Grahame Boocock

An experience sampling study of learning, affect, and the demands control support model.

The demands control support model (R. A. Karasek & T. Theorell, 1990) indicates that job control and social support enable workers to engage in problem solving. In turn, problem solving is thought to influence learning and well-being (e.g., anxious affect, activated pleasant affect). Two samples (N = 78, N = 106) provided data up to 4 times per day for up to 5 working days. The extent to which job control was used for problem solving was assessed by measuring the extent to which participants changed aspects of their work activities to solve problems. The extent to which social support was used to solve problems was assessed by measuring the extent to which participants discussed problems to solve problems. Learning mediated the relationship between changing aspects of work activities to solve problems and activated pleasant affect. Learning also mediated the relationship between discussing problems to solve problems and activated pleasant affect. The findings indicated that how individuals use control and support to respond to problem-solving demands is associated with organizational and individual phenomena, such as learning and affective well-being.

Measuring the Effectiveness of Credit Guarantee Schemes Evidence from Malaysia

Governments across the globe are increasingly utilizing credit guarantee schemes to support SMEs. This article fills a gap in the academic literature for developing countries by reviewing the effectiveness of the New Principal Guarantee Scheme (NPGS) offered by the Credit Guarantee Corporation (CGC) in Malaysia. Using a variety of research methods, the authors investigate whether the CGC has achieved its objectives of generating finance and economic additionality without placing its financial resources under undue strain or jeopardizing its relationships with participating financial institutions. It is almost impossible to establish ‘definitive’ measures of additionality yet our findings provide sufficient evidence to demonstrate that the CGC is not meeting all of its objectives. The authors put forward an integrated package of measures designed to enhance the effectiveness of the NPGS.

Investment in management training and development by small businesses

The topic of management training and development (MTD) in small businesses is relatively under‐researched, and an increased understanding of the factors influencing the purchase of MTD by small businesses is needed. Therefore, a survey of 551 small businesses in the Midlands region of the UK sought to: identify influences on MTD investment and preferred MTD activities; and establish whether small businesses perceive a link between investment in MTD and business success. Interviews were also conducted with 12 organisations. Results show that the organisational characteristics of ownership, size, number of managers and family management have a significant influence on MTD investment. Of the sample organisations, 85 per cent considered investment in MTD to be linked to business success and 80 per cent of organisations engaged in some form of MTD. However, promoters of MTD to small businesses need to recognise that organisations in this sector are not homogeneous and desire customised training.

The evaluation criteria used by venture capitalists: evidence from a UK venture fund

GRAHAM BOOCOCK AND MARGARET WOODS are Lecturers in Banking and Finance, and Financial Management, respectively, at Loughborough University Business School, England. The paper examines how venture fund managers select their investee companies, by exploring the evaluation criteria and the decision-making process adopted at one United Kingdom regional venture fund (henceforth referred to as the Fund). The analysis confirms that relatively consistent evaluation criteria are applied across the industry and corroborates previous models which suggest that the venture capitalists decision-making consists of several stages. With the benefit of access to the Funds internal records, however, this paper adds to the current literature by differentiating the evaluation criteria used at each successive stage of the decision-making process. The paper presents a model of the Funds activities which demonstrates that the relative importance attached to the evaluation criteria changes as applications are systematically processed. Proposals have to satsfy different criteria at each stage of the decision-making process before they receive funding. In the vast majority of cases, applications are rejected by the fund managers. In addition, the length of time taken by the fund managers in appraising propositions can lead to withdrawal of applications at an advanced stage.

IIP and SMEs: awareness, benefits and barriers

This paper considers the impact of the Investors in People (IIP) Standard upon small‐ to medium‐sized enterprises (SMEs) in the Midlands. The paper describes IIP, then considers the significance of SMEs and the impact of training and development in that sector. The paper then presents an analytical framework, firmly rooted in a literature review, that provides the basis for an examination of the reasons why SMEs might commit (or fail to commit) to IIP, the difficulties encountered and the benefits received. Our empirical findings are discussed in the context of this framework. These findings are based on questionnaire responses from almost 600 SMEs, and interviews with promoters of IIP. Some key responses are broken down according to size‐band and/or growth‐orientation. In addition, follow‐up interviews were conducted with selected firms, ranging from IIP enthusiasts to rejecters. This study therefore combines quantitative data with qualitative input. The attitudes and experiences of the respondents offer fresh insight into the appropriateness of IIP as an organisational development tool for the SME sector. The SME support network in England and Wales is undergoing a critical transition. The role of the Training and Enterprise Councils in promoting IIP to SMEs also comes under scrutiny, and our study has lessons for the promotion of IIP by the new learning and skills councils.

