Article

Training and Performance in Small Firms

December 2006
International Small Business Journal Researching Entrepreneurship 24(6):635-660

Authors:

Cardiff University

This article explores the relationship between training and growth in small manufacturing businesses. Research on training undertaken at the macro-level highlights a series of earnings and productivity returns. However, firm-level research has generally yielded more ambiguous results. A review of small firms research indicates that the relationship between training and growth has rarely been considered within the wider context of other factors that may influence growth. Training literature also appears to be more concerned, perversely, with its impacts on firm inputs (employment growth) rather than output (sales) growth. Other considerations also complicate understanding of the relationship between training and performance, since training may be provoked by employment growth (but not theoretically by sales growth), and has a tendency to be associated with larger firms. These considerations are examined with respect to two types of training (in-house training and ex-house management training) using information from a sample of 114 small manufacturing firms in Wales.

The Strategic Role of Training for SMEs in Building Sustainable Supply Chains

Technical Report

Full-text available

Apr 2024

Huon Curtis

Small and Medium-sized Enterprises (SMEs) are diverse and include those driven by social purpose, high-growth scale-ups, and startups across various sectors. Collectively, SMEs play a crucial role in economies and local communities, but their contribution to GDP is proportionally smaller than their employment numbers. Recent global and local shocks, including natural disasters, technological changes, and cyber incidents, have posed challenges to SME resilience. These firms often exhibit greater vulnerability compared to larger firms due to their specialised markets and suppliers, weaker financial positions and borrowing capacity, and their availability of human resources and knowledge capital. One significant contributing factor to their vulnerability is the relatively lower prevalence of formal ‘off-the job’ training in SMEs compared to their larger counterparts. Training has traditionally been perceived by businesses as a cost that needs to be controlled or reduced. However, empirical evidence underscores the robust and substantial positive effects of off-the-job training on SME performance, including employment growth and reduced closure rates. In recent years, the ongoing debate about the impact of technological change on the labour market has gained prominence. Emerging technologies like artificial intelligence, digitization, and industrial robots are expected to bring further transformation. Technological change is making job tasks more complex, which increases the need for qualifications and skills. The imperative will remain to nurture high-quality employment in SMEs reflective of their role in fostering resilient supply chains, even as the causal relationship between technological progress and training remains an ongoing topic of discussion. The feedback loops between innovation and skills presents policymakers with complex challenges and coordination issues. This report delves into the economic advantages, particularly regarding productivity, of training in SMEs, with a specific emphasis on firm-level training as opposed to vocational programs such as apprenticeships. This publication forms part of a series curated by UNIDO, dedicated to advancing the organization’s work on Sustainable Supply Chains, and was crafted within the framework of the Learning and Knowledge Development Facility (LKDF).

Training professionalisation and SME performance

Article

Nov 2019

Urban Pauli

This paper examines how SMEs organize their training process, the extent to which they apply training practices that are well-grounded in literature, and how these impact upon their performance. To evaluate the training process, the concept of ‘training professionalization’ was applied to identify the scope and specificity of actions undertaken. This mostly refers to formal training which should consist of needs assessment, planning, execution and evaluation. This article presents the results of research conducted on a group of 100 Polish SMEs. The research design made it possible to evaluate training professionalization and verify interdependence between training professionalization level and business outcomes. Data analysis confirmed that the training process in SMEs is generally underdeveloped; only in a few companies is it executed according to the models and procedures discussed in the literature. However, it was statistically supported that companies executing training processes according to theoretical models reported higher outcomes and an increase in almost all evaluated performance indicators.

SUKSESI PERUSAHAAN KELUARGA BERKELANJUTAN, Sinyal Mendeteksi Putra Mahkota compressed-1

Book

Full-text available

Feb 2023

Bambang Dwi Suseno

Buku ini merupakan konversi dari disertasi penulis yang merupakan hasil penelitian panjang antara tahun 2014 hingga tahun 2017. Banyak rekan-rekan cendekiawan bidang Family Business melalui interaksi via Linkedin yang telah membaca ringkasan disertasi pada Journal of Economic Cooperation and Development 40 (2) (2019), 25-58 menyarankan versi lengkap dari “The Model of Capability Soft Governance in Family Business: Empirical Study in Bus Transportation Industry in Jakarta, Indonesia” dapat dinikmati secara lebih luas untuk berbagai kalangan sebaiknya dibuat dalam bentuk buku referensi sehingga lebih ringan namun tetap menyajikan detailnya. Bagaimanana buku ini digunakan. Sistematika buku disajikan dalam enam bab dengan pertimbangan tetap menjadi buku referensi dengan karakter ilmiah yang menonjol, namun dengan judul dan sub-judul dengan pilihan diksi lebih popular dan luwes bagi kalangan umum non akademisi termasuk bagi para pemilik dan pendidi perusahaan keluarga. Bagi kalangan akademisi sistematika dan kontek keilmiahan masih sangat kuat, sehingga layak digunakan untuk digunkan untuk mendukung mata kuliah Metodologi Penelitian dan Publikasi. Selebihnya sangat selaras untuk mendukung mata kuliah Pengantar Bisnis, Manajemen Sumber Daya Manusia, Perilaku Organisasi, Manajemen Perubahan, Kewirausahaan dan Manajemen Kinerja. Bagian bagian penting dari buku ini meliputi bukti – bukti performa dan kontribusi (share) perusahaan keluarga (family firm) terhadap product domestic bruto dan product national bruto sesuai dengan lokus operasi perusahaan maupun kepemilikan perusahaan keluarga tersebut. Perjumpaan konten ini termaktub pada Bab I. Selanjutnya pada Bab II akan disajikan pemetaan dialektika para ilmuan bisnis keluarga yang melahirkan banyak konsep manajemen khas bisnis keluarga, tipe perusahaan keluarga dan operasional serta suksesi pada perusahaan keluarga. Pada bab ini juga akan dijelaskan bukti – bukti empiris dari berbagai temuan hasil riset terdahulu terkait dengan tata kelola perusahaan keluarga. Disisi memang banyak dipertukarkan antara perusahaan keluarga, family business dan family firm, namun demikian yang dimaksud tetap perusahaan milik keluarga. Bagian Bab III, akan menjelaskan metodologi dan pendekatan riset yang dilakukan, pengujian untuk menemukan pola hubungan berbagai variabel dan konsep berserta penafsirannya. Selanjutnya pada Bab IV disajikan hasil olah data secara deskriptif, pengujian model dan pengujian hubungan serta pengaruh antar variabel. Hal ini penting disajikan agar dapar mendeskripsikan serta memperkuat validates dan reliabilitas model serta bagaimana model bekerja dan mampu memperdiksi bagaimna kinerja manajerial dari perusahaan keluarga. Pendalaman atas temuan pengujian pada Bab IV dilanjutkan dengan penyajian Bab V berupa konfirmasi dari berbagai temuan penelitian terdahulu yang relevan. Pada bagian ini juga dideskripsikan bukti triangulasi melalui penelusuran dokumen yang relevan dan wawancara kepada informan terpilih yang memiliki pengetahuan memadai tentang operasionalisasi perusahaan, kepemimpinan manajer pada perusahaan serta ukuran-ukuran kinerja manajerial yang ditetapkan pada perusahaan. Mengakhiri buku ini akan disajikan pada Bab VI berupa simpulan dan implikasi teoritis untuk pengembangan Ilmu Manajemen dan Family Firm. Selebihnya implikasi manajerial yang bermanfaat untuk meningkatkan kinerja manajerial dan suksesi kepada generasi yang lebih muda sebagai putra mahkota, yang diproyeksikan meneruskan pengelolaan dan kepemilikan perusahaan keluarga.

