scholarly journals A relational view of horizontal collaboration among micro and small enterprises: a study of the brewery sector in Wales

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Lotfi ◽  
Maneesh Kumar ◽  
Vasco Sanchez Rodrigues ◽  
Mohamed Naim ◽  
Irina Harris
Keyword(s):  
Focus Groups ◽  
Relational Theory ◽  
Small Enterprises ◽  
Small Companies ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Informal Governance ◽  
Content Type ◽  
Micro And Small Enterprises ◽  
Horizontal Collaboration

PurposeThis study aims to explore how horizontal collaboration can help small and micro enterprises within the drink sector through the relational theory lens.Design/methodology/approachThe use of qualitative research methods, including focus groups and interviews, facilitated understanding the horizontal collaboration in micro and small companies within the Welsh brewery industry. Data collection involved conducting three focus groups and 13 interviews within the Welsh brewery sector in the UK. The collaboration phenomena were explained using the three elements of relational theory: relational rents, relational capitals and relational governance.FindingsMicro and small enterprises in the drink sector use collaborative initiatives in building new capabilities to generate relational rents. In addition, relational capitals and relational governance mechanisms were identified to support the horizontal collaboration among these enterprises.Research limitations/implicationsThe focus is on only one part of the drinks industry, i.e. the brewery industry; therefore, this study could be extended to other industries within the drink sector or across manufacturing industries.Practical implicationsThe micro and small enterprises can collaborate to achieve relational rent, but this collaboration requires strong relational capitals, such as trust. These partners need to change informal governance mechanisms that already exist towards more contractual formal mechanisms.Originality/valuePrior research has largely focused on vertical collaboration, with limited studies using the relational theory lens to explicate horizontal collaboration phenomena and no previous research in the context of micro and small companies. Relational rents, relational capitals and relational governance mechanisms are studied to provide insights into an effective collaboration in this context.

scholarly journals The innovation challenge in micro and small enterprises (MSE)

2019 ◽  
Vol 16 (3) ◽  
pp. 235-252 ◽  
Author(s):  
Davi França Berne ◽  
Roberto Coda ◽  
Patricia Krakauer ◽  
Denis Donaire
Keyword(s):  
Added Value ◽  
Small Enterprises ◽  
Small Companies ◽  
Content Type ◽  
Metropolitan Regions ◽  
Process Improvements ◽  
Theoretical Contribution ◽  
Technological Advances ◽  
Micro And Small Enterprises ◽  
Degree Of Innovation

Purpose This study aims to measure the degree of innovation of micro and small industrial companies in the West and Southwest metropolitan regions of the city of São Paulo, through a survey with 203 firms in the metallurgy sector. Design/methodology/approach The research had a quantitative and descriptive focus and used as methodology the validated and international approach known as Innovation Radar. Findings The degree of innovation in these micro and small companies is low; thus, the authors could not characterize them as systemic innovators. Most of them are little innovative, although some were classified as occasional innovators. The dimensions organization, processes, presence, supply chain and added value were the least developed. Research limitations/implications To carry out similar studies in other Brazilian regions, to compare results and draw new conclusions, or even check if the degree of innovation present in micro-firms of these regions would not be even lower; to monitor the evolution of companies through a longitudinal study, to detect improvements in the degree of innovation; and to conduct a qualitative research that can deepen questions on the results of our study, such as the reasons why this type of company does not adopt innovative practices, or even the real suitability of the Innovation Radar model for micro and small enterprises (MSEs). We observed that some dimensions proved to be too sophisticated for these companies, such as R&D investments and the adoption of technological advances. Practical implications The study shows that the degree of innovation measured by the Innovation Radar is a useful and initial measure to check an innovative attitude in micro and small companies. It can also drive the actions that should be prioritized to stimulate the culture of innovation in SME. However, it does not allow to answer why this type of organization does not adopt innovative practices as a management attitude. Regarding its contribution, the authors expect that the paper may bring an awareness of managers and owners of micro and small companies for the need to foster innovative practices that can help increase the competitiveness and survival of this type of organization. Social implications In Brazil, despite the fact that MSEs represent 98 per cent of the existing companies, and are mainly responsible for job creation, their leaders have a low concern for innovative practices. Originality/value The study contributes to identify the degree of innovation of these firms, which comprise a representative and strategic segment of the city’s economy, by checking to what extent an innovative attitude is effectively present in this sector. The theoretical contribution of this study regards the appropriateness of mechanisms or methodologies created to measure the degree of innovation in large organizations. Dimensions such as technological platform, brand, innovative ambience, degree of organization or systematization of processes, which are frequently considered for companies in general, and especially for large ones, are not sufficient or, instead, too sophisticated to allow an effective measurement of the degree of innovation in MSE. Thus, this study provides information for designing more effective ways to evaluate the degree of innovation that take into account MSE’s specificities, which can be considered innovation efforts, such as simple process improvements, professional development of teams, and actions to seize ideas and opportunities, among others.

