Strategy-making process and firm performance in small firms

Martie‐Louise Verreynne

62 citations0/0 files storedJournal of Management & Organization

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Abstract

ABSTRACT This paper argues that individual small firms just like large firms, place differing emphasis on strategy-making and may employ different modes of strategy-making. It offers a typology of the different modes of strategy-making that seem most likely to exist in small firms, and hypothesises how this typology relates to performance. It then describes the results of an empirical study of the strategy-making processes of small firms. The structural equation analysis of the data from 477 small firms with less than 100 employees indicates among other results that the simplistic, adaptive, intrapreneurial and participative modes of strategy-making exist in these small firms. Of these modes, the simplistic mode exhibits the strongest relationship with firm performance.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 2000Structural equation modeling with AMOS: basic concepts, applications, and programming 1978Organizational Strategy, Structure, and Process 1989Strategic management of small firms in hostile and benign environments 1985Of strategies, deliberate and emergent 1978Organizational Strategy, Structure, and Process 1983In search of excellence: Lessons from America's best- run companies

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