study presents a taxonomy of business banking relationship management models that capture the structure and dynamics of the three RB levels.

Research limitations/implications

Interviews may introduce biases or limited perspectives. Findings specific to New Zealand may not universally apply. Future research could explore different regions and assess the impact of these RB models on SMEs’ financial outcomes and satisfaction with banking services.

Practical implications

Findings assist banks in organizing activities and managing SME relationships. Taxonomy aids in categorizing companies and determining appropriate management models. Consequently, tailored services can be provided based on SME needs, offering customized financial packages.

Social implications

RB models prioritizing ethnicity consideration and personalized services contribute to enhanced financial inclusion for SMEs, thereby fostering broader socioeconomic growth and development, partly through the provision of tailored financial packages. Additionally, relationship managers specializing in specific industries can offer valuable insights and assistance to SMEs, fostering mutual trust and collaboration.

Originality/value

To the best of the author’s knowledge, this is the first study to hypothesize, investigate, identify and provide evidence for three RB levels in SMEs. The presented taxonomy contributes to the literature on the SME–bank relationship by providing a structured framework for effective SME relationship management. Insights can help banks develop strategies and practices for serving SMEs, ultimately contributing to their growth and success.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 19 July 2024

Izabela Koładkiewicz and Marta Wojtyra-Perlejewska

This study investigates whether a firm’s character as a mature micro and small family or non-family business may impact the managing owner’s choice of a potential exit strategy.

Abstract

Purpose

This study investigates whether a firm’s character as a mature micro and small family or non-family business may impact the managing owner’s choice of a potential exit strategy.

Design/methodology/approach

The empirical evidence was provided through a sample of 302 entrepreneurs (170 respond-ents from mature micro and small family businesses and 132 from non-family businesses) who participated in a survey on potential exit strategies.

Findings

The primary finding indicates that there is no significant difference in exit strategy preferences between family and non-family entrepreneurs from mature micro and small-sized firms. It was found that both groups of entrepreneurs mostly opt for internal succession.

Originality/value

This paper presents a novel perspective, demonstrating that while non-family firms are not typically anticipated to adopt the same exit strategies as family firms, they may still opt for internal succession. Furthermore, we provide an insight into potential exit strategy decisions made in smaller firms, which have been less frequently analyzed compared to larger firms in the field of entrepreneurial exit.

Details

Journal of Organizational Change Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 3 April 2024

Tehreem Fatima, Ahmad Raza Bilal, Muhammad Kashif Imran and Ambreen Sarwar

Based on action regulation theory (ART), this study aims to test the impact of individual entrepreneurial orientation (IEO) training on small business owner career success…

Abstract

Purpose

Based on action regulation theory (ART), this study aims to test the impact of individual entrepreneurial orientation (IEO) training on small business owner career success (financial attainment, satisfaction and achievement). Moreover, this relationship was unpacked through a dual mediation model of IEO behaviour and career resilience.

Design/methodology/approach

A four-wave, longitudinal randomized controlled field experiment was conducted in which 527 small business owners participated from Lahore, Pakistan (training group = 256, control group = 271). The data analysis was done via ANCOVAs (group comparison) and PROCESS Model 6 (for serial mediation).

Findings

The results demonstrated that after getting IEO training, the small business owners had increased IEO behaviour, career resilience and career success as compared to their counterparts in the control group. In addition, the effect of IEO training on career success was attributed to the underlying role of IEO behaviour and career resilience development.

Originality/value

This is one of the few studies that have demonstrated the impact of IEO training on the career-related outcomes based on the action regulation perspective.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 12 October 2022

Eijaz Ahmed Khan, Md. Maruf Hossan Chowdhury, Mohammad Alamgir Hossain, A.K.M. Shakil Mahmud, Abdullah M. Baabdullah and Yogesh K. Dwivedi

Society's concerns about environmental degradation have tightened competitive pressure and brought new challenges to small firms. Against this backdrop, this study develops a…

Abstract

Purpose

Society's concerns about environmental degradation have tightened competitive pressure and brought new challenges to small firms. Against this backdrop, this study develops a decision model to determine a suitable configuration for entrepreneurial orientation to help small firms manage circular economy challenges and improve their performance.

Design/methodology/approach

This study used a multi-study and multi-method approach. Study 1, through qualitative in-depth interviews, identified a portfolio of circular economy challenges and entrepreneurial-orientation components. Study 2 applied the quality function deployment technique to determine the most important components of entrepreneurial orientation. Study 3 adopted a fuzzy set qualitative comparative analysis to determine the best configuration for challenges and components.

Findings

The findings reveal a set of challenges and identify the salient need to combine the negation of these challenges with the components of entrepreneurial orientation; this combination will improve the performance of small firms. The research extends the current knowledge of managing circular economy challenges and offers decision-makers insights into improving their resilience.

Originality/value

The use of the dynamic capability view, together with the multi-study and multi-method approach, may lead to an appropriate reconfiguration of entrepreneurial orientation, which, to date, has received limited empirical attention in the small-business-management discipline.

Details

Management Decision, vol. 62 no. 8
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 8 July 2024

Pier Franco Luigi Fraboni, Andrea Sabatini, Maria Rosaria Marcone and Valerio Temperini

Starred restaurants, as significant outlets for small wineries, present a unique business opportunity. In this context, the sommelier, as a third actor, assumes a pivotal role in…

Abstract

Purpose

Starred restaurants, as significant outlets for small wineries, present a unique business opportunity. In this context, the sommelier, as a third actor, assumes a pivotal role in shaping the business relationships between these entities. This study, employing a grounded theory approach, delves into the sommeliers’ roles and activities in the initiation of relationships between small wineries and starred restaurants.

Design/methodology/approach

A qualitative methodology was adopted. Twenty-four semi-structured interviews, direct observations, and informal conversations with starred restaurants, small wineries, and sommeliers were collected and analysed using an abductive approach.

Findings

The findings suggest that the sommelier acts as a contributor to the business relationship initiation between the small winery and the starred restaurant, performing several continuous, simultaneous, and bilateral roles toward both actors.

Originality/value

The study sheds light on the role of wine stewards in the B2B context and provides useful insights to close the theoretical gap between business relationship initiation and the role of third actors.

Details

British Food Journal, vol. 126 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

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