The Competitive Advantage of Small and Medium Enterprises (SMEs): The Role of Entrepreneurship and Luck

2010 ◽  
Vol 23 (3) ◽  
pp. 373-391 ◽  
Author(s):  
Jeen Wei Ong ◽  
Hishamuddin Bin Ismail ◽  
Gerald Guan Gan Goh
Keyword(s):  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Medium Enterprises

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

scholarly journals Effect of Organisational Culture on Sustainable Growth of SMEs: Mediating Role of Innovation Competitive Advantage

2021 ◽  
pp. 1-19
Author(s):  
Danjuma Tali Nimfa
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Organisational Culture ◽  
Sustainable Growth ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The purpose of this study is to investigates the effect of organisational culture on the sustainable growth of SMEs; mediating role of innovation competitive advantage. The electrical products small and medium enterprises was the realm of this study. The partial least squares structural equation modelling (PLS-SEM) via SmartPLS was employed to test the hypotheses. Finding of this study revealed that organisational culture has a direct positive significant effect on sustainable growth of SMEs and innovation competitive advantage. Moreover, the study confirmed that innovation competitive advantage has a direct positive significant relationship with sustainable growth of SMEs. Furthermore, the findings established that innovation competitive advantage has fully mediates the relationship between organisational culture and sustainable growth of electrical manufacturing SMEs in Nigeria. This study sets out purposeful measures to encourage owner-mangers of the electrical manufacturing SMEs to maintain as well as installing innovative organisational culture that enhance efficient sustainable growth of SMEs and embedding innovation competitive advantage as a viable strategic mechanism in the enterprise. This study is distinctive because it tries to fill the small and medium enterprises gaps through encouraging managers of the electrical manufacturing SMEs to always strategize for better sustainable growth in the rapidly changing business environment. Keywords: Organisational culture, Sustainable growth of SMEs, Innovation competitive advantage, PLS-SEM (SmartPLS).

scholarly journals Competitive advantage to enhance internationalization and marketing performance woodcraft industry: A perspective of resource-based view theory

2021 ◽  
pp. 45-56 ◽  
Author(s):  
I Putu Gde Sukaatmadja ◽  
Ni Nyoman Kerti Yasa ◽  
Henny Rahyuda ◽  
Made Setini ◽  
Ida Bagus Agung Dharmanegara
Keyword(s):  
Competitive Advantage ◽  
Significant Influence ◽  
Product Innovation ◽  
Small And Medium Enterprises ◽  
International Market ◽  
Resource Based View ◽  
Marketing Performance ◽  
Industry Sector ◽  
Medium Enterprises

The increasingly tight competition has caused problems for small and medium enterprises (SMEs) in increasing their marketing performance. During the last few years, the marketing performance of SMEs operating in the Project woodcraft industry sector in the Badung Bali has moved downwards. The goal of this research is to develop knowledge in the fields of Strategic Management, specifically regarding product innovation to achieve a competitive advantage in an attempt to improve internationalization and marketing performance. The population in this research is all of the SMEs operating in the woodcraft industry sector and is based in Badung Bali. The sample size in this research is determined based on Slovin's formula and the total includes 100 units of SME operating in the woodcraft industry. The method used is the quantitative approach, which examines the role of competitive advantage in mediating the influence of product innovation on internationalization and marketing performance. Based on the research results, product innovation has a positive and significant influence on both, competitive advantage and internationalization. Product innovation and competitive advantage have positive and significant influences on marketing performance. Competitive advantage has a positive and significant influence on internationalization. Meanwhile, it has been revealed that competitive advantage can mediate the influence of product innovation on marketing performance and competitive advantage can mediate the influence of product innovation on the internationalization of SME operating in the Project woodcraft industry sector in Badung Bali. Based on these findings, the project woodcraft industry SME in Badung Bali is advised to be more innovative in producing their products, so that there would be an increase in marketing performance in the international market. It is also recommended for subsequent researchers to add in other variables, such as product quality and market orientation, to enrich the information attained.

