Competitive Strategy as Practice: Obtaining Differential Advantage in the SME

摘要

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.