Strategic planning in growth oriented small firms

Citation

Mazzarol, T. (2009), "Strategic planning in growth oriented small firms", Strategic Direction, Vol. 25 No. 11. https://doi.org/10.1108/sd.2009.05625kad.003

Strategic planning in growth oriented small firms

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 11

Mazzarol T., Reboud S., Soutar G.N. International Journal of Entrepreneurial Behaviour & Research (UK), 2009, Vol. 15 No. 4, Start page: 320, No. of pages: 26

Purpose – 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 behavior. Follow-up discussions over their results were conducted face-to-face. Data were analyzed 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 behavior within small firms remains underdeveloped, and this paper provides valuable insights into this area. Article type: Research paper ISSN: 1355-2554 Reference: 38AQ506

Keywords: Business planning, Management strategy, Owner-managers, Small enterprises