TITLE:
Competitive Strategy as Practice: Obtaining Differential Advantage in the SME
AUTHORS:
Barry Ardley, Sanngarri Naikar
KEYWORDS:
Competitive Strategy, Competitive Positioning, Practice Theory, Qualitative
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.1,
January
12,
2021
ABSTRACT: The purpose
of this paper is to examine the implementation of competitive strategy processes
in the SME. The topic was approached by using elements of practice theory to analyse
activity in a range of different SMEs. The research method adopted was based on
data collected from in-depth interviews with sixteen owner managers. Using practice
theory as an analytical framework, it was established that the majority of the firms
in the study utilised four key practices, in order to obtain advantages in the market
place. A central strategy contributing to a successful competitive position revolved around key customer service processes, supported by other practices concerned with
cost control, supplier and wider network partnerships. A range of practices are
revealed regarding how the smaller firm can achieve a competitive advantage in the
market place, having key implications for the management of strategy as practice,
future research and theory generation. The value of this paper is that little work
exists with regard to the application of practice theory in the SME. Consequently,
our research helps to fill a gap in understanding the key relationship that exists
between individual actors and the nature of the institutionally based strategic
practices they inhabit and reproduce.