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High performance: ownership and decision‐making in SMEs

High performance: ownership and decision‐making in SMEs Purpose – To date there is a dearth of research on strategic decision‐making in manufacturing small and medium sized firms. This research paper focuses on the key drivers of decision‐making and organisational performance: ownership, decision‐making (type and level) and employee deployment. These drivers are defined and operationalised. Design/methodology/approach – The validity of the constructs used and their relevance was tested through the qualitative phase of the research – in‐depth interviews with chief executives and employer representative bodies. The survey instrument was also pilot tested. Findings – The findings indicate that the sample can be divided into performance leaders and laggards. Over 75 per cent of the leaders are independently owned and over 66 per cent of the laggards are subsidiary firms. Accordingly, ownership is a key factor in overall performance. This is confirmed by the degree of profitability of both classifications. Practical implications – The practical implications of the study are outlined in the paper. Chief executives are encouraged to focus on the aspects of ownership, decision making, and employee deployment that are associated with enhanced performance. Originality/value – This study focuses on decision making and employee deployment according to ownership and overall performance – factors hitherto under researched in SMEs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

High performance: ownership and decision‐making in SMEs

Nicholas O'Regan; Martin Sims; Abby Ghobadian
Management Decision , Volume 43 (3): 15 – Mar 1, 2005
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References (59)

Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
0025-1747
DOI
10.1108/00251740510589760
Publisher site
See Article on Publisher Site

Abstract

Purpose – To date there is a dearth of research on strategic decision‐making in manufacturing small and medium sized firms. This research paper focuses on the key drivers of decision‐making and organisational performance: ownership, decision‐making (type and level) and employee deployment. These drivers are defined and operationalised. Design/methodology/approach – The validity of the constructs used and their relevance was tested through the qualitative phase of the research – in‐depth interviews with chief executives and employer representative bodies. The survey instrument was also pilot tested. Findings – The findings indicate that the sample can be divided into performance leaders and laggards. Over 75 per cent of the leaders are independently owned and over 66 per cent of the laggards are subsidiary firms. Accordingly, ownership is a key factor in overall performance. This is confirmed by the degree of profitability of both classifications. Practical implications – The practical implications of the study are outlined in the paper. Chief executives are encouraged to focus on the aspects of ownership, decision making, and employee deployment that are associated with enhanced performance. Originality/value – This study focuses on decision making and employee deployment according to ownership and overall performance – factors hitherto under researched in SMEs.

Journal

Management Decision – Emerald Publishing

Published: Mar 1, 2005

Keywords: Decision making; Organizational performance; Small to medium‐sized enterprises; Corporate ownership

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