Showing papers in "Journal of Small Business Management in 2002"

Interfirm Alliances in the Small Business: The Role of Social Networks

Abstract: In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast United States. Results indicate that the social networks of senior executives account for 11–22 percent of the variance in the degree to which firms engage in alliances, depending on the type of alliance. Results also show that the number of interfirm alliances is positively related to several networking properties (propensity to network, strength of ties, and network prestige). Findings are discussed in the context of network theory, social embeddedness, and the overall implications for management researchers and practitioners.

Prospecting for Strategic Advantage: The Proactive Entrepreneurial Personality and Small Firm Innovation

Abstract: Our study proposed and tested an entrepreneurial process model that examined the interrelationships among a small firm owner's personality, strategic orientation, and innovation. In the first part of the model, it was posited that a proactive personality would directly influence a prospector strategic orientation. This type of strategic orientation would then be a key factor in determining the type of innovations introduced and implemented within the business. Using a sample of 107 small business owners, results revealed that the prospector strategy orientation mediated the relationship between proactive personality and three types of innovations: innovative targeting processes, innovative organizational systems, and innovative boundary supports. Implications for small business managers as well as future research directions are discussed.

Who Are Ethnic Entrepreneurs? A Study of Entrepreneursapos; Ethnic Involvement and Business Characteristics

Abstract: This article proposes that the term “ethnic entrepreneur” should be defined by the levels of personal involvement of the entrepreneur in the ethnic community instead of reported ethnic grouping. It hypothesizes that significant differences in personal and business characteristics will surface between the most community-involved and least community-involved ethnic entrepreneurs. T-tests were done on 112 Asian and Latino entrepreneurs split into top and bottom quartiles on the personal involvement scale. Results showed several significant differences between the two groups on variables relating to the entrepreneurs' background characteristics, business-related goals, cultural values, business strategies, and business performance.

Relationships among Strategic Capabilities and the Performance of Women‐Owned Small Ventures

Abstract: This study of small, life-style ventures owned by women focuses on the strategic, firm-level factors related to business performance. A theoretical model drawing on the resource-based theory is developed and tested empirically. The model includes strategic capabilities, management styles, and their relation to performance. It is tested empirically on a sample of 220 Israeli female business owners. Analysis reveals that life-style venture performance is highly correlated with certain aspects of the business owner's skills as well as the ventureas resources. Paradoxically, the owner/managers in the sample rate their skills and their venture's resources as being weak in precisely those areas that correlate positively with business performance. These findings suggest that performance of life-style ventures owned by women depends more on marketing, financial, and managerial skills than on innovation.

Entrepreneurship Training for Emerging SMEs in South Africa

Abstract: This study analyzes the course content, training methods, and profiles of trainers and trainees of SME service providers in the Northern Province, South Africa. The findings include the need for training as well as the existence of certain deficiencies in the present entrepreneurship training. The conclusion emphasized the importance of a comprehensive entrepreneurship-training program for successful small business enterprises. Recommendations that could help sustain emerging small business enterprises are presented to SME stakeholders.

Empirical Analysis of Business Growth Factors Using Swedish Data

Abstract: Empirical research conducted on the U.S., German, Australian, and Scottish economies has shown that age, size, location, legal form, and industry are related to business growth. Much of this resear...

Perceptions of SME Growth Constraints in Nigeria

Abstract: This study investigates the factors that influence the growth, performance, and development of small and medium-sized enterprises (SMEs) in Nigeria and what implications these factors have for policy. The study is justified for a number of reasons. Most importantly, since its independence, the Nigerian government has been spending an immense amount of money obtained from external funding institutions for entrepreneurial and small business development programs, which have generally yielded poor results (Mainbula 1997). Given the large domestic market and plethora of raw materials in Nigeria, there is little progress in terms of manufacturing value-added products, either for import substitution, exports, or employment creation. It therefore becomes pertinent to identify the factors that impede small business development in Nigeria. For this study, 32 small business entrepreneurs were interviewed across the country. In addition, other sources were interviewed to check and confirm the validity of the entrepreneu rs' responses. Research Methodology A mixed-method strategy is one in which more than one method of approach is used in data collection and analysis while conducting research (Romano 1989). This approach is similar to what Mikkelsen (1995) and Denzin (1978) described as triangulation. The multiple-method strategy was adopted for this study to reduce the possibility of personal bias by not depending on only one method of approach or response coming from only one firm or sector. Adopting this method of approach supports the authenticity of the study. Both qualitative and quantitative data were used in a variety of ways, including a detailed overview of survey results in terms of a general profile and a model of Nigerian small firms. Semi-structured interviews based on open-ended, flexible questionnaires and some structured interviews were conducted with several groups of people interested or involved with the small business sector in Nigeria. The idea behind this was to obtain cross-referencing data and some independent confirmation of data, as well as a range of opinions. Input from the following groups were solicited: (1) government officials who formulate and implement policies on SME promotion and industrial development in Nigeria; (2) officials responsible for raw material supply to small companies; (3) managers of other large scale businesses operating in the same sector and economy as the SMEs; (4) representatives of development banks who may be requested to give loans to small-scale businesses; (5) industrial experts and consultants who conduct research and are well-informed about the present state of the industrial sector in Nigeria; and (6) selected customers who buy and distribute products as retailers to the public or to other small businesses or larger firms. The Perceptions of Constraints on Small Business in Nigeria What the 32 small firms studied in Nigeria considered to be the main constraints on their firms' growth and overall performance are presented in Table 1. In addition, some entrepreneurs indicated that government policies and attitudes of public officials adversely affect their businesses, especially the harsh economic policy of the structural adjustment programme (SAP) implemented by the government in 1986. The policy caused the value of the national currency to decline. Most small businesses could not afford to train their workers, and manufacturers found it difficult to obtain foreign exchange to order or purchase machinery and spare parts. There is also the problem of frequent harassment by government officials who extort money from the businesses. Poor infrastructure, including bad roads, inadequate water shortage, erratic electric supply and a poor telecommunications system are additional obstacles. Lack of these facilities cost most firms higher overheads because they have to be responsible for obtaini ng such facilities at their own expense. …

Craft Retailers’ Criteria for Success and Associated Business Strategies

Abstract: This research was designed to fill the void in understanding how art–related retailers define and achieve success. A two–phase data collection process was implemented. Preliminary personal interviews were conducted with 12 craft retailers followed by a mailed survey to 1000 craft retailers in nine southeastern U.S. states. Factor analysis was employed to reduce the number of items for defining success. Cluster analysis followed to develop empirical groupings of craft retail businesses based on the success factor scores, of which four different groups were identified. Multivariate analysis of variance (MANOVA) and analysis of variance (ANOVA) were used to compare retail clusters related to business strategy variables of competitive strategies, product assortment, pricing, and distribution strategies, and networking activities. Significant differences were found in the craft retailers’ business strategies used to achieve success. Craft retail entrepreneurs were found to define success with both traditional criteria such as profit and growth and also with intrinsic factors such as personal satisfaction and the opportunity to elevate the craft tradition. Successful small craft retail firms offered more focused product assortments of specialized craft products, implemented more differentiated strategies of stocking unique crafts in their assortments, as well as offering unique services to educate consumers about crafts, craft artisans, and a region’s culture. Craft retailers who reported greater success did not engage in competitive pricing. Collaborative strategies included networking among family, friends, and business peers.

