Martie-Louise Verreynne

The Role of Networks in Small and Medium‐Sized Enterprise Innovation and Firm Performance

The objective of this paper is to understand the contribution of networks to innovation and firm performance in small and medium enterprises (SMEs). Based on longitudinal data from 1,435 SMEs, we show that strong, heterogeneous ties improve innovation in SMEs. However, the connections between network ties and firm performance are more complex than previously thought, as the positive association is mediated by innovation. Consequently, SMEs should only concentrate on cultivating and maintaining networks if they lead directly to improvements in innovation.

Exploring strategic entrepreneurship in the public sector

Purpose – The purpose of this research is to elaborate on a model of entrepreneurship within the public sector. Design/methodology/approach – Case studies involving state-owned enterprises (SOEs) trace three examples of entrepreneurial ventures. Findings – A theme of strategic use of entrepreneurial action within these organisations emerges. It is argued that these examples are representative of both a field of enquiry and a specific concept which has been termed “strategic entrepreneurship”. Research limitations/implications – On the strength of the findings from this study we are able to draw two important conclusions. First, empirical support is found for the notion of “strategic entrepreneurship”, which is defined and explained in this paper. Second, incidences of strategic entrepreneurship are demonstrated in the SOEs, which extend the range of entrepreneurial types usually described in the public sector. Practical implications – A number of core and supporting elements of strategic entrepreneurship are identified, providing a clear framework for businesses. Originality/value – This paper progresses strategic entrepreneurship beyond the purely theoretical, by examining and analysing strategic entrepreneurship in an applied business setting, in this case public sector organisations.

Innovative and entrepreneurial activity in the public sector: The changing face of public sector institutions

Abstract This paper investigates the drivers and facilitators of innovative and entrepreneurial activity in three New Zealand state-owned enterprises (SOEs). Illustrative cases reveal that those aspects typically associated with entrepreneurship, such as innovation, risk acceptance, pro-activeness and growth, are supported by a number of other elements within the public sector context studied. These elements include external drivers related to performance, including operational excellence and cost efficiency. They also comprise internal facilitators such as a more flexible culture, an investment in people, a focus on branding, and the deliberate application and transfer of knowledge. The implications are twofold. First, that innovation and entrepreneurship in the public sector can go beyond government policy-making, with the SOE model representing an important policy decision and sector of the New Zealand Government. And second, that the impact of several SOEs on international markets suggests competition on the global stage will increasingly come from both public and private sector organisations.

Employment systems in small firms: A multilevel analysis

This exploratory study draws upon the perspectives of employees and managers from 50 small Australian firms to build a more complete and nuanced view of the interaction of human resources and capabilities with firm performance. Specifically, it uses a mixed methods multilevel design that elicits employee perspectives of employment systems and chief executive officer (CEO) assessments of firm performance. Results show that higher performing firms had better rated employment systems, with a cluster of human resource practices which included greater informality, employee engagement and participation. The views of employees were more discriminating and diagnostic than those of CEOs. The article discusses the implications of these findings for the study of employment systems and human resource management in small firms.

Beyond the Formal-Informal Dichotomy of Small Firm Strategy-Making in Stable and Dynamic Environments

Strategy-making assists small firms in managing change and uncertainty by developing suitable strategic options. We move beyond the conventional formal–informal dichotomy to show how three informal approaches—internal participation, external participation, and centralized strategy-making—help both entrepreneurial firms and conservative firms to navigate more or less dynamic environments. In an empirical study of 320 small firms, we find that participation during strategy-making relates positively to performance whereas centralization only matters for conservative firms in stable environments. In dynamic environments, better performance in entrepreneurial firms is associated with all three approaches. Our findings highlight the importance of viewing strategy-making in small firms as multifaceted and context specific.

