How do entrepreneurial firms behave in the face of environmental turbulence and uncertainty? Evidence from the manufacturing sector

Abstract

PurposeIn a context of greater environmental uncertainty, understanding the practices and strategies adopted by the SME owner-manager to deal with it is an important topic.Design/methodology/approachBased on a questionnaire survey of 583 SME owner-managers, a cluster analysis based on the degree of perceived uncertainty was conducted.FindingsA statistical differences across a continuum with regard to entrepreneurial orientation, information gathering, management and absorption practices, innovation and internationalization was observed. These results show that the behaviors, and strategies deployed by SME owner managers are adapted to the degree of uncertainty these individuals perceive. Moreover, these results are not linked to their individual profiles nor to those of their companies.Practical implicationsThe results show how SME owner-managers can increase their capacity to face uncertainty by collecting different types of information from different sources, by traveling abroad, by hiring personal with diverse profiles and by dealing with situations outside their norms. Public authorities in economic development interested to promote entrepreneurial decisions are invited to produce and diffuse valuable information to reduce uncertainty perceived by owner managers to support SMEs.Originality/valueThis research is original in that no study has holistically examined the link between uncertainty and the strategic and organizational practices of SMEs. It also responds to political and managerial concerns to effectively support SMEs under conditions of uncertainty – contexts that are increasingly important these days.