Critical Business Environment Factors for SMEs in the UK Chemical Distribution Industry: A Qualitative Perspective
Abstract
The UK chemical distribution industry is a significant and well-established, yet fragmented and subject to strong consolidation, part of the chemical industry and a major contributor to the UK economy and employment. However, it remains largely unexplored, with limited research in the factors contributing to SMEs success. This paper, which is part of a larger-scale study, addresses a well-established gap in the UK chemical distribution industry and provides a qualitative perspective of the business environment factors critical to the success of small and medium-sized distributors. This research is based on the opinions of owners and very senior managers (Managing Directors, Directors, CEOs and CFO’s), an approach extensively used by other researchers. A total of 180 SMEs fulfilling the criteria of this study are identified with 118 owners/managers participating, generating a very satisfactory response rate of 65.5%. The paper informs key stakeholders and policy makers with a view to improve strategy formulation and decision-making process in supporting chemical distribution SMEs.
Downloads
References
Amorós, J. E., Bosma, N. S., & Levie, J. (2013). Ten Years of Global Entrepreneurship Monitor: Accomplishments and Prospects. International Journal of Entrepreneurial Venturing, 5 (2), 120-152. http://dx.doi.org/10.1504/IJEV.2013.053591.
Andersson, S., & Tell, J. (2009). The relationship between the manager and growth in small firms. Journal of Small Business and Enterprise Development, 16 (4), 586-598. http://dx.doi.org/10.1108/14626000911000938.
Arasti, R., Zandi, F., & Talebi, R. (2012). Exploring the Effect of Individual Factors on Business Failure in Iranian New Established Small Businesses. International Business Research, 5 (4), 2-11. http://dx.doi.org/10.5539/ibr.v5n4p2.
Beaver, G. (2002). Small Business, Entrepreneurship and Enterprise Development. Harlow: Pearson.
Benzing, C., Chu, H. M., & Kara, O. (2009). Entrepreneurs in Turkey: A Factor Analysis of Motivations, Success Factors, and Problems. Journal of Small Business Management, 47 (1), 58–91. http://dx.doi.org/10.1111/j.1540-627X.2008.00262.x .
Bloor, M., Wood, F. (2006). Keywords in Qualitative Methods: A Vocabulary of Research Concepts. 1st edition. London: SAGE Publications.
Boston Consulting Group (2013). The Growing Opportunity for Chemical Distributors: Reducing complexity for producers through tailored service offerings. [Online], https://www.bcgperspectives.com/content/articles/process_industries_supply_chain_management_growing_opportunity_chemical_distributors/#chapter1 (Accessed 20 February 2014).
Burns, N. A. (2010). Chemical Distributors. [Online], http://www.neilaburns.com/2010/11/chemical-distributors (Accessed 15 December 2014).
Caca, E. (2010). The Factors Influencing SMEs in Countries in Transition: The Albania Case. The International Journal of Interdisciplinary Social Sciences, 5 (3), 139-148.
CEFIC (2012). Facts and figures: the European chemical industry in a worldwide perspective, European Chemical Industry Council (CEFIC). [Online], http://www.cefic.org/Facts-and-Figures/Facts--Figures-Brochures (Accessed 14 February 2014).
CEFIC (2013). The European chemical Industry: Facts and Figures 2013. [Online], http://www.cefic.org/Facts-and-Figures (Accessed 15 May 2015).
Chawla, S. K., Khanna, D., Chen J. (2010). Are Small Business Critical Success Factors Same in Different Countries?. SIES Journal of Management, 7 (1), 1-12.
Chemagility (2008). UK Chemical Distributor Market Report 2008: Information, Insight and analysis of the UK Chemical distribution industry. Surrey: Chemagility.
Chemagility (2012). A Global Perspective on the World Chemical Distribution Market, First Panel Session: Chemical Distribution Industry Landscape. Presented at the FECC Annual Congress, Lisbon, May 21-23, 2012. [Online], http://www.assicconline.it/menu/documents/06_brown.pdf (Accessed 29 May 2015).
Chemagility (2015). United Kingdom Chemical Distribution Report 2015. Surrey: Chemagility.
Chemical Business Association (2015). CBA Supply Chain Trends March 2015. [Online], http://www.chemical.org.uk/news/cbanews/cbasupplychaintrendsmarch2015.aspx (Accessed 17 April 2015).
Districonsult (2013). Old Game - New Rules? Chemical Distribution in the Age of Volatility. [Online], http://www.districonsult.com/en/index-districonsult%2Bnewsletter-1-34%2B~%2Bold%2Bgame%2Bnew%2Brules%2B2013.html (Accessed 27 February 2015).
Dobbs, M., & Hamilton, R. T. (2007). Small business growth: recent evidence and new directions. International Journal of Entrepreneurial Behaviour and Research, 13 (5), 296-322. http://dx.doi.org/10.1108/13552550710780885.
European Chemicals Agency [ECHA] (2014). About us. [Online], http://echa.europa.eu (Accessed 19 January 2015).
