Entrepreneurship and the concept of fit: a model and empirical tests

A model of 'fit' is developed that takes into consideration entrepreneurial, structural and strategic factors. Fit is defined as the degree to which a firm has adjusted and can adjust to environmental structure, processes and strategic characteristics. Based on extant empirical research, the model includes entrepreneurial style, mission, firm structure and environmental turbulence as determinants in calculating a measure of fit for 82 small and medium-sized high-technology manufacturers. The results indicate a positive relationship betweeen firm performance and fit. Diagnostic and corrective measures of 'misfit' for individual businesses are then proposed to assist practitioners, including the transmission of research to management, managerial awareness of the factors and techniques involved, prioritization of efforts and progress evaluation.