Marta Gancarczyk, Joerg Freiling and Jacek Gancarczyk
This paper aims to explain the dynamics of entrepreneurial decisions and actions (D&As) in the small and medium-sized enterprise (SME) growth process. The study focuses on the…
Abstract
Purpose
This paper aims to explain the dynamics of entrepreneurial decisions and actions (D&As) in the small and medium-sized enterprise (SME) growth process. The study focuses on the changing portfolio and relationship governance and captures these dynamics by using the concept of “enabling constraints” (ECs).
Design/methodology/approach
In-depth, long-term and multiple-case study method was adopted based on six high-growth SMEs. Pattern-matching and alternative template approach formed a basis for developing a research framework, further corroborated and advanced in the empirical study.
Findings
The research provides empirical evidence of ECs as entrepreneurial perceptions that both limit (constrain) the range of accessible options and facilitate (enable) new opportunities. This study’s results point to how owner-managers' judgments about growth motives and rationales constrain their choices and how they enable new directions, acknowledging the changing context.
Originality/value
This work contributes to the research on SME growth processes by specifying their dynamics in terms of a creative mutual causality. Here, D&As stem from entrepreneurs' perceptions that are affected by the context, with the latter also shaped by prior decisions and actions. This theoretical contribution has been synthesized in the form of a framework of ECs in the SME growth process with related propositions.
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The purpose of this paper is to discuss the process of entrepreneurial growth from the perspective of the resource-based view (RBV) of the firm and transaction cost theory (TCT…
Abstract
Purpose
The purpose of this paper is to discuss the process of entrepreneurial growth from the perspective of the resource-based view (RBV) of the firm and transaction cost theory (TCT) and to formulate propositions regarding the entrepreneurs’ decisional rules and structural elements in this process.
Design/methodology/approach
The argumentation draws upon three fields of academic research, namely, entrepreneurship studies on firm growth as well as strategic management and organization science studies on company scope and size (boundary). A systematic review of the literature was performed that combines the RBV and TCT to explain a firm’s boundary.
Findings
Three levels of entrepreneurial decisional rules in the process of growth were identified. The first level includes main decisional criteria. The second level approaches the structural elements of growth process, namely, its motives, rationale, mechanism and modes. The third level assumes evolutionary approach to decision making, namely, feedback relationships among transaction costs, governance and capabilities to create value from growth.
Originality/value
The paper broadens the early stream of research in the process of entrepreneurial growth. It contributes to explaining the way growth is realized, instead of identifying its predictors, which has dominated in to-date studies. The entrepreneurs’ decisional rules and choices in the process of expansion were suggested. Moreover, the integrated RBV-TCT approach was proposed as a theoretical background for studying this phenomenon.
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Piotr Łasak and Marta Gancarczyk
The aim of this paper is to develop a theoretical framework of the transformation of the bank's scope driven by fintechs.
Abstract
Purpose
The aim of this paper is to develop a theoretical framework of the transformation of the bank's scope driven by fintechs.
Design/methodology/approach
The conceptual foundations for a comprehensive transformation of the bank governance through financial technologies (fintechs) are underexplored. In order to develop such foundations, the authors adopt transaction cost economics (TCE), the concepts of external enablers and a modular organizational design, as well as a systematic literature review.
Findings
The results point to three scenarios of the banks' scope, depending on the adopted technological mechanisms and related effects that change the characteristics of organizational activities, justifying new bank boundaries. The most advanced application of fintechs results in a modularized network scenario leading to the emergence of financial ecosystems.
Research limitations/implications
The proposed micro-perspective of decisional rules in an individual organization is unique in the current literature that predominantly focuses on the banking sector at large. The identified scenarios are valuable for solid theoretical and empirical grounding and can be further exploited in decision simulations and empirical studies.
Practical implications
The proposed theoretical framework points to the rationales and consequences of adopted technologies for the boundaries of a bank organization.
Originality/value
This paper provides three contributions to the literature on technology-driven transformations of organizations with a focus on banks. First, the authors elaborate a theoretical framework for establishing the bank's boundaries in response to the expansion of financial technologies. Second, the authors add to the knowledge accumulation in the area of organizational transformations based on the ICT adoption, in particular, to the literature on the modular organizational design. Third, the authors contribute to the decision-maker practice by proposing the alternative options of banks' scope transformed through fintechs.
