The results of the study

This chapter introduces the conclusions on the basis of the results of the study.

First the objectives of the study are recapitulated and compared with the results to argue for the research contribution. The results are introduced according to the research questions. After that the validity and reliability issues are discussed. In this connection the generalisation of the results is also discussed. Finally the problems and limitations of the research are pointed out, as well as outlines for future research.

8.1 The results of the study

The research questions of this study were:

How to measure or assess the impact of the business development project on the performance in SMEs?

How have the business development projects implemented in SMEs affected their performance?

Which are the success dimensions and key factors of the business development projects in terms of project success?

These questions are discussed in this chapter introducing the results based on the case study. The results of the pilot case study are in line with them.

How to measure or assess the impact of the business development project on performance in SMEs?

Based on the case evidence, the impact of the project on the performing company can be assessed on the basis of changes of performance using three different types of indicators: perceptual, perceptual and objective. Perceptual and quasi-perceptual measurement is based on subjective assessments, forming a view of perceptual performance. Objective measurement is based on financial information, forming a view of objective performance. In this study the objective performance gave support to the validity of the perceptual performance. A natural question is, how to be certain that changes of performance are created by the business development project. The performance data was gathered from two different sources; directly from the case companies and from external, independent sources.

This case study utilised a multi-informant system, and unanimity was a criterion used. The general view of the performance changes fitted the nature of the implemented business development project. This study gives support to the view that the impact of the project on the performance can be found out with the changes of performance assessed by the persons involved in the project who know the business, practices and processes of the company, and when both the perceptual and quasi-perceptual measures are used together with the multi-informant system.

The impact of the business development project on performance was divided to four categories of project success: project efficiency, impact on customer, business success and future potentiality. Based on the case evidence, these four categories gave an adequate setting to find out the impact of the business development project on performance in the SME-context within different time perspectives, and used with both successful and unsuccessful projects. The indicators inside the success categories varied depending on the project and the measuring practices of the company. Based on the case study some, common indicators were found applicable for assessing or measuring performance in most cases. The project efficiency was able to measure or assess by using the traditional indicators: time, cost and quality. The operating profit ratio and the sales growth were used to measure the business success. The learning over time was a usable indicator of the future potentiality –category. The rest of the indicators varied depending on the case. The list of indicators introduced in this study is a basis that should be

complemented, depending on the features of the individual project and individual company.

How have the business development projects implemented in SMEs affected their performance?

Based on the case evidence, the internal business development projects affected the performance of the company widely also in areas and functions not initially targeted. The implications cover all the success categories: project efficiency, impact on customer, business success and future potentiality. With the successful cases, the success tended to spread out to areas and functions not mentioned as project goals, and with the unsuccessful cases the failure seemed to spread out widely to the company’s functions. Despite the success rate of the project, learning was perceived to have affected the performance of the companies positively by generating new knowledge, skills and practices that can be utilised in the future.

The business development project that was external by nature, had a limited effect on the business success of the company, being restricted to profitability (book entry of the loss).

Which are the success dimensions and key factors of business development projects in terms of project success?

The case evidence strengthens the view that business development project success in the SME-context has five success dimensions: entrepreneurial, project preparation, change management, project management and project success. Good performance in one success dimension seemed to affect the others. The good performance in entrepreneurial and project preparation success seemed to give a firm basis for a successful business development project. Good performance in change management and project management seemed to ensure successful planning and implementation of the project. The project success indicated performance improvements and benefits for the enterprise and its customers in different time frames.

This case evidence suggests that successful business development projects have balanced, high performance concerning all the dimensions. Good performance in one dimension was not enough for project success, but it gave a good basis for the other dimensions. The other way round, poor performance in one success

dimension affected the others, leading to poor performance of the project. The success of the business development project seems to be dependent on several interrelated dimensions and factors. Success in one area led to success in other areas, and so created an upward success spiral. Failure in one area led to failure in other areas, creating a downward failure spiral.

Inside these success dimensions, six individual factors were found to be key factors for successful project implementation: strength of intention, business ability, knowledge, participation, motivation and training. Vice versa, most of these factors were also found to be failure factors. Unstable strength of intention, business inability, lack of knowledge and missing motivation were found to be key factors escalating into project failure.

The framework developed in this study provided a systematic way for analysing the business development projects and their impact on performance and the performing company. As a summary, Figure 8.1 illustrates the refined framework.

Detector

Figure 8.1 Framework of business development project success in SMEs