Developing a Normative Framework to Access Small-Firm Entry Strategies: A Resource-Based View

Authors

  • Lori C. Maruso Bradley University
  • Laurence G. Weinzimmer Bradley University

Abstract

The decision to pursue growth opportunities is often complex and multidimensional. Small businesses pursuing these opportunities must consider many important criteria, such as resource requisites, timing and how to enter new markets. Unfortunately, there are not many systemic tools available to make these difficult decisions. One area of literature that may assist small businesses in deciding how to enter new markets is the resource-based view of a firm. The resource-based view of a firm complements current strategic management thought by refocusing efforts on the long-term accumulations of assets rather than short-term resource allocations. We synthesize concepts from the resource-based view with the literature on alternative entry strategies to develop a normative framework for small-business decision makers. Specifically, from the resource-based view, we consider: I) different types of distinctive competencies - tangible/intangible resources owned by a firm and capabilities/processes used by a firm; 2) the degree to which these distinctive competencies can be sustained given certain environmental attributes, such as ease of imitation, abilities of competitors and industry dynamism. The interrelationships between distinctive competence and environmental sustainability are then used to identify appropriate strategies to enter new markets.

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Published

1999-01-17

Issue

Vol. 10 No. 1 (1999)

Section

Articles

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How to Cite

Developing a Normative Framework to Access Small-Firm Entry Strategies: A Resource-Based View. (1999). Journal of Small Business Strategy (archive Only), 10(1), 1-12. https://libjournals.mtsu.edu/index.php/jsbs/article/view/398