What Do They Think and Feel about Growth?

An Expectancy-Value Approach to Small Business Managers Attitudes Toward Growth by Per Davidsson, Frederic Delmar, & Johan Wiklund Synopsis and Critique by Carlton Morgan Synopsis: This article focuses on small business managers motivation to expand their firms. In particular, it examines the relationships between the expected consequences of growth on the one hand, and the overall attitude toward growth on the other. The authors build on the expectancy-value theory of attitudes to show how the overall attitude towards growth is influenced by specific cognitive beliefs about growth. Attitudes can be broken down into three different classes: 1. Cognitive responses beliefs or thoughts people have about the attitude object 2. Affective responses feelings or moods people have in relation to the attitude object 3. Behavioral responses overt actions shown by people in relation to the attitude object The authors believe that these dimensions represent three casually linked constructs: belief, attitude, and intentions. Using these constructs the authors put together 8 Hypothesis related to managers view about growth. 1. Increased size would lead to a reduction (increase) of the owners workload is associated with a more positive (negative) attitude toward growth. 2. Increased size would allow the owner to spend more (less) tie on favored work task is associated with a more positive (negative) attitude toward growth. 3. Increased size would make employees enjoy work more (less) is associated with a more positive (negative) attitude toward growth. 4. Increased size would increase (decrease) the owners income and other disposable economic benefits is associated with a more positive (negative) attitude toward growth. 5. Increased size would enhance (reduce) the owners ability to control operations is associated with a more positive (negative) attitude toward growth. 6. Increased size would increase (decrease) the firms independence in relation to customers, suppliers, and lenders is associated with a more positive (negative) attitude toward growth. 7. Increased size would make it easier (harder) for the firm to survive a severe crisis s associated with a more positive (negative) attitude toward growth. 8. Increased size would make it easier (harder) for the firm to maintain the quality of products and services is associated with a more positive (negative) attitude toward growth. Data was collected in three different studies over a ten year period using the same measuring instrument to test the hypotheses. The results suggest that noneconomic concerns may be more

important than expected financial outcomes. More exactly, the concern for employee well-being comes out strongly. Employee well-being was the most important explanatory variable in all the samples while workload and work-task appeared to be relatively unimportant. This is interpreted by the authors as reflecting a concern that the positive atmosphere of the small organization might be lost in growth. They further conclude that this concern may be a cause for recurrent conflict for small business managers when deciding about the future route for their firms. Ultimately the authors believe that if the attitudes of small business owners regarding growth can be changed for the positive then small business owners would be more motivated to grow. Critique: I thought the article was filled with loads of information and the authors provided a substantive amount of data. I do agree that the attitude of small business owners/managers can influence their perception and willingness to grow their business. I also agree that if these attitudes are changed that small business owners would be more motivated to grow. However I think the authors could have put some focus on the fears small business owners/ managers may encounter when confronted with the opportunity for growth. I feel that fear does play a part in a managers decision to grow. Whether it is the fear of failure or the fear of success; my thought is that fear is pivotal in the decision to grow. Discussion Questions Would you let non-economic concerns hinder you from growing your business? In our opinion what types of non-economic concerns are more important that growth?