Entrepreneurship and the concept of fit: A model and empirical tests

Entrepreneurship and the concept of fit: A model and empirical tests This paper reports the results of a study designed to investigate entrepreneurship and ‘fit’ in small and medium sized high technology manufacturing firms. A normative model of fit has been developed, which including the variables of entrepreneurial style, organizational structure, and mission strategy, determines a measure of the firm's fit with its environment. The normative model of fit proposed here is based on variables and relationships found to be important in previous empirical studies. Data on environmental turbulence, entrepreneurial style, organization structure, mission strategy, and financial performance were collected from 82 manufacturing firms. A measure of fit was calculated for each firm. Findings indicate that performance among firms was positively related to the measurement of fit. In short, fit is an important construct for firm success. Implications include prescriptive guidance to assist practitioners in diagnosing and correcting ‘misfit’ for individual firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Entrepreneurship and the concept of fit: A model and empirical tests

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Publisher
Wiley
Copyright
Copyright © 1993 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250140205
Publisher site
See Article on Publisher Site

Abstract

This paper reports the results of a study designed to investigate entrepreneurship and ‘fit’ in small and medium sized high technology manufacturing firms. A normative model of fit has been developed, which including the variables of entrepreneurial style, organizational structure, and mission strategy, determines a measure of the firm's fit with its environment. The normative model of fit proposed here is based on variables and relationships found to be important in previous empirical studies. Data on environmental turbulence, entrepreneurial style, organization structure, mission strategy, and financial performance were collected from 82 manufacturing firms. A measure of fit was calculated for each firm. Findings indicate that performance among firms was positively related to the measurement of fit. In short, fit is an important construct for firm success. Implications include prescriptive guidance to assist practitioners in diagnosing and correcting ‘misfit’ for individual firms.

Journal

Strategic Management JournalWiley

Published: Feb 1, 1993

References

  • The influence of organization structure on the utility of an entrepreneurial top management style
    Covin, Covin; Slevin, Slevin
  • Organizational fit and acquisition performance: Effects of post‐acquisition integration
    Datta, Datta
  • Strategy follows structure!
    Hall, Hall; Saias, Saias
  • Determinants of firm performance: The relative importance of economic and organizational factors
    Hansen, Hansen; Wernerfelt, Wernerfelt
  • Innovation in conservative and entrepreneurial firms: Two models of strategic momentum
    Miller, Miller; Friesen, Friesen
  • Organizational alignment as competitive advantage
    Powell, Powell
  • Corporate acquisition strategies and economic performance
    Singh, Singh; Montgomery, Montgomery

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