A Strategic process and small venture growth: The moderating role of environmental scanning and owner-CEO

Abstract

The strategic processes that were followed by small firms are the main contributors to the growth of these firms. Therefore, the aim of this study is to investigate the contribution of the strategic process to the growth of ventures by taking environmental-scanning and owner leadership as a moderator. In order to achieve this objective, a sample of 210 firms grown to emerging medium enterprises has been selected and used to obtain primary data. The findings of the study show that the growth of ventures and strategic process practices among these firms are moderate. The strategic processes employed were the main contributors to the growth of ventures. When trends and events in the environment are understood, the strategic process dimensions that include participating in strategic decision-making, modes of forming a strategy, and learning from mistakes strategically will be intensified towards influencing the venture’s growth. Venture growth is better among the firms who were led by owners themselves and learn from their failures. As firms scan their environment, they tend to exploit and practice suitable strategies that contribute to the growth of the ventures. As a result, the owners/managers of these small ventures should advance their current practices of strategic processes by encouraging workers to participate in decision making, developing effective planning, and learning from their mistakes by scanning both the external and internal environments.