Strategic flexibility and growth of small and medium-sized enterprises: a study of enablers and barriers

Abstract

PurposeThis article investigates how strategic flexibility (SF) is achieved in small and medium-sized enterprises (SMEs), exploring whether SF contributes to firm growth and the associated enablers and barriers of SF.Design/methodology/approachTo offer a more nuanced view of SF in SMEs, a qualitative approach is applied. Researchers conducted and analyzed 91 interviews with owners and chief executive officers (CEOs) of SMEs exhibiting high growth and explored whether SF contributes to firm growth and the associated enablers and barriers of SF.FindingsThe results show a connection between SF and firm growth and confirm the importance of strategic orientation for SF in SMEs. Contrary to the existing literature, this study found a neutral impact of external networks and a positive impact of slack resources on SF. The lack of competent employees emerged as a considerable barrier to SF in SMEs.Research limitations/implicationsMore research focusing on the relationship between SF and firm growth is suggested, as well as further research about the relevance of slack resources and external networks as enablers of SF in SMEs.Practical implicationsMotivating and developing valuable employee competence are the key managerial implications. Additionally, business consultants and business developers in the public sector must find ways to increase business consultants and business developers' relevance to SMEs.Originality/valueThis article explores SF in SMEs, a context of disagreement in previous literature, and finds that SF contributes to SME growth. A qualitative approach is used, enrichening a field dominated by quantitative methodological choices.