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Employee Training in SMEs: Effect of Size and Firm Type—Family and Nonfamily

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  • Bernice Kotey
  • Cathleen Folker

Abstract

The study examined the main and interaction effects of size and firm type on a variety of informal and formal training programs in small and medium‐sized enterprises (SMEs). Samples of 448 family and 470 nonfamily SMEs were separated into four size groups and differences were assessed using multivariate analyses of variance. The results point to prevalence of informal training for all sizes and an increase in adoption of formal, structured, and development‐oriented training with increasing firm size (especially for firms with 20–99 employees). This pattern was evident for nonfamily but not for family firms. For family firms, formal training programs increased significantly during the critical growth phase only (20–49 employees). Gaps in employee training between the two types of firms were greatest at 50–99 employees but narrowed thereafter at 100–199 employees. The approach to employee training in family SMEs is in consonance with their slower growth, informal management styles, limited financial resources, and greater emphasis on efficiency compared with nonfamily SMEs.

Suggested Citation

  • Bernice Kotey & Cathleen Folker, 2007. "Employee Training in SMEs: Effect of Size and Firm Type—Family and Nonfamily," Journal of Small Business Management, Taylor & Francis Journals, vol. 45(2), pages 214-238, April.
    • Handle: RePEc:taf:ujbmxx:v:45:y:2007:i:2:p:214-238
    DOI: 10.1111/j.1540-627X.2007.00210.x
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    Cited by:

    1. Mireille Chidiac El Hajj, 2018. "A closer look at the corporate governance in Lebanon: A call for a bottom-up reform," Post-Print hal-04085842, HAL.
    2. Bekezela Moyo & Edinah Moyo, 2017. "SMEs Management Practices in a Hostile Business Environment in Zimbabwe," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 4(1), pages 1324-1324, December.
    3. Peláez-León, Juan David & Sánchez-Marín, Gregorio, 2023. "High-performance work systems in family firms: A mixed gamble approach," Journal of Business Research, Elsevier, vol. 156(C).
    4. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.

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