IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i7p698-d74415.html
   My bibliography  Save this article

The Sustainable Strategy for Small and Medium Sized Enterprises: The Relationship between Mission Statements and Performance

Author

Listed:
  • Ethem Duygulu

    (Dokuz Eylul University, 35160 Buca, Izmir, Turkey)

  • Emir Ozeren

    (Dokuz Eylul University, 35680 Foca, Izmir, Turkey)

  • Pınar Işıldar

    (Dokuz Eylul University, 35680 Foca, Izmir, Turkey)

  • Andrea Appolloni

    (University of Rome “Tor Vergata”, 00133 Rome, Italy)

Abstract

The study aims to contribute to the literature by empirically examining the relationship between small and medium sized enterprises’ (SMEs) mission statements and their performance in sustainable strategy formulation. Although it seems that there is a relatively vast amount of research with regard to mission statements of companies, very few studies have focused on the relationship between mission statements and performance. When these few studies are taken into consideration, it is difficult to reach any overall conclusion since their findings are mixed and inconclusive. To achieve this aim, 3034 SMEs operating in organized industrial zones in Turkey were examined via a survey approach. In order to investigate the relationships among the variables, nine categories of mission statements as independent variables and four performance indicators (financial, market, production, and overall) as dependent variables were analyzed through logistic regression. This study identified three mission components, (1) survival, growth, and profit; (2) philosophy and values; and (3) public image, as the common independent variables in explaining the performance of SMEs. Survival, growth, and profit is the most frequently observed mission component regardless of the subsector differentiation in the entire sample, which reflects the significance of business sustainability for SMEs in the Turkish manufacturing context. Besides, among all performance indicators, SMEs’ market performance was found to be the lowest when compared to other performance indicators (financial, production, overall). Although the firms were placed in different manufacturing subsectors, similar mission statements were highlighted so that the discourse similarity might be considered as evidence of isomorphism characteristics for SMEs.

