Technological Regimes and Firm Survival: Evidence Across Sectors and Over Time

In addition to the usual variables representing firm- and industry-specific features that impact the firm’s survival, this paper uses three R&D related variables to reflect two Schumpeterian technological regimes: creative destruction (the entrepreneurial regime) and creative accumulation (the routinized regime). After controlling for age, size, entry barriers, capital intensity, the profit margin, the concentration ratio, the profit-cost ratio and entry rates, the empirical results confirm the theoretical relationship between technological regimes and the survival rate of new firms: new firms are more likely to survive under the entrepreneurial regime. Moreover, this effect is larger within the younger cohorts of firms than within the older ones.      

The Resource-Based Theory of the Firm and Firm Survival

This paper examines the determinants of firm survival. We use hazard models to test a number of hypotheses mainly drawn from the Resource-Based Theory of the Firm. According to the Resource-Based View the ability of a firm to develop distinct capabilities enhances its ability to adapt to the changing competitive environment and improves its survival prospects. The results confirm that firms that develop firm-specific assets through advertising and making R&D (independently of the technological intensity of the industry) enjoy better survival prospects. Furthermore, failure risk increases up to about 20 years of trading, and then decreases to later rise in line with liability of “adolescence” and “senescence.”      

The Small Accounting Firm

No abstract available for this article.     

New Technology and The Small Firm

This paper examines how and why the role of small business has become more important over time. A special focus is placed on the role of small business in the New Economy.     

Size,Age and Activity Sector on the Growth of the Small and Medium Firm Size

Although corporate growth is one of the most researched subjects in different areas of economic science, it is not currently based on a general theory or generally accepted conceptual definition. In spite of this, growth has usually been considered an essential objective for a firm, contributing to its survival and competitiveness. This work aims to provide a more in-depth study of the factors that condition the growth of small and medium-sized firms, by offering some empirical evidence that will contribute to its modelling, especially in relation to the influence of size, age and activity sector. In this context, we shall attempt to contrast the validity of Gibrat's approach and the Learning Theory.     

基于生存分析模型的企业生存问题及其影响因素研究综论

文章从基于生存分析模型的企业生存问题研究框架着手,对现有文献进行了系统梳理,总结了当前企业生存问题研究中常用的方法和模型,归纳了可能影响企业生存的主要因素,并提出了未来的研究方向。     

Small Business Survival

Abstract

Previous evidence given for some of the significant costs of survival for private enterprises in Guangzhou suggested that entrepreneurs may pay a significant amount in the form of dinners, gifts, and other offerings to insure survival. As a follow-up to that preliminary study, data have been collected from a cross-section of industries formally operationalizing the “costs” of survival as the means for maintaining legitimacy. The cultural context for such costs/offerings is hypothesized to be through guanxi, a traditional way of establishing social and business networks. The analyses herein suggest that guanxi costs are significantly higher for private enterprises versus all other enterprises types, i.e., state, private, township and village, domestic and foreign enterprises. Also, consistent with its cultural context, quanxi is consider to be equally important in business as in life for all types of Chinese enterprises.     

Small Firm Behaviour in Sri Lanka

This paper investigates the behaviour of small firms in Sri Lanka using a countrywide cross-sectional survey. The 73 responding firms provide information on whether certain variables: the firm's utilisation of assets; labour; technology; family savings; and access to bank financing, vary with four firm-specific factors: industry; family ownership; size; and whether the firm's manager was also an owner of the firm. Sampled small firms are mostly family owned and owner managed although a significant number of family owned firms are managed by non-family managers. Most firm's under-utilise assets, use existing rather than the latest technology, and are reliant upon family savings. Statistical analysis provides evidence of significant cross-sectional variation in small firm practice. The results are explained in terms of the cost of acquiring new technology, asymmetries and opacity in financial information, and the non-value maximising behaviour of firm owners who are also firm managers.     

