Inter‐organizational relationship strategies and management styles in SMEs

Abstract

Purpose -The paper seeks to investigate and conceptualize differences in managerial styles and inter-organizational relationship (IOR) strategies of small and medium-sized enterprises (SMEs) in the international environment, and make managerial implications useful for business practitioners and educators. Design/methodology/approach -The study applies comparative management research methodology. The management style dimensions analyzed in the paper are supervision, decision making, information-sharing styles, and paternalistic orientation. The types of IOR strategies considered are conjugate, confederate, agglomeratic, and organic. Data were collected through surveying managers of entrepreneurial firms from the USA, China, and Russia, operating in the same industry. Factor analysis was applied for scale validation, and regression models were used for hypotheses testing. Findings -The relationship between managerial styles and types of IOR strategies pursued by SMEs was documented. The cross-cultural differences in terms of SMEs' orientation towards different types of IOR were also revealed. Practical implications -The study indicated that it is possible to predict prevailing IOR strategies based on cultural differences in a systematic way. Because of SMEs' rapid globalization, the study findings contribute to the efforts of achieving better correspondence between IOR-building strategies of small businesses in different countries. Educational and training programs preparing international SME managers to distinguish, substantiate and deal with the revealed cross-cultural IOR differences will be helpful for achieving this goal. Originality/value -The major value of the study is that it provides insight into IORs from the small business perspective in a cross-cultural setting.

The impact of market orientation on the development of relational capabilities and performance outcomes: The case of Russian industrial firms

“…Following the logic of business relationships culture development in Russia, it is important to investigate not only the ability to interact effectively with business partners as part of a collaborative relationship due to knowledge and experience at the interpersonal level (Mikhailitchenko & Lundstrom, 2006;Salmi, 2004), but rather to analyze the firms' organization-wide competences, in the case of our research the relational capabilities based on the adaptation of routines, process configuration, communication systems, and control mechanisms (Jacob, 2006).…”

Change process: a key enabler for building resilient SMEs

“…SMEs 1 in Europe contribute to the economic development by virtue of their sheer numbers and increasing share in employment and gross domestic product (GDP) (Van Gils 2005, Mikhailitchenko andLundstrom 2006). Although the importance of SMEs to the wider economy is now widely understood, their needs to sustain their businesses are often underrepresented (North et al 1998).…”

“…It is, therefore, not surprising, particularly in the recent economic downturn, that sustainability of SMEs is vitally important for the global economy (Mikhailitchenko and Lundstrom 2006). Also, the diversification of international business connects SMEs in joint ventures and encourages their integration with larger firms which render SME studies both an attractive and relevant research topic (Mikhailitchenko and Lundstrom 2006). Such facts have led to the conception of 'sustainable SMEs' that should be 'robust and resilient in face of anticipated and unanticipated economic, environmental and social challenges' (Moore and Manring 2009, p. 277).…”

“…Ates and U. Bititci conclude that EU competitiveness is significantly influenced by the performance of its SMEs 2 . It is, therefore, not surprising, particularly in the recent economic downturn, that sustainability of SMEs is vitally important for the global economy (Mikhailitchenko and Lundstrom 2006). Also, the diversification of international business connects SMEs in joint ventures and encourages their integration with larger firms which render SME studies both an attractive and relevant research topic (Mikhailitchenko and Lundstrom 2006).…”

Role of Enterprise Architecture in Healthcare Organizations and Knowledge-Based Medical Diagnosis System

“…One is that SMEs are "enterprises which employ fewer than 250 staff and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro" (Article 2 of the Annex of Recommendation 2003/361/EC). SMEs in Europe contribute to economic development by virtue of their sheer numbers and increasing share in employment and gross domestic product (GDP) (Van Gils 2005, Mikhailitchenko andLundstrom 2006).…”