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In line with the slogan “Africa rising”, the paper responds to the calls to shed light on the management knowledge of Africa, especially on the internationalisation of process of…
Abstract
Purpose
In line with the slogan “Africa rising”, the paper responds to the calls to shed light on the management knowledge of Africa, especially on the internationalisation of process of small and medium-sized enterprises (SMEs) from Africa. This paper aims to explore the critical incidents that trigger the export initiation of SMEs from the garment and textile sub-sector of Ghana.
Design/methodology/approach
The study is based on the qualitative multi-case study research approach, coupled with the critical incident method and uses 36 case firms from the garment and textile sub-sector of Ghana.
Findings
From the interview transcripts, it was found that being in the receipt of unsolicited order, wining government award and having international orientation are among the critical incidents that catapult SMEs in the garment and textile sub-sector of Ghana to initiate export business.
Research limitations/implications
The study is based on the interpretivist qualitative method; therefore, future studies could extend the results by improving the sample size and use statistical methods.
Practical implications
Based on the findings, it is recommended that what is needed to improve export participation of SMEs from Ghana is entrepreneurial orientation. Implicitly, public policy must promote entrepreneurship education, i.e whether the government expects to see improvement in export involvement of SMEs from Ghana. Such initiatives will catapult most entrepreneurs from their comfort zones to take advantage of the various critical incidents in the external business environment and become exporters.
Originality/value
The contribution of the paper is that unlike previous studies that use objective quantitative measures to examine the issue from other settings, the present paper uses the critical incident method which is proven to delve deeper into the phenomenon. Another contribution is that it sheds light on the internationalisation process of manufacturing SMEs from an under-researched and a new geographical context.
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This paper aims to explore the nature of Industry 4.0 (I4.0) cluster, to establish and empirically verify in the pilot study the role of clusters in developing the fourth…
Abstract
Purpose
This paper aims to explore the nature of Industry 4.0 (I4.0) cluster, to establish and empirically verify in the pilot study the role of clusters in developing the fourth industrial revolution. It aims to find out if the cluster can provide a conducive knowledge environment fostering the advancement of I4.0; simplify the implementation of I4.0 by making it faster, easier, and cheaper and finally be applied as policy tool organising the development of I4.0.
Design/methodology/approach
This paper is based on the narrative literature review mapping the cluster’s nature with I4.0 features. It adopts the case study approach and uses simple statistical analysis to explore the basic characteristics of I4.0 clusters combined with a survey technique – short questionnaire organised in three major blocks.
Findings
Drawing on German pilot study it can be confirmed that clusters offer conducive environment facilitating the emergence, testing and development of I4.0 specific solutions. They provide favourable knowledge environment, simplify and increase the efficiency of the business processes and organise the policymaking in this area.
Originality/value
The results of presented pilot study rooted in Germany – a country seen as the front-runner in implementing the solutions of the fourth industrial revolution – can add a certain value to the emerging research on unearthed linkages between clusters and I4.0. This paper might be seen as a contribution to the emerging literature on the spatial dimension of I4.0. It expands previous research on cluster channels’ likely impact on I4.0.
Ofer Dekel-Dachs, Marta Najda-Janoszka, Peter Stokes, Amon Simba and Shlomo Tarba
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses…
Abstract
Purpose
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses, evaluates and synthesises studies featuring formal and informal institutions, embedded in social and business networks, as a marketing solution for institutional voids. The review shows that current international marketing studies downplay the role of informal institutions in the internationalisation of SMEs. Thus, the authors set a new research agenda for advancing the institutional theory to account for the impact of informal institutions and networks on firm internationalisation.
Design/methodology/approach
This review followed five structured stages, including framing the research questions, identifying relevant studies, assessing their quality, summarising the evidence and interpreting the findings. Based on the systematic approach, 434 papers (374 from Web of Science, 60 from Scopus) were generated. Following that, the authors applied the qualitative inclusion/exclusion criteria, which yielded 63 papers. Their analysis involved three authors, with the fourth author focusing on ensuring quality in the analysis.
