Knowledge that Transforms

This study focuses on small business managers’ motivation to expand their firms. More specifically, we examine the relationships between expected consequences of growth on the one hand, and overall attitude toward growth on the other. Data were collected in three separate studies over a ten–year period using the same measuring instrument. The results suggest that noneconomic concerns may be more important than expected financial outcomes in determining overall attitude toward growth. In particular, the concern for employee well–being comes out strongly. We interpret this as reflecting a concern that the positive atmosphere of the small organization may be lost in growth. We conclude that this concern may be a cause for recurrent conflict for small business managers when deciding about the future route for their firms.

We study network activities of entrepreneurs through three phases of establishing a firm in four countries. Entrepreneurs access people in their networks to discuss aspects of establishing and running a business. We find that entrepreneurs build networks that systematically vary by the phase of entrepreneurship, analyzing number of their discussion partners, and the time spent networking. Entrepreneurs talk with more people during the planning than other phases. Family members are present in their networks in all phases, particularly among those who took over an existing firm. However, women use their kin to a larger extent than men, and even more than men when they take over an existing firm. Experienced entrepreneurs have the same networking patterns as novices. Moreover, these networking patterns are the same in all countries. However, there are country differences in size of discussion networks and time spent networking.

The appropriate resources are necessary but insufficient to achieve a competitive advantage. Resources must also be managed effectively. Herein, we develop a resource management process model composed of three components that can lead to a competitive advantage. These components include the resource inventory (evaluating, adding, and shedding), resource bundling, and resource leveraging. We examine resource management in family firms and thus explore the unique characteristics of five resources and attributes of family firms that provide potential advantages over nonfamily firms. The resources are human capital, social capital, patient capital, survivability capital, along with the governance structure attribute.

Cost effective data collection is an important methodological issue for small and medium enterprise (SME) researchers. There is a generally held view that mail surveys are the most efficient means of collecting empirical data, despite the potential difficulties associated with low response rates. To enhance the usefulness of mail surveys, researchers have suggested a variety of strategies aimed at improving response rates. While previous studies have examined the effect on response rates of many of these strategies, their impact on data quality and on the cost effectiveness of data collection is less well understood. This study evaluates four response–inducing strategies (printing the survey instrument on colored paper, telephone pre–notification, payment of a monetary incentive, and a follow–up mailing) in terms of their effect on data quality, response rates, and cost effectiveness for a population of SMEs.