Strategic management in small businesses : the role of managers’ previous experiences and educational background

Abstract

This dissertation was aimed at understanding the process of strategic management in small and micro firms in Malta. As previous literature proved that some small firms tended to opt out of strategic management, while others mentioned it being done informally, the research aims to prove or disprove these theories. The dissertation also investigated the effects of previous management related education and experiences on the strategic management processes of these firms. This was done through qualitative interviews with owner-managers of six small and micro firms in Malta, where the processes performed by them and their perceptions on strategic management could be analysed and further understood. The research showed that small and micro firms in Malta do actually perform strategic management and are not discouraged by it. The study shows the different approaches taken by these firms, and also shows the relevance of education and previous experiences in these approaches. It was established that these firms do use formal methods of strategic planning; however they adopt them into more informal and indirect measures that best fit their business.