Strategic Decision making in Small and Medium-Sized Enterprises: Evidence from Australia

Xueli Hang, Calvin Wang

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Strategic decision-making (SDM) is fundamental to shaping the success of firms;however, the DM processes described in traditional DM theories and models haveonly limited applicability for our understanding of strategic decisions in smallenterprises. This is because most DM models have been developed from studies ofdecision processes in large firms. This paper investigates the SDM process in smalland medium-sized enterprises (SMEs). Data were gathered by conducting 13 casestudies of Australian SMEs. It was found that a two-staged SDM process was used bymany SME owners/managers and that rather than a problem-analysis-solutionprogression, SMEs engaged in a problem-solution-analysis process. SDM weaknessesidentified were that SME owners/managers had a narrow focus in developingpotential decision alternatives. Moreover, the quality in executing informationsearching and processing was quite moderate. Contributions of this study are that itprovides new insights into SDM practices in SMEs and extends previous research inthe area by providing a DM process model.
    Original languageEnglish
    Pages (from-to)91-110
    Number of pages20
    JournalInternational Journal of Business Studies
    Volume20
    Issue number1
    Publication statusPublished - Dec 2012

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