1997International Small Business Journal Researching EntrepreneurshipRequires access

Small Firms' Training and Competitiveness. Building Upon the Small business as a Learning Organisation

Allan Gibb

Open publisher page 641 citations

Abstract

PROFESSOR ALLAN GIBB IS CHAIRMAN OF the Small Business Centre at Durham University Business School, England. This paper begins with a review of the present concerns to link training with competitiveness in the United Kingdom and Europe. It notes that many of the issues raised in this respect are over 20 years old. It suggests therefore a new way to approach the problems, namely by considering the learning needs that will reduce the transaction costs of the small firm operating its stakeholder environment. After defining the concept of learning it makes the distinction between contextual learning (via experience) and the associated tacit (subjective) knowledge that is gained by this, and objective and abstract knowledge frequently purveyed by teachers. It then explores the issue of the SME as a 'learning company' and argues that the key to its learning is via the transactional and other relationship that it has with its immediate network environment. The concept of learning circles and learning partnerships is introduced as a basis for exploring in some detail the issue of 'who' needs to learn. It is argued that the learning needs of those who effectively dictate the level of the playing field for achieving small business success are very high. The nature and importance of this learning need is then explored for key groups. It is argued that the benefits to society of this holistic approach to learning is a reduction in the 'discontinuities' between the SME and its environment and therefore a lowering of transaction costs.

About this research paper

What this paper is about

PROFESSOR ALLAN GIBB IS CHAIRMAN OF the Small Business Centre at Durham University Business School, England. This paper begins with a review of the present concerns to link training with competitiveness in the United Kingdom and Europe. It notes that many of the issues raised in this respect are over 20 years old. It suggests therefore a new way to approach the problems, namely by considering the learning needs that will reduce the transaction costs of the small firm operating its stakeholder environment. After defining the concept of learning it makes the distinction between contextual learning (via experience) and the associated tacit (subjective) knowledge that is gained by this, and objective and abstract knowledge frequently purveyed by teachers. It then explores the issue of the SME as a 'learning company' and argues that the key to its learning is via the transactional and other relationship that it has with its immediate network environment. The concept of learning circles and learning partnerships is introduced as a basis for exploring in some detail the issue of 'who' needs to learn. It is argued that the learning needs of those who effectively dictate the level of the playing field for achieving small business success are very high. The nature and importance of this learning need is then explored for key groups. It is argued that the benefits to society of this holistic approach to learning is a reduction in the 'discontinuities' between the SME and its environment and therefore a lowering of transaction costs.

Why it matters

OpenAlex reports 641 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

PROFESSOR ALLAN GIBB IS CHAIRMAN OF the Small Business Centre at Durham University Business School, England. This paper begins with a review of the present concerns to link training with competitiveness in the United Kingdom and Europe. It notes that many of the issues raised in this respect are over 20 years old. It suggests therefore a new way to approach the problems, namely by considering the learning needs that will reduce the transaction costs of the small firm operating its stakeholder environment. After defining the concept of learning it makes the distinction between contextual learning (via experience) and the associated tacit (subjective) knowledge that is gained by this, and objective and abstract knowledge frequently purveyed by teachers. It then explores the issue of the SME as a 'learning company' and argues that the key to its learning is via the transactional and other relationship that it has with its immediate network environment. The concept of learning circles and learning partnerships is introduced as a basis for exploring in some detail the issue of 'who' needs to learn. It is argued that the learning needs of those who effectively dictate the level of the playing field for achieving small business success are very high. The nature and importance of this learning need is then explored for key groups. It is argued that the benefits to society of this holistic approach to learning is a reduction in the 'discontinuities' between the SME and its environment and therefore a lowering of transaction costs.

Key concepts: Tacit knowledge, Database transaction, Knowledge management, Transaction cost, Stakeholder, Business, Marketing, Sociology

Related papers

Back to paper searchBrowse research topicsOriginal source
Small Firms' Training and Competitiveness. Building Upon the Small business as a Learning Organisation — Research Paper | ScholarLens