THE RELATIONSHIP BETWEEN FINANCE, INFRASTRUCTURE, TRAINING AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES: A NIGERIAN EXPERIENCE

Thesis

Full-text available

Jan 2015

Mohammed Sani Abdullahi

Small and Medium Enterprises (SMEs) play significant roles in providing employment opportunities, alleviating poverty, empowering communities, provision of goods and services, contributing toward the GDP, and achieving sustainable growth and development of the Nigerian economy. The aims of this research is to assess the relationship between finance, infrastructure, training and performance of SMEs in Nigeria and to investigate the challenges affecting the performance of SMEs in Nigeria. The variables of this research were used because they are the critical variables that affect SMEs performance in Nigeria, the reason why the performance of SMEs has not been achieved. The instrument that was used in this study was adopted from previous researches. This study used Kano State as the focus area of the study and descriptive survey research design was used in this study. Sample size of 310 SMEs was drawn through simple random sampling out of the population of 1530 registered SMEs in Kano State, Nigeria. Primary data was employed in this study and the data was collected through administering of close-ended structured questionnaires. Descriptive statistics were used to analyze the respondent’s profile while Structural Equation Modeling (SEM) was employed to test the hypotheses of this study. The findings indicate that there are significant and positive relationships between finance, infrastructure, training and performance of SMEs in Nigeria. This study suggests that there is a dire need for finance, infrastructure and training to be given adequate concentration as they serve as the engine of boosting the performance of SMEs in Nigeria. This research identifies that the challenges affecting the performance of SMEs in Nigeria are unavailability of finance, infrastructure and training. Thus, it is recommended that the Government should undertake policy development work aimed at making access to funds easier for SMEs with growth potential and reduce the interest rate. The existing infrastructural facilities such as road, electricity, water supply, and telecommunication should be improved to high standard by the Government. The Government should also encourage the SMEs entrepreneurs to make use of Entrepreneurial Development Programme (EDP) that is aimed at improving the skill level in the SMEs sector, and the SMEs entrepreneurs should inculcate the habit of training and developing their management and workforce in order to build a strong capacity for meeting these challenges.

TRAINING STRATEGIES FOR LEADERSHIP SUCCESSION IN SMALL AND MEDIUM SCALE CONSTRUCTION COMPANIES IN NORTH-EAST NIGERIA

Article

Full-text available

Jul 2018

Exploring the Future of Startup Leadership Development

Article

Sep 2020

Leadership development (LD) is a crucial success factor for startups to increase their human capital, survival rate, and overall performance. However, only a minority of young ventures actively engage in LD, and research rather focuses on large corporations and SMEs, which do not share the typical startup characteristics such as a rather young workforce, flat hierarchies, resource scarcity, and high time pressure. To overcome this practical and theoretical lack of knowledge, we engange in foresight and explore which leadership development techniques will be most relevant for startups within the next five to ten years. To formulate the most probable scenario, we conduct an international, two-stage Delphi study with 27 projections among industry experts. According to the expert panel, the majority of startups will engage in leadership development over the next decade. Most startups will aim to develop the leadership capabilities of their workforce as a whole and use external support. The most prominent prospective LD measures in startups include experiential learning methods, such as action learning, developmental job assignments, multi-rater feedback, as well as digital experiential learning programs, and developmental relationships such as coaching in digital one-to-one sessions. Self-managed learning will play a more important role than formal training and education measures.

Workforce Skills, In-Company Training and SME Productivity: A Systematic Review of the Literature

Research

Full-text available

Sep 2017

Huon Curtis

This paper explores the current state of knowledge on the economic benefits, particularly in regards to productivity, of in-company training in small and medium enterprises (SMEs). In-company training is any kind of training that is delivered at the firm level, contrasted with vocational training such as apprenticeship programs. The most common distinction in the literature is between on-the-job and off-the job training. On-the-job training is most often defined by informality, such as ‘learning by doing’. Off-the-job training is most often defined as any form of training that takes a worker away from their normal work duties, either on or off the premises. There is strong empirical support that off-the-job training boosts productivity compared with on-the-job training.

TRAINING STRATEGIES FOR LEADERSHIP SUCCESSION IN SMALL AND MEDIUM SCALE CONSTRUCTION COMPANIES IN NORTH-EAST NIGERIA

Article

Full-text available

Mar 2020

Staff training and development strategies are considered a ‘sine qua non’ for a sustainable leadership succession in any organisation. This descriptive survey research design sought to ascertain the level of implementation of training strategies for leadership succession in small and medium scale construction companies in the study area. A questionnaire with 5-point rating scale was employed to elicit responses from 93 CEOs on staff training and development strategies including policies and procedure, opportunities, funding, and incentives and rewards for training. A hypothesis was formulated, and tested with t-Test, to determine any difference in the responses between the small and the medium scale companies under study. Results indicated that even though the respondents practiced some of the strategies without funding in the mean, they are generally indifferent to leadership succession through staff training. There was no significant difference in the mean responses of the small and the medium scale construction companies. It was recommended that the construction companies be more committed to effective leadership succession by organising and funding training workshops and seminars for staff.

Determinants of Micro, Small & Medium Enterprises' (MSMEs) Performance in Nigeria: Evidence from Business Enterprise Survey

Article

Full-text available

Feb 2020

In this paper, we provide new evidence on the determinants of business enterprise performance by combining the structure conduct performance, efficiency structure and business environment factors. In particular, we focus on the major determining factors of MSMEs performance in Nigeria. We further account for possible regional variation in MSMEs performance using a cross sectional Ordinary Least Squares (OLS) with fixed effects.

The Effectiveness of Training in the Tourism Context: Examining the Training Impact on Individual and Organizational Performance

Article

Jun 2015

Mohamed Obaid

Mustang paper

Research

Full-text available

Mar 2024

Abstract The significance of retail in the world can be measured from the fact that the largest corporation in the world, Wal-Mart is a retail chain. The significance of retail is apparent not only from its contribution to its various economies but also by the level of employment generated by the industry. Retail is the second largest industry in the United States in terms of both the number of establishments and the number of employees. Though in India the supply side factors (expect regulation on FDI) and demand side factors are favourable for the growth of organised retail, there is stagnation in the growth of organised retail in India. This study has analysed the challenges faced by the organised food and grocery retail in Bangalore city. The factors of challenges are confirmed through confirmatory factor analysis. Key words: Organised retail, food and grocery retail, Indian retail, confirmatory factor analysis.

Dynamics of Formality and Informality: Examining and Resolving Tensions

Chapter

Jan 2023

The formality-informality dynamic represents an interesting yet underexplored tension in the SME employment relationship. Much HRM research plays formality and informality off against each other, where the former is seen a progressive and natural and the latter is dismissed as backward or deficient. Informality is considered an inevitable consequence of a lack of formality and a direct function of scale, rather than as a legitimate approach in its own right. This chapter explores this tension, arguing that HRM research, by definition, must acknowledge the operation of degrees of (in)formality in all types of firms if it is to capture the reality of workplace relations. This emphasises the importance of understanding the logic underpinning the practices in use by paying greater attention to issues of context. We suggest that formal and informal HRM can be simultaneously complementary and substitutive within SMEs. However, current understanding and operationalisation of informality needs to be more nuanced and considered if this feature of SMEs is to be accommodated and appropriately researched. The result is a research agenda to further progress our understanding of the dynamics of informality and its relationship to formality.

Sustainability performance reporting in Ghana: the views of SMEs

Article

Jan 2024

SUKSESI PERUSAHAAN KELUARGA BERKELANJUTAN

Book

Full-text available

Dec 2022

Bambang Dwi Suseno

Business Start-up Skills and Competences

Chapter

Sep 2022

Task performance and training of employees: the mediating role of employee engagement in the tourism and hospitality industry

Article

Full-text available

Aug 2022

Purpose The purpose of this study is to analyse the perception of employees towards training and also examine the mediation effect of employee engagement between training and task performance. Design/methodology/approach An integrated model has been developed highlighting the relationship of the motivation for training and support for training and their implications on task performance through the mediating role of employee engagement. Using the sample of 397, structural equation modelling has been used with the help of SPSS and AMOS to validate the hypothesized relationship and evaluate the responses of employees working in travel agencies operating in Delhi (capital), India. Findings The findings of this study demonstrated a positively significant relationship between training and task performance of employees in the tourism and hospitality industry. Simultaneously, employee engagement positively mediates the relationship between training and task performance directly and indirectly. This study goes over the ramifications of the findings and offers some suggestions for practical implementations. Practical implications The findings of this study can be used by managers and HR professionals to organize exclusive training programs for improving employees’ performance based on the dimensions used in this study. This study also suggests that training program enhances employee engagement in organizational activities which leads to build up team work and overall organizational as well as individual performance. Originality/value This study also introduces a conceptual model and theoretical framework that provide a significant contribution to the training and task performance of employees. This study provides a strong theoretical foundation by incorporating the social exchange theory to confirm the role of employee engagement in performance. Further, this novel piece of research explores the relationship between training and task performance with employee engagement as a mediator, especially in the Indian tourism and hospitality industry.

Foreign ownership and firm performance in Sub-Saharan Africa

Article

Jun 2022

Our study investigates the effects of foreign ownership on firm performance with respect to profitability, productivity, export intensity, and skills acquisition in Sub-Saharan African (SSA) countries. This is particularly important given that in the last three decades, the stock of FDI has increased by over 20,000% in SSA countries. To achieve the objectives of this paper, we employed firm- and country-level data from the World Bank Enterprise Surveys and the World Bank Development Indicators, respectively. Results of the least squares dummy variable (LSDV) and propensity score matching (PSM) estimations showed that foreign ownership was positively associated with higher levels of financial profitability, productivity, exports, and skilled labour acquisition. Policy implications were deduced from the findings.

