Linking Innovative Potential to SME Performance: An Assessment of Enterprises in Industrial South Wales

The attraction of inward investment from the UK and from overseas was the main focus of regional development policy in Wales for much of the 1970s and 1980s. Whilst Wales has been particularly successful in attracting foreign enterprise, the contribution of new investors to improving longer term regional economic prospects has been questioned at several levels. With concerns over inward investor stability, embeddedness, and contribution to local value added, increasing weight has been given to the encouragement, and development of innovative indigenous SMEs in the Welsh economy. General and sectoral initiatives to encourage SME development and innovation in Wales have also taken place against a background of historically low levels of new firm formation in the region, together with the presence of factors expected to hinder SME growth including low levels of capital availability. Ultimately, it is hoped that a strongly performing indigenously controlled and innovative SME sector will go some way to improving regional growth prospects, and hence play a role in reducing the GDP per capita gap between Wales and the UK. During the 1990s a series of research and consultancy studies in Wales have been undertaken seeking to audit SME activities, define needs and identify market failures in provision of information and services. These have formed the basis of revised policy and then for new resource directions emanating at the European, regional and local levels. Encouraging innovative activity has been at the forefront of the network of initiatives currently underway in Wales. New initiatives have often been instituted without a clear appreciation of the nature of innovation, and how innovative activities link to innovative outputs and then feed through to improved business performance. This paper examines the link between innovative activity, outcomes and the performance of SMEs in Wales. A range of European, UK and locally developed initiatives in Wales seek to encourage innovative activity in indigenous SMEs. However, it is the contention of this paper that these initiatives have often been instituted without a clear appreciation of how, if, and which innovative activities feed through to improved business performance. The paper offers a general method of assessing the innovative potential (the configuration of management practices, capabilities, internal and external linkages facilitating the generation of appropriation of ideas) of manufacturing SMEs. This then leads on to an examination of how far innovative potential is connected to operational and general business performance. The paper describes how the model was developed and used to assess the innovative potential of a sample of manufacturing SMEs in Industrial South Wales, and how far the innovative potential can be linked to improved operational and business performance. The introduction to the paper reviews current literature on innovation in SMEs, and demonstrates how far recent studies have succeeded in measuring, and then linking innovative inputs of SMEs to innovative outputs and firm performance. The second section builds upon the review to develop a working model of an innovative SME. Innovation is considered not only in terms of new product or process development but more generally as practice. The model reveals the innovative firm as one that identifies, interprets, and applies knowledge effectively, and as appropriate throughout the organisation. The model described represents a synthesis of previous research. Key factors in the model include strategy and the techniques and practices deployed to facilitate the development and appropriation of ideas for innovation. Broadly this focuses on SME commitment to innovation, and management practices supporting this commitment. The third section describes how the model was operationalised into an auditing tool, and then used to assess the innovative potential of a sample of manufacturing SMEs in Industrial South Wales. The fourth section summarises the results from the initial research programme, and in particular, considers whether the unique operating structures usually associated with SMEs hinder or facilitate the adoption of new structures for organisational learning. Moreover the section examines whether the existence of certain configurations of practices coincide with improved business performance and operational efficiencies. The conclusions consider these results in the context of the directions being adopted by current regional SME policy initiatives in Industrial South Wales.

Exploring organizational deception: Agency, context and social relations

This review paper extends our understanding of organizational deception. We focus specifically on the telling of lies – defined as a false statement with the intent to deceive – as the most common form of deception. We draw new insights from the limited number of existing studies of organizational deception in order to develop a taxonomy of lies and provide an integrative framing for the analysis of lying in organizational contexts. We engage relational sociology to develop this theoretical framing around three key dimensions: organizational context, social relations and actors’ behaviours. From a detailed examination of eleven prior studies, we interrelate these dimensions to identify distinct patterns of lying that are triggered or enabled by social relations or organizational contexts, or both. Based on this theoretical synthesis of prior work, we then demonstrate the utility of the framework in fostering comparative analysis by examining four recent studies of strategic deception in depth. We conclude the paper by discussing the implications of our framework and suggesting an agenda for further research

Racing for radical innovation:how motorsport companies harness network diversity for discontinuous innovation

The motorsport industry is a significant part of the UK economy. According to industry estimates approximately 4,500 companies are involved in the UK Motorsport and Performance Engineering Industry and its wide-ranging support activities. The industry has an annual turnover of £6.0 billion, and contributes £3.6 billion worth of exports. The Motorsport Industry Association estimates that the support side of the sector alone "involving events management, public relations, marketing, sponsorship and a host of other support functions" accounts for approximately £1.7 billion of the yearly industry total. And in terms of employment, UK Motorsport supports 38,500 full and part-time jobs, including 25,000 engineers

Politics of place: the meaningfulness of resisting places

The meaningfulness of the physical place within which resistance is nurtured and enacted has not been carefully considered in research on space and organizations. In this article, we offer two stories of middle managers developing resistance to managerial policies and decisions. We show that the appropriation and reconstruction of specific places by middle managers helps them to build autonomous resisting work thanks to the meanings that resisters attribute to the place in which they undertake resistance. We contribute to the literature on space and organizations by showing that resistance is a social experience through which individuals shape physical places and exploit the geographical blurring of organizations to develop political efforts that can be consequential. We also suggest the central role played by middle managers in the subversion of these meaningful places of resistanc

