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Strategic planning in growth oriented small firms

Purpose - The paper aims to examine the management practices of owner-managers of small businesses seeking to grow their firms. It seeks to better understand their strategic thinking in relation to internal and external environmental issues.Design methodology approach - A sample of 204 owner-manager...

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Bibliographic Details
Published in:International journal of entrepreneurial behaviour & research 2009-06, Vol.15 (4), p.320-345
Main Authors: Mazzarol, Tim, Reboud, Sophie, Soutar, Geoffrey N
Format: Article
Language:English
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Summary:Purpose - The paper aims to examine the management practices of owner-managers of small businesses seeking to grow their firms. It seeks to better understand their strategic thinking in relation to internal and external environmental issues.Design methodology approach - A sample of 204 owner-managers who had indicated their desire for growth was surveyed using a questionnaire developed from earlier research that examined their strategic and operational behaviour. Follow-up discussions over their results were conducted face-to-face. Data were analysed using confirmatory factor analysis and discriminant analysis.Findings - Firms that possessed formal written business plans were found to be more likely to have stronger support network partnerships, formal quality assurance and the ability to lead change among employees. A relationship was found between an above average level of annual sales turnover and the personal vision of the owner-managers.Research limitations implications - Although the sample was atypical, in that it was comprised of owner-managers who had a growth orientation, the study suggests that owner-managers who have a strong growth orientation are likely to have an enhanced sense of their strategic vision, and the ability to communicate this vision to their employees.Practical implications - The findings in this paper suggest that owner-managers from small firms should seek to benchmark their business against industry best practice, but that such benchmarking must be supported by a clear strategic vision and the capacity to communicate this vision to others, particularly employees.Originality value - The literature relating to strategic thinking and behaviour within small firms remains underdeveloped, and this paper provides valuable insights into this area.
ISSN:1355-2554
1758-6534
DOI:10.1108/13552550910967912