Managerial and organisational factors: Unravelling resource allocation choices in high-performing micro-firms

Abstract

Resource allocation decisions are pivotal in shaping the strategic direction of organisations, particularly in micro-firms that operate with limited resources and dispersed information. This research delves into the intricate interplay between managerial and organisational factors related to information collection, processing and resource allocation in the context of high-performing micro-firms. By advancing our understanding of how the internal coordination of information needed in decision-making and resource allocation evolves within micro-firms, we reveal the mechanisms that stabilise the relationship between participants and problems. Additionally, we explore how the capabilities of managers and owners, who often centralise final decisions in micro-firms, can catalyse the emergence of such coordination. This holistic view of strategic resource allocation in micro-firm settings addresses the fundamental question of how micro-enterprises overcome structural limitations to achieve high levels of performance. Our findings provide valuable insights for scholars, managers and policymakers, contributing to the broader discourse on resource management in micro-firms.