The interplay between digital transformation and governance mechanisms in supply chains: evidence from the Italian automotive industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Paolucci ◽  
Elena Pessot ◽  
Riccardo Ricci
Keyword(s):  
Digital Technologies ◽  
Digital Transformation ◽  
Development Effort ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Firm Level ◽  
Digital Interface ◽  
Content Type ◽  
Automotive Suppliers ◽  
The Impact

PurposeThis paper aims to investigate the effect of specific subsets of digital technologies and governance mechanisms (i.e. relational and contractual) on the efficiency of the automotive supply chain (SC).Design/methodology/approachBuilding on the Transaction Costs Economic (TCE) theory, and on the literatures on the governance and Digital Transformation of SCs, the research employs a multi-respondent survey on a sample of 101 Italian automotive suppliers. It analyses the interplay between investments in network and physical–digital interface technologies and buyer–supplier relationship governance models in a joint product development effort. The related effects on costs, from the automotive suppliers' perspective, are considered.FindingsThe results confirm the TCE assumptions on governance mechanisms being appropriate to enhance cost performance, but in particular show that digital technologies shape the governance of buyer–supplier relationships with different patterns. The features of synchronisation and accessibility, as ensured by network technologies, are found to strengthen the impact of contractual governance, while the adoption of physical–digital interface technologies, and their enhanced features of virtualisation and traceability, further enhance the impact of relational governance on the efficiency improvements of suppliers.Practical implicationsSC actors need to recognise the importance of long-term collaboration and superior coordination through investments in specific subsets of digital technologies, to ensure a higher product and production data codifiability, transparency and thus integration at both an intra- and an inter-firm level.Originality/valueThis study is one of the first to have considered Digital Transformation in SCs from the suppliers' perspective and its implications on the efficiency of relationship governance with buyers.

scholarly journals Horizontal collaboration in response to modern slavery legislation

2018 ◽  
Vol 38 (12) ◽  
pp. 2286-2312 ◽  
Author(s):  
Amy V. Benstead ◽  
Linda C. Hendry ◽  
Mark Stevenson
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Sustainable Competitive Advantage ◽  
Sustainable Supply Chain ◽  
Informal Governance ◽  
Content Type ◽  
Ethical Trade ◽  
Relational Perspective ◽  
Modern Slavery ◽  
Horizontal Collaboration

