Problem solving in small firms: an interpretive study

Purpose – The purpose of this research is to present the results of a recent interpretive study of 11 small Central Vancouver Island firms in British Columbia, Canada, which yield new interpretations of the nature of problem‐solving processes within the wider context of managerial capability as a critical contributor to small business survival. Design/methodology/approach – The methodological approach taken is positioned within an emergent body of research in the field of small business and entrepreneurship that applies an interpretive paradigm to uncover the complex facets of how individuals develop their capabilities and management practices with a particular emphasis on the small business owner‐manager. More specifically, the critical incident technique method, along with an approach to data analysis and coding that draws from grounded theory, is combined and applied as a qualitative research strategy to yield new understandings of problem solving in small firms. Findings – Research findings reveal the intuitive, improvised and non‐linear nature of how problems are actually solved in the sample of small firms studied, in contrast with a number of well‐known theoretical research frameworks that propose well‐defined and delineated steps in the problem‐solving process. Research limitations/implications – The small sample size and the methods chosen to conduct the research do not allow for the generalization of findings to all firms, yet do allow for the emergence of themes among the businesses that participated in the study. Research could be expanded by applying a similar research design to small firms in other regions of Canada to determine whether significant differences or similarities exist and to identify the implications for research in the area of problem solving in small firms. Originality/value – The identification of problems as critical incidents represents a primary focus of the research and provides a more explanatory account of problem solving from the perspective of small firm owner‐managers involved in the process. The analysis of these highly subjective interpretations represents valuable research findings that provide a basis for the development of theory on problem solving in small firms.