Can shared value and entrepreneurship contribute to SME development within rural locations?

• Published date: 01 March 2019
• Author: Kevin Blanchard,David Gray
• Date: 01 March 2019
• DOI: http://doi.org/10.1002/jsc.2256

RESEARCH ARTICLES

Can shared value and entrepreneurship contribute to SME

development within rural locations?

Kevin Blanchard | David Gray

University of Lincoln, United Kingdom

Correspondence

David Gray, Lincoln Business School, The

University of Lincoln, Brayford Pool, Lincoln

LN6 7TS, United Kingdom.

Email: dgray@lincoln.ac.uk

Abstract

The study tests the view that shared value indices are or similar to that of entrepreneurial

awareness, both in their tacit and strategic decision-making abilities. A survey of 23 rural and

remote rural businesses was carried in order to examine how and why they made specific judg-

ments within their daily and longer-term business decision making. The literature indicates that

both concepts do have similar traits/characteristically, and also that the two areas may be both

mutually similar and have synergies founded within their desired outcomes and centered on the

business community. The concept of shared value as a mechanism for profit generating is

accepted, but this is tempered with the ability to bring together visions of a shared nature within

both customer base and business. In such circumstances the synergistic effect of such strategies

becomes blurred and transcends into other business disciplines, which may have very similar

outcomes. The survey found that both areas of test shared a high level of similarity, but geo-

graphical location had no effect on the level of application.

1|INTRODUCTION

Over recent years the term “shared value”has metamorphisized into

an all-encompassing ideal; a vision which tries to bring together a vari-

ety of meanings under the umbrellas of social, business, and profit-

related goals. The rationale for this transformation has come about in

order that business can be seen to move their synergies from their

current state of profit and sales at any cost to a seemingly more favor-

able outcome, whereby both business and the end user mutually ben-

efit. As a direct result of these changes, the momentum has gained

pace with a number of major U.S. and German businesses becoming

polarized on controversial areas of marketing and advertising, and

instead choosing very carefully who to place their campaigns with,

and who conducts and manages them. A number of them, including

JPMorgan, Coca-Cola, and Mercedes have all chosen to pull their

campaigns, from TV companies and internet providers who are associ-

ated with certain “hot topics.”A survey which attained 10,000 replies

conducted by Richard Edelman of PR and communications firm, Edel-

man, stated that 57% of global consumers buy or boycott products

because of a stance on political or social issues. Such moves adopted

by the public are driving businesses to rethink their strategies on how

to engage more positively with their customer base. They are also

concerned on how they are perceived by the public in general, all of

which are potential customers for their goods and services. Harm can

be done to a business through some inadvertent and unintended asso-

ciation, or act of cross pollination; as a result of which, it seems busi-

nesses are now willing to be persuaded by their consumers to change

direction and cut ties and break the association, if such a case is

detected. Businesses are now trying to make gains from the publicity

of such cases, and actively stating their stance with such associations.

It can be said that shopper’s values do carry weight; 30% of Edelman's

survey sample stated that they buy or boycott based on values, which

is an increase from 3 years ago (Bond, 2017). It is from this change of

perspective and direction by major corporations, incorporated with a

recognition that they need to listen and remove the air of arrogance

of the past, and recognize that consumers are now a major driving

force behind decision making of all sizes of businesses; from here it is

a short step to the concept of creating shared value (CSV).

Porter and Kramer (2006) formed the term “shared value,”later

defining the term as a vehicle to carry “policies and operating prac-

tices that enhance the competiveness of a company, while simulta-

neously advancing the economic and social conditions in the

communities in which it operates.”These areas are directly related to

JEL classification codes: A13, L21, M14, M21, O10, O20, O21, O30, O35, O43,

O44, P25, R12

DOI: 10.1002/jsc.2256

Strategic Change. 2019;28:147–155. wileyonlinelibrary.com/journal/jsc © 2019 John Wiley & Sons, Ltd. 147