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1 – 10 of 15Influential reports combined with media attention on directors’ remuneration has sparked academic and practitioner interest in the whole area of corporate governance. Cadbury’s…
Abstract
Influential reports combined with media attention on directors’ remuneration has sparked academic and practitioner interest in the whole area of corporate governance. Cadbury’s suggestion to strengthen the independent governance role has led to particular interest in non‐executive directors (NEDs). More recently, the role of NEDs in the governance of small and medium‐size enterprises (SMEs) has started to generate attention, and a number of registers of NEDs are established. Indeed, the role of NEDs in SMEs received special attention in the recent Hampel report (1998). Until recently, only two papers directly addressed the role of NEDs in SMEs; both papers were by Mileham and used data obtained from a survey concerned with the role of NEDs carried out with Institute of Management members. This research made a useful contribution, but had a number of limitations. More recently, the increased interest in the role of NEDs in SMEs has sparked further research, but there is still a need for an overall picture of NED and mentor involvement in UK SMEs. The research in this paper addresses this need by presenting the results from a survey sent to 5,279 UK SMEs selected from the Yellow Pages Business Database. The questionnaire was designed to provide a general overview of NED and mentor involvement in SMEs and to allow the following questions to be answered: How many SMEs have NEDs, and are there any firm size patterns? Are there firm age patterns? Are there firm sector patterns? Does firm size influence the formality of NED procedures? What does the managing director believe NEDs add? Are firms with NEDs more successful than those without a NED? Does the profile of the managing director matter? Does a firm’s size influence NED involvement? How do firms acquire NEDs? Why do some SMEs not have NEDs? The paper presents these findings and explores the implications for SMEs and policy advisors.
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Lew Perren, Aidan Berry and Robert Blackburn
Research and dissemination of the results has always been an important activity for those in the academic community. The Research Assessment Exercise (RAE) has brought the whole…
Abstract
Research and dissemination of the results has always been an important activity for those in the academic community. The Research Assessment Exercise (RAE) has brought the whole area of research publication and dissemination into sharp relief, and striving for high research rankings seems, for some, to have become an end in itself. Some argue that the RAE has restricted the wider dissemination of research as academics focus on refereed journal articles to the detriment of other forms of output, eg professional articles, consultancy, books and practitioner conferences. The RAE has intensified interest in the purpose and process of publication in most discipline areas and has created considerable controversy regarding the status of different publication channels. The small business research area is no exception. This research provides a profile of the UK small business research community, it explores their perceptions regarding research and establishes the esteem that various publication channels are held. Defining precisely what constitutes the area of small business research is problematic. Indeed, providing a specific boundary would create a false precision, small business research overlaps with areas such as entrepreneurship and innovation, and it also draws upon a range of disciplines. Nevertheless, relative limits were placed on this research by the nature of the people who were asked to express their opinion and the questions they were asked. The attitudes were sought through a survey of active UK researchers (97 per cent of respondents had published in the area, 81 per cent were academics, 7 per cent were policy makers and 4 per cent business practitioners) listed on the Institute of Small Business Affairs/Small Business Research Trust database. The title and nature of these organisations suggests that those listed at least identify with the notion of small business research as an area. In addition, the questionnaire emphasised small business research throughout, and no mention was made of entrepreneurship, innovation or associated areas. Ninety‐eight questionnaires were returned, representing a 47 per cent response rate. The community was found to be more stable and mature than expected, but small business researchers held other research areas in greater esteem and most regarded themselves as empiricists rather than theorists. The implications of these results are explored for the next RAE and for the future of small business research.
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Lew Perren, Aidan Berry and Mike Partridge
Research into management information, control and decision‐making in small businesses appears on the surface to be contradictory. Some research suggests that small businesses have…
Abstract
Research into management information, control and decision‐making in small businesses appears on the surface to be contradictory. Some research suggests that small businesses have little management information, poor control and that decision‐making is ad hoc. Other research suggests that small businesses acquire effective information and control through informal means, and that decision‐making can be sophisticated. This research addresses these apparent contradications by conducting a longitudinal, in‐depth exploration of the management information and decision‐making processes in four service sector businesses that have recently broken through the micro‐enterprise barrier. Multiple sources of evidence were used to construct a longitudinal history of information provision and decision‐making in each case. These included taped, oral, accounts of each owner‐manager’s life, focused semi‐structured interview questions and documentary evidence. The quality of the data has allowed a cross case causal network to be constructed which synthesises the evidence. This traces the chains of causality from the informal systems at the start of the businesses through to the later developments of more formal systems. This leads to a consideration of implications for small businesses, practitioners and policy makers.
