The Ordinariness and Denaturation of Small Business:Conceptual Framework and Empirical Evidence from the European Union
Purpose: The paper aims to constitute and operationalize the conceptual (theoretical) framework of the ordinariness and denaturation of small businesses, as well as empirically verify the nature, extent, and consequences of this phenomenon for small business competitiveness and performance. Design/Methodology/Approach: Based on the literature review, four research gaps have been identified, and four research hypotheses have been stated. In order to achieve the aim of the study, survey research was conducted on a random sample of 1741 SMEs from 22 European Union countries. Findings: As part of the study framework, conceptualization, operationalization, and empirical verification of small business denaturation were done. It is found that ordinary and denatured SMEs differ significantly in the areas of management, structure, specialization, autonomy, and scope of market operations. Practical Implications: Entrepreneurs should seek specific configurations of the denatured features to develop key determinants of market competitiveness and improve business performance. Originality/Value: The results significantly extend previous studies on SME denaturation and provide new insights into small business professionalization, competitiveness and performance management.