HRM Evolution in SMEs

2014 ◽  
pp. 377-392
Author(s):  
Pedro Ribeiro Novo Melo ◽  
Carolina Feliciana Machado
Keyword(s):  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Global Scale ◽  
European Countries ◽  
Empirical Literature ◽  
International Context ◽  
Recruitment And Selection ◽  
Business Competitiveness ◽  
Medium Enterprises

The enormous business competitiveness at a global scale and the constant search for sources of competitive advantage have led several scholars and practitioners to implement their studies to pay attention to the potential of HRM in the success of companies. Portugal, like others European countries, is not set apart from the question of HRM. However, it is rare and recent to find empirical literature on practice of HRM in Portugal, and even more scarce to find literature that focuses on SMEs. This study clarifies the situation of SMEs in the Portuguese context, serving as a basis for discussion on HRM in SMEs in an international context. This chapter looks to understand the role of recruitment and selection on Human Resource Management (HRM) at Small and Medium Enterprises (SMEs) in Portugal, as well as contribute to a better knowledge of this area, still little studied. More particularly, it aims to understand the level of implementation of recruitment and selection. Data was collected by questionnaire from 512 small and medium enterprises in Portugal, and from these, 3 hypotheses were formulated and tested using the SPSS program. From this study, the authors conclude that HRM is not yet a reality in SMEs. Recruitment and selection are the HRM practices more commonly used in SMEs, but in an informal way.

STRATEGI PENINGKATAN KEUNGGULAN BERSAING IKM: PERAN PEMBELAJARAN ORGANISASI DAN INOVASI

2019 ◽  
Vol 4 (1) ◽  
pp. 45-56
Author(s):  
Edi Sugiono ◽  
Suryono Efendi
Keyword(s):  
Organizational Learning ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Equation Modeling ◽  
Medium Enterprises

This study aims to analyze the role of organizational learning and innovation in improving the competitive advantage of small and medium enterprises (SMEs) in the Mojokerto area. The study was conducted using primary data obtained from the distribution of questionnaires. In total, there were 100 IKM leaders in Mojokerto who became the respondents in this study. Hypothesis testing is done by using Partial Least Square Structural Equation Modeling (SEM-PLS). The results of the study show that organizational learning and innovation have a positive and significant effect on improving SMEs’ competitive advantage. The results of this study also prove that innovation can mediate the relationship between organizational learning and SMEs’ competitive advantage.

scholarly journals PENENTU KEUNGGULAN BERSAING PADA UMKM : APAKAH KOMPETENSI DIGITAL DAN ORIENTASI KEWIRAUSAHAAN PENTING ?

AdBispreneur ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 63
Author(s):  
Sofi Maya Sari ◽  
Yunizar Yunizar ◽  
Dina Sartika
Keyword(s):  
Human Resources ◽  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Digital Competence ◽  
Technological Developments ◽  
Medium Enterprises ◽  
Positive Effect

One of the efforts to improve the competitive advantage in rapid technological developments, especially in Micro, Small and Medium Enterprises (MSMEs), is to maximize the potential of human resources. However, at this time human resources MSMEs’owners are not acceptable in digital competence and low ability to improve entrepreneurial orientation. The role of human resources consisting of digital competence and entrepreneurial orientation leads to the competitive advantages of micro, small and medium enterprises. The study used a quantitative approach, using multiple regression analyses to analyze a questionnaire sample of 180 micros, small, and medium enterprises manufacture of food products in Bandung City. Results showed digital competence and entrepreneurial orientation have positive effect on competitive advantage. Salah satu usaha untuk dapat meningkatkan keunggulan bersaing ditengah perkembangan teknologi yang pesat khususnya pada Usaha Mikro, Kecil, dan Menengah (UMKM) adalah dengan memaksimalkan potensi dari sumber daya manusia yang dimilikinya. Namun begitu saat ini sumber daya manusia atau pelaku usaha mikro, kecil dan menengah kurang akseptabel dalam penguasaan kompetensi digital serta rendahnya kemampuan dalam meningkatkan sikap orientasi kewirausahaannya. Peranan sumber daya manusia yang terdiri dari kompetensi digital dan orientasi kewirausahaan ini mengarah kepada keunggulan bersaing usaha mikro, kecil, dan menengah. Penelitian ini menggunakan pendekatan kuantitatif, dengan menggunakan analisis regresi berganda untuk menganalisis sampel kuisioner sebanyak 180 pelaku UMKM industri pengolahan makanan di Kota Bandung. Hasil penelitian mengungkapkan bahwa kompetensi digital dan orientasi kewirausahaan berpengaruh positif terhadap keunggulan bersaing.

