Influence of Dimensions of Strategic Orientation on the Growth of Small Firms and Resources as Moderating Variables

2014 ◽  
Vol 39 (4) ◽  
pp. 461-476 ◽  
Author(s):  
Rakesh Gupta ◽  
Sriparna Basu
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Firm Growth ◽  
Strategic Orientation ◽  
Firm Resources ◽  
Resource Based View ◽  
Moderating Variables ◽  
Six Dimensions ◽  
The Relationship

The strategy–firm growth relationship has remained an important issue for researchers, and in spite of the growing volume of work in this area, little consensus has emerged on this issue. One of the reasons behind this lack of consensus is the question—how to conceptualize strategy? and in this, a lesser examined way has been to use the strategic orientation (SO) construct. As conceptualized by Venkatraman (1989), the SO construct comprises six dimensions, that of analysis, pro-activeness, riskiness, aggressiveness, futurity and defensiveness. The need to integrate SO and resource-based view (RBV) has seen increasing emphasis by researchers since the choice of resources constitutes an important precondition for firm growth and even more so in the case of small firms. This study empirically examines strategy–firm growth relationship through the lens of SO by studying the influence of individual SO dimensions on firm growth. In this study, we attempt to empirically examine and validate the nature of SO construct and how its individual dimensions influence small firm growth, how the dimensions interact with firm resources and what is the moderating influence of resources on the relationship between individual SO dimensions and small firm growth.

The relationship between the manager and growth in small firms

2009 ◽  
Vol 16 (4) ◽  
pp. 586-598 ◽  
Author(s):  
Svante Andersson ◽  
Joakim Tell
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Firm Growth ◽  
Policy Implications ◽  
Special Focus ◽  
Managerial Behavior ◽  
Content Type ◽  
Top Manager ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to improve the understanding of the relationship between the manager and growth in small firms, through a review of earlier research.Design/methodology/approachA review of articles published during the last 25 years is carried out in order to answer the question: How does the top manager influence growth in small firms?FindingsThree key relationships are identified: between growth and, respectively, managerial traits and characteristics, managerial intentions, and managerial behavior or roles. The diverse findings in the literature are contradictory and give a paradoxical picture of the impact of the manager. A deeper analysis of the results from the review, supplemented with leadership theory, yields a better understanding of small‐firm growth with a special focus on the behavior of the manager.Research limitations/implicationsThis paper problematizes the complexity in managing small‐firm growth, and can be further empirically validated by using multiple methods including qualitative ones such as observational studies.Practical ImplicationsThe findings have a bearing on education and policy implications. If a behavior can be identified that promotes small firms' growth, education and policy implications can be developed in line with these results.Originality/valueIn small firms there seems to be a general consensus that managers do influence the performance of small firms, but so far there has not been a systematic review of earlier empirical research, that is done in this paper. From this review, a more complete picture of how managers influence growth in small firms is presented.

Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–1946: An Assessment

1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Industrial Research ◽  
Large Firms ◽  
Research Activity ◽  
Growth And Survival ◽  
Survival And Growth ◽  
The Impact ◽  
The Relationship

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.

The relationship between growth and volatility in small firms

2014 ◽  
Vol 52 (8) ◽  
pp. 1516-1532 ◽  
Author(s):  
Ana Maria Moreno ◽  
Jose A. Zarrias ◽  
Jose L. Barbero
Keyword(s):  
Small Firm ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Small Firms ◽  
Quantitative Information ◽  
Similar Nature ◽  
Firm Level ◽  
Content Type ◽  
The Relationship ◽  
Environmental Hostility

Purpose – The purpose of this paper is to investigate the effect of predictors of growth (entrepreneurial orientation (EO) and environmental hostility) and growth itself on small-firm volatility. The objective is to find out: first, whether growth and volatility possess a similar nature; second, what are the predictors of small-firm volatility. Design/methodology/approach – Questionnaire data were collected from CEOs of 433 Spanish small firms (<500 employees) who provided qualitative as well as quantitative information. Findings – The authors find that some of the predictors on growth can also be used to predict firm volatility. Specifically, the authors find that firm volatility is influenced by EO and environmental hostility. Growth also influences firm volatility. The authors also find a strong interaction effect of growth and firm size on firm volatility. The authors conclude that although growth and firm volatility are related concepts, they are different. Originality/value – Growth has concentrated small-firm research during the last 20 years. However, during the last few years, the environment has become very dynamic and small firms need research helping them to deal with such dynamism. There are few studies on firm-level volatility. The research helps understand more the determinants of small-firm volatility.

scholarly journals Examining the Relationship between Firm Resources and Firm Performance: An Insight into the Airline Industry