New Product Development Processes in Small and Medium‐Sized Enterprises: Some Australian Evidence

Abstract: This article examines the new product development process (NPDP) in Australian small and medium-sized enterprises (SMEs). Findings from a sample of 276 innovative Australian SMEs suggest that marketing-related activities were undertaken less frequently and were less well executed than technical activities in developing new products. However, marketing-related activities were important in distinguishing between successful and unsuccessful new products. In addition, resource and skill availability and new product planning were positively associated with the quality with which NPD activities are executed. Further, the existence of a new product strategy seemed to have a significant positive impact on the quality of NPD activities.

Planning Behavior Variables in Small Firms

Abstract: Much of the empirical data that identifies the incidence of planning in small firms and the variables associated with that planning is based on small samples subject to geographic and industry constraints. The intent of this article is to partially overcome those limitations by testing relationships using results from a large Australian-wide, multiple-period sample. For each of three years, the frequency with which firms maintained documented business plans was determined and tested for associations with a range of traditional "business structure" demographic variables and a group of "management structure" variables. Results support expectations that size, volume, training, intention to change operations, and the major decision-maker's education are positively associated with business planning. Results also indicate that a significant number of firms change planning behavior states over time. ********** Dealing with the future is an essential activity in the management of all businesses regardless of size. Because planning can help a firm structure future expectations, it is not surprising that there is strong support for the notion that planning generates some positive outcomes for firms (Schwenk and Shrader 1993). However, in the research on these outcomes, the empirical data identifying the extent to which planning takes place and the variables associated with planning often are based on small samples subject to geographic and industry constraints. For example, Matthews and Scott (1995) obtained their findings from 130 small businesses located in one United States city. Risseeuw and Masurel (1994) used a sample of 1,211 businesses located in the Netherlands, but the sample was comprised entirely of real estate firms. The absence of large samples with a substantial variation in business characteristics such as industry and location has made drawing inferences from previous planning studies to other busine ss populations difficult. As Matthews and Scott (1995) conclude, 'Additional studies with larger samples are needed.., to more fully explain sophistication of planning in small and entrepreneurial firms" (p. 49). The objective of this study was to partially overcome the small sample problem by examining a large, multiple-period sample in a database collected by the Australian Bureau of Statistics (ABS). Interest in the study of planning in small firms seems to have emerged for two reasons. First, there is a general belief that planning, because it is so prevalent in large firms, is a good management practice. This is supported by the belief, reflected in most business practice research, that rational economic behavior dictates the structured evaluation of alternatives (as present in traditional planning activities) as the dominant decision-making approach in firms of all sizes (Gibson 1997). Because large organizations that use sophisticated planning systems are seen to be successful, "entrepreneurs are urged to follow suit and install planning systems" (O'Neill, Saunders, and Hoffman 1987, p. 38). When smaller firms are observed to "not engage in the type of structured planning reflected in . . . normative models" (Shuman and Seeger 1986, p. 8), they often are regarded as exhibiting inappropriate behavior. This insistence on the large firm model continues to be dominant despite the frequent warnings that e xtending large firm practices to small firms is not always appropriate (O'Neill, Saunders, and Hoffman 1987; Glen and Weerawardena 1996). Second, and more importantly in the context of small enterprises, there is a growing body of research that finds some association between planning activity in small businesses and a variety of performance measures. The underlying construct in such studies concentrates on either the content of the plans or the process of planning (Rue and Ibrahim 1998). However, Matthews and Scott (1995) suggest that in the planning literature the most widely used dimension of strategic planning has been the mere existence of planning documents (formality). …

Success Factors in SMEs' Internationalization Processes: An Italian Investigation

Abstract: International Competitiveness of Small Firms Only recently has the theoretical debate on internationalization focused more deeply on the specific features of small firms in an attempt to establish a general theory (Julien 1994). The "classical" literature on the subject had an abstract, general firm model as its reference point and implicitly considered the large firm as its object of analysis. However, a series of studies has underlined that size is no restraint in the international competitiveness of small firms, both because of their important contribution to the trade balance of their respective countries (Hardy 1986; Beamish and Munro 1986) and because sales abroad have been shown to be unaffected by firm size (Cavusgil and Tamer 1980; Edmunds and Khoury 1986; Ali and Swiercz 1991; Julien, Joyal, and Deshaies 1994). Indeed, SME's export sales can also reach high levels (Calof 1993) because of the difficulties encountered on the domestic market that drive them to enter the international marketplace (Czinkota and Johnston 1983). Small firms, however, cannot enjoy all the options in the internationalization process outlined in the literature (Baird, Lyles, and Orris 1994; Stampacchia and De Chiara 1996). For example, small firms located in southern Italy are known to have a structural handicap in the form of limited financial resources. It is therefore unrealistic to expect them to follow an international development path based on direct foreign investment or to take other initiatives requiring substantial capital. (1) It has also been shown that under certain circumstances, an entrepreneurial culture resistant to change, an increasingly centralized behavior and other country-specific factors can hinder the international development of small firms (Calof and Viviers 1995; Caruana, Morris, and Vella 1998; Minguzzi and Passaro 1997, 2001). Consequently, among small firms located in southern Italy, export is still the most widespread form of internationalization. Role of Support Services Since the late 1970s, the role and significance of support services for the internationalization of small firms have been widely investigated in the literature (Czinkota and Tesar 1982; Valikangas and Lehtinen 1994). These approaches assume greater importance if the determinants of the demand for such services are analyzed in relation to the needs of small firms (De Noble, Castaldi, and Moliver 1989; Moini 1998) or in relation to their export performances and profitability (Sarder, Ghosh, and Rosa 1997; Weaver, Berkowitz, and Davies 1998; Hart and Tzokas 1999). A company's ability to develop know-how and sell their products on international markets is seriously jeopardized by diseconomies of scale when the degree of specialization of the skills cannot reach a certain threshold. The main obstacle to international activity often lies within the firm itself rather than outside it (in terms of market opportunities), as it has to do with internal resources and limited capacities (Wright 1993; Bijmolt and Zwart 19 94). Very often, small firms attempting to expand beyond their national market have no choice but to outsource a given service. Studies of supply services to SMEs based on analysis of primary and secondary benefits deserve mention. This literature has generated an interesting debate on the relationship between the secondary effects of support programs and SMEs export growth (Wood 1994, 1999; Chrisman and McMullan 1996). The implications drawn from these studies have contributed to the debate on service supply policy. Other studies have probed, instead, into the classification and typology of internationalization services (Bello and Williamson 1985). Buying support services can improve international competitiveness for SMEs. Country-specific factors can be exploited (comparative advantage) and distinctive competencies increased (competitive advantage) following an effect distribution which depends on the firm's learning capacity (De Chiara and Minguzzi 1996). …

