Managers’ mindfulness concerning institutional obstacles and the survival of SMEs
Abstract
The study aims to identify the relationship between managers’ mindfulness concerning business obstacles in an institutional context and the survival of small and medium enterprises (SMEs). The investigation was based on the data gathered in Poland through two linked studies. A Kaplan and Meier (1958) nonparametric estimation analysis was used to verify the hypotheses. The study’s findings show that SMEs with mindful managers, paying attention to the institutional business barriers, survive longer than the other SMEs. The study results also reveal that the probability of SMEs survival significantly increases when managers are aware that bureaucracy constitutes a barrier to their firms’ development. By identifying new effects of managers’ mindfulness, the study’s outcomes support the theory of mindfulness and extend the knowledge on mindfulness in organizations. Moreover, the survey findings support the institutional theory concerning business and entrepreneurship.
First published online 24 March 2022
Keyword : mindfulness, organization, manager, survival, SME, small and medium firms
How to Cite
Steinerowska-Streb, I. (2022). Managers’ mindfulness concerning institutional obstacles and the survival of SMEs. Journal of Business Economics and Management, 23(3), 569–585. https://doi.org/10.3846/jbem.2022.16114
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Cepel, M., Dvorsky, J., Gregova, E., & Vrbka, J. (2020). Business environment quality model in the SME segment. Transformations in Business & Economics 19(1), 262–283.
Coeurderoy, R., Cowling, M., Licht, G., & Murray, G. (2012). Young firm internationalization and survival: Empirical tests on a panel of “adolescent” new technology-based firms in Germany and the UK. International Small Business Journal, 30(5), 472–492. https://doi.org/10.1177/0266242610388542
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Dane, E. (2011). Paying attention to mindfulness and its effects on task performance in the workplace. Journal of Management, 37(4), 997–1018. https://doi.org/10.1177/0149206310367948
Dronca, A. T. (2016). The influence of fiscal freedom, government effectiveness and human development index on tax evasion in the European Union. Theoretical and Applied Economics, 23(4(690)), 5–18.
Eesley, Ch. E., Eberhart, R. N., Skousen, B. R., & Cheng, J. L. C. (2018). Institutions and entrepreneurial activity: The interactive influence of misaligned formal and informal institutions. Strategy Science, 3(2), 393–407. https://doi.org/10.1287/stsc.2018.0060
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Fairle, R., & Robb, A. (2004). Families, human capital, and small business: Evidence from the characteristics of business owners survey (IZA Discussion Paper No 1296). Bonn. http://ftp.iza.org/dp1296.pdf
Fang, H., Memili, E., Chrisman, J. J., & Welsh, D. H. B. (2012). Family firms’ professionalization: Institutional theory and resource-based view perspectives. Journal Small Business Institute, 8(2), 12–34. https://www.sbij.org/index.php/SBIJ/article/view/148
Fuentelsaz, L., González, C., Maícas, J., & Montero, J. (2015). How different formal institutions affect opportunity and necessity entrepreneurship. Business Research Quarterly, 18(4), 246–258. https://doi.org/10.1016/j.brq.2015.02.001
García-Ramos, C., Gonzalez-Alvarez, N., & Nieto, M. (2017). Institutional framework and entrepreneurial failure. Journal of Small Business and Enterprise Development, 24(4), 716–732. https://doi.org/10.1108/JSBED-10-2016-0153
Gnyawali, D. R., & Fogel, D. S. (1994), Environments for entrepreneurship development: Key dimensions and research implications. Entrepreneurship Theory and Practice, 18(4), 43–62. https://doi.org/10.1177/104225879401800403
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Greenwood, R., Diaz, A. M., Li, S. X., & Lorente, J. C. (2010). The multiplicity of institutional logics and the heterogeneity of organizational responses. Organisation Science, 21(2), 521–539. https://doi.org/10.1287/orsc.1090.0453
