Does the Fit between Competitive Strategy and Administrative Mechanisms Lead to Superior Performance? – a Comparision of New Technology-based Small Firms and Traditional Small Firms

At least two different administrative mechanisms are available for the small business manager to develop and pursue a competitive strategy. One refers to managerial skills needed to implement and follow the competitive strategy chosen by the firm. The other refers to the design of organisation structure i.e. how job tasks are divided, grouped and coordinated. This paper argues that the fit between the competitive strategy followed by a firm and the utilisation of the administrative mechanisms is associated with superior performance of the firm.