Allan Macpherson

Using Knowledge within Small and Medium-Sized Firms: A Systematic Review of the Evidence

This paper provides a systematic review of the literature on how small and medium-sized enterprises (SMEs) use and acquire knowledge. The review was undertaken as part of the Economic and Social Research Councils Evolution of Business Knowledge Programme. The paper describes the systematic review protocol and provides a detailed explanation of the methods used. From the review, it is evident that SME knowledge research concentrates primarily on the acquisition and use of knowledge, treating it as an asset that is transferred by routines. The findings suggest that research is focused in three main areas. First, on the influence and abilities of the entrepreneur to extract, use and develop knowledge resources. Secondly, on firm-wide systems and the social capital that facilitates knowledge exploration and exploitation. Thirdly, on the provision of knowledge and learning experiences through government policy. From a practical perspective, the review concludes that policies encouraging entrepreneurship and economic regeneration need to be more flexible and sensitive to the often complex contexts within which knowledge is used by SMEs. From a research perspective, and given the flexible, opportunity-oriented and often novel nature of SMEs identified in these studies, there is a need to consider the relational and embedded qualities of knowledge by which these characteristics are framed; qualities that resist conceptualization as some form of separable, material asset.

Conceptualizing the Learning Process in SMEs Improving Innovation through External Orientation

Most attempts to model the process of organizational learning (OL) are based on large organizations. This article represents an attempt to better understand the unique learning processes in small and medium-sized enterprises (SMEs). Such firms are generally limited in both their managerial capabilities and mechanisms for accessing knowledge from external sources. Data were obtained as part of an ongoing Economic and Social Research Council (ESRC) project concerned with the evolution of business knowledge in small firms operating in the North West of England. A conceptual framework was developed and used as the basis for analysing data obtained from interviews with 26 owner-managers. Our findings indicate two distinct groups, which we term innovative and stable firms. Owner-managers in ‘stable’ firms were inward facing, and learning was generally experiential and concentrated on single individuals or small groups. In contrast, owner-managers in innovative firms were outward facing and encouraged the development of ‘deeper and wider’ learning.

Sensemaking, rhetoric and the socially competent entrepreneur.

A significant barrier to creating and sustaining firms are the difficulties experienced in continually legitimating their institutional structures. This is especially the case for small firms; entrepreneurs struggle to create and sustain often novel ideas and nascent firm structures set within, or against, well-established market environments. To better understand connections between organization formation and legitimacy of small firms we use accounts from three entrepreneurs. We break down their accounts using Aristotle’s concept of rhetoric. By attending to what Aristotle identified as the three areas of concern for rhetorical method (logos, ethos and pathos) to analyse the entrepreneurs’ sensemaking, we show their awareness of the negotiated, situated and social nature of their enterprises. Our findings expand on existing concepts such as Lounsbury and Glynn’s (2001) ‘cultural entrepreneurship’, by demonstrating how collaborative sensemaking might be practised and how social competence and an awareness of others’ needs, wishes, ambitions and objectives are central to the foundation and potential success of small firms.

Training commitment and performance in manufacturing SMEs: Incidence, intensity and approaches

– This study sets out to examine management development activities within manufacturing SMEs, and their impact on performance. Unlike previous published studies that concentrate on formal training, this empirical analysis includes both formal and informal training. Performance is measured in terms of turnover, employee growth, and survival. It also includes consideration of the firms context on both training approach and performance., – Survey responses from 198 manufacturing SMEs in the UK are analysed using descriptive statistics, multiple regression analysis, and ANOVA., – Findings indicate that formal training is likely to be a targeted activity that contributes more significantly to performance than informal training. Also, the approach and influence of training are dependent on contingent factors. A model is proposed for a further detailed study of these contingent factors using a multivariate statistical analysis., – For SME managers, while they may prefer informal training approaches, they would benefit from seeking a formal training intervention that directly addresses their specific needs. For business support policy, support options need to be flexible enough to provide idiosyncratic solutions. Generic training solutions are not welcomed by SMEs, and are unlikely to provide significant performance benefits. A greater understanding is required of the variety of contingent variables that moderates the relationship between choices of training approach, and between training and performance.

