Ian Stone

Life duration of foreign multinational subsidiaries: Evidence from UK northern manufacturing industry 1970–93

Abstract Duration analysis is employed to examine the survival of 252 foreign manufacturing plants in the UK Northern region during 1970–93. Contrary to expectations, the hazard function is approximately inverse quadratic rather than monotonic decreasing. Greenfield entrants face a lower risk of failure than acquisition entrants, particularly early in life. Acquisitions of older plants exhibit stronger survival than acquisitions of recently established plants, so that the age of (indigenous) acquired plant at the point of foreign takeover appears to matter to the survival of acquisition entrants. Plant size and industrial concentration also emerge as important. Home country of parent firm and location within region are unimportant. Consistent with the inverse U-shaped hazard function, the lognormal regression model provides a reasonably satisfactory fit to the data, certainly tighter than the Weibull model.

Enterprising expatriates: lifestyle migration and entrepreneurship in rural southern Europe

This paper focuses on the growing aspect of entrepreneurship associated with lifestyle-induced migration from wealthy countries, through investigating self-employment among expatriates from northern Europe in rural areas of southern France and Spain. Most expatriates had no prior experience of entrepreneurship and typically established their business opportunistically and some time after arrival. Based upon interviews with 41 expatriate households (operating 70 business ventures), the study explores the characteristics of the individuals involved, the nature of their businesses, factors influencing start-up, and processes and patterns of business development. Self-employment is shown to be the most effective available mechanism for supporting lifestyle objectives of expatriates who vary greatly in their skills, experience and resources. The study identifies significant differences between the respective groups from the two countries, reflecting the spatially differentiated character of migration in terms of age, education, qualifications and capital resources. These appear to have given rise to a more sophisticated profile of businesses in the French areas. Sharp differences in language skills as between the different countries are seen as influencing the ability of entrepreneurs to network with, and market to, the indigenous population, with implications for the future development of the businesses, and their local impact. The study seeks to augment standard conceptual approaches to entrepreneurship, through taking account of the primacy of the migration decision and specific related processes, and proposes a model that advances our understanding of the phenomenon.

Exploring the potential of high performance work systems in SMEs

Purpose – Aims to explore aspects of employee relations in firms included within The Sunday Times list of the UKs “Best Small Companies to Work For”, focusing in particular on the use of high performance work systems (HPWS), and the way they impact upon performance in these businesses.Design/methodology/approach – The research is based upon a postal survey supplemented by detailed face‐to‐face interviews with CEOs in 60 per cent of the ranked firms.Findings – The SMEs studied are found to be highly successful in terms of sales and employment growth. Our analysis suggests that the common explanation for enhanced business performance in terms of HPWS (coherent bundles of human resource management practices that function synergistically and thus have more effect than might be expected from the sum of the parts) is a valid but partial. The bundles employed in these businesses are synergetic, but the enhanced outcomes produced need to be understood in terms of the system as a whole, not just the more concrete...

An analysis of new firm survival using a hazard function

A unique data set is used to provide a detailed examination of the survival of newly established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macro-economic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

The Foreign-owned Manufacturing Sector in UK Peripheral Regions, 1978–1993: Restructuring and Comparative Performance

STONE I. and PECK F. (1996) The foreign-owned manufacturing sector in UK peripheral regions, 1978–1993: restructuring and comparative performance, Reg. Studies 30, 55–68. This paper presents an analysis of foreign direct investment (FDI) trends since the late 1970s in the four main peripheral regions of the UK. Using unpublished database sources, it analyses the changing significance of the foreign-owned manufacturing sector in Northern Ireland, Scotland, Wales and the North of England and the sectors performance in terms of number of plants and associated employment alongside that of the indigenous sector in each of the regions. It reveals distinct differences in performance between the regions. Through identifying the main components contributing to overall change, the study provides insights into this aspect of regional restructuring, specifically the importance to employment change of new plants relative to that of closures, acquisitions and in situ expansions and contractions. It also shows that the...

