Abstract
There is a lack of studies on innovations and competitiveness in Small & Medium Enterprises (SMEs) in Saudi Arabia; to fell this gap, this paper will study change as the competitive advantage for Small and Medium Enterprises: the case for the Kingdom of Saudi Arabia. The study aims to explore different practices of SMEs in the Kingdom of Saudi Arabia to examine the impact of innovation strategies (Organizational, Product, Process, and Market) on the competitive advantage of SMEs. The study was conducted on one hundred and forty-seven (147) SMEs that are practicing different activities in the Kingdom of Saudi Arabia. The study's analysis indicates that most of the enterprises were young (operation years were less than ten years), which shows the strong need to apply innovative strategies to maintain their position and competitiveness in the market. Competitive advantage enables the firm to utilize its resources efficiently and maintain high levels of quality performance. The results show that the correlation between Innovation strategies such as product innovation strategy, market innovation strategy, process innovation strategy, and organizational innovation strategy practiced by SMEs in the Kingdom of Saudi Arabia and competitiveness was Positive. Therefore, it indicates that different innovation strategies were significantly influencing the competitiveness of the SMEs. To remain a competitor enterprise in the market is not a natural or an easy attempt, and it can be challenging for SMEs, especially without the needed knowledge and support. Findings and recommendations of the study can be used as a guideline for SMEs. Also, emphasizing on the importance of education that plays a vital role in SMEs innovations. It is essential to establish with different research centers and universities in the Kingdom of Saudi Arabia programs or activities that focus on changes in business, and it will result in gaining competitive advantage and sustainability for Small and Medium Enterprises in the market. Keywords: competitive advantage, innovation, small enterprises, medium enterprises.
Highlights
The world of business is characterised by high instability and continuously changing
The results indicated that Innovation strategies such as product innovation strategy, market innovation strategy, process innovation strategy, and organisational innovation strategy practised by Small & Medium Enterprises (SMEs) in the Kingdom of Saudi Arabia showed that the contributing relationship between innovation and competition was Positive
There is a significant correlation between Innovation strategies and Competitive advantage, which answer the question about the role of innovation in building competitive advantage in SMEs
Summary
The world of business is characterised by high instability and continuously changing. Innovations as the Competitive Advantage for Small and Medium Enterprises: the Case for the Kingdom of Saudi Arabia ability that is gained from attributes and resources and permits the firm to perform at a more substantial level than others within the same trade He suggested that call should be created by a firm whether to try to achieve a competitive advantage by lowering the price of production than for its competitors or differentiation and sell them at a premium price. Despite that innovation results in positive organisational outcomes, it is challenging for small and medium enterprises to turn these impacts into an improved competitive advantage, especially in the light of high competitiveness in today's markets (Wingwon, 2012). Adhikari (2011) study was about using and exploiting new ideas, which plays a role in producing new products and improving the services in the market He emphasised the relationship between innovation and competitive advantage as one of the core elements in strategic management.
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