Casual Relationships Affecting Competitive Advantage of Small and Medium Enterprises
The purpose of this study is to explore relationships and factors affecting competitive advantage of small and medium enterprises. Literature review indicates that factors which affect competitive advantage of small and medium enterprises are entrepreneurial orientation, marketing capability, and innovativeness. By entrepreneurial orientation, there are 4 significant aspects such as autonomy, proactiveness, competitive aggressiveness, and risk taking. Moreover, marketing capability consists of 4 aspects such as product capability, channel capability, price capability, and marketing promotion capability. There are 2 aspects of innovativeness such as product innovativeness and process innovativeness. However, competitive advantage of small and medium enterprises is affected by 3 important factors, including cost leadership, differentiation, and quick response. Literature review in this academic article will suggest a framework of the study for further business benefits.
Index Terms - Entrepreneurial Orientation, Marketing Capability, Innovativeness and Competitive Advantage of Small and Medium Enterprises.