Suggested Citation

  • Ethem Duygulu & Emir Ozeren & Pınar Işıldar & Andrea Appolloni, 2016. "The Sustainable Strategy for Small and Medium Sized Enterprises: The Relationship between Mission Statements and Performance," Sustainability, MDPI, vol. 8(7), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:698-:d:74415
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/8/7/698/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/8/7/698/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bartkus, Barbara & Glassman, Myron & McAfee, Bruce, 2006. "Mission Statement Quality and Financial Performance," European Management Journal, Elsevier, vol. 24(1), pages 86-94, February.
    2. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    3. Bartkus, Barbara R. & Glassman, Myron & McAfee, R. Bruce, 2004. "A Comparison of the Quality of European, Japanese and U.S. Mission Statements:: A Content Analysis," European Management Journal, Elsevier, vol. 22(4), pages 393-401, August.
    4. Sidhu, Jatinder, 2003. "Mission Statements:: Is it Time to Shelve Them?," European Management Journal, Elsevier, vol. 21(4), pages 439-446, August.
    5. Christopher Kenneth, Mark C. Bart Baetz, 1998. "The Relationship Between Mission Statements and Firm Performance: An Exploratory Study," Journal of Management Studies, Wiley Blackwell, vol. 35(6), pages 823-853, November.
    6. Yingyan Wang, 2011. "Mission-Driven Organizations in Japan: Management Philosophy and Individual Outcomes," Journal of Business Ethics, Springer, vol. 101(1), pages 111-126, June.
    7. Coats, Jeffrey & Davis, Edward & Longden, Stephen & Stacey, Raymond & Emmanuel, Clive, 1991. "Objectives, missions and performance measures in multinationals," European Management Journal, Elsevier, vol. 9(4), pages 444-453, December.
    8. Macedo, Isabel Maria & Pinho, José Carlos & Silva, Anabela Martins, 2016. "Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment," European Management Journal, Elsevier, vol. 34(1), pages 36-46.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabio Caputo & Stefania Veltri & Andrea Venturelli, 2017. "Sustainability Strategy and Management Control Systems in Family Firms. Evidence from a Case Study," Sustainability, MDPI, vol. 9(6), pages 1-23, June.
    2. Lara Penco & Giorgia Profumo & Roberta Scarsi, 2017. "Stakeholder Orientation in Cruise Lines’ Mission Statements," Sustainability, MDPI, vol. 9(11), pages 1-24, November.
    3. Zhuolin An & Shangyi Zhou, 2022. "Trialectics of Spatiality: The Negotiation Process between Winter Swimmers and the Municipal Government of Beijing," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    4. Valentina A. Bali & Devin Higgins, 2023. "More than Meets the Eye? Using Text Analytic Techniques to Unpack School Mission Statements," SAGE Open, , vol. 13(4), pages 21582440231, December.
    5. Miguel Giménez García-Conde & Longinos Marín & Salvador Ruiz de Maya, 2016. "The Role of Generativity in the Effects of Corporate Social Responsibility on Consumer Behavior," Sustainability, MDPI, vol. 8(8), pages 1-14, August.
    6. Veronika Svatošová & Jaroslava Rajchlová, 2022. "The Importance of Determinants of Strategic Development in E-commerce," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(9-10), pages 768-792, August.
    7. Jayasundara, JMSB & Rajapakshe, PSK & Prasanna, RPIR & Naradda Gamage, Sisira Kumara & Ekanayake, EMS & Abeyrathne, GAKNJ, 2019. "The Nature of Sustainability Challenge in Small and Medium Enterprises and its Management," MPRA Paper 98418, University Library of Munich, Germany.
    8. Daniela M. Salvioni & Francesca Gennari & Luisa Bosetti, 2016. "Sustainability and Convergence: The Future of Corporate Governance Systems?," Sustainability, MDPI, vol. 8(11), pages 1-25, November.
    9. Wunhong Su & Liuzhen Zhang & Chao Ge & Shuai Chen, 2022. "Association between Internal Control and Sustainability: A Literature Review Based on the SOX Act Framework," Sustainability, MDPI, vol. 14(15), pages 1-30, August.
    10. Lee, Corrinne Mei Jyin & Che-Ha, Norbani & Syed Alwi, Sharifah Faridah, 2021. "Service customer orientation and social sustainability: The case of small medium enterprises," Journal of Business Research, Elsevier, vol. 122(C), pages 751-760.
    11. Muhammad Haseeb & Hafezali Iqbal Hussain & Beata Ślusarczyk & Kittisak Jermsittiparsert, 2019. "Industry 4.0: A Solution towards Technology Challenges of Sustainable Business Performance," Social Sciences, MDPI, vol. 8(5), pages 1-24, May.
    12. Said Yousef Dwikat & Darwina Arshad & Mohd Noor Mohd Shariff, 2022. "The Influence of Systematic Strategic Planning and Strategic Business Innovation on the Sustainable Performance of Manufacturing SMEs: The Case of Palestine," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    13. Naradda Gamage, Sisira Kumara & Ekanayake, EMS & Abeyrathne, GAKNJ & Prasanna, RPIR & Jayasundara, JMSB & Rajapakshe, PSK, 2019. "Global Challenges and Survival Strategies of the SMEs in the Era of Economic Globalization: A Systematic Review," MPRA Paper 98419, University Library of Munich, Germany.
    14. Seoksoo Kim & Taekwan Ha, 2023. "Influential Variables and Causal Relations Impact on Innovative Performance and Sustainable Growth of SMEs in Aspect of Industry 4.0 and Digital Transformation," Sustainability, MDPI, vol. 15(9), pages 1-27, April.