Findings
The study findings invite a different line of theorising market structures and processes focusing on the role of networks as an alternative to formal institutional systems. The outcome of our review suggests that there is scope for developing the institutional theory that account for the role of informal institutions and networks.
Originality/value
Based on the analysis, we call for new theorisation, in the international marketing literature, which accounts for informal networking amongst internationalising SMEs in the light of institutional voids. Thus, the authors promote novel participatory, bottom to top understanding of relationship between institutions and enterprises.
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Marta Mackiewicz and Marta Götz
This study is exploratory in nature and designed to address poorly documented issues in the literature. The dimensions of regional distribution or spatial organisation of Industry…
Abstract
Purpose
This study is exploratory in nature and designed to address poorly documented issues in the literature. The dimensions of regional distribution or spatial organisation of Industry 4.0 (I4.0), including the potential role of clusters, have only recently been addressed, with most available studies focusing on advanced, mainly Western European countries. Although developing fast, the literature on I4.0 in other countries, such as the Central and Eastern European or post-transition economies like Poland, needs to pay more attention to the spatial distribution or geographical and organisational aspects. In response to the identified knowledge gap, this paper aims to identify the role of clusters in the transformation towards I4.0. This explains why clusters may matter for advancing the fourth digital transformation, how advanced in implementing I4.0 solutions are the residents of Polish clusters and how they perceive the advantages of cluster membership for such implementation. Finally, it seeks to formulate policy recommendations based on the evidence gathered.
Design/methodology/approach
The methodology used in this study combines quantitative analysis of secondary data from a cluster benchmarking survey with a case study approach. The benchmarking survey, conducted by the polish agency for enterprise development in 2021, gathered responses from 435 cluster members and 41 cluster managers, representing an estimated 57% of the current clusters in Poland. In addition to quantitative analysis, a case study approach was used, incorporating primary sources such as interview with cluster managers and surveys of cluster members, as well as secondary sources like company documents and information from cluster organisation websites. Statistical analysis involved assessing the relationship between technology implementation and the adoption of management systems, as well as exploring potential correlations between technology use and company characteristics such as revenue, export revenue share and number of employees using Pearson correlation coefficient.
Findings
In Poland, implementing I4.0 technologies by cluster companies is still modest. The cluster has influenced the use of I4.0 technologies in 23% of surveyed companies. Every second surveyed company declared a positive impact of a cluster on technological advancement. The use of I4.0 technologies is not correlated with the revenue of clustered companies. A rather bleak picture emerges from the results, revealing a need for more interest among cluster members in advancing I4.0 technologies. This may be due to a comfortable situation in which firms still enjoy alternative competitive advantages that do not force them to seek new advanced advantages brought about by I4.0. It also reflects the sober approach and awareness of associated high costs and necessary investments, which are paramount and prevent successful I4.0 implementation.
Research limitations/implications
The limitations inherent in this study reflect the scarcity of the available data. This paper draws on the elementary survey administered centrally and is confined by the type of questions asked. The empirical section focuses on an important, though only one selected sector of the economy – the automotive industry. Nevertheless, the diagnosis of the Polish cluster’s role in advancing I4.0 should complement the existing literature.
Practical implications
The exploratory study concludes with policy recommendations and sets the stage for more detailed studies. Amidst the research’s limitations, this study pioneers a path for future comprehensive investigations, enabling a deeper understanding of Polish clusters’ maturity in I4.0 adoption. By comparing the authors’ analysis of the Polish Automotive Group (PGM) cluster with existing literature, the authors uncover a distinct disparity between the theoretical prominence of cluster catalysis and the current Polish reality. Future detailed dedicated enquiries will address these constraints and provide a more comprehensive map of Polish clusters’ I4.0 maturity.
Originality/value
This study identifies patterns of I4.0 implementation and diagnoses the role of clusters in the transformation towards I4.0. It investigates how advanced is the adoption of I4.0 solutions among the residents of Polish clusters and how they perceive the advantages of cluster membership for such transformation. Special attention was paid to the analysis of the automotive sector. Comparing the conclusions drawn from the analysis of the Polish PGM cluster in this case study to those from the literature on the subject, it becomes clear that the catalytic role of clusters in the implementation of I4.0 technologies by enterprises, as emphasised in the literature, is not yet fully reflected in the Polish reality.