Strategic Decision Speed and International Performance: The Roles of Competitive Intensity, Resource Flexibility, and Structural Organicity

Abstract

Based on insights from the decision-making and contingency theories, this study examined the influence of strategic decision speed (SDS) on the international performance of small and medium-sized enterprises (SMEs), and explored the conditions under which SDS effectively drives international performance. We tested our model using structural equation modeling using a sample of 212 SMEs involved in cross-border activities. First, the results show that fast decision-making is associated with greater international performance of SMEs. Second, the analyses suggest that the relationship between SDS and international performance is amplified for organically structured SMEs, and those operating in highly competitive environments. In addition, the outcomes revealed that SDS is more positively related to international performance at greater levels of flexible internal resources. These results have important theoretical and practical implications for the international business literature.