Strategic planning in growth oriented small firms

Purpose - The paper aims to examine the management practices of owner-managers of small businesses seeking to grow their firms. It seeks to better understand their strategic thinking in relation to internal and external environmental issues. Design/methodology/approach - A sample of 204 owner-managers who had indicated their desire for growth was surveyed using a questionnaire developed from earlier research that examined their strategic and operational behaviour. Follow-up discussions over their results were conducted face-to-face. Data were analysed using confirmatory factor analysis and discriminant analysis. Findings - Firms that possessed formal written business plans were found to be more likely to have stronger support network partnerships, formal quality assurance and the ability to lead change among employees. A relationship was found between an above average level of annual sales turnover and the personal vision of the owner-managers. Research limitations/implications - Although the sample was atypical, in that it was comprised of owner-managers who had a growth orientation, the study suggests that owner-managers who have a strong growth orientation are likely to have an enhanced sense of their strategic vision, and the ability to communicate this vision to their employees. Practical implications - The findings in this paper suggest that owner-managers from small firms should seek to benchmark their business against industry best practice, but that such benchmarking must be supported by a clear strategic vision and the capacity to communicate this vision to others, particularly employees. Originality/value - The literature relating to strategic thinking and behaviour within small firms remains underdeveloped, and this paper provides valuable insights into this area.