Growth drivers in low technology micro firms

Abstract

This study examines the relationship among customer orientation, innovativeness, tenacity, risk taking, growth willingness and growth in low-technology micro firms. A survey was sent to 3,000 CEOs in the Norwegian firewood industry, and 514 usable responses were received. The findings indicate that micro firms differ in how they configure and exploit their strategic resources. Furthermore, the results show that customer orientation, innovativeness and tenacity have a significant effect on growth in micro firms. In contrast with earlier studies, we find no support for interaction effects among innovativeness, tenacity, risk taking and customer orientation. Managers should increase their focus on customer needs with regard to the manner in which goods are delivered.