The System of Support for SMEs in the UK and Germany

Compares the role of the recently established Training and Enterprise Councils (TECs) with that of the relevant German institutions of support for small and medium‐sized enterprises (SMEs). Examines the adequacy of each as a means of supporting SMEs in the context of overall SME policy. In the summer of 1992 the authors conducted a survey of the TECs in England and an in‐depth investigation of a management consultancy scheme at a particular TEC. The results from this work, along with other research into comparable German schemes, provided an invaluable source of information with which to evaluate the coherence of SME support. Certain problems were found with TEC schemes which were partially attributable to their infancy. The German case offers important lessons but should not be used as an exemplary model for the UK.

An investigation into the learning needs of managers in internationalising small and medium‐sized enterprises

This paper is concerned with the learning needs of managers in SMEs that seek to become progressively international. A particular focus of attention is the informal learning practices that occur within the economic and social networks utilised by managers in this sector. Using both qualitative and quantitative approaches to data collection, the paper investigates the challenges perceived by managers engaged (or seeking to engage) in international activity. The results suggest three main areas of challenge: first, the early “pre‐internationalisation” stage, when decisions about “whether”, “where” or “how” to internationalise are taken; secondly, the development of longer‐term planning processes and business systems to cope with the consequences of the initial internationalisation decision; thirdly, the challenge of regulatory issues and the need to secure payment and manage foreign intermediaries. Further areas of learning need, which depend on the significance of international business for the firm, are also indicated. Existing structures, cultures and approaches to management can be maintained for many SMEs that undertake some limited international activity. Where international business is a more important factor, however, managers need to develop cultural appreciation and empathy to underpin their expertise and consolidate their market position. Indeed, sustained international development may require a significant reorienting of the business, underpinned by management and organisational learning to develop an appropriate international “mind‐set” that supports the effective development of relationships with stakeholders in different countries.

Technology-Based Entrepreneurship Education: Meeting Educational and Business Objectives:

The UK governments ‘Third Mission’ for Higher Education (2000) encourages universities to teach entrepreneurship to ‘STEM’ students (those studying science, technology, engineering and mathematics), in part to support the technology transfer agenda. Technology-based entrepreneurship education (TEE) incorporates the key elements of entrepreneurship education (EE), concentrating on the creation of economic value from technological change. In this paper, the key challenges associated with EE and TEE are outlined, and the authors propose that the way to meet these challenges is through a systematic process that takes a technology from an initial idea in the laboratory to full commercialization as a high-growth firm. The ‘Technology Entrepreneurship and Commercialization Algorithm’ developed at North Carolina State University (NCSU) offers such a framework for multidisciplinary teams. The paper describes why and how the Algorithm was adapted for use at Loughborough University (LU). The focus is on the educational and business objectives of the programme and the extent to which those objectives have been achieved. The paper thus makes a contribution to the TEE literature by spelling out specific challenges, discussing a potential solution to these challenges and thereby adding to our understanding of the linkages between education, innovation and entrepreneurship.

Using capital theory to explore problem solving and innovation in small firms

Purpose – The purpose of this paper is to investigate how small firms work at a micro-level, applying Bourdieu’s Capital Theory to give insight into the way individuals use the social and cultural capital at their disposal, to innovate and solve problems. Design/methodology/approach – The authors applied qualitative methods to explore problem solving and innovation activities at the micro-level in small firms, using interviews and thematic analysis. Findings – The findings reveal that, compared to firms with lower levels of social and cultural capital, firms which possess higher levels of social and cultural capital have a higher success rate in problem solving and are more likely to engage in innovative activity. Social and cultural capitals complement and reinforce one another in small firms, for example an enhanced ability to utilise networks (social capital) allows small firms to access a greater diversity of knowledge (cultural capital). Originality/value – Little is known about how different forms o...

International business and UK SMEs: rationale, routes, readiness, role of government support, and reflections

International business activity is increasingly prominent, even among the smallest and newest organizations. This paper explores, from the SME perspective, five elements (the 5Rs) associated with their international activity. The characteristics of firms within the diverse SME sector imply that they would have different rationales for entering overseas markets, different views on government support and so on. While firm size does influence decision making in a minority of areas, international intensity (the percentage of exports within total sales) is usually the key factor in understanding the internationalization process. These findings should be valuable to policy makers, practitioners and academics.