Ian Vickers

UNDERSTANDING SMALL FIRM RESPONSES TO REGULATION

This article aims to contribute to our understanding of the varied responses of small and micro enterprises to regulation and their implications for regulatory policy, using statutory occupational health and safety requirements as an example. Particular emphasis is given to the relevance of an understanding of business responses to regulation that is informed by a wider range of evidence and perspectives than that which has tended to dominate recent policy developments around regulation. Evidence is presented on small firms’ awareness of, and attitudes towards, the health and safety legislation and their responses to the enforcement activities of health and safety inspectors. A framework for understanding owner-manager attitudes and organisational stances towards health and safety regulation and enforcement is advanced which emphasises their varying characteristics and motivational bases, including a regard for the different contexts in which firms operate. The framework supports the view that most small firms have a reactive stance towards regulation, but also that attitudes and motivations can range from overt avoidance to more positive and even proactive stances. This understanding points to the need for a multidimensional approach towards encouraging compliance that accords a central role to direct contact and enforcement in stimulating improvement in practices. The perspective developed is related to the debate around the role of regulation in general in shaping the performance and development of enterprises, particularly with respect to the potential wider economic role that can be played by well-implemented regulation and associated mechanisms of support.

Influences on Small-Firm Compliance-Related Behaviour: The Case of Workplace Health and Safety

The authors investigate the relative roles of a number of influences on workplace health and safety in small firms and, more specifically, the adoption of compliance-related improvement measures. From findings drawn from a survey of over a thousand British small enterprises, marked variations in firm behaviour with respect to health and safety were found, underlining the heterogeneity of small firms in this respect, and the way such behaviour reflects their varied contexts. Factors identified as being particularly associated with a propensity to make compliance-related improvements were: regulatory enforcement activity, use of external assistance with respect to health and safety issues, enterprise size and growth performance, management training and experience, and membership of trade or business associations. Although, as a group, ethnic-minority businesses were found to be neither more or less likely to make improvements of this type compared with their white-owned counterparts, detailed analysis revealed that such variations did exist between individual ethnic groupings; variations that are themselves seen to reflect a number of factors, particularly the employment size and sectoral context. Primarily the authors conclude that inspections on the part of regulatory officials are the most important influence, although there is some scope for more innovative approaches to encouraging compliance-related improvements.

Beyond green niches? Growth strategies of environmentally-motivated social enterprises

The article examines the strategies by which environmentally-motivated social enterprises seek to scale up their positive impacts, drawing on a theoretical understanding of the role of entrepreneurial agency in transitions to a more sustainable economy and society. Case study evidence is used to explore different forms of enterprise growth, contributions to economic, environmental and social value, and the capabilities involved in their realisation. A typology of three distinct approaches or modes is introduced to help explain orientations and strategies that reflect both conventional conceptions of growth and alternative ways of growing social and environmental value. The role of values, capabilities and relational learning in shaping strategies and addressing the tensions and challenges encountered within each category is highlighted.

Innovation and the Use of Technology in Manufacturing Plants and SMEs: An Interregional Comparison

In this paper we are concerned with the nature and extent of product and process innovation and adoption of information and communications technologies (ICTs) in manufacturing plants and SMEs. The paper is based on extensive postal surveys conducted in southeast (SE) England, Northern Ireland (NI), and the Republic of Ireland (RoI) with a harmonised survey instrument. We confirm the findings of a number of previous studies by demonstrating a positive association between product and process innovation and business performance. Data collected from all three surveys show that sales growth, employment growth, and profit margins were higher for innovators than growth, for noninnovators. It also appears that although foreign-owned plants show a higher propensity for innovation than indigenously owned plants, the latter grew faster than their foreign owned counterparts in all three regions. This suggests that a targeting strategy focused on innovative, indigenously owned SMEs may be particularly rewarding. With regard to the nature and extent of the use of ICT and electronic business (e-business), the survey found a higher level of adoption of nearly all ICT facilities in SE England compared with the levels in NI and the RoI. Differences in ICT capability between the regions are greatest in the case of smaller plants, with the adoption of various ICT facilities being particularly favoured amongst the smallest plants in SE England, most of which are indigenously owned. However, there is evidence to suggest that the technology may be underutilised in each region, possibly reflecting a lack of in-house knowledge and resources in some applications and external barriers in others. SE England was found to have the highest proportion of plants engaged in some R&D compared with the two Irish regions, particularly NI. Unsurprisingly, there is a tendency for the propensity of a firm to be engaged in R&D to increase with firm size. The surveys also underlined sectoral differences in explaining the relative importance of R&D. ‘Technology transfer’ was significantly more common in the two Irish regions, reflecting the higher proportion of externally controlled plants. With respect to the role of external linkages in innovation, links with customers and suppliers were the ones most commonly identified in all three regions. In SE England there is a particularly low propensity to engage in collaboration with external agencies and research institutions, indicating scope here for further policy intervention. We conclude with a number of suggestions for the agenda of the new regional centre of manufacturing excellence in SE England.

