Toward a Theory of Small Firm Performance: A Conceptual Model

1988 ◽  
Vol 12 (4) ◽  
pp. 41-58 ◽  
Author(s):  
Barbara W. Keats ◽  
Jeffrey S. Bracker
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Small Firm ◽  
Organization Theory ◽  
Contextual Factors ◽  
Performance Outcomes ◽  
Domain Theory ◽  
Entrepreneurial Characteristics ◽  
And Performance

A conceptual model of small firm performance is developed based on extant theory in strategy, entrepreneurship and organization theory. It provides a framework for the study of the interrelationships among entrepreneurial characteristics, contextual factors and performance outcomes. It is considered a first step toward a limited domain theory of small firm performance.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

The Relationship Between Work-Life Balance (WLB) and Firm Performance

2017 ◽  
pp. 402-411
Author(s):  
Choi Sang Long
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Management Practices ◽  
Longitudinal Research ◽  
Synergistic Effects ◽  
Performance Outcomes ◽  
Favorable Effect ◽  
And Performance ◽  
The Cost ◽  
The Relationship

It is paramount that firms accurately assess the cost-effectiveness of WLB policies as initiatives to conduct such policies involve cost. WLB policies should be considered due to synergistic effects by employing a variety of policies. The benefits are usually under-estimated while the costs over-estimated, as the latter is easier to measure. Until longitudinal research is conducted, we cannot discount the possibility that successful organizations are more likely to offer WLB practices, and that the practices themselves are not exerting any favorable effect on organizational performance. Instead, it might simply be that organizations offering WLB practices are more predisposed to engaging in high-quality management practices and that this approach usually generates a positive effect on employees and performance outcomes. Thus, we can surmise that improved firm performance is a result of effective management usually associated with the implementation of WLB policies in the workplace, and not solely because of WLB per se.

Dynamic capabilities and performance: How has the relationship been assessed?

2019 ◽  
pp. 1-30
Author(s):  
Elisabeth P. Baía ◽  
João J. M. Ferreira
Keyword(s):  
Firm Performance ◽  
Literature Review ◽  
Conceptual Model ◽  
Performance Measures ◽  
Dynamic Capabilities ◽  
Practical Relevance ◽  
Intermediate Outcomes ◽  
And Performance ◽  
Research Stream ◽  
The Relationship

Abstract The contribution of dynamic capabilities (DCs) to firm performance remains unclear and at the centre of debate. Based on a systematic literature review of 92 quantitative articles, the purpose is to explore how the DC–performance relationship have and should be assessed in the future. The most promising approach seems to be indirect, as it appears that DCs primarily causes change and intermediate outcomes, though far from being the most hypothesized relationship. Moreover, investigations employ a continuum of conceptualizations, ranging from very specific DCs to generic sets with theoretical divergences and overlapping. The same applies to the varied performance measures adopted, evidencing that the literature still has a long way to go. Based on a structured synthesis and analysis of existing studies, a conceptual model, recommendations and future avenues are proposed, along with areas of attention, which have both managerial and practical relevance, contributing to advancement within this research stream.

The Effects of TMT Faultlines and CEO-TMT Power Disparity on Competitive Behavior and Firm Performance

2018 ◽  
Vol 44 (5) ◽  
pp. 874-914 ◽  
Author(s):  
Mengge Li ◽  
Carla D. Jones
Keyword(s):  
Firm Performance ◽  
Performance Outcomes ◽  
Competitive Behavior ◽  
Upper Echelons ◽  
Power Disparity ◽  
Negative Effect ◽  
Managerial Implications ◽  
Competitive Dynamics Research ◽  
And Performance ◽  
Competitive Actions

Although upper echelons scholars have drawn from the demographic faultlines concept to study top management team (TMT) subgroup dynamics, the effects of TMT faultlines on competitive behavior and performance outcomes have not been well documented. To gain greater insight, we develop a model that connects TMT faultlines, CEO-TMT power disparity, competitive behavior, and firm performance. We hypothesize that TMT faultlines and CEO-TMT power disparity jointly determine a firm’s competitive aggressiveness and simplicity, and these two competitive behaviors influence firm performance. Using a sample of 295 U.S. firms in 146 industries from 2000 to 2013, our findings indicate that (a) TMTs with strong faultlines take fewer and simpler competitive actions, and CEO-TMT power disparity further worsens the negative effect on the volume of competitive actions, and (b) fewer and simpler competitive actions benefit short-term firm performance; however, they hurt the long-term firm performance trend. These findings contribute to the upper echelons and competitive dynamics research and suggest important managerial implications.

scholarly journals The Effect of Risk, R&D Intensity, Liquidity, and Inventory on Firm Performance during COVID-19: Evidence from US Manufacturing Industry

2021 ◽  
Vol 14 (10) ◽  
pp. 499
Author(s):  
Jack Clampit ◽  
Dinesh Hasija ◽  
Michael Dugan ◽  
John Gamble
Keyword(s):  
Firm Performance ◽  
Asset Management ◽  
Manufacturing Industry ◽  
Ordinary Least Squares ◽  
Performance Outcomes ◽  
Inventory Level ◽  
Risk Averse ◽  
Sales Growth ◽  
Theoretical Frameworks ◽  
And Performance

