Cooperative Alliances and Competitive Strategies in Small Manufacturing Firms

1993 ◽  
Vol 17 (4) ◽  
pp. 43-56 ◽  
Author(s):  
Peggy A. Golden ◽  
Marc Dollinger
Keyword(s):  
Firm Performance ◽  
Small Firm ◽  
Small Firms ◽  
Direct Relationship ◽  
Interorganizational Relationships ◽  
Manufacturing Firms ◽  
Competitive Strategies ◽  
Strategic Posture ◽  
Cooperative Strategies

This study extends existing work in the area of interorganizational relationships by exploring the interaction between the strategic posture of small firms and their propensity to form cooperative linkages. The most critical finding is that most small firms do use cooperative strategies, and that these strategies are used differentially by different strategic types. However, it is unclear whether there is a direct relationship between the competitive postures, interorganizational strategies, and small firm performance.

Small firm performance: an empirical analysis in Malaysian housing construction industry

2017 ◽  
Vol 10 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Rosman Mahmood ◽  
Ahmad Suffian Mohd Zahari ◽  
Najihah Marha Yaacob ◽  
Sakinah Mat Zin
Keyword(s):  
Firm Performance ◽  
Small Firm ◽  
Business Strategy ◽  
Small Firms ◽  
Growth Potential ◽  
Construction Sector ◽  
Internal Factors ◽  
Content Type ◽  
Entrepreneurial Capital ◽  
And Training

Purpose The purpose of this paper is to evaluate the importance of innovation for the performance of small firms in the construction sector. Furthermore, this paper also examines the influence of several factors related to entrepreneurial capital (entrepreneurial value, business strategy, experience and training) on small firm performance in the sector. Design/methodology/approach This study uses primary data of 255 small firms in the construction sector under the category of small contractors (G1). Stratified sampling method was utilized for data collection, which is then analyzed using the descriptive and multiple regression analysis to achieve the objectives of the study. Findings The findings showed that the factor of innovation and several factors related to entrepreneurial capital (entrepreneurial value, business strategy and business experience) have a significant positive relationship with the performance of small firms in the construction sector. However, factor of training indicated a significant negative correlation with small firm performance. Research limitations/implications Although this study found a significant impact in explaining the factors that affect performance, particularly in the construction sector, it only takes into account only some internal factors (entrepreneurial capital and innovation). Proposed future research should consider a variety of other factors mainly related to external factors, such as economic development, growth potential, industry structure, internal social capital and government policy. Practical implications This study provides clear implications related to the theory and contributions to the literature related to research in the construction sector. The study also provides invaluable insightfulness to various stakeholders including policy makers, institutional support and small contractors about the importance of innovation and entrepreneurial capital in determining the performance of small firms in the sector. Originality/value The results provide supportive evidence that entrepreneurial values and business strategy are important internal factors in determining the performance of a firm, which is consistent with the theory of resource-based view. Experience and training factors, as indicators of firm performance, are articulated in the theory of human capital. Hence, the findings not only can strengthen both the theories but also make a significant contribution to the literature of the study, particularly in the construction sector.

Organizational Characteristics and Small Firms’ Performance Revisited

1989 ◽  
Vol 13 (2) ◽  
pp. 49-64 ◽  
Author(s):  
Paul B. Cragg ◽  
Malcolm King
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Small Firm ◽  
Small Firms ◽  
Causal Model ◽  
Organizational Characteristics ◽  
Future Research ◽  
Firm Financial Performance ◽  
Mixed Support ◽  
Research Studies

Numerous studies have attempted to gain a greater understanding of small firm performance with the intent of isolating factors which are important for success. The studies, some with serious limitations, suggest that many different variables are Important to success. A further study of 179 small, metal goods manufacturers enabled some of the specific relationships to be re-examined, but with mixed support for previous findings. Various suggestions are made for future research studies. A causal model of small firm financial performance is proposed.

scholarly journals Human resource practices, employee attitudes and small firm performance

2016 ◽  
Vol 35 (4) ◽  
pp. 470-494 ◽  
Author(s):  
Yanqing Lai ◽  
George Saridakis ◽  
Stewart Johnstone
Keyword(s):  
Job Satisfaction ◽  
Firm Performance ◽  
Financial Performance ◽  
Human Resource ◽  
Small Firm ◽  
Direct Relationship ◽  
Labour Productivity ◽  
Employee Attitudes ◽  
Hr Practices ◽  
The United Kingdom

This article uses the matched employee–employer dataset from the Workplace Employment Relations Study of 2011 (WERS2011) in Britain to empirically examine the direct relationship between human resource management (HRM) practices and small and medium-sized enterprise (SME) performance in the United Kingdom, as well as the potential moderating effect of organisational commitment/job satisfaction on the HRM-performance linkage. We find a positive and direct relationship between the use of certain formalised human resource (HR) practices and SME performance, measured by financial performance and labour productivity. More importantly, we find that the positive relationship between HR practices and financial performance varies between SMEs with high job satisfaction and low job satisfaction, and that the relationship is weakened in SMEs with high job satisfaction. The results suggest that certain HR policies and practices may improve small firm performance, especially within firms with low levels of commitment and satisfaction.

