The purpose of this study is to investigate the relationship of business strategies to environment attributes -dynamism, complexity- and distinctive competence of small business in Korea. We also investigate the influence of the relationships on the performance.
We suggest that there exist the differencies in these relationships between the small and the large business.
It shown that strategies must be matched with environment attributes and distinctive competence to promote success. The strategy of innovation differentiation is most likely to be pursued in dynamic and complex environments. In addition, it correlates with the use of R and D / engineering, production functions. The strategy of marketing differentiation is associated with complex environment and correlates with the use of marketing function. Cost leadership strategy is associated with dynamic and complex environments. In addition, it correlates with the use of production and general management functions. The strategy of asset parsimony is negatively associated with dynamic environment and correlate with marketing, general management functions. Focusing strategy is associated with dynamic environment.
These relationships were more likely to be significant in groups of high - performing firms than in groups of poor performers. In addition, these relationships are different from any other results of the large business in a developed country.