Research Thrusts in Small Firm Strategic Planning

Explores the research on strategic planning in small firms by analyzing previous studies. Four areas of research are identified for review: strategic planning practices, the value of strategic planning, specific features of the planning process, and the content of the strategies. The studies focusing on strategic planning practices found that in small firms this planning is not comprehensive, but rather it is reactive and unstructured. The reasons for this include limited time, difficulty in getting started, lack of specialized expertise, and lack of trust and openness. Those studies that considered the value of this planning found that strategic planning enhanced firm performance. In examining the features of the planning process in small firms, four characteristics are identified as being helpful. They are (1) short time horizon, (2) informal process, (3) systematic incorporation of several participants, and (4) reduction in initial objective setting. Three studies are discussed with respect to content of strategic planning. To conclude, further research topics are suggested for each of the areas of research discussed. (SRD)