Small firm growth

We review and discuss the literature on small firm growth with an intention to provide a useful vantage point for new research studies regarding this important phenomenon. We first discuss conceptual and methodological issues that represent critical choices for those who research growth and which make it challenging to compare results from previous studies. The substantial review of past research is organized into four sections representing two smaller and two larger literatures. The first of the latter focuses on internal and external drivers of small firm growth. Here we find that much has been learnt and that many valuable generalizations can be made. However, we also conclude that more research of the same kind is unlikely to yield much. While interactive and non-linear effects may be worth pursuing it is unlikely that any new and important growth drivers or strong, linear main effects would be found. The second large literature deals with organizational life-cycles or stages of development. While deservedly criticized for unwarranted determinism and weak empirics this type of approach addresses problems of high practical and also theoretical relevance, and should not be shunned by researchers. We argue that with a change in the fundamental assumptions and improved empirical design, research on the organizational and managerial consequences of growth is an important line of inquiry. With this, we overlap with one of the smaller literatures, namely studies focusing on the effects of growth. We argue that studies too often assume that growth equals success. We advocate instead the use of growth as an intermediary variable that influences more fundamental goals in ways that should be carefully examined rather than assumed. The second small literature distinguishes between different modes or forms of growth, including, e.g., organic vs. acquisition-based growth, and international expansion. We note that modes of growth is an important topic that has been under studied in the growth literature, whereas in other branches of research aspects of it may have been studied intensely, but not primarily from a growth perspective. In the final section we elaborate on ways forward for research on small firm growth. We point at rich opportunities for researchers who look beyond drivers of growth, where growth is viewed as a homogenous phenomenon assumed to unambiguously reflect success, and instead focus on growth as a process and a multi-dimensional phenomenon, as well as on how growth relates to more fundamental outcomes.

Empowerment and role stress in the human interface between the firm and its markets

Frontline employees constitute one of the key interfaces that service organisations have with their markets. Many strategies to enhance the ability of these employees to satisfy the needs of customers have been proposed. Amongst these, empowering employees has been suggested to enhance the customer orientation of the firm and consequently its effectiveness in serving the market. However, the impact of empowerment in service organisations remains somewhat contentious. This paper examines the role of empowerments an organisational service strategy and identifies its consequences for role stress, job satisfaction and the willingness of service employees to serve their customers.

Avoiding full extension field arithmetic in pairing computations

The most costly operations encountered in pairing computations are those that take place in the full extension field Fpk . At high levels of security, the complexity of operations in Fpk dominates the complexity of the operations that occur in the lower degree subfields. Consequently, full extension field operations have the greatest effect on the runtime of Miller’s algorithm. Many recent optimizations in the literature have focussed on improving the overall operation count by presenting new explicit formulas that reduce the number of subfield operations encountered throughout an iteration of Miller’s algorithm. Unfortunately, almost all of these improvements tend to suffer for larger embedding degrees where the expensive extension field operations far outweigh the operations in the smaller subfields. In this paper, we propose a new way of carrying out Miller’s algorithm that involves new explicit formulas which reduce the number of full extension field operations that occur in an iteration of the Miller loop, resulting in significant speed ups in most practical situations of between 5 and 30 percent.

Didiman: Australian agricultural extension officers in the territory of Papua and New Guinea, 1945-1975

Historically, the development philosophy for the two Territories of Papua and New Guinea (known as TPNG, formerly two territories, Papua and New Guinea) was equated with economic development, with a focus on agricultural development. To achieve the modification or complete change in indigenous farming systems the Australian Government’s Department of External Territories adopted and utilised a programme based on agricultural extension. Prior to World War II, under Australian administration, the economic development of these two territories, as in many colonies of the time, was based on the institution of the plantation. Little was initiated in agriculture development for indigenous people. This changed after World War II to a rationale based on the promotion and advancement of primary industry, but also came to include indigenous farmers. To develop agriculture within a colony it was thought that a modification to, or in some cases the complete transformation of, existing farming systems was necessary to improve the material welfare of the population. It was also seen to be a guarantee for the future national interest of the sovereign state after independence was granted. The Didiman and Didimisis became the frontline, field operatives of this theoretical model of development. This thesis examines the Didiman’s field operations, the structural organisation of agricultural administration and the application of policy in the two territories.

