Fit among Competitive Strategy, Administrative Mechanisms, and Performance: A Comparative Study of Small Firms in Mature and New Industries

Abstract

At least two different administrative mechanisms are available for the small business manager to develop and to pursue a competitive strategy. One refers to managerial skills needed to implement and to follow the competitive strategy chosen by the firm. The other refers to the design of organization structure—that is, how job tasks are divided, grouped, and coordinated. This paper argues that the fit among the competitive strategy followed by a firm, the utilization of the administrative mechanisms, and the performance of the firm is related to industry maturity.