Despite voluminous research over the past several decades, we have yet to clearly establish the relevance of firm, industry and country effects in accounting for variations in firm profitability, particularly in adverse contexts. Based on a synthesis of the resource-based view, industrial organization economics and institutional theory, we consider the role of the 2008 global economic crisis and its impact on the firm, industry, country effects -performance relationship. Using a 3-Level random coefficient model, we examine 15,008 firms within 10 emerging and 10 developed countries, accounting for variations among countries of different economic development. We find that firm effects become stronger under adverse economic conditions; industry effects become weaker during recessions, as well as country main and interaction effects, particularly among the emerging markets.

This article explores the strategies pursued by small and medium-sized firms to actively sustain growth within declining markets. A critical analysis of relevant growth theories informs the development of a semi-structured interview schedule; findings drawn from 20 case studies indicate that firms adopt a multiple-strategy approach in which they simultaneously pursue an innovative differentiation and product or service-customisation strategy. Following this strategy, it was found that firms make an intentional search for high-margin products, avoid aggressive price competition and maintain tight control of costs. The article demonstrates that an adverse environment does not necessarily inhibit firm growth and that individual firm-specific strategies can be invoked to overcome volatile market conditions.

This study examines the relationship between internationalization orientation and international performance of small and medium-sized enterprises (SMEs), and the mediating effect of technological innovation. Prior research suggests that internationalization is a prominent strategic choice for SMEs growth and profitability. However, there is still no explicit agreement on how internationalization affects international performance. Similarly, the role of innovation on performance has long been emphasized, but the implications of technological innovation on international performance are still eluding us. Our investigation of 116 SMEs in the United Kingdom reveals that internationalization orientation has a significant effect on their international performance. SMEs that have a strong international orientation can achieve better international firm performance. We further demonstrate that there is an inverted U-shaped relationship between technological innovation and international firm performance among SMEs. In addition, the results indicate that technological innovation positively mediates the effect of internationalization orientation on international firm performance, particularly for the SMEs exhibiting moderate levels of technological innovation activities. The findings of this study suggest that managers can improve international performance by combining inward and outward internationalization orientation with technological innovation activities in their strategic decisions.

This study investigates linkages between personal competencies and leadership style among female small and micro business owners. Although prior research suggests that leadership style is shaped according to a leader's traits and abilities, few empirical studies corroborate this, particularly among female owners. Using survey data from the North West of England, Yorkshire, and North Wales, we reveal that transformational leadership style is the most dominant style adopted, and it is linked to perceived human and personal competencies as well as entrepreneurial competencies.

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