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Abstract
The SWOT analysis is a widespread tool. Despite its intuitive appeal, research into its application is scarce. In this paper, the use of the SWOT as a tool to stimulate strategic conversation within SMEs is discussed. More specifically, we address the standardized process that we designed, tested and used to carry out a SWOT analysis in 1200 SMEs. Furthermore we examine in detail the key ingredients in making this standardized process work, i.e. focus and priority.
Keywords
strategy as practice, tools, strategic conversation, SMEs
1. Introduction
In many handbooks, making a list of an organization's Strengths, Weaknesses, Opportunities and Threats (i.e. a SWOT-analysis) is introduced as a tool for environmental analysis as an essential part of strategy development [e.g., 1,2]. Nevertheless, despite the widespread knowledge and adoption of the tool, research on the required conditions and characteristics underlying its successful application is scarce [3]. In this paper, we reflect on the SWOT-analysis as a smart tool to stimulate strategic conversation in Small and Medium-sized Enterprises (SMEs) in the wider context of improving these SMEs' innovation capacity. Taking into account both the critiques and qualities voiced concerning the assumptions, process and outcome of a SWOT analysis [e.g., 4, 5, 6, 7, 8], we designed, tested and refined a standard process that is/will be used in 1200 SMEs. This process is facilitated by more than 200 consultants who are involved in three large scale projects that are coordinated by our research group. Consequently, the data collected in these three projects allows us to report not only about the environments in which the 1200 SMEs do business (outside the scope of this paper), but just as importantly, about how a SWOT-analysis can be successfully applied to inspire SMEs to set clear strategic courses. After briefly introducing the SWOT analysis in general, this paper goes into detail about the design of the SWOT-analysis that is used in these policy programs - i.e. how does it work. Next, the active ingredients behind the success of the tool are discussed - i.e. why does it work. More specifically, focus and priority are emphasized as the two essential objectives throughout the design process. The reflections are based on our own experiences in using the standardized process underlying the SWOT-analysis, further...