European Union (2015). Fact and figures about the EU´s Small and Medium Enterprise (SMEs). [Online], http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/index_en.htm (Accessed 15 May 2015).
European Association of Chemical Distributors [FECC] (2011). Communication in the supply chain - distributors‘ challenge. ECHA – ENES Meeting 24th-25th November 2011, Brussels. [Online], https://echa.europa.eu/documents/10162/13587/echa_enes_jensen_korte_en.pdf (Accessed 25 June 2015).
European Association of Chemical Distributors [FECC] (2013). The Chemical distribution Sector in Europe. [Online], http://www.fecc.org/fecc/about-fecc/the-chemical-distribution-sector-in-europe (Accessed 35 June 2016).
European Association of Chemical Distributors [FECC] (2015). European business plan 2015. [Online], http://www.fecc.org/fecc/images/stories/downloads/GTDP/2014/FECC_BusPlan_2015_def.pdf (Accessed 14 February 2016).
Finfgeld-Connett, D. (2014). Use of content analysis to conduct knowledge-building and theory-generating qualitative systematic reviews. Qualitative Research, 14 (3), 341 - 352.
Flavell-While, C. (2012). Ch-Ch-Ch-Changes. The Chemical Engineer, 853 (2), 44-46.
Franco, M., & Haase, H. (2010). Failure factors in small and medium-sized enterprises: qualitative study from an attributional perspective. International Entrepreneurship and Management Journal, 6 (4), 503-521. http://dx.doi.org/10.1007/s11365-009-0124-5.
Frost, L. (2013). Distribution: Capturing growth opportunities. IHS Chemical Week, 4 November, 23-25.
Gbrich, C. (2007). Qualitative Data Analysis: An Introduction, 1st edition. London: Sage Publications.
Gray, D., Saunders, M., & Goregaokar, H. (2012). Success in challenging times: Key lessons for UK SMEs. Surrey: University of Surrey.
Halabi, C. E., & Lussier, R. N. (2014). A model for predicting small firm performance. Journal of Small Business and Enterprise Development, 21 (1), 4-25. http://dx.doi.org/10.1108/JSBED-10-2013-0141.
Hillier, S. (2013). Making the chemical-using industries more sustainable. TCE: The Chemical Engineer, 860 (1), 26-27.
Hornke, M. (2012). Chemical Distribution 2012. [Online], http://www.chemanager-online.com/file/track/11755/1 / (Accessed 20 February 2016).
Hornke, M. (2013). The future of chemical distribution in Europe: Customer relations as key value lever. Journal of Business Chemistry, 9 (2), 65-66.
Jerrentrup, R. (2009). The Effects of the Financial Crisis on the Future of the Chemical Industry. Journal of Business Chemistry, 6 (1), 3-6.
Jung, U., Wolleswinkel, R., Hoffmann, C., & Rothman, A. (2014). Specialty Chemical Distribution-Market Update, Boston Consulting Group. [Online], https://www.bcgperspectives.com/content/articles/process_industries_go_to_market_strategy_specialty_chemical_distribution_market_update/?chapter=2 . (Accessed 17 April 2016).
Kader, R. A., Mohamad, M. R., & Ibrahim, A. A. (2009). Success factors for small rural entrepreneurs under the one- district-one-industry programme in Malaysia. Contemporary Management Research, 5 (2), 147-162. http://dx.doi.org/10.7903/cmr.1173.
Karpak, B., Topcu, I. (2011). Small medium manufacturing enterprises in Turkey: An analytic network process framework for prioritizing factors affecting success. International Journal of Production Economics, 125 (2), 60-70.
Keskin, H. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs. European Journal of Innovation Management, 9 (4), 396-417. http://dx.doi.org/10.1108/14601060610707849.
Keynote (2011). Business ratio Report: Chemical Distributors UK. Richmond upon Thames: Key Note.
Keynote (2013). Business ratio Report: Chemical Distributors UK. Richmond upon Thames: Key Note.
Krasniqi, B. A., Shiroka-Pula, J., & Kutllovci, E. (2008). The determinants of entrepreneurship and small business growth in Kosova: evidence from new and established firms. International Journal of Entrepreneurship and Innovation Management, 8 (3), 320–342. http://dx.doi.org/10.1504/IJEIM.2008.019533.
Krippendorff, K. (2013). Content analysis: an introduction to its methodology. 3rd edition. Thousand Oaks: SAGE Publications.
Kronimuns, A., Roos, A., & Stelter, D. (2009). M&A: Ready for Lift-off? A survey of European companies’ Merger and Acquisition Plans for 2010. Boston consulting Group. [Online], https://www.bcg.com/documents/file36677.pdf (Accessed on 6 March 2015).
Lampadarios, E. (2015). Critical success factors for SMEs: an empirical study in the UK chemical distribution industry. [Doctoral thesis]. Leeds: Leeds Beckett University.
Lampadarios, E. (2016). Critical success factors for SMEs: an empirical study in the UK chemical distribution industry. International Journal of Business and Management, 11 (7), 67-82. http://dx.doi.org/10.5539/ijbm.v11n7p67.
