From Entrepreneurial to Professional Management: A Transition Model from Australian Manufacturing SMEs

Abstract

This paper empirically examines the transition of Australian manufacturing SMEs from entrepreneurial to professional management. Building on McMahon’s (2001) work, the study applies management transition related variables from Australia’s Business Longitudinal Survey to the three growth paths identified.

The findings provide empirical support for much of the literature related to managerial transitions. In addition, a model of the transition process of Australian manufacturing SMEs is proposed that deals with ambiguity apparent in some overseas literature. The model demonstrates that the typical transition to professional management is evolutionary rather than revolutionary and because of this, the total management point needs to be distinguished from the threshold point. The findings also indicate that the Australian context is not significantly different from overseas. Finally, areas for further research are provided.