Graduation Year

2025

Document Type

Dissertation

Degree

D.B.A.

Degree Granting Department

Business Administration

Major Professor

Joann Quinn, Ph.D.

Co-Major Professor

Hemant Merchant, Ph.D.

Committee Member

Douglas Hughes, Ph.D.

Committee Member

Diane Kutz, D.B.A.

Keywords

Development, OME, Resource-Based View (RBV), SME, Underperformance, VRIN

Abstract

Micro and small businesses (MSBs) with 1-19 employees represent 99.9% of all U.S. private sector businesses and contribute nearly $4 trillion to the Gross Domestic Product (GDP), yet academic research on their internal growth strategies remains limited. This study examines how human resources (HR) and leadership function as strategic resources for growth across successive generations and partnerships in MSBs, addressing a critical gap in understanding how these internal capabilities create competitive advantages in resource-constrained environments.

Grounded in Resource-Based View (RBV) theory, this research investigated how HR and leadership capabilities meet the criteria for strategic resources—being valuable, rare, inimitable, and non-substitutable (VRIN)—within the unique operational context of micro and small businesses. The study employed a phenomenological hermeneutical methodology to capture the lived experiences of business owners and partners navigating organizational transitions.

Data was collected through 12 in-depth interviews with founders and partners from eight companies in the portable storage container industry, all members of the National Portable Storage Association (NPSA). Participants represented diverse organizational configurations, including family partnerships, non-family partnerships, and sole proprietorships transitioning to partnerships. A systematic six-step coding process generated 362 initial concepts, refined through axial coding into 19 thematic areas, and consolidated into three interconnected themes.

The findings revealed that HR and leadership capabilities function as strategic growth enablers through three mechanisms: (1) systematic leadership development that emphasizes progressive authority transfer and experiential learning, (2) partnership structures built on complementary skills and shared decision authority, and (3) cultural evolution that preserves core values while integrating modern practices. Companies implementing systematic approaches to these capabilities demonstrated more sustainable growth patterns than those relying on informal processes.

This research extends RBV theory by demonstrating how internal capabilities create competitive advantages through context-specific adaptation rather than sophisticated formalization. The findings challenge conventional assumptions about resource constraints in MSBs, revealing that appropriately scaled systematic approaches yield significant strategic benefits. For practitioners, the study provides an evidence-based framework emphasizing alignment over sophistication in developing HR and leadership capabilities as strategic assets for sustainable growth and successful organizational transitions.

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