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Purpose – The study is prompted by the fact that most SMEs may not have the wherewithal or the willingness to devote time and resources to strategy formulation but are focused to reconsider this position by the pressures of globalization. Design/methodology/approach – Through a literature survey, a model suitable for SMEs is identified. An application of the selected model is presented. Applicability of strategic tools such as ERP in SMEs is examined. A case of a company, which has implemented ERP is analyzed. Findings – SMEs need strategy but the strategy depends on the complexity of the process. The case study points to the need for top management support and commitment. Research limitations/implications – It is difficult to get financial data from individual SMEs as most SMEs are proprietorship concerns. Practical implications – For countries, which are labor surplus, study on SMEs which are not capital intensive but create employment, has practical and social implication. Originality/value – This paper attempts at filling research gaps on competitive strategies for SMEs.
Business Strategy Series – Emerald Publishing
Published: Jul 5, 2011
Keywords: Strategy; Strategic management; Small to medium‐sized enterprises; Manufacturing resource planning; India
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