Because prior knowledge may not generalize to the COVID-19 setting, scholars are racing to test the efficacy of existing theoretical frameworks during COVID-19. Most business studies are conceptual or surveys of damage. The main purpose of the paper is to extend the forthcoming stream that tests firm performance by examining it during COVID-19. We examine the sales growth of 1298 US manufacturers during COVID-19 compared to their pre-COVID-19 baselines. Riskier firms with higher R&D intensities performed better during COVID-19, especially when cash-to-inventory levels were low. This study is among the first to empirically identify actionable predictors of firm performance during COVID-19 via a quantitative analysis of strategies and performance outcomes. Understanding what type of firms perform at higher levels during COVID-19 will help decision makers make more informed decisions moving forward. Employing ordinary least squares (OLS) regression to test our hypotheses, our findings suggest that R&D intensive firms should pivot tactically regarding current asset management, if needed, but not strategically, while prioritizing inventory versus cash retention. The positive effect of inventory versus cash extends theory by suggesting a new boundary condition related to pandemics that reverses the positive link between cash and performance found during crises with more conventional levels of turbulence. Our most important contribution, however, is practical, via the testing of predictors that can help firms during COVID-19. For example, we found that firms with higher levels of operating risk experienced 60 percent more sales growth than risk-averse firms. This knowledge that risk-taking predicted performance during COVID-19 (especially when coupled with a focus on R&D intensity and inventory level) may encourage those that can adopt less risk-averse strategies, while others focus on tactical adjustments or mitigative measures during COVID-19 and future black swan events.

Antecedents and Performance Outcomes of Diversification: A Review and Critique of Theoretical Perspectives

1990 ◽  
Vol 16 (2) ◽  
pp. 461-509 ◽  
Author(s):  
Robert E. Hoskisson ◽  
Michael A. Hitt
Keyword(s):  
Firm Performance ◽  
Performance Outcomes ◽  
Governance Structures ◽  
Theoretical Perspectives ◽  
And Performance ◽  
The Relationship

Three theoretical perspectives summarize diversification antecedents and performance outcomes. The first perspective examines diversification under the assumption of relative market perfection where, within industries, firms and products are homogeneous. The second perspective discusses diversification where both market and firm imperfections are assumed to exist. The thirdperspective also assumes market andfirm imperfections, butfurther assumes imperfect governance structures such that managerial motivesfor diversification are influential. These perspectives provide different explanations of antecedent resources and incentives that encourage (or discourage) diversification. This article reviews evidence associated with each perspective concerning the relationship between diversification and firm performance and offers suggestions forfuture research based on comparisons among these alternative perspectives.

Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis

1993 ◽  
Vol 17 (3) ◽  
pp. 53-64 ◽  
Author(s):  
Charles R. Schwenk ◽  
Charles B. Shrader
Keyword(s):  
Firm Performance ◽  
Strategic Planning ◽  
Financial Performance ◽  
Small Firm ◽  
Small Firms ◽  
Sampling Error ◽  
Meta Analysis ◽  
Firm Financial Performance ◽  
And Performance ◽  
First Time

Researchers have been examining the effects of formal strategic planning on small firm financial performance for more than twenty years. Reviewers of prior studies have drawn differing conclusions as to whether formal planning improves small firm performance. We have applied meta-analysis for the first time to the results of previous studies on formal strategic planning and small firm performance. The results suggest that even though the size of the effects for planning for individual studies Is not large, the overall relationship between formal planning and performance across studies Is positive and significant. Much of the variance in the size of the effects, however, Is not explained by sampling error, Indicating the potential for other variables to moderate the effects of planning on the performance of small firms. It is concluded, in general, that strategic planning is a beneficial activity for small firms.

Empirical Investigation of Organisational Learning Ability as a Performance Driver in Construction

2011 ◽  
pp. 166-184 ◽  
Author(s):  
Irem Dikmen ◽  
M. Talat Birgonul ◽  
Tunca Ataoglu
Keyword(s):  
Firm Performance ◽  
Conceptual Model ◽  
Organisational Learning ◽  
Learning Ability ◽  
Learning Mechanisms ◽  
Construction Companies ◽  
And Performance ◽  
Main Components ◽  
Learning Factors ◽  
The Impact

In this chapter, the impact of organisational learning competency on the performance of construction companies is investigated. A conceptual model is proposed for the measurement of organisational learning competency. The main components of the model are learning sources, learning mechanisms, and the organisational setting. Organisational learning competency is assumed to be high only if an appropriate organisational setting exists, as well as the mechanisms used for management of knowledge acquired from various sources. A questionnaire is designed to collect data about organisational learning factors and performance. Findings of the questionnaire answered by 85 Turkish contractors demonstrate that there are statistically significant differences between the performances of contractors grouped according to their learning ability. It is empirically proved that as the organisational learning ability increases, firm performance also increases.

scholarly journals Informality and firm performance in Myanmar

2020 ◽  
Author(s):  
Hanna Berkel ◽  
Finn Tarp
Keyword(s):  
Firm Performance ◽  
Performance Outcomes ◽  
Manufacturing Firms ◽  
Business Practices ◽  
Panel Survey ◽  
Performance Variables ◽  
The Third ◽  
And Performance ◽  
Education Business

Using a novel panel survey of enterprises in Myanmar, we compare the performance of manufacturing firms by three different informality definitions. The first is binary, based on whether firms pay taxes. The second captures five categories of registration with the authorities, and the third definition relates to three groupings of the informality status of a firm’s workers. Depending on the informality concept used, formalization has positive, insignificant, and negative performance outcomes. However, our analysis shows that independent of the informality definition, differences between formalizers and non-formalizers are mostly because of disparities in the number of employees, capital, and use of power-driven machinery. Education, business practices, gender, location, and sector only play a role for some of the definitions and performance variables.

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