There
is a body of literature which is suggestive that the strategy making
processes of SME firms are largely identifiable with the emergent
perspective. However, some scholars also
believe that a proportion of SME's utilise fully rational strategy
processes. Therefore, with the multitude of arguments surrounding this
topic, the
purpose of this study is to procure further insight into the
strategy-making processes of small and medium businesses. Additionally,
the research will examine the objectives of these organisations, and
reveal which strategy processes or specific elements can be associated
with attaining success. In order to satisfy this raison
d'être,
empirical research has been conducted, whereby a sample of UK SME
decision makers were telephone interviewed and answered a set of
questions regarding the strategy processes of their businesses. This
data has been presented and analysed throughout this dissertation
report, with conclusions and recommendations made for the leaders of
SME companies, and for further research to be taken forward from this
basis. As a result of the study, it is concluded that SMEs employ
various strategies based on circumstances that are individual to their
respective situations, and rarely can be seen to implement purely
rational strategies, but instead will utilise a collection of eclectic
strategy-making behaviours, which may include rational conduct. The
main types of objectives reported by participants were; growth;
product/service improvement; and raising brand awareness. In terms of
strategy processes that brought success to SME firms, behaviours that
were most commonly recorded encompassed; having defined objectives;
engaging elaborate situational analysis techniques; being adaptive to
the dynamic environment; comprehensive planning; and an incremental
approach to change. Rather notably, no a priori hypotheses were
rendered by the author, and as such the intention of this research is
not to evidence the validity of any perspective on this subject, but to
gain a purely impartial understanding of this phenomena within the
setting of small and medium sized firms, with a view towards imparting
new knowledge for the strategic management field of academia. To direct
the research with a view towards arriving at findings and conclusions
concordant with the purpose of this study, it is apposite to establish
a set of research questions, which are as follows;
- What strategy processes do SME firms utilise?
- What are the purposes of strategic actions taken by SME's?
- What strategy processes can be associated with success for SME organisation?