Harnessing Supply Chain Knowledge for Mitigating the Negative Effects of Bricolage

2020 ◽  
Vol 17 (04) ◽  
pp. 2050023
Author(s):  
Gurjeet Kaur Sahi ◽  
Nivedita Agarwal
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Small Firms ◽  
Large Scale ◽  
Manufacturing Firms ◽  
Negative Effects ◽  
North West ◽  
Final Sample ◽  
Quadratic Effects ◽  
Positive Effect

Bricolage is a term used to illustrate the practice in which small firms tap scant available resources to exploit business opportunities and to facilitate innovation. We focus on decreasing returns from excessive bricolage and, more importantly, highlight an important role played by supply chain knowledge in mitigating decreasing returns from bricolage. The role played by supply chain knowledge in reducing the negative effects of excessive bricolage is not explored yet. This study, in the context of an emerging economy, seeks to isolate the linear and quadratic effects of bricolage on firm performance and examines the moderating influence of supply chain knowledge on the bricolage-to-firm performance relationship. To test the proposed relationships, data from large-scale manufacturing firms in north-west India were used. The final sample size of 106 firms was used for testing the relationships using stepwise OLS analysis. The results revealed that at lower levels of supply chain knowledge, bricolage had an inverted-U relationship with firm performance. In other words, supply chain knowledge mitigates the negative effects of bricolage on performance. However, it did not strengthen the positive effect of bricolage on performance.

scholarly journals LOCAL FINANCIAL DEVELOPMENT AND FIRM PERFORMANCE: DOES FINANCIAL OUTREACH REALLY MATTERS WITHIN INDONESIAN ARCHIPELAGO?

2017 ◽  
Vol 19 (3) ◽  
pp. 287-318
Author(s):  
Fickry Widya Nugraha
Keyword(s):  
Firm Performance ◽  
Financial Services ◽  
Small Firms ◽  
Empirical Finding ◽  
Manufacturing Firms ◽  
Indonesian Archipelago ◽  
Level Data ◽  
Combining Data ◽  
Local Stakeholders ◽  
Level Of Economic Development

This study attempt to examine whether firm’s performance depends on the local financialdevelopment across Indonesian provinces within 2010-2013. Combining data from the Indonesian survey of manufacturing firms with information from regional-level data, the study empirically documented several key findings. First, there are no consistent results that local bank availability is robustly associated with faster growth for firms in sectors with growth opportunities. Second, this paper documented a positive interplay between access to financial services to firm performance particularly within western part region of Indonesia. Third, access to the financial service appears to be closely connected with the level of economic development, particularly rate of poverty and inflation in the western part region of Indonesia.Taken these empirical finding together, this study imply that the level of inequality across Indonesian archipelago need to be reduced in order not only to provide a better access of financial services to the local stakeholders but also to improve small firms performance.

The impact of market orientation on small firm performance: a configurational approach

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanjay Chaudhary ◽  
Deepak Sangroya ◽  
Elisa Arrigo ◽  
Giuseppe Cappiello
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Small Firm ◽  
Small Firms ◽  
Emerging Economy ◽  
Competitive Environment ◽  
Strategic Flexibility ◽  
Competition Intensity ◽  
Content Type ◽  
The Impact

PurposeIn this study, the authors examine the influence of market orientation on small firms' performance. The authors theorize that the association between market orientation and small firm performance provides an incomplete picture in a competitive environment. The application of configuration approach which involves simultaneous consideration of market orientation, strategic flexibility and competition intensity is crucial to examine driver of firm performance.Design/methodology/approachThe sample of the research study consists of 272 small firms from an emerging economy, India. Ordinary least squares regression has been used to investigate the hypothesized relationships.FindingsThe authors noted that the three-way interaction between market orientation, strategic flexibility and competition intensity elucidates variance in small firm performance over and above a contingency model and a direct relationship.Research limitations/implicationsThe findings contribute to the existing literature by exhibiting the effect of market orientation on firm performance. The configuration model suggests that small firms can outperform competitors in a lower competitive environment if they have high market orientation and high strategic flexibility investment. To leverage market opportunities and achieve better firm performance, small firms’ owners should analyze the usefulness of current capabilities in a changing competitive environment concurrently and align market orientation to those conditions.Originality/valueThe strategic management and marketing literature suggests that relationship between market orientation and performance is ambiguous. The findings offer insights to managers regarding the appropriate use of strategic flexibility in leveraging the benefits of market orientation in a highly competitive environment. Furthermore, by collecting data from the context of an emerging economy, India, the authors attempt to strengthen the applicability of market orientation in different contexts.

