Strategic Renewal after Ownership Transfers in SMEs

Authors Lex van Teeffelen
Published in International Journal of Entrepreneurial Venturing
Publication date 2010
Type Article

Summary

Different types of strategic renewal by the successor are identified: organizational change, innovation, combined actions and no action. The main assumption is that renewal after succession improves SME post-transfer performance compared to no actions taken. Also successor’s timing of the takeover is observed, looking at the economic conditions in the year of ownership transfer: decline, average or growing conditions. The hypotheses are tested on a random stratified sample of 333 Dutch firms. Univariate analysis of variance (ANOVA) and complementary T-tests show that organizational change, product/market innovation and combined actions all increase post-transfer performance compared to no renewal. Strategic renewal pays off in any economic period, but mostly so in periods of economic decline. The control variable firm size is a significant predictor: the smaller the firm the better the post-transfer performance.

researchcomponents.publicationcontent.personslist.publicationauthors

  • Lex van Teeffelen
    Lex van Teeffelen
    • Professor
    • Research groups: Financial-Economic Advice in Innovation

Language English
Published in International Journal of Entrepreneurial Venturing
Year and volume 2 3-4
ISBN/ISSN URN:ISSN:1742-5360
Page range 347-365

Lex van Teeffelen

Lex van Teeffelen

Lex van Teeffelen

  • Professor
  • Research group: Financial-Economic Advice in Innovation