Relationships among Owner/Manager Personal Values, Business Strategies, and Enterprise Performance

Abstract

The aim of a research study was to test empirically the relationships among personal values of owner/managers, the strategies they adopt in operating their businesses, and the performance of their businesses. The research fills gaps in empirical research on strategy and strategic management in small firms. Unlike in existing research, a holistic approach to strategy is adopted. Data for the research were obtained from a mail survey of small furniture manufacturers. The sample was divided into clusters using Ward's minimum variance method. Differences among the clusters with respect to personal values, strategies, and performance were examined by multi-variate analyses of variance using deviation contrasts. It was found that certain profiles of personal values correspond with certain strategic orientations. In conformity with previous research, an association between business strategy and enterprise performance was confirmed. Recommendations are made in the areas of government policy delivery, and financial and management assistance to small firms.