Moderating Influences on the Strategy Making and Firm Performance Relationship: A Study of Small and Medium Entreprises

2011 ◽  
Author(s):  
P.M. Bandula Jayathilake
Keyword(s):  
Firm Performance ◽  
Strategy Making

scholarly journals Strategy-making process and firm performance in small firms

2006 ◽  
Vol 12 (3) ◽  
pp. 209-222 ◽  
Author(s):  
Martie-Louise Verreynne
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Structural Equation ◽  
Small Firms ◽  
Large Firms ◽  
Structural Equation Analysis ◽  
Equation Analysis ◽  
Strategy Making

ABSTRACTThis 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.

scholarly journals Strategy-making process and firm performance in small firms

2006 ◽  
Vol 12 (3) ◽  
pp. 209-222 ◽  
Author(s):  
Martie-Louise Verreynne
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Structural Equation ◽  
Small Firms ◽  
Large Firms ◽  
Structural Equation Analysis ◽  
Equation Analysis ◽  
Strategy Making

ABSTRACTThis 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.

Entrepreneurial strategy making in tourism organisations: a systematic review and future research agenda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arthur Kearney ◽  
Denis Harrington ◽  
Tazeeb Rajwani
Keyword(s):  
Systematic Review ◽  
Firm Performance ◽  
Literature Review ◽  
Performance Outcomes ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
Entrepreneurial Strategy Making ◽  
The Relationship ◽  
Strategy Making

PurposeUsing a state of the art CIMO literature review the paper develops a framework of the relationship between strategy making in the small tourism firm context and four performance outcomes.Design/methodology/approachThe paper uses the CIMO literature review method, adapted from the wider management literature to structure and integrate the existing fragmented literature base.FindingsPremised on the literature review, a framework of the relationship between strategy making and firm performance in context is posited. Emerging from a dominant owner/manager in a deeply embedded context strategy making influences firm performance across four dimensions. The influence is dynamic, continually subject to modification in a changing environment often mediated through emerging technology.Research limitations/implicationsThe CIMO method provides an integrated framework of the relationship between strategy making and small firm performance in context hence overcoming limitations of the fragmented nature of the research landscape. Emerging from the review key future research trajectories is posited.Practical implicationsWhile highlighting the relationship between strategy making and performance, the proposed framework implies owner/managers play the key role in strategy making with opportunities and challenges in modifying existing strategy making emerging from owner/manager embeddedness. Opportunities for improved policy interventions are posited.Originality/valueThe paper applies the systematic review to the relationship between strategy making and the small tourism firm.

scholarly journals The Engagement of Employees In The Strategy Process and Firm Performance: The Role of Strategic Goals and Environment

1970 ◽  
Vol 22 (2) ◽  
pp. 75-100
Author(s):  
Linda Tegarden ◽  
Yolanda Sarason ◽  
Stephen Childers ◽  
Donald Hatfield
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Strategy Process ◽  
Strategic Goals ◽  
Strategy Making

Despite the call to engage employees in strategy making processes, empiricalevidence that ties this engagement to financial performance has not been forthcoming.This study fills this gap by investigating whether involving employeesin the strategy making process leads to a higher achievement of strategic goalsand subsequently increased financial performance. Our findings suggest thatthe link between strategy making processes and financial performance may beunderestimated unless strategic goals are included as a mediator. We also findenvironmental dynamism moderates the relationships we investigate. Under conditionsof low dynamism, there is a stronger relationship between the engagementof employees and strategic goals related to innovation than under conditions ofhigh dynamism. Conversely, strategic goals related to quality have a strongerrelationship with engagement of employees under conditions of high dynamismwhen compared to conditions of low dynamism.

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