Towards a new model of success and performance in SMEs

Purpose - The purpose of this study is to develop an academic theoretical framework relating success and performance in small and medium-sized enterprises (SMEs) so that future research could be carried out to identify the critical success factors (CSFs) for SMEs.Design methodology approach - The research used a literature review, in-depth interviews with owner-managers of SMEs and a knowledge elicitation exercise was carried out based on the experience of the researchers and on the interviews with owner-managers.Findings - A new academic conceptual model was developed linking CSFs, definitions of success and performance to the characteristics of the business environment, the characteristics of the owner-manager and the characteristics of the business. The relatively new idea that feedback on performance in the model could modify the strategic tactical behaviour of the SME owner-managers was introduced.Research limitations implications - The many research problems posed by performance studies aimed at establishing CSFs in SMEs are still present in the current framework but a longitudinal research methodology could be employed to avoid these problems in future research.Practical implications - The theoretical framework offers a different way forward for both practitioners and business advisors in thinking about those factors that may be critical for success in SMEs.Originality value - This is a new framework that can be used to inform thinking and research design in the area of performance measurement and success.