Network structure, knowledge governance, and firm performance : evidence from innovation networks and SMEs in the UK

It is increasingly understood that learning and thus innovation often occurs via highly interactive, iterative, network-based processes. Simultaneously, economic development policy is increasingly focused on small and medium-sized enterprises (SMEs) as a means of generating growth, creating a clear research issue in terms of the roles and interactions of government policy, universities, and other sources of knowledge, SMEs, and the creation and dissemination of innovation. This paper analyses the contribution of a range of actors in an SME innovation creation and dissemination framework, reviewing the role of various institutions therein, exploring the contribution of cross-locality networks, and identifying the mechanisms required to operationalise such a framework. Bivariate and multivariate (regression) techniques are employed to investigate both innovation and growth outcomes in relation to these structures; data are derived from the survey responses of over 450 SMEs in the UK. Results are complex and dependent upon the nature of institutions involved, the type of knowledge sought, and the spatial level of the linkages in place but overall highlight the value of cross-locality networks, network governance structures, and certain spillover effects from universities. In general, we find less support for the factors predicting SME growth outcomes than is the case for innovation. Finally, we outline an agenda for further research in the area.

“Entrepreneurial management” as a strategic choice in firm behavior : linking it with performance

Establishing the core principals of “entrepreneurial management” within an organization describes a certain strategic choice that affects a company in six dimensions, according to Stevenson (1983). Our aim is to empirically measure entrepreneurial management (it’s existence and degree) and to link this measured strategic choice (for or against) entrepreneurial management with firm performance. Our argument here is that companies that follow core principals of entrepreneurial management should outperform other more administrative firms in certain measures of strategic performance. This paper builds on an empirical investigation published by Brown, Davidson & Wiklund (2001), who have developed and tested a reliable measurement instrument for Stevenson’s definition of “entrepreneurial management” (Stevenson 1983, Stevenson & Jarillo 1990). In the first part of our paper we aim to replicate and to some extent improve this study. In the second part we link the measured degree of “entrepreneurial management” with firm performance. To our knowledge, even so Stevenson’s definition of entrepreneurial management is commonly acknowledged and Brown et al. (2001) developed a reliable instrument to empirically capture this behavioral approach to management, the construct of entrepreneurial management never before has been linked to firm performance in an empirical study. Since most papers on corporate entrepreneurship and firm performance are based on Covin & Slevin’s (1991) or Miller’s (1983) concept of entrepreneurial orientation, we contribute to the literature on corporate entrepreneurship in a novel way, given the fact that the entrepreneurial management dimensions measured in our study can theoretically and empirically be clearly distinguished from the construct of entrepreneurial orientation as defined by Covin & Selvin (1991).

Providing a better work environment for competitive advantage – conceptual considerations linking commitment and firm-specific human resources

Managing for uncertain futures is a major concern in the area of strategic management with environmental stability fading and increasing global impacts on local decisions. One critical resource that has attained special interest lies in talented and qualified employees. It is a challenge to motivate such employees to invest in firm-specific assets that may form a valuable basis for competitive advantage. Short term contracts and a lack of care for employees make it hard to establish a committed workforce. The aim of the paper is the elaboration of a conceptual framework showing the links and contributing to a better understanding of how the alignment of interests of employees and firms maybe a valuable contribution to the understanding of competitive advantage.

Entrepreneurial bricolage and firm performance : moderating effects of firm change and innovativeness

The behavioral theory of “entrepreneurial bricolage” attempts to understand what entrepreneurs do when faced with resource constraints. Prior research suggests that bricolage behaviors enable firms to “make do” through recombining existing resources and may assist in the development of firms that are better able to manage market uncertainties, survive and perhaps even flourish despite resource constraints. Using a new survey measure we further theorize and test the moderating effects of firm strategic change and innovativeness on bricolage and firm performance. Our findings suggest that changes in core elements of the business and degree of innovation reduce the positive effects of bricolage in young firm performance.

A first extension of geometric control theory to underwater vehicles

This paper serves as a first study on the implementation of control strategies developed using a kinematic reduction onto test bed autonomous underwater vehicles (AUVs). The equations of motion are presented in the framework of differential geometry, including external dissipative forces, as a forced affine connection control system. We show that the hydrodynamic drag forces can be included in the affine connection, resulting in an affine connection control system. The definitions of kinematic reduction and decoupling vector field are thus extended from the ideal fluid scenario. Control strategies are computed using this new extension and are reformulated for implementation onto a test-bed AUV. We compare these geometrically computed controls to time and energy optimal controls for the same trajectory which are computed using a previously developed algorithm. Through this comparison we are able to validate our theoretical results based on the experiments conducted using the time and energy efficient strategies.

Resource constraints in innovation : the role of bricolage in new venture creation and firm development

The emerging theory of ‘bricolage’ as a resource behaviour represents an attempt to address the central entrepreneurship research problem of making systematic sense of entrepreneurs that sometimes manage to create significant new economic activity under what appears to be severe resource constraints (Baker & Nelson 2005). However, despite growing interest in bricolage there is little large scale empirical evidence about the effectiveness and outcomes of using bricolage processes while developing innovative outcomes in nascent and young firms. In this research we test bricolage using different forms of innovation using data from the Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE) project. Our results indicate overall positive results of bricolage with all forms of innovativeness. A discussion of the results and recommended future research is provided.