2011 ◽  
Vol 2 (1) ◽  
pp. 27-49
Author(s):  
Evangelos Syrigos ◽  
Lida Kyrgidou
Keyword(s):  
Airline Industry ◽  
Performance Outcomes ◽  
Future Research ◽  
Business Success ◽  
Firm Resources ◽  
Research Directions ◽  
Resource Based View ◽  
Future Research Directions ◽  
Entrepreneurial Activities ◽  
The Relationship

Several scholars have pointed to the benefits that can be acquired by the combination of strategic and entrepreneurial activities with the aim of creating wealth and increased performance outcomes (e.g. Ireland et al., 2003; Sirmon et al., 2007; Monsen and Boss, 2009). In this vein, we employ the Resource-Based View (RBV) of the firm and examine whether the balanced implementation of both opportunity and advantage-seeking activities enhances the relationship between a firm’s resources and its performance outcomes. Using panel data from the airline industry, our findings reveal important implications for business success and for future research directions.

scholarly journals Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation

2021 ◽  
Vol 13 (24) ◽  
pp. 13541
Author(s):  
Yu Zhang ◽  
Yajuan Wang ◽  
Yao Li
Keyword(s):  
Market Orientation ◽  
Service Provision ◽  
Small Firms ◽  
Two Dimensions ◽  
Strategic Orientation ◽  
The Sustainable Development ◽  
Strategic Orientations ◽  
Basic Services ◽  
Technology Orientation ◽  
The Relationship

Servitization has significant implications for the sustainable development of manufacturing, the economy, and the environment. However, it does not always produce returns as the firms expect, which may discourage them from engaging in this transition. In this study, we examine the facilitating effects of two dimensions of strategic orientation (i.e., technology and market orientation) on two types of servitization (i.e., basic and advanced service provision), and further investigate the performance impacts of these servitization types contingent on firm size. By conducting an empirical study, using survey data comprising 210 samples, we confirm that both technology and market orientation are positively related to basic and advanced service provision. Moreover, while they have equal effects on basic services, market orientation is more important than technology orientation for providing advanced services. We also find that, for basic services, these two strategic orientations function independently, whereas they reinforce each other in the provision of advanced services. Finally, the relationship between servitization and firm performance is contingent on the size of the firm. Our results show that small firms can benefit from providing basic services, rather than advanced services, while only advanced services can improve the performance of large firms further.

scholarly journals KEUNTUNGAN KOMPETITIF ORGANISASI DALAM PERPSEKTIF RESOURCES BASED VIEW (RBV)

2015 ◽  
Vol 11 (2A) ◽  
pp. 1
Author(s):  
Leonardus Ricky Rengkung
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Firm Growth ◽  
Sustainable Competitive Advantage ◽  
Resource Based View ◽  
Organization Level ◽  
Highly Correlated ◽  
The Relationship

The uncertaintity and environmental dynamics faced by an organization are highly correlated with the firm’s presence in the organization environment.  Every organization has to an ability to analyze the organization environment in finding and maintaining its competitive advantage. There are some perspectives explaining about the relationship an organization and its environment, one of them is Resources-Based View (RBV). This Resources-Based View (RBV) is a perspective of strategic management focusing on organization level resources, having organization idiosyncratic resources and maximizing the overall resources of organization compared to competitor.  These resources can be a source of relational rents and competitive advantage. The RBV theorizes that the accumulation of resource stocks, that are valuable, rare, imperfectly imitable and non-subsitutable.  The resource-based view of the firm provides a useful perspective for explaining firm growth and sustainable competitive advantage. The purpose of this paper is to explain how an organization in finding and maintaining the competitive advantage in the aspect of Resources-based View (RBV).

Adopting ICT in the Mompreneurs Business

2011 ◽  
pp. 17-34
Author(s):  
Yvonne Costin
Keyword(s):  
Small Business ◽  
Small Firm ◽  
Small Firms ◽  
Firm Growth ◽  
Business Transactions ◽  
Effectiveness And Efficiency ◽  
Effective Use ◽  
Stakeholder Requirements

It is advocated that the role of technology is instrumental in determining the effectiveness and efficiency of where, when and how business transactions are undertaken to meet stakeholder requirements in a competitive manner. However, research by the Small Business Forum (2006) suggest the use and application of ICT in small firms overall is poor where entrepreneurs do not capitalise sufficiently on the benefits of ICT. To succeed and grow, mompreneurs’ businesses should be using ICT as a backbone for the business in an integrated manner. The objective of this chapter is to examine the adoption and application of ICT in the mompreneurs business and challenges encountered in its effective use. A specific emphasis is placed on the issue of ICT and its use by the mompreneur in undertaking business transactions and as a means of facilitating small firm growth.

