Paula J. Haynes

Small and Mid-Sized Businesses and Internet Use: Unrealized Potential?

The findings of a study by Auger and Gallaugher (1997), in addition to suppositions and anecdotal evidence provided in a number of articles, suggest that there may be key areas of difference as well as similarities in Internet usage patterns among small and mid‐sized businesses. Since large businesses are both potential customers of and suppliers to small to mid‐sized businesses, it is important to understand their Internet usage patterns as well. The study was designed as a preliminary examination contrasting such usage among large and small and mid‐sized owner‐operated firms. Study findings suggest mid‐sized businesses may be at a competitive disadvantage in their current operational use of the Internet. Small businesses in the study were more likely than mid‐sized or large firms to have a home page and to reveal computer/technology programs as potential Internet services needed to improve current operations. Future research must continue to examine the role the Internet can play in allowing small and mid‐sized businesses to be more competitive in today’s technology based global environment.

Hating to Wait: Managing the Final Service Encounter

Suggests that while businesses have made great efforts to reduce the length of time customers wait for service, little attention has been paid to the actual experience of waiting. Argues that the final service encounter is crucial for reinforcing customers′ performance expectations. Suggests that the expectations and perceptions of customers influence their actual experience of waiting at the point of sale. Offers hints on improving customers′ waiting experiences.

Marketing Orientation in SMEs: Effects of the internal environment

Marketing orientation can be described as a culture in which organizations strive to create superior value for their customers (and superior performance for the business) by focusing on customer needs and long‐term profitability. Some studies have found that firms with a high degree of marketing orientation experience improved performance; othershave found mixed or non‐significant results. While all firms are strongly influenced by their external environment, small to medium sized firms (SMEs) may be even more influenced by their own internal culture. The smaller firms are less bureaucratic and more a reflection of their own specific leadership and internal circumstances. The marketing orientation of these firms may in part be determined by such factors as the scope of the business or the managerial style of the president. This study examines the market orientation of SMEs relative to several characteristics of the organization and the managerial style and background of the company president. In addition, marketing orientation is examined relative to company performance in terms of both change in sales and change in profits. The results of this study confirm some earlier research on marketing orientation and provide some new insights and questions on this important strategic dimension.

Differences among entrepreneurs

Though often considered a critical factor in predicting venture success, past research into the effects of founder experience has often produced mixed results. What factors influence founders’ decisions to use, or not use, experience they possess? This study examines the role job dissatisfaction might play in a founders decision to leverage multiple types of experience (sector, entrepreneurial, role model and education) on external (sales performance) and internal (founder intrinsic satisfaction) outcomes. Greater dissatisfaction was associated with decreased likelihood of founders building on sector experience. While dissatisfaction influenced the use of experience, greater experience levels did not consistently account for higher levels of venture sales performance. Moreover, no differences were found in founders’ intrinsic satisfaction, regardless of sales performance. The differing results in the two outcome measures suggest potential differences in the goals and consequent actions of entrepreneurs i...

COMPETITIVE STRATEGIES AND BUSINESS PERFORMANCE WITHIN THE RETAILING INDUSTRY

Investigates the relationship between competitive strategies and business performance in the retailing industry and provides an empirical investigation of strategic approaches to competitive success adopted by various groups of retailers. In the past, examinations of this relationship have focused on samples from the industrial sector and have not investigated samples in the retail sector. Findings indicate that, both in terms of financial performance and operating performance, the group of retailers employing a combination of low‐cost/ differentiation strategy to attain competitive advantage outperform those using a singular strategic approach.

Marketing orientation in SMEs: Effects of the internal environment

Marketing orientation refers to a culture in which organizations strive to create superior value for their customers (and superior performance for the business) by focusing on customer needs and long-term profitability. Some studies have found that firms with a high degree of marketing orientation experience improved performance; others have found mixed or nonsignificant results. The marketing orientation of small businesses has not been thoroughly investigated, however. This study of more than 200 small business CEOs examines the marketing orientation levels of small to medium-sized firms (SMEs) as well as the impact of various internal variables (sales/profit performance, company characteristics, and CEO characteristics) on marketing orientation levels. The results confirm some earlier research on marketing orientation and provide new insights into this important strategic dimension.

Financial Service Strategies: Neglected Niches

Companies cannot realize their growth and profit objectives if they fail to fine‐tune their offerings to the needs of neglected market segments. Because market penetration is the least expensive growth strategy, increased efforts directed towards existing customers are on target, but often key implementation activities have been amiss. Some companies have lost sight of the basic tenet of the marketing concept – failing to understand their customers′ unmet needs. Such firms may think they know their customers so well they can simply increase their offerings without examining the unique needs of various customer subsegments. In the retail financial service industry, providers have implemented growth strategies by focusing on their current customer base, which included women and customers over 50 years of age. However, providers failed to recognize the value of these subsegments and did not develop specific tactics to address their financial perceptions and needs. The increased importance of women as financi...

An Ethical Framework for Purchasing Decisions

As the importance of the purchasing function in corporations increases, there has been a concurrent increase in the importance of ethics in the purchasing environment. The purchasing linkage is critical to effective operation of corporations as high‐quality raw materials and supplies available on a timely basis are required for global competitive success. Bottom‐line productivity and profitability, as well as long‐term viability, are directly dependent on effective functioning in the purchasing arena. The traditional organisational structure of the purchasing function has the potential to encourage unethical employee practices. Viewing the relationship between an organisation and its suppliers as adversarial creates conflict as well as inherent ethical dilemmas in the purchasing function. This article discusses various categories of unethical purchasing situations and illustrates ways to lessen or avoid these dilemmas through the introduction of just‐in‐time (JIT) inventory control procedures. The interna...

Are You Really Listening?: THE BENEFIT OF EFFECTIVE INTRA‐ORGANIZATIONAL LISTENING

Draws attention to the importance of listening skills. Approximately three fourths of the business day is spent engaged in some form of communication. Effective listening is central to enhanced communication but managers do not always listen because active listening is not a natural process. It requires both mental and physical effort on the part of the listener. Intra‐organizational listening can become a powerful competitive tool. Suggestions for improving listening skills on an organizational and an individual level are provided.

Meeting the Human Resource Challenges of JIT through Management Development

In a three‐year study of a firm undergoing major technical changes, the factors related to successful implementation of a JIT programme were determined. These factors could all be categorised as human relations or organisational behaviour issues and included: (1) communication skills, (2) management commitment, (3) worker commitment, and (4) appropriate performance evaluation goals. No technical factors were rated as most important to programme success. Management development training programmes that would enhance these key success factors were then identified. Training and development should include a comprehensive pilot programme, a series of initial pre‐implementation sessions, and ongoing training. The content of these sessions is discussed. Management development practitioners must recognise these behavioural needs since a behavioural focus for such technological changes is important and the engineering focus alone is not enough for the successful implementation of such major changes in an organisation.