Small and medium enterprise strategy: a review of literature

Abstract

A literature review highlights the evolution of studies about the strategy of small and medium enterprises (SME) and points out some research needs. Studies on the traditional perspective of the subject (which is prescriptive and based on design, formal planning and positioning) are included as well as contributions and limitations. Also presented is the descriptive approach stressing contributions generated by studies about learning and strategic vision. These contributions are especially important because they balance and complement emphasis on linear and rational procedures of the traditional perspective, which is now dominant. Research opportunities were also cited for descriptive study of strategic processes, a focus on management teams was stressed and the new trend about strategy as a practice was also included.