David Crick

“Successful” internationalising UK family and non‐family‐owned firms: a comparative study

Purpose – The purpose of this research is to investigate differences in the perceived performance and competitiveness of “successful” family and non‐family‐owned firms in overseas markets.Design/methodology/approach – This paper reports on findings from a postal survey and subsequent interviews involving managers of firms that are winners of the UK Queens Award for Export.Findings – Statistical analysis and follow‐up interviews establish that limited differences exist between high performing family and non‐family‐owned SMEs in respect of measures and sources of performance.Research limitations/implications – The data were based on a sample of firms judged to have been successful and therefore the usefulness of the sampling frame is questionable based on the criteria of the awards committee.Practical implications – The findings indicate that small family‐owned businesses can be just as competitive in overseas markets as their non family‐owned counterparts, assuming that an effective strategy is employed....

The internationalization strategies of rapidly internationalizing high-tech UK SMEs: Planned and unplanned activities

Purpose – The purpose of this paper is to investigate aspects of causation and effectuation decision-making in respect of the planned and unplanned nature of the internationalization strategies of a small sample of rapidly internationalizing, high-tech UK small and medium enterprises (SMEs). These exhibit four different rates of scale of international intensity (percentage of overseas sales to total sales) and market scope (geographical coverage and commitment). Design/methodology/approach – Interviews with managers of 16 independently owned high-technology-oriented manufacturing SMEs were undertaken in this investigation to reduce the potential effect of bias from parental decision-making and firm size, also trade sectoral conditions. These were drawn from an existing database. Findings – Aspects of both causation and effectuation logic were evident in planned and unplanned aspects of decision-making. Moreover, industry factors were seen to affect internationalization strategies in various ways and not l...

Service and service-intensive New Zealand internationalising SMEs: Managers’ perceptions of government assistance

Purpose – The purpose of this paper is to report on service and service-intensive New Zealand-based internationalising firms in respect of their managers’ perceptions towards the usefulness of government assistance. Design/methodology/approach – Interviews were undertaken with the key decision makers in 66 service and service-intensive firms. Findings – Positive perceptions were found relating to government support at a macro-level; for example, Ministerial visits that open opportunities for managers in overseas markets. This was found to enhance micro-level support, such as individual assistance programmes. Originality/value – The contribution is at the public/private sector interaction within the international marketing literature; the area of originality involves the consideration of support at the macro, as opposed to micro-level, as this is an issue that has not received a great deal of coverage in earlier studies. A contextual aspect of originality relates to the study being undertaken with service ...

The first export order: a marketing innovation revisited

This study reports on an investigation into what lies behind a firms first export order and revisits the questions posed in the classic article by Simmonds and Smith [(1968). British Journal of Marketing, 2, 93–100]. It concentrates on risk/reward considerations in decision-making. Interviews were undertaken with owner/managers who were the key decision-makers in 10 newly internationalising UK start-up firms, that is, in their first year of operation, in order to avoid recollections in respect of hindsight. The findings highlight that a variety of factors can affect the decision of owner/managers in small firms to start their internationalisation path. Decisions are made in the context of perceived risk/reward considerations regarding exploiting various opportunities; for example, what are considered to be affordable losses against respective owner/managers objectives and experience. The contribution of the study is that it employs an effectuation lens in respect of the first export decision.

Learning and decision making in marketing planning: a study of New Zealand vineyards

Purpose – The purpose of this paper is to investigate how decision making and learning are related to marketing planning among owner/managers with lifestyle in comparison to growth-oriented objectives in the New Zealand wine industry. Design/methodology/approach – The study reports on 12 interviews with owner/managers of New Zealand vineyards. The vineyards were small to medium sized and independently owned to avoid bias from parent company decision making within larger scale corporate wine producers. Findings – Different degrees of causation and effectuation-based decision making were found to exist among owner/managers starting from the nascent stage in their respective marketing planning processes. Learning to different degrees was evident in order to remain competitive in a climate of uncertainty and not least of which due to problematic exchange rates. An important issue influencing decision making was whether owner/managers were running the vineyard to maintain a lifestyle or a growth strategy; an i...

Coopetition at the sports marketing/entrepreneurship interface: A case study of a Taekwondo organisation

Purpose – The purpose of this paper is to help develop the understanding of the nature of coopetition (collaboration as well as competition) and is set in the context of a Taekwondo organisation. Design/methodology/approach – Interviews were undertaken with 25 instructors in various clubs within New Zealand’s “International Taekwondo” (ITKD) together with 25 students and supplemented with triangulation against secondary data such as websites and media reports. Findings – The findings suggest that coopetition can be seen from various perspectives in order that the organisation as a whole benefits. Specifically, while the ITKD is a not-for-profit firm, individual clubs may compete for revenue from students joining them as opposed to rival clubs. However, clubs collaborate in various way such as once registered, students can train free at rival clubs and resources are to some extent pooled so the ITKD as a whole benefits, e.g. sending competitors overseas and bringing in senior people to undertake a promotio...

