IP Publishing Ltd
FEBRUARY 2010 ISSUE (VOL 11, NO 1)
19 Organizational innovation promoters and performance effects in small, knowledge- intensive firms
29 Cognitive maps in early entrepreneurship stages: from motivation to implementation
45 Rural small businesses in turbulent times: impacts of the economic downturn
57 Taking over the reins: the needs of individuals who purchase small established enterprises
89 Internet review: Buying a small firm
91 Book reviews:
Abstract: This paper investigates the efficacy of an integrated model, consisting of the theory of planned behaviour and goal orientation, in predicting innovation adoption behaviour. The model was used to predict innovation adoption behaviours using a sample of 80 egg farmers. The results showed that most of the hypothesized relationships within the theory of planned behaviour were supported. In particular, attitudes and subjective norms were significant predictors of intentions, which subsequently predicted innovation adoption behaviour. Furthermore, learning goal orientation was a significant positive predictor of intentions and innovation adoption, and this relationship was partially mediated by attitudes.
Title: Organizational innovation promoters and performance effects in small, knowledge-intensive firms
Abstract: This paper investigates the impacts of organizational factors on innovation and performance in small, knowledge-intensive firms. The study focused on Norwegian firms with 5 to 30 employees. The findings indicate that differentiating between product, process and market innovation provides a better understanding of the factors that drive innovation. This strategy seems to influence innovation. For instance, low-cost strategy positively impacts on both process innovation and market innovation. Also, external relationships significantly influence innovation: for instance, market participation in a product development context has a significant influence on product development.
Title: Cognitive maps in early entrepreneurship stages: from motivation to implementation
Abstract: The purpose of this research is to contribute to the explanation of cognitive maps during early entrepreneurship stages. Three groups were selected to represent different developmental states in early entrepreneurship. Individual interviews were conducted, the data were computer content analysed and cognitive maps were extracted. The results show that entrepreneurship experience develops the structure of cognitive maps, increasing clarity, richness and experience-based features. The originality of the research resides in the inclusion of entrepreneurial motivation in business opportunity recognition and the decision to launch a venture model. Through a cross-sectional design, a temporal perspective is captured by including different entrepreneurship stages.
Title: Rural small businesses in turbulent times: impacts of the economic downturn
Abstract: This paper explores differences in behaviour and performance between rural and urban small firms during the economic downturn. The authors had anticipated that the ‘thinness’ of the rural environment would have had adverse effects. However, their survey of 6,300 respondents showed that rural small firms were performing marginally better. Both groups were proactively striving to cope with falling demand, not waiting for things to get better, but rural firms had better sales and fewer price reductions. The authors attribute this to local embeddedness, a more stable customer base and less competition. They note too the relative independence of rural businesses.
Title: Taking over the reins: the needs of individuals who purchase small established enterprises
Abstract: Although many small firms are purchased as going concerns, these businesses are rarely researched as a separate subgroup. Little is therefore known about (a) the skills and competences required to run these businesses; (b) the support and learning sources used by small business purchasers (SBPs); and (c) whether there is a need for additional training and support. This paper examines these issues through qualitative inter-views, held with a selected sample of SBPs. The findings show that, while the majority of owner-manager skills are developed through informal learning methods, there is also a need for support that focuses on effecting a smooth takeover, preserving the firm’s goodwill, maintaining trade levels and building satisfactory relationships with inherited employees.
Abstract: Technology enterprises contribute significantly to raising national competitiveness, productivity and efficiency. Previous research indicates that a key part of a technology strategy is the interaction of that strategy with the venture’s external environment. Exploratory, comparative and correlation and regression analysis were conducted to test hypothesized relationships. The sample was based on a previous conceptualization of early-stage technology enterprises (n = 165). No significant associations between strategies and the perceived environment were detected. The findings reveal that environmental dynamism and hostility affect the competitive strategic stance of only those firms that have been in existence for three to seven years and that have more than 50 employees.
Abstract: An entrepreneurial strategy has been identified as playing a key role in radical innovation due to the risk-taking nature of the entrepreneurial firm. However, less attention has been paid to the factors that are critical to the success of such innovations by small firms in which these occur. The Schumpeterian idea of visionary individuals who can both operate in the world of advanced engineering and take on a business role as part of a global industry still appears to be essential. This article focuses on the fate of one such individual, Geoffrey Ballard, who has played a pioneering role in developing and commercializing fuel cells for vehicle propulsion.
Title: Internet Review: Buying a small firm
Abstract: ‘Internet Review’ provides critical commentaries on Web-based information on entrepreneurship, small business and innovation.