Enhancing learning in small businesses

Article

Full-text available

Mar 2022
Hum Resource Manag J

This study addresses knowledge gaps relating to how small business owner/managers facilitate employee learning and how distinctive characteristics of small businesses affect employee learning. Data were collected through interviews with owner/managers and employees and observation of conditions in the physical, social, and organisational environments that might help or hinder informal learning. The findings provide a situated, context‐sensitive, and triangulated account relating to two research questions. We find that owner/manager physical and social proximity to employees is a key facilitating factor. Proximity creates the potential for owner/managers to facilitate learning through modelling, provision of immediate feedback and guidance. The owner/manager's positive influence on learning stemming from their physical and social proximity to employees is accentuated by owner/managers employing management styles facilitative of learning. Our findings suggest that a “family‐like” culture and the social cohesion in the businesses had enabling effects on employee participants' informal learning, while their lack of opportunities for formal learning would have inhibiting effects.

A Critical Assessment of Personnel Perceptions on Training and its Imparts on Job Performance in Nigerian Organizations: The Way forward

Article

Full-text available

Jan 2021

Lawretta Adaobi Onyekwere

THE IMPACT OF PERSONNEL TRAINING ON TOURISM DEVELOPMENT; THE DIVERSIFICATION OF BAYELSA STATE ECONOMY AND THE CASE OF OXBOW LAKE AND OTHER TOURISM SITES

Article

Full-text available

Jan 2021

Lawretta Adaobi Onyekwere

Developing a Structured OJT Program: The Case of a Small Manufacturing Company in a Rural Region

Article

Full-text available

Dec 2021

Raymond A Dixon

This study explored the process followed by a small manufacturing company in a rural area to implement a planned training program to develop the technical skills of its engineering/production workers as the company expands its operation. A case study design was used. Data was collected over an eight-month period by the examination of documents, direct observation, and interview. Findings indicate the process followed were consistent with elements of the Talent Development Architecture. The growth of the company presents learning opportunities for both the owner and his management team. The job analysis provided inputs to implement a planned training program and to develop documents to support talent development. To maintain a pipeline of skilled entry-level workers, partnership needs to be built with the high school CTE program.

Exploring Measures for Improving Small and Medium Construction Enterprises’ (SMCEs) Participation in the Nigerian Public Procurement

Article

Full-text available

Jun 2021

Despite the roles which small and medium construction enterprises (SMCEs) play in the Nigeria construction industry and the economy at large, extant research revealed that their participation in public procurement is poor as large firms have dominated the public procurement market. Previous studies have identified barriers responsible for their low participation and also suggested improvement measures. However, improvement measures best suited to dismantle/mitigate each barrier is not known. This study thus, assessed measures for improving SMCEs’ participation in Nigeria public procurement. The study collected data from 100 SMCEs in Nigeria, via a questionnaire survey. Mean/relative importance index was used for ranking the measures and ANOVA for checking difference between the studied measures. The result of the study revealed that E-procurement is the best measure for improving SMCEs’ participation in public procurement as it is best in dismantling barriers related to “problematic procurement procedure”, “lack of awareness of public procurement” and “legal issues/corruption”. Training which is suitable for eliminating barriers related to “lack of skilled employees and partners”, emerged as the second best followed by Division of Contract into lots that is best suitable for tackling barriers related to “lack of resources” which is contrary to previous researchers’ belief that it is the best measure. The study concludes that E-procurement, training and division of contract into lots are all suitable measures for improving SMCEs’ participation in Nigeria public procurement in their other of priority. The study’s findings show that it is desirous that the measures are applied together as none of these measures is singularly sufficient in dismantling all barriers to SMCEs’ participation in public procurement.

The Current Status of in-Service Trainings for Teachers and Expectations: Do They Match?

Article

Full-text available

Jan 2021

Taking into consideration the INSETs' direct influence on teachers' professional development and indirect influence on the education, the present study aims to find out teachers' views about in-service training activities and their proposed solutions to improve the effectiveness of the in-service training activities through the semi-structured and in-depth interviews. Moreover, the latest statistics of in-service trainings in Turkey was examined with holistic and critical approach. 59 teachers from three different types of school (primary, secondary, junior high school) in Turkey participated in the study. Data were collected through a semi-structured interview, and analyzed through content analysis by searching for patterns and synthesizing them. NVivo 8 was used to code the transcriptions and to derive broader themes shaped around core meanings and then to group together (Miles & Huberman, 1994). While the most useful aspects of in-service training programs are found as professional development, meeting new people and professional development, weaknesses of in-service training programs are poor planning, lack of qualified trainers and lack of practical implications according to teacher opinions. Teachers suggested that employing expert trainers, effective planning and more interactive contents are crucial for an ideal INSET activity. The study concludes with possible reasons for the problems in concern, and practical implications.

Sustainable organisational learning in sustainable companies

Article

Full-text available

Oct 2020
Learn Organ

Purpose The purpose of this study is to extend the knowledge on sustainable organisational learning (OL) in sustainable companies. Design/methodology/approach Sustainability is examined from an OL perspective and was based on Edward’s integral cycle of learning. An in-depth analysis of the literature was carried out, and a list of OL characteristics, such as openness to new ideas and participative policymaking, were compiled. To identify which OL characteristics are used for sustainability, a multiple-case study was designed for sustainable companies operating in the food and beverage industry. Findings This study found a wide variety of sustainable practices, such as experimentation and information-sharing systems, related to learning processes, and learning leadership appears to be the least developed dimension. It was also found that sustainable companies learn through social rather than reflective learning, in relationships with internal and external stakeholders, and by concrete actions to implement environmental and social impacts. Originality/value This study is one of a few that explore sustainable OL and contributes to categorising OL characteristics that sustainable companies use to facilitate and support sustainability in the mid–long term.

Segmenting the SME Market and Implications for Service Provision: A Literature Review

Technical Report

Full-text available

Jun 2012

Robert A. Blackburn

EMPLOYEES’ HETEROGENEOUS QUALIFICATIONS, INTERNAL R&D, FORMAL TRAINING AND INNOVATION PERFORMANCE

Article

Full-text available

Apr 2020
Int J Innovat Manag

Stephen Kehinde Medase

The capacity to generate knowledge and disseminate it in a firm is considered a primary strategic competence to attaining competitive gain. Knowledge literature reveals how relevant it is to increase interest in recognising and managing knowledge inherent in workforces and other firms’ dynamic capabilities that allow them to benefit from available knowledge within the milieu. In recognising the importance of employees’ baggage of knowledge, this study uses the Nigerian Innovation Survey for two waves, 2008 and 2010 of 1359 repeated observations of firms in the manufacturing and service sectors to examine the interplay of firms’ dynamic capabilities and innovation optimisation. It uses a recursive bivariate probit and a Tobit model for the estimations. Evidence shows that PhD, BSc, and Diploma associate positively and significantly with the ability of the firms to introduce product innovation. On the moderating estimations, there are mixed results regarding the blend of employees’ qualifications, training and internal R&D. Based on this, while the share of the highly educated workforce supports the introduction of product innovation, it does not, however, substantially increase the probability of firm-level innovativeness regarding process innovation. Although the blend of BSc and HND with R&D supports the propensity to introduce process innovation, it results in a decline with Diploma and R&D. The implication of the results offers management some investment choices on the initiation of formal training and the management of internal R&D through employees’ expertise. This study contributes to the existing literature on the relevance of employees’ different degrees being reinforced by training and internal R&D being boosted by employees’ qualifications in supporting the development of product and process innovation.

Direct from the horse's mouth: what bank employees feel about training and development programs in Indian banking sector

Article

Jan 2020

Athar Mahmood

Ndikimi i kapitalit human dhe social në aspiratat për rritje të firmës: analizë cilësore me NVM-të në Kosovë

Conference Paper

Nov 2019

Në këtë punim kemi përdor analizën cilësore për të hulumtuar mënyrën se si ndërmarrjet e vogla dhe të mesme përdorin kapitalin e tyre human dhe social për të rritur përformancen e tyre në kushtet e një mjedisi insitucional turbulent. Studimi bazohet në procesin e kërkimit cilësor duke bëre mbledhjen e të dhënave empirike në bazë të intervistave të thelluara me sipërmarrësit lidhur me aspirata për rritje dhe ndikimin e faktorëve kyç në formësimin e këtyre aspiratava. Rezultatet tregojnë se kapitali human dhe social luajnë një rol të rëndësishëm në formësimin e aspiratave ndërmarrëse. Poashtu, kapitali human dhe ai social shpesh ndërveprojnë dhe përdoren nga ndërmarrësit për të shmangur problemet e krijuara nga mejdisi insitucional jostabil. Rrjetëzimi dhe mirëbesimi si forme e kapitalit social në biznes janë përdorur nga ndërmarrësit në përgjigje të mangësive institucionale për të kompenzuar mosfunksionimin adekuat të institucioneve. Punimi përfundon me disa rekomandime te rëndësishme për politikat ekonomike dhe praktika menaxheriale.

