Small Businesses as Captive Companies: Business Strategy and Firm Performance Among U.S. Auto Suppliers


  • Aaron A. Buchko Bradley University


Small business firms frequently are in the position of a "captive" company--a firm  whose operations are undertaken for the benefit of some more powerful organization. This places unique demands on the planning and strategy activity. An empirical study of business strategy and firm performance in a sample of small auto supplier firms (N = 67) found  significant differences in the business strategies  of  high-performing firms   when  compared  to the  business strategies  of low-performing  firms.   The  nature  of  these  differences  is presented ,  and  implications for  the formulation  of effective business strategies in captive small businesses are discussed.


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