    15. Francesco Caputo & Luca Carrubbo & Debora Sarno, 2018. "The Influence of Cognitive Dimensions on the Consumer-SME Relationship: A Sustainability-Oriented View," Sustainability, MDPI, vol. 10(9), pages 1-19, September.
    16. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    17. Silvia Lorincová & Miloš Hitka & Peter Štarchoň & Katarína Stachová, 2018. "Strategic Instrument for Sustainability of Human Resource Management in Small and Medium-Sized Enterprises Using Management Data," Sustainability, MDPI, vol. 10(10), pages 1-25, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Odile Paulus, 2008. "La déclaration de mission, une revue de la littérature," Working Papers of LaRGE Research Center 2008-13, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    2. Jasmina Berbegal-Mirabent & Marta Mas-Machuca & Patricia Guix, 2021. "Impact of mission statement components on social enterprises’ performance," Review of Managerial Science, Springer, vol. 15(3), pages 705-724, April.
    3. Law, Kris M.Y. & Breznik, Kristijan, 2018. "What do airline mission statements reveal about value and strategy?," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 36-44.
    4. Macedo, Isabel Maria & Pinho, José Carlos & Silva, Anabela Martins, 2016. "Revisiting the link between mission statements and organizational performance in the non-profit sector: The mediating effect of organizational commitment," European Management Journal, Elsevier, vol. 34(1), pages 36-46.
    5. Feiran Dong & Yongzhen Xie & Linjun Cao, 2019. "Board Power Hierarchy, Corporate Mission, and Green Performance," Sustainability, MDPI, vol. 11(18), pages 1-27, September.
    6. Lara Penco & Giorgia Profumo & Roberta Scarsi, 2017. "Stakeholder Orientation in Cruise Lines’ Mission Statements," Sustainability, MDPI, vol. 9(11), pages 1-24, November.
    7. Quan Lin & Yingchang Huang & Ruojin Zhu & Yue Zhang, 2019. "Comparative Analysis of Mission Statements of Chinese and American Fortune 500 Companies: A Study from the Perspective of Linguistics," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    8. Bayrak, Tuncay, 2020. "A content analysis of top-ranked universities’ mission statements from five global regions," International Journal of Educational Development, Elsevier, vol. 72(C).
    9. Dmitry A. Ruban & Natalia N. Yashalova & Vladimir A. Ermolaev, 2021. "Is Environment a Strategic Priority of the Leading Energy Companies? Evidence from Mission Statements," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    10. Barbara Bartkus & Myron Glassman, 2008. "Do Firms Practice What They Preach? The Relationship Between Mission Statements and Stakeholder Management," Journal of Business Ethics, Springer, vol. 83(2), pages 207-216, December.
    11. Juha Kettunen, 2016. "Relationship Between Mission Statement And Scope Of Business: Evidence From Finland," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 7(1), pages 69-78.
    12. Lin, YiHsin & Ryan, Chris, 2016. "From mission statement to airline branding," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 150-160.
    13. Nikolai Brosch, 2023. "Corporate purpose: from a ‘Tower of Babel’ phenomenon towards construct clarity," Journal of Business Economics, Springer, vol. 93(4), pages 567-595, May.
    14. Fahad Alolayan & Wided Ragmoun & Hanene Saidi, 2018. "An Exploratory Approach of the Mission Statement: Case of Saudi Arabia Business Schools," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(3), pages 200-200, February.
    15. David, Forest, 2020. "Analysis Of Vision And Mission Statements Characteristics And Their Association With Organizational Performance: A Guide To Writing Effective Vision And Mission Statements," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 14(1-2), June.
    16. Katia Giusepponi & Ernesto Tavoletti, 2018. "Vision and Mission Statements in Italian Universities: Results of an Empirical Investigation on Strategic Orientation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 301-328, March.
    17. Marta Mas-Machuca & Maria Ballesteros-Sola & Adrián Guerrero, 2017. "Unveiling the mission statements in social enterprises: a comparative content analysis of US- vs. Spanish-based organizations," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 8(2), pages 186-200, May.
    18. William Patrick Leonard & Chia-Hsing Huang, 2014. "Linking Classroom Performance to the Institutional Mission Statement," SAGE Open, , vol. 4(1), pages 21582440135, January.
    19. Jongdo Jeon & Keun Tae Cho, 2021. "Differences in Readability, Keywords, and Orientation of Mission Statements of the Top 100 Korean and Top 100 US Traditional and Innovative Companies," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    20. Subhanjan Sengupta & Arunaditya Sahay, 2017. "Comparing mission statements of social enterprises and corporate enterprises in the new and renewable energy sector of India: a computer aided content analysis study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-16, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:8:y:2016:i:7:p:698-:d:74415. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.