Authors: Gadaf Rexhepi; Stjepan Srhoj
Addresses: South East European University, Ilindenska bb, Macedonia ' South East European Centre for Entrepreneurial Learning (SEECEL), Zagreb, Selska 217/IV, Croatia
Abstract: Small and medium enterprises (SMEs) play a crucial role in the economy because of the job generation and their innovation potential. Building on the resource-based view of the firm; this paper sets to deepen the understanding on how entrepreneurs select strategies in the growth phase of the enterprise life-cycle. The paper first provides a theoretical background and then examines the frequency of changes in strategy-making of SMEs located in Croatia and Macedonia (n = 130). Findings point towards hybrid strategy as the most frequently used, followed by cost leadership and differentiation strategy. Most of the surveyed enterprises constantly make incremental changes to the strategy. Future research papers are encouraged to use qualitative research methods and try to explore the nature of the informal strategy making changes in the context of SMEs.
Keywords: strategy; growth phase; small and medium enterprises; SMEs; strategy regeneration; competitive advantage.
World Review of Entrepreneurship, Management and Sustainable Development, 2018 Vol.14 No.3, pp.333 - 347
Received: 15 Jun 2015
Accepted: 20 Jun 2015
Published online: 14 May 2018 *