Munificence contingent small business growth model (special emphasis to African SMEs’ context)

Abstract

Classifications:B. Functional management and growth of an SME; C. Strategic management and change in an SME; Factors of success and failure in SME and entrepreneurial firms; Growth of SMEs; Managing change in an uncertain and changing environment Abstract:Despite the growth in number and kind of research emphasizing small and medium-sized enterprises (SMEs), little is known about the relationship between drivers and modes of SMEs' growth. To address this gap, the paper systematically analyzes the relationship between growth drivers and strategies based on the dynamic resource-based view and proposes munificence contingent growth model. The authors argue that the selection of growth strategy should base on firm's resource and environmental munificence settings. Firms can select either organic or inorganic growth strategies based on the abundance or scarcity of certain resources and the accommodative capacity of the economic environment. When the economic environment comes with attractive opportunities SMEs tend to cooperate with other firms either through collaborative framework or diversification strategies. Conversely, when they are faced with very competitive market conditions and the resource availability is limited bootstrapping strategies found to be helpful to maintain competitiveness and thrive. Subsequently, as the resource muscle of the firm develops through bootstrapping strategies SMEs are expected to employ expansion strategies.

Medıatıng Role Of Munıfıcence In The Small Busıness Networkıng And Sustaınabılıty Relatıonshıps

“…This study has shown that business networking has a positive and significant relationships with entrepreneurial munificence. The findings of this investigation complement those of recent research by Alemayehu & Vuuren (2017) and Long & Dong (2017) who reported that small business will tend to collaborate more in munificence environment when the entrepreneurial resources are in abundance. It is suggested that small and micro enterprise technology based rural business need to develop collaborative https: //dx.doi.org/10.15405/epsbs.2018.07.02.86 Corresponding Author: Othman Chin Selection and peer-review under 828 strategies with other firms and relevant governmental agencies to grab the opportunities available in a munificence environment.…”

Exploring the Development Strategies of Rural Small, Medium and Micro Enterprises

“…Although the strategy was proclaimed to promote market and customer expansion, it seems to have implications for rural SMMEs in South Africa in general and in the study area in particular, since they are characterized by inadequate resources, and the strategy's implementation could deplete the scarce resources, leading to the SMMEs stagnation or collapse. The above results are not surprising, since it can be explained that this strategy is also dependent on the prevailing economic environment, which in most cases must be favorable (Alemayehu and Van Vuuren, 2017). The environment of the surveyed SMMEs is not favorable.…”

“…The favorable economic environment encourages SMEs to cooperate with other businesses through diversification strategies (Alemayehu and Van Vuuren, 2017), whereby SMMEs offer new products to new markets (Ansoff, 2008;Johnson et al, 2008). This strategy is complex in implementation (Veseli et al, 2012), since a business enters markets in which it has little or no experience.…”

“…Growth is an important measure for business success and critical to employment and wealth creation, while contributing significantly to a country's wealth (Alemayehu and Vuuren, 2017;Lazányi, 2014;Neneh and Vanzyl, 2014). By itself, growth is critical among SMMEs whose strategic significance in noted not only in the South African (SA) economic structure, but around the world (Asare et al, 2015; Department of Trade and Industry (DTI), 2013; Frentzen and Rampadarios, 2013;Love and Roper 2013;Mitchelmore and Rowley, 2013;Statistics South Africa, 2015;Ramukumba, 2014;Wang, 2016).…”

¿Cómo generar crecimiento rentable en pymes de ingeniería? Análisis a través de un estudio de caso

“…En línea con lo anterior, la disponibilidad de recursos que ofrece el entorno, en el cual opera la empresa, es fundamental para generar crecimiento (Todd, Javalgi y Grossman, 2014). Bajo este mismo punto de vista, otra investigación determinó que una empresa puede adoptar 4 avenidas de crecimiento, en función al entorno y a la cantidad de recursos con los que cuente (Alemayehu y van Vuuren, 2017).…”