Dennis P. Slevin

A Conceptual Model of Entrepreneurship as Firm Behavior

This article outlines a conceptual model of entrepreneurship as an organizational-level phenomenon. The model is intended to depict the organizational system elements that relate to entrepreneurial behavior among larger, established firms, but may also be applicable in varying degrees to many smaller firms. Entrepreneurship is described as a dimension of strategic posture represented by a firms risk-taking propensity, tendency to act in competitively aggressive, proactive manners, and reliance on frequent and extensive product innovation. The proposed model delineates the antecedents and consequences of an entrepreneurial posture as well as the variables that moderate the relationship between entrepreneurial posture and firm performance. The advantages of a firm-behavior perspective on entrepreneurship are discussed, as are the theoretical and managerial implications of such a perspective.

Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship

This research examined the effects of three strategic process variables—strategic decision–making participativeness, strategy formation mode, and strategic learning from failure—on the entrepreneurial orientation (EO)–firm sales growth rate relationship. Results based on a sample of 110 manufacturing firms indicated a positive effect of EO on sales growth rate. Moreover, the relationship between EO and sales growth rate was more positive among firms that employ autocratic decision making and that exhibit an emergent strategy formation process. Perceptions of proficiency at learning from strategic mistakes differentially affected the growth rates of firms at different ends of the EO continuum, but in manners inconsistent with the hypothesized relationship.

Critical factors in successful project implementation

This paper describes a process used to determine critical success factors that are felt to be predictive of successful project management. Full time managers who have had experience with projects were used to generate critical success factors that they felt to be crucial to successful project implementation. Ten factors were discovered that relate well to previous theoretical formulations in the literature. In addition, these ten factors have been linked together in an interdependent quasi-sequential framework. This research has provided the basis for developing a behavioral instrument to be used as a diagnostic for assessing the status of any project as determined by the ten factor model.

New venture strategic posture, structure, and performance: An industry life cycle analysis

Examines the relationship of industry life cycle stage to strategic posture and organization structures in addition to new venture financial performance. Four hypotheses are presented for consideration. Data collected for this research were obtained from 90 firms located in western Pennsylvania. Criteria for the selection of these firms included that they had been in business for ten years or less, they operate in emerging, growing or mature industries, and they are in the manufacturing or service sector. The measure of strategic posture focused on innovation, proactivity, and risk taking. The organization structure measurement was based on whether the firm possessed organic manners or mechanistic manners. Results show that those new ventures in the emerging industries have the most strategic postures. For these ventures in the emerging industries, the score for strategic posture and performance are more positively correlated than for those ventures in mature industries. These same ventures are shown to have the most organic organization structures. Overall, the analysis shows that the determinants of a firms performance change as the industry matures. (SRD)

Pioneers and Followers: Competitive Tactics, Environment, and Firm Growth

Market pioneering, as a form of corporate entrepreneurship, occurs when a firm is first to offer a new product on the market. The connection between market pioneering and firm performance has received little scholarly attention, and it focused primarily on (1) pioneering as an environment specific phenomenon and (2) firms performance, as affected by the fit between a firms pioneer/follower status and its competitive tactics. These phenomena are explored, emphasizing how they are manifested in different industry environments and what pioneers and followers do differently to promote their performance. A theory that describes how specific competitive tactics relate to firm sales growth rate among market pioneers and market followers is developed in two distinct environmental settings: hostile and benign. To test two proposed hypotheses, data is collected from senior managers of 103 independent, non-diversified manufacturing firms in 75 industries. The main analytical techniques used to assess the data are: cluster analysis, ANOVA, and correlational analysis. The findings suggest that market pioneers grow at the same rate as market followers. In hostile environments, pioneering may enable firms to break out of the dominant price-based mode of competition and grow despite charging high prices. Pioneers in hostile environments are better served than followers from a wide geographical distribution of their products. It is recommended that followers in hostile environments reduce their cost structures in order to maintain low price strategies. The results also suggest that, in benign environments, offering products with warranties superior to those of competitors may have positive effects on sales growth, more so among pioneers than followers. Using a large number of distribution channels benefits pioneers more than followers. The studys contribution to the pioneering literature and literature on coping with hostility is assessed. Common and effective bases for competition under various levels of environment hostility are theorized and empirically identified.(CBS)

