Business intelligence, cooperative corporate venturing relating to SMME growth in South Africa
Date
2014-07-11
Authors
Campbell, Harold
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Abstract
Small, medium and micro enterprises (SMMEs) face significant challenges that include resource scarcity and information asymmetry (when competing with larger well-established firms), and the general problems associated with making timely, market-aware strategic decisions. SMMEs may be able to improve their firm performance by copying aspects of corporate entrepreneurship, such as cooperative corporate venturing, and by adopting of technological innovations such as the use of business intelligence. These are initiatives that are typically utilised by large well-established firms; however, SMMEs should derive similar benefits from cooperative corporate venturing and business intelligence, as would larger well-established firms.
This study sought to determine the relevance of business intelligence and cooperative corporate venturing in the operation of small, medium and micro enterprises and the relation thereof to the economic performance of these firms, as perceived by the owner-managers of the firm.
The study was performed by examining the perceived impact that the strategic initiatives, (namely business intelligence and cooperative corporate venturing) would have on SMME firm economic performance, from the perspective of owner-managers of the firm who participated in the survey. Quantitative data was obtained through a self-administered questionnaire, which was distributed electronically to SMMEs whose email addresses were found online, and physically to individuals attending forums (and workshops) for SMMEs and entrepreneurs; companies operating in and around industrial parks and villages; and, members of the Wits business school community.
It was shown in this study that there is indeed a relationship between the adoption of cooperative corporate venturing and the perceived level of SMME firm performance. Ample research has not been conducted that focuses on the hybrid strategy of business intelligence and cooperative corporate venturing on SMME firm performance. This is area of research that potentially benefits SMMEs, and both academic and business intelligence stakeholders.
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Keywords
Small business, South Africa, Entrepreneurship, Venturing, Business intelligence