Terry L. Besser

Reciprocated community support and small town - small business success

This paper presents an empirical test of the significance of reciprocated community support, in contrast with traditional economic factors and unilateral support, in the success of small businesses in small towns. The central hypothesis is that entrepreneurs who make non-market contributions to their community and whose community supports them, are more likely to consider their businesses to be successful. Logistic regression is used to analyse survey data from over 800 small businesses in 30 small towns of the state of Iowa (USA). The authors found that the interaction effect of an entrepreneurs service to the community, reciprocated by community support of the business, is the single most significant determinant of business success among dozens of indicators and characteristics of the respondent, the business, and the small towns in the sample. In addition, it was found that business people who feel successful expect to expand. These findings are relevant to rural development. The expansion of existing...

Is the good corporation dead? the community social responsibility of small business operators

Abstract This study examined whether social responsibility is a meaningful characteristic with which to differentiate businesses given its supposed demise in the new global economy. The analysis focuses on small businesses and the social responsibility of businesses toward their community. Community social responsibility and competitive strategies were measured by the self reports of 675 small business operators in 10 Iowa cities. Cluster analysis revealed four categories of business operators designated as civic leaders, alienated business operators, followers in high collective action communities, and followers in low collective action communities. Findings demonstrate that business owners and managers can be differentiated on the basis of community social responsibility. The clusters so created are associated with meaningful business and operator demographic features and with the operator’s belief in the importance of community support as a strategy for business success. This analysis shows that in spite of changes in the economy, a significant segment of small business operators believe in tenets of the enlightened self interest model of business social responsibility, that is, that doing good is good business.

Community and managerial predictors of performance in small rural US retail and service firms

Abstract Conducting business in todays rural community environment offers social and economic promise along with uncertainty in facing the phenomenon of having fewer customers, who make fewer visits, and spend less per visit. This research highlights the importance of both community and managerial factors to performance evaluations of small rural retail and service firm owners. Using path analysis, direct and indirect effects on perceptual and financial performance were identified for a national US sample of 275 rural small-sized retail and service businesses. This study provides information from largely successful firms for developing marketing strategies and product/service offerings as a crucial step in assisting businesses in rural communities.

The risks of enlightened self-interest: small businesses and support for community

This article focuses on the association between the beliefs of small business owners and managers and their support for the community. Qualitative and quantitative data are utilized in an exploratory examination of two rationales for socially responsible behavior and of two kinds of support. Analyses show that the belief in strengthening the community as an important strategy for business success is positively associated with the provision of nonrisky and risky support. Risky support may threaten short-term business success. However, the belief that a good public image is important for business success is negatively or not significantly associated with either risky or nonrisky support for the community. Findings uphold the position that there are significant variations in enlightened self-interest rationales that are differentially associated with business social performance among small business operators and demonstrate the usefulness of disaggregating social performance into risky and nonrisky variations.

The Impact of Economic Shocks on Quality of Life and Social Capital in Small Towns.

Economic shocks are sudden events causing a significant impact on the local economy. Disaster community literature predicts that community outcomes from shocks will depend on the kind of shock. Consensus crisis shocks will be followed by increases in social capital and quality of life. Corrosive community shocks will result in declines in these factors. Using longitudinal data from small towns, we find that shocks are not associated with declines in quality of life or social capital, however, certain kinds of shocks are followed by increases. The strength of shocks and the net cumulative effects of multiple shocks are related to social capital and quality of life. This analysis advances conceptualizations by unpacking shock events and suggesting that strength and effect of multiple shocks are as important as shock type.

For the greater good: business networks and business social responsibility to communities

Business networks (co-operative arrangements between independent business organizations) may be the signature organizational form of the contemporary global economy. Many policy-makers and local leaders advocate business network membership as an alternative development strategy for regional economic vitality. The extant literature on business networks has focused on their association with business success. However, little is known about their impact on other aspects of community life. The purpose of this paper is to elaborate the role of network membership on one non-economic dimension of the business community interface. We examined the relationship between business network membership and business social responsibility to communities, defined as the provision of leadership and support for community betterment projects. Data were gathered from telephone interviews with a random sample of 460 non-metro small business operators in the USA. Independent t-tests and ordinary least squares regression analyses controlling for theoretically important variables were conducted. Findings show that networked businesses provide more leadership and support for their communities than non-networked businesses. However, networked businesses were no more likely than non-networked businesses to use local suppliers of goods and services.

The structural, social, and strategic factors associated with successful business networks

Business networks, formal arrangements between independent businesses established to enhance member success, are generally accepted as an important strategy to help small businesses survive and prosper, and to promote regional economic development. However, knowledge about what contributes to the success of business networks themselves is less extensive and based primarily on case studies or reports of network directors. The purpose of this paper is to partially address this shortcoming. We consider the structural and social features identified in previous studies as likely correlates of business network success. Using a social constructionist definition of network success, we distinguish successful from less successful networks from among a sample of 29 industry and community business networks in the USA. Findings from interviews with 1122 members and 29 network leaders suggest that trust is central to understanding network success. Structural features have complex positive and negative indirect effects on success through trust and resource exchanges. The findings highlight the fact that business networks, while offering great potential as a way to enhance economic vitality of regions and industries, cannot be viewed as a simple remedy.

Exploring Decision Strategies and Evaluations of Performance by Networked and Non-Networked Small U.S. Businesses

A strategic network perspective established the theoretical foundation for exploring aspects of business management in 383 small businesses predominantly operating in small communities across the U.S. It was proposed that those owner/managers involved in formal voluntary organizations to promote business effectiveness would differ in their strategic decisions and evaluations of performance from businesses without such formal group affiliations. Business strategies assessed involved the emphasis placed on employees, customers, and community, and the effect of these three variables in explaining four elements of business performance. Networking businesses were found to place more emphasis on strategies dealing with employees, customers, and community than non-networking businesses. Final results suggested that network membership held a direct effect on business strategies, and that these strategies held varying direct effects on perceptions of business performance. Findings offer initial support for strategic network theory as well as practical information for small business owners considering network membership.

Networking as marketing strategy: a case study of small community businesses

Purpose – The paper examines the building of a new business network by women apparel retailers operating in small Midwest US communities to better understand the network development process and the contributions to small business marketing strategy.Design/methodology/approach – Work draws upon the theoretical and empirical tradition of network studies using prior research for considering current small business owners. This case study approach involved documenting the evolution of relationships among retailers over a five‐year period by means of primary data collection from multiple sources.Findings – Two theoretical network development frameworks were supported in the identification and description of critical transformation phases and the implicit impacts on retail member firms.Research limitations/implications – The case study involves a limited number of business owners in the same retail sector operating in small towns. It may not be representative of retail operations of different size, in different ...

The Impact of New Employers From the Outside, the Growth of Local Capitalism, and New Amenities on the Social and Economic Welfare of Small Towns

The purpose of this study was to determine if the outcomes of economic development result in the anticipated economic and social benefits.The authors differentiated between the proximal outcomes of development (e.g., attracting a new employer) and their distal outcomes (e.g., increased employment and income). Indicators of economic change from secondary sources were merged with primary data from resident surveys and key informants’ interviews for 99 small Iowa towns for the analyses. Findings show that the opening of absentee-owned employers had positive economic benefits compared to the situation in other similar towns. However, it was not accompanied by gains in quality of life. The growth of local capitalism was associated with more positive quality of life outcomes. New amenities were not associated with economic or quality of life changes.