Ethnic diversity in SME business teams: generating employment growth through digitalisation, innovation, and exporting

Julia Korosteleva, Tomasz Mickiewicz, Mario Davide Parrilli

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines how the ethnic composition of SMEs’ business teams, also in conjunction with their strategic behaviour (including digitalisation, innovation and exporting), affect their employment growth. The study conceptualises different forms and aspects of social capital to develop the theoretical framework and hypotheses. We utilise the UK Office for National Statistics’ Longitudinal Small Business Survey data for the period of 2018–2020 to test our hypotheses. Our study shows that ethnically diverse business teams achieve relatively higher employment growth as compared to more homogeneous teams. Moreover, ethnically diverse business teams that embrace innovation, international expansion, and digitalisation translate these strategies more effectively into increased employment compared to their more homogenous counterparts.
Original languageEnglish
Number of pages24
JournalSmall Business Economics
Early online date14 Dec 2024
DOIs
Publication statusE-pub ahead of print - 14 Dec 2024

Bibliographical note

This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated
otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/.

Data Access Statement

The data used to produce this work is sourced from the Office for National Statistics (ONS), UK, and is not publicly accessible.

Keywords

  • SMEs growth
  • Ethnic diversity
  • Social capital
  • Digitalisation
  • Exporting
  • Innovation

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