Abstract
Purpose
This study aims to address the following question: when strategic flexibility can be most beneficial to small and medium enterprises (SMEs) in the context of emerging economies.
Design/methodology/approach
Drawing on dynamic capabilities perspective, this study builds a contingency model and examines it with survey data collected from 166 SMEs in China.
Findings
This study finds that the relationship between strategic flexibility and firm performance is extensively moderated by external (competitive intensity and environmental munificence), internal (resource combination activities), as well as bridging factors (managerial ties).
Originality/value
The findings contribute to the contingency view of strategic flexibility and firm performance research by incorporating insights from the dynamic capabilities perspective and by expanding the scope of existing research to emerging economies.
Keywords
Acknowledgements
This study is supported by Project of National Natural Science Foundation of China (71102105; 71232011), and the Fundamental Research Funds for the Central Universities and the Research Funds of Renmin University of China (10XNC001).
Citation
Guo, H. and Cao, Z. (2014), "Strategic flexibility and SME performance in an emerging economy: A contingency perspective", Journal of Organizational Change Management, Vol. 27 No. 2, pp. 273-298. https://doi.org/10.1108/JOCM-11-2012-0177
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited