Organizational Learning: An Empirical Assessment of Process in Small U.K. Manufacturing Firms

Organizational learning is increasingly being mentioned in the literature as a mechanism for assisting small firm survival. There exists, however, limited empirical evidence to validate the benefits claimed for the concept. A survey of small U.K. manufacturing firms was undertaken to ascertain whether entrepreneurial firms use higher-order (or double-loop) learning. Additional research aims included assessing whether organizational learning confers information management advantages and contributes to the upgrading of managerial competencies. The results suggest entrepreneurial firms do utilize higher-order learning and are able to manage information more effectively than non-entrepreneurial firms. Some evidence was found to support the view that higher-order learning influences certain managerial competencies. The implications of these findings are discussed and proposals presented on the needs for further research     

A Typology for Evaluating Branch-Level Perceptions of Internal Customer Management Processes within the UK Clearing Banks

Since the late 1980, the UK Clearing Banks have faced growing criticism over the quality of their finanical services. Advantages may exist in using internal marketing to ensure closer integration of multiple functions across all departments. Although adoption of an internal marketing philosophy may improve the quality of services delivered to both internal and external customers, it appears that there are few paradigms available which can be used by bankers seeking to introduce the concept into their organisation. By applying a quasi-ethnographic approach, a qualitative internal customer management model was developed based on the Peters and Waterman 7s framework to describe the factors influencing internal customer relationship which exist between branches and other departments within a bank. To determine if the model could be used to evaluate branch-level perceptions of internal customer management practices, a survey was undertaken using a modifed version of the Parasuraman SERVQUAL model. The responses suggest that possible actions to establish a stronger internal customer orientation may include altering prevailing management styles, restructuring, redirecting operational strategies away from excessive emphasis on technical efficiency and improving understanding of internal customer needs. Although the study indicates that the SERVQUAL tool can be used to examine internal customer service processes within the financial services sector, there is still only anecdotal evidence that stronger internal customer chains will enhance organisational performance. Further research is needed to validate claims that there are favourable cost/benefit outcomes to be exploited by strengthing internal customer management practices. For bankers who are convinced that changing internal organisational processes may enhance the quality of services delivered to external customers, then a process flow model is presented of a possible approach for evaluating and implementing changes necessary to create a stronger internal customer orientation within their organisation.     

Relationship Marketing and the Orientation Customers Require of Suppliers

Increasingly firms are being encouraged to move away from traditional, transactional marketing towards building long-term relationships with customers. The majority of the literature examines the benefits to suppliers of adopting this philosophy. It was decided, therefore, to examine whether the interacation between customer requirements of the marketing style exhibited by their suppliers and customers’ perception of style delivered by suppliers might influence service quality satisfaction. To examine possible interactions, a mail survey of 500 .small UK manufacturing firms was undertaken to determine perceptions of services provided by accountants. The survey tool used two new scales developed specifically to measure requirements and perceptions of relationship marketing style. Service quality satisfaction was rneasured in relation to overall expectations versus perceptions, reliability, responsiveness, assurance, empathy and tangibility. Applying ANOVA to the responsiveness from 141 firms suggests that service quality satisfaction will be highest where there is convergence between the marketing style required of a supplier and a customer's perception of the style exhibited by the supplier: The implications of these findings in relation to the need for further research are discussed.     

The organisational learning system within small UK manufacturing firms

Organisational learning is increasingly being mentioned in the literature as a mechanism for assisting the market performance of small firms. There exists, however, limited empirical evidence on the learning systems utilised to manage the process. A survey was undertaken to acquire data on whether a relationship exists between learning style and the nature of learning systems used by small UK manufacturing firms. The results suggest that as firms move from single towards double-loop learning this is accompanied by the adoption of a more formalised learning system inside the organisation. The implications of these finding are discussed and proposals presented on the needs for further research.     

Environmental management in Devon and Cornwall's small and medium sized enterprise sector

This paper suggests that environmental impacts can be reduced in the SME sector through more detailed, less generic model developments for each industrial sector based on best practices and not on strategic management systems. It also suggests simplification of environmental support organisations and advocates the development of the concept of Energy Performance Contracting to Environmental Performance Contracting. There are undoubtedly many ways in which SMEs can improve their environmental performance but it is questionable that within the present economic system environmental sustainability will ever be achieved. Increased environmental regulation would certainly level the playing field but would not change the fundamental attitudes towards the environment as a generator of maximum wealth for the sole purpose of short term consumption. Self regulation is certainly the ultimate goal, where individuals and businesses recognise and respect the environment on more of an holistic level and where other individual utilities are gained from work aside from financial gain. The argument is that this radical (used here in its true sense to mean from the root) change of economic priorities could be achieved through a fair trading system run on a bioregional level. However at the moment self regulation within the present economic system seems ineffective as the environment is simply not a priority for SMEs. Small scale environmental improvements may occur but results from this research suggest that commitment to the environment on a practical rather than theoretical level needs to exist for substantial change to take place. This commitment is unlikely to increase substantially within an economic system that does not attach higher value to the environment. The attainment of environmental sustainability would require a fresh analysis of the economic system and our own individual consciousness.     

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 Influence of Alternative Marketing Styles on Internal Competences in Small Manufacturing Firms: the Results of a UK Investigation

Increasingly firms are being encouraged to move away from traditional, transactional marketing and instead adopt a relationship marketing orientation. Concurrently another emerging academic concept is entrepreneurial marketing. Interest in this latter area has, in part, been stimulated by research on marketing processes within the SME sector. It is proposed that the merger of relationship and entrepreneurial marketing might result in 4 alternative marketing styles. To determine whether these styles exist, a mail survey of 300 small UK manufacturing firms was undertaken in the summer of 1996. The survey tool used the Covin/Slevin entrepreneurial measurement scale and a new scale developed specifically to measure relationship marketing style. Competence was measured by seeking managing directors' assessment of the current capability of their firm in the areas of positioning, innovation, H.R.M., employee productivity, quality and information management. Applying ANOVA to the responses from 104 firms suggests that respondent firms can be classified into 4 different marketing styles and that an orientation towards an entrepreneurial-transactional marketing style will generate the highest overall sales growth rate. Discriminant function analysis indicates that relationship orientated firms exhibit higher competences in areas such as the management of quality and the utilisation of information to enhance decision-making. The implications of these findings in relation to the future provision of support services to smaller firms are discussed, as is the need for further research.