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