An appreciative inquiry into the first export order

Purpose – This study aims to report on an investigation into decision-making leading to a UK firm’s first export order. It demonstrates the application of appreciative inquiry (AI) as an underutilised research method in marketing investigations. Design/methodology/approach – An AI research approach was undertaken in a firm that had not started exporting at the commencement of the study whereby the interventionist approach allowed the management team to overcome negative perceptions in their decision-making. From a research perspective, marketing decision-making could be understood in real time as opposed to in hindsight. Findings – While the key decision-maker is likely to be the owner/manager in small newly internationalising firms, a variety of factors will affect the decision to start exporting including the influence of the management team. In particular, the management team’s perceptions towards a combination of effectuation- and causation-based decision-making where risk/reward considerations in exp...

Angel investors' predictive and control funding criteria: the importance of evolving business models

This study aims to investigate the question involving what factors affect angel investors’ decision-making in funding new start-ups with specific reference to their evolving business models. Without funding and access to networks and experience, certain entrepreneurs will not get their business model through the start-up phase.,Data arise from 20 semi-structured interviews with angel investors in New Zealand plus supplementary interviews with business incubator managers and textual data.,The findings suggest a degree of causation-based decision-making, in that certain linear thinking was evident. The implication is that, without the ability of the entrepreneurs to convince the investors about key criteria in their decision-making, investment is unlikely. Nevertheless, a degree of effectuation-based decision-making was also evident, the implication being investors having to balance risk/reward decisions in the context of their own perceptions of affordable losses against an evolving business model. However, angel investors may take on co-investment, including from overseas, that takes decision-making away from management teams.,The study draws attention to the need to consider entrepreneurial ecosystems in angel investor’s decision-making and especially those with a small domestic market that may require management teams to look for scalability internationally. Furthermore, an effectuation lens contributes to knowledge in respect of predictive and control criteria, in particular, assessing risks and rewards against affordable losses involving an evolving business model.

Book Review: International growth of small and medium enterprises

Part 6 summarizes findings from each of the chapters and discusses the need for greater understanding of the links between SME owner motivations and performance. There are many good things to say about this book. First, each chapter is very well structured and aptly begins with guiding research questions and the significance of these in the context of the broader literature. Second, in examining each of the ‘myths’ central to the book, Watson avoids simply describing the numerous studies he has compiled over a 20-year period, but critiques the collective claims, summarizing as he goes along, pointing out inconsistencies where needed. Third, the book makes good use of the author’s own recent empirical work to question the prevailing wisdom around SME failure and performance; like the three case studies cited in Chapter 2 (in Part 2) on business success/failure, or the focus group research and survey described in Chapter 7 Part 4), where he examines how demand-side issues may be used to explain financial constraints (demand-side issues being largely neglected in research in favour of supply-side issues that can be addressed by policy-makers). Fourth, in relation to the previous point, I applaud the use of mixed methods. Too often studies on the subject tend to rely on cross-sectional surveys alone, which distinguish successful/growing firms from their less successful/non-growing counterparts. In agreement with the author, these studies seek to describe variables associated with performance rather than explain performance. I have but one cautionary note to apply to the conclusions drawn – particularly to the revelation that female-owned businesses are not being routinely discriminated against by banks – which may be misleading if taken to be generalizable. There are two reasons for this: first, much of the research cited that pointed to discrimination was carried out nearly 20 years ago, since when advances have been made to increase access to bank financing (e.g. to educate loan officers and to support aspiring female entrepreneurs) and attitudes towards women have become more progressive; a second, related point, is that while it is one thing to claim that female-owned businesses in developed countries (e.g. Australia, United Kingdom and United States where most studies were conducted) are not discriminated against, a similar finding might be less confidently reached in developing or emerging/transition economies, where financial institutions remain underdeveloped and/or attitudes towards women are less progressive. Therefore, it is also useful to consider the ways in which context and culture shape SME performance and the extent to which the myths Watson identifies are universal. Finally, I agree with all of Watson’s suggestions for future research, particularly the need to understand more about the motivations of SME owners and how they impact on performance. It seems absurd to focus all our efforts on, for instance, simply identifying those factors internal/ external to firms that may facilitate growth, and then measuring the impact of these factors, without also determining whether growth is both desirable and feasible for SME owners; if the motivation to grow is simply absent, then growth behaviour seems – well – rather unlikely also. A more complete picture of SME performance would be achieved by examining the cognitive factors at play, but also the emotional and social processes as well, as they too are likely to impact on behaviour. In short, this book is a must-read for all scholars, students, practitioners and policy-makers with an interest in entrepreneurship and SMEs.