Unraveling the Determinants and Consequences of an Innovation-Supportive Organizational Culture

2000 ◽  
Vol 25 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Gaylen N. Chandler ◽  
Chalon Keller ◽  
Douglas W. Lyon
Keyword(s):  
Organizational Culture ◽  
Firm Performance ◽  
Human Resource ◽  
Direct Relationship ◽  
Reward System ◽  
Manufacturing Firms ◽  
Competitive Environment ◽  
System Support ◽  
Supervisory Support ◽  
Innovative Culture

The current research identifies constructs that are supportive of an innovative culture in small to medium-sized enterprises. A sample of 429 employees in 23 small to medium-sized manufacturing firms was used to identify constructs associated with an innovative culture. Supervisory support and reward system support are both positively related to an innovative culture. Perceived work overload is negatively related. Companies with cultures supportive of innovation tend to be smaller, have fewer formalized human resource practices, and less munificent resources. There is no direct relationship between an innovative culture and firm performance; however, when the competitive environment is changing rapidly firm earnings are enhanced by an innovative culture.

scholarly journals Assessment of Entrepreneurial Traits and Small-Firm Performance with Entrepreneurial Orientation as a Mediating Factor

2019 ◽  
Vol 11 (19) ◽  
pp. 5301 ◽  
Author(s):  
Tazeen Imran ◽  
Rizwan Raheem Ahmed ◽  
Dalia Streimikiene ◽  
Riaz Hussain Soomro ◽  
Vishnu Parmar ◽  
...  
Keyword(s):  
Firm Performance ◽  
Achievement Motivation ◽  
Small Firm ◽  
Entrepreneurial Orientation ◽  
Self Efficacy ◽  
Small Firms ◽  
Practical Implication ◽  
Positive Association ◽  
Path Modeling ◽  
Successful Performance

Entrepreneurship is considered to be one of the most critical factors contributing to the successful performance of business, innovations, and growth of the economy. Entrepreneurship is the main driver of innovation and sustainable business. The purpose of this research is to assess the main traits that are deemed essential for the successful performance of a firm. A model is developed to assess how entrepreneurs’ creativity, self-efficacy, and achievement motivation influence the performance of small firms through the role of entrepreneurial orientation (EO) as a mediating variable. The hypotheses are tested by using Smart PLS (partial least squares path modeling) on a sample of 353 business owners to seek the insight of entrepreneurial traits on small-firm performance. The findings of the research show that self-efficacy and EO have a significant and positive association with the performance of a firm, while creativity and internal locus of control are fully mediated by EO. The subjective measures are used to examine the performance of a firm in terms of growth, sustainability, and financial performance, but the same can also be assessed by objective measures. The practical implication of this research provides entrepreneurs with a different perspective of the entrepreneurial traits that contribute to successful firm performance. The originality of the research lies in the attempt to explore the entrepreneurial traits that significantly influence the effectiveness of the performance of firms in the Pakistani context.

STRATEGIC POSTURE, TECHNOLOGY STRATEGY AND PERFORMANCE AMONG SMALL FIRMS

2003 ◽  
Vol 11 (02) ◽  
pp. 131-146 ◽  
Author(s):  
PATRICK T. GIBBONS ◽  
TONY O'CONNOR
Keyword(s):  
Firm Performance ◽  
Small Firms ◽  
Technology Policy ◽  
Technology Strategy ◽  
Sales Growth ◽  
Strategic Posture ◽  
Performance Effects ◽  
And Performance ◽  
The Relationship

This paper investigates the performance effects of both aggressive technological posture and automation in a sample of 336 small and medium-sized enterprises. The paper seeks to test whether firm strategic posture mediates the relationship between technology policy and firm performance. Findings suggest that strategic posture does not mediate the relationship between technology policy and ROI, but does mediate the relationship between technology policy and sales growth.

scholarly journals The Relationship between Social Networks and Firm Performance

2015 ◽  
Vol 1 (01) ◽  
Author(s):  
Sylvia Manjeri Aarakit ◽  
Francis Keneth Kimbugwe
Keyword(s):  
Social Networks ◽  
Firm Performance ◽  
Resource Sharing ◽  
Information Exchange ◽  
Small Firms ◽  
Building Blocks ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Small Scale ◽  
The Relationship

The study sought to investigate the relationship social networking construct and firm performance. A quantitative research design was employed, whereby data were collected, analyzed and presented using quantitative techniques. Primary data was collected directly from the respondents who are intrapreneurs employed in small and medium bakery and beverage manufacturing firms in Kampala Uganda. The results show a significant and positive relationship between social networks and firm performance (r=.521**, p<.01). This implies that, adhering to and implementing the advice and other information from the professionals, experienced business associates and colleagues will enhance the level of performance of the small scale manufacturing businesses. Further, regression results show that social networks predicted firm performance (Beta = .445, Sig=000). This study posits that social networks can be a cost-effective way of improving small firms’ performance, particularly manufacturing firms. It can therefore be recommended that, small firms support information exchange and resource sharing within and without the business through building blocks that enhance trust amongst its employees. This can be inexpensive method of finding out more efficient ways of operating thus improved firm performance.

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