Competitive Advantage in Smes: Towards a Conceptual Framework

Posted: 4 Nov 2009

See all articles by Oswald Jones

Oswald Jones

Manchester Metropolitan University - Business School

Date Written: 2003

Abstract

Competitive advantage arises from the variousactivities a firm performs in designing, producing, marketing, delivering, andsupporting its product. A conceptual model of competitive advantage in smallfirms is constructed, drawing on current research in strategy andcompetitiveness in small and medium sized enterprises (SMEs). One of the components of the model is the change agent (intrapreneur), whomust have the necessary interpersonal skills to build both internal andexternal networks of knowledgeable contacts.The intrapreneur's willingness toforge external links will afford the firm better communication with customers,suppliers, and competitors.Internal connections allow the intrapreneur todisseminate new information throughout the organization. Because small organizations have the distinct advantage of being able torespond to changes in the marketplace more quickly than their largercompetitors, employees must be willing to develop new skills, while managersmust recruit and reward staff in a way that facilitates innovation. For SMEs, innovations that lead to competitive advantage take the form ofincremental product improvements based on ideas adopted from customers,competitors, and suppliers.Organizational flexibility is integral to mostSMEs' achievement of competitive advantage. (SAA)

Keywords: Corporate ventures, Innovation process, Social networks, Individual traits, Adaptability, Competitive advantages, Change agents, Corporate ventures, Adaptability, Human resource management

Suggested Citation

Jones, Oswald, Competitive Advantage in Smes: Towards a Conceptual Framework (2003). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1497733

Oswald Jones (Contact Author)

Manchester Metropolitan University - Business School ( email )

Aytoun Street
Manchester, M1 3GH
United Kingdom

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