Direct from the horse’s mouth: What bank employees feel about training and development programmes in Indian banking sector.

Article

Jan 2020

Athar Mahmood

Ảnh hưởng của cảm nhận tham nhũng tới dự định khởi sự kinh doanh của sinh viên đại học tại Việt Nam

Article

Full-text available

Nov 2019

Doanh Duong

THE ROLE OF STAFF TRAINING IN SME'S DEVELOPMENT: CASE BASED STUDY

Conference Paper

Sep 2017

The aim of this paper is to try to analyze the impact of staff training in the development of SME's in Macedonia. The main focus is the empirical analysis which is case-based and as a sample is taken 60 companies in the whole country. The data are gained through a structured questionnaire where we analyzed issues like the existence of person/department of HR, the frequency of staff training, the motives of conducting training, it is internal based training or they hire external experts, the aim of the training, the effect of training in the employees and how does all this impact's in the functioning and development of the SME's in Macedonia. From the result of the survey, we conclude that SME's are starting to acknowledge the importance of HRM in their daily functioning and especially the training of the staff because they can see the results of the training in a very short period of time. Introduction The aim of this paper is to analyze the importance of staff or employee training in the overall performance of small and medium enterprises. As we know SME's are a very important segment of the economy of each country as they employ a lot of people, more than the big enterprises. They also are a source of innovation and contribute to different aspects of the economy. A significant role in this has the human resources of the enterprises that are the staff or better said its employees. Proper and adequate management of human resources helps enterprises in particular small and medium enterprises in achieving their goals. As already known, a lot of functions are conducted during the process of managing the human resource such as recruitment, selection, development, and training. All these functions are interrelated and there should be a synergy between them that will result in the growth and development of enterprises in general. Our focus will be on analyzing the impact of staff ore employee training in the development of small and medium enterprises in Macedonia. Through our structured questionnaire we asked the enterprises about issues such as, do they have an HR person or department, do they conduct training, how often the training is conducted, the impact of training in the development of the enterprise and the development of the staff. The remaining of the paper is as follow: Section II reviews the exciting contemporary literature about training and development, section III describes the methodology and data, section IV presents and analyses the data of the survey, section V gives the conclusions of the paper and section VI is dedicated to references used in this paper.

Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria

Article

Full-text available

Oct 2019
Eur J Innovat Manag

Purpose The purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in manufacturing and service firms in Nigeria. The authors hypothesise that absorptive capacity measures including openness and formal training for innovation, and marketing capabilities encompassing new product marketing and marketing innovation are positively associated with innovation performance. Design/methodology/approach The authors examine commercialisation of innovation within the profiting from innovation (PFI) and dynamic capabilities (DC) framework and use data from the 2012 Nigeria Innovation Survey to test the hypothesis by means of a Heckman sample selection model. Findings The authors find that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. The authors also find that marketing capabilities as indicated by new product marketing and marketing innovation are positively associated with innovation performance. Research limitations/implications The authors acknowledge that firms undergo continuous changes and that there may be the presence of unobserved or unmeasured heterogeneity. Taking into cognisance that Nigeria is a federal state, cultural diversity and economic factors are likely to differ widely between geographical regions. Also, while the proposed conceptual framework offers a deeper understanding of innovation performance, examining how integrating activities of the R&D department, human resource department and marketing department affect innovation commercialisation is likely to provide more meaningful insights. Practical implications The role that inter-organisational learning and intra-organisational learning play in driving innovation performance provide managers with a basis for incorporating absorptive capacity building programs that boost employees’ ability to recognise and apply valuable external knowledge to commercial ends. Similarly, firms may benefit from offering marketing capabilities development programs. Furthermore, innovation policies in Nigeria are generally designed to focus on fostering innovation activities aimed at developing innovative output. Accordingly, government support explicitly targeting new product marketing and marketing innovation is likely to play a vital role in the successful commercialisation of innovation in Nigeria. Originality/value This study fuses the PFI and DC framework to examine why innovating firms may not necessarily succeed. This area of study has received scant attention in sub-Saharan Africa given that extant literature focusses on value creation as opposed to value capture.

The Role of Corruption in Mediating the Effect of Electricity Outages on Firm Performance in Nigeria: Evidence from Business Enterprise Survey

Preprint

Full-text available

Oct 2019

This paper examines the role of corruption in mediating the effect of electricity outages on firm performance across the six geo-political zones in Nigeria. It also assesses the effect of self-generation on firm performance across the zones The study employed a cross sectional Ordinary Least Squares (OLS) and Two-Stage Least Squares (2SLS) techniques to analyze data from the World Bank Enterprise Survey (WBES). Although, electricity outage is relatively low in the NorthEast region, further findings revealed that; firms in the southeast region experience the highest outage intensity of an average of 122.025times in a typical month, while those in the South-South region experience the lowest outage intensity of an average of 25.845times in the same period. The results indicate that, bribery does not mitigate the effect of electricity outages on firms across all the geo-political zones in Nigeria with exception of the NorthEast and the SouthEast zones. Contrary to the arguments in the literature that self-generation during power outages improves firm performance, evidence from this study suggests otherwise for some geo-political zones in Nigeria. For instance, this study discovered that self-generation has a negative effect on firm performance especially in the NorthWest , SouthWest and South-South geo-political zones. Also, while it is more profitable for firms in the North-Central, North East, and SouthEast regions to self-generate during power outages, those in the NorthWest , SouthWest and South-South geo-political zones are better off by relying on electricity supply from the public grid.

The Model of Capability Soft Governance in Family Business: Empirical Study in Bus Transportation Industry in Jakarta, Indonesia

Article

Full-text available

Oct 2019

This study aims to provide a clear explanation and answer on research gap of previous studies about the relationship between managerial trait from family business and managerial performance. This study also investigates the phenomenon about low managerial performance that triggered low continuity of bus industry belonged to family business in Jakarta, Indonesia. Model testing used in this study is multivariate analyses with Structural Equation Model (SEM), which is based on IBM SPSS AMOS version 22.0 software. The population in this study are managers who hold the position as supervisor and managerial control as many as 505 people. The number of samples is determined based on the sampling quota the number of bus unit ownership that reflects the size of family business. Questionnaires were distributed through direct distribution and by mail in June, July and August 2016. From the questionnaires distributed there left 283 according to the determination of the sample number. Based on SEM result for 9 proposed hypotheses, there are 6 accepted hypotheses and 3 rejected ones. Accepted hypotheses as follows; the influence of managerial trait in family business on soft governance capability which has coefficient value as 0.517 that shows positive and significant relationship since CR value is 2.705 and significant at 0.007, the influence of soft governance capability on managerial performance which has coefficient value as 0.506 that shows positive relationship since CR value is 6.183 and significant at 0.000. These results prove that soft governance capability has an ability to mediate the relationship between causalities of managerial trait variable on bus transportation industry in Jakarta, and it is significant with alpha value 5%. The results of this study will contribute to enrich the research on the topics of managerial performance, family business and human resource management

Why do some African firms export? The role of regional economic communities?

Article

Sep 2024

This article examines whether African manufacturing firms are strategically located for regional market access. The study uses a large dataset from the World Bank Enterprise Surveys and is based on 6800 firms from 26 African countries. The study findings show that firms located in countries with dual membership to Regional Economic Communities (RECs) exhibit a significantly higher propensity to export than firms in countries affiliated with a single REC. Additionally, our findings suggest that RECs enhance export participation by mitigating customs delays. However, constraints in the business environment can hinder the propensity of firms to export. In particular, the study identifies informal competition and power outages as substantial barriers that increase the cost of doing business and diminish the potential benefits of REC membership. These results underscore the importance of advancing economic integration across Africa to bolster export participation. Additional improvements in the domestic business environments should address the constraints that hinder firms' international competitiveness.

