Turnaround Strategies For Declining Small Business: The Effects Of Performance And Resources
AbstractThis study explores the choice between growth and retrenchment as turnaround strategies for small business owners experiencing decline in performance. Current theory related to organizational failure describes deterministic and voluntaristic perspectives of strategic choice, but they have not been applied to small business decline. Using the voluntaristic perspective the proposed model suggests choice is contingent on the effects the owner/manager's perceptions of performance and resource availability during a period of decline. Survey data from small government contractors in the U.S. Small Business Administration database are used to test the model. The results indicate these contractors choose growth strategy when their perceptions of resource availability and past financial performance are both high and when both are low, indicating small business owner/managers remain aggressive when faced with adverse conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.
Volume (Year): 10 (2005)
Issue (Month): 03 ()
Contact details of provider:
Web page: http://www.worldscinet.com/jde/jde.shtml
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mihaela Onofrei & Dan Lupu, 2012. "The Management of Economic Decline and the Dimension of Organizational Change," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 470-484, June.
- Balcaen, S. & Manigart, S. & Ooghe, H., 2009.
"From Distress to exit: determinants of the time to exit,"
Vlerick Leuven Gent Management School Working Paper Series
2009-12, Vlerick Leuven Gent Management School.
- Sofie Balcaen & Sophie Manigart & Hubert Ooghe, 2011. "From distress to exit: determinants of the time to exit," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 407-446, August.
- S. Balcaen & S. Manigart & H. Ooghe, 2009. "From distress to exit: determinants of the time to exit," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/588, Ghent University, Faculty of Economics and Business Administration.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.