The differential impact of strategic aggressiveness on firm performance: The role of firm size

Strategic aggressiveness, including product and process innovation, is a central construct in both the strategic management and entrepreneurship literatures, including strategic positioning, innovation, and competitive dy-namics. While scholars have considered antecedents to strategic aggressiveness, this area of research lacks empirical studies assessing the impact of a firm's innovative efforts on organizational-level outcomes. Moreover, most empirical studies examining strategic aggressiveness focus on large organizations. This study draws on the resource-based view (RBV), institutional theory, and the corporate entrepreneurship literature to examine the extent to which strategic aggressiveness differentially impacts firm performance in large and small firms. Using a two-sample design comprising 773 firms from 74 industries, this study finds that the relationship between strategic aggressiveness and firm-level performance is stronger in small firms compared to large firms.