Short- and Long-Term Performance in Manufacturing Smes : Different Targets, Different Drivers

This study examines long- and short-term performance of SMEs as driven by the attributes of strategy, leadership, culture, and organizational capability. Data were collected from 194 SME manufacturing firms in the United Kingdom. Factors analyzed include strategy (long- or short-term), leadership style, orientation (internal or external), performance, creativity, departmental cooperation, cultural style, and organizational capability. Analysis revealed that short- and long-term performance are driven by distinctly different attributes. Attributes perceived as internally oriented are associated with improved short-term performance; whereas externally oriented attributes are associated with improved long-term performance. Strong leadership and culture styles (regardless of style itself) are associated with improved long-term performance. Suggests that managers should consider leadership and culture to ensure these are aligned with their overall strategic plan. (TNM)