Regional Technology Initiatives: Some Insights from the English Regions

The paper presents findings from recent research on the policy role and experience of a number of Regional Technology Initiatives (RTIs) aimed at supporting innovation and technology transfer, particularly in small- and medium-sized enterprises (SMEs), in the English regions. The findings are discussed in relation to recent theoretical debates around innovation processes within SMEs, regional innovation systems and learning/actor networks. A primary concern is to understand the factors shaping the evolution of such initiatives and the lessons to be learnt from the experience to date. In this respect discussion focuses on four key issues: the funding driven nature of most of the initiatives; the move away from simply making new technology more accessible to a more client-need centred approach; the structural and cultural obstacles to improved links between academia and SMEs and how some of these can be ameliorated; and the issue of strategic integration between business support agencies within a region to support longer term economic development agendas. The paper concludes that the long-term viability of the RTIs will be dependent on their continuing capacity to anticipate and respond to an evolving, and to some extent uncertain, regional policy context.

Cleaner production: organizational learning or business as usual? An example from the domestic appliance industry

It is frequently argued that approaches to minimizing the environmental, health and safety impact of industry (i.e. cleaner production) require that firms engage in a process of participative learning involving all levels of the organizational hierarchy. This paper examines the key concept of organizational learning, particularly in terms of the associated concepts of participation and empowerment, drawing on a study of a large, environmentally pro-active firm and recent critical literature on the experience of work. It is suggested that, although contemporary management philosophy pays lip service to increased workforce participation and empowerment, there are formidable structural and cultural barriers to such change. Initiatives within firms to stimulate learning and continuous improvement around cleaner production can be understood in terms of firstly the relative power of individuals and groups within organizations to define and activate learning agendas and secondly the emphasis given to low cost, low skill and low trust as a route to competitiveness, particularly in a UK business context. Finally, attention is drawn to the weakness of external mechanisms for supporting genuine participation and empowerment within enterprises around health, safety and environmental issues.

Better regulation and enterprise: the case of environmental health risk regulation in Britain

Proposals for ‘better regulation’ and the policy dynamics behind them are examined with respect to the implications for the regulation of environmental health risks in smaller enterprises in Britain. Although better regulation has involved a fluid and rapidly changing discourse across the European Union, the regulatory reform agenda has recently refocused on competitiveness, simplification of targets and the reduction of administrative burdens on businesses. A review of the evidence base on the impact of regulation on business performance and the compliance behaviour of enterprises suggests that proposals relating to environmental health in Britain have been overly influenced by ‘red tape’ discourse which lends disproportionate weight to claims relating to regulatory burdens and underplays the benefits of regulation. Questions are raised with respect to some key aspects of better regulation: the policy to shift resources from enforcement to education; the limitations of comprehensive risk assessment applied to targeting enforcement; uncertainties relating to the potential of alternative means of achieving compliance and the adoption of good practice; and the over-emphasis in simplification exercises on the achievement of narrowly defined cost savings.

The use of external sources of health and safety information and advice: the case of small firms

Abstract This paper draws on British survey and interview data concerning the use made by small firms of external health and safety information and advice, the sources of such information and advice that they utilise, or would consider using, and the difficulties they experience in accessing information and advice of this type. These data are then used by the authors to shed light on the channels of such information and advice that are most likely to support improvements in how health and safety is managed in small enterprises. The authors’ analysis leads them to caution against adopting an overly optimistic view of the part that can be played in this respect by intermediary organisations and the publication of more and better advisory material, and to stress the importance of not understating the advisory and information-providing role of health and safety inspectors.

Opening access to administrative data for evaluating public services: The case of the Justice Data Lab

As government administrative data sets are increasingly made available for new (non-administrative) purposes, there is a need to improve access to such resources for voluntary and community organizations, social enterprises and private businesses for statistical analysis and evaluation purposes. The Justice Data Lab set up by the Ministry of Justice in the UK presents an innovative case of how administrative data can be linked to other data held by organizations delivering public services. The establishment of a unit within a secure setting holding evaluation and statistical expertise has enabled providers of programmes aimed at reducing re-offending to obtain evidence on how the impact of their interventions differs from that of a matched comparison group. This article explores the development of the Justice Data Lab, the methodological and other challenges faced, and the experiences of user organizations. The article draws out implications for future development of Data Labs and the use of administrative data for the evaluation of public services.

‘Social enterprise spin-outs’: an institutional analysis of their emergence and potential

ABSTRACT The recent phenomenon of public sector ‘social enterprise spin-outs’ is examined in order to critically assess their nature and innovative potential as providers of public services. The study utilises a theoretical model of institutional creation and change which incorporates key characteristics of ‘corporate spin-outs’ and ‘university spin-outs’ to facilitate the examination of their public sector counterparts, drawing on interview evidence from 30 newly-established social enterprise providers of health and care services in England. A main contribution of the paper is to provide a conceptual framework which sheds light on the strengths and potential vulnerabilities of social enterprise spin-outs as novel organisations that span the public, private and civil society sectors.