Business Environment and Firms Performance in Developing Countries

This article investigates the sources of firms’ performance in developing countries. To this aim, this study considers performance models for Réunion Island firms, an ultra-peripheral territory of the European Union. First, different theoretical approaches dealing with performance are presented. Then, a study examining 118 of the 250 largest Reunionese firms is described. With the collected data, we identify management factors. These are analyzed using a typological regression algorithm based on the GUIROEM genetic algorithm. This article analyzes the relationships governing performance levels, economic sectors, and implemented strategies. It shows firms’ reticence towards adopting partnerships to help develop performance. Some limitations of this study are described, and potential avenues for development are presented.