Hansen, H., Rand, J., & Tarp, T. (2009). Enterprise growth and survival in Vietnam: Does Government support matter? The Journal of Development Studies, 45(7), 1048–1069. https://doi.org/10.1080/00220380902811025
Hu, Y., Zaho, X., & Chen, Y. (2019).The influence of managerial mindfulness on innovation: Evidence from China. Sustainability, 11(10), 2–20. https://doi.org/10.3390/su11102914
Kaplan, E. L., & Meier, P. (1958). Nonparametric estimation from incomplete observations. Journal of the American Statistical Association, 53(282), 457–481. https://doi.org/10.2307/2281868
Kelemen, P., Born, E., & Ondráček, T. (2020) Theorizing on the connection between organizational and individual mindfulness. Economic Research-Ekonomska Istraživanja, 33(1), 1813–1829. https://doi.org/10.1080/1331677X.2020.1761417
Komninos, D., Dermatis, Z., Anastasiou, A., & Liargovas, P. (2020). The effect of over-taxation and corruption at commercial enterprises in Greece: Evidence from a survey experiment. Journal of Statistical and Econometric Methods, 9(4), 153–170. https://doi.org/10.47260/jsem/vol9410
Lange, S., Bormann, K. C., & Rowold, J. (2018). Mindful leadership: mindfulness as a new antecedent of destructive and transformational leadership behavior. Gruppe. Interaktion. Organisation. Zeitschrift für Angewandte Organisationspsychologie (GIO), 49, 139–147. https://doi.org/10.1007/s11612-018-0413-y
Larson-Garcia, C., Dent, E. B., & Wharff, D. W. (2018). Mindfulness: A practice for improved middle manager decision making. Academy of Management Proceedings, 2018(1). https://doi.org/10.5465/AMBPP.2018.12203abstract
Limphaibool, W., Buranapin, S., & Jariangprasert, N. (2020). Enhancement of organizational resilience in SME through multilevel mindfulness: A conceptual model. International Journal of Entrepreneurship, 24(4), 1–12.
Manjón-Antolín, M. C., & Arauzo-Carod, J. M. (2008). Firm survival: Methods and evidence. Empirica, 35, 1–24. https://doi.org/10.1007/s10663-007-9048-x
Matejun, M. (2010). Zewnętrzne bariery rozwoju w cyklu życia małych i średnich przedsiębiorstw. Prace Naukowe UE we Wrocławiu, 116, 243–254.
North, D. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97–112. https://www.jstor.org/stable/1942704
North, D. (1993). New institutional economics and development (Working paper).
OECD. (2017) Financing SMEs and entrepreneurs 2017. An OECD scoreboard. Highlights. https://www.oecd.org/cfe/smes/Financing%20SMEs%20and%20Entrepreneurs%202017_Highlights.pdf
Owusu‐Frimpong, N., & Nwankwo, S. (2012). Service quality orientation: An approach to diffusing mindfulness in SMEs. International Journal of Quality & Reliability Management, 29(6), 681–698. https://doi.org/10.1108/02656711211245665
Patel, T., & Holm, M. (2018). Practicing mindfulness as a means for enhancing workplace pro-environmental behaviours among managers. Journal of Environmental Planning and Management, 61(13), 2231–2256. https://doi.org/10.1080/09640568.2017.1394819
Pathak, S., & Muralidharan, E. (2016). Informal institutions and their comparative influences on social and commercial entrepreneurship: The role of in‐group collectivism and interpersonal trust. Journal of Small Business Management, 54(S1), 168–188. https://doi.org/10.1111/jsbm.12289
Phiri, J., & Guven-Uslu, P. (2019). Social networks, corruption and institutions of accounting, auditing and accountability. Accounting, Auditing & Accountability Journal, 32(2), 508–530. https://doi.org/10.1108/AAAJ-07-2017-3029
Raza, A., Muffatto, M., & Saeed, S. (2020). Cross-country differences in innovative entrepreneurial activity: An entrepreneurial cognitive view. Management Decision, 58(7), 1301–1329. https://doi.org/10.1108/MD-11-2017-1167
Rothouse, M. J. (2020). A mindful approach to team creativity and collaboration in organisations. In R. Reiter-Palmon (Ed.), Palgrave studies in creativity and innovation in organizations. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-47675-5
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for business students. Financial Times/Prentice Hall.
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