Competitive strategies and new venture performance

This paper presents the results of a longitudinal survey of 100 owner-managed new and small ventures. The survey was designed to explore the strategic orientations of new ventures and their performance implications. Results of the analytical study based on the application of factor analysis and cluster analysis indicate the existence of multiple strategies adopted by new ventures in order to remain competitive. The multiple regression models and cluster-wise performance analysis further indicate that a venture's competitive strategy significantly influences its performance. On the other hand, a complete lack of strategic orientation in a new venture may lead to negative performance and subsequently may even threaten its very survival.