Competitive Strategy as Practice: Obtaining Differential Advantage in the SME

Barry Ardley,Sanngarri Naikar

doi:10.4236/ojbm.2021.91011

Abstract

The purpose of this paper is to examine the implementation of competitive strategy processes in the SME. The topic was approached by using elements of practice theory to analyse activity in a range of different SMEs. The research method adopted was based on data collected from in-depth interviews with sixteen owner managers. Using practice theory as an analytical framework, it was established that the majority of the firms in the study utilised four key practices, in order to obtain advantages in the market place. A central strategy contributing to a successful competitive position revolved around key customer service processes, supported by other practices concerned with cost control, supplier and wider network partnerships. A range of practices are revealed regarding how the smaller firm can achieve a competitive advantage in the market place, having key implications for the management of strategy as practice, future research and theory generation. The value of this paper is that little work exists with regard to the application of practice theory in the SME. Consequently, our research helps to fill a gap in understanding the key relationship that exists between individual actors and the nature of the institutionally based strategic practices they inhabit and reproduce.

Highlights

Strategy as Practice in the SMECompetitive strategy and the development of the firm have long been discussed in the SME sector, both by academics and practitioners
We examine the approach adopted to competitive strategy by successful SMEs, based on research collected using a practice theory perspective
Whilst most of our respondents here are from the United Kingdom (UK), included in our sample, are firms from Singapore, and it would have been interesting to delve into the possible different types of practices that exist between firms in these countries

Summary

Introduction

Strategy as Practice in the SMECompetitive strategy and the development of the firm have long been discussed in the SME sector, both by academics and practitioners. Naikar merger, being transformed into a larger SME or other types of business, but there exist other ways in which an SME can progress, that do not necessarily mean a change in structure. In this context, for small and medium-sized enterprises, product development is often seen as a route to establishing a sound competitive position (Jones and Rowley, 2009). SMEs, in their search for a workable competitive strategy, face major challenges This includes keeping the firm’s capabilities, resources and routines up to date, maintaining entrepreneurial and managerial competences, acquiring new knowledge and combining the latter with existing organizational structures and routines Altinay et al (2016)

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Conclusion