EXAMINATION OF THE IMPACT OF STRATEGY ORIENTATION ON THE PERFORMANCE OF SMEs
AN EMPIRICAL STUDY
Submitted by:
RASHMI RAVIKUMAR
Acknowledgements
I would like to thank Prof. V.K Murthi for his time and invaluable help. Without his guidance and insights, I would never have been able to proceed with this study.
I would like to thank Prof. Venkat Krishnan for his constant guidance at all stages.
I would also like to thank my husband Mr. Rajesh Rao for his patience and without whom the data collection would have been impossible. Most importantly I would like to thank Ms. Priya Raghavan, Ms. Nandhini Rangan and Mr. Srivas Ramgopal for being ever supportive.
Abstract
The aim of this paper is to conduct an empirical study on the impact of strategy orientation on the performance of SMEs. Strategic orientation means a focal mission and commitment to a set of related capabilities. Firms are said to do well only if they know on what basis they wish to compete, and then build in a continuous, cumulative fashion a set of inimitable competencies (Andrews, 1971;Wernerfelt, 1984; Hamel and Prahalad, 1994; Porter, 1996).In this study strategic orientation is studied in the framework of market orientation; especially product innovation, which seem to be a distinct character associated with small busiesses(According to Miles and Snow typology classifications small businesses typically fall into the group called the “prospectors”).Since a small firm is run and controlled under the direct supervision of the owner. The owners’ decision comprehensiveness/innovativeness/influence will have a positive effect on the performance of the firm as well. The owner's innovativeness will thus permeate all variables in the ...