The pattern by which functional areas activities that comprise entrepreneurial strategy are organized will differ among businesses based on the immediate and wider environment in which they operate, that is, their industry and economic settings. We examine the interrelationships among functional area activities in their association with entrepreneurial strategy in a progressive textile manufacturing industry located in China. Using the Partial Least Square analytical technique and a sample of 248 Chinese small businesses, we find that networking features prominently alongside market-based activities of customer retention management and technology as determinants of entrepreneurial strategy. We also find that activities in these three functional areas mediate the association between other functional area activities such as HRM, operations, planning, and finance and entrepreneurial strategy. In a social-based system where relationships are important, the development and maintenance of network ties as well as attention to customers and innovation are critical to pursuit of entrepreneurial strategy.
57th International Council for Small Business (ICSB) World Conference: Leading From the Edge, Wellington, New Zealand 10-13 June 2012
Proceedings of the 57th International Council for Small Business World Conference / 29pp.