In search of the drivers of high growth in manufacturing SMEs

Though considerable attention in the extant literature has been devoted to growth and performance of firms, there is a dearth of research on high growth firms. Furthermore, the majority of literature in this area focuses on large firms while research on high growth small firms is underdeveloped. This paper investigates the drivers of high growth in manufacturing SMEs. Following a number of focus group interviews with six managing directors of manufacturing firms, a number of drivers of high growth were identified and investigated in a sample of 207 manufacturing SMEs. The results of this study indicate that high growth firms place a greater emphasis on external drivers such as strategic orientation, their operating environment and the use of e-commerce compared with firms having static or declining sales. The analysis shows that high growth firms compete largely on the basis of price. While high growth firms have increased their sales by over 30% during the past three years or longer, it is questionable if manufacturing firms can sustain their competitive advantage without recourse to greater research and development, and innovation in the longer term

A Comparative Evaluation of the Internets Influence on International Market Penetration and Development Strategies of Australian SME's

The Internet has the capability to generate geographical international market expansion and future growth for the firm, a concept known as Internetalisation. However, it is yet to be determined as to how much or to what level the Internet influences internationalisation, and thus international market growth. Both international market penetration and the development of new international customers are achievable goals for the Internet enlightened SME. The aim of this research is to explore the influence of the Internet on international market penetration and development from the strategic perspective of the SME in Australia. It was found that although the Internet has given firms the capabilities to become instantly international, a new theory is not needed but rather an evolved version of network theory may be a better explanation of internationalisation of SME’s in today’s digital environment

International entrepreneurship for SME business growth : a resource and dynamic capability view of the firm : an internet context

This research explores the relationship between international business Internet capabilities and international entrepreneurial characteristics. It has been suggested, that the accumulation of a firms Internet capability can assist international operations, especially when operating in fast changing dynamic environments. However, the international entrepreneurial characteristics which are seen as a precursor to leveraging such capabilities are still vague. Given this finding a conceptual framework is constructed and research issues are then developed in order to focus attention on the relationship between the Internet and a firm’s resource base, dynamic capabilities and international market performance

The Use of Hosted Enterprise Applications by SMEs: A Dual Market and User Perspective

YesThis deliberately dual perspective paper seeks to deepen our understanding of the engagement of SMEs in hosted enterprise applications in the UK. The emergence and development of the ASP sector has attracted much interest and highly optimistic forecasts for revenues. The paper starts by considering ICT adoption by SMEs in general before reviewing the provision of hosted enterprise applications in the US and UK (market perspective). The study is extended by qualitative empirical data collected by semi-structured interviews with SME users of hosted enterprise applications (user perspective) and subsequent analysis in order to develop the key findings and conclusions. From an SME user perspective the key findings to emerge from the study include: i) confirmation that ICT infrastructure was no longer a barrier to adoption, ii) the pragmatic approach taken to security issues, iii) the use of both multiple information systems and multiple service providers, iv) the financial attractiveness of the rental model and v) the intention to continue or extend the use of hosted applications. It also highlights the opportunity for gaining competitive advantage by using hosted enterprise applications to reduce costs. There are very few empirical studies of hosted applications which take deliberately market and SME user perspectives - this paper makes an important contribution in this emerging field

Design Management Capability in Entrepreneurship: A Case Study of Xiaomi

In recent years, entrepreneurship has become a popular topic and attracted many young people to start their own companies. In entrepreneurship, design was generally viewed as essential to innovation, replacing the conventional role of the engineer. Unlike traditional businesses, which generally take a longer time to become established in the more stable economic context of mass-production, current start-ups have to face fierce competition and have the tendency to expand rapidly and accommodate the dynamic business environment. Consequently, design management is considered to be crucial to business growth, since it contributes to both competitive advantages and strategic flexibility. However, start-up companies are well-known for their high failure ratio. This triggered our initial research question: what is the role of design in a start-up to support it in achieving success? Through a case study of Xiaomi, a well-known successful entrepreneurship in China, the new capabilities of entrepreneurial design management were reported. It was further classified into three key topics in line with the three stages of entrepreneurial business development. Difference with design management capabilities reported in previous studies, the new capabilities show the dynamic nature of entrepreneurial design management

Knowledge-based entrepreneurship in Central and Eastern Europe: myth and reality

This paper summarises results of a survey of 304 knowledge based firms in six central and east European (CEE) countries. Knowledge-based entrepreneurs in CEE are not ‘gazelles’ (i.e., fast growing new technology based firms which have the potential to reshape the industrial landscape). They consist of distinct types of companies, of which new technology based firms (NTBFs) are only one. The key factor in KBE firms’ growth is most often firm specific capabilities which do not always involve R&D. Based on factor analysis we develop several taxonomies of KBEs which all point to a specific nature of knowledge based entrepreneurship in CEE. The networks of KBEs are broader and more frequently involve innovation system actors, including professional networks. For different types of KBEs different networks are important

The Use of Hosted Enterprise Applications by SMEs: A User Perspective

This paper seeks to deepen our understanding of the engagement of small to medium-sized enterprises (SMEs) in hosted enterprise applications (high complexity e-business applications) in the UK by investigating the relevance of organisational and technical factors through conducting interviews with SME users of hosted applications. The emergence and development of the application service provider (ASP) sector has attracted much interest and highly optimistic forecasts for revenues. Of particular interest in this paper is the emergence of service offerings targeted specifically at SMEs. The paper starts by considering information technology (IT) adoption by SMEs in general before reviewing the provision of hosted enterprise applications in the US and UK. The empirical data collected from SME users of hosted enterprise applications is then analysed in order to produce the key findings and conclusions. From an SME user perspective the key findings to emerge from the study include: i) confirmation that ICT infrastructure was no longer a barrier to adoption, ii) the pragmatic approach taken to security issues, iii) the use of both multiple information systems (hosted and resident) and service providers, iv) the attractiveness of the rental cost model and v) the intention to continue or extend their use of hosted applications within the enterprise. The early promise of the ASP sector appears not to have been generally realised for SMEs in the UK. This study explores the experience of early adopters of this new IT related innovation and identifies some significant business gains experienced by SME users. It also highlights the opportunity for gaining competitive advantage by using hosted enterprise applications to reduce costs. There are very few empirical studies of hosted applications which take a deliberately SME user perspective and this paper make an important contribution in this emerging field

ACE research briefing paper 006 : Anatomy of new business activity in Australia: Some early observations from the CAUSEE Project

The Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE) is the largest study of new firm formations ever undertaken in Australia . In a nutshell, CAUSEE aims to uncover the factors that initiate, hinder and facilitate the process of emergence and development of new, independent firms. Through contacts with a random sample of 30,000 Australian households the project has identified and interviewed close to 600 founders of on-going business start-ups – Nascent Firms; i.e., efforts that are under way but have not yet become operating businesses – as well as more than 500 owner-managers of Young Firms – that is, firms that started trading in 2004 or later. Founders of these firms have been taken through a comprehensive telephone interview about the state and development of their start-ups. The project will follow the development of these nascent and young firms over a four year period. This report represents a first release of selected, descriptive findings from the first wave of data analysis. Although some reported findings may have important implications it should be realised that what is presented here represents just a glimpse of the rich academic and practice-orientated output that is expected from the project