Strategic management in SMEs

Discussion of new concepts, tools, approaches and methods for strategic management and organisation of SMEs is now routine among academics, scholars, consultants and policymakers. It is sometimes difficult for managers and entrepreneurs in small businesses to find their way. Complex environments (VUCA - volatility, uncertainty, complexity, and ambiguity) and globalisation remain insurmountable challenges for SMEs, and solutions require technology and innovation, further underscoring strategic management's importance. In general, SMEs respond to these needs with management modes that range from highly sophisticated and detailed planning, with a lack of vision, to firms claiming that they do not need a strategy. Thus, SMEs have "unformulated" haphazard strategic behaviour that lacks logical processes, especially concerning the implementation phase. However, if well supported, this approach can be an advantage and not a shortcoming. A gift that combines intuition and creativity is an essential element of strategic thinking and is necessary for successful strategic management. These companies avoid falling into the trap of an overly analytical approach, which was particularly common among more prominent companies in the 1980s and led to severe criticism of the concept of strategic planning (Mintzberg, 1994). Steiner (1979) pointed out, "If intuitive geniuses run an organisation, there is no need for formal strategic planning." But, then, based on these premises, the central question is still: what contribution do general and specific organisation methods and models have on SME performance and growth? Do SMEs not need a strategy? Can we still rely on the extemporaneous insights of entrepreneurs? The correlation between strategic management and performance is generally challenging because of conceptual and methodological problems. Powell (1992) believes that studies have produced inconsistent results because they need to consider the impact of strategic planning over time. It is abundantly clear that if one measures the effects of a strategy in the short to medium term, one will get a partial picture which does not consider the long-term effects. The literature offers different perspectives on the concept of strategy: market-based strategies, competency-based strategies, strategies that apply Porter's vision, the portfolio model, and so on.

For entrepreneurs, the question is always the same: Should I implement a strategic planning process? Can I implement a strategic planning process without first implementing proper management control? In the absence of a rational plan-structuring management control and strategic planning into one coherent framework-not using strategic management methods may be more beneficial than adopting an inappropriate approach. There is an ongoing debate in the literature. Still, no one concludes, i.e., no one points out who and how should help the entrepreneur choose between different strategic models without leaving them pure and straightforward theoretical schemes. My idea is that strategic management of the enterprise is fundamental, but it should be calibrated to a performance time horizon more suitable for the SME. Since the mid-1980s, we have been discussing strategy, but we have learned at some point in the debate that small firms are not smaller versions of larger firms (Julien, 1993). They are characterised by the central position of the owner, who often needs more managerial qualifications and an aversion to planning and applying formal methods. Their weaknesses include difficulties in financing and little use of external resources and expertise. Their most important advantage is their flexibility, which enables them to react immediately to environmental changes.

Generally, the dominant thinking on the subject is still based on the conceptual framework established by the authors of the 1970s (Andrews, 1971; Schendel & Hofer, 1979). According to this paradigm, the strategic management process consists of an analytical phase, strategy formulation and implementation. According to this approach, strategic management is predominantly viewed as a rational-analytical process. The truth is that strategic management is based on a body of various disciplines and consists of different approaches. For example, for Prahaled and Hamel (1990), a strategy must also include an assessment of core competencies. The fundamental principle is that competitive advantages emerge through resource accumulation and distribution. This approach is different from the traditional concept of org.