The Configuration Approach to the Ideal Management of Small and Medium-Sized Enterprises

 The Construction Approach to the Strategic Supervision of Small and Medium-Sized Enterprises Essay

The Settings Approach to the Strategic Management of Small and Medium-Sized Enterprises Josef Mugler

Section of Small enterprise Management and Entrepreneurship, Vienna University of Economics and Business Operations, Augasse 2-6, A-1090 Vienna, Austria Subjective: The construction approach to the strategic management of small , mediumsized corporations (SMEs)

is presented since an

option to the traditional




economics. The configuration strategy

combines the standard



with a resource-based view of strategic

managing theory, energizes the account

of interdependencies instead of

unidirectional dependencies, and takes



the timing of strategies within the


your life cycle. The configuration approach thus

provides a suitable frame of research for

SME and entrepreneurship research




education and training in gumptiouspioneering, up-and-coming behavior.

Keywords: configuration approach, strategic management, small , medium-sized enterprises (SMEs), entrepreneurship 1 The battle of Tactical Management in SMEs

The SME sector shows steadily more and more enterprises and employees in the traditional market economies of Europe for several years, and in the brand new market economies since the land of the Iron Curtain in 1989. In most regions of The european union, however , entrepreneurs, representatives of small business associations and politicians are worrying more regarding threats than about opportunities. Indeed, there has always been turbulence within the sector: Entry and exit costs (measured regarding stock turnover) are around 10% on average. Hardly any fast-growing online businesses and numerous selfemployed entrepreneurs

and micro-enterprises

have supplied


fresh jobs,



and streamlining

possess reduced the


of jobs in



Industries which supplied secure


for decades in classic

one particular


industry economies (small trade, crafts, agriculture) have recently declined, whereas new types of businesses and entrepreneurs have got appeared in the course of the development of new technologies and new markets. Economists are often urged to forecast which usually sectors or types of SMEs will probably be profitable later on, which ones is going to at least survive, and which ones will be replaced simply by large supply chains, simply by more intense marketing principles, or by new IT-based selling. Which usually factors can influence achievement for SMEs in the many years? Both internet marketers and politicians hope for a fairly easy and reliable answer. Nevertheless , such an response would possibly be wrong or extremely abstract, giving space for any wide range of opportunities. Neither option is particularly helpful to the type of businessman/woman who desires or even demands concrete tested recipes for alignment. However , business owners who basically want to follow along with recipes will be, by explanation, not true business people. Even imitators of rewarding business ideas usually do not simply copy well-proven quality recipes but transfer the primary of this kind of ideas in to new environments or adjust them to several requirements. One easy success element which has proven itself in theory as well as empirically is a significant market share. three or more

As a result, firms should strive for a monopolistic market position. SMEs, however , in many cases are said to be as well small for such positions in comparatively free, wide open, and in some cases already globalized marketplaces. Consequently, SMEs would need comparatively small industry niches if they planned to attain a big market share. Nevertheless , many of them have problems with a lack of specialised technologies, of human resources, and of knowledge means approach particular markets. Supervision schools and gurus allow us a number of strategic actions advised to SMEs and large businesses alike. some

The target selection of consultation to get strategic managing primarily includes those who...

Recommendations: 7

Wernerfeldt, B.: A resource-based perspective of the firm, 1984; Prahalad, C. T., Hamel, G.: The primary competence with the corporation