ENVIRONMENTAL SCANNING PRACTICES AND RATES OF GROWTH OF AUSTRALIAN MANUFACTURING SMEs

This paper empirically examines some environmental scanning practices of high, medium and low growth Australian manufacturing SMEs. Building on McMahon’s (2001) work, the study applies scanning related variables from Australia’s Business Longitudinal Survey to the three growth paths identified. The study finds significant differences between the scanning practices of SMEs from each of the growth paths, although not always in the direction predicted. However, upon closer examination, the findings appear to provide empirical support for much of the literature on the evolution of scanning practices in SMEs. Beyond supporting existing material, an important finding is that the evolution of scanning practices appear to be related to the level of managerial development the firm has achieved rather than simply the external environment as portrayed in much of the literature. Finally, implications for small business owners and areas for further research are provided.