Purpose The purpose of this paper is to investigate how horizontal collaboration aids organisations in responding to modern slavery legislation and in gaining a socially sustainable competitive advantage. Design/methodology/approach Action research has been conducted in the textiles and fashion industry and a relational perspective adopted to interpret five collaborative initiatives taken to tackle modern slavery (e.g. joint training and supplier audits). The primary engagement has been with a multi-billion pound turnover company and its collaborations with 35 brands/retailers. A non-government organisation and a trade body have also participated. Findings Successful horizontal collaboration is dependent on both relational capital and effective (formal and informal) governance mechanisms. In collaborating, firms have generated relational rents and reduced costs creating a socially sustainable competitive advantage, as suggested by the relational perspective. Yet, limits to horizontal collaboration also exist. Research limitations/implications The focus is on one industry only, hence there is scope to extend the study to other industries or forms of collaboration taking place across industries. Practical implications Successful horizontal collaborative relationships rely on actors having a similar mindset and being able to decouple the commercial and sustainability agendas, especially when direct competitors are involved. Further, working with non-business actors can facilitate collaboration and provide knowledge and resources important for overcoming the uncertainty that is manifest when responding to new legislation. Social implications Social sustainability improvements aim to enhance ethical trade and benefit vulnerable workers. Originality/value Prior literature has focussed on vertical collaboration with few prior studies of horizontal collaboration, particularly in a socially sustainable supply chain context. Moreover, there has been limited research into modern slavery from a supply chain perspective. Both successful and unsuccessful initiatives are studied, providing insights into (in)effective collaboration.

Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miriam Borchardt ◽  
Charbel José Chiappetta Jabbour ◽  
José de Figueiredo Belém ◽  
Venkatesh Mani ◽  
Giancarlo Medeiros Pereira ◽  
...  
Keyword(s):  
Business Models ◽  
Raw Materials ◽  
Life Cycles ◽  
Small Enterprises ◽  
Base Of The Pyramid ◽  
Frugal Innovation ◽  
Content Type ◽  
Fashion Products ◽  
Poor Region ◽  
Micro And Small Enterprises

Purpose This study aims to examine the process of frugal innovation (FI) in micro- and small-enterprises (MSEs) at the base of the pyramid (BOP) through the analytical lens of business models. Design/methodology/approach A case study was conducted with 30 MSEs from three different industries in a very poor region in Brazil. Findings The findings indicate that, in cases where FI is intense and dynamic, the start of the FI process is based on the reinterpretation of fashion trends and influences from the business ecosystem while the consolidation of FI in MSEs occurs through the reconfiguration of resources. Additionally, this study shows that FI depends on conditions other than the production of frugal products for BOP consumers. Research limitations/implications This study points out that the presence of end-of-life non-BOP raw materials distributed by large distributors in the case of fashion products, along with the interaction between MSEs at the BOP and these distributors, trigger FI and are profitable for both. For non-fashion products with long life cycles, there is no demand for innovation. Originality/value This study addresses the research void present in the literature on FI by presenting the process of FI and the conditions that leverage or stagnate FI in MSEs at the BOP, as well as how business models are shaped by these conditions.

Influence of participation in “table banking” on the size of women-owned micro and small enterprises in Kenya

2015 ◽  
Vol 9 (4) ◽  
pp. 315-326 ◽  
Author(s):  
Castro Ngumbu Gichuki ◽  
Milcah Mulu Mutuku ◽  
Lydia Nkatha Kinuthia
Keyword(s):  
Data Collection ◽  
Women Entrepreneurs ◽  
Design Methodology ◽  
Secondary Level ◽  
Small Enterprises ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Growth ◽  
Micro And Small Enterprises

Purpose – The purpose of this study is to investigate the inability to access affordable credit in Kenya which hinders many women entrepreneurs from either starting their own or expanding existing enterprises and capital base. The emergence of table banking groups attempts to fill the existing credit gap. Design/methodology/approach – A cross-sectional survey involving 225 randomly selected women entrepreneurs who participate in table banking groups within Nakuru Municipality was conducted. Data collection comprised a questionnaire whose reliability coefficient was 0.83 at 0.05 confidence level. Findings – Results indicated that a majority women entrepreneurs aged between 20 and 60 years with 71 per cent of them married. Further, 44 per cent had attained secondary-level education, while no illiterate entrepreneurs participated in the study. A positive increase in the number of employees, after members participated in table banking groups, was realized. Credit received from table banking influenced changes in the size of enterprises. Originality/value – The study shows that availability, affordability and accessibility of credit from table banking groups led to positive growth of women-owned enterprises.

