Adopted Strategic and Operational Practices of New Businesses in Early Stage of Development: Evidence from Pakistan

Abstract

This exploratory research highlights the strategic orientation, competitive strategy, adaptability and succession issues of small businesses in Pakistan. Despite the rise of entrepreneurship, many startups in Pakistan succeed in their first few years, but then collapse, leaving us to ponder the strategic and operational practices that are used during this critical period of the startup's life. The data was gathered from 50 respondents that come from different industries and are early stage businesses using a quantitative survey approach. The questionnaire was divided into three composite dimensions: strategic orientation, competitive strategy and adaptability, and succession challenges, with each having 15 items rated on a 5-point Likert scale. Descriptive statistics, reliability analysis, one-sample t-tests, Pearson correlation analysis and multiple regression analysis were performed to analyse the data. The results showed low to moderate scores for all three dimensions, with means scores below the neutral ranges. The mean score for Corporate governance was the highest (M = 2.78); the lowest was for differentiation strategy (M = 2.18). Cronbach's alpha values were very low, suggesting low internal consistency. There were no significant relationships between composite variables and regression analysis revealed no significant predictors of succession challenges, apart from strategic orientation and competitive adaptability. The study provides both exploratory evidence for the literature on entrepreneurship in emerging economies, and preliminary insights for entrepreneurs and policy makers. Small sample sizes and low reliability indicate the need for research with larger samples and valid instruments in the future.