Gender, disadvantage and enterprise support - lessons from women´s business centers in North America and Europe

Gender, disadvantage and enterprise support - lessons from women´s business centers in North America and Europe

Credit-rationing and entrepreneurial experience: Evidence from a resource deficit context

This study explores the following novel research question: Do attributes relating to the resources and signals of lead entrepreneurs, particularly prior business ownership experience quality signals, reduce the probability that entrepreneurs will be chronic credit-rationed entrepreneurs in a developing economy context with resource deficiencies? Guided by insights from signalling, resource-based view of the firm and human capital theory, profiles of credit-rationed entrepreneurs (i.e. debt finance obtained but below the amount requested) are highlighted. The length of the debt finance gap was considered with regard to temporary (over one year), major (over two years) and chronic (over three years) finance gaps. We find support for our hypotheses relating to entrepreneurs whose firms are more innovative being more likely to be chronically credit-rationed, whilst firms with partners, entrepreneurs with longer prior business ownership experience and habitual entrepreneurs are less likely to be credit-rationed. The interaction with serial or portfolio entrepreneur reduces the chronic credit-rationing problem faced by innovative firms. A case for developing linkages between inexperienced novice entrepreneurs and habitual entrepreneurs, particularly successful portfolio entrepreneurs, is made. Notably, we suggest that building upon the experienced entrepreneurs who do exist may be particularly beneficial in resource deficit contexts such as Ghana

Loan guarantee schemes in the UK : the natural experiment of the enterprise finance guarantee and the 5 year rule.

ABSTRACT Loan guarantee schemes have existed since 1953 (in the US) and are widely used throughout the world to provide financial support to smaller firms by guaranteeing loans from commercial banks. The UK government has been an active supporter of loan guarantees since 1981, and has a long track record of modifying its scheme to reflect changing market conditions and the financing needs of its SME sector. Arguably the two most significant changes occurred in 2008 when the 5-Year Rule on eligibility was removed and in 2009 when the long-standing Small Firms Loan Guarantee Scheme was replaced by the Enterprise Finance Guarantee Scheme. We treat the removal of the 5-Year Rule as a natural policy experiment and empirically question whether, on economic grounds, this was a sensible policy. Our findings suggest that the 5-Year Rule was a better policy choice with regard to employment but had no impact on sales growth.

The impact of personal attitudes on the growth ambitions of small business owners

Purpose The purpose of this paper is to provide an empirical evidence in support of widespread calls for new approaches to understanding small business growth, by exploring the use of non-positivist methods (e.g. critical realism) to analyse how owners’ innate dispositions shape growth in practice. Design/methodology/approach In 2014, a telephone survey was used to inform two focus groups and 29 in-depth interviews with small business owners throughout England, covering attitudes towards growth, the use of particular strategies and perceived barriers. Discourse analysis was used to develop a multi-layered explanatory model incorporating key ideas from critical realism and the work of Bourdieu. Findings Bourdieusian analysis reveals the existence of orientations among small business owners towards or against business growth. Such attitudes tend to impact upon their response to perceived barriers. Growth-inclined owners were willing to strategise for long-term benefit, in return for lower returns in the short term. Growth-resistant owners were more likely to view obstacles as absolute, stating that they cannot grow their firms as a result. Practical implications Removing or reducing obstacles may not encourage growth if motivations and attitudes of owners do not change to embrace more growth-oriented positions. Banks’ lending practices, for example, were seen by many as problematic, but growth-oriented owners were more willing to seek and use alternatives to raise funds for growth. Originality/value The authors suggest that entrepreneurship researchers should look beyond positivist research to epistemologies that provide more multi-layered modes of explanation.

Inward investment in North‐East England: impact on the market for skills and training

Abstract Against a background of inward investment into the region, the paper examines crucial issues relating to labour. It examines approaches to recruitment and the selection process. Skill shortages and strategies for overcoming the problem are analysed together with a consideration about management and managers. The paper concludes with a detailed assessment of policies relating to training.