What happens to gazelles? The importance of dynamic management strategy

The starting point of this study is Gibrat’s Law, which is contrasted with strategic management. This logic is subsequently applied to a group of remarkably dynamic, high-growth firms: gazelles. Strategic management theory emphasises the importance of firms adjusting strategies in response to changes in the external environment. In our study, it is used to explain several key empirical findings using a novel British data set containing information on more than 100 gazelles. These findings help explain: (1) why Gibrat’s Law of random firm growth processes does not generally hold, (2) which strategy and environmental variables have a predictable influence on firm performance and (3) why routine application of ‘best practice’ strategies is unlikely to foster firm growth in a changing economic environment. In so doing, this paper contributes to the large body of literature on small-firm growth.     

Managers' Theories About the Process of Innovation

Despite the widely-recognized importance of innovation to organizational competitiveness and national economic well-being, and despite the extensive commentary on the topic, the managerial processes which contribute to innovativeness and the factors and processes inhibiting its achievement remain underexplicated. This article contributes to an understanding of the management of innovation by approaching the innovation problem from an analysis of the accounts, interpretations and theories of the actors closely engaged with the process. Focusing on a large telecommunications equipment manufacturer, this article reveals how managerial discourse may hold the key to understanding the nature of the barriers to effective innovation.     

The remuneration of non-owner managers in UK unquoted and Unlisted Securities Market enterprises: An empirical analysis of firm specific,human capital and job history influences

This paper examines the extent to which the remuneration levels of non-owner managers employed by UK small and medium size enterprises (SME) can be explained empirically by a number of firm specific, human capital and job history characteristics. The UK SME sector is very heterogeneous and we test for possible differences in the determinants of remuneration for two distinct groups of firms. One group consists of high-growth firms that achieved an Unlisted Securities Market (USM) listing within 10 years of start-up. The second group consists of similar firms, matched with the USM firms in terms of age, sector and location, that have remained unquoted businesses. The empirical analysis, based upon data obtained from interviews with non-owner managers and the published financial records of their employing firms lodged at Companies House, focuses on comparing the separately estimated remuneration equations for the two groups of managers.The empirical results indicate that for both groups, the managers' age and qualifications and the asset size and location of their employing firms are significant factors and collectively are able to explain a large proportion of the cross-sectional variance in remuneration. Moreover, the size and significance levels of the estimated parameters on these variables were statistically identical in the two equations. However, the job history variables, in particular whether or not the manager had previously been employed by a large firm and whether the individual had previously been employed as a manager, were of relatively more importance in explaining the remuneration levels of the USM managers. Though there is a lack of previous empirical research on SME managerial pay, these results are broadly consistent with the expectations derived from the extant theoretical and empirical literatures.     

MANAGEMENT CONTROL AS A BRIDGING CONCEPT

Despite their often overlapping subject areas, management science and social science reveal only occasional promise of a fruitful interlink. However, recent developments in the study of managerial control suggest that this problematic could well be used as a suitable bridge.     

From frozen continent to tourism hotspot? Five decades of Antarctic tourism development and management,and a glimpse into the future

Representing the main commercial activity on the Antarctic continent, Antarctic tourism is increasingly thrust into the limelight as both benefactor and detractor to the environmental and political integrity of Antarctica. In view of its unprecedented growth, questions arise about the limitations of future tourism development in Antarctica. This paper assesses Antarctic tourism development over the last five decades and evaluates its current and future status from the viewpoints of Antarctic tourism stakeholders. This assessment is informed by interviews with Antarctic tourism stakeholders and a Delphi study undertaken in 2007. The authors found that Antarctic tourism stakeholders are concerned about the increasing scale and diversification of Antarctic tourism and generally subscribe to a conservation imperative when expressing their hopes for the future use of Antarctica and the development of Antarctic tourism. In conclusion, the rapid development of Antarctic tourism requires structural, institutional and legislative changes if Antarctic tourism regulation is to remain successful.     

Outcomes reported by students who participated in the 1994 Shell Technology Enterprise Programme

Policy-makers have supported initiatives that enhance the competitiveness of small and medium-sized enterprises (SMEs). They have also encouraged more students to seek jobs in SMEs. This study assessed the contribution of the 1994 Shell Technology Enterprise Programme (STEP), which subsidized the employment of students in SMEs in the UK. A key issue is whether STEP students participating in the programme reported significantly superior benefits than students who had never participated in the programme (i.e. non-STEP students). Outcomes associated with the programme were assessed over a 36-month period between 1994 and 1997. The programme had no significant impact on the ability students to have obtained full-time jobs. Similarly, the programme was not found to be significantly associated with the ability of graduates to have obtained full-time jobs in small private firms. Both STEP and non-STEP students reported in 1997 less positive attitudes towards self-employment or starting their own business. However, STEP students expressed a significantly more positive attitude than non-STEP students towards self-employment or starting their own business. Conclusions and implications for policy-makers and practitioners are detailed.     

The Impact of Enterprise Size on Employment Tribunal Incidence and Outcomes: Evidence from Britain

Employment Tribunals are the formal means of adjudicating disputes over individual employment rights in the UK. This article hypothesizes that, because small firms favour informality over formality, they are more likely (i) to experience employee claims than large firms; (ii) to be subject to different types of claims; (iii) to settle prior to reaching a formal Tribunal; and (iv) to lose at a Tribunal. Data from the 2003 Survey of Employment Tribunal Applications are used to examine these hypotheses. They are generally supported, although in relation to the third there was no size effect. Furthermore, our results show that firms that have procedures and follow them are more likely to win than those firms that do not have any procedures. Recognizing the benefits of informality, while also ensuring that small firms follow proper standards of procedural fairness, is a policy dilemma that has yet to be resolved.     

Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice

Governments in virtually all developed countries subsidise “guided preparation” for entrepreneurial activity. Despite being so widespread, the evidence that this assistance enhances venture performance remains in dispute, primarily because of a lack of consensus over statistical approaches. This paper provides a new — to entrepreneurship scholars-approach, applying it to a programme guiding nascent and new entrepreneurs in Denmark. It concludes that the programme contributes to the survival and size of new ventures, but its impact on growth is less clear. It also finds that impact is sensitive to changing the eligibility criteria of the programme — such as requiring a modest payment from participants or selecting participants according to observable entrepreneurial characteristics.