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

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.

Publication DOI: https://doi.org/10.1007/s11187-024-00985-1
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
College of Business and Social Sciences > Aston Business School
Aston University (General)
Additional Information: 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/.
Uncontrolled Keywords: SMEs growth,Ethnic diversity,Social capital,Digitalisation,Exporting,Innovation,Economics, Econometrics and Finance(all),Business, Management and Accounting(all)
Publication ISSN: 1573-0913
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.
Last Modified: 26 Mar 2025 08:13
Date Deposited: 06 Jan 2025 13:14
Full Text Link:
Related URLs: https://link.sp ... 187-024-00985-1 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2024-12-14
Published Online Date: 2024-12-14
Accepted Date: 2024-11-08
Authors: Korosteleva, Julia
Mickiewicz, Tomasz (ORCID Profile 0000-0001-5261-5662)
Parrilli, Mario Davide

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