Existing strategy frameworks are designed for bigger firms with plentiful resources. They should not be liberally borrowed and advanced as solutions for SMEs, who face resource constraint. This very lack of resources impacts the competitive strategies that are feasible to SMEs. What’s more, the current literature in SME strategy fails to take into consideration potential competitive reactions from market incumbents in prescribing competitive strategies for SMEs. By ignoring competitive reactions, the literature therefore has no answers to questions about how bigger incumbent firms will respond when the market niches served by SMEs grow to a substantial size or become very lucrative. Nor does the current literature provide any strategic prescriptions for SMEs as to how they could compete successfully against bigger rivals who possess superior resources. [Hat tip to TheManager.org]
Authors: Lee Khai Sheang, Lim Guan Hua, Tan Soo Jiuan
Subjects: Small Business, Strategy
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