Organisational effectiveness of Australian fast growing small to medium‐sized enterprises (SMEs)

Abstract

Purpose Small to medium‐sized enterprises (SMEs) continue to make a major contribution to the Australian economy. However, research into organisational processes within SMEs has been limited to date. This study aims to examine the links between communication processes and organisational effectiveness in SMEs. Design/methodology/approach This quantitative study uses social capital theory as a framework to investigate whether employees' level of satisfaction with organisational communication processes affects organisational outcomes within three high growth manufacturing SMEs in one area of Australia. Findings Results indicate that organisational communication processes does affect employees' levels of ambiguity regarding customers, job satisfaction and commitment to their firms. Research limitations/implications While generalisability is limited because of the small number of SMEs participating in the study, the research indicates great potential for developing theoretical and practical insights into Australian SMEs that would assist industry and employees overall. Practical implications Implications for the growth strategies of SMEs, particularly in relation to the current skilled labour shortage, are discussed. Originality/value The paper contributes much needed theoretical development and research into SMEs.