10. Barringer, B. R., & Greening, D. W. (1998). Small Business Growth Through Geographic Expansion A comparative Case Study. Journal of Business Venturing

Question 1

What are 3 categories of variables of the preliminary model of expansion performance?

Answer 1

• Planning for growth
• Managing growth
• Reasons for growth

Question 2

What are 6 categories of variables of the revised model of expansion performance?

Answer 2

• Planning for growth
• Managing growth
• Reasons for growth
• Expansion site characteristics
• Set of moderator variables
• Expansion performance

Question 3

What is the unique challenge of geographic expansion for small firms?

Answer 3

The unique challenge of geographic expansion for small firms is having to do business in an unfamiliar location, where the market potential and the legitimacy of the firm and the firm’s business concept is untested. This adds a layer of complexity to small firm growth that exacerbates the need for planning.

Question 4

What type of planning is needed for geographic expansion?

Answer 4

Careful thought and timely planning is needed for geographic expansion in order to execute activities effectively. This includes normal challenges involved with adding personnel and structure to accommodate growth, as well as the need to consider the physical separation from a portion of the firms activities.

Question 5

What are some important components of successful geographic expansion?

Answer 5

Recruitment and selection of qualified personnel, training and socializing employees in the home office, networking to establish stakeholder relationships in expansion site locations, and providing incentives for performance.

Question 6

What is key in order to maintain overall control in geographic expansion?

Answer 6

Controlling the geographic distance between the headquarters site and the expansion locations.

Question 7

How can modern technology help attenuate the role of geographic distance in effective management and control?

Answer 7

Modern technology can help to bridge the gap between the headquarters and the expansion site, allowing for better communication and control.

Question 8

What role do planning, reasons for growth, and expansion site characteristics play in the geographic expansion process?

Answer 8

Planning helps firms to develop a set of heuristics for selecting appropriate expansion sites, while growth reasons and characteristics both influence the management of the expansion process.

Question 9

What kind of help can business consultants provide for firms planning to expand geographically?

Answer 9

Business consultants can be useful in helping firms to select the best sites, while additional networking may be necessary to establish stakeholder relationships in areas where the legitimacy of the business concept is not well established.

Question 10

What are the 3 moderator variables that play a role in the succes of managing growth and expansion?

Answer 10

• Learning
• Flexibility
• Environmental turbulence

Question 11

What does the variable of learning imply regarding growth management and expansion?

Answer 11

Learning is a process of bringing about changes in behaviour as a result of experience

Question 12

What does the variable of flexibility imply regarding growth management and expansion?

Answer 12

Flexibility is the firm’s ability to respond to various demands from competitive environments

Question 13

What does the variable of environmental turbulence imply regarding growth management and expansion?

Answer 13

Environmental turbulence is externally induced change that can severely impact a firm’s performance.

Question 14

Which reasons for growth are more likely to drive expansion?

Answer 14

Economic reasons are more likely to drive expansion than personal reasons