Single Or Multiple Competitive Strategies For Small Businesses?

This study investigates the association between environmental uncertainty and planning, and the association between planning and the development of a discernible competitive strategy in small business firms. One research question was to determine if environmental uncertainty would be positively associated with planning and that planning would be positively associated with the development of a discernible competitive strategy. Small firms with more environmental uncertainty do plan more, especially operational planning. Resource constraints may prevent firms from engaging in strategic planning and force them to concentrate on operational planning. The sample firms use multiple competitive strategies rather than a particular strategy. Operational planning is positively correlated with efforts to improve firms' cost structure and product differentiation.