GROWTH AND PERFORMANCE CONTRASTS BETWEEN 'TYPES' OF SMALL FIRMS.

This paper studies the interrelationships in the strategic profile of a sample of small firms, and, by using cross-sectional analysis, attempts to identify any evidence to support the 'stages of growth' theories. Three surrogates for comparative growth were used in the analysis: number of employees, sales turnover, and profitability. A cluster analysis identified eight different 'types of small firms characterized by 'internal variables of ownership, management, and product structure; and the 'external' variables of product/market positioning. Analysis of variance tests found no significant differences between the clusters with regard to size. The results suggest that firms do change. but not necessarily in any prescribed sequence. Indeed, the evidence presented in the paper suggests that future research should be focused on developing theories which better describe the heterogeneity of the sector by analyzing the development within clusters of firms rather than seeking generalized over-arching theories. [ABSTRACT FROM AUTHOR]