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Characteristics of Small and Medium-Scale Enterprises: Orientation, Innovation, Performance, and Competitiveness

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Open Innovation in Small Business

Abstract

The aim of this study is to explore the link and distinction between market orientation, product innovation capability, and marketing performance in determining competitive advantage among small and medium-scale enterprises (SMEs). This study employs a quantitative methodology and involves business owners and managers in three categories. A Bayesian regression model is used to test the proposed research model. The study’s results show a positive correlation between all proposed constructs and competitive advantage. Although these constructs have led firms to become more competitive, there are notable differences between small and medium-scale enterprises in terms of their characteristics related to market orientation, product innovation capability, marketing performance, and competitive advantage, which demand attention. This study attempts to make a valuable contribution to the expansion of knowledge in the marketing field by investigating and analyzing the relationships between constructs that are essential for defining and establishing a competitive edge. The ramifications of this study are envisaged to assist entrepreneurs and managers in making appropriate decisions. Firms must capitalize on their unique strengths if they remain competitive in an ever-changing market. SMEs are viewed as promising sources for creating jobs and driving economic growth in the emerging markets.

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Authors and Affiliations

  1. Faculty of Social and Political Science, Universitas Sumatera Utara, Medan, Indonesia

    Onan Marakali Siregar &  Selwendri

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  1. Onan Marakali Siregar
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Correspondence to Onan Marakali Siregar .

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Editors and Affiliations

  1. Universitas Medan Area, Medan, Indonesia

    Ahmad Rafiki

  2. ICD Business School of Paris, Groupe IGS, Halifax, NS, Canada

    Léo-Paul Dana

  3. Universitas Pembangunan Panca Budi, Medan, Indonesia

    Muhammad Dharma Tuah Putra Nasution

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Siregar, O.M., Selwendri (2023). Characteristics of Small and Medium-Scale Enterprises: Orientation, Innovation, Performance, and Competitiveness. In: Rafiki, A., Dana, LP., Nasution, M.D.T.P. (eds) Open Innovation in Small Business. Contributions to Environmental Sciences & Innovative Business Technology. Springer, Singapore. https://doi.org/10.1007/978-981-99-5142-0_11

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