Sustaining a Collegiate Environment: Colleagueship, Community and Choice at an Anonymous Business School

The increasing push towards centralisation and bureaucratisation in higher education, further exacerbated by the disruption caused by the COVID-19 pandemic, calls for a better understanding of the nature of collegiality in contemporary universities. We address this issue by looking into the necessary conditions and barriers to sustaining a collegiate environment. The empirical focus is on academics, academic leaders and professional support staff at Anonymous Business School (ABS), a department in a large civic UK university. We interviewed 32 participants across the school, ranging from early-career academics to experienced professors and members of department leadership teams. The findings suggest multiple emerging perspectives on collegiality, with features of horizontal collegiality perceived as key to successful academic responses to the crisis. The findings also indicate how sustaining a collegiate environment within the department requires both choice and effort from leadership and from staff, particularly when decision-making is primarily located at the centre of the university. The choice and effort made across different collegiate pockets contribute to the department becoming an ‘island of collegiality’ within the increasingly centralised and bureaucratised university hierarchy. In this sense, the actions of the department leadership to establish supporting mechanisms, and the actions of the staff to, in turn, embrace and build interpersonal relationships and professional identities, are key to sustaining a collegiate environment

EXPRESS: The Management of Second-Generation Migrant Workers in China: A Case Study of Centrifugal Paternalism

How have organisations sought to manage tensions between the needs for flexible labour in neoliberal market economies and the benefits of a committed and motivated workforce? Through an in-depth, qualitative study of a Chinese company, we identify and theorise a novel variation of paternalism that was developed by the organisation to manage the tensions under neoliberal capitalism. We label this management regime ‘centrifugal paternalism’ since it organises employment relations along the lines of ‘adult-like’ employers and ‘child-like’ employees but involves the diminution of employee dependency over time with an ultimate impulse away from the employing organisation. We find that the emergence of centrifugal paternalism is closely related both to the socio-demographic identity of the company’s employees as China’s second-generation migrant workers and to the economic context of the organisation. Through a ‘tough love’ approach, this regime allows the firm to secure flexible labour while responding to migrant workers’ needs for personal skills development and a fruitful rural-to-urban transition. Our research responds to recent calls for reconnecting organisation studies with society and situating workplace practices within their contexts. It also underlines the enduring importance of paternalism for understanding the dynamic and evolving nature of capitalist employment relations and management regimes. </jats:p

Dominance and societal effects in HR practice transfer: the role of meso-level actors in diffusing and adapting the Japanese model in Indonesia

This article investigates how meso-level actors (MeLAs) contribute to HR practice transfer in diffusion and adaptation processes, drawing on the System-Society-Dominance-Corporate Effects (SSDC) framework to interpret the role of MeLAs in the transfer of the Japanese management model to the Indonesian automotive industry. We focus on two issues: i) the way Japanese MeLAs’ training regimes in Japan affect the diffusion of the model and ii) the coordinated Japanese and Indonesian MeLAs strategy in seeking procedural influence through knowledge-sharing and in facilitating transfer activities over how the Japanese model is adapted in Indonesia. Our research adds to our limited understanding of the significance of MeLAs in processes of diffusion-adaptation in emerging market economies characterized by weak regulatory regimes and asymmetric socioeconomic power relations. Drawing on interviews with 75 key informants across Japan and Indonesia, we explore the significance of MeLAs from corporate and labor spheres alongside those of non-corporate MeLAs. Theoretically, this study extends the SSDC framework by highlighting MeLAs’ influence in both diffusing conceptions of dominant management ‘best practice’ (dominance effects) and their role – and that of dominance effects – in shaping societal effects that inform how the model is adapted. We theorize the complex processes through which the effects identified in the SSDC framework are experienced by local actors, showing that they are neither monolithic nor mechanical in nature and thereby elaborating the inter-relationship in how dominance effects inform societal effects

When organization studies turns to societal problems: The contribution of Marxist grand theory

© The Author(s) 2015 Marxist theory, we argue, can be a valuable resource as organization studies turns to the urgent societal problems of our times. In order to address these problems, organizational studies needs greater historical depth and interdisciplinarity. We argue that these imperatives necessitate a return to grand theory. Grand theories provide the frameworks needed for integrating in a systematic as opposed to an ad hoc manner both scholarship across disciplines and middle-range theories within disciplines. We show that marxism offers a particularly fruitful grand theory for organization studies and for the social sciences more broadly, because it affords a platform for integrating various social sciences and because it offers penetrating insight into both the longue durée of history and the political-economic dynamics of capitalism. In making our case, we present and defend the core ideas of marxism, including its theory of modes of production, its distinctive theory of “soft” technological and economic determinism, its labor theory of value, and its account of the key developmental tendencies of capitalism—concentration and centralization of capital, socialization, and recurrent crises. We illustrate the power of these ideas by showing how they can be used to enrich organizational research on the 2007-8 financial crisis. And we introduce the four articles in this Special Themed Section, which show the capacity of marxist concepts to reframe and enrich research on traditional and emerging topics in organization studies, including organizational learning and communities of practice, knowledge work, teamwork and collaboration, social media and digital capitalism, and organizational routines and path dependence