The nature of the regional SME

In this paper, theories of strategic competitiveness are used as the building blocks for alternative models of the regional firm. These models are used to develop a typology of firms that attempts to explain the fit between a small firm and its regional location. The standard theories based on "industry organization", "resources", and "dynamic capabilities" explain much of the variation observed in the case studies , however a more complete coverage of the regional effects on the nature of firm organization and strategy are provided by introducing "evolutionary" and "infrastructure" based paradigms. The typology is illustrated and discussed, using findings from a qualitative, case-based study of small, Western Victorian firms. Economic and social activity in many regional areas of Australia and the world is in decline, and regional enterprises are an important target of many policy initiative designed to rejuvenate and sustain regions. But what is the nature of regional firms, and what drives their successful development and competitiveness?