Business Strategies and Competitive Advantage: The Role of Performance and Innovation

Abstract

This study aims to examine the effect of business strategies to improve the competitive advantages of small and medium enterprises (SMEs). Further, our study considers the importance of performance and innovation as mediating variables in the relationship between business strategies and competitive advantage. The sample of the study consists of 150 SMEs in the construction and real estate industry. Our findings show that business strategies have a positive impact on competitive advantage. Better business strategies improve the competitive advantage of SMEs. Further, business performance and innovation also mediate the relationship between business strategies and competitive advantages. These results provide evidence of the importance of performance and innovation to improve the competitive advantage. It is suggested that SMEs improve their performance and innovation capability to strengthen their competitive advantages.

Do knowledge management and Key customer-focused enhances banks' performance and competitive advantage in Ethiopia?

“…Offering customers something that distinguishes them from goods that their rivals may sell in the market is the basis of a differentiation strategy (Farida &Setiawan, 2022 andIrungu et al, 2020). The main objective of implementing a differentiation strategy is to increase competitive advantage (Bankole et al, 2022).…”

Innovación y Desempeño Empresarial: Estudio Bibliométrico

“…Por su parte el concepto rendimiento empresarial se define como la medida de la productividad de los recursos comprometidos en un negocio, donde lo importante es garantizar su permanencia y su crecimiento (Ruiz-Palomo et al, 2022;Saliba et al, 2018;Yusof et al, 2023) y por ende la generación del valor para los inversionistas y que se mide a partir de las dimensiones calidad de productos, satisfacción de los clientes, productividad y proveedores (Farida & Setiawan, 2022).…”

Interplay in management practices, innovation, business environment, degree of competition and environmental policies: a comparative study

“…The environmental based management practices help to improve the image of firm's corporate social responsibility (Yang et al, 2019), and starting a trend in the business environment toward competitive corporate sustainability. The firms practice toward sustainable initiatives are essential to gain competitive reputation in the business environment (Prokop et al, 2022;Hermundsdottir and Aspelund, 2021), particularly, efficiency in management practices is essential and helpful to sustain competitive business environment (Bakhadirov and Farooq, 2022;Farida and Setiawan, 2022), for the better services among communities.…”

“…The firms practice toward sustainable initiatives are essential to gain competitive reputation in the business environment (Prokop et al. , 2022; Hermundsdottir and Aspelund, 2021), particularly, efficiency in management practices is essential and helpful to sustain competitive business environment (Bakhadirov and Farooq, 2022; Farida and Setiawan, 2022), for the better services among communities.…”