Influence of Dimensions of Strategic Orientation on the Growth of Small Firms and Resources as Moderating Variables

Rakesh Gupta and Sriparna Basu

Management and Labour Studies, 2014, vol. 39, issue 4, 461-476

Abstract: The strategy–firm growth relationship has remained an important issue for researchers, and in spite of the growing volume of work in this area, little consensus has emerged on this issue. One of the reasons behind this lack of consensus is the question—how to conceptualize strategy? and in this, a lesser examined way has been to use the strategic orientation (SO) construct. As conceptualized by Venkatraman (1989), the SO construct comprises six dimensions, that of analysis, pro-activeness, riskiness, aggressiveness, futurity and defensiveness. The need to integrate SO and resource-based view (RBV) has seen increasing emphasis by researchers since the choice of resources constitutes an important precondition for firm growth and even more so in the case of small firms. This study empirically examines strategy–firm growth relationship through the lens of SO by studying the influence of individual SO dimensions on firm growth. In this study, we attempt to empirically examine and validate the nature of SO construct and how its individual dimensions influence small firm growth, how the dimensions interact with firm resources and what is the moderating influence of resources on the relationship between individual SO dimensions and small firm growth.

Keywords: Strategic orientation; firm growth; resources; small firms (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:manlab:v:39:y:2014:i:4:p:461-476

DOI: 10.1177/0258042X15578019

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