Team‐managed growing SMEs: a distinct species?

Abstract

Purpose The aim of this article is to identify strategic factors differentiating team‐managed growing small and medium enterprises (SMEs) and individually managed growing SMEs. Design/methodology/approach The study took a holistic and wide‐ranging approach to factors affecting SME growth and performance, and analyzed the data of 63 team‐managed SMEs and 45 individually managed SMEs. Findings The main finding was that there are few differences between team‐managed growing SMEs and individually managed growing SMEs. Moreover, the variables differing between the two groups of SMEs were not related to firm performance outcomes or strategic choices made by the firms. In addition, the effect of team for strategic choices is not associated with the size of an SME. Research limitations/implications The study focused on growing established SMEs. The findings question the impact of team for firm performance and strategies in the context of growing SMEs. This suggests that the role of team management in the context of growing SMEs can be different from the role in other contexts. However, the study has several limitations which may affect the results. Practical implications The strategies employed by growing SMEs are not dependent on whether the firm is managed by a team or by a solo entrepreneur. Originality/value The findings suggest that team‐managed growing SMEs are not a distinct species among growth SMEs. There are no differences in firm performance or strategic choices between team‐managed growing SMEs and individually managed growing SMEs.