The Use of Electronic Commerce by SMEs in Victoria, Australia

Abstract: Background Recent media hype about the Internet, e-commerce, computing, and telecommunications companies potentially has increased the awareness of electronic commerce. With further developments in electronic business technologies surely coming, it seems likely that many more sectors of the economy may engage in some form of electronic business. However, the findings of many surveys conducted worldwide suggest that e-commerce is not being adopted as readily by small-to-medium enterprises (SMEs) as one might have expected. The size of the company and the perceived importance of e-commerce to business functions consistently have been noted as possible factors in determining whether businesses get involved in e-commerce. For example, Weiss (2000) and Ruth (2000) both suggest that the adoption of e-commerce depends on the size of the businesses involved, with larger firms more likely to adopt it than smaller ones. Locke (2000) found that 41 percent of the New Zealand SME owners surveyed about e-commerce were still unsure of what the concept meant. In separate research, Ruth (2000) surveyed the e-commerce activity of small companies in New Jersey and showed that those companies were hesitant about adopting e-commerce in a significant manner. To understand more about whether and how SMEs engage in e-commerce activities, this study investigates the level of e-commerce engaged in by manufacturing SMEs located in the Central Highlands of Victoria, Australia. Method At the request of Business Ballarat, the Economic Development units of Hepburn, Mooraboolo, and Pyrenees Shires and the Central Highlands Area Consultative Committee, the Centre for Rural and Regional Information conducted a survey of 272 manufacturers, which was completed in November 1999. The results of the survey were collected and compiled into an online database called "On MainStreet Manufacturing" (2000) (www.mainstreet.au .com/ms/manufacturing/). To be included in the directory the businesses had to have an office or manufacturing plant in the Central Highlands area, have at least 50 percent of their business in manufacturing or processing, and conduct business on a continuous basis. This study collected data from "On MainStreet Manufacturing" and from each website recorded in the directory. The data collected from the directory and the manufacturers' websites were recorded and analyzed. Attributes that were noted included the size of enterprise (number of employees) and information about the company website, including whether it offered details about the company and its products, whether it had the facility for online sales or forms for submission of information, whether it was searchable by keyword, and whether it offered information about industry events and/or links to relevant industry information. Results The total number of manufacturers surveyed was 272, of which 263 businesses chose to participate (97 percent). However, the number of complete profiles recorded in "On MainStreet Manufacturing" was substantially less, at 179 (66 percent) of the 272 surveyed. Therefore, for the purpose of this study, the total number of respondents is considered to be 179. Of those 179 respondents, 42 percent had an email address and 19 percent had their own website. The respondents were grouped by size in terms of the number of employees engaged in the business. The range of sizes were chosen to reflect the sizes of the firms in the region. That is, there are many small firms with fewer than five employees, substantially fewer firms with more than 100 employees, and various sizes in between. However, the frequency of firms within the size categories was not uniform. Therefore, the groupings are not evenly incremented. Rather, the groupings were formed to ensure that a substantial number of firms were represented in each cate gory. Table 1 provides a breakdown by employee size of the SMEs surveyed. …

Behaviors of pre-venture entrepreneurs and perceptions of their financial needs

Abstract: Some studies have examined different barriers faced by entrepreneurs in starting their firms. For example, lack of business education, training, or managerial experience may have an impact on the firm’s success. This study sought to determine whether there were any differences in the assistance and training needs between male and female pre-venture entrepreneurs as well as between Hispanic and Anglo pre-venture entrepreneurs. The training needs focused on the areas of finance and accounting. A sample of 133 clients of a regional Small Business Development Center (SBDC) was used to make this comparison. The results indicated differences between males and females in most cases and especially between Hispanic females and Hispanic males. The Hispanic males felt they needed less assistance in the areas of finance and accounting than the Hispanic females did. However, the SBDC consultants felt that both the Anglo and Hispanic females needed less assistance in those areas than the Anglo and Hispanic males needed.

The Successful Product Pioneer: Maintaining Commitment while Adapting to Change

Abstract: Introducing pioneering products is an important entrepreneurial activity and the lifeblood of small businesses, yet previous literature on pioneering and performance in small firms has been inconclusive. Based on data gathered from entrepreneurs in 51 small computer firms, the study found that commitment (entrepreneurial confidence) and adaptability (corporate entrepreneurship and environmental dynamism) were especially beneficial to pioneers. The other three variables (product championing, marketing emphasis, and technological newness) contributed to performance across all new product introductions but did not have modifying effects on pioneering introductions in particular.

Why Small Firms Export: Another Look

Abstract: This article examines what factors motivate small firms to export. Specifically, this study looks at firms with 200 or fewer employees, dividing the sample into two groups: firms with 25 or fewer employees and firms with more than 25 employees. The results suggest that firms with 25 or fewer employees export for two main reasons: the firm has a unique product, and it has a technological advantage over competitors. Firms with more than 25 employees export for the above two reasons, plus two additional reasons: to achieve economies of scale and to avoid losing out on foreign opportunities. Due to the limitations of the size and scope of this research, future research should include additional SIC categories as well as firms outside California. In a 1997 release, the U.S. Bureau of the Census announced that although companies with 500 or more employees accounted for 71 percent of export value, small and medium-sized firms (those with fewer than 500 employees) accounted for almost 96 percent of all exporters (United States Department of Commerce, 1997). Also, as reported in the Federal Reserve Bank of Richmond's publication Cross Currents, surveys conducted by Arthur Andersen and the National Small Business United found that firms with fewer than 500 workers that export grew from 11 percent in 1992 to 26 percent in 1995 (Taper 1995). The same author also notes that The Exporter reported that firms with "fewer than 100 employees make up the bulk of the new exporters" (Taper 1995). Various studies have investigated a number of questions related to what motivates firm managers to export. For example, is the profit motive the only reason for exporting, or are there other reasons? Does the firm export because it believes it is selling a unique product, or do the firm's products have a technological advantage over competitors? Does the firm's management possess special knowledge about foreign customers or market situations? Does management want to take advantage of any tax benefits that are available? Is the firm motivated by the belief that the firm can achieve economies of scale by exporting? Is the firm overproducing and needs new markets? Does management believe that domestic sales are declining and therefore has a need to export? Is the firm exporting because it has excess capacity? Is the firm exporting because it is close to foreign customers and ports? Literature Review There are various approaches dealing with the questions of why firms export and what are the motivational factors for exporting. One approach emphasizes the perception of the export decision-maker with respect to risk, return, and costs. This "perceptual factors approach" is best exemplified by the studies of Simpson and Kujawa (1974) and Brooks and Rosson (1982). In this research, stimuli--both internal (excess capacity, for example) and external (for example, trade fairs)--are significant conditions for exporting, but not, in themselves, sufficient. Both studies suggest that the main difference between firms that export and those that do not is most likely the firm's perception of cost, risk, and profit. Another approach involves identifying the stages of export development. In a summary of 43 studies dealing with export behavior and the firm, Bilkey (1978) concludes that exporting is essentially a process of development. This development may involve two processes: a learning sequence and stages of export activity. Investigation of the learning sequence is seen most prominently in Johanson and Vahlne's (1977) research dealing with the process of a firm's internationalization. Their model involves the development of knowledge through experience in foreign markets. An example of research on export stages was developed by Bilkey and Tesar (1977), who analyzed the relation between managers' perceptions of exporting and firm characteristics in six stages of the export development process. The stages range from firms unwilling to export (stage one) to those exploring the possibilities of exporting to additional markets (stage six). …

