The CEOs' characteristics and their strategy development in the UK SME sector

Abstract

Purpose -This research sets out to examine the role of chief executive officers (CEOs) in the development of the business strategy in small and medium-sized enterprises (SMEs). Design/methodology/approach -The study explores the hypotheses that there is a relationship between: CEOs' age, work experiences, educational background and strategy formulation; and the impact of the strategic awareness on their part upon firm performance, using UK Standard Industrial Classification. The sample consisted of 508 SMEs in the electronics industry using "self-reported rating" survey questionnaire and interviews which resulted in 132 completed responses and 12 in-depth interviews. Findings -Correlation analysis of data showed that: there was no significant correlation between the age of the CEO's and their performance; professionally experienced CEOs placed more emphasis on formal strategy development; CEOs with an educational background are inclined to develop formal strategic plans. Strategic awareness of the CEOs plays a significant part in the formulation of business strategies.Research limitations/implications -The findings are mostly new though limited to the electronics industry. A future comparative industry-wide study is recommended. Practical implications -The research has far reaching implications for selecting, training and developing CEOs, since they play a significant role in formulation of the business strategy and the firm's performance. Originality/value -The original contribution concerns the CEO's awareness of the strategic planning process. It has special value for human resource management (HRM) decision processes towards recruitment, selection and training and management development of the CEOs.

The Impact of Internal Factors on Small Business Success: A Case of Small Enterprises Under the Felda Scheme

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“…Specifically, Amato et al (2016) argue that an entrepreneur who are more alert to their physical surrounding could acts independently in bringing forth a business concept or vision and able to carry a task through completion, leading to business success. Additionally, entrepreneurs in successful firms are also found to have the willingness to support creativity, experimentation, possess forward-looking perspective, and demonstrate efforts to outperform industry competitors (Coy et al, 2007;Karami et al, 2006;Bowen et al, 2009;Peris Bonet et al, 2011;Eggers et al, 2013). Based upon these arguments, this study postulates that:…”

“…Prior empirical works have established a relationship between entrepreneurial competency and business success (Coy et al, 2007;Karami et al, 2006;Eggers et al, 2013). It therefore becomes relevant to acknowledge that business owners, particularly in the small business context, act as a gatekeeper.…”

Fatores Simbólicos e Instrumentais de Atração de Pessoas em PMES Relações com o Estilo de Liderança do Empreendedor

“…Isto por que há uma influência direta e dominante do empreendedor ou principal gestor sobre todas as estratégias e processos da firma (Karami, Analoui, & Kakabadse, 2006;Matzler et al, 2008). Além disso, deve-se considerar que características pessoais e comportamentais das lideranças (tais como suas experiências, valores, personalidade, etc.)…”

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“…Both the formalization inherent in the strategic management system, and the way the system is introduced, can infer severe breaks from traditional management practices in the company (Flamholtz and Randle, 2007: 221ff. ) Consequently, the choice of strategic management system, and the design of the introduction phase, are crucial for future success (Karami et al, 2006;Håkonsson et al, 2012). The dominating strategic management system in the market is the strategic planning model (SP) (Wolf and Floyd, 2013).…”