Strategic management practices of small firms in emerging industries : a study of health biotechnology firms

Abstract

Brouthers, Andriessen,&Nicolaes (1998, p. 130) state that “…little research exists that examines strategic management practices in small firms”. The purpose of this study is to explore the strategic management practices of small firms operating in emerging industries. The study further goes on to compare these practices in the context of the practices documented in the theory. The research utilized qualitative data collected from a non-probability sample of firms in the health biotechnology industry. The case study methodology, using indepth interviews was used to collect data from senior executives of two health biotechnology firms. The study found that the strategic management practices of small firms in emerging industries support and predominantly subscribe to and the planning, rational and entrepreneurial schools of thought. The recommendation from the findings of this study is that small firms in emerging industries, such as health biotechnology firms studied, need to engage in strategic management processes that are more formal but that also consider the influence of the entrepreneur as the driver of strategy. Future research could include an in-depth and wider study of the most appropriate strategy practices for small firms in emerging industries. Copyright