SMEs growth : an evaluation of selected Maltese entities in the printing industry

Abstract

Purpose: The purpose of this study is to understand the process of growth within firms in the printing industry in Malta, while assessing similarities and differences that may justify firm-size variances. Moreover, it challenges the popular belief that businesses must grow or ultimately vanish. Design: Secondary data sourced primarily from foreign literature was used to build the research instrument adopted for primary data collection. Twelve semi-structured interviews were held with owners or key persons of Maltese printing firms. Findings: This study found that businesses look at various indicators for growth but none of the firms interviewed consider increase in employees alone to signify growth. Findings suggest that growth is not a linear process but that growth, saturation and decline seem to be able to occur more than once. The strongest determinants of firm growth have emerged to be Internal Resources, Entrepreneurial Characteristics and the Environment; however, strategic planning and structured training have also proved to influence growth positively. Conclusion: This study concludes that some growth strategies are better suited to the internal resources and the competitive environment than others. It is suggested that, rather than pursuing sustainable growth, firms should first seek to be innovative and build a sustainable competitive advantage. The starting point should be a move from a business attitude to replicate to one that innovates while taking advantage of changes in the environment. In addition, SMEs incentives should be made more accessible to micro and small firms by perhaps tailoring these to the different firm categories, since the smaller firms are often discouraged in applying for such schemes. Value: It is hoped that this study provides further insight on the multi-dimensional and complex phenomenon that is firm growth, particularly within the Maltese scenario.