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• W202401647 abstract "SMALL BUSINESS CONCEPTS AND THEIR RELATIONSHIP TO PERFORMANCE: A FIELD STUDY OF RETAIL SERVICE STATIONS Why are some firms successful and others not? This question has generated many academic theories and pragmatic prescriptions from experts in field. Academicians and practitioners alike generally acknowledge that specific strategies for success used in one firm can rarely be applied directly in other firms, even within same industry, because every firm is unique. Despite similar circumstances and environments, unique characteristics of individual firms make it difficult to develop prescriptions based on if-these-conditions, then-this-performance' analyses. At one extreme is case study; at other, use of a large heterogeneous data base such as that compiled by Profit Impact of Marketing Strategy (PIMS) study. Prescriptions derived from case studies can be too narrow; those derived from very large databases can be too generic. Hatten, Schendel, and Cooper addressed latter problem by stating emphasis on homogeneity (of sample) focuses on selection of more like' data--a step which reduces ability of researcher to generalize from results, but which increases confidence in estimated parameters.'1 Hofer goes further by proposing a theory that deals with homogeneity at business level, suggesting that development of business-level strategic theory requires a smaller, less complex set of variables, identification of lowest common denominator, and recognition of variables' impact on performance.2 In Hofer's view, such a theory will improve productivity in firms both large and small by improving their strategic choices. 1 K. J. Hatten, D. E. Schendel and A. C. Cooper, Heterogeneity Within an Industry: Firm Conduct in U.S. Brewing Industry, 1952-1971,' The Journal of Industrial Economics (December 1977), pp. 97-112. 2 C. W. Hofer, Toward a Contingency Theory of Business Strategy,' Academy of Management Journal (December 1977), pp. 784-810. Hofer's theory thus specifies a need to identify variables thought to be related to performance. Theory and practice meet when managers attempt to identify those variables that have greatest effect on performance for their own business and competitive environments. Several conceptual views, with a few selected bibliographic sources, are shown in table 1. Clearly, numerous other concepts could have been chosen, but those presented are based on experience of authors with retail service station businesses. The first set of variables thought to be related to business performance have to do with social and psychological characteristics of entrepreneur (e.g., age, education, experience, willingness to work, and ability to deal with consumers and employees). The entrepreneur's planning characteristics are also hypothesized to be related to success of organization. One example is time spent on planning prior to opening business, especially on functional areas such as financing, personnel, product line selection, and inventory management and control. Third, equity base of entrepreneur is also widely reported as a requisite for a successful small business. It is generally acknowledged that wide variation exists in type and amount of equity required for different businesses. However, most bankers follow rule the more you have, more likely you are to be successful,' because entrepreneur's staying power' is increased. A fourth set of variables related to performance is customer service characteristics. These variables are operationalized in this study as degree to which attendants check for complementary sales opportunities while servicing customers. A fifth concept frequently mentioned in connection with performance is control. …" @default.
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• W202401647 title "Small Business Concepts and Their Relationship to Performance: A Field Study of Retail Service Stations" @default.
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