Can Applied Entrepreneurship Education Enhance Job Satisfaction and Financial Performance? an Empirical Investigation in the Australian Pharmacy Profession. (Global Perspective)

Abstract: Pharmacy is a "dual market" industry--a pharmacist must combine retailing services with professional services. An Australian pharmacist faces difficulties from both directions in today's market. On the retail side, there is growing competition from non-pharmacy retailers, with many manufacturers selling their goods through non-pharmacy outlets. On the other side of the business, successive Australian governments have gradually reduced the prescription margins available to the pharmacy from the National Health Scheme. Moves towards decreasing industry regulation may soon allow ownership of pharmacies by non-pharmacists such as supermarkets, chain stores, and other retailers. To avoid this, the retail pharmacy industry needs to demonstrate how the community benefits from existing restrictions to pharmacist-only ownership by changing the focus to a more professional and patient-oriented approach, while simultaneously improving business skills. Hence, many pharmacists are belatedly recognizing the need to better blend the retail and professional services sides of their businesses by seeking to become more entrepreneurial. However, until the advent of the Pharmacist Advice Program, most had not had any structured education in entrepreneurship. This set of circumstances provided the opportunity for empirical investigation of some propositions at the heart of the developing field of entrepreneurial pedagogy. Summary Literature Review The Literature of Entrepreneurship Pedagogy The literature of entrepreneurship pedagogy is too extensive to fully review here. However, it can be summarized by saying that empirical tests of key propositions are in short supply and badly needed as demonstrations of the efficacy of entrepreneurship education programs. The Pharmacy-Specific Literature in Australia The need for pharmacists to develop their professional service has been voiced for fifteen years. Shepherd (1986) concluded that services such as verbal or written health-related information could become a part of pharmacies' marketing differentiation. Lurey (1987) called for aggressive marketing strategies, while Smith and Garner (1987) found that pharmacists could make a significant contribution to health care by providing clinical services. Patient counseling and pharmacist intervention can offer demonstrated advantages to the community. Both Oddis (1988) and Hepler (1990) concluded that true cost savings to the community in terms of improved patient outcomes, better compliance, and reduced incidence of adverse reactions can be achieved by pharmacists monitoring patients more effectively. This was supported by Bloom (1990), who found that although pharmacy services improved patient care and reduced costs, there were limits and physical barriers to the provision of such services. Some studies suggest that there is also value to the pharmacist in patient counseling. Meade (1992) concluded that 91 percent of pharmacists think good patient counseling helps them compete in the marketplace. An anecdotal American report (Smith 1991) concludes that patient counseling is one of the best marketing tools available to community pharmacists, while Crawford (1992) argued that the provision of more pharmaceutical services was vital for the survival of the profession. Hirsch, Gagnon, and Camp (1990) found that physicians and patients wanted personalized services in relation to medications. Whitehead et al. (1997) in an Australian qualitative study asserted that there were financial benefits for pharmacists who provide patients with drug information. A study by Merrilees and Miller (1997) commissioned by the Pharmacy Board of New South Wales (NSW) looked at the client-pharmacist interface, concluding that Forward Dispensing pharmacies out-performed other forms of dispensing pharmacies in terms of bot h the quantity of counseling advice given and meeting their patients' needs. However, prior to this research, no quantitative study has been specifically addressed to Penna's call for research into organizational models in community pharmacy (Penna 1987). …

The Ethical Outlook of Micro Business Operators

Abstract: This paper reports the findings of an investigation into the ethical outlook of micro business operators. The study was conducted in Australia and is the first such examination of ethical perspectives in this segment of the business population. Micro business is internationally recognizable, economically significant, and strongly entrepreneurial, and it has a high level of control over the values it enacts. The study indicates that ethical considerations are important to Australian micro business operators. While no one single ethical perspective was dominant, nonreligious beliefs and principles were found to be the most important determinant of their ethical values. Some variation was discovered in operator attitudes based on age, gender, and education.

The Impact of the Alignment of Strategy and Managerial Characteristics on Spanish SMEs

Abstract: Over the last few years the need for firms to adopt entrepreneurial behavior has become evident. Entrepreneurial behavior has been defined in many ways, and one of the most accepted ways is that of Miller (1983), which considers that the individual exhibits entrepreneurial behavior when he or she performs product-market innovations, takes risks, and behaves proactively. Although the need to innovate has always existed, it has been accentuated in recent years due to the acceleration of technological change and growing international competition (Veciana 1996). The aim of this research is to analyze the relationship between the characteristics of a Firm's managers (tenure, age, formal education, and functional experience) and the development of entrepreneurial behavior in their firm using a sample of Spanish small-to-medium enterprises (SMEs). The strategic choice perspective (Child 1972) has generated a large body of research examining the influence of executive managers on organizational outcomes (Gupta and Govindarajan 1984; Miller, Kets de Vries, and Toulouse 1982; Sturdivant, Ginter, and Sawer 1985). Empirical research demonstrates strong associations between the characteristics of these managers and strategy/performance (Day and Lord 1988; Hambrick and Mason 1984; Miller and Toulouse 1986). However, the results fail to establish a clear relationship between the influence of the manager and SME success. This lack of coherence can be attributed to the divergence of previous research into two different substreams. While some researchers study the association between managerial characteristics and strategic orientation (Hofer and Davoust 1977; Leontiades 1982; Kerr 1982; Wiersema, Van der Pol, and Messer 1980), others examine the linkage between these characteristics and performance (Child 1974; Norburn and Birley 1988; Virnay and Tushman 1986). On the other hand, certain works consider both relationships but treat them independently (Day and Lord 1988; Miller and Toulouse 1986). This study posits that these approaches are complementary. In particular, we propose a tripartite model covering three constructs: individual characteristics, strategy, and success within a systematic approach following the methodology of Van de Yen and Drazin (1985) and Venkatraman and Prescott (1990), an approach that enables us to define and test such an alignment. Managerial Cbaracteristics, Strategy and Success The research that examines the linkage between managerial characteristics and organizational success has focused on the search for specffic manager characteristics associated with various measures of success. For example, Norburn and Birley (1988, p. 236) found that "manager teams which demonstrate a preponderance of output functional experience, multiple company employment and wider educational training will outperform those which do not . . ." Similarly Virnay and Tushman (1986) showed that the profiles of management teams of high-performance firms were significantly different from the management teams in firms with poor performance. Along these lines, Child (1974) found evidence indicating strong associations between management youth and firm growth. More recently, Kilduff, Angelmar, and Mehra (2000), using data from 35 simulated firms, analyzed the relationship between demographic diversity in teams and firm performance. Results showed the existence of a significant relationship between these variables. However, these studies are based on the assumption that the characteristics of managers have an independent and direct impact on organizational success. They also fail to examine the source and strength of this impact, which is a considerable limitation. We suggest that in order to understand the managerial characteristics/organizational success relationship more fully, it is necessary first to consider the process by which managers influence organizational outcomes. …

