Beyond the formal–informal dichotomy of small firm strategy-making in stable and dynamic environments

Verreynne, Martie-Louise, Meyer, Denny and Liesch, Peter (2016) Beyond the formal–informal dichotomy of small firm strategy-making in stable and dynamic environments. Journal of Small Business Management, 54 2: 420-444. doi:10.1111/jsbm.12143


Author Verreynne, Martie-Louise
Meyer, Denny
Liesch, Peter
Title Beyond the formal–informal dichotomy of small firm strategy-making in stable and dynamic environments
Journal name Journal of Small Business Management   Check publisher's open access policy
ISSN 0047-2778
1540-627X
Publication date 2016-04
Year available 2014
Sub-type Article (original research)
DOI 10.1111/jsbm.12143
Open Access Status Not Open Access
Volume 54
Issue 2
Start page 420
End page 444
Total pages 25
Place of publication Hoboken, NJ, United States
Publisher Wiley-Blackwell Publishing
Collection year 2015
Language eng
Formatted abstract
Strategy-making assists small firms in managing change and uncertainty by developing suitable strategic options. We move beyond the conventional formal–informal dichotomy to show how three informal approaches—internal participation, external participation, and centralized strategy-making—help both entrepreneurial firms and conservative firms to navigate more or less dynamic environments. In an empirical study of 320 small firms, we find that participation during strategy-making relates positively to performance whereas centralization only matters for conservative firms in stable environments. In dynamic environments, better performance in entrepreneurial firms is associated with all three approaches. Our findings highlight the importance of viewing strategy-making in small firms as multifaceted and context specific.
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Published online 1 November 2014

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2015 Collection
UQ Business School Publications
 
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Created: Tue, 04 Nov 2014, 13:37:02 EST by Karen Morgan on behalf of UQ Business School