Exploitative training versus explorative training: the effect of strategic human capital investment on organizational performance

Article

Jun 2024
INT J MANPOWER

Purpose Notwithstanding its significance as a form of strategic human capital investment, employee training has not yielded consistent conclusions among scholars regarding its impact on organizational performance. Some studies deem it effective, while others regard it as ineffective. We contend that distinct types of training impact various facets of firm performance. Design/methodology/approach In this study, we categorize employee training as either exploitative or explorative. Specifically, we examine their impact on two aspects of organizational performance: short-term performance and long-term competence, using a quasi-experimental setting and a difference-in-differences (DID) method. Findings We find that exploitative training is more effective in improving firms’ short-term performance (e.g. firms’ sales revenue), while explorative training is more effective in enhancing firms’ long-term competence (e.g. firms’ innovation output). Originality/value The findings of this study illuminate concrete benefits of training for practitioners, suggesting that firms can strategically select employee training category to maximize returns on their investment in strategic human capital based on their strategic orientations.

Small Businesses Beyond Resilience: A Functional Structure Approach to the Growth of Small Businesses in India

Chapter

Aug 2023

India aimed to become a US$5 trillion economy and create additional 50 million employment opportunities. Small businesses contribute only 28 percent to total This industry and India’s GDP have the potential to expand more quickly. As such, the key question leading this research has been how can small businesses in India scale up? Small businesses are classified as micro, small, and medium enterprises and 110 million people in India are working in small businesses. This research employed participatory action research as a methodology with the researcher collecting the data being a practicing consultant to the small businesses. The research was conducted in a manufacturing small business engaged in power transmission motor belts. The results indicate that strengthening company resilience and giving small enterprises the tools, they need to recover from the COVID-19 epidemic requires adjustments in organizational cohesion and cooperation, flexibility, and resource management. Small enterprises might display creative and sensitive responses to the shifting market conditions. Nonetheless, for their efforts to be successful, small businesses must create and implement functional strategies and methods that are congruent. The research significantly contributed in the growth of motor belts unit and laid a foundation for other small businesses to follow the approach of growth through building functional structures.KeywordsEntrepreneursSmall businessesFunctional structuresThe Covid-19 pandemicResilienceEnterprise growth

Institutional and Organizational Capabilities as drivers of Internationalisation: Evidence from an emerging economy SMEs The International Journal of Entrepreneurship and Innovation

Article

Full-text available

May 2022

Internationalisation, the notion of cross border business, has become one of the key strategies for growth for SMEs in developing countries in recent years. Although many SMEs have used internationalisation strategies, there remains a gap of understanding the relative importance of factors influencing SMEs internationalisation particularly from developing countries perspectives. Drawing on the Resource Based View of the firm (RBV) theory, this research develops and validate the dimensions and sub-dimensions of the drivers of internationalisation. The study further identifies the relative importance of these dimensions from a developing country context. The study used a questionnaire survey to collect primary data from 212 Bangladeshi SMEs based on area wise cluster sampling. This study used partial least square based structural model (PLS-SEM) to assess the key drivers for foreign market entry by developing country SMEs. The findings confirm that the drivers of internationalisation represent a hierarchical construct consisting of three primary and eight sub-dimensions. Furthermore, this study suggests that SME internationalisation in a developing country is contingent up two categories of capabilities: critical organisational capabilities or resources (linked to internal processes largely associated with human resources) and critical institutional capabilities (associated with state level provision and the cultural fabric).

A Critical Assessment of Personnel Perceptions on Training and its Impacts on Job Performance in Nigerian Organizations: The Way Forward

Article

Full-text available

Aug 2021

Ruby Douglas

This study examines personnel perception on the training and development programmes obtainable in organizations. Personnel are always in need of training and development programmes to help develop their skills to attain organizational set goals and organizations invest money and time in these programmes, and also ensure that training programmes are organized at regular intervals in order to achieve higher job productivity from personnel who have undergone these training and programmes. But today, personnel perception of the training and development (T&D) process is appalling as management has unsystematically and unethically neglected the selection processes. As a result, personnel most often than not lament how ethnicity, nepotism and monetary bribery and corruption have disrupted the smooth functioning systematic processes of selecting personnel for training against laid down principles globally. It is in this vein that this study critically assesses personnel perceptions on training and its impacts on job performance in Nigerian organizations with the view of recommending the way forward. To achieve the purpose of this study, three hypotheses were formulated to guide the study. The questionnaire was one the instruments used for data collection. The second instrument: Focus Group Discussion (FGD) was also employed to complement the questionnaire method. The multi-stage sampling technique was employed to select samples in stages in Obio Akpor local government area in the metropolis of Port Harcourt, one of the major centers of economic activities in Rivers State. Three hundred respondents were selected as samples for the study. Chi square (X2 ) was adopted to test the hypotheses @ 05 level of significance. The results rejected the null hypotheses, and accepted the alternate hypotheses. The summary of the rejection of the hypotheses revealed that training and development (T&D) processes have been systematically neglected on the basis of ethnicity, nepotism and monetary bribery and corruption have disrupted the smooth functioning systematic processes of selecting personnel for training in Nigerian organizations against laid down principles globally. In addition, the effect of these factors brings with it some negative implications and consequences of low job productivity, high rate of personnel turnover and high cost. Based on these, the study concluded that an unsystematic approach of selecting personnel for training and development programmes affects training delivery styles, personnel as well as organizational productivity. As a result, the study recommends that the process and procedure of selecting personnel for training must be reviewed and management should rethink investing in their personnel and also repose some level of trust in them as this level of confidence will deter them from absconding on graduating from the recommended training and development programmes. Finally, management of organizations should give training and development of employees a priority in order to get the best out of the workforce as well as improving the organization‟s productivity.

DIFFERENT FACES OF A CLOCKWORK ORANGE

Chapter

Full-text available

Oct 2019

The Impact of the Entrepreneur's Educational Level on the Employment Creation by New Small and Medium Enterprises

Chapter

Jan 2021

This chapter examines the effects of different types of start-up rates on subsequent employment change. Longitudinal data on start-ups and employment in Portuguese regions in the period 1996–2007 is used for the analysis. The study addresses whether diverse types of new small- and medium-sized enterprise formation have heterogeneous effects on regional employment generation. It is found that, for the range considered, the seven types of start-ups led to significant and negative effects on the average variation of regional employment. It is also observed that these effects were more negative for start-ups with at least one business owner with higher education in engineering and for start-ups with at least one business owner with higher education in management. The last conclusion is that the share of highly skilled employees has a statistically significant and positive impact on the average employment change and, therefore, on regional development.

Dynamic Capability of the Firm: analysis of the impact of Internationalisation on SME performance in an emerging economy

Article

Full-text available

Jul 2021
Int J Emerg Market

Purpose-Internationalisation is considered as a key strategy for the growth of Small and Medium Enterprises (SMEs). This article examines the relationship between dynamic capability, SMEs internationalisation and firm performance in the context of emerging economies. The objective of this paper is to evaluate the impact of financial, asset and market expansion on internationalisation of SMEs. Design/methodology/approach-Using primary data from 212 SMEs from Bangladesh, structural equation modelling and mathematical (hierarchical reflective) model, the analysis is enabled the measurement of the casual relationship on the impacts of internationalisation. Findings-The results revealed that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in an emerging economy-Bangladesh. The paper has found internationalisation impacts on two dimensions (financial and non-financial) with eight defined indicators-higher sales, higher profit, assets maximisation, market expansion, competitive advantage, better reputation, better customer service and added knowledge. Originality/value of paper-Despite several studies that examine the relationship between SME internationalisation and firm performance, limited research exists on emerging economies. This is contrary to the fact that SMEs are one of the main vehicles for growth in those economies such as Bangladesh. In this research we use the theories of dynamic capabilities to conceptualise how internationalisation becomes a core SME capability for SMEs in an emerging economy. International Journal of Emerging Markets

Analysis of Effect of Microfinance on the Performance of MSEs in Amhara National Regional State, Ethiopia

Article

Feb 2021

This article examines the effect of microcredit on the performance of the micro and small enterprises (MSEs) in Amhara National Regional State, Ethiopia. A total of 340 MSEs were randomly selected, and a survey method was used. Average Sales volume was used to measure performances of MSEs. The findings suggested that the majority of MSEs in Ethiopia were engaged in manufacturing and urban agriculture sectors with a share of 48.53% and 26.76% of the total, respectively. Paired t-test analysis of the study confirmed that there was a significant difference between the sales, total asset, employment and net profit performance of MSEs after microcredit loan. The study concluded that loan size, savings and entrepreneurship training had a significant positive effect on the performance of MSEs. It is suggested that microfinancial institutions should strengthen their existing policies and strategies to increase credit to MSEs, enhancing the modalities of entrepreneurship training and mobilizing savings to achieve the envisioned targets of reducing unemployment and promoting the growth of MSEs in Ethiopia.