Marketspace and the Internationalisation Process of the Small Firm

This empirical study explores the potential impact of the marketspace—the virtual world of digitised information—on the process of internationalisation within small technology-based firms (STBFs). Research findings demonstrate several effects relating to the firm's increased use of the marketspace for international business activities. In relation to internal resource-related effects, increased marketspace use is associated with: a stronger internal resource-base for international operations; and higher levels of internal international business information. Moreover, in relation to external resource-related effects, increased marketspace use is associated with: an increase in the firm's international orientation; an increase in the range and diversity of international business contacts; and an increase in unsolicited orders from foreign markets. This study confirms that the entrepreneur's prior Internet experience is a critical factor influencing use of the marketspace to support the firm's international operations. Similarly, organisational use of the marketspace (influenced by the previous experience of the entrepreneur) impacts upon certain aspects of the firm's internationalisation behaviour. Despite the significance of these findings, the marketspace is neither a replacement for traditional marketplace-based activities, nor is it a panacea that ensures effective small firm internationalisation. Complementary exploitation of both the marketspace and the traditional marketplace is likely to provide the optimal internationalisation route for small firms.     

The Status of the Small Hotel Firm

This paper builds on research that was carried out in the early 1990s in order to assess the contemporary status of the small firm within the hotel industry sector. It raises debates concerned with definition and associated statistical constraints and limitations. While a fluid, grounded definitional approach is recommended as a means of more effectively accessing the ‘real world’ of small firms, challenges are recognised relative to its contribution to consistent and comparable research findings. The paper concludes that the status of the small hotel firm continues to weaken, operating at the periphery as broadly conceived. Furthermore, the final assessment is that too much remains unknown about this phenomenon.     

Small Firm Growth: Intentions, Implementation and Impediments

Recent evidence suggests that many small to medium sized enterprises (SMEs) in the UK experience difficulty growing from the start-up phase into larger well established firms. This research uses survey data from UK instruments, printing and software SMEs to explore the attitudes of SME managers towards growth, to identify the strategies they pursue to achieve growth, and to establish the main factors they perceive to be limiting their growth. We find that although most managers profess to value growth and follow expansionary strategies, the main limits on the growth of SMEs are the intensity of competition stemming from the recession, and the inability or unwillingness of management to deal with the increased administrative burden arising from expansion.     

The Contribution of Networking to Small Firm Marketing

It is generally accepted that networking is one means through which owner–managers of small firms market their goods and services. However, though there has been considerable attention directed toward the concept of small business networking, previous studies have failed to present a comprehensive investigation of the contents of network links, an analysis of the benefits contained within these links, and an expatiation of how these benefits contribute to the small firm, specifically its marketing activities. To that end, this paper reports on an in‐depth qualitative study to present an analysis of the contribution that networking makes to small firm marketing.     

Towards an Integrative Model of Small Firm Internationalisation

Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards psychologically close markets and increase commitment to international markets in a gradual, step-wise, manner through a series of evolutionary stages. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by born global firms. Typically, these are smaller entrepreneurial firms that internationalise from inception, or start to shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base. In addition, the authors have found evidence of firms supporting this born global pattern of behaviour but also evidence of firms that suddenly internationalise after a long period of focusing on the domestic market. These born-again globals appear to be influenced by critical events that provide them with additional human or financial resources, such as changes in ownership/management, being taken over by another company with international networks, or themselves acquiring such a firm. Based upon the extant literature and our own research, we propose an integrative model that recognises the existence of different internationalisation pathways. We then explore differences in behaviour due to the firm's internationalisation trajectory and discuss the strategic and public policy implications.     

Small Firm Statistics: A Hotel Sector Focus

This article contrasts and compares statistics from the UK small firm sector in general with those related to small firms within the hotel industry. In doing so, it is clearly illustrated that there is a need to focus research, resultant policy and strategy on the specific issues facing small firms at a sub-sector level, rather than assuming a homogeneity of the small firm population in general. The paper concludes that the plight of the small firm operating within the hotel industry is dire and questions what the future holds.     

