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Longevity in small business: The effect of maturity on strategic focus and business performance

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  • McDowell, William C.
  • Harris, Michael L.
  • Geho, Patrick R.

Abstract

Younger and older organizations approach strategic orientation differently. This research uses the theoretical approaches of organizational change, liability of newness, and liability of aging to examine younger and older organizations' approaches in the competitive arena with their varying competitive competencies. Results from a study of 141 small businesses suggest that an external strategic focus is associated with higher performance for younger firms, whereas an internal strategic focus is associated with higher performance for more mature firms.

Suggested Citation

  • McDowell, William C. & Harris, Michael L. & Geho, Patrick R., 2016. "Longevity in small business: The effect of maturity on strategic focus and business performance," Journal of Business Research, Elsevier, vol. 69(5), pages 1904-1908.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:5:p:1904-1908
    DOI: 10.1016/j.jbusres.2015.10.077
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    References listed on IDEAS

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    Cited by:

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    2. Parida, Vinit & George, Nerine Mary & Wincent, Joakim, 2018. "Strategic diagnosis of information processing structures and commercialization in new ventures," Journal of Business Research, Elsevier, vol. 85(C), pages 83-90.
    3. Shabir Ahmad & Rosmini Omar & Farzana Quoquab, 2019. "Corporate Sustainable Longevity: Scale Development and Validation," SAGE Open, , vol. 9(1), pages 21582440188, January.
    4. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.
    5. Dunne, Timothy C. & Clark, Brent B. & Berns, John P. & McDowell, William C., 2019. "The technology bias in entrepreneur-investor negotiations," Journal of Business Research, Elsevier, vol. 105(C), pages 258-269.
    6. José António Porfírio & Tiago Carrilho Mendes & J. Augusto Felício, 2018. "From entrepreneurship potential in culture and creative industries to economic development: the situation of UK and southern European countries," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 329-343, June.
    7. Mahto, Raj V. & Vora, Gautam & McDowell, William C. & Khanin, Dmitry, 2020. "Family member commitment, the opportunity costs of staying, and turnover intentions," Journal of Business Research, Elsevier, vol. 108(C), pages 9-19.
    8. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.

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