Management development issues for owners/managers of micro‐enterprises

Abstract

Management development has traditionally been perceived as being the domain of large rather than micro‐enterprises, with developmental issues normally being addressed by means of educational interventions.However, the challenges and obstacles for growth facing these micro‐enterprises (businesses employing ten people or fewer) differ significantly from those of a larger organisation. Reports on the current provision for management development as it relates to micro‐enterprises, and the perception of owners/managers in Ireland of the role of management development in the running of their companies. The objective of the research was to establish the nature and content of training and development interventions required by the owners/managers of micro‐enterprises. Preliminary research and findings indicated the need for a new approach towards the design of management development programmes for micro‐entrepreneurs. Taking into account the perceptions and preferences of owners/managers it is clear that a new approach to the design and delivery of management development programmes for micro‐entrepreneurs is needed. This new approach has implications for trainers as it includes changes not only in the content but also in the timing, location and delivery mechanism of programmes. The research results suggest a model for the formulation ofamanagement development training strategy for owners/managers of micro‐enterprises. Outlines design specifications for a management development programme for owners/managers, based on the model developed from the research findings.

Does Market Information Processing Improve Product Innovation Success of Small and Medium Enterprises?

“…Hypothesis 2: Supports that, as there is positive relationship among market information processing activities (acquisition, dissemination and utilization and product innovation success indicators (financial success and market success) [72]. This finding is consistent with past findings that market information processing activities could affects the success in product innovative at three different levels: project level (e.g., time, cost efficiency and functional success), product level (e.g., profitability, market share and revenues of the new product) and firm level (returns to the firm generated by the new product) suggested that stronger market information processing of a firm is reflected in a higher innovation success (such as both market and financial success).…”

Managerial capability for innovation for microfirms: integrating theory with empirical evidence

“…The nature of externally created innovation is argued to limit the owner/manager's potential regarding innovation, and such needs are met with relatively conservative responses in the interviewee firms. The direct contact between the owner/manager and the market in day-to-day operations of the firms provides an opportunity to articulate change and innovation, through direct sensing of the market (O'Dwyer and Ryan, 2000). In many of the firms sampled, the owner/managers exhibit an awareness of the market (Camison and Montfort-Mir, 2012) and some interviewees provide evidence supporting the opportunity to differentiate the firm from competitors through levels of guest interaction and yet each appear limited in terms of developing techniques to perform market analysis.…”

“…The informality discussed above is also manifest as a lack of formal planning structures (Greenbank, 2000) and by a lack of desire to engage with management development which may mask relatively sophisticated managerial capabilities which are context specific (Devins et al, 2005). In context this informality is often perfectly rational behaviour given that costs of developing new marketing and management systems are both risky and expensive (Cyr et al, 2011) and often unsuitable for the microfirm context (O'Dwyer and Ryan, 2000;Reinl and Kelliher, 2010).…”

“…From a stakeholder perspective, managerial capability manifests as relationships with local government, suppliers and competitors, advisors and wider stakeholder connections (Devins et al, 2005;Lowik et al, 2012), each argued to impact positively on a firm's performance. Market proximity presents the owner/manager with unique opportunities to interact with and sense market developments (Kelliher and Reinl, 2009;O'Dwyer and Ryan, 2000). Furthermore, owner/managers may engage in developing new marketing methods in the microfirm (Barnes et al, 2012).…”

“…The nature of the problem solving comprises a market sensing capability emerging from the close proximity and deep level of owner/manager customer interaction (Grissemann et al, 2013;O'Dwyer and Ryan, 2000). Market information is sieved in a unique way in microfirms due to the juxtaposition of the strategic and operational work in one person (Greenbank, 2000).…”