The risks and returns of new public management: political business

Purpose – This article aims to consider success in terms of the financial returns and risks of new public management (NPM) in state-owned enterprises (SOEs). Design/methodology/approach – Financial returns of New Zealand SOEs were examined through a review of their annual reports over a five-year period. Dimensions of risk were examined through interviews conducted in two phases over a two-year period with senior executives from 12 of the (then) 17 SOEs operating in New Zealand. Findings – Findings indicate the potential for SOEs to operate as profitable government investments, with clear support for positive financial returns under NPM. However, variations noted within individual SOEs also indicate that profitable and commercial operations may not be possible in all cases. An examination of the risks associated with SOEs’ operations reveals a number of dimensions of risk, encompassing financial, political (including regulatory), reputational, and public accountability aspects. Practical implications – There is a need for an enhanced awareness on the part of internal and external stakeholders (such as the government and general public) of the risks SOEs face in pursuing higher levels of profitability. Also required, is a more acute understanding on the part of internal and external stakeholders (e.g. government and the public) of the need for SOEs to manage the range of risks identified, given the potentially delicate balance between risk and return. Originality/value – While previous studies have considered the financial returns of SOEs, or the risks faced by the public sector in terms of accountability, few have addressed the two issues collectively in a single context.

Multilevel absorptive capacity and interorganizational new product development: A process study

The objective of this paper is to deepen our understanding of the role of absorptive capacity in enabling interorganizational new product development (INPD). We contend that despite what is known about the benefits of absorptive capacity to innovating firms, this research is dominated by firm-level analyses using cross-sectional data. The accumulated knowledge about absorptive capacity thus does not help with understanding how absorptive capacity unfolds as a process within and between firms such as when firms collaborate in new product development. Using a longitudinal case study, we build new theory at the INPD system level of analysis that leads us to shed new light on the cross-level interactions between firm- and alliance-level absorptive capacities.

Modeling the role of intrapreneurial strategy-making in small firm performance

Intrapreneurs are those employees who identify and pursue opportunities in a firm. By pursuing these opportunities with new products, services or processes, intrapreneurial employees may influence the strategic direction of the firm, a process called intrapreneurial strategy-making. Little consideration has been given to how small firms may use this process to improve performance. To this end this paper describes the results of an empirical study conducted with 454 small firms. Analysis of the data indicates that intrapreneurial strategy-making has a significant positive relationship with firm performance, depending on the size of the firm, its organizational structure and the dynamism of the environment. It further shows that differentiation strategies may mediate this relationship.

Bank financing and credit rationing of Australian SMEs

This paper investigates two aspects of bank financing using a sample of 1,973 Australian small to medium sized enterprises (SMEs). We compare the variables that explain why Australian small to medium sized enterprises seek bank finance with those that underpin bank credit rationing of loan applications. Our analysis highlights that little overlap exists between the two sets of variables. Larger small to medium sized enterprises with growth intentions, business plans, and those in the agriculture industry are significantly more likely to seek finance. In contrast, firms in agriculture that are older, and that have incremental product innovation, 40% or more of export sales, and a male Chief Executive Officer, are less likely to be credit rationed. Importantly, having business plans, whether in large or small firms, does not relate significantly to credit rationing.

Entrepreneurial exit: who, what or to where? Regional relocation as a form of exit

Contents: Introduction: Introduction to the Research Handbook of Entrepreneurial Exit Dawn R. DeTienne and Karl Wennberg 1. Perpetually on the Eve of Destruction? Understanding Exits in Capitalist Societies at Multiple Levels of Analysis Howard E. Aldrich 2. Re-evaluating Business Exit from a Gendered Perspective Susan Marlow and Janine Swail 3. When Silos Collapse, what Happens to the Seeds?: A Case Study of the Diffusion of People and Ideas when a Firms Research Programs are Cancelled Kelley Packalen 4. Survey about Venture Capital Financing Exit Stage Saloua el Bouzaidi 5. Event History Analysis using the Kauffman Firm Survey Joseph Farhat and Alicia Robb 6. An Entrepreneurs Perspective--Beginning and Exit Gary Salomon 7. The Role of Retirement Intention in Entrepreneurial Exit Sohrab Soleimanof, Michael H. Morris and Imran Syed 8. Psychological Barriers and Coping Strategies in Business Transfers Explored: Towards a Conceptual Model Edwin Weesie and Lex van Teeffelen 9. The Entrepreneurial Break-up: Disengaging from the Start-up Phase Christina Wicker and Per Davidsson 10. Social ventures: Exploring Entrepreneurial Exit Strategies with a Structuation Lens Yolanda Sarason and Grace Hanley 11. For the Greater Good: Why and how Social Entrepreneurs Exit Social Ventures Jason Lortie 12. Entrepreneurial Exit: Who, What or to Where? Regional Relocation as a Form of Exit Anna Jenkins, John Steen and Martie-Louise Verreynne Index