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Despite a large and growing literature on the subject, little is understood about the phenomenon of small business growth. Specifically, the small business growth literature has often emphasized “why” opposed to “how” firms grow. This chapter sheds light on this black box of growth by investigating the phases of planning and implementation processes separately to explore the choice of strategic expansion modes. It examines a much under-researched firm category: declining small firms. Employing a three-year longitudinal study using a multi-case study method, we find that while growth approaches are typically contextually (industry) derived, formalized planning greatly affects implementation. Further, resources are the key mediating variable between formal planning and implementation – firms with slack resources will typically implement their contextually influenced planned growth course, and firms with inadequate resources will typically implement through interactive learning, which causes them to downscale the growth plans or exit the market (merger or sale).

The study here examines how business actors adapt to changes in networks by analyzing their perceptions or their network pictures. The study is exploratory or iterative in the sense that revisions occur to the research question, method, theory, and context as an integral part of the research process.

Changes within networks receive less research attention, although considerable research exists on explaining business network structures in different research traditions. This study analyzes changes in networks in terms of the industrial network approach. This approach sees networks as connected relationships between actors, where interdependent companies interact based on their sensemaking of their relevant network environment. The study develops a concept of network change as well as an operationalization for comparing perceptions of change, where the study introduces a template model of dottograms to systematically analyze differences in perceptions. The study then applies the model to analyze findings from a case study of Norwegian/Japanese seafood distribution, and the chapter provides a rich description of a complex system facing considerable pressure to change. In-depth personal interviews and cognitive mapping techniques are the main research tools applied, in addition to tracer studies and personal observation.

The dottogram method represents a valuable contribution to case study research as it enables systematic within-case and across-case analyses. A further theoretical contribution of the study is the suggestion that network change is about actors seeking to change their network position to gain access to resources. Thereby, the study also implies a close relationship between the concepts network position and the network change that has not been discussed within the network approach in great detail.

Another major contribution of the study is the analysis of the role that network pictures play in actors' efforts to change their network position. The study develops seven propositions in an attempt to describe the role of network pictures in network change. So far, the relevant literature discusses network pictures mainly as a theoretical concept. Finally, the chapter concludes with important implications for management practice.

Extending the work of Bayou (2001), we empirically investigate the relationship between firm size and resource productivity to assess whether the productivity of resources (value in use) and their underlying value at sale (value in sale) vary with firm’s size.

We use seemingly unrelated regression of revenues and equity values on assets and employees for a large sample over a wide time period and across all industries. We compare companies that are growing, declining, or continuing in size relative to their industry.

With some variability on growth, we find that smaller companies hold more productive resources based on their capacity to generate more revenues per unit of resources (assets) relative to large companies. Further, as predicted, a firm’s workforce has productive value in use, but limited value after a firm’s sale as measured by equity values.

Collectively, our findings suggest that firm size matters in influencing resource productivity, and a workforce has productive value in use, but low value in sale.

This study explores policy and practice in relation to a peripheral rural region food support programme for small (micro) food enterprises and the impact on business development and innovation.

An exploratory case study methodology is employed focusing on the effectiveness of a local support programme for micro business development in the food sector, in a European Union peripheral, rural location.

The effective integration of policy and practice in the design and implementation of a public/private partnership programme can enable micro businesses to benefit from Government aid in a collective manner that would not have been possible in a Government–micro enterprise dyadic relationship.

The study focuses on one region and on one particular support programme. However, the research highlights the potential benefits that can accrue to micro food producers, and micro companies more generally from participation in such a programme, and identifies the types of support that are particularly effective for these types of organisations. The research identifies the possibilities and challenges of applying the South Eastern Economic Development type programme to other regions.

The success of such support programmes depends on identifying the needs of the participants at an early stage in the programme and in tailoring training and support accordingly. There are benefits from local government working closely with private consultants as brokers for micro enterprise business development and innovation.

Micro enterprises play key economic, social and cultural roles within their local rural community. Collectively they offer opportunities for rural employment and tourism development.

The chapter addresses a major gap in knowledge around the role of policies and supports in assisting business development and innovation in relation to micro size enterprises, and more specifically food micro enterprises based in peripheral, rural regions.

The fourth industrial revolution and its disruptive technological advances are leading to continuous significant changes in the labour markets, which affect employees and employers of all sizes.

Currently, organisations are experiencing considerable skill shortages and talent mismatches: the skills that organisations are looking for do not align with those available in the labour market. This means that matching available candidates on the market with job vacancies is unlikely. In addition, the increasing wage pressure in occupations linked with the most in-demand skills and in high-skills industries has become a reality.

The immaterial assets of a business, such as the competences and skills of its workforce and leaders, are the most significant elements in providing a competitive advantage is a fact no one in the present era would argue against.

While big corporations dispose more resources and capabilities to deal with these challenges, small businesses – considered the foundation of many healthy communities – have limited assets to face such global and complex dynamics.

This chapter acknowledges the significance of small businesses in the global landscape and their key role as ‘job generators’ in enabling an inclusive economic growth in developed as well as in emerging countries. And in this context gives focus to the crucial issue how of small businesses can overcome the skill and the talent gap, and which strategic shifts they can put in place in order to withstand these environmental constraints.

To this end, this chapter provides a broad investigation of international reports discussing the role played by external factors – such as governments and their policy frameworks – and the concept of knowledge sharing.

Moreover, it examines the influence of internal factors. Specifically explored is the key role of the human resources function in attracting skilled graduates, upskilling its workforce, establishing a total reward and talent development strategy and engaging in job design.

This chapter is of particular relevance to owner managers, general and HR managers of small businesses, but also public officials and private institutions. It identifies and offers practical solutions for small businesses that aim to transform themselves to successfully cope with skills shortages and the war for talent in the age of digitalisation.

Russia's size – both in terms of population and geography, spanning 11 time zones, 89 oblasts (states or regions) and autonomous republics and its privatization program, encompassing some 100,000 small-scale enterprises, 25,000 medium to large firms, and 300 or so of its largest firms, made its privatization program the largest sale/transfer of assets conducted among the transition economies, with the possible exception of China. Comparisons by many of the program's critics, and there are many, to Poland, Hungary, or the Czech republic are invidious, especially the latter two countries whose populations are similar to just that of greater Moscow.

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

We document the relationship between size, the presence of a full-time accountant, strategy, and the adoption of management control systems (MCSs) in small- and medium-sized Canadian manufacturing enterprises (SMEs).

Using survey results from 247 Canadian SMEs, we use partial least squares to holistically test our model and also present data for each MCS.

We find that the presence of a professional accountant is strongly associated with the adoption of MCSs and is a significant explanatory variable more often than either size or strategy.

While the impact of organization and strategy has been extensively studied within large organizations, we investigate these relationships within SMEs. Additionally, we investigate the impact of having a full-time accountant, a constraint unique to SMEs due to their limited resources.

Limitations include the fact that we likely have a significant survivor bias as the average age of our sample firms was 30 years. Our analysis of nonresponse bias does not allow us to conclude that such a bias did not exist. Also, it is possible that some respondents believed they had a certain MCS when others might think they did not.

This study will be of interest to owners/managers of manufacturing SMEs, their advisors, and economic development agencies. Our study also has implications for accounting education as most students will work for SMEs.

Few studies have documented the MCSs adopted by North American SMEs, and none have considered the impact of the presence of a full-time accountant.