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• W1567403821 abstract "ABSTRACT A great deal of attention is being given to problems in organizations and their efforts toward compliance. Most of the attention has been upon larger firms. This paper seeks to provide a framework under which both large and smaller entrepreneurial firms can assess their readiness. Industrial Organization theory suggests that the firm's profitability and growth prospects depend upon the external environment confronting the firm and the firm's actions and reactions to these factors. Research on the external environment of small firms has focused on economic, socio-cultural, demographic, and technological elements in small firms. However, issues have not been given extensive consideration. Clearly, issues can present substantial threats or opportunities to the firm. Surprisingly, in spite of recent recognition that issues can be particularly important to both large and small firms, the literature does not present a clear perspective of the factors that may be significant specifically to small business owners. We propose a framework for evaluating the potential impact of issues on a small firm. This discussion serves as the basis for a broader discussion of how political and elements may impact the small firm. INTRODUCTION Business and society in general, is placing a great deal of emphasis upon both compliance and problems in organizations. While large organizations may have a sophisticated approach to compliance, or legal readiness, many smaller and entrepreneurial organizations generally are less prepared in this arena. The influence of the external environment on a firm's actions can be conceptualized using the Industrial Organization theory of the firm (Hoskisson, et. al., 1999). This conceptualization argues that an organization's profitability and growth prospects depend upon the environmental factors it faces (Schendel, 1994 ). Business executives are urged to scan the environment in an effort to identify opportunities and threats that may affect their companies as part of their efforts to plan for the future and to position their organizations to compete (Elenkov, 1997; GoIl & Rasheed, 1997). Students of strategic management are taught the benefits of scanning the external business environment in order to identify trends in society (for example, see Thompson and Strickland, 2001; Hitt, et. al., 2001; David, 2000). These factors or elements of the external environment are commonly grouped into the Economic, Socio-Cultural, Demographic, Global, Technological, and Political-Legal elements (Hitt, et. al. 2001). The extant research on small firms and entrepreneurs has argued that small business owners and entrepreneurs also must be thoroughly aware of their external environment (for example, see Johnson and Kuehne, 1987, Smeltzer, Fann & Nikolaisen, 1988; Specht, 1987; Robinson, et. al. 1998). Generally, most research on the external environment of small firms has focused on economic, socio-cultural, demographic, and technological elements where small firms are concerned. However, issues have not been given extensive consideration (Robinson, Jackson, Franklin & Hensley, 1998). Clearly, issues can present substantial threats or opportunities to the firm. We define issues as including any laws or regulations enacted by federal, state, or local government as well as typical and compliance practices of business owners. Most of the literature concerning threats and opportunities has been studied from the perspective of the large firms that dominate the U.S. economy. (For example, see studies by Hambrick, 1981 or Daft, Sormunen, and Parks, 1984.) Studies that identify issues impacting big business are not necessarily relevant to the concerns and issues facing the small business owner. We still do not have a clear understanding of the identity of factors that may be significant to small business owners. …" @default.
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• W1567403821 title "A Framework for Assessing the Need for Legal Readiness in Small and Entrepreneurial Firms" @default.
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