Training and performance in SMEs: Empirical evidence from large-scale data from the UK

Article

Oct 2020

This article examines the link between training and (perceived) actual/intended performance of small and medium-sized enterprises (SMEs) in the UK. We use the UK’s 2015 Small Business Survey containing large-scale data from more than 15,000 owner-managers of SMEs. Using the ordered probit analysis to test our hypothesis, we find that there is a positive and significant relationship between training and SMEs’ performance. When differentiating between training according to its type, we find that on-the-job and off-the-job training are positively and significantly related to performance; however, when these types of training are received simultaneously, the combined association becomes stronger than their individual effects.

Training, Competence, and Business Performance

Chapter

Jan 2011

This article examines the relationship between training, competence and performance of small and medium-sized enterprises (SMEs) in the context of e-business. Literature review combined with a triangulation of qualitative and quantitative methods were used to investigate these relationships. Data about e-business competences and performance in 339 SMEs in three European countries was combined with data about training supply from 116 providers of e-business related training. The empirical findings document a positive relationship between training, competence and performance and show that training explains variances in e-business competences and performance in terms of efficiency, complementarities, lock-in and novelty. The research has both theoretical and practical implications. It contributes to theoretical development by lending support to the idea that methodological issues are an important reason behind the lack of empirical support frequently reported in the literature. The study has practical implications for public policy makers, training suppliers and SME managers.

La gestion des ressources humaines dans les PME : une analyse systématique de la littérature ; Human resource management in SMEs: a systematic review

Article

Mar 2020

While human capital remains the most important strategic asset for ensuring business competitiveness and sustainability, what do we know about human resource management in SMEs ? This paper presents a literature review on human resource management (HRM) in SMEs. The 167 empirical articles found by searching he ABI/Inform and Repère databases are classified according to whether they relative to 1) HR practices used in SMEs; 2) their distinctive characteristics compared to large enterprises; 3) the determinants of the adoption of HR practices, 4) their impact on the performance of SMEs, and 5) the processes through which RH practices are modified. The results show that the main focus of the studies was to verify whether large enterprises HRH model applies to SMEs. The formalization of HR practices has also attracted attention. In general, few studies have been done on the various aspects of HRM and their results are conflicting. Several research directions are proposed.

Exploring the link between management training and organizational performance in the small business context

Article

Mar 2020

Antonios Panagiotakopoulos

Purpose This study aims to explore the impact of management training on organizational performance in the small business context to evaluate whether formal management learning interventions bring organizational benefits to small enterprises. Design/methodology/approach A qualitative approach was adopted consisting of 100 interviews with small firm owners/managers and employees working in 50 Greek small enterprises operating in the manufacturing and services sectors. Participant firms consisted of 25 small enterprises (9 manufacturing firms and 16 firms in the services sector) whose owners/managers have completed various formal training interventions (i.e. accredited seminars and workshops, business and management courses, etc.,) and 25 small enterprises (16 manufacturing firms and 9 firms in the services sector) whose owners/managers have not completed any sort of formal business training and have never attended formal management courses. Findings The findings revealed that management training in small businesses had a positive impact on organizational performance. In particular, those respondents that completed formal training interventions argued that their firms achieved increased profitability during 2017 and 2018; improved staff productivity; very low staff turnover rate; and enhanced staff satisfaction and motivation compared with the less-trained owners of small firms in the same sector. The participants pointed out that their formal education in business and management has enabled them to realize the importance of employee learning and job design for staff motivation, whereas it has helped them to manage change more effectively. Practical implications The present findings have major implications for practitioners (i.e. small firm owners/managers), as they point to a positive link between management training and organizational performance, thus encouraging them to invest in their self-development. Originality/value The existing evidence around the impact of management training on firm performance has been based mostly on quantitative research in large organizations. However, the available empirical studies fail to explore in-depth how formal management training can help smaller enterprises achieve improved organizational performance. Against this background, the present study sheds new light on this area.

CRM application in customer service management at the Big 4 banks in Vietnam

Article

Full-text available

Jan 2020

Tony Ng.

Currently, in Vietnam, the phrase "Customer Relationship Management" is known and recognized by many businesses such as banks, insurance companies and other service providers. The importance of Customer Relationship Management (CRM) and its potential to help them acquire new customers retain existing customers and maximize their lifetime value. At this point, close relationships with customers will need close coordination between marketing and IT departments to provide long-term maintenance for selected customers. This article refers to the role of Customer Relationship Management in the banking sector and Customer Relationship Management needs to increase customer value by using a number of analytical methods in CRM applications. CRM is a sound business strategy to identify the bank's most profitable customers and potential customers. Therefore, the management of customer relations in banks is one of the prerequisites for getting the bank to achieve the desired goals.

Effects of informal learning on work engagement

Article

Nov 2019
PERS REV

Purpose The purpose of this paper is to explore the relationships between task-based and interactional informal learning practices in small professional services firms and the moderating role of proactivity in the relationship. Design/methodology/approach Job demand-resources theory was used to develop theoretical arguments for a link between informal learning and work engagement. Data were collected from 203 employees in professional services firms and analysed using structural equation modelling. Findings Analysis of the data showed that opportunities to learn through task-based learning processes and through interactions with supervisors and colleagues were positively related to employees’ levels of work engagement. Furthermore, the strength of relationships between these informal learning practices and work engagement was influenced by employees’ proactivity. Research limitations/implications The limitations pertain to the non-random sampling procedure, cross-sectional nature of the study and the use of self-report measures. These limitations were mitigated by employing rigorous analytical procedures. Practical implications The results suggest that managers are able to influence the quantity and quality of informal workplace learning through strategies such as selecting employees who have a propensity for proactive behaviour, encouraging proactive behaviour, enabling experimentation and reflection and fostering positive interpersonal relations. Originality/value The study links two streams of research that have seemingly not been connected previously. The results suggest that small firms are sites with abundant potential for development of employees’ knowledge and skills and the associated experiences of work engagement.

An empirical study to explore the interplay of Managerial and Operational capabilities to infuse organizational innovation in SMEs

Article

Full-text available

Jan 2019

This study aims to explore and examine the relationship of managerial capability and operational capability to infuse organizational innovation in small and medium-sized enterprises by proposing and empirically validating a rigorous capability-based model. This study conceptualized managerial capability by considering decision making, management style, and people development whereas operational capability is conceptualized by considering process management and performance management under the umbrella of Resource-based view theory, dynamic capability and organizational capability perspective. Partial least squares structural equation modelling (PLS-SEM) is employed to test the model hypotheses and importance-performance map analysis (IPMA) provides information about the significance and relevance of the key dimensions of managerial and operational capability which explain and help to infuse organizational innovation. The empirical data is gathered through questionnaires distributed across 210 SMEs. The results exhibit strong and significant relationships among managerial capability, operational capability and organizational innovation where majority of the hypothesis are supported by the empirical results. The results are practical in nature as they may help SMEs to gain a holistic view of the relationship between managerial and operational capability and their influence on organizational innovation.

The Impact of Firm-Provided Training on ProductionTesting for Firm-Size Effects

Article

Full-text available

Aug 2002

Jan De Kok

The returns to firm-provided training are established, taking account of three possible firm-size effects: the HRM (Human Resource Management) effect, employee selection effect and scale effect. Using panel data on 173 Dutch firms, support is found for the existence of the HRM effect: training support per working day (the average time a firm spends on setting up and coordinating a training programme) has a positive influence on the benefits of training. Small firms provide, on average, less training support per working day than their larger counterparts. In combination with the HRM effect, this implies that small firms benefit less from firm-provided training.

Small Firms' Training and Competitiveness. Building Upon the Small business as a Learning Organisation

Article

Full-text available

Apr 1997

Allan Gibb

PROFESSOR ALLAN GIBB IS CHAIRMAN OF the Small Business Centre at Durham University Business School, England. This paper begins with a review of the present concerns to link training with competitiveness in the United Kingdom and Europe. It notes that many of the issues raised in this respect are over 20 years old. It suggests therefore a new way to approach the problems, namely by considering the learning needs that will reduce the transaction costs of the small firm operating its stakeholder environment. After defining the concept of learning it makes the distinction between contextual learning (via experience) and the associated tacit (subjective) knowledge that is gained by this, and objective and abstract knowledge frequently purveyed by teachers. It then explores the issue of the SME as a 'learning company' and argues that the key to its learning is via the transactional and other relationship that it has with its immediate network environment. The concept of learning circles and learning partnerships is introduced as a basis for exploring in some detail the issue of 'who' needs to learn. It is argued that the learning needs of those who effectively dictate the level of the playing field for achieving small business success are very high. The nature and importance of this learning need is then explored for key groups. It is argued that the benefits to society of this holistic approach to learning is a reduction in the 'discontinuities' between the SME and its environment and therefore a lowering of transaction costs.

