Action learning as a processual approach for increasing the learning capability of action learning sets with SMEs

Aim This paper explores how learning capability can be enhanced within Action Learning Sets (ALS) of SME owner-managers. Drawing on entrepreneurial learning, it examines the relationship between identity and learning capability, contributing both to understanding how owner-managers learn and to the practice of facilitating ALS. Methodology Ethnographic research was conducted with two ALS over ten months, each comprising six SME owner-managers and a trained facilitator. Data were collected through non-participant observation, qualitative interviews, and the facilitator’s reflective diary. Contribution We argue that ALS participants negotiate dual identities—‘owner-manager’ and ‘set member’—which influence the learning capability of the ALS. We use the ancient Greek word Kairos as a metaphor for these moments which can transform learning capability. Becoming a set member requires adopting new behaviours such as open questioning, empathy, and active listening. These tend to be at odds with typical entrepreneurial identity / owner-manager norms such as being decisive and “having the answers”. Theoretically, this extends entrepreneurial learning literature by positioning identity work and Kairos as central to how learning unfolds in practice. Implications for Practice Recognising and working with the concept of Kairos enables facilitators to intervene more effectively, surfacing identity tensions as opportunities for deeper learning. This enhances both individual and collective learning capability, offering insights for practitioners supporting SME development through action learning.