Climbing the mountain: management practice adoption in growth oriented firms in Wales

Abstract

PurposeThis paper proposes that owner‐managers of growth firms are more likely to have developed or acquired managerial practices that facilitate such expansion. The paper, therefore, examines how growth oriented firms in Wales have adopted management practices to build the necessary entrepreneurial capacity to sustain growth.Design/methodology/approachA group interview technique was utilised to examine the management development process in 18 growing firms across the manufacturing, construction sectors.FindingsThe research highlighted that whilst firms argued that the management practices they had implemented were to facilitate further growth, the relative importance of practices such as marketing, financial management and planning varied across sectors. Furthermore, it was apparent that growth firms identified in this study were more inclined to look at the adoption of management practices from a strategic perspective.Research limitations/implicationsThe exploratory nature of this study means that it is difficult to generalise these findings outside the boundaries of the adopted research strategy. In addition, links between performance and managerial action are always very difficult to demonstrate conclusively as this process is often dependent on owner‐managers recounting and recognising cause and effect relationships. Nevertheless, the study does strengthen existing academic argument that key management practices outlined in this paper are regularly adopted by growing firms.Practical implicationsThe findings will assist policy makers and owner/managers with regard to identifying and understanding why certain management practices engender small business growth.Originality/valueThe paper adds its support to the growing literature which examines the process of management development in small growth firms. Moreover, given Wales' current dearth of growth oriented firms, the paper implies that policy makers should support training and initiatives that develop entrepreneurial and managerial competencies that are industry specific.