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Management practices and SME performance

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  • John Forth
  • Alex Bryson

Abstract

We examine the association between management practices and SME performance in Britain over the period 2011–2015, using a unique dataset which links survey data on management practices with firm performance data from the UK's official business register. We find that SMEs are less likely to use formal management practices than larger firms. However, such practices appear to have demonstrable benefits for those SMEs who use them, being positively associated with firm survival, growth and productivity. Our results add further weight to policy initiatives which seek to encourage SMEs to improve their management skills and capabilities.

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  • John Forth & Alex Bryson, 2019. "Management practices and SME performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(4), pages 527-558, September.
    • Handle: RePEc:bla:scotjp:v:66:y:2019:i:4:p:527-558
    DOI: 10.1111/sjpe.12209
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    References listed on IDEAS

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    3. Rodríguez-Lesmes, Paul & Gutierrez, Luis H. & Urueña-Mejia, Juan Carlos & Ortiz, Andres & Medina Rojas, Ivan & Romero, Mauricio, 2023. "The role of local promoters in helping microentrepreneurs engage in digital business training. The case of Expertienda," Documentos de Trabajo 20902, Universidad del Rosario.
    4. Robin C. Sickles & Kai Sun & Thomas P. Triebs, 2021. "The optimal use of management," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1346-1363, July.
    5. Albanus Kioko Mutuku & Betty Nzula Kiilu & Philiph Mathuku & Daniel O. Auka, 2022. "Effect of Entrepreneurial Skills on Organizational Performance of Small and Medium Enterprises in Nakuru City-Kenya," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 156-173.
    6. Alecos Papadopoulos, 2021. "Measuring the effect of management on production: a two-tier stochastic frontier approach," Empirical Economics, Springer, vol. 60(6), pages 3011-3041, June.
    7. Abid Hussain & Sana Rashid & Sara Shabbir & Rizwan Qaiser Danish & Manzoor Ahmad Shah, 2021. "Mediating Role Of Productivity Between Performance Expectancy And Adaptive Performance Of Managers In Smes," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 178-188, September.
    8. Ali, Abdilahi & Ali, Syed Imran, 2020. "Antecedents of the propensity to learn management practices and their impacts on firm outcomes in emerging markets: A Bayesian Model Averaging approach," International Business Review, Elsevier, vol. 29(4).
    9. Juan Carlos Urueña-Mejía & Luis H. Gutierrez & Paul Rodríguez-Lesmes, 2023. "Financial inclusion and business practices of microbusiness in Colombia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 465-494, June.
    10. Abid Hussain & Muhammad Bilal & Sana Rashid, 2021. "An Empirical Investigation Of Information Quality And Usage Of Mobile Banking In Predicting Adaptive Performance: A Serial Mediation Model," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 134-147, March.
    11. Alex Bryson & John Forth & Helen Gray & Lucy Stokes, 2020. "Does Employing Older Workers Affect Workplace Performance?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 532-562, October.

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