Managerial Behavior, Entrepreneurial Style, and Small Firm Performance

Eugene Sadler–smith, Yve Hampson, Ian Chaston and Beryl Badger

Journal of Small Business Management, 2003, vol. 41, issue 1, 47-67

Abstract: Considerable effort has been devoted to identifying the general characteristics of entrepreneur; however, much of this has been conducted from a trait–based rather than from a behavioral perspective. In this study of small firms in the United Kingdom, we explored the relationships among managerial behaviors (based upon a competence model), entrepreneurial style (based on Covin and Slevin's theory), and firm type (in terms of sales growth performance). Principal components analysis of a management competence inventory identified six broad categories of managerial behavior. Regressing a measure of entrepreneurial style on these six behaviors suggested that managing culture and managing vision are related to an entrepreneurial style, while managing performance is related to a nonentrepreneurial style. Entrepreneurial style—but not managerial behavior—was associated positively with the probability that a firm would be a high–growth type. The results are discussed from the perspective of a model of small firm management that posits separate entrepreneurial, nonentrepreneurial, and generic management behaviors derived from a global competence space.

Date: 2003
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DOI: 10.1111/1540-627X.00066

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