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Relationship building in small firms: The development of a model

Institute for Entrepreneurship, The University of Southampton, UK, e.chell{at}soton.ac.uk

Paul Tracey

Judge Institute of Management, Cambridge University, p.tracey{at}jims.cam.ac.uk

This article investigates relationships between Owner Managers and First Line Managers (supervisors) in small firms. A model comprising four components - competency, role, style and vision - was developed to consider the operating reality of this dyad, and its robustness considered using an embedded case study design (n= 15). The analysis relied upon ‘pattern matching’ in which a set of a priori propositions were examined, and (a) the predicted outcome (based on the model) compared with (b) the observed outcome (based on respondents’ assessment of the relationship). Two types of factor were identified: style and vision were found to be contingent, varying according to the dynamic of the relationship and expectations of those involved, while competency and role were deemed to be core elements without which effective interrelating is unlikely. Finally, the model was revised to include a fifth dimension - an emotional bond comprising trust/mutual respect - which appeared to be a crucial feature of effective relationships.

Key Words: First Line Manager • interpersonal effectiveness • leadership • Owner Manager • relationship building • small firms

Human Relations, Vol. 58, No. 5, 577-616 (2005)
DOI: 10.1177/0018726705055964


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