Governance of open innovation networks with national vs international scope

2017 ◽  
Vol 10 (1) ◽  
pp. 66-85 ◽  
Author(s):  
Thomas Clauss ◽  
Patrick Spieth
Keyword(s):  
Open Innovation ◽  
Structural Equation ◽  
Large Scale ◽  
Innovation Networks ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Content Type ◽  
International Scope ◽  
Positive Effects ◽  
Innovation Outcomes

Purpose The realisation of joint innovation outcomes in open innovation networks is closely related to an efficient utilisation of governance mechanisms, which coordinate joint processes (e.g. knowledge sharing) and eliminate undesired behaviours (e.g. opportunism). Hence, the purpose of this paper is to analyse the complex effects of multiple governance approaches on outcomes of open innovation networks with a national and an international scope. Design/methodology/approach The study draws on a large-scale survey-based study of 100 mechanical engineering firms involved in open innovation networks. Hypotheses are tested by means of PLS structural equation modelling. Findings The evidence shows that the three governance mechanisms: transactional governance, relational governance and institutionalised governance significantly foster innovation outcomes of open innovation networks. In national open innovation networks, only relational governance exerts positive effects, internationally transactional and institutionalised governance is necessary. Research limitations/implications The study contributes to research in multiple ways. First, it shows that governance of open innovation networks is crucial for their innovation performance, thereby providing some explanations for the performance differences between certain networks. Second, the results indicate that the effects of governance mechanisms depend on the scope of the network. By showing that the effect of governance mechanisms varies under different contextual conditions the study also contributes to the ongoing debate on combined effects of governance mechanisms. Originality/value The paper fills important gaps in the existing research on the link between governance and performance in open innovation networks and delineates interesting areas for further research.

scholarly journals The importance of Marketing for Micro and Small Enterprises

2020 ◽  
pp. 28-40
Author(s):  
Vinícius Cardoso de Oliveira ◽  
Carla Viana Dendasck
Keyword(s):  
Small Business ◽  
Support Service ◽  
Digital Marketing ◽  
Small Enterprises ◽  
Small Companies ◽  
Basic Principles ◽  
Strategic Posture ◽  
Business Support ◽  
Micro And Small Enterprises

According to (Sebrae-Brazilian Micro and Small Business Support Service), in 2018, micro and small companies accounted for 52% of employment positions, and correspond to 99% of existing companies in Brazil. However, even with this representativeness 58% of these companies manage to exceed five years of existence. It is estimated that this high percentage of mortality of organizations is related to the lack of planning and adoption to the basic principles of administration. This article aims to conduct a reflection, using the methodology of bibliographic review, on the importance of marketing for these organizations, as well as the need for entrepreneurs to adopt a strategic posture through marketing possibilities, especially in relation to Digital Marketing, thus ensuring the sustainability of the organization.

scholarly journals Managing information asymmetry in public–private relationships undergoing a digital transformation: the role of contractual and relational governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tom A.E. Aben ◽  
Wendy van der Valk ◽  
Jens K. Roehrich ◽  
Kostas Selviaridis
Keyword(s):  
Decision Making ◽  
Information Processing ◽  
Information Asymmetry ◽  
Digital Technologies ◽  
Digital Transformation ◽  
Information Uncertainty ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Information Requirements ◽  
Content Type

