Exploring Local Competences Salient for Expanding Small Businesses

Abstract

Management competences significant for large and medium‐size companies in the West may not be universally applicable. Describes which qualitative, inductive approaches were used to identify competences important in expanding smaller businesses in a particular locality (Hong Kong). Identifies competences generally salient for growth as: global‐oriented outlook for the business; analytical market approach; readiness to seize relevant opportunities; and systematic financial management. Considers an additional set of competences salient for growing companies with less than 50 employees, namely: vivid vision/purpose/ mission; ability to conceptualize or formulate company strategy; strategic approach to human resource development; and promoting a learning culture. Also identifies several competences relevant to all small businesses in Hong Kong, whether growing or non‐growing.

The Growth of Small Businesses: Towards A Research Agenda

“…Majority of the studies referenced do not fit this bill. The sample size in Snell and Lau (1994) is 21 while Alarape (2007) has a sample size of 62. Neither set of data was collected over a period of time.…”

“…pp.447-449;Prater and Ghosh, 2005). Where it does occur, there seems to be a positive association between increased export orientation and small firm growth (Snell and Lau, 1994;Lu and Beamish, 2001) but the evidence is not clear cut as the connection may have more to do with firm size than it does with firm growth per se.…”

“…Where it exists, formal, long-range planning in small firms is positively associated with a greater propensity for growth behavior (Masurel and Smith, 2000;Snell and Lau, 1994), but since formal business planning is evidently more present in larger firms, it may be that planning is merely associated with the attendant formality that can arise as a firm transitions towards greater size.…”

The Background and Challenges Faced by the Small Medium Enterprises. A Human Resource Development Perspective

“…The changes in environment pose a challenge to the SMEs, which limits their abilities to maintain their position against larger organizations. According Snell and Lau (1994) found that more management competencies are required for growth in small organization compared to larger organizations. In this situation, small organization failed to develop skills, knowledge and competencies among workers in the small organization.…”

The Relationship between Human Resource Management and Firm Performance in Malaysia

“…Section 1 required the respondents to rate a total of 20 items on the four components of HRM namely, training, incentives, information technology, and performance appraisal which were extracted from past researches such as Snell and Lau (1994), Kuratko, Hornsby, and Naffziger (1997), and Zahra, Neubaum, and Huse (2000). Section 2 contained 5 items of questions pertaining to firm performance based on the research of Daily and Johnson (1997).…”