Can Applied Entrepreneurship Education Enhance Job Satisfaction and Financial Performance? An Empirical Investigation in the Australian Pharmacy profession

Abstract: This research investigated a small-scale example of an applied entrepreneurship education program, the Pharmacist Advice Program. 25 New South Wales pharmacists who had undertaken the program were compared to 23 who had not. Non parametric statistical techniques were employed to test the related propositions that pharmacists who learned and applied the entrepreneurship taught in the program (program ‘users’) would experience increased job satisfaction and better sales/profit performance than ‘non-users’. Results support the proposition that entrepreneurship education enhanced job satisfaction. The quantitative analysis on sales/profit performance data was less conclusive but a majority of users believed the applied entrepreneurial learning of the Pharmacist Advice Program led to improvement. The study makes a positive contribution to substantive knowledge in the pharmacy industry and formal theoretical investigation of the field of entrepreneurship education. CAN APPLIED ENTREPRENEURSHIP EDUCATION ENHANCE JOB SATISFACTION AND FINANCIAL PERFORMANCE? AN EMPIRICAL INVESTIGATION WITHIN THE AUSTRALIAN PHARMACY PROFESSION. Pharmacy, is a ‘dual market’ industry. A pharmacist must combine retailing with provision of professional services. On the retail side, there is growing competition from non pharmacy retailers with many manufacturers selling their goods through non pharmacy outlets. On the other side of the business, successive Australian governments have gradually reduced prescription margins available to the pharmacy from the National Health Scheme. Moves towards increasing industry deregulation may soon allow ownership of pharmacies by non pharmacists such as supermarkets, chain stores and other retailers. To avoid this, the retail pharmacy industry needs to demonstrate a community benefit of the existing pharmacist-only ownership restrictions by changing their focus to a more professional and patient orientated approach, whilst simultaneously improving business skills. So, many pharmacists are belatedly recognising the need to better blend the retail and professional services sides of their businesses by seeking to become more entrepreneurial. But, until the advent of the Pharmacist Advice Program, most had not had any structured education in entrepreneurship. This set of circumstances provided the opportunity for empirical investigation of some propositions at the heart of the developing field of entrepreneurial pedagogy.

The Decision to Discontinue Exporting: SMEs in Two U.K. Trade Sectors

Abstract: A wide body of knowledge exists on the perceptions and activities of managers of both exporting and non-exporting firms. Furthermore, models have been proposed to categorize firms in various stages of internationalization exhibiting different export behavior and assistance requirements. Issues discussed in the literature have involved factors associated with managers' motives for undertaking overseas activities, perceived and actual problems, firms' competitiveness, and information and assistance requirements (Bilkey 1978; Miesenbock 1988; Aaby and Slater 1989; Andersen 1993; Leonidou and Katsikeas 1996). This study focuses on managers' perceptions within one group of small firms that has arguably received very little attention, namely, firms that have discontinued exporting (Pauwels and Matthyssens 1999). It appears that to date, studies have been largely restricted to classifying non-exporters as a homogeneous group. This observation is important since no account is taken of potential differences among firms exhibiting varying levels of previous export experience. Of those that do have previous experience, some managers may not want to reconsider exporting since their domestic market is perceived as a preferable alternative, whereas others may wish to recommence exporting at some stage. Seringhaus (1987) points out that export withdrawal has largely been viewed as a failure. In contrast, and from a strategy perspective, Welch and Wiedersheim-Paul (1980) highlight the scenario of some firms that have a low level of commitment towards new export activities and are poorly prepared to undertake such initiatives. It follows logically that the lack of strategic planning, including the mobilization of internal resources, may have a direct influence on firms' performance overseas and consequently on the decision to withdraw from export markets. This can be contrasted with a broader external perspective from which it might be suggested that a whole host of environmental issues--ranging from the economic strength of a currency to the imposition of tariffs--may affect a manager's decision to discontinue exporting. As such, the decision to discontinue exporting should not always be viewed as a failure. Indeed, such a decision could be seen as a move to gain a strategic advantage, for example, to concen trate on the domestic market if this was perceived as having an advantageous result for the firm. This strategy may have been brought about by a change in a firm's key decision-maker and thus be unrelated to a firm's environmental influences. A number of studies have examined barriers that are both internal and external to firms. Moreover, studies have described barriers faced by both exporting and non-exporting firms, and recommendations have been proposed to policy makers for helping managers overcome the obstacles (for example, Katsikeas and Morgan 1994; Leonidou 1995; and Bell 1997). In short, however, the decision to discontinue exporting as a result of these barriers should not necessarily be viewed as a marketing failure under all circumstances. In some cases, managers may have circumvented the problems by having undertaken the appropriate planning and information-gathering activities. In other cases, the decision may have been a result of environmental circumstances that were difficult to forecast. This consideration becomes important when determining the support needed by managers of firms with different levels of export experience to help them avoid discontinuing their export activities. While a wide body of knowledge exists on export assistance needs, policy-makers are hampered by both regulatory issues and budgetary constraints. Furthermore, managers have perceived some trade bodies as more effective than others in implementing support programs to help overcome obstacles to exporting (Seringhaus and Rosson 1990; Nothdurft 1992; Kotabe and Czinkota 1993; Naidu and Rao 1993). A specific study relevant to this investigation was undertaken by Crick (1995), which found that the U. …

Strategic and Contextual Influences on Firm Growth: An Empirical Study of Franchisors

Abstract: This study examined five-year growth patterns among a sample of 246 franchise networks in order to identify factors associated with network growth. Two strategic factors and two contextual factors were significantly related to growth. Among those four significant factors, however, two of the relationships were in directions opposite of those hypothesized. The most likely explanations of these findings, taken together, suggest that both strategy and context exert influences on growth, though strategic influences may be greater than contextual ones.

Do Banks Price Owner–Manager Agency Costs? An Examination of Small Business Borrowing

Abstract: Ang, Cole, and Lin (2000) provide evidence that supports the theoretical work of Jensen and Meckling (1976) on agency costs. As a further examination, I conduct a test to determine the economic significance of owner–manager agency conflicts. Using the same data source and empirical framework as Ang, Cole, and Lin (2000), I test to determine if banks charge a premium when extending loans to firms with various ownership structures. In empirical tests, I find that banks do not require an owner–manager agency premium either through increased interest rates or through the requirement of collateral. Instead, I find that the interest rate is significantly affected by the length of the longest banking relationship, the number of banking relationships, firm age, and firm size. Additionally, the requirement of collateral is significantly affected by the number of banking relationships, the debt position of the firm, and firm size.

