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The impact of applied strategies and competitive advantage creation on SME growth [Elektronski vir]
Širec, Karin ; Crnogaj, Katja, 1983-
Today's market conditions are forcing companies to adapt to changes in order to survive, grow, and be competitive. Such changes include a variety of strategic perspectives and constant creation and ...sustainability of competitive advantages, thereby enabling companies to compete and innovate in a dynamic environment. Previous studies have revealed that companies differ in their strategic orientation, with less empirical evidence showing their connections with companies' growth. Therefore, this paper investigates (based on the principles of entrepreneurship theory) the impact of applied strategies and elements of competitive advantage creation in small and medium-sized companies (SMEs) on companies' growth as operationalized through employment, sales, and assets growth (N = 201). Quantitative business research methods were used. The empirical research reveals interesting findings with regard to certain differences among Slovenian SMEs with respect to companies' strategic orientation. Firms' success as well as growth is a key to economic development and to the creation of wealth and employment. Therefore, more comprehensive understanding of this phenomenon is vital for future knowledge about factors that support and deter small firms' growth.
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