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A behavioral view of SME product termination decisions

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  • Brian T. McCann
  • George A. Shinkle

Abstract

Drawing from the attention-based view of the firm, we argue that heuristics play a prominent role in product termination decisions in SMEs. Specifically, we predict that performance below aspiration is a significant heuristic used in these decisions. We deepen our examination by developing moderating hypotheses to better understand heterogeneity across SMEs. Attention regulators hypothesized to moderate the main effect include regulatory uncertainty, predisposition toward satisficing behavior in the firm, whether the firm is run by an owner-manager, and the extent to which the firm faces liquidity constraints. Hypotheses are tested with survey data of over 4,000 SMEs from 34 countries.

Suggested Citation

  • Brian T. McCann & George A. Shinkle, 2023. "A behavioral view of SME product termination decisions," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(4), pages 1529-1562, July.
    • Handle: RePEc:taf:ujbmxx:v:61:y:2023:i:4:p:1529-1562
    DOI: 10.1080/00472778.2020.1844488
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    Cited by:

    1. Vivienne Born & Lee Warren Brown & Dinesh Hasija, 2024. "Who obtains political exemptions? An attention-based analysis of steel tariff exclusion requests," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 166-180, June.

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