A Conceptual Model for the Strategic Orientation of Small Firms

Abstract

The study of patterns of small firm strategic behavior, or strategic orientation, is gradually gaining prominence in the literature. Strategic behavior is a consequence of various antecedents, such as the prevalent management philosophy and environmental dynamism. It, in turn, determines the particular engineering stance adopted, structures and processes deployed, and ultimately, organizational performance. The purpose of this paper is to critique, enhance and extend a model proposed by Aloulou and Fayolle (2005) that is focused particularly on the entrepreneurial orientation of small firms. A model is proposed for small firm strategic orientation that is based on a configurational approach, and applies the concepts of the adaptive cycle and the firm's lifecycle. The rationale for, and the various dimensions of the proposed model are described, and recommendations made for future research on small firm strategic behavior.

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