Accepting the unacceptable: Institutional and behavioral patterns in advising small and medium sized firms
2005 (English)Conference paper (Other academic)
Although a majority of all small and medium sized enterprises (SMEs) need advice thepreparedness to accept advice among SMEs is often low. In what we call the formalinstitutionalized advice setting the SME owner finds him- or herself in a setting where thedispositions have been set before hand. In this system the main institutional context is that ofstandardization, formalized interaction and bureaucratic interaction processes. In this paperwe investigate how banks, as one of the actors belonging to the formal institutionalized advicesetting, are perceived as advisors by Swedish SMEs. The empirical material upon which ourhypotheses will be tested emanates from a survey targeting the CEOs of 1130 randomlysampled Swedish SMEs with up to 200 employees. A total of 343 surveys were returnedgiving a response rate of 30.4 percent. LISREL, which is a structural equation modelingmethod, was used to analyze the survey data. The findings indicate that the failure of banks,and other actors belonging to the formal institutionalized advice setting, in providing advicecan be found in the type of interaction they conduct with SMEs. These organizations areinstitutionalized in a way that does not correspond well to the type of behavior shown bySMEs. However, these actors have the potential to become better SME advisors. This couldbe achieved if the principles of non-standardization, non-formalization and personalresponsibility were to be advocated and followed by those in charge of SME interaction inthese organizations.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:kth:diva-60970OAI: oai:DiVA.org:kth-60970DiVA: diva2:478302
50th ICSB conference in Washington
QC 201201192012-01-162012-01-162012-02-22Bibliographically approved