Abstract

In micro-firms the manager must be both the chief decision-maker and a specialist in many, if not all, areas of the business. This wide range of responsibilities can reduce the opportunities to maintain knowledge of regulatory matters, thereby risking misguided attempts at regulatory compliance, and hence potentially ruinous unnecessary costs and/or prosecution for breaking the law. It is therefore essential that managers are aware of deficiencies in their knowledge, so they can seek improvement, and avoid over-confidence – hubris – in their knowledge levels. Using newly collected survey data from micro-firms in the English accommodation sector, we present an analysis of the level of regulatory knowledge that micro-firm managers think they possess, and what they actually possess, over four core areas of regulation. Using multivariate techniques both Perceived-Knowledge (from self-assessment) and Actual-Knowledge (from a simple test) of regulation are found to be different and generally poor. Additionally, attitude is found to influence both forms of knowledge, while multiple trade-association memberships are also found to enhance Perceived-, but not Actual-Knowledge. We suggest several methods to improve both knowledge and self-assessment skills through a co-ordinated cross trade-association campaign, as the lack of alternatives means they remain best suited to deal with micro-firm managers.
LanguageEnglish
JournalBritish Journal of Management
Early online date28 Jun 2018
DOIs
StatusE-pub ahead of print - 28 Jun 2018

Fingerprint

Managers
Hubris
Trade associations
Micro firms
Costs
Industry
Self-assessment

Keywords

  • Micro-firms
  • Regulation
  • Perceived-Knowledge
  • Actual-Knowledge
  • Trade-Associations
  • Self-Assessment

Cite this

@article{9d62803787f841ce945523323fdc15b1,
title = "Managerial Hubris, Trade-Associations, and Regulatory Knowledge in Micro-Firms",
abstract = "In micro-firms the manager must be both the chief decision-maker and a specialist in many, if not all, areas of the business. This wide range of responsibilities can reduce the opportunities to maintain knowledge of regulatory matters, thereby risking misguided attempts at regulatory compliance, and hence potentially ruinous unnecessary costs and/or prosecution for breaking the law. It is therefore essential that managers are aware of deficiencies in their knowledge, so they can seek improvement, and avoid over-confidence – hubris – in their knowledge levels. Using newly collected survey data from micro-firms in the English accommodation sector, we present an analysis of the level of regulatory knowledge that micro-firm managers think they possess, and what they actually possess, over four core areas of regulation. Using multivariate techniques both Perceived-Knowledge (from self-assessment) and Actual-Knowledge (from a simple test) of regulation are found to be different and generally poor. Additionally, attitude is found to influence both forms of knowledge, while multiple trade-association memberships are also found to enhance Perceived-, but not Actual-Knowledge. We suggest several methods to improve both knowledge and self-assessment skills through a co-ordinated cross trade-association campaign, as the lack of alternatives means they remain best suited to deal with micro-firm managers.",
keywords = "Micro-firms, Regulation, Perceived-Knowledge, Actual-Knowledge, Trade-Associations, Self-Assessment",
author = "Betton, {Marc E.} and Branston, {J. Robert} and Tomlinson, {Philip R.}",
year = "2018",
month = "6",
day = "28",
doi = "10.1111/1467-8551.12314",
language = "English",
journal = "British Journal of Management",
issn = "1045-3172",
publisher = "Wiley-Blackwell",

}

TY - JOUR

T1 - Managerial Hubris, Trade-Associations, and Regulatory Knowledge in Micro-Firms

AU - Betton, Marc E.

AU - Branston, J. Robert

AU - Tomlinson, Philip R.

PY - 2018/6/28

Y1 - 2018/6/28

N2 - In micro-firms the manager must be both the chief decision-maker and a specialist in many, if not all, areas of the business. This wide range of responsibilities can reduce the opportunities to maintain knowledge of regulatory matters, thereby risking misguided attempts at regulatory compliance, and hence potentially ruinous unnecessary costs and/or prosecution for breaking the law. It is therefore essential that managers are aware of deficiencies in their knowledge, so they can seek improvement, and avoid over-confidence – hubris – in their knowledge levels. Using newly collected survey data from micro-firms in the English accommodation sector, we present an analysis of the level of regulatory knowledge that micro-firm managers think they possess, and what they actually possess, over four core areas of regulation. Using multivariate techniques both Perceived-Knowledge (from self-assessment) and Actual-Knowledge (from a simple test) of regulation are found to be different and generally poor. Additionally, attitude is found to influence both forms of knowledge, while multiple trade-association memberships are also found to enhance Perceived-, but not Actual-Knowledge. We suggest several methods to improve both knowledge and self-assessment skills through a co-ordinated cross trade-association campaign, as the lack of alternatives means they remain best suited to deal with micro-firm managers.

AB - In micro-firms the manager must be both the chief decision-maker and a specialist in many, if not all, areas of the business. This wide range of responsibilities can reduce the opportunities to maintain knowledge of regulatory matters, thereby risking misguided attempts at regulatory compliance, and hence potentially ruinous unnecessary costs and/or prosecution for breaking the law. It is therefore essential that managers are aware of deficiencies in their knowledge, so they can seek improvement, and avoid over-confidence – hubris – in their knowledge levels. Using newly collected survey data from micro-firms in the English accommodation sector, we present an analysis of the level of regulatory knowledge that micro-firm managers think they possess, and what they actually possess, over four core areas of regulation. Using multivariate techniques both Perceived-Knowledge (from self-assessment) and Actual-Knowledge (from a simple test) of regulation are found to be different and generally poor. Additionally, attitude is found to influence both forms of knowledge, while multiple trade-association memberships are also found to enhance Perceived-, but not Actual-Knowledge. We suggest several methods to improve both knowledge and self-assessment skills through a co-ordinated cross trade-association campaign, as the lack of alternatives means they remain best suited to deal with micro-firm managers.

KW - Micro-firms

KW - Regulation

KW - Perceived-Knowledge

KW - Actual-Knowledge

KW - Trade-Associations

KW - Self-Assessment

U2 - 10.1111/1467-8551.12314

DO - 10.1111/1467-8551.12314

M3 - Article

JO - British Journal of Management

T2 - British Journal of Management

JF - British Journal of Management

SN - 1045-3172

ER -