A Taste of Small‐Island Success: A Case from Prince Edward Island

Abstract: Island Studies Smallness and insularity have been traditional markers for the absence of economies of scale, viable markets, labor power and expertise, and business know-how Loaded with such structural handicaps, small-island societies often are seen as clearly doomed by the accident of geography to eke their way as bastions of protectionism and as targets of interventionist bale-out and hand-out programs. Substantial evidence is now available to shatter this impression. Small-island territories have achieved spectacular rates of economic growth, knocked down the obstacles of geographical circumstance, and indeed have transformed these into precious marketing assets. Many small islands have excelled in small-scale, high-value product- and service-niching, in banking and finance, as well as in tourism, transport, brokerage, and hospitality. To accomplish this feat, the island identity has been put to good use, in more ways than one (Baldacchino and Milne 2000). One unlikely assemblage of features in small-island business is the combination of local entrepreneurial flair with small-scale manufacturing activity and export orientation. Each of these qualities is rare in small-island territories. Investors are likely to be outsiders; manufacturing is likely to be noncompetitive since both raw materials and markets must be sourced from off the island; and most local business ventures deal in the "safe" and low value-added activity of wholesale and retail trade. In this way, small islands have gravitated toward becoming consumption centers for products made elsewhere. Finding a product that was developed by an island-based business and manufactured in a small-scale operation on a small island and sold elsewhere is truly exceptional. The purpose of this study is to explore these exceptions. A micro-based focus is applied, concentrating on the evidence of one particular local enterprise that has demonstrably avoided the "triple trap" mentioned above. The study builds on the insights of an earlier article (Baldacchino 1999) and thus serves to consolidate case material on this underresearched topic. The Island Prince Edward Island (PEI), with its relatively paltry 5,660 [km.sup.2] and 137,000-resident population, is Canada's smallest province. It developed historically as a peripheral resource-based economy, supplying agricultural staples to imperial (and later, national) metropolitan markets (Milne 2000). In recent years, however, the island's economic profile has undergone a radical change. Agriculture remains the foremost industry, but farm consolidation has followed from the rationalization of production and usage of cutting-edge technology, while the opportunities of adding value from knowledge in this sector appear promising (Paterson 2000). Fishery is now a major resource industry, spearheaded by aquaculture-based mussel farming. And with over a million visitors per year, tourism is now a significant, albeit seasonal, revenue generator, strongly branded around the Anne of Green Gables script and steeped in a pastoral sense of timelessness, natural beauty, and civic courtesy Reliance on federal transfers and public sector jobs, while still substantial, is being reduced. Food processing, construction, and commercial services have been on an upbeat trend in recent years, a dynamism possibly boosted by a controversial fixed link (the Confederation Bridge) joining PEI to New Brunswick, which was completed in 1997 (Beaudin 1998). The tourism boom on PEI has spawned a number of manufacturing concerns that depend on the tourist traffic to sell their products. This is contradictory to the mainstream evolution of service activities emerging from manufacturing, an economic phenomenon suggestively particular to small-island sites (Baldacchino 1998). The Prince Edward Island Preserve Company (PEI PreserveCo) is one such small firm. …

Leveraging the Value of Proprietary Technologies

Abstract: This research examines the relationship between technology portfolios and the rate of alliance formation in new, technology-based firms. It uses a knowledge-based perspective to build an argument that new firms can enhance their capacity for forming alliances by building portfolios of technologies and increasing the communicability of their value through patents. We find support for this position in our examination of patent and alliance activities in 67 new firms from the computer and telecommunications industries. These findings provide insights about the relationship between a firm's efforts to build a portfolio of technology resources, the value of which can be understood by potential partners, and its pursuit of development activities extending beyond the boundaries of the internal organization. Firms operating in highly uncertain and rapidly changing environments need to maintain technological expertise, particularly where competitiveness is dependent on product innovation (Penrose 1959; Clark 1987; Itami 1987; Nelson 1991). However, as technologies become increasingly multidisciplinary (Forrest 1990) and subject to rapid obsolescence (Shan 1990; Oster 1994), it becomes more and more difficult for a single firm to maintain the breadth of resources needed to repeatedly introduce technology-based innovations (Kline and Rosenberg 1986; Teece 1988a; Forrest 1990; Chan and Heide 1993). Small firms are often additionally constrained by a lack of financial and organizational resources (Eisenhardt and Schoonhoven 1990; Chan and Heide 1993; Meyer and Lopez 1994; Lerner 1997). Faced with these constraints, a firm may be forced to narrow its focus on a limited number of businesses in order to maintain continuous investment in underlying technologies. But this can place bounds on innovation efforts and restrict the firm from experimenting beyond its areas of specialty (Penrose 1959). In technology-based industries, firms are paying greater attention to the use of external sources of technology (Grindley and Teece 1997; Jaffe, Fogarty, and Banks 1998). Jarillo (1989), in fact, sees the ability to exploit external resources as the mark of entrepreneurial, high-growth management. Using data on 1,902 public firms listed in the Compustat database, Jarillo found that the fastest-growing public companies use external resources more than their competitors. He adds that firms pursuing strategies centered on the pursuit of opportunities will grow faster than firms seeking to maximize the yield of existing resources. Establishing alliance relationships is an effective way for a firm to access technologies externally Alliances can be generally described as arrangements by which firms combine resources to accomplish particular tasks (Oster 1994). These arrangements can take the form of licensing, joint ventures, agreements, and collaborations (Forrest 1990; McGee, Dowling, and Megginson 1995). The research discussed here focuses on technology-related alliances, which involve joint innovative efforts (Hagedoorn and Schakenraad 1994; Robertson and Gatignon 1998). We define alliances as those involving the development of technologies or products or the licensing of another firm's technologies. We examine the relationship between technology portfolios and the rate of alliance formation in new, technology-based firms, using a knowledge-based perspective to guide our empirical analysis. This perspective is grounded in resource-based theory; it views proprietary knowledge as a fundamental source of advantage for a firm (Grant 1996a; Mueller 1996; Conner and Prahalad 1996). The role of the firm, from a knowledge-based perspective, is to seek advantage by integrating and using the knowledge residing in individual organization members (Kogut and Zander 1992; Grant 1996a, 1996b). We extend this role to include external sources of knowledge, making the assumption that a firm can increase its effectiveness by accessing a foundation of knowledge that is broader or more diverse than the knowledge residing within the organization. …

Some Additional Comments on the Sources and Measurement of the Benefits of Small Business Assistance Programs

