Strategic orientation, innovation patterns and performances of SMEs and large companies

Abstract

Purpose -The purpose of this study is to examine the similarities and differences in the strategic orientation and innovation patterns of small to medium-sized enterprises (SMEs) and large companies and to investigate their implications for market performance. Design/methodology/approach -Miles and Snow's strategic typology is applied to 592 new products to determine their companies' strategic orientations. Data collected over a two-year period by 62 companies in the Italian yogurt industry are analyzed. Findings -The results show that, while large firms operate with a "prospector" orientation, SMEs have a "defender" or "reactor" orientation. Only a small number of SMEs can innovate successfully, and an ex post facto investigation reveals that these firms follow an "open innovation model". Originality/value -The findings fill a gap in the literature by clarifying the similarities and differences in the strategic orientations, innovation patterns and performance of SMEs and large companies in a dynamic industry environment. The study also provides insights for managers in new food product development who are concerned about low rates of innovation and high rates of failure.

Hubungan Antara Orientasi Strategis Dan Kemampuan Inovasi Berbasis Layanan Studi Pada Umkm Kreatif Di Indonesia

“…Berdasarkan Kumar et al (2012), setiap organisasi, baik itu berukuran kecil, menengah ataupun besar memiliki persepsi atau sudut pandang masing-masing mengenai lingkungan industri bisnis mereka. Hal inilah yang membuat munculnya konsep orientasi strategis dianggap sebagai konsep yang juga krusial untuk perusahaan dengan skala kecil dan menengah.…”

“…Hal ini mengakibatkan pelaku usaha dalam industri menghadapi kondisi bias pada informasi pasar. Pemahaman terhadap pasar akan sangat tergantung pada perspektif pelaku usaha pada pelanggan atau disebut juga orientasi pelanggan (Cheng dan Krumwiede, 2010;Kumar et al 2012).…”

“…Hasil ini sejalan dengan argumen dari Kumar et al (2012) yang menyatakan bahwa untuk bisnis dengan skala kecil dan menengah, pelaku bisnis cenderung melakukan tindakan kooperatif dengan sesama bisnis kecil dan menengah dalam satu industri untuk mengatasi masalah keterbatasan pada scope bisnis yang terbatas (liability of smallness) danmelakukan adaptasi strategis yang baik pada lingkungan bisnis yang berubah-ubah. Pada industri kreatif juga diketahui bahwa sebuah produk atau jasa yang ditawarkan oleh pelaku usaha diharapkan mampu memiliki nilai tambah yang tinggi, unik dan sesuai untuk target pelanggan masing-masing.…”

Investigation of the Influence of Strategy Orientation Dimensions on Performance of Companies which are Active in Food Industries in Alborz Province

“…This interaction can be reflected in the form of establishment of new businesses, entering international markets or formation of organizational strategies. An investigation of research literature strategy orientation has positive impacts on innovation, competitiveness and organizational performance (Kumar et al, 2012). In fact, strategy orientation involves models for responding to an environment in order to increase performance and competitive advantage (Hambrick, 1983).…”

Export Market Orientation for Manufacturing Small-Medium Enterprises in East Java Indonesia

“…The large enterprises however has the advantage of economies of scale, bargaining power of suppliers and distributors, the brand that has been known, experience curve effects, monopolistic powers to determine the price below the market price, as well as access to resources [5]. While SMEs have different characteristics than large firms, such as: the business is run and controlled under the supervision of a person that is the owner of the SME [6]; self-directed, work-based dan informal-learning [7]; less excel in product categories, defensive when the business environment changes, even more open to resign if better opportunities [8].…”