Dealing with Resource Disadvantage: Generic Strategies for SMEs

Dealing with Resource Disadvantage: Generic Strategies for SMEs This paper identifies three generic strategies for SMEs taking into account explicitly their resource disadvantage. In addition to the much advocated niching strategy, we show that SMEs can free-ride on the bigger firm's market development efforts and/or they can form strategic alliances to force accommodation by the bigger rivals. Contrary to conventional arguments, we show that success in niching is not conditional upon the continued ignorance of the niche by the bigger firms. It is also not true that the SMEs must have a cost advantage vis-à-vis the bigger firms in order to niche or to free-ride successfully. The bigger firms faced with entry into their markets by SMEs encounter the classical chain-store paradox. The three generic strategies proposed here are designed to force accommodation by the bigger firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Dealing with Resource Disadvantage: Generic Strategies for SMEs

Loading next page...
 
/lp/springer_journal/dealing-with-resource-disadvantage-generic-strategies-for-smes-7iOZA8U3uJ
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1008085310245
Publisher site
See Article on Publisher Site

Abstract

This paper identifies three generic strategies for SMEs taking into account explicitly their resource disadvantage. In addition to the much advocated niching strategy, we show that SMEs can free-ride on the bigger firm's market development efforts and/or they can form strategic alliances to force accommodation by the bigger rivals. Contrary to conventional arguments, we show that success in niching is not conditional upon the continued ignorance of the niche by the bigger firms. It is also not true that the SMEs must have a cost advantage vis-à-vis the bigger firms in order to niche or to free-ride successfully. The bigger firms faced with entry into their markets by SMEs encounter the classical chain-store paradox. The three generic strategies proposed here are designed to force accommodation by the bigger firms.

Journal

Small Business EconomicsSpringer Journals

Published: Sep 30, 2004

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off