Strategies for growth and the barriers faced by new technology‐based SMEs

Abstract

The relevance and importance of the high technology small firm sector to economies has been discussed by a number of authors and new technology‐based firms (NTBFs) have been viewed as having a very important role to play in job creation and as the seedbed of emerging industries. This paper illustrates the findings from a study involving 20 NTBFs based in the Aberdeen area of Scotland where small firms account for a large proportion of exports from the area. The methodology employed involved in‐depth interviews with owners, directors or senior managers. The sample was comprised of engineering companies, software developers, analytical services, instrumentation specialists and a biotech company. the strategic process was explored within each organisation and the difficulties that these NTBFs have in formulating strategies were identified. Questions were asked about relationships with stakeholders and the impacts of support mechanisms for the organisation in practice. Barriers to growth and development were identified and a model of the most important strategic issues was proposed which NTBFs could relate to. Key policy issues which the NTBFs consider important for their strategic growth included innovation, internationalisation, human resources and collaboration. Policy implications at the organisational, local and national levels are highlighted.

An institutional analysis of the new product development process of small and medium enterprises (SMEs) in China, Hong Kong and Taiwan

“…Small firm researchers identify the strategy-related components, for example technological scanning (Avlontis et al, 1994), formal strategic planning process (Keogh and Evans, 1999), organizational structure (Vossen, 1998) and internationalization (Fontes & Coombs, 1997), that affect NPD practices in small firms. Hadjimanolis' (2000) empirical work, however, shows evidence that organizational characteristics, namely technological resources (R&D intensity), organizational capabilities (technological information scanning and strategic planning) and external networking capabilities (the extent of co-operation with technology providers), affect the innovativeness of SMEs in Cyprus.…”

Alignment of Human Competencies with Mobile Phone Technology and Business Strategies by Women‐LED SMEs in South Africa

“…It should also be noted that the assessment of alignment here is based on the competencies, mobile technology usage of and business strategies applied by the women entrepreneurs leading these SMEs. This is because the management of SMEs and decision making in SMEs is mostly hinged on the shoulders of the owners, managers or partners of SMEs (Keogh and Evans, 1998;Kisfalvi, 2002).…”

Technological Innovations in Small Firms in the North-East of England

“…He demonstrated that some level of internal R&D commitment benefits innovation in small, high-technology firms. Keogh and Evans (1999), in their study of new technology-based firms (NTBFs) in the Aberdeen area of Scotland, found that 18 of the 20 firms interviewed considered innovation to be the engine of growth. Of the innovating firms, nearly 40% had product patents, which indicated the intensity and quality of innovation undertaken in small firms.…”