Premium
Stage of the organizational life cycle and competition as mediators of problem perception for small businesses
Author(s) -
Dodge H. Robert,
Fullerton Sam,
Robbins John E.
Publication year - 1994
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250150204
Subject(s) - competition (biology) , situational ethics , perception , marketing , business , sample (material) , empirical research , cash flow , industrial organization , economics , psychology , finance , social psychology , ecology , philosophy , chemistry , epistemology , chromatography , neuroscience , biology
An empirical study based upon a sample of 645 small businesses assesses the relationship that life cycle stage and level of competition exhibit with the problems perceived to constrain small business strategic planning. Problems have been identified as either internal (cash flow) or external (competition); they have further been classified as either situational or core problems. Among the most prevalent problems reported by decision makers are customer contact, market knowledge, marketing planning, location, and adequacy of capital. A total of 16 problem areas were identified. Traditional wisdom offers the scenario where problems faced will vary as the organization progresses through the life cycle. Much of this research refutes conventional wisdom in that level of competition was determined to have more of an impact on problem perception.