PurposeInter-organisational governance is an important enabler for information processing, particularly in relationships undergoing digital transformation (DT) where partners depend on each other for information in decision-making. Based on information processing theory (IPT), the authors theoretically and empirically investigate how governance mechanisms address information asymmetry (uncertainty and equivocality) arising in capturing, sharing and interpreting information generated by digital technologies.Design/methodology/approachIPT is applied to four cases of public–private relationships in the Dutch infrastructure sector that aim to enhance the quantity and quality of information-based decision-making by implementing digital technologies. The investigated relationships are characterised by differing degrees and types of information uncertainty and equivocality. The authors build on rich data sets including archival data, observations, contract documents and interviews.FindingsAddressing information uncertainty requires invoking contractual control and coordination. Contract clauses should be precise and incentive schemes functional in terms of information requirements. Information equivocality is best addressed by using relational governance. Identifying information requirements and reducing information uncertainty are a prerequisite for the transformation activities that organisations perform to reduce information equivocality.Practical implicationsThe study offers insights into the roles of both governance mechanisms in managing information asymmetry in public–private relationships. The study uncovers key activities for gathering, sharing and transforming information when using digital technologies.Originality/valueThis study draws on IPT to study public–private relationships undergoing DT. The study links contractual control and coordination as well as relational governance mechanisms to information-processing activities that organisations deploy to reduce information uncertainty and equivocality.

Relational capability and strategic alliance portfolio configuration

2018 ◽  
Vol 13 (5) ◽  
pp. 1026-1049 ◽  
Author(s):  
Priscila Rezende da Costa ◽  
Sergio Silva Braga Junior ◽  
Geciane Silveira Porto ◽  
Marta Pagán Martinez
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Explicit Knowledge ◽  
Statistical Tests ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Informal Governance ◽  
Alliance Portfolio ◽  
Content Type ◽  
Trust And Reciprocity

Purpose The purpose of this paper is to focus on evaluating relational capability regarding the configuration of a network of technological partners in Brazilian technology-based firms (TBFs). Design/methodology/approach The data were collected using an online questionnaire made available to technology-based companies resident in Brazilian Technological Parks. A total of 73 companies responded. The data were analyzed using bivariate and multivariate statistical techniques and were processed using Statistical Package for Social Sciences software. The statistical tests included factor analysis, Cronbach’s α and multiple regression. Findings The paper shows that the strategic alliance portfolio is influenced by organizational learning, diversity of partners, governance structure, intensity of partnership relations and configuration. In particular, the portfolio of alliances with competence orientation is characterized by tacit knowledge exchanges and learning exploration, homogeneity of partners, informal governance mechanisms, strong bonds of trust and reciprocity with partners and low diversification of actors’ profiles, their attributions and the results obtained in the portfolio. Meanwhile, the characteristics of alliance portfolios with legitimacy orientation include explicit knowledge exchange and learning exploitation, heterogeneity of partners, formal governance mechanisms, weak bonds of trust and reciprocity with partners and high diversification of the profile of the actors, their attributions and the results obtained from the portfolio. Practical implications The configuration of the alliance portfolio plays an important role in innovation. To stimulate the creation of new technological skills, the executive of a technology-based company from emerging countries such as China, Russia and India, can configure the portfolio of strategic alliances with more homogeneous partners in terms of profile and attribution. However, if this executive is challenged to seek legitimacy and complementary resources in these markets he can invest in the diversification of the strategic alliance portfolio, prioritizing partners with differentiated profiles and attributions. Originality/value The originality of the research lies in the adoption of a complementary and multidimensional theoretical prism, considering the relational capacity of TBFs in the configuration of alliances, both in the intra-firm and portfolio perspective. Furthermore, it was considered that the configuration of alliances can be based on both competence and legitimacy factors.

Dynamic changes of governance mechanisms in mega construction projects in China

2019 ◽  
Vol 26 (4) ◽  
pp. 723-735 ◽  
Author(s):  
Dedong Wang ◽  
Shaoze Fang ◽  
Kaili Li
Keyword(s):  
Construction Projects ◽  
Positive Impact ◽  
Project Performance ◽  
Equation Modeling ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Dynamic Changes ◽  
Content Type ◽  
Positive Effects ◽  
Contractual Governance

Purpose The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants’ opportunism. Design/methodology/approach Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs. Findings First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism. Originality/value In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.

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