Purpose The purpose of this paper is to measure and analyze the competitive advantage of micro, small and medium enterprises (MSMEs) based upon the Porter’s diamond framework. The major objective is to contribute toward better understanding of various determinants of the diamond model in context within Indian MSMEs. Design/methodology/approach Extent review of the literature has been done to identify various critical factors contributing to developing a competitive advantage. Exploratory factor analysis and internal consistency tests were performed to verify scales validity and reliability of measuring instrument (questionnaire). In research design, a case study approach has been used, in which MSMEs operating in the pharmaceutical, electrical and electronics, automobile, food and textile sectors were considered. Findings Study findings indicate that the pharmaceutical sector is more competitive followed by food (112.491) as revealed by the high value of surface area i.e. 150.931. The competitiveness among MSME sectors is mostly affected by demand conditions followed by firm strategy, structure and rivalry. Moreover, the score of diamond axes indicates significant difference with respect to determinants. For instance, in the textile sector, the determinants such as factor conditions and related and supporting industries scored low, for example, 4.710 and 4.280, respectively, which indicates it needs to be strengthened as this sector stands at last position with minimum surface area, for example, 67.398. Research limitations/implications Owing to the time and resource constraints, this study was conducted in MSMEs situated in the state of Himachal Pradesh, India, and thus generalizations of results are rather limited. Practical implications This study is one of the original being undertaken by authors which helps to underline the importance of various determinants which may help the MSME units to improve competitiveness by implementing effective competitive strategies. The study could be extended to other regions of the country. Originality/value This study is a result of extended research on competitiveness and provides an instrument to measure firm ability to be competitive. CEO’s, managers and policy makers from industries as well as government will be able to use this to evaluate their competitive positioning and identify key problem areas which required improvements.

Purpose – The purpose of this paper is to provide a conceptual framework which connects theory with straightforward application of statistical process control (SPC) in discovering and analyzing causes of variation to eliminate quality problems, which not only helps small and medium enterprises (SMEs) to improve their processes but also helps to attain competitive positioning. Design/methodology/approach – Based on theory and methodological framework, an experimental study has been presented. Use of histograms, X (bar) and R control charts and process capability plots and cause-and-effect diagrams have been made to analyse the assignable causes. A case from an SME engaged in machining of automotive parts is investigated. Findings – The results demonstrate the effectiveness of SPC in evaluating and eliminating quality problems. The machine capability (CP) and the process capability (CPk) values are also obtained to know inherent variation in the process. If these quality tools are applied with management support and apt knowledge, attained through proper training and motivation, then in this cut-throat competitive world, SMEs can establish their market position by enhancing the quality and productivity of their products/processes. Practical limitations/implications – From the study, the authors conclude that application of SPC requires thorough preparation, management commitment and human resource management through proper training, teamwork and motivation embedded with a sound measurement and control system. Originality/value – The present study bridges the gap between theory and practice by developing a conceptual framework and providing a practical support by illustrating a case from an SME engaged in machining of automotive parts.

Purpose The purpose of this paper is to examine the cost leadership competitive strategy’s (CLCS) impact on firm performances and the mediating role of quality management (QM) practices in the context of micro, small and medium enterprises (MSMEs). Design/methodology/approach A structures questionnaire data collected from 245 ISO 9000 certified MSMEs in India (65.1 per cent of response rate) have been utilised to understand the CLCS’s impact on firm performances. In the first step, the data adequacy tests were performed to check the reliability and validity of the questionnaire and survey data. After that, the partial mediating model (direct, indirect and total effect) along with structural equation modelling approach was employed to test the research hypotheses. Findings The study results revealed that no direct relationship exists between the CLCS and firm performances (0.12<β<0.13; p>0.05); however, QM practices entirely mediated their relationship (β=0.73, p<0.01). Among eight model parameters, with highest total effects on product quality improvement (β=0.6264) and process improvement (β=0.6028), the continuous improvement secured the rank 1, followed by information and analysis (β=0.2334) and supplier management (0.1839), respectively, at p<0.05. Based on the empirical results, it can be concluded that the continuous improvement via proper information and data analysis is the key to achieve CLCS’s goal in the MSMEs. Research limitations/implications The study results’ generalisation towards the large organisations is limited. The survey result findings applicability to other developing countries should also be treated with caution because the Indian Government subsidised the MSMEs selected for this study. The study results will help managers in implementing CLCS at the organisational level. The successful implementation will facilitate a competitive advantage in the local market and will motivate them to think globally. Originality/value The research observation and findings are expected to contribute to the strategic management in manufacturing industries. The study also confirms the existence of strategic management in MSMEs in a developing country. Furthermore, the major contribution is to understand the mediating role of QM practices, especially continuous improvement effect on the relationship between CLCS and firm performances in a developing country. The results indicated that the CLCS is only possible when the managers in the manufacturing sectors emphasis on the QM practices in their firms.

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PurposeThis paper examines the mediating role of manufacturing strategies in the relationship between competitive strategies and firm performance.Design/methodology/approachThis study gathered 250 responses from firms in a developing country's key manufacturing sectors, including mechanical, electronics, automotive, textile and food. First, descriptive statistics were applied to fix outliers like respondent biases, missing values and normality issues. Second, exploratory factors analysis (EFA) ensured data adequacy and homogeneity through Kaiser–Meyer–Olkin (KMO) and Bartlett tests. Finally, confirmatory factors analysis (CFA) was used to identify the interactions (direct, indirect and total effects) between latent variables representing manufacturing strategies (quality, cost, delivery and flexibility), competitive strategies (cost-leadership and differentiation) and firms' performance (sales growth and profitability). In total, two structural equation modelling (SEM) models (SEM-I, SEM-II) were created to test the hypotheses.FindingsOf the 40 items identified by the literature review, four were outliers, and three could not satisfy the EFA criteria (eigenvalue >1). Only 33 items could therefore reach CFA. SEM–I and SEM-II study results found no direct relationship between competitive strategies and firm performance (−0.03 = β = 0.08; p > 0.05). However, the findings revealed that cost-leadership could be an appropriate strategic choice and improved firms' performance if the quality and delivery are focussed (0.20 = β = 0.87; p < 0.001). While competitive strategies impact manufacturing strategies positively, the latter is only a mediator between the cost-leadership strategy and the firms' performance.Originality/valueThis research shows that the cost-leadership approach currently seems viable; however, flexibility and cost requirements were not satisfied due to infeasible product differentiation. These results will be beneficial to executives interested in investing in India's industries.