Output flexibility - a competitive advantage for small firms

Article Abstract:

The output flexibility of small business was researched in order to elucidate its effect on competitiveness. Three theoretical outlooks were analyzed: that small firms are more inclined to fluctuate output; that small firms can increase profits by trading off inefficiencies in trade cost with volume flexibility; and that output flexibility gives more of a competitive edge in capital intensive and volatile industries. Data from a sample of over 3,000 firms from 83 industries was analyzed. Research results support the hypotheses that there is a trade-off between a business' size and its flexibility, that flexibility gives small businesses a competitive advantage, and that flexible output gives a competitive advantage to firms in low-profit, volatile industries facing large fluctuations in demand.

Manufacturing industry, Manufacturing industries, Management research

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Determinants of firm performance: the relative importance of economic and organizational factors

Article Abstract:

Firm profitability in 60 Fortune 100 businesses using three models is examined to indicate the crucial factors connected to firm performance. Results generated from analysis of an economic-based model, an organizational-based model, and a model integrating both approaches reveals the importance and independence of both organizational and economic elements in interpreting firm profitability. Results also show that industry selection and positioning within an industry are significant to performance. Additionally, results show that sound administrative methods are very important in firm performance.

Profit, Profits, Corporations, Organizational behavior

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Competitive strategy under uncertainty

Article Abstract:

A balance is needed between early and late acting once uncertainty is resolved in competitive strategy. A 'trade-off' also exists between applying resources on one scenario and spreading them on several ones in order to keep flexibility. Analysis is offered of both trade-offs, acknowledging the nature of uncertainty, industry economics, competition intensity, and the position of a company relative to its competition.

Business planning, Planning, Uncertainty

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