Organization Context and Human Resource Management in the Small Firm

This paper examines the relationship between organization contextual variables and human resource management (HRM) practices in small firms. The proposed model is based on an integration of theoretical perspectives, including the resource-based approach, institutional theory, transaction cost economics (TCE), and concepts from strategic management. The model is explored empirically, with qualitative and quantitative analyses of data collected from a sample of sixteen small Dutch firms. Specific contextual variables examined include company size, the presence of a collective labor agreement, having a large firm associate, either as supplier, purchasing group or franchiser, and the company's strategic orientation toward growth (growth strategy). An important finding is the significance of having a large firm associate. Companies with a large firm associate are more likely to report having employer-based training programs. As predicted, company size is associated with more formal HRM practices, including greater regularity of performance appraisal and greater likelihood of employer-based training. A weak relationship is found between a more growth-oriented strategy and greater formality of these two HRM practices. Predictions based on collective labor agreements are not supported. The paper concludes that the findings warrant further research on the relationship between organization contextual variables and the formalization of HRM practices, although a clearer definition of the latter variable is needed in future research.     

Accountants and Small Firm Development: Filling the Expectation Gap

As a supplier of rzecessaty expertise, the professional accountantis in a potentially strong position to influence the small business.Previous research indicates, howevec that the injluence of theaccountant on the performance of the smallfirm is limited. Thispaper examines the relationship between small firms and theaccountancy profession in the North East of international. It is basedon two surveys of 31 small businesses and 33 accountancypractices. It reveals a mismatch in the expectations of the twogroups- and argues that if the accountancy profession is to fulfilits potential in assisting small firms develop and improve theirmanagement capability, changes are required in the wayaccountancy services are marketed and provided.     

Managerial Behavior, Entrepreneurial Style, and Small Firm Performance

Considerable effort has been devoted to identifying the general characteristics of entrepreneur; however, much of this has been conducted from a trait–based rather than from a behavioral perspective. In this study of small firms in the United Kingdom, we explored the relationships among managerial behaviors (based upon a competence model), entrepreneurial style (based on Covin and Slevin's theory), and firm type (in terms of sales growth performance). Principal components analysis of a management competence inventory identified six broad categories of managerial behavior. Regressing a measure of entrepreneurial style on these six behaviors suggested that managing culture and managing vision are related to an entrepreneurial style, while managing performance is related to a nonentrepreneurial style. Entrepreneurial style—but not managerial behavior—was associated positively with the probability that a firm would be a high–growth type. The results are discussed from the perspective of a model of small firm management that posits separate entrepreneurial, nonentrepreneurial, and generic management behaviors derived from a global competence space.     

The Dynamics of Firm Growth and Survival Under Alternative Forms of Control

The publication of the passive learning model of Jovanovic [Jovanic, B., "Selection and the Evolution of Industry," Econometrica, 1982, 60, 649–670.] initiated a resurgence of interest in firm growth and survival processes. Yet all the recent work has focused on the profit maximizing firm, without considering how robust the results are to alternative forms of control. This paper applies the model to the case of the labour managed firm, a type of firm studied extensively for its divergent behaviour from profit maximising firms. The findings indicate that Jovanovic's key predictions are rendered indeterminate under labour management, although there is evidence to show that the actual empirical relationships continue to hold. In considering possible explanations for the breakdown of the results, we conclude that the Jovanovic model overemphasizes institutional structure to the neglect of more fundamental determinants of growth and survival.midt, Paul Geroski and an anonymous referee for helpful comments and discussions. Any remaining errors are my own.     

Small Firm Dynamics: Evidence from Africa and Latin America

This paper investigates the determinants of survival and growth among small and very small enterprises in Africa and Latin America. Location is found to be an important factor. Firms located in urban and commercial areas are more likely to survive during a given year than those located in rural areas or those being operated out of home. Urban and commercial location is also associated with faster growth, as measured by the number of employees hired in a given year. Studies are also cited to show that human capital matters, especially when it is in the form of vocational training or prior business experience.     

Technological Scanning by Small Canadian Manufacturers

Given that in many industries new production and information technologies have fundamentally changed the way in which firms must operate and compete, the technological aspect of environmental scanning has become a critical success factor for many small and medium-sized manufacturing enterprises. As little is presently known about how technological scanning manifests itself in these organizations and about what determines the nature and level of this activity, a survey study of 324 Canadian firms was done. Testing a research model resulted in identifying four interrelated dimensions of scanning activity, namely scanning objectives, type of information, information sources, and management practices. Key determinants of this activity were also identified, including the firms' strategy, environmental uncertainty, production technology, level of R&D, information networks, and the owner-manager's education level.