Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Towards the Underlying Theories of Small Firm Growth: A Literature Review

As a pre-condition for the economic growth of a country, the concept of firm growth has emerged as a critical strategic issue for small businesses from the strategic management perspective. While some literature reviews have been conducted on small firm growth, a comprehensive review of theories emphasizing the association of intangible resources with the growth of small firms has not been conducted. This study aims to provide a literature review of extant theoretical perspectives of small businesses literature. For the review, materials are collected and extracted from various online databases, and results are analysed using classifier variables. Five theories of firm growth, namely, the resource-based theory, knowledge-based theory, dynamic capabilities theory, upper echelon theory and resource-dependency theory, are selected to review, associating the present research aim. The theories are compared using key attributes and outcomes. A clear direction towards an optimum theory to underpin the small firms’ growth has been provided from a resource-management perspective. By validating various theoretical perspectives to explain small business growth, the present study provides first-hand insights for managers to formulate strategies and creates a cornerstone for future empirical studies.

The influence of relational pluralism in developing collective corporate social responsibility strategies

Purpose

A literature gap has triggered a discussion on the influence of relational pluralism in the adoption of new practices of corporate social responsibility (CSR). Based on this literature, this paper aims to understand how relational pluralism influences small companies in the development of their collective CSR strategies.

Design/methodology/approach

This study used the case of a Brazilian hotel network called Charm Routes, which comprises 66 members. The study adopted a qualitative approach based on qualitative comparative analysis (QCA).

Findings

The results show that relational pluralism influences small companies in their collective CSR strategies. This is especially because of the relationships among different actors within the network.

Research limitations/implications

QCA does not explain the correlation between variables, but rather the logical relations among them. The adoption of multivariate techniques is suggested for future studies to evaluate the correlations among the variables and not only the possible causal conditions.

Practical implications

The results bring added clarity to the collective CSR strategies of networks composed of small companies.

Social implications

The findings may be of use to networks of small companies working collectively to develop initiatives aimed at providing social and environmental benefits.

Originality/value

Instead of a framework, the study generated the expression RPN*(INT+LON) → CSR_CS. This means that relational pluralism within the network, enhanced by the intensity and the longevity of the relationship, influences small companies in the development of their collective CSR strategies.

Socializar para Adequar-se: Como Redes Sociais Intraorganizacionais Podem Influenciar a Adequação Indivíduo-Organização

Resumo A adequação indivíduo-organização refere-se à congruência dos valores individuais do funcionário aos valores organizacionais. Essa adequação é explorada em diversos resultados individuais e organizacionais, tais como: desempenho, comprometimento, motivação, etc. Embora vários fatores tenham sido identificados como responsáveis por essa adequação, poucos estudos brasileiros exploraram quantitativamente o papel das redes sociais dentro das empresas. Esses relacionamentos construídos e mantidos dentro da organização são identificados pelos padrões de comunicação e interação entre os indivíduos, e podem interferir no nível de adequação indivíduo-organização. O objetivo desta pesquisa é compreender como as características das redes sociais, tais como grau de relacionamento, proximidade entre os atores e nível de intermediação, podem influenciar o nível de adequação indivíduo-organização. Realizou-se um survey com 116 funcionários de micro e pequenas empresas do setor de serviços. Os resultados da análise Partial Least Squares (PLS) indicam que o grau de relacionamento entre os funcionários influencia o nível de adequação indivíduo-organização. Ou seja, quanto mais o funcionário interage com seus colegas de trabalho, maior a probabilidade de adequação dos valores do indivíduo com os da organização.