Economic Condition
BUSINESS STRATEGIES AND PERFORMANCE DURING DIFFICULT ECONOMIC CONDITIONS
For the Department of Business Innovation and Skills (BIS)
John Kitching
Robert Blackburn
David Smallbone
Small Business Research Centre, Kingston University
Sarah Dixon
School of Management, Bath University
June 2009
URN 09/1031
Contents
EXECUTIVE SUMMARY i
1. INTRODUCTION, RESEARCH OBJECTIVES AND METHODS 1
2. RESEARCH CONTEXT 1 2.1 Defining Difficult Economic Conditions 1 2.2 The Current Crisis 1
3. ANALYTICAL FRAMEWORK 1
4. THE BUSINESS STRATEGY AND MANAGEMENT LITERATURE 1 4.1 Business Strategy: General Considerations 1 4.2 Strategic Adaptation to Environmental Jolts, Turbulence and Radical Institutional Change 1 4.3 Strategic Adaptation to Recession 1 4.4 Retrenchment Strategies 1 4.5 Investment Strategies 1 4.6 ‘Ambidextrous’ Strategies 1 4.7 Business Size as an Influence on Strategic Adaptation to Difficult Economic Conditions 1 4.8 International Experience 1
5. CONTEMPORARY COMMENTARY ON THE CURRENT CRISIS 1
6. STRATEGIC RESPONSES IN THE RECESSION: DELIBERATIONS FROM A THINK-TANK 1 6.1 Introduction and Objectives 1 6.2 Business Responses in Recession 1 6.2.1 Knowledge Base 1 6.2.2 Unevenness of Recession 1 6.3 Modelling Strategic Change 1 6.3.1 Typologies of Strategic Change 1 6.3.2 Strategic Thinking and Strategic Actions 1 6.4 The Role of Innovation under Recession Conditions 1 6.5 Roles for Public Policy 1 6.5.1 Legitimise Change and Innovation within Organisations 1 6.5.2 Stimulate Experimental Approaches to Supporting Innovation 1 6.5.3 Promote the Provision of Finance 1 6.5.4 Pay Attention to Business Exits 1 6.5.5 Consider Small Firms/New Firms Initiatives 1 6.5.6 Redefining sectors and cross-sector initiatives 1 6.5.7 Policy Messages for Recovery 1 6.5.8 Harnessing Creativity and Sources of National Excellence 1 6.6
For the Department of Business Innovation and Skills (BIS)
John Kitching
Robert Blackburn
David Smallbone
Small Business Research Centre, Kingston University
Sarah Dixon
School of Management, Bath University
June 2009
URN 09/1031
Contents
EXECUTIVE SUMMARY i
1. INTRODUCTION, RESEARCH OBJECTIVES AND METHODS 1
2. RESEARCH CONTEXT 1 2.1 Defining Difficult Economic Conditions 1 2.2 The Current Crisis 1
3. ANALYTICAL FRAMEWORK 1
4. THE BUSINESS STRATEGY AND MANAGEMENT LITERATURE 1 4.1 Business Strategy: General Considerations 1 4.2 Strategic Adaptation to Environmental Jolts, Turbulence and Radical Institutional Change 1 4.3 Strategic Adaptation to Recession 1 4.4 Retrenchment Strategies 1 4.5 Investment Strategies 1 4.6 ‘Ambidextrous’ Strategies 1 4.7 Business Size as an Influence on Strategic Adaptation to Difficult Economic Conditions 1 4.8 International Experience 1
5. CONTEMPORARY COMMENTARY ON THE CURRENT CRISIS 1
6. STRATEGIC RESPONSES IN THE RECESSION: DELIBERATIONS FROM A THINK-TANK 1 6.1 Introduction and Objectives 1 6.2 Business Responses in Recession 1 6.2.1 Knowledge Base 1 6.2.2 Unevenness of Recession 1 6.3 Modelling Strategic Change 1 6.3.1 Typologies of Strategic Change 1 6.3.2 Strategic Thinking and Strategic Actions 1 6.4 The Role of Innovation under Recession Conditions 1 6.5 Roles for Public Policy 1 6.5.1 Legitimise Change and Innovation within Organisations 1 6.5.2 Stimulate Experimental Approaches to Supporting Innovation 1 6.5.3 Promote the Provision of Finance 1 6.5.4 Pay Attention to Business Exits 1 6.5.5 Consider Small Firms/New Firms Initiatives 1 6.5.6 Redefining sectors and cross-sector initiatives 1 6.5.7 Policy Messages for Recovery 1 6.5.8 Harnessing Creativity and Sources of National Excellence 1 6.6
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