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Adapting to peripherality: a study of small rural manufacturing firms in northern England

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  • DAVID SMALLBONE
  • DAVID NORTH
  • CHRISTOS KALANTARIDIS

Abstract

Using empirical data drawn from two studies of manufacturing SMEs in ‘remote’ rural areas in northern England, the paper examines some of the ways in which firms have adapted to the characteristics of their local external environment over a 16-year period. The evidence presented suggests that in both the 1980s and 1990s successful adaptation to local conditions in peripheral rural regions included: proactive product and market development to overcome the limited size and scope of local markets; a labour-intensive development path to exploit the potential advantages of remote rural labour markets; and a relatively low level of subcontracting-out of production activities. The study also shows that whilst the recession of the early 1990s had an impact on the annual profitability and sales growth performance of rural manufacturing SMEs, its impact on their survivability was less than might be expected.

Suggested Citation

  • David Smallbone & David North & Christos Kalantaridis, 1999. "Adapting to peripherality: a study of small rural manufacturing firms in northern England," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 109-127, April.
    • Handle: RePEc:taf:entreg:v:11:y:1999:i:2:p:109-127
    DOI: 10.1080/089856299283227
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    Cited by:

    1. Lirios Alos-Simo & Antonio J. Verdu-Jover & Jose M. Gomez-Gras, 2020. "Knowledge Transfer in Sustainable Contexts: A Comparative Analysis of Periods of Financial Recession and Expansion," Sustainability, MDPI, vol. 12(12), pages 1-24, June.
    2. Jaafar, Mastura & Maideen, Siti Aishah, 2012. "Ecotourism-related products and activities, and the economic sustainability of small and medium island chalets," Tourism Management, Elsevier, vol. 33(3), pages 683-691.
    3. David Deakins & Jo Bensemann, 2019. "Achieving Innovation In A Lean Environment: How Innovative Small Firms Overcome Resource Constraints," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-36, May.
    4. Rachel Doern & Nick Williams & Tim Vorley, 2016. "Entrepreneurship and crises: business as usual?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(5-6), pages 471-475, May.
    5. Thomä, Jörg, 2022. "An urban-rural divide (or not?): Small firm location and the use of digital technologies," ifh Working Papers 37/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    6. Nicola Meccheri & Gianluigi Pelloni, 2003. "On the role of human capital and instruments of assistance for rural entrepeneurship and development: evidence from a case study in mountainous Italy," Quaderni di Dipartimento 0, Department of Statistics, University of Bologna.
    7. Elisabeth F. Mueller & Carola Jungwirth, 2022. "Are cooperative firms more agile? A contingency perspective on small and medium-sized enterprises in agglomerations and peripheral areas," Small Business Economics, Springer, vol. 58(1), pages 281-302, January.
    8. Andrew Copus & Dimitris Skuras & Kyriaki Tsegenidi, 2006. "Innovation and Peripherality: A Comparative Study in Six EU Member Countries," ERSA conference papers ersa06p295, European Regional Science Association.
    9. Hélène Blasquiet-Revol & Marie-Anne M.-A. Lenain & Cédric Verbeck & E. Grasset & Jean-François Mamdy, 2009. "Creation D’Activites Et D’Emplois Dans Les Espaces Ruraux : Etat Des Lieux Des Approches Et Des Postures," Post-Print hal-02129622, HAL.
    10. Anne Margarian & Cécile Détang-Dessendre & Aleksandra Barczak & Corinne Tanguy, 2022. "Endogenous rural dynamics: an analysis of labour markets, human resource practices and firm performance," SN Business & Economics, Springer, vol. 2(8), pages 1-33, August.
    11. Borch, Odd Jarl & Roaldsen, Ingrid H.E., 2007. "Competitive positioning and value chain configuration in international markets for traditional food specialties," 105th Seminar, March 8-10, 2007, Bologna, Italy 7857, European Association of Agricultural Economists.
    12. N. Meccheri & G. Pelloni, 2004. "On the Role of Human Capital and Instruments of Assistance for Rural Entrepreneurship and Development: Evidence from A Case Study Mountainous Italy," Working Papers 504, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Adcock, Christopher & Hua, Xiuping & Mazouz, Khelifa & Yin, Shuxing, 2014. "Does the stock market reward innovation? European stock index reaction to negative news during the global financial crisis," Journal of International Money and Finance, Elsevier, vol. 49(PB), pages 470-491.
    14. J. Kirk Ring & Ana Maria Peredo & James J. Chrisman, 2010. "Business Networks and Economic Development in Rural Communities in the United States," Entrepreneurship Theory and Practice, , vol. 34(1), pages 171-195, January.

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