Entrepreneurial strategy: The relationship between firm size and levels of innovation and risk in small businesses


  • Shaike Marom Hiram College
  • Robert N Lussier Springfield College
  • Matthew Sonfield Hofstra University


The expression that “Innovation is the central issue in economic prosperity” (Michael Porter), encapsulates the importance of entrepreneurial strategy, which has been linked to firm growth, particularly through its dimensions of innovation and risk. Firm growth will increase its size, which in turn may affect the entrepreneurial strategy; a research area that has been under-studied. This research contributes to the literature by exploring the relationship between firm size and the entrepreneurial strategy. Findings support the hypothesis that in larger firms the owners pursue a strategy that tends to be higher in innovation but with reduced risk, while in smaller firms the owners pursue a strategy that is higher in risk but lower in innovation. Additionally, it was found that the firms’ Entrepreneurial Orientation (EO) is moderated by the organizational size; which supports the notion of bi-directional relationship between EO and organization attributes


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Author Biographies

Shaike Marom, Hiram College

Dr. Shaike Marom is a professor of management at the Scarborough School of Business & Communication at Hiram College. He is an expert on entrepreneurship, innovation management and sustainability. Having extensive experience in corporate management and international business, he is called upon regularly to serve as consultant for the private sector with emphasize on technology and start-up endeavours.

Robert N Lussier, Springfield College

Dr. Robert N. Lussier is a Springfield College professor and author of 444+ publications with 6,000+ Google Scholar Citations including ET&P, FBR, JME, JSBED, JSBM. JSBS. He is an SBI Fellow and member of the JSBS  Editorial Review Board. Over one million people globally have used his 12 management subject textbooks, earning him an unsurpassed national and international reputation as an author and Publish Don't Perish keynote speaker www.publishdonotperish.com  

Matthew Sonfield, Hofstra University

Dr. Matthew Sonfield holds the rank of Distinguished Professor Emeritus in the Zarb School of Business at Hofstra University.  He earned degrees from Cornell, Harvard, and New York Universities, and has published articles in a wide variety of academic business journals.



How to Cite

Marom, S., Lussier, R. N., & Sonfield, M. (2019). Entrepreneurial strategy: The relationship between firm size and levels of innovation and risk in small businesses. Journal of Small Business Strategy, 29(3), 33-45. Retrieved from https://libjournals.mtsu.edu/index.php/jsbs/article/view/1332