Abstract
The purpose of this paper is to present an adaptive performance model using backpropagation neural network (BPNN) in scrutinizing impact of strategic factors on firm performance, especially within high-tech SMEs in U.S. The novel design approach introduced in this paper segments SMEs into high and low performance groups and captures different impact patterns of strategic variables (e.g. R&D). This paper explores both explanatory and predictive capacity of a neural network and extends its application to the measurement of relative efficiency and subsequent prediction of potential improvement. This paper demonstrates effectiveness of a neural network for SME analysis and its potential advancement toward performance modeling as an adaptive decision support tool.
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