Abstract: This article continues a longstanding debate between the authors and Dr. William C. Wood on the usefulness of a particular application of cost-benefit analysis to evaluate small business assistance programs. We provide further discussions of the measurement of primary and secondary benefits with specific reference to the illustrative cases Wood presented in his 1999 article. We then review Wood's suggestions for improvements to small business program evaluations and discuss the progress made in recent evaluations of small business assistance programs. Finally, we reiterate the importance of innovation as an additional source of "secondary" benefits to the economy. Since 1994, the Journal of Small Business Management has run three segments in a continuing debate between an economist (Dr. William C. Wood) and two business professors on the usefulness of a particular application of cost-benefit analysis (Chrisman and McMullan 1996; Wood 1994, 1999). Economist Wood has been critical of the methodologies used to evaluate entrepreneurial support programs in general. In particular, he has been most critical of Dr. James J. Chrisman's evaluations of the Small Business Development Center (SBDC) program in the United States (see for example, Chrisman et al. 1985; Chrisman, Hoy, and Robinson 1987; Chrisman and Katrishen 1994). Wood's main criticism is that Chrisman has systematically undercounted primary benefits while overcounting secondary benefits. This debate is of significance because Chrisman's research has been the primary empirical support for the funding of a 25-year-old program that today spans the entire United States and its territories, with an annual budget of over $175 million. It is the purpose of this article to respond to Wood's latest series of challenges (1999) to the Chrisman methodology as well as to comment on his suggestions for improving evaluations of the economic impact of small business assistance programs. Measuring Primary and Secondary Benefits In the latest installment of the debate, Wood (1999, p.76) begins by asserting that where our respective points of view "differ the most is in their assumptions about the origin of small business clients' increased revenues." Wood somewhat incorrectly asserts that Chrisman and McMullan favor counting revenue gains as net benefits. More accurately, the main approach advocated by Chrisman and McMullan involves a methodology designed to measure benefits derived from clients' revenue and employment gains. In other words, increases in revenues and employment are treated as sources of benefits, whereas the benefits themselves are measured via the sales and income tax revenues derived from those sources. This approach differs from the one Wood advocates in that he would measure benefits according to some imputed value or price attached to the small business counseling service. However, as we have argued earlier (Chrisman and McMullan 1996), the source of the value to clients is essentially the same as the source of the tax revenues that Chrisman measures. Put differently, clients do not value advice for its own sake; they value advice if they believe it will enable them to improve the performance of their businesses. Chrisman's methodology is, therefore, directly linked to the purpose of the SBDC program. Furthermore, since the SBDC is funded by federal, state, and local governments, estimating tax revenues derived from clients' improvements in performance allows the benefits of the program to be measured on a basis comparable to the costs of the program: tax dollars from the government, tax dollars back to the government. Chrisman and McMullan make the simplifying assumption that the increases in sales and employment seen by the assistance program clients are generally new to the economy. In contrast, Wood, following his interpretation of the cost-benefit analysis literature, assumes that sales and employment increases are new to the economy only in narrowly defined sets of circumstances. …

A Model of Community–Based Venture Capital Formation To Fund Early–Stage Technology–Based Firms

Abstract: This paper suggests a model of capital formation that concurrently establishes a mechanism to fund early–stage technology–based firms and meets the economic development needs of rural communities. Investors in a community capital investment fund can gain high rates of return on investment while firms realize all of the benefits associated with the investment, community support, and expanded network. The model includes factors associated with the community environment (community–based factors that impact community members’ participation) and external support environment (factors that facilitate the accumulation of investment capital within a community). The result of a community effort can be an environment in which members of the community contribute to an investment fund, cooperate in attracting firms, and provide networking assistance to new business owners. Communities benefit through job creation and economic stability. Community members benefit through wealth creation.

The Lagging Development of Small Business Internet Banking in Australia

Abstract: The most recent technological advance with the potential to revolutionize the financial services industry worldwide is Internet banking. Given that on-line banking transactions cost substantially less than physical branch transactions, banks throughout the world are rushing to develop their Internet strategies. This is a boon for home banking consumers, who can now enjoy more convenient and timely access to funds at lower cost (Harper 1997). Furthermore, on-line mortgage brokers, such as e-loan and mortgage. com, are reshaping credit markets in the U.S., Europe and Asia. While Australian financial institutions have been slower to join the Internet banking trend, almost all banks and other financial establishments now offer on-line banking facilities or are planning to do so in the near future. However, Australian financial institutions are primarily targeting their Internet banking strategies on the personal home banking segment. The small business segment has been largely ignored.

Business Name Changes: The French Experience

Abstract: Introduction The name is the main component of any organization's identity. Any decision of corporate name modification has financial, marketing, and strategic effects. Despite the growing number of corporate name changes in recent years, there has been no in-depth analysis on the subject. The objectives of this article are to evaluate the number and the growth of corporate name change, to critically examine the current typologies of corporate name changes, and to propose a valid classification of name change. In marketing research, a considerable amount of attention has been given to brand names. Researchers have focused on the naming process (Shipley, Hooley, and Wallace 1988; Kohli and LaBahn 1997), corporate or brand dominant systems (Murphy 1987; Olins 1989; Laforet and Saunders 1994), sound symbolism or special brand names (Klink 2000) [for example, alphanumeric brand names (Pavia and Costa 1993)] or cobranding (Hillyer and Tikoo 1995; Rao, Qu, and Ruekert 1999). However, research on corporate names has remained limited. For a long time, the choice of a name was a decision taken only when the firm was founded. No event called this initial choice into question. Now, beyond the large number of newsworthy examples (Verizon, WorldCom, TotalFinaElf, and Thales in France), there are more and more corporate name changes. All these high financial stake changes indicate the importance of corporate name. The objective of this paper is two fold. First, it will evaluate the number and the growth of French corporate name changes, especially for small-and medium-sized firms. Then, a survey will examine the current typologies of name changes and will propose a valid classification. Quantification of Corporate Name Changes The existing quantifications of corporate name changes underestimate the magnitude. According to Grossman, Portugal, and Aspach (in Argenti 1994), there were 1,041 corporate name changes in 1985; 1,864 in 1988; and 1,600 in 1989 in the U.S. Aaker (1994) estimates the number of changes at 2,000 in the U.S. Enterprise IG, a consulting firm, counted 3,893 changes of corporate name in the stock exchanges of 57 countries for the year 2000. More precisely there were 2,976 changes in the U.S.; 250 in the United Kingdom; 186 in Canada; 74 in Germany; 56 in France; and 35 in Japan. The underestimation is due to the difficulty in accounting for changes in the name of small firms. Cooperation with the French Patent Office (INPI) provides more precise data for France (Table 1). These data include the patronymic changes for persons that have been entered individually in the Trade Register. However, it is clear that company name changes are numerous and are growing rapidly In conclusion, the changes of French corporate names are a reality for small businesses. The reasons for name changes are numerous (Kapferer 1997; Delattre 1999); nevertheless, acquisitions and mergers are the perfect examples of events leading to a new name. The correlation between the corporate name changes and the takeover bids is strong (r = 0.71). The Bulletin Officiel des Annonces Civiles et Commerciales (BODACC) 1 provides some interesting characteristics on name changes. The study of name changes in June and July 2000 indicates the following: (1) 15.7 percent of corporate name changes are accompanied by a change of the legal status; (2) 18.6 percent of corporate name changes are accompanied by a modification of activities; (3) 23.8 percent of corporate name changes are accompanied by a modification of the capital structure (2); and (4) 48.3 percent of corporate name changes are accompanied by a change of management, administration, or shareholding. This confirms the importance of mergers, acquisitions, spinoffs, and others modifications of shareholding or management. All types of firms are affected by name changes. …

