Developing a Normative Framework to Access Small-Firm Entry Strategies: A Resource-Based View

The decision to pursue growth opportunities is often complex and multidimensional. Small businesses pursuing these opportunities must consider many important criteria, such as resource requisites, timing and how to enter new markets. Unfortunately, there are not many systemic tools available to make these difficult decisions. One area of literature that may assist small businesses in deciding how to enter new markets is the resource-based view of a firm. The resource-based view of a firm complements current strategic management thought by refocusing efforts on the long-term accumulations of assets rather than short-term resource allocations. We synthesize concepts from the resource-based view with the literature on alternative entry strategies to develop a normative framework for small-business decision makers. Specifically, from the resource-based view, we consider: I) different types of distinctive competencies - tangible/intangible resources owned by a firm and capabilities/processes used by a firm; 2) the degree to which these distinctive competencies can be sustained given certain environmental attributes, such as ease of imitation, abilities of competitors and industry dynamism. The interrelationships between distinctive competence and environmental sustainability are then used to identify appropriate strategies to enter new markets

The Search for Opportunities by Small Business Owners

This paper identifies specific factors that cause some small business owners to search for new opportunities while other owners choose to remain with the status quo. Using concepts drawn from the literatures in decision making. entrepreneurship, organization theory, and strategy, we develop a model of factors that stimulate opportunity identification. Determinants include characteristics of the industry environment, intentions and personalities of small business owners, and strategic planning activities. The model is then applied to two actual small businesses in order to illustrate its potential usefulness. Implications for small business managers,  consultants,  and business researchers  are discussed

Small Business Entry Strategies: An Integration of Technological Discontinuity and Industry Growth Potential

Technological innovations often create growth and profit opportunities for new firms. Entrepreneurs may find it beneficial to take advantage of these opportunities. A critical decision facing any new venture is selecting a strategy to effectively enter a market or industry. To assist the decision maker in this endeavor, a normative model is offered to help entrepreneurs position themselves to take advantage of technological innovation. Specifically, the model develops four different strategic choices. These strategic choices are contingent on the magnitude of techno­ logical change and the growth potential of the industry