Small and Medium Enterprises (SMEs) play an important role in each economy. Some of them even became market leaders from an international perspective. This stands in stark contrast to the fact that scientific and strategic management research up to date has only rudimentarily covered the field of strategic management of SMEs. Globalization is not a trend, a fad, or an isolated phenomenon. It is an inescapable force. If anticipated and understood, it is a powerful opportunity. If not, it can swiftly destroy businesses and drown organizations. Meanwhile the concern for globalization and its effect on SMEs has grown tremendously over the recent decade. Hence, strategic management becomes critical and deserves more attention due to the threats and opportunities globalization exposes and offers SMEs to at the same time. This chapter intends to make a contribution to this research gap by means of raising the question whether strategic management is feasible and/or necessary for SMEs, identifying suitable concepts of strategic management and their applicability for SMEs so that they can maintain their independence and at the same time blossom to their fullest extent.
Controlling for endogeneity with instrumental variables in strategic management research