Managerial characteristics, operational observations, and small business performance: A comparison of US and Mexican ventures

To contribute to our cross-cultural understanding of small business ventures, we investigate manager reports of small business effectiveness in the United States and Mexico. We examine the influence of organizational policies, managerial characteristics, and managerial process observations on reports of business effectiveness. Data were gathered from ventures in both countries, and results showed differences in interpersonal processes, business structure, and gender. Implications for future research are given.

Research highlights▶ We examine manager observations of small business effectiveness in the US and Mexico. Manager task communication shows a greater connection to venture performance in the US than in Mexico where there is a more indirect effect. In the US, male mangers that have written business plans report greater performance, which does not apply to either gender in Mexico. In looking at culture and written business plans, in Mexico managers report higher performance than in the US possibly because in the US the greater percentage of managers is male and they are significantly older than their Mexican counterparts. Explanation is given for the findings.