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Technology-Structure Fit and Performance in Small Businesses: An Examination of the Moderating Effects of Organizational States

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  • W. Alan Randolph
  • Harry J. Sapienza
  • Mary Anne Watson

Abstract

This study explores the effects of the fit between technological innovation and organization structure on small business financial performance. Support was found for technology-structure fit as a predictor of financial performance in small businesses. The study also explores the moderating effects of firm age and of sales growth on the relationship between fit and financial performance. Regression analyses indicate that the relationship between fit and financial performance is not significantly affected by the age of small businesses, but it is significantly influenced by the rate of growth of small businesses. Fit has a significant positive relationship with financial performance for low sales growth companies, but it is unrelated to performance in high sales growth companies.

Suggested Citation

  • W. Alan Randolph & Harry J. Sapienza & Mary Anne Watson, 1991. "Technology-Structure Fit and Performance in Small Businesses: An Examination of the Moderating Effects of Organizational States," Entrepreneurship Theory and Practice, , vol. 16(1), pages 27-42, October.
    • Handle: RePEc:sae:entthe:v:16:y:1991:i:1:p:27-42
    DOI: 10.1177/104225879101600103
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    References listed on IDEAS

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    1. Zahra, Shaker A., 1996. "Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures," Journal of Business Venturing, Elsevier, vol. 11(4), pages 289-321, July.
    2. Murphy, Gregory B. & Trailer, Jeff W. & Hill, Robert C., 1996. "Measuring performance in entrepreneurship research," Journal of Business Research, Elsevier, vol. 36(1), pages 15-23, May.
    3. Gonzalo Maldonado-Guzman & Sandra Yesenia Pinzón-Castro & Heira Georgina Valdez-Bocanegra, 2017. "Logistics Flexibility and Customer Satisfaction in Spain’s Furniture Industry," International Business Research, Canadian Center of Science and Education, vol. 10(8), pages 161-172, August.
    4. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    5. Robertson, Christopher & Chetty, Sylvie K., 2000. "A contingency-based approach to understanding export performance," International Business Review, Elsevier, vol. 9(2), pages 211-235, April.
    6. Izaias Martins & Felipe Uribe & Diana Mesa, 2012. "Contribución de la orientación emprendedora a la rentabilidad de las pymes: un análisis contingente considerando la función del entorno," Revista Ecos de Economía, Universidad EAFIT, April.
    7. Linda F. Tegarden & Ann E. Echols & Donald E. Hatfield, 2000. "The Value of Patience and Start-up Firms: A Re-Examination of Entry Timing for Emerging Markets," Entrepreneurship Theory and Practice, , vol. 24(4), pages 41-58, July.

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