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Rosie Boxer, Lew Perren and Aidan Berry
Research into top management team (TMT) performance and consensus has been equivocal; furthermore, research into the role of non‐executive directors (NEDs) in UK SMEs concluded…
Abstract
Purpose
Research into top management team (TMT) performance and consensus has been equivocal; furthermore, research into the role of non‐executive directors (NEDs) in UK SMEs concluded that multiple perceptions of “reality” exist between directors. By adopting an innovative methodological approach to analysis, the “black box” complexity of SME board information processes, perceptions and TMT relationships are made visible. This allows the tension caused by differing perceptions of the NED role on a small company TMT to be explored. The aim of this paper is to do this.
Design/methodology/approach
In an in‐depth case study of one SME board, four directors' information and perception differences are investigated using a combined Johari window and set theory framework.
Findings
Application of this innovative analytical framework allowed the information process and differing perceptions of multiple directors to be plotted systematically. This surfaces the normally hidden “generative mechanisms” underlying the “real domains” of the SME board processes by explaining why and how the directors choose to share and hide information about the NEDs' role. Surfacing the nature of this information sharing and hiding is at the heart of appreciating the process of precarious equilibrium that achieves a fragile cohesion within the TMT.
Research limitations/implications
This study reveals the fragility of TMTs to the process of information sharing and hiding. It demonstrates the sensitivity of the group to perceptions of the NED role and the influence the NED can have on information processes within the group and potentially its cohesion. NEDs joining small company boards need to be sensitive to the existing informational asymmetries that may be vital to maintaining precarious equilibrium and cohesion. In their role they are likely to become the confidant of more than one director and thus nodal points of “secret” information. They need considerable interpersonal sensitivity and tact if they are to fulfil their role of challenging the directors without detrimentally disrupting the group dynamic.
Originality/value
This paper answers the call for more qualitative research to investigate the “lived experience” and “behavioural processes” of directors by adopting the combined Johari window and set theory framework. This analysis tool offers an innovative method that will be of value to other researchers and practitioners investigating TMT group dynamics. It provides a rare opportunity to understand the information process and perceptions of a small company TMT and the influence on the equilibrium and cohesion of the group.
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This research examines micro‐enterprises pursuing gradual growth. The research findings and implications are provided in two parts. Part 1 was presented in Volume 6, Number 4 of…
Abstract
This research examines micro‐enterprises pursuing gradual growth. The research findings and implications are provided in two parts. Part 1 was presented in Volume 6, Number 4 of the Journal of Small Business and Enterprise Development (JSBED) (Perren, 2000). It developed an empirically verified framework that explains how growth was influenced by a myriad interacting factors; this led to a discussion of the policy implications of the framework. Part 2 explores the managerial implications of the framework. A diagnostic toolkit is systematically developed to encourage micro‐enterprise owner‐managers and advisers to explore the influences on the interim growth drivers identified in part 1. It is hoped this will help them to highlight ways of “compensating” deficits in particular factors and to think creatively about growth opportunities. The audience has changed from academics and policy‐makers to owner‐managers, so the diagnostic toolkit avoids technical language and employs a Socratic questioning approach to encourage free‐thinking and self‐analysis.
