Abstract
Strategic management scholars generally view environmental scanning as a prerequisite for formulating effective business management strategies. Effective scanning of the environment is also seen by both large and small firms as necessary to the successful alignment of competitive strategies with environmental requirements and the achievement of successful firm performance. This study of industry-specific small manufacturing firms examines contingency theories that link environmental conditions (industry life cycle stages), competitive strategy, owner characteristics (functional experiences), scanning (frequency and scope of scanning), and firm performance. The integrated alignment model shown in Figure 1 incorporates: (1) external alignment (alignment between competitive strategies and an industry life cycle stage and its impact on firm performance); (2) integral alignment (alignment between competitive strategies and owner functional experience and their impact on firm performance); and (3) the impact on firm performance of frequency and scope of scanning on external alignment. The model is particularly useful to SMEs as it recognizes the main, often dominant role, that the owner or entrepreneur plays in small business operations.
Recommended Citation
Bolinao, Edgardo
(2004)
"External and Internal Alignment Influence on the Performance of SMEs: A Conceptual Framework,"
DLSU Business & Economics Review: Vol. 15:
No.
1, Article 5.
DOI: https://doi.org/10.59588/2243-786X.1667
Available at:
https://animorepository.dlsu.edu.ph/ber/vol15/iss1/5