Small business training and development in the United States

Article

Full-text available

Dec 1999
J Small Bus Enterprise Dev

Fifty eight per cent of reporting companies have a shortage of skilled workers and 64 per cent of manufacturers believe entry-level workers lack the necessary skills to positively impact their company. The most recent reports estimate that employers spend around one per cent of payroll on training. Lack of investment in training is an often-cited reason why companies in the USA. are losing market share to foreign competitors. This study provides data regarding the extent to which training is conducted, formally and informally, in a sample of small businesses. According to the results of the study and a review of current literature, employees need training in a variety of areas and are not receiving adequate training in today’s small business environment. The study specifically includes information with respect to: (1) the types of training that small business owners believe they need to be more successful; (2) the various training methods currently used in training both employees and managers; and (3) the primary training resources used by the small businesses. The study was intended not only to determine what is happening in training and development in small businesses, but also to make owner-managers more aware of the importance of training to their long-term success. If owner-managers of small businesses worldwide both read and apply the results of the study to their own individual small businesses, they could be expected to increase the level of their training programmes and change their overall attitude towards the importance of training.

How To Compete: The Impact of Workplace Practices and Information Technology on Productivity

Article

Full-text available

Mar 2002

Using data from a unique nationally representative sample of businesses, the Educational Quality of the Workforce National Employers Survey (EQW-NES), matched with the Bureau of the Census' Longitudinal Research Database (LRD), we examine the impact of workplace practices, information technology, and human capital investments on productivity. We estimate an augmented Cobb Douglas production function with both cross section and panel data covering the period of 1987-1993 using both within and GMM estimators. We find that what is associated with higher productivity is not so much whether or not an employer adopts a particular work practice but rather how that work practice is actually implemented within the establishment. We also find that those unionized establishments that have adopted what have been called new or "transformed" industrial relations practices that promote joint decision making coupled with incentive based compensation have higher productivty than other similar non-union plants, while those businesses that are unionized but maintain more traditional labor management relations have lower productivity. We also find that the higher the average educational level of production workers or the greater the proportion of non-managerial workers who use computers, the higher is plant productivity.

The evolution of strategic organizational training

Article

Jan 1997

The Relationship between Training and Small Firm Performance; Research Frameworks and Lost Quests

Article

Oct 2000

DEAN PATTON IS PRINCIPAL LECTURER in corporate strategy, Sue Marlow is principal lecturer in industrial relations, and Paul Hannon is academic director at the Leicestershire Centre for Enterprise, all at de Montfort University, England. In recent years it has been acknowledged that the take-up of training and development opportunities within the United Kingdom has been generally poor and that this has had a detrimental effect upon national productivity and competitiveness (Keep and Mayhew, 1997). It is noticeable that smaller firms in particular are reluctant to engage with formal training initiatives regardless of the incentives offered (Maton, 1999; Jennings and Hawley, 1996; Stanworth and Gray, 1992). To support greater take-up of such initiatives, policymakers and academics have sought to find a relationship between training and the performance of firms. The extant literature on this subject is inconclusive and a number of criticisms have been made witlh reference to the research design and methodology employed (Westhead and Storey, 1997). This paper proposes that a more focused research design to the subject is required and puts forward a model that would address many of the concerns raised (Westhead, 1996; Westhead and Storey, 1997). It is suggested that the search for statistical significance may actually be inappropriate, given the number of variables in the relationship. The model would, however, provide a framework within which the importance and interaction of such variables can be more clearly analysed and evaluated.

Higher level skills training and SMES

Article

Jan 1998

Enhancing Technology and Skills in Small-and Medium-Sized Manufacturing Firms: Problems and Prospects

Article

Apr 1996

DR. PETER SCOTT IS CURRENTLY A researcher at the University of Cardiff, Wales, Dr. Bryn Jones, Professor Alan Bramley and Dr. Brian Bolton are all with the University of Bath, England. This paper discusses the results of, and issues arising from, an interdisciplinary study of technology management expertise in a sample of smalland medium-sized manufacturing establishments in South-west England. Many mature companies suffer from an unrecognised deficiency in high-level technological skills. Although examples of good practice are identified and enabling factors discussed, the stimuli to improvement both within, and external to, the firm are weak overall. Changes in the practices of SMEs themselves, and of external agencies, will be necessary to facilitate progress.

Workforce training: Are small firms different?

Article

Jun 1995
J Eur Ind Train

The British CBI introduced national educational and training targets in 1991. Small firms might be regarded as unlikely to respond to them because of, for example, lack of time, cost constraints and fears of other firms poaching their employees. Is this true? Surveys of South London employers in November 1992 and February 1993, which were carried out for South London Training and Enterprise Council (SOLOTEC), provide some interesting insights on the relative standards of training in small businesses. Reports findings which show that size does matter and goes on to argue that there could be a different set of training dynamics in many small firms. Poses a culture of rational and incremental change in training activity in large firms against a more visionary approach in small firms to explain some curious evidence on the uptake of National Vocational Qualifications (NVQs).

Small Firms' Training: The Reluctance Prevails

Article

Oct 1994

Alan Hankinson

During the period 1990-94 a survey of small firms' attitudes to training was undertaken in south coast Hampshire. Key personnel in a sample of 48 firms with up to 100 staff were all interviewed. The results revealed that effective training was not high on the agenda of priorities. Training awareness far exceeded the application. Training was regarded as an expense rather than an investment. The smaller firm's persistent neglect of this area of management could prove to be one of the major problems of the late 1990s.

Identifying the skill requirements of the workforce in SMEs: Findings from a European Social Fund project

Article

Jun 2001
J Small Bus Enterprise Dev

As market trends evolve and core business activities shift into new territories, there is a need for companies to facilitate a corresponding change in the skills base of the workforce. This paper reports the findings of a European Social Fund (ESF) Objective 4 project, which was carried out throughout 1998/1999. Fourteen innovative, technology-based small and medium-sized enterprises were interviewed with the aim of investigating the processes currently in place to aid in the establishment of a skilled workforce, and the extent to which future skill requirements were identified. The research methodology involved a series of semi-structured interviews with owner-managers, managing directors and other staff within the sample companies. The first interview, involving 20 companies, allowed general company information to be collected and interviewees were questioned about business planning and those factors considered to be of strategic importance. The second interview, involving 14 of the original 20 companies, investigated human resource issues in depth. Respondents provided information about staff recruitment, retention and training and the extent to which these issues were integrated into strategic plans. The study used Investors in People (IiP) guidelines to identify potential models of best practice and therefore to aid in the production of the research questionnaire. It was found that the majority of respondent companies did not use a sophisticated approach to identify current and future staffing needs. Recruitment and staff development were addressed as and when required, thereby catering for immediate operational needs. Only three of the 14 companies had formal training plans in place, which integrated human resource plans with long-term strategic business plans. An earlier version of this paper was presented at the 23rd Institute for Small Business Affairs Policy and Research Conference, November 1999, Leeds, UK.

Human Resource Management—A Survey of Practices within Family and Non-Family Firms

Article

Aug 2001
J Eur Ind Train

Much of the literature relating to human resource management (HRM) has attempted to demonstrate that the “Human resource” is the most valued asset in a company. Large companies have revolutionised their approach to the training and development of their personnel in order to maximise their “competitive edge”. Hotly debated is whether investment in “good HRM” is linked to commercial success. However, very little is known about HRM practices within the small- to medium-size business (SME) and even less is known about the practice within a family business. This survey describes the HRM practices of SMEs (both family and non-family businesses) in Northern Ireland. Comparisons between the groups are made and findings suggest that family businesses practice HRM differently than their non-family counterparts. Implications for the training and development of these two groups question whether family businesses need to be treated as a “special case”.

Employers’ discovery of training: self-development, employability and the rhetoric of partnership

Article

Feb 1999

Jerry Hallier

Explores recent expressions of support by employers for the importance of training in creating business success. Argues that this change in posture cannot be explained in terms of a growing recognition of the weaknesses of the labour force in intermediate-level skills, because the new focus is on personal development, self-management and “correct” attitudes rather than technical skills. Shows that while the changes in the valuation of training are consistent with Anglo-Saxon notions of business management, they are more reflective of attempts to reshape the employer-employee relationship. Observes that competitive pressures on organizations over the last 20 years have undermined traditional expectations of career opportunity and job security. This context has created the conditions under which this emphasis on normative training helps in the development of a new kind of psychological contract based on a rhetoric of partnership. Concludes that employers’ discovery of training is more about finding ways to secure employee commitment in uncertain times than about transforming skill levels.