Lampadarios, E., Kyriakidou, N. and Smith, G.J., (n.d.). Towards a new framework for SMEs success: a literature review. International Journal of Business and Globalisation. (In press).
Lee, M. K. O., & Cheung, C. M. K. (2004). Internet Retailing Adoption by Small-to-Medium Sized Enterprises (SMEs): A Multiple-Case Study. Information Systems Frontiers, 6 (4), 385-397. http://dx.doi.org/10.1023/B:ISFI.0000046379.58029.54.
Lin, W. B. (2006). A comparative study on the trends of entrepreneurial behaviors of enterprises in different strategies: Application of the social cognition theory. Expert Systems with Application, 31 (2), 207–220. http://dx.doi.org/10.1016/j.eswa.2005.09.036.
Lussier, R. N., & Halabi C. E. (2010). Three-Country Comparison of the Business Success versus Failure Prediction Model. Journal of Small Business Management, 48 (3), 360–377. http://dx.doi.org/10.1111/j.1540-627X.2010.00298.x.
McLarty, R., Pichanic, M., & Sarapova, J. (2012). Factors Influencing the Performance of Small to Medium-Sized Enterprises: An Empirical Study in the Czech Republic. International Journal of Management, 29 (3), 36-47.
Mortelmans, S., & Reniers, G. (2012). Chemical distribution in Belgium from 2007 to 2010: An empirical study. Journal of Business Chemistry, 9 (2), 105-113.
O'Cass, A., & Weerawardena, J. (2009). Examining the role of international entrepreneurship, innovation and international market performance in SME internationalisation. European Journal of Marketing, 43 (11-12), 1325-1348. http://dx.doi.org/10.1108/03090560910989911.
Ogundele, O. J. (2007). Introduction to Entrepreneurship Development, Corporate Government and Small Business Management, 1st edition. Lagos: Molofin Nominees.
Ojala, A. (2009). Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market. International Business Review, 18 (3), 50-59.
Pistolese, P. (2011). CLP Regulation and REACH Regulation: links, implementation and control in Italy. Annali Dell'istituto Superiore Di Sanita, 47 (2), 157-164.
Plimsoll (2013). Plimsoll Analysis: UK Chemical Wholesalers & Distributors Industry - Individual Company Analysis. Stockton on Tees: Plimsoll Publishing Limited.
Polit, D. F., Beck, C. T. (2012). Nursing research: Principles and methods. Philadelphia: Lippincott, Williams and Wilkins.
Pope, C., Ziebland, S., Mays, N. (2003). Analysing qualitative data, In: Pope, C. and Mays, N. (eds). Qualitative Research in Health Care. 3rd edition. Oxford: Blackwell, 63-81.
Powers, B., Knapp, T. (2006). Dictionary of Nursing Theory and Research. 3rd edition. New York: Springer.
Revell, A., & Rutherfoord, R. (2003). UK environmental policy and the small firm: Broadening the focus. Business Strategy and the Environment, 12 (2), 26–35. http://dx.doi.org/10.1002/bse.347.
Rogoff, E. G., Lee, M. S. and Suh, D. C. (2004). “Who Done It?” Attributions by Entrepreneurs and Experts of the Factors that Cause and Impede Small Business Success. Journal of Small Business Management, 42 (4), 364–376. http://dx.doi.org/10.1111/j.1540-627X.2004.00117.x.
Ropega, J. (2011). The Reasons and Symptoms of Failure in SMEs. International Advanced Economic Research,. 17 (4), 476-483. http://dx.doi.org/10.1007/s11294-011-9316-1.
Schreier, M. (2012). Qualitative content analysis in practice. Thousand Oaks: Sage Publications.
Simpson, M., Padmore, J., & Newman, N. (2012). Towards a new model of success and performance in SMEs. International Journal of Entrepreneurial Behaviour and Research, 18 (3), 264-285. http://dx.doi.org/10.1108/13552551211227675.
Smallbone, D., & Wyer, P. (2000). Growth and development in the small firm. In: S. Carter, & D. James-Evans (Eds.). Enterprise and Small Business. Harlow: Prentice Hall.
Smallbone, D., Welter, F., Voytovich, A., & Egorov, I. (2010). Government and entrepreneurship in transition economies: the case of small firms in business services in Ukraine. Service Industries Journal, 30 (5), 655-670. http://dx.doi.org/10.1080/02642060802253876.
Unger, J.M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26 (3), 341-358. http://dx.doi.org/10.1016/j.jbusvent.2009.09.004.
Vaismoradi, M., Turunen, H., Bondas, T. (2013). Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study. Nursing and Health Science, 15 (3), 398- 405.
Wetherly, P. and Otter, D. (2014). The business environment: themes and issues in a globalizing world. 3rd edition, Oxford: Oxford University Press.
Wilson, C. D. H., Williams, I. D., & Kemp, S. (2012). An evaluation of the impact and effectiveness of environmental legislation in small and medium‐sized enterprises: Experiences from the UK. Business Strategy and the Environment, 21 (3), 141-156. http://dx.doi.org/10.1002/bse.720.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
