Determinants of Small Trading Companies' Performance in High-Tech Industries

摘要

Small trading companies in high-tech industries have experienced increasingly high failure rates in the last decade. Their threats result from the prevalence of the Internet, short product life cycles, frequent product replacements, and high inventory risks. This study explores the strategies adopted by small trading companies to survive competition in high-tech industries. Findings from this study suggest that small trading companies in high-tech industries should operate in a variety of markets and product lines, focus on manufacturers that adopt differential pricing policy, provide customers with bundles of products and complementary services, and continuously innovate new methods of distribution or transactions. These strategies help small trading companies sustain their value-adding contributions in the distribution process.