AND LINEARITY
CHAPTER 7 PROPOSITION TESTING
7 . 1
INTRODUCTION
The purpose of this chapter is to analyse and discuss the results from the survey. A variety of univariate and multivariate statistical tests were used to test the propositions that were formulated in Chapter Four. These tests were explained in Chapter Five. It is important to note that none of the propositions are stated in the null hypothesis format. However, the statistical tests that are conducted all test the null hypotheses and a rejection of these is assumed to indicate that the research hypotheses can be accepted. The goals of the empirical study are to test whether the framework presented in Chapter Four will predict finn performance successfully; to test whether each separate section of the framework �ill contribute to the prediction; and explore other relationships that may exist between these constructs. The results are presented according to the same seven objectives that were introduced in Chapter Four. Table 7. 1 presents the research objectives and propositions of this thesis and the statistical tests employed to test each proposition.
Table 7.1 : A summary of the research objectives, propositions and statistical tests employed
. '. PROPOSITIONS STATISTICAL TESTS
I. To present the demographical and other contextual 1'1 SMEs in NZ have high levels 0/ EO
factors of the SMEs in the study, in pat1icular the level
of EO of the finns.
.2. To determine the processes that New P2a
Ze land SMEs well as their relationship strategy-making modes Ihal SMEs may The rational, adaptive: entrepreneurial. symbolic and participative exhibit, processes are important :
Frequencies, descriptive statistics PI Independent sample t-tests
P2a CFA Wit/I AMOS
with finn perfonnance. ' • P2b The entrepreneurial //lode o/strategy-maki'.lg will be most/avoured by -SMEs . P2b Highest means, frequency of
• Firms tllai employ the rational mode 0/ strategy-making petjof';" lj,el/ . . ', mode used, CFA ..
P2d Firms thpt employ more t�lan one mode 0/ strategy-making will perform well P2c CO.Telations, causal modelling
P2d Cross-tabs, correlations, ANOYA 3. To investigate how a selection of contextual factors P3a
affect the relationship between strategy-making
Environmental ul/certainly will impacl on Ihe re/alionship belween slrategy-making and pe/formal/ce P3a Moderated regression analysis .'
(moderating/aclor)
processes and !illn perfollnance. P3b Environmental uncertainty will influence the mode o/strategy-making that afirm employs. specifically. firms in P3b Cross-tabs, con-elation
dynamic and hostile envirollments will employ adaptive and entrepreneurial processes
P3c Stage o/industry life cycle and industlY sector will inj/uence the mode o/strategy-making that afirm employs P3c Cross-tab. ANOVA
P3d EO. firm size. firm 'age alld organicity 0/ struclllre will influence tlte relationship be/IVeen strategy-making alld P3d Moderated regression
pelformance (moderating/actol)
4. To compare the strategy-making proceSses of finns .of P4a EO will inj/llence the "iode 0/ strategy-making that a firm. employs, specifically. entrepreneurial firms will P4 C;orrclations, cross-tabs, ANOV A
different sizes, uge, structures and levels of EO. ,
I' I employ an entrepreneurial 0/ strategy-making
.' P4b Size will illj/uence the mode 0/ strategy-making thal a firm employs, specifically. smaller SMEs will employ adaptive and processes, whife larger SMEs will ralional and entreprenellrial processes
P4c Age will inj/uellce the mode of strategy-making that a firm employs. specifically, YOllnger SMEs will employ
,entrepreneurial and adaptive processes, whife older SMEs will employ rational and symbolic processes
P4d Firm Sllllcture will iliflueflce the mode 0/ strategy-making thdt a firm employs, specifically, firms with organic structures.will employ enlreprenewial and participatil'e modes o/slr.ategy-making
5. To investigate how a seleetion of business strategies P5a
(content variables) affect the relationship between strategy-making processes and finn perfonnance.
The mode 0/ strategy-making 'hat a firm employs will influence the choice 0/ business strategy (contel/t) \Vilich P5a Causal modelling
will inj/uencefirm per/ormallce (mediating/aclol)
6. To establish the direct relationship that some of the P6a
context and content factors may have with firm P6b
pe.fonnance.
Entrepreneurialjirms (firms with 0 high level 0/ EO) will outpeiform lion-entrepreneurial firms P6 Correlations, ANOV A
Contextual/actors, including EO, size, age, structure, environmental uncertainty and industry life cycle, will impact on (he busilless strategies (content) Ihat 0 firm chooses, specifically smaller alld younger firms will
employ strategies, while entrepreneurial firms or firms wilh organic structllres' will employ differentiation •
7. To investigate the configurational
between the va.iables of the study. relationships P7a It is possible strategy types that will predict firm perfo10 create a configllrational lllodel 0/ strategy-making. external and internal context I'ariables al/d rmance. P7a Causal modelling
P7b 11 is possible to create archetypes that empirically classifY the firms o/the study. P7b Cluster analysis