Proposing a strategic capability index for micro and small enterprises

Abstract

Organizations depend on their ability to formulate, implement and evaluate strategies effectively in order to make better use of their resources and capabilities to achieve and maintain competitive advantage. Regarding micro and small enterprises (MSE), which mortality levels are significant, those capacities are fundamental conditions for their survival and growth. Considering the lack of a more robust method of measuring strategic capability for this type of companies, this study proposes a Strategic Capability Index (SCI) for MSE. The research population was composed of companies located in the state of Ceará, Brazil, from a sample of 196 companies. By means of the application of a second order Confirmatory Factorial Analysis, it was possible to propose the factored index in five dimensions: Strategic Approach; Strategic Tools; Strategic Relations; Analysis of Environments; Strategic Processes. The SCI for MSE in the organizations analyzed in Ceará was low, implying the relative lack of competitiveness of these organizations.