Management Training and Small Firm Performance: Why Is the Link So Weak?

Article

Jul 1996

PROFESSOR DAVID STOREY AND DR. Paul Westhead are with the Small and Medium Enterprise Centre at Warwick University, England. To improve the internal efficiency and business performance of small and medium-sized enterprises, a number of training initiatives have been introduced in the United Kingdom over the last decade. This has been based on the provision that training can be a powerful agent of change, facilitating and enabling a company to grow, expand and develop its capabilities and so enhance profitability. This paper seeks to review research which has examined the relationship between small firm performance profits, growth or survival and participation in management training. Although the prime focus of the current paper is upon the United Kingdom context, an earlier paper examined research literature from elsewhere in Europe, Canada, the United States, and Australia. Its conclusion was that the relationship between participation in management training and small business performance is currently not well established. The current paper briefly reviews these issues but is primarily concerned to establish reasons for the weak relationship between management training and small business performance in well-conducted research.

IIP and SMEs: Awareness, benefits and barriers

Article

Feb 2002
PERS REV

This paper considers the impact of the Investors in People (IIP) Standard upon small- to medium-sized enterprises (SMEs) in the Midlands. The paper describes IIP, then considers the significance of SMEs and the impact of training and development in that sector. The paper then presents an analytical framework, firmly rooted in a literature review, that provides the basis for an examination of the reasons why SMEs might commit (or fail to commit) to IIP, the difficulties encountered and the benefits received. Our empirical findings are discussed in the context of this framework. These findings are based on questionnaire responses from almost 600 SMEs, and interviews with promoters of IIP. Some key responses are broken down according to size-band and/or growth-orientation. In addition, follow-up interviews were conducted with selected firms, ranging from IIP enthusiasts to rejecters. This study therefore combines quantitative data with qualitative input. The attitudes and experiences of the respondents offer fresh insight into the appropriateness of IIP as an organisational development tool for the SME sector. The SME support network in England and Wales is undergoing a critical transition. The role of the Training and Enterprise Councils in promoting IIP to SMEs also comes under scrutiny, and our study has lessons for the promotion of IIP by the new learning and skills councils.

Human Resource Development in Small Firms: The Role of Managerial Competence

Article

Jun 2001

This paper offers a critique of existing approaches to training in small firms. It is primarily concerned with the relationship between organizational and managerial development and examines the contribution and value of training processes. The underlying premise is the belief that training can and should be a powerful agent of change, facilitating and enabling a company to develop its capabilities, thus enhancing profitability.

The Relationship Between Firm Size and Firm Growth in the US Manufacturing Sector

Article

Jun 1988

Bronwyn H. Hall

This paper investigates the dynamics of firm growth in the U. S.manufacturing sector in the recent past. I use panel data on thepublicly traded firms in the U. S. manufacturing sector: from auniverse of approximately 1800 firms in 1976, I am able to follow mostof them for at least three years, and over half of them from 1972 until1983. I consider several problems, both econometric and substantive,which exist in analyzing this kind of data: the choice of size measure,the role of measurement error, and the effect of selection (attrition)on estimates obtained from this sample.Using time series methods, suitably modified for panel data (wherethe number of time periods per observational unit is small), I analyzethe behavior of employment over time and find that most of the change inemployment in any given year is permanent in the sense that there is notendency to return to the previous level. Year-to-year growth rates arelargely uncorrelated and there is almost no role for measurement error.I find that Gibrat's Law is weakly rejected for the smaller firms in mysample and accepted for the larger firms; Other measures of sizeproduce essentially the same results.Correction for attrition from the sample changes the resultssomewhat: I use a simple model in which firms leave the sample becausethey are small and/or undervalued (since many exits are acquisitions)and find that Tobin's Q, the raio of market valuation to the value ofthe underlying assets of the firm, is a much better predictor of exitprobability than size alone (firms with low Q are more likely to exitthe sample). When I use this estimate of the probability of exit tocontrol for selection bias, Gibrat's Law is weakly rejected for firms ofall sizes and there are significant positive effects on firm growth fromboth investment in physical capital and R&D expenditures, with R&Dhaving a somewhat higher net effect.

Empirical Evidence on Determinants of Firm Growth

Article

Feb 1992
ECON LETT

Models of firm growth are estimated for a sample of manufacturing, sales and service firms. Firm growth is negatively related to firm size and firm age, and is lower in single-establishment firms than in multiple-establishment firms.

On-the-Job Training, Establishment Size, and Firm Size: Evidence for Economies of Scale in the Production of Human Capital

Article

Jul 1999

Oi argues that the costs of monitoring employees rise with the value of the entrepreneur’s time. One way of economizing on these monitoring costs is through the provision of on-the-job training for new employees. In this paper, we argue that differences in training by firm- and establishment-size arise from cost advantages for larger firms; specifically, large firms and establishments have economies of scale in the provision of formal training and greater opportunities for informal coworker training. A unique data set is employed to estimate the relation among employer size and the intensity, duration, and composition of various training measures. It is possible that these cost advantages, which lead to greater amounts of training for employees of large firms, may explain, in part, the wage rate–firm size differential.

The Growth and Failure of U. S. Manufacturing Plants

Article

Feb 1989

This paper examines the patterns of postentry employment growth and failure for over 200,000 plants that entered the U. S. manufacturing sector in the 1967–1977 period. The postentry patterns of growth and failure vary significantly with observable employer characteristics. Plant failure rates decline with size and age as do the growth rates of nonfailing plants. The expected growth rate of a plant, which depends on the net effect of these two forces, declines with size for plants owned by single-plant firms but increases with size for plants owned by multiplant firms.

Ownership, Organization and Regional Dependence in the Scottish Electronics Industry

Article

Feb 1976

P.J. McDermott

McDermott P.J. (1976) Ownership, organization and regional dependence in the Scottish electronics industry. Reg. Studies 10, 319--335. Recent studies of Scottish industry have indicated the limited achievements of local enterprise, the low multiplier impact of indigenous establishments as a result of local market dependence, and increasing external control of manufacturing. These elements of the regional problem in Scotland are examined with reference to electronics, an industry which has acted against structural disadvantage through substantial employment growth. The origins, ownership, and structure of the industry belie the existence of an indigenous electronics complex in Scotland, reflecting instead its origins in regional development policies. A detailed study of the electronic components sector shows high levels of local linkage to be most characteristic of Scottish-owned companies, betraying their dependence upon externally-controlled customers. The form of organization at the level of the individual firm associated with lower levels of dependence upon local markets is that which reflects membership of a wider corporate group.

Testing "Gibrat's Law" for Young Firms - Empirical Results for West Germany

Article

Feb 2000
SMALL BUS ECON

The present paper deals with the question whether "Gibrat's law" is applicable to firms founded between 1989 and 1994 within the West German manufacturing sector or not. We find that firm size follows approximately a log normal distribution. Within the context of the econometric analyses conducted in the present study, firms are subdivided into young firms belonging to technology intensive and non-technology intensive branches as well as in different size classes. A method introduced in Chesher (1979) is used to explore "Gibrat's law" in order to examine the influence of firm size on growth. Using data from the ZEW-Foundation Panel (West), "Gibrat's law" is rejected for the group of young firms belonging to technology intensive branches as well as for those operating in non-technology intensive branches in all periods examined but no significant differences between both firm groups can be observed. This confirms the results of a number of empirical studies over the last few years, indicating that smaller firms have larger growth potential than larger ones. Copyright 2000 by Kluwer Academic Publishers

Making A Miracle

Article

Feb 1993
ECONOMETRICA

Robert E. Lucas Jr

This lecture surveys recent models of growth and trade in search of descriptions of technologies that are consistent with episodes of very rapid income growth. Emphasis is placed on the on-the-job accumulation of human capital: learning by doing. Possib le connections between learning rates and international trade are discussed Copyright 1993 by The Econometric Society.

Training and Performance in Small Firms

Abstract

No full-text available

Recommended publications

Export Performance of Small British West Country Firms

Contribución del tamaño, edad y perfil financiero de las constructoras del País Vasco a la competiti...

Herd size - Productivity relationship and returns of sale in milk production

Austrian Manufacturing Reports Optimistic Investment Plans for 1999 Despite Slower Growth. Results o...