IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v15y2000i3p165-81.html
   My bibliography  Save this article

Strategies, Uncertainty and Performance of Small Business Startups

Author

Listed:
  • van Gelderen, Marco
  • Frese, Michael
  • Thurik, Roy

Abstract

Personal strategies of owners/founders of small business startups are related to performance and to environmental uncertainty. This is done using a longitudinal data set. Personal strategies are operationalized by a behavioral measure of the manners in which small business founders deal with situations. The results suggest a dynamic process between strategy and performance. Business owners that perform poorly employ a Reactive Strategy, with poor performance leading to increased use of reactive behavior. High performing business owners start out focussing on the most crucial issues (Critical Point Strategy), with high performance leading to a more top-down (Complete Planning) approach. These relations are controlled for characteristics of the environment of the firm. Strategy use is dependent upon the type and level of environmental uncertainty. Complete Planning strategy is used less frequently in a fast changing environment and more often in a complex environment. Use of Opportunistic Strategy is negatively related to the complexity of the environment, while the Reactive Strategy is used more frequently in a non-munificent environment. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • van Gelderen, Marco & Frese, Michael & Thurik, Roy, 2000. "Strategies, Uncertainty and Performance of Small Business Startups," Small Business Economics, Springer, vol. 15(3), pages 165-181.
    • Handle: RePEc:kap:sbusec:v:15:y:2000:i:3:p:165-81
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0921-898X/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard L Daft & Juhani Sormunen & Don Parks, 1988. "Chief executive scanning, environmental characteristics, and company performance: An empirical study," Strategic Management Journal, Wiley Blackwell, vol. 9(2), pages 123-139, March.
    2. David B. Audretsch & A. Roy Thurik, 2000. "Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 17-34.
    3. Gregory G. Dess & G. T. Lumpkin & J. G. Covin, 1997. "Entrepreneurial strategy making and firm performance: tests of contingency and configurational models," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 677-695, October.
    4. Lever, M.H.C. & Nieuwenhuijsen, H.R. & van Stel, A.J., 1998. "The Degree of Collusion in Construction," Papers 9810/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    5. Charles R. Schwenk & Charles B. Shrader, 1993. "Effects of Formal Strategic Planning on Financial Performance in Small Firms: A Meta-Analysis," Entrepreneurship Theory and Practice, , vol. 17(3), pages 53-64, April.
    6. Audretsch, D-B & Menkveld, A-J & Thurik, A-R, 1996. "The Decision Between Internal and External R&D," Papers 9603/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    7. Audretsch, David B & Thurik, A R Roy, 1997. "Sources of Growth: the Entrepreneurial versus the Managed Economy," CEPR Discussion Papers 1710, C.E.P.R. Discussion Papers.
    8. Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2000. "Business Ownership and Economic Growth in 23 OECD Countries," Tinbergen Institute Discussion Papers 00-001/3, Tinbergen Institute.
    9. Wildeman, R.E & Hofstede, G. & Noorderhaven, N.G. & Thurik, A.R. & Verhorven, W.H.J. & Wennekers, A.R.M., 1998. "Self-Employment in 23 OECD Countries," Papers 9811/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    10. Audretsch, D.B. & Houweling, P. & Thurik, A.R., 1998. "Firm Failure and Industrial Dynamics in the Netherlands," Papers 9802/a, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    11. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    12. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    13. Audretsch, D.B. & Thurik, A.R., 1998. "The Knowledge Society, Entrepreneurship and Unemployment," Papers 9801/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    14. David Audretsch & Roy Thurik, 0000. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David B. Audretsch & Martin A. Carree & Adriaan J. Van Stel & A. Roy Thurik, 2002. "Impeded Industrial Restructuring: The Growth Penalty," Kyklos, Wiley Blackwell, vol. 55(1), pages 81-98.
    2. Milo Bianchi & Magnus Henrekson, 2005. "Is Neoclassical Economics still Entrepreneurless?," Kyklos, Wiley Blackwell, vol. 58(3), pages 353-377, July.
    3. Bogdan Ioane MARCULESCU & Laura BRANCU & Diana Claudia SALA, 2021. "Economic Materialism And Entrepreneurial Intention In Romanian Students," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 46-70, May.
    4. Martin Carree & André van Stel & Roy Thurik & Sander Wennekers, 2000. "Business Ownership and Economic Growth in 23 OECD Countries," Tinbergen Institute Discussion Papers 00-001/3, Tinbergen Institute.
    5. Verheul, I. & Thurik, A.R., 2000. "Start-Up Capital," ERIM Report Series Research in Management ERS-2000-07-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    6. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    7. Grilo, I. & Thurik, A.R., 2004. "Determinants Of Entrepreneurship In Europe," ERIM Report Series Research in Management ERS-2004-106-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Lasierra, Jose Manuel, 2018. "Self-Employment and the Economic Cycle in Spain," MPRA Paper 89593, University Library of Munich, Germany.
    9. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    10. Mark Sanders, 2007. "Scientific Paradigms, Entrepreneurial Opportunities and Cycles in Economic Growth," Small Business Economics, Springer, vol. 28(4), pages 339-354, April.
    11. Massón Guerra, José Luis, 2007. "El capital empresarial como determinante de la productividad y el crecimiento en España [The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth]," MPRA Paper 4073, University Library of Munich, Germany.
    12. Niels G. Noorderhaven & Sander Wennekers & Geert Hofstede & A. Roy Thurik & Ralph E. Wildeman, 1999. "Self-Employment out of Dissatisfaction: An International Study," Tinbergen Institute Discussion Papers 99-089/3, Tinbergen Institute.
    13. Joris Meijaard, 2001. "Making sense of the New Economy," Scales Research Reports H200009, EIM Business and Policy Research.
    14. Roy Thurik & Sander Wennekers & Ingrid Verheul & David Audretsch, 2001. "An eclectic theory of entrepreneurship: policies, institutions and culture," Scales Research Reports H200012, EIM Business and Policy Research.
    15. Sander Wennekers & Roy Thurik & André Stel & Niels Noorderhaven, 2010. "Uncertainty Avoidance and the Rate of Business Ownership Across 21 OECD Countries, 1976–2004," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 271-299, Springer.
    16. Niklas Elert & Magnus Henrekson, 2019. "The collaborative innovation bloc: A new mission for Austrian economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 295-320, December.
    17. Magnus Henrekson & Jesper Roine, 2007. "Promoting Entrepreneurship in the Welfare State," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 5, Edward Elgar Publishing.
    18. Marco van Gelderen & Marco van Gelderen & Niels Bosma & Niels Bosma & Roy Thurik & Roy Thurik, 2001. "Setting up a business in the Netherlands," Scales Research Reports H200013, EIM Business and Policy Research.
    19. Magnus Henrekson, 2005. "Entrepreneurship: a weak link in the welfare state?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 437-467, June.
    20. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.

    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:15:y:2000:i:3:p:165-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.