The relationship between a comprehensive strategic approach and small business performance
Leaders of small firms often lack support staff to whom they can delegate managerial tasks. Related to the small business management paradigm, these leaders need insight into what management practices to employ as they simultaneously balance operations, administration, and human resource duties. Strategic planning has been the focus of much scholarly attention. However, the effect of strategic planning on small business performance is unclear. We attempt to provide clarity by establishing a higher-order component construct, comprehensive strategic approach, which includes three related management practices: goal setting, strategic planning, and financial ratio analysis. We find evidence that a comprehensive strategic approach enhances small business performance.