Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs

2009 ◽  
Vol 35 (2) ◽  
pp. 169-189 ◽  
Author(s):  
Karl-Heinz Leitner ◽  
Stefan Güldenberg
2017 ◽  
Vol 12 (3) ◽  
pp. 148 ◽  
Author(s):  
Esther Mungai ◽  
Madara Ogot

Micro-enterprises (MEs) have been shown to collectively be the largest employer in most developing countries thus playing a significant role in the countries economies. Using informal sector micro-enterprise furniture makers (wood and metal) in Nairobi, Kenya and based on Porter's competitive business strategies typology, this study sought to determine if the strategies employed by the informal sector MEs fit within the typology framework, and if membership within the strategic groups in the typology are a predictor of better business business performance. From the study, although membership within the two focus strategic groups of differentiation and low cost was confirmed, unlike studies done with medium and large enterprises, membership was not found to be a predictor of better business performance. Porter's typology may therefore not adequately capture the competitive business activities relevant to and directly by MEs, presenting an opportunity for research into the development of competitive business strategy typologies directly derived from their activities and therefore applicable to them.


2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.


Author(s):  
Novah Omboga ◽  
Paul Machoka

ABSTRACT The main objective of the study was to establish the influence of Porter's generic strategies and firm performance in petroleum marketing companies using Vivo Energy Limited as a case study. The business environment in emerging economies has witnessed intense competition among firms. Petroleum marketing companies in Kenya have had to face such conditions in a competitive environment prompting the firms to develop strategies that match their capabilities to market demands. The specific objectives of the study were: to examine how leadership cost strategy and; focus strategy affect the firm performance of Vivo Energy Limited. The study was premised on the; resource-based view, competitive advantage and contingency theories. This study adopted a descriptive research design. The target population was 237 employees at Vivo Energy Limited. Stratified proportion sampling was used to obtain a sample of 108 respondents. Questionnaires were used for data collection. Data was analyzed using descriptive and inferential statistics to determine the relationship between the study variables. Pearson correlation analysis was carried out to establish the relationship between dependent and independent variables. The analysis of variance (ANOVA) was checked to reveal the overall model significance. The study established that there was a positive relationship between the cost leadership strategy and firm performance. Analysis also revealed that focus strategy had a substantial positive correlation, establishing that focus strategy and firm performance are fundamentally related, and that the variation in firm performance can be explained by a unit change in focus strategy. The study recommended that the management of Vivo Energy Limited should adopt cost leadership strategy that is focused on gaining competitive advantage byselling their products at average prices to earn higher profits than competitors in the sector or below the average industry prices to gain market share. It also recommends that Vivo Energy should consider employing focus strategies that are concentrated on narrow segment aimed at achieving cost advantage or differentiation. Keyword: Cost leadership, Firm Performance, Focus strategy, Generic Strategies


Porter’s generic strategies are the proven and pervasive strategic options in achieving competitiveness and better firm performance. This paper aims in examining the effect of Porter’s generic strategies (low-cost, differentiation, and focus) on firm performance in the context of Nepalese retail banks, a more competitive service industry. This study applies casual comparative research design and the data have been collected through administering questionnaire survey from 75 senior bank managers of 18 Nepalese commercial banks who being engaged in strategic affairs. The econometric model has been constructed to measure the expected effect of the strategies on firm performance. The descriptive analysis, Pearson’s correlation analysis, and multivariate regression analysis were conducted. The empirical results of correlation analysis and multiple regression analysis produced consistent results indicating positive associations between generic strategies and firm performance. The empirical results from regression analysis declared higher positive and significant impact of low-cost on firm performance. Similarly, positive effect of differentiation strategy and focus strategy on firm performance was reported. The findings suggested that pursuing low cost strategy provides more financial returns with comparison to differentiation and focus strategies. The finding also suggested for combination of low-cost and differentiation (and focus) strategies could provide better competitiveness and firm performance. Keywords: Generic Strategy, Low-cost strategy, Differentiation strategy, Focus strategy, Firm performance


2014 ◽  
Vol 45 (2) ◽  
pp. 35-50 ◽  
Author(s):  
M. Dülger ◽  
G. Alpay ◽  
C. Yılmaz ◽  
M. Bodur

This paper attempts to shed light on the role of learning orientations of firms and their adoption of Porter’s generic strategies on four dependent variables: Behavioral innovativeness, product innovativeness, technological innovativeness and, ultimately, firm performance. Hierarchical regressions were run with data from a random sample of 121 firms operating in Turkey. Findings indicate that internally-focused learning, market-focused learning and differentiation strategy have significant effects on the three innovativeness dimensions. When firm performance is included as the eventual outcome variable into the analysis, internally-focused learning, focus strategy and product innovativeness emerge as its main predictors. In fast-paced, highly unpredictable market environments, managers can make use of these findings to their benefit in terms of elevating their firms’ innovativeness and performance levels.


Sign in / Sign up

Export Citation Format

Share Document