The Role of SMEs’ Innovation and Learning Orientation in Mediating the Effect of CSR Programme on SMEs’ Performance and Competitive Advantage

2018 ◽  
Vol 19 (3_suppl) ◽  
pp. S21-S38 ◽  
Author(s):  
Ratnawati ◽  
Budi Eko Soetjipto ◽  
F. Danardana Murwani ◽  
Hari Wahyono
Keyword(s):  
Corporate Social Responsibility ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Model ◽  
Analytical Tool ◽  
Learning Orientation ◽  
Medium Enterprises ◽  
Corporate Social

The purpose of this study is to investigate the role of SMEs’ innovation and learning orientation in mediating the effect of corporate social responsibility (CSR) programme on SMEs’ performance and competitive advantage in Malang. This research uses explorative design by distributing questionnaires on small and medium enterprises (SMEs). The analytical tool used is structural equation model (SEM). The results show that CSR programme has a significant effect on SMEs’ innovation, learning orientation and SMEs’ performance. The discussions and implications of this research contribute to the SME sector as it is proved to be able to increase SMEs’ innovation, learning orientation, SMEs’ performance and competitive advantage. This study is limited only to Malang-Indonesia SMEs receiving CSR programme assistance.

scholarly journals The role of entrepreneurship in achieving competitive advantage

2021 ◽  
Vol 12 (01) ◽  
Author(s):  
Hoda Ahmed Ibraheem ◽  
◽  
Alhanof Mohammed Alshuraym ◽  
Keyword(s):  
Saudi Arabia ◽  
Competitive Advantage ◽  
Analytical Approach ◽  
Positive Relationship ◽  
Small And Medium Enterprises ◽  
Kingdom Of Saudi Arabia ◽  
Medium Enterprises

Despite the importance of promoting entrepreneurship in business activities to achieve a competitive advantage, a large proportion of business firms fail to make entrepreneurship a reality in their work. In addition, these constraints make it possible to gain a competitive advantage in the problems of the market in particular that modern markets are full of rivals and fast-paced changes in various variables. In light of this, the researcher carried out this study to investigate the role of entrepreneurship in achieving competitive advantage in SMEs. By using the descriptive-analytical approach, developing a questionnaire tool and distributing it to a sample of 100 administrators working in SMEs in Saudi Arabia. The results of the study showed that there is a positive relationship in the role of entrepreneurship in achieving competitive advantage in small and medium enterprises in the Kingdom of Saudi Arabia.

scholarly journals The role of electronic management in achieving a competitive advantage for small and medium enterprises. Field study on the Jeddah governorate: دور الإدارة الإلكترونية في تحقيق ميزة تنافسية للمشروعات الصغيرة والمتوسطة- دراسة ميدانية على محافظة جدة -

2019 ◽  
Vol 3 (7) ◽  
Author(s):  
Ebtisam AbdulQader Fath El-Din
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
High Performance ◽  
General Framework ◽  
Small And Medium Enterprises ◽  
Government Agencies ◽  
Statistical Relationship ◽  
Medium Enterprises ◽  
High Performance Organization

  The aim of the study is to clarify the role of electronic management in creating a high-performance organization, identify the factors necessary for electronic management, identify the obstacles that can face SMEs in transition to electronic management, and identify the general framework of a small or medium company. The researcher used the descriptive analytical method and the questionnaire as a study tool. The study sample consisted of 250 managers of IT units in small and medium enterprises in Jeddah, Saudi Arabia. The study reached a set of findings, namely, there is a positive correlation between the effectiveness of performance in small and medium enterprises and the use of concepts and tools of electronic management. There is a positive statistical relationship between the effectiveness of performance in the organization and the achievement of competitive advantage in small and medium enterprises. There is a positive statistical relationship between the estimated costs of electronic management in the work of small and medium enterprises and the desire to move towards the use of electronic management by owners of small and medium enterprises. The low level of information technology available to SMEs. The study recommended the need to adopt the electronic management of small and medium enterprises, and the need to support government agencies to this trend.    

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