Learning in owner-managed small firms: Mediating artefacts and strategic space

The authors focus on the way in which owner-managers in smaller firms improve their businesses through the creation of ‘strategic space’. The term ‘strategic space’ refers to the process by which owner-managers are able to access resources, motivation and capability to review existing practices. The starting point is the owner-managers human capital and their capacity to engage in critical reflection about their business. We highlight three concepts central to the creation of strategic space, first, social capital, which refers to the network relationships that provide access to a wide range of resources and information. Second, absorptive capacity, which describes the way in which organizational members identify, acquire and utilize knowledge from external sources. Third, mediating artefacts, which represent existing knowledge but also facilitate the translation and transformation of understanding within and between communities of practice. This process is essential to the renewal of knowledge and knowing within firms. The contribution this paper makes is to bring together these elements – human and social capital, absorptive capacity and mediating artefacts – to offer a conceptual model that illustrates the mechanism by which owner-managers create strategic space. This model provides a deeper understanding of the evolution of knowledge in smaller organizations.

The Implementation and Use of E-Learning in the Corporate University

Purpose – The use of e‐learning in corporate universities enables access and broadens the curriculum. This paper assesses the use and implementation of e‐learning through case material, and explores some of the challenges and emerging concerns.Design/methodology/approach – The paper reviews the corporate university concept and considers how an e‐learning pedagogy might contribute to its success. Three case reviews of e‐learning adoption within corporate universities in the UK are included.Findings – The paper argues that if corporate universities do not incorporate both the pedagogical and learner preferences perspectives into their use of e‐learning, this will seriously devalue the training experience. It concludes that the advantages of an online pedagogy are not fully exploited due to limitations in technology and other strategic priorities. In addition, a number of lessons have been learned by the pioneers of corporate e‐learning, including the evolutionary nature of the programmes and the need to cre...

Policy and Practice: Recursive Learning From Crisis

Data from the 2007 U.K. floods are examined using institutional theory and practice theory lenses. We note that learning from crisis ultimately results in “lessons learned” being institutionalized in new norms, tools, and infrastructure. As the basis of legitimate action for coping in the future, they may provide a measure of resilience, but crisis management and recovery is an active and emergent process. Learning must also identify the ability to create resilience by developing the capacity and ability to be creative when such “lessons learned” prove inappropriate in an emerging scenario. This has implications for policy learning processes that may be difficult to justify since public inquiries are also institutionalized events that require “legitimate” recommendations to codify learning.

Enhancing SMEs’ capability: opportunities in supply chain relationships?

Studies of entrepreneurial learning have shown a preference for learning from the business context and business relationships. Within this business context, larger organisations are focusing on their supply chains as a significant source of strategic advantage, impacting on the competences required by SMEs to meet expectations. Uses a supply chain competence map to investigate the level to which 39 manufacturing SMEs demonstrate the competences expected by suppliers. The research sample showed a high degree of external and supply chain orientation. Highlight the fact that, given the right support and a willingness to engage with the external business environment, supply chains offer an alternative development opportunity for SMEs. Moreover, it is a learning model that suits their preferred learning style. What is not clear is whether the customer organisations are willing, or able, to support that learning.

Entrepreneurial potential: The role of human and cultural capitals

Empirical evidence for links between human capital and entrepreneurship potential is equivocal despite a wide range of studies. This research draws on prospective longitudinal data from the National Child Development Study (NCDS) to offer new theoretical perspectives and empirical evidence on the human capital predictors that drive entrepreneurship. The results suggest that start-up is more likely for those who demonstrate higher levels of analytical and creative abilities in childhood, benefit from a supportive family background, invest in their human capital through diverse and longer work experience and have accrued a solid basic education, albeit not strongly credentialed. This article contributes to a better understanding of human capital acquisition during the unfolding entrepreneurial life-course. Mediators and moderators of the relationship between education, human capital and entrepreneurship are also identified by accentuating the importance of family processes. In doing so, this study bridges the human capital and cultural capital literatures that have tended to evolve on separate tracks.

Object-mediated Learning and Strategic Renewal in a Mature Organization

Knowledge transformation between practice-based communities is reported through a 2-year longitudinal case study. The company, PresMed, was transformed from a moribund and divided organization to one where different practice-based communities engaged in collective learning. However, the transformation involved conflict, politics and power to overcome the influence of localized and embedded knowledge. The nature of practice-based learning means investment in past activities and different organizational communities create tensions. It is suggested that mediating artefacts, or boundary objects, provide an opportunity to develop new shared conceptions of activity and new modes of action. However, at the heart of this transformation, communication, politics and power are central to pragmatic engagement in new practices. Thus, it is the social activities and the political will and skill to influence, cajole and institutionalize systemic changes and not the artefacts or objects per se that are at the heart of knowledge transformation.