Understanding how perceived barriers influence growth intentions and behaviours

Abstract

PurposeThis paper aims to expand on existing conceptualisations of barriers to small business growth by addressing the question of how, or in what ways, do perceived barriers influence the growth intentions and behaviours of owner‐managers?Design/methodology/approachAdopting an interpretive methodological approach, in‐depth semi‐structured interviews were held with 27 owner‐managers working in St Petersburg, Russia. Participants were asked about their intentions for their businesses, how they intended to grow and what, if anything, prevented or interfered with these intentions. Template analysis was used to develop owner‐managers' perceptions and experiences of barriers to growth, and to facilitate theory building.FindingsSix ways in which perceived barriers influence the growth intentions and behaviours of small business owner‐managers were identified. Barriers: stop owner‐managers from intending to grow; undermine intentions; add to the ambivalence around growth intentions; provide incentives to grow; postpone intention realization; and slow down the process of realizing intentions to grow.Research limitations/implicationsBecause data were collected at one point in time, it was not possible to capture the dynamic nature of barriers or the intentions/behaviours they influenced. Future research could be strengthened through the use of longitudinal designs and process‐based methods (e.g. diary studies).Practical implicationsEducators and policy makers should help owner‐managers understand the ways in which barriers can affect business growth and be overcome.Originality/valueThis study is the first to examine how barriers influence growth intentions and behaviours, and to facilitate theory development on the topic.

Crossing the threshold from founder management to professional management in Russian firms

“…We discovered that institutions appear to operate in different ways in relation to how they are perceived by founder-CEOs to influence their intentions and behaviour. Thus the main findings of our study extend the knowledge body on perceived institutional barriers in the Russian context (Doern, 2011;Pissarides et al, 2003).…”

“…Previous research indicated that subjective opinions or 'reality-as-perceived' by the business owners and managers has an influence on both growth motivation and direct behaviour (Davidsson, 1991;Delmar and Wiklund, 2008;Doern, 2009;2011). Theoretical support for the effect of perceptions on actual behaviour is an integral part of institutional theory (North, 1990), and there is empirical evidence of relationships between perceived formal and informal barriers to business operations and a firm's growth in emerging economies (Aidis, 2005;Hashi, 2001;Pissarides et al, 2003).…”

Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities

“…In particular, literature knows very little about the characteristics of growing firms, which are main drivers of employment growth (Hölzl 2009). Entrepreneurs' growth-orientation in empirical research is very important from the policy angle as few small firms intent to grows, and therefore it provides limited contribution to the economy and therefore questioning the start-up support policies (Santarelli and Vivarelli 2007;Shane 2009;Doern 2011;Román et al 2013). Studies on transition context usually overemphasis institutional environment at the expense of the internal factors such as firm, strategy and management factors (Krasniqi 2012).…”

A consideration of organisational sustainability in the SME context

“…Assumptions that small firms or SMEs are considered "scaled-down" versions of a large firm have been successfully challenged in the literature, and there is widespread acceptance that small businesses are not just "little big businesses" (Hill et al, 2002). SMEs have their own particular characteristics that affect the way they operate (Doern, 2012;Filley and Aldag, 1988;Kohtamakii et al, 2012;Kwong, Jones-Evans and Thompson, 2012;Roper and Scott, 2009;Tierney et al, 2012). This supports the assertion that the unique characteristics of the SME require existing organisational sustainability models to be revisited to take cognisance of the particular context and circumstances in which such firms operate.…”