The Impact of Business Strategy on Competitive Advantage and Performance of Small & Medium Enterprises in Jordan

Abstract

Purpose: This study also examines the impact of business strategies on achieving competitive advantage and improved organizational performance in Jordan-based SMEs. Theoretical framework: Competitions keep an enterprise active and alive. Especially today, when business arenas are comparatively more challenging, demand for organizational excellence. As a result, business strategies are required to be effective and efficient enough to cope with these challenges. Design/methodology/approach: For an empirical investigation, we randomly selected a sample of n= 300 employees currently working in Small and Medium Enterprises in Jordan. We also executed the Structural Equation Modelling technique to examine the extent to which, the data validates proposed relationships between study variables. Findings: Results indicated a strong significant relationship between business strategy and vision & objectives (p≥ .000), core values (p≥ .000), SWOT analysis, and resource allocation plan (p≥ .000). Besides these factors, findings also showed a positive correlation with sustained competitive advantage (p≥ .000), and improved performance (p≥ .000). Research, Practical & Social implications: By keeping in view the importance of business strategy, we suggest that an organization can achieve dynamic competitive advantages, only by effective business strategies that can help an organization to achieve its desired goals. Originality/value: The findings suggest several consequences forth fields of business and Performance of Small & Medium Enterprises. Additionally, the Middle East nations, including the Jordanian business environment, have had numerous challenge that this study aids in resolving. through achieve competitive advantage and improved organizational performance.