Strategic configurations and performance: a study in micro and small business retailers

Abstract

A significant number of studies advocate the interdependence and complementarity between environmental, structural, strategic and personal variables in strategy formation. There are rare surveys that link these variables with small businesses performance. Combining several dimensions of these variables, this study aimed to verify which strategy configurations composed by the strategy development process, strategy content, entrepreneurial attitude, administrative mode and perceived environmental uncertainty were associated with the performance of small-sized clothing retail businesses. Data collected by survey with 228 companies and investigated by cluster analysis technique revealed two groups/clusters of companies with different configurations and performance levels. The results indicate the relationship of interdependence among variables in explaining the heterogeneity of organizational performance.