Strategic Planning and Firm Performance: A Comparison across Countries and Sectors

The level of uncertainty and pace of change in business environments is posing challenges for firms. The developed economies have transformed from the industrial era to the knowledge and service era, while emerging economies thrive with industrial growth. This poses the question of what the key drivers of corporate success are and how far they are different from the old earnings logic. We will focus on one special value-creating resource or capability, namely strategic planning. We empirically examine the performance consequences of strategic planning to determine in what contexts it pays off particularly well. We use data from a large-scale survey of about 2,500 organisations from developed and emerging countries. The survey responses represent a variety of industries from manufacturing to services. The analysis is based on general linear models, and the findings show significant performance differences across countries, industries, and firm size - with strategic planning explaining performance much better than any contextual characteristics

Entrepreneurial orientation in firms with a social mission - a mixed-methods approach

This study explores entrepreneurial orientation (EO) in Finnish social enterprises in a social context using a mixed-methods approach. As a result, we propose that the generic dimensions of EO apply in a social context with minor refinements but suggest an additional dimension of persistence. The social enterprises take substantial financial risks although carefully avoid anything that may jeopardise the firms’ social impact. They exhibit highly innovative behaviour when developing new ways to serve the social purpose as well as when finding new ways to generate income. Furthermore, these enterprises exhibit remarkable persistence in adhering to a course of action despite their experienced difficulties

Configurational Paths to Social Performance in SMEs: The Interplay of Innovation, Sustainability, Resources and Achievement Motivation

In today’s world of increasing ecological, social and economic issues, the question as to how businesses can become a vehicle towards more sustainable development has become more relevant than ever. Crucial to a more sustainable economy is the successful implementation of sustainable practices through entrepreneurial activities. Although there are attempts to describe how sustainable entrepreneurs differentiate themselves, the question of how some entrepreneurs manage to successfully create a sustainable enterprise, while others do not, remains unanswered. The aim of this research is to find causal patterns that explain the success of sustainable entrepreneurs, using their social performance as a measure. Using a configuration approach-based fuzzy set qualitative comparative analysis (fsQCA) of 598 Austrian small- and medium-sized enterprises (SMEs), we could identify four different combinations of the interconnected variables of innovation orientation, environmental sustainability, resource leveraging and achievement motivation, which all lead to social performance depending on the respective networking intensity of the firms. The only variable that is included in all combinations is environmental sustainability, thus indicating it may be either crucial to or a prerequisite for achieving social performance in SMEs