This paper analyzes small firm performance in relation to efficiency and flexibility strategies. Using configuration theory, the authors propose that small firms that pursue efficiency strategies or flexibility strategies outperform those that attempt to pursue both. Additionally, size is used as a configurational attribute to develop competing hypotheses on whether efficiency strategies or flexibility strategies are better suited for small firm performance. In two samples of 200 and 144 privately-held small firms, firms that mixed efficiency and flexibility strategies significantly underperformed. No significant performance differences were found between firms utilizing only efficiency strategies and those utilizing only flexibility strategies.

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This study investigated the relationship between cash conversion cycle and levels of liquidity, invested capital, and performance in small firms over time. In a sample of 879 small U.S. manufacturing firms and 833 small U.S. retail firms, cash conversion cycle was found to be significantly related to all three of these aspects. Firms with more efficient cash conversion cycles were more liquid, required less debt and equity financing, and had higher returns. The results also indicate that small firm owners/managers may be reactive in managing cash conversion cycle. The study highlights the importance of cash conversion cycle as a proactive management tool for small firm owners.RéSUMé. Cette étude examine le lien entre le cycle d'exploitation et les niveaux de liquidité, le capital investi, et le rendement chez les petites entreprises au fil du temps. Les résultats obtenus à partir d'un échantillon de 879 petites entreprises manufacturières américaines et 833 petites entreprises américaines de vente au détail révèlent que le cycle d'exploitation est lié de façon significative à ces trois aspects. Les entreprises avec des cycles d'exploitation plus courts avaient plus de liquidités, nécessitaient moins de financement par emprunt et par actions, et avaient des rendements supérieurs. Les résultats révèlent également que les propriétaires/gestionnaires de petites entreprises ont peut-être une approche réactive à la gestion du cycle d'exploitation. L'étude souligne l'importance du cycle d'exploitation comme outil de gestion proactive pour les propriétaires de petites entreprises.

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to investigate relationships between financial condition and the use of bootstrapping in small firms. Design/methodology/research -A total of 901 manufacturing firms were selected from a comprehensive financial database containing income statement and balance sheet records. Surveys were sent to each of these firms and 186 firms returned usable surveys. Survey responses on bootstrapping techniques were compared with financial data for these 186 firms. Both the initial financial status and the financial status of these firms two years later were analyzed. Findings -The results indicate that highly levered, illiquid, and underperforming firms were more likely to use certain bootstrapping methods than other firms, and that the methods they used may have been detrimental to future firm performance.Research limitations/implications -The findings support a resource dependence model and raise questions as to why financially constrained firms chose to use particular bootstrapping methods. Generalizability of the study is limited due to the homogeneous sample of manufacturing firms and due to the sample and recall biases associated with surveys. Practical implications -Small business owners should understand the options available for bootstrapping as well as the importance of proactive as opposed to reactive financial strategy. Originality/value -This is one of the first empirical studies that investigates the relationship between financial condition and bootstrapping, and it provides insight into how and when small firms bootstrap as well as some potential implications of bootstrapping on firm outcomes.

This study found evidence that operating strategies of efficiency and flexibility are related to product offering in small firms and that these firms have difficulties pursuing both strategies. In a sample of 200 small manufacturing firms, significant differences were found in measures of operational performance between firms providing only standard products and firms providing only made-to-order products, and these differences coincided with efficiency and flexibility in operations. Additionally, firms providing both standard and made-toorder products had significantly lower operational performance on nearly all measures than other firms. These results indicate that small firms should focus on either standard or made-to-order product offerings, as these allow for consistency in organizational development.SOMMAIRE. La présente étude donne à penser que le stratégies d'efficacité et de flexibilité qui sont utilisées par les petites entreprises sont reliées à l'offre de produits, et que ces entreprises ont de la difficulté à poursuivre ces stratégies. Un échantillon de 200 petites entreprises de fabrication a révélé des différences significatives dans les mesures de performance opérationnelle entre les entreprises qui ne fournissent que des produits standard et celles qui fournissent seulement des produits sur mesure. Ces différences coïncidaient avec l'efficacité et la flexibilité des opérations. De plus, les entreprises fournissant à la fois des produits standard et des produits sur mesure affichent sur presque tous les plans une performance opérationnelle nettement inférieure à celles des autres entreprises. Ces résultats indiquent que les petites entreprises devraient se concentrer sur les offres de produits ou bien standard ou bien sur mesure afin d'obtenir un développement organisationnel cohérent.