Managers of small and medium enterprises: mission statement and enhanced organisational performance
Abstract
Purpose
The main purpose of this paper is to examine the relationship between mission statements and firm performance in the small to medium‐sized enterprise (SME) sector.
Design/methodology/approach
This research is based on an empirical survey of small and medium‐sized enterprises located in science parks in the UK. A postal questionnaire was the main data collection instrument for this research. A combination of qualitative and quantitative approaches is employed for data analysis.
Findings
The important conclusions reached are that the existence of mission statements in the studied firms was associated with firm performance. It is also found that organisational performance is significantly associated with the degree of non‐managerial employees' involvement in the process of mission statement development. Finally, the presence of financial goals in the studied firms' mission statements were negatively associated with firm performance.
Research limitations/implications
The present study is concerned with the relationship between mission statement and organisational performance in SMEs. A further study is recommended to investigate the impact of involvement and engagement with both mission statement formulation and evolution and the strategic decision‐making process, specifically decision‐making processes in SMEs.
Practical implications
In order to increase firm performance, it is recommended that practitioners develop a meaningful mission statement and increase the involvement of their non‐managerial employees in the development of the mission statement.
Originality/value
The principal contribution of this first study is the attempt to explore the nature and role of the mission statement in enhancing organisational performance.
Keywords
Citation
Taghi Alavi, M. and Karami, A. (2009), "Managers of small and medium enterprises: mission statement and enhanced organisational performance", Journal of Management Development, Vol. 28 No. 6, pp. 555-562. https://doi.org/10.1108/02621710910959729
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited