Environmental and Managerial Antecedents of Strategic Posture and Performance of Small Firms: An Empirical Analysis

Abstract

A number of theories postulate the influence of industry factors and various forms of organizational capital on the strategies and performance of small firms. This study is an empirical test of such assertion by examining how industry and firm-related factors as well as managerial attributes relate to the firms’ exercise of strategic posture, and how the latter relates to the firm’s overall organizational performance. By integrating the views offered by the resource-based view (RBV) of the firm, contingency theory, industrial organization paradigm, and the upper echelons view of organizational strategy, the study revealed that industry factors such as competitive intensity and technological sophistication, and managerial factor - age of the owner/manager of the firm - significantly relate to an entrepreneurial strategic posture as well as to the firms’ overall performance. The study also highlights the mediating role of strategic posture in the hypothesized relationships.