Towards the Underlying Theories of Small Firm Growth: A Literature Review

2021 ◽  
pp. 231971452110496
Author(s):  
Nusrat Hafiz ◽  
Ahmad Shaharudin Abdul Latiff ◽  
Md Asadul Islam ◽  
Abu Naser Mohammad Saif ◽  
Sazali Abd Wahab
Keyword(s):  
Literature Review ◽  
Small Firm ◽  
Small Businesses ◽  
Small Firms ◽  
Firm Growth ◽  
Dynamic Capabilities ◽  
Empirical Studies ◽  
Theoretical Perspectives ◽  
Management Perspective ◽  
Small Business Growth

As a pre-condition for the economic growth of a country, the concept of firm growth has emerged as a critical strategic issue for small businesses from the strategic management perspective. While some literature reviews have been conducted on small firm growth, a comprehensive review of theories emphasizing the association of intangible resources with the growth of small firms has not been conducted. This study aims to provide a literature review of extant theoretical perspectives of small businesses literature. For the review, materials are collected and extracted from various online databases, and results are analysed using classifier variables. Five theories of firm growth, namely, the resource-based theory, knowledge-based theory, dynamic capabilities theory, upper echelon theory and resource-dependency theory, are selected to review, associating the present research aim. The theories are compared using key attributes and outcomes. A clear direction towards an optimum theory to underpin the small firms’ growth has been provided from a resource-management perspective. By validating various theoretical perspectives to explain small business growth, the present study provides first-hand insights for managers to formulate strategies and creates a cornerstone for future empirical studies.

scholarly journals Management Control Systems in Small Business Transfers — A Resource-Based View

2015 ◽  
Vol 23 (04) ◽  
pp. 449-471 ◽  
Author(s):  
Aapo Länsiluoto ◽  
Elina Varamäki ◽  
Erkki K. Laitinen ◽  
Anmari Viljamaa ◽  
Juha Tall
Keyword(s):  
Control Systems ◽  
Family Business ◽  
Small Firms ◽  
Management Control ◽  
Small Companies ◽  
Significant Relation ◽  
Web Based ◽  
Resource Based View ◽  
Transfer Success ◽  
The Relationship

This study investigates whether post-business transfer MCS development (PBTMCSD) is associated with post-business transfer success (PBTS) in small firms. The data for the study was collected in January 2012 as a web-based survey. The target group consisted of acquirers (both external buyers and family business successors) who had implemented a business transfer during 2006–2011 in Finland. A total of 178 questionnaires were sent out, and 67 responses were received. Regression analysis is used to investigate the relationship between PBTMCSD and PBTS. We utilize both resource-based view (RBV) and contingency theory. The results indicate that PBTMCSD has a positive and significant relation with PBTS. Our findings highlight the importance of PBTMCSD even in small companies in the context of business transfer. However, the relationship between PBTMCSD and PBTS performance was stronger for firms with five or more employees as well as firms with previous experience of business transfers.

HOW PRODUCT, OPERATIONS, AND MARKETING SOURCES OF IDEAS INFLUENCE INNOVATION AND ENTREPRENEURIAL PERFORMANCE IN AUSTRALIAN SMEs

2014 ◽  
Vol 18 (02) ◽  
pp. 1450017 ◽  
Author(s):  
GRACIELA CORRAL DE ZUBIELQUI ◽  
NOEL J. LINDSAY ◽  
ALLAN O'CONNOR
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Structural Model ◽  
Model Specification ◽  
Firm Resources ◽  
Resource Based View ◽  
Intangible Resources ◽  
Innovation Activities ◽  
The Relationship ◽  
Insight Into

In this paper we have used structural equation modelling to examine the inter-relationships among specific intangible resources — product, operations, and marketing sources of ideas — as they relate to innovation and firm performance. Prior studies founded upon the Resource Based View (RBV) of the firm, have focused on the relationship between innovation and firm performance or resources and firm performance, but have not examined both simultaneously. Our study reveals how the sources of ideas, as valuable strategic firm resources, directly, and/or indirectly via innovation activities, contribute to firm performance. We find that marketing sources of ideas directly influences firm performance and that product and operations sources of ideas do not. Indirectly, however, all three sources of idea resources (marketing, operational, and product) contribute to firm performance via the innovation construct. Thus, ideas, and where they come from, are crucial to understanding innovation and firm performance. Innovation is a key component in the structural model because it partially mediates the marketing idea sources-performance relationship. It also provides the basis for interaction effects among operations and product resources and firm performance. Therefore, including innovation in the conceptual model improves the model specification as it increases insight into the resource-performance relationship.

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