Gearing Total Quality into Small– and Medium–Sized Hotels in North Cyprus

Abstract: Introduction Total Quality Management (TQM) can be defined as a satisfaction of social shareholders via implementing effective planning, programs, policies, and strategies, as well as using human and other assets efficiently and continually within an organization. This approach will continue to be one of the hot topics among practitioners, academics, and professionals in the new millennium. This article presents how a new TQM readiness model can be utilized for providing social shareholders' satisfaction (1) and continuous improvement in small- and medium-sized hotel organizations. Five-star hotel staffs appear to have better organizational strengths than four-star hotel staffs in North Cyprus. Four-star hotel employees indicate substantial differences in their perceptions concerning TQM readiness elements. Literature Review An extensive literature review has been conducted. Issues examined include the following: (1) Where to start? (2) Is it valuable to bring such a total system? (3) Should some parts be imported instead of the whole? and (4) Is there any cheap way to bring TQM to small- or medium-sized organizations? According to Oakland (1993), the first decision of where to begin can be daunting, referred to as the Total Quality Paralysis (TQP) problem in quality-management literature (Lakhe and Mohanty 1994). This has been confirmed by other experts and academics who state that small- and medium-sized enterprises generally are less comfortable in bringing TQM into their organizations than large companies are due to limited managerial knowledge, skill, ability, incentives, resources, and time (Mohd and Elaine 2000; Wiele and Brown 1998; Haksever 1996). According to the literature, only a few studies have been developed on TQM readiness assessment criteria in small- and medium-sized firms. Scholars and others have a common understanding that the more clearly the TQM readiness factors are assessed, the healthier a transition can be achieved to the TQM process. The TQM literature states, "Organizations, which are ready for change in climate, have more opportunity to achieve a successful implementation in a shorter period of time" (Weeks, Helms, and Ettkin 1995). A common point endorsed in the literature is that there must be a readiness survey before designing, developing, and implementing a TQM program. (Yavas 1995; Lakhe and Mohanty 1994; Endowsman and Savage 1991; Derrick, Desai and Obrein 1989). This may help to determine TQM factors within an organization and to identify potential problems that may create resistance to TQM and will help to develop a database for future comparisons. Walker and Salameth (1990) have stated that only a small percentage of hotels have heard "the siren call of TQM implementations" even in the U.S. It is interesting to note that after 10 years, the literature regarding hotels is still sparse. Although some viable hotels in limited geographical areas have reported that their TQM performance resulted in profit increased, employee satisfaction, and better usage of economic resources, only a few case studies have been published. As Bloomquist and Breiter (1998) indicate, "While those case studies are important in elaboration on the theme of quality management, there remain no reliable statistical data on (hotel) industry-wide performance credited to quality management." (Bloomquist and Breiter 1998; Camison et al. 1996; Golden 1993) Total Quality Challenge for Cyprus Hotel Organizations Cyprus is the third-largest island in the Mediterranean. Cyprus has a great historical heritage, conserved environment beauties, and a good climate, and after the war in 1974, the island was divided into north and south parts. No study has been conducted on how TQM can be applied in small- and medium-sized hotel organizations in North Cyprus, which is a major deficiency since tourism is the leading sector. …

The Future Prospects for Entrepreneurship in Papua New Guinea

Abstract: Like the beautiful bird of paradise which adorns its flag, the South Pacific nation of Papua New Guinea (PNG) is little known outside Oceania. Covering half of the second biggest island in the world, it has sometimes been described as an island of gold awash in a sea of oil." It contains vast natural resources and substantial potential for economic growth, yet many of its people have only recently emerged from traditional Neolithic ("Stone Age") cultures. Within the last decade, the country has become a major commodity producer, while at least three so-called "lost" tribes were discovered. PNG has a larger population than New Zealand, has received substantial economic and technical assistance from Australia, and shares a common border with Indonesia, one of the most populous nations on earth. Despite this, economic development and private entrepreneurship has had only limited success to date. Today, the country has one of the lowest levels of per capita GDP in the South Pacific. Why has such a potentially rich nation failed to develop to its full potential, as well as produce the entrepreneurial class which is usually a necessary prerequisite for economic growth? This article attempts to explain this conundrum. It outlines the development of PNG in recent years, examines some of the causes of limited progress, and discusses some of the future prospects for increasing entrepreneurial activity in PNG. History While the island has been settled by Melanesian peoples for approximately 40,000 years, the first European contact took place in 1526, when Portuguese explorer Jorge de Meneses named the mainland Ilhas dos Papuas ("the land of frizzy-haired people"). In 1545, the Spaniard Inigo Ortiz de Retes mapped the coastline and gave it the name New Guinea, based on the apparent resemblance of its residents to the people of Guinea in western Africa. During the next three centuries, very little contact with Europeans took place. The Dutch claimed the eastern half of the island as part of their East Indies possessions (later Indonesia), but the western portion remained free from colonial activity until 1884, when Germany annexed the northern portion of the coast (Papua) and the United Kingdom annexed the southern coastline (New Guinea). Even then, much of the country remained remote and difficult to reach. In many parts of the mountainous highlands at the center of the island, first contact with Europeans did not take place until the 1930s. Australia assumed responsibility for the southern territory in 1905, and a few years later, during World War I, evicted the German colonists and absorbed the northern territory as well. Australia continued to administer the two territories under a United Nations mandate in the post-World War II era, eventually amalgamating them into the combined entity of Papua New Guinea (Sinclair 1971). In 1972, the area became self-governing with a Westminster style parliamentary democracy and in 1975 it was granted full independence. Geography and Culture PNG occupies the eastern half of the island of New Guinea, and some six hundred offshore islands, including Bougainville, New Britain, and New Ireland. Covering a total land area of 470,000 square kilometers, most of the country is swathed in dense tropical rainforests, swamps, and woodlands. It also has one of the highest annual rainfalls in the world. As a result, only a very small proportion of land, mainly concentrated in the central highlands well above sea level, is arable cropland. The dominant feature of the country is a sharp central spine of high mountain ranges that runs the length of the island from east to west. It is a nation of abundant, and still largely undeveloped, natural resources. These include substantial deposits of gold, oil, gas, copper, nickel, and timber. It also lays claim to an exclusive 200 kilometer maritime economic zone, which totals approximately three million square kilometers, and so has access to many different marine resources as well. …