Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka
Economic globalization has rapidly intensified the competition among businesses. Therefore, it is pivotal that SMEs follow competitive strategic positions and adopt strategic methods in order to confront the various challenges in this era. This study assessed the factors that determine the competiti...
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| Format: | Article |
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MDPI AG
2021-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/9/4/193 |
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| author | RPIR Prasanna JMHM Upulwehera BDTN Senarath GAKNJ Abeyrathne PSK Rajapakshe JMSB Jayasundara EMS Ekanayake Sisira Kumara Naradda Gamage |
| author_facet | RPIR Prasanna JMHM Upulwehera BDTN Senarath GAKNJ Abeyrathne PSK Rajapakshe JMSB Jayasundara EMS Ekanayake Sisira Kumara Naradda Gamage |
| author_sort | RPIR Prasanna |
| collection | DOAJ |
| description | Economic globalization has rapidly intensified the competition among businesses. Therefore, it is pivotal that SMEs follow competitive strategic positions and adopt strategic methods in order to confront the various challenges in this era. This study assessed the factors that determine the competitive strategic position of SMEs in the developing nations of Asia by considering the agro-based SMEs in Sri Lanka as a case study. By using primary data of 463 SMEs, the study estimated a binary logistic regression model to deal with the research subject. The findings revealed seven significant strategic variables: innovation in product and marketing, business exhibition in the local setting, gender, strategic market location, sustainable business practices, marketing efficiency, and business reputation and superior services. Moreover, the study identified and commented on seven insignificant variables: specialization in production, experience in the business field, experience in attending business exhibitions at overseas setting, credit market accessibility, provision of high-quality products, research and development, and strategic firm location, which are relevant in developed countries. Therefore, the government and policymakers must initiate measures to establish a more favorable business environment for SMEs to gain competitive advantage from these variables in the near future to permit an ameliorated and strong SME sector in Sri Lanka. |
| first_indexed | 2024-03-10T04:16:43Z |
| format | Article |
| id | doaj.art-22072528d1a440bc97415f35ad6a0e39 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-10T04:16:43Z |
| publishDate | 2021-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-22072528d1a440bc97415f35ad6a0e392023-11-23T07:59:14ZengMDPI AGEconomies2227-70992021-12-019419310.3390/economies9040193Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri LankaRPIR Prasanna0JMHM Upulwehera1BDTN Senarath2GAKNJ Abeyrathne3PSK Rajapakshe4JMSB Jayasundara5EMS Ekanayake6Sisira Kumara Naradda Gamage7Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaDepartment of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaDepartment of Operations Management, University of Peradeniya, Peradeniya 20400, Sri LankaDepartment of Census and Statistics, Research and Special Studies Division, Battaramulla 10120, Sri LankaDepartment of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaDepartment of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaDepartment of Social Sciences, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaDepartment of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri LankaEconomic globalization has rapidly intensified the competition among businesses. Therefore, it is pivotal that SMEs follow competitive strategic positions and adopt strategic methods in order to confront the various challenges in this era. This study assessed the factors that determine the competitive strategic position of SMEs in the developing nations of Asia by considering the agro-based SMEs in Sri Lanka as a case study. By using primary data of 463 SMEs, the study estimated a binary logistic regression model to deal with the research subject. The findings revealed seven significant strategic variables: innovation in product and marketing, business exhibition in the local setting, gender, strategic market location, sustainable business practices, marketing efficiency, and business reputation and superior services. Moreover, the study identified and commented on seven insignificant variables: specialization in production, experience in the business field, experience in attending business exhibitions at overseas setting, credit market accessibility, provision of high-quality products, research and development, and strategic firm location, which are relevant in developed countries. Therefore, the government and policymakers must initiate measures to establish a more favorable business environment for SMEs to gain competitive advantage from these variables in the near future to permit an ameliorated and strong SME sector in Sri Lanka.https://www.mdpi.com/2227-7099/9/4/193agro-based industriescompetitive advantagecompetitive strategic positioneconomic globalizationSMEssurvival strategies |
| spellingShingle | RPIR Prasanna JMHM Upulwehera BDTN Senarath GAKNJ Abeyrathne PSK Rajapakshe JMSB Jayasundara EMS Ekanayake Sisira Kumara Naradda Gamage Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka Economies agro-based industries competitive advantage competitive strategic position economic globalization SMEs survival strategies |
| title | Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka |
| title_full | Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka |
| title_fullStr | Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka |
| title_full_unstemmed | Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka |
| title_short | Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka |
| title_sort | factors determining the competitive strategic positions of the smes in asian developing nations case study of smes in the agricultural sector in sri lanka |
| topic | agro-based industries competitive advantage competitive strategic position economic globalization SMEs survival strategies |
| url | https://www.mdpi.com/2227-7099/9/4/193 |
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