Birmingham City University has had a profound impact on SME growth. Key to this has been its PSP diagnostic, which has made a substantial impact on West Midlands and international organizations.
Research summary
Birmingham City University’s Business School’s Centre for Enterprise, Innovation and Growth (CEIG) has had a world-leading impact on the growth of a series of national and international SMEs. Key to this has been its PSP diagnostic, which has been the basis for 630 practical SME interventions on a local and national level.
Working with national and local governments, and NGOs, PSP has provided direct support to firms, through workshops, one-to-one interventions, and a diagnostic report. It has been used in four funded West Midlands projects, and one of those alone is estimated to have created £2.5M GVA and 118 jobs in the regional economy.
Research background
Researchers in the Business School’s Centre for Enterprise, Innovation and Growth (CEIG) have built and extended a set of tools with the specific objective of connecting business research and practice.
The primary success has been the development and application of the PSP diagnostic. Its three innovative contributions include:
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it incorporates a model of SME growth which examines firm objectives;
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it models SME context and environment in the growth model;
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the diagnostic provides metrics which guide the SME in their strategic decision-making, while providing the researchers with data to enhance the dataset.
The PSP is a longitudinal project in collaboration with international partners. The research team has developed a framework that supports firms in understanding their business context, which is then used to assess their performance in a variety of country-settings.
CEIG also incorporated into the PSP diagnostic internal factors such as Human Resource Management practices and use of high-performance work systems, which shape firms’ growth trajectory, and it seeks to address the gap between research and business practice and help develop university “triple helix” offers (i.e., the set of interactions between academia, industry and government). CEIG identified that’ academia-business interactions can be inefficient, so the research team developed an enhanced diagnostic method through which the data collection process provides a real-time analysis.
Research outputs underpinning this research are published in journals which are“internationally recognised” by the Chartered Association of Business Schools
Impacts and outcomes
Research has had a substantial impact in the West Midlands, with the PSP model being applied in several international organisations.
CEIG have engaged with 339 SMEs to develop new processes and systems which improve efficiency and introduce new products and services as part of The Innovation Vouchers programme. The SME’s report impacts of improved management of innovation and improvements to the quality of products or services. The Innovation Vouchers programme is estimated to have a £2.5M contribution to GVA, with 118 jobs created as a result, up to December 2020.
152 SMEs have been supported through the ERBDF Enterprise for Success programme. The programme enhances the leadership capabilities and marketing skills of local SMEs through providing them with business intelligence to inform decision-making. Positive feedback has been received from participating Managing Directors and Government Ministers.
139 SMEs from Birmingham accessed the Growing You programme and benefitted from the data and insight provided by the PSP diagnostic. Upon completion of the programme, each business was assigned a personal mentor by BCU, to guide and advise along the way, thus making it a truly sustainable initiative