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This research examines micro‐enterprises pursuing gradual growth. While very little research has been targeted specifically at the growth of micro‐enterprises, there are a host of…
Abstract
This research examines micro‐enterprises pursuing gradual growth. While very little research has been targeted specifically at the growth of micro‐enterprises, there are a host of possible influencing factors suggested by the rather broader small business literature. Less research has attempted to integrate the factors that influence growth of small firms into some form of model. Those models that were found had a number of shortfalls when it came to understanding the development of micro‐enterprises. A framework has been developed through this research that addresses these shortfalls. First, it has targeted specifically gradual growth micro‐enterprises; secondly, it is rigorously under‐pinned through empirical research; thirdly, it attempts to comprehensively cover the range of factors that influence development; fourthly, it focuses on the complex interaction of factors that may influence development. The research findings and implications are presented in two parts. Part 1 develops an empirically verified framework that explains how growth is influenced by a myriad of interacting factors. This leads to a discussion of the policy implications of the framework. Part 2 is presented in the next edition of the Journal of Small Business and Enterprise Development (JSBED) and will explore the managerial implications of the framework. This will provide a diagnostic toolkit to help micro‐enterprise owner‐managers and advisers pursue growth. The paper is derived from research conducted initially for the submission of a PhD thesis at the University of Brighton (Perren, 1996).
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Aidan Daly, Stephen J. Grove, Michael J. Dorsch and Raymond P. Fisk
The purpose of this paper is to examine the value of improvisation training, as used in schools of acting, in preparing front‐stage service employees perform their roles when…
Abstract
Purpose
The purpose of this paper is to examine the value of improvisation training, as used in schools of acting, in preparing front‐stage service employees perform their roles when interacting with customers as cabin crew in Aer Arann, a regional Irish airline.
Design/methodology/approach
To discern the relevance and impact of improvisation training, a case study methodology was employed. The subjects of the investigation were seven recently hired cabin crew personnel for Aer Arann. Data for the case study were collected from the new hires at three different times.
Findings
The study shows that participants both enjoyed the improvisation training and found it to be very valuable as preparation for their roles in the airline. A key finding was that the new hires strongly recommended that improvisation training be incorporated into the airline's regular induction training programme. Specifically, participants felt the improvisation training improved their confidence, effectiveness, ability to adapt, spontaneity and comfort in successfully handling unique situations.
Research limitations/implications
As with many case studies, the study presented here focuses on a single company for its data generation. Further, because of the realities of commercial life, the subject pool is quite small, i.e. due to the demands of their position, only seven new hires were available for the 12 hours needed to conduct the training, as well as the subsequent assessment activities. Nevertheless, the case study enabled the authors to gain meaningful insights into the utilisation of improvisation training in a real‐world setting.
Originality/value
The research makes several key contributions. First, it links theory and practice by demonstrating in a real world context the efficacy of framing service as theatre. Second, based on the service theatre literature, the paper details the utility of improvisation training as a means of preparing front‐stage service employees for the rigours of their jobs. Finally, the research presents new, empirically based insights regarding the value and contribution of improvisation training in the services sector.
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Yuting Zhang, Lan Xu and Zhengnan Lu
The purpose of this paper is to show that research on policy diffusion mechanism of Government Procurement of Public Services (GPPS) is beneficial to improve the efficiency of…
Abstract
Purpose
The purpose of this paper is to show that research on policy diffusion mechanism of Government Procurement of Public Services (GPPS) is beneficial to improve the efficiency of policy formulation and implementation.
Design/methodology/approach
In view of the four dimensions which are internal demand, external pressure, policy innovation environment and service characteristic, a system of factors affecting policy diffusion is established. On this basis, a Multilayer Fuzzy Cognitive Map (MFCM) model for policy diffusion of GPPS is constructed. Nonlinear Hebbian Learning algorithm and genetic algorithm are applied to optimize the two components of the MFCM model, which are relationship between nodes at the same layer and influence weights between nodes at different layers, respectively. Taking Nanjing municipal government purchasing elderly-care services in China as the empirical object, simulation of policy diffusion based on the MFCM model is carried out, aiming to obtain the key factors influencing policy diffusion and the dynamic diffusion mechanism of GPPS policy.
Findings
Research results show that, compared with monolayer Fuzzy Cognitive Map, the MFCM model converges faster. In addition, simulation results of policy diffusion indicate that economic development level of jurisdiction, superior pressure, administrative level and operability of services are key influencing factors which are under four dimensions correspondingly. And the dynamic influencing mechanism of key factors has also been learned.
Originality/value
This paper constructs the MFCM model, which is a new approach based on several monolayer FCMs, to study the policy diffusion mechanism.
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