Strategy Formation Patterns, Performance, and the Significance of Context

This paper describes a study of the effects of a company’s organization structure and environmental context on the relationship between that company’s dominant strategy formation pattern and its sales growth rate. Data collected, from 112 manufacturing firms operating in 78 industries were analyzed using moderated regression analysis. Results indicate that planned strategies are positively related to sales growth among firms with mechanistic structures and operating in hostile environments. Emergent strategies, on the other hand, are more positively related to sales growth among firms with organic structures and operating in benign environments. This paper concludes with a discussion of the implications and limitations of the research.

Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure–style fit ☆ ☆

Theory suggests that firms may derive the greatest benefits from an entrepreneurial orientation (EO) when they concurrently exhibit a high degree of strategic reactiveness. This paper explores the relationship between strategic reactiveness and EO as well as the moderating effect of structure-style fit on this relationship. Data collected from 110 manufacturing firms indicate that strategic reactiveness is not significantly related to EO. However, firms that exhibit theoretically-congruent alignments between their organization structures and top management decision-making styles tend to have positive strategic reactiveness-EO relationships.

Strategic decision making in an intuitive vs. technocratic mode: structural and environmental considerations

Abstract This study describes how the relationship between decision making style and firm performance is impacted by environmental technological sophistication and organization structure. Data collected from 96 manufacturing firms operating in 68 industries suggest that different combinations of style and structure predict firm financial performance in high-tech and low-tech environments. For example, in high-tech environments, sales growth rates were found to be higher when the technocracy dimension of decision making style and the organicity dimension of organization structure are negatively related. In low-tech environments, on the other hand, sales growth rates were found to be higher when these dimensions are positively related. Different results were observed when firm financial performance was operationalized in terms of return on sales (ROS).

Time, Growth, Complexity, and Transitions: Entrepreneurial Challenges for the Future

This paper presents a model that depicts the relationships between time, complexity, and transitions in the context of high-growth new ventures or stable ventures that have been forced into radical change as a consequence of environmental conditions. This model treats time as an unrelenting driving force that requires organizational change and adaptation. Key parameters affecting transitions needed by successful organizations are explored, as are the rates at which these changes are accomplished. It is proposed that managers should seek to minimize overall transition time by making any required quantum changes to the organizational system quickly. Such changes are argued to best ensure the rapid reestablishment of viable organizational gestaits.

Top Management Decision Sharing and Adherence to Plans

Abstract This article describes a study of the impact of top management decision sharing on the tendency of firms to adhere to their strategic plans, and the effects of strategic mission and environmental hostility on this decision sharing-adherence to plans relationship. As a secondary focus, the research also examined the impact of environmental hostility on the relationship between adherence to plans and firm financial performance. For the pur- poses of this study, adherence to plans was defined as an organizational outcome reflected in whether firms characteristically persist with predetermined and intended business plans or whether they regularly and extensively adjust their choice of business strategies and tactics in unplanned ways. Data were collected using questionnaires which were sent to the senior executives (presidents and/or CEOs) of 109 independent, nondiversified manufacturing firms. Approximately 20 industry segments are represented in the sample. Moderated regression analysis and subgroup analysis were used to analyze the data. Tests for monotonicity were conducted to clarify the regression analysis findings. Results indicate that firms with a participative or shared approach to top management decision making are no more likely to adhere to their plans than are firms which do not practice decision sharing. However, top management decision sharing was found to be positively related to adherence to plans among firms with “harvest” strategies and among firms operating in benign environments. Conversely, top management decision sharing was found to be negatively related to adherence to plans among firms with “build” strategies and among firms operating in hostile environments. Additional analyses revealed that adherence to plans is more positively related to financial performance among firms in hostile environments than among firms in more benign environments. The implications of these results and the limitations of the research are discussed.