Pilot Study Report

The questionnaire was designed to answer both of the research questions

at the collective level for each resource (financial, human, information and

knowledge and training and education). To answer the first question, which

was to explore the role of entrepreneurs’ social networks at the collective

level in enabling resource access, three variables were needed on each

level and for each resource. First, resource access was measured by asking

entrepreneurs whether they had accessed each resource via a private or

government institution. Second, network size was measured by asking

entrepreneurs about the number of institutions in private and government

sector that can help them gain access to each resource. Third, network

density was measured by asking the entrepreneurs about the frequency of

communications with ‘weak ties’, to access each resource. This was

measured on a scale of 0-4.

To answer the second question, which was to explore the relationship

between resource access along with other factors (entrepreneurs’

characteristics, firms’ characteristics and other environmental factors) and

SME growth, five variables needed to be measured. First, resource access

characteristics were measured based on four items on a scale (1-3),

including self-confidence, the need for achievement, risk-taking and

education level. Third, a firm’s characteristics were measured based on six

items on a scale (1-3) as well, including the marketing strategy, training,

competition, R&D, technology adoption and firm age. Fourth, other

environmental factors, including cultural, political, economic and

technological factors, were also measured on a scale (1-3). Finally, SME

growth was measured by the percentage change in the employment level

and annual revenue level. The pilot questionnaire was sent to 40

entrepreneurs via email and had 25 respondents. No missing data were

found for any questions, and some feedback was received from

entrepreneurs and academic researchers at the same time. In general, their

feedback was on the following points:

1. Change some question wording, to make it clearer

2. Adding a Likert scale to some questions, to increase reliability

3. Change some open questions to multiple choice

4. Add further choices to some questions

5. Delete irrelevant questions

6. Change the order of some questions

Accordingly, several changes were made to the survey design based on the

results and feedback, to increase the validity and reliability of the survey and

measurements. These changes included changing the wording on network

respondents. Second, we added a scale of 1-5 to answer questions on

entrepreneurs’ characteristics, firm characteristics and environmental

factors. Third, we added items to measure entrepreneurs’ characteristics

such as education and experience, innovativeness and locus of control.

Table 5-4 summaries the pilot test, along with all variables and how to

measure each one in the survey. Reliability and validity changes are

Table 5-2 Summary of the Pilot Test

The variable How to measure it in the questionnaire Reliability and validity Changes

Network Size (collective level)

How many institutions in the private and government sectors give you access to the following resources? The total number of these contacts represents the network size on the collective level.

Based on the feedback suggestions, it is better to clarify the question.

Change in the question wording.

Network density

(collective level) On a scale of 1-5, how frequently do you contact your family and friends to access the following resources, where 1=never, 2=rarely, 3=sometimes, 4=mostly and 5 always? Then

divide the frequency by the number of resources (4) to calculate the average.

Reliability test on SPSS shows that the

measurement is reliable, as the

Cronbach’s Alpha value was more than .7.

No change.

Resource access (collective level)

Have you accessed any of the following resources via institutions in the private and government sector, yes=1 and no=0? The total represents resource access.

Entrepreneurs’ characteristics

Ask entrepreneurs to scale themselves on the following items (1-3), where 1 is low and 3 is high (need for achievements, self-confidence and risk-taking).

Add experience,

innovativeness and locus of control. Scale (1-5). Firm’s

Characteristics Ask entrepreneurs: what is the importance of the following items regarding the time and money spent (marketing, training and development, competition, R&D, adopting new

technology) on a scale of 1-3, where 1 is not important and 3 is important?

Change the scale (1-5) for better explanations. Other

Environmental factors

Ask entrepreneurs: how would you describe the influence of the following factors (political, economic, regulations, local culture and technology), (negative, no influence, and positive)?

The reliability test shows that this measurement was not reliable.

Add Score (1-5) to increase reliability of the

measurement.

SME growth Ask entrepreneurs: what was the level of employment when you started the business and

what is the level now? Then calculate the growth average. These levels are based on the SME definition.

The reliability test shows that

measurements were reliable.

No change. Another measurement: what was the level of annual revenues in your business when you

5.7 Conclusion

This chapter addressed the ontological, epistemological and methodological

issues that govern this research, to address the following questions:

1. What is the role of entrepreneurs’ social networks at the collective level in enabling resource access?

2. What is the role of resource access, along with other factors, in SME growth?

A positivist approach was adopted in this research, assuming knowledge is

developed through meticulous observation as well as measurements of existent

objective reality. Thus, it involves statistical and numerical measurements that

are in turn used to verify, test or refine theories linked logically to precise

measurements of the social world. Therefore, this research conducted a survey

method to collect data and apply statistical measurement to analyse the data.

This chapter started by reviewing the debates in SME research and social

science regarding the philosophical stances and approaches adopted by

researchers. Thereafter, it explored how a positivist stance cold help in

answering the research questions, following which it explained in more detail

the data collection plan, namely the survey method, by explaining its design

and how data would be analysed. The survey method was the most appropriate

understand two matters: first, analysing the role of social network at the

collective level in enabling resource access, and second, analysing the

relationship between resource access, along with other factors, and SME

growth. Accordingly, this research will address these matters based on the

theoretical and empirical framework explained in the third chapter. Finally, this

chapter explained how this research meets the ethics, reliability and validity of