Abstract
It is often claimed that, especially in mature industries, European firms can compete against low-cost NICs firms only if they are able to implement quality based strategies. The emphasis on the strategic role of quality, however, often leads to underestimate the extent of organizational and economic efforts, needed to turn quality from a potential opportunity into a real advantage. The lack of a thorough comprehension of the requirements of a quality based strategy can question the effectiveness of the investments some firms plan to improve their quality level. These firms can in fact remain “stuck in the middle”, if they do not have enough resources to turn quality into a source of sustainable competitive advantage.
This paper is aimed at a better comprehension of both benefits and costs of a quality based strategy, with regard to a specific class of firms, Small Size Firms (SSFs), where a strategic use of quality is more difficult. The paper is articulated into two parts. Part one discusses the main obstacles facing the adoption of a quality based strategy by SSFs. A dynamic model for the adoption of this strategy over time, aimed at minimizing the risks for SSFs, is also presented.
Part two describes the results of an empirical research, aimed at verifying the viability of quality based strategies in an industry composed only by SSFs, the shoe-machinery industry. The empirical research supports the viability of the model presented in the first part of the paper.
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Azzone, G., Cainarca, G.C. The strategic role of quality in small size firms. Small Bus Econ 5, 67–76 (1993). https://doi.org/10.1007/BF01539319
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DOI: https://doi.org/10.1007/BF01539319