Corporate Entrepreneurship, Generic Competitive Strategies, and Firm Performance in Small and Medium-Sized Enterprises

Abstract

The strategy literature is replete with studies focusing on such strategic and cultural firm-level factors as entrepreneurship and differentiation. Research indicates that these factors are major determinants of superior firm performance in the long-term. Nonetheless, a majority of works in this area has focused on large-scale, multinational firms. Very little is known about the effects of entrepreneurship and differentiation on the financial performances of small and medium-size firms (SMEs). In the present study, I explore the effects of these three critical factors on firm performance using a sample of 70 SMEs drawn from the Turkish Machinery and Equipments Manufacturing Industry. The results suggest that corporate entrepreneurship and differentiation positively affect SME performance. Theoretical and managerial implications of the study findings are discussed. (C) 2015 The Authors. Published by Elsevier Ltd.