Strategic adaptation: leadership lessons for small business survival and success
ISSN: 1935-5181
Article publication date: 5 February 2021
Issue publication date: 19 October 2021
Abstract
Purpose
Approximately half of all new businesses fail within the first five years of operation. This study was undertaken to understand the behavior of small business (SB) leaders, including their decision-making processes and adaptive leadership practices that enable their organizations to survive during periods of general crisis and intense competition.
Design/methodology/approach
In order to understand the lived experiences of our research participants, a constructivist grounded theory approach was used. Thirty-two CEOs and leaders from fifteen organizations were interviewed.
Findings
It was determined that successful SB leaders avoid organizational complacency by being continuous learners, who are agile and flexible in determining appropriate management strategies. Additionally, they leverage time management processes, build strong and productive relationship networks and create positive family-oriented workplace cultures to increase their odds of survival.
Research limitations/implications
This qualitative study was limited to interviews, observations and analysis of organizational archetypes; therefore, the authors can establish a pattern in behavior but cannot make a causality claim.
Practical implications
The findings provide SB leaders with effective concepts, practices and strategies from members of their peer group, which they can test, refine and implement.
Social implications
The impact of business failures is often devastating financially and emotionally for the families and employees involved. Learning methods for strategic adaptation that may help avoid business closures could provide a positive societal contribution.
Originality/value
There is little empirical research about how SBs strategically adapt during challenging periods. This study helps fill that gap and provides an understanding of how SB leaders adapt to continuous challenges, create value and remain competitive in difficult business environments.
Keywords
Acknowledgements
The authors extend their sincere appreciation to Paul Salipante, Ph.D., Case Western Reserve University and Richard J. Boland Jr., Ph.D., Case Western Reserve University for their insights and advice during the research.
Citation
Quansah, E. and Hartz, D.E. (2021), "Strategic adaptation: leadership lessons for small business survival and success", American Journal of Business, Vol. 36 No. 3/4, pp. 190-207. https://doi.org/10.1108/AJB-07-2020-0096
Publisher
:Emerald Publishing Limited
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