Design as a source of international competitive advantage for SMOPEC firms

Abstract

Since the rise of the international markets, firms need to be more creative and dynamic in order to gain success internationally. Design as an intangible non-price factor offers efficiently a unique way to achieve an international competitive advantage over competitors. This study presents theoretical consideration of design, its dimensions, and how design can provide a distinct competitive advantage in ever-increasing global competition. The theoretical consideration helps form a conceptual framework, conducted by descriptive research, emphasising the internal and external influences that affect the ways of using design as a source of international competitive advantage amongst small and open economies (SMOPECs). This study has found that design resource as firm's internal resource needs to be valuable and rare, and offer a unique way to generate a value creating competitive strategy. To get the utmost benefits of design, it should be used strategically and linked to a firm's business strategy and other key functions. The theoretical consideration further showed explicitly that a positive correlation exists between design and firm's business success. However, it becomes clear that there are differences between the insight of knowledge and the reality of using it.