Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka

Prasanna Rpir, Upulwehera Jmhm, Senarath Bdtn, Abeyrathne Gaknj, Rajapakshe Psk, Jayasundara Jmsb, Ekanayake Ems and Sisira Kumara Naradda Gamage
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Prasanna Rpir: Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka
Upulwehera Jmhm: Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka
Senarath Bdtn: Department of Operations Management, University of Peradeniya, Peradeniya 20400, Sri Lanka
Abeyrathne Gaknj: Department of Census and Statistics, Research and Special Studies Division, Battaramulla 10120, Sri Lanka
Rajapakshe Psk: Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka
Jayasundara Jmsb: Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka
Ekanayake Ems: Department of Social Sciences, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka
Sisira Kumara Naradda Gamage: Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka

Economies, 2021, vol. 9, issue 4, 1-24

Abstract: Economic globalization has rapidly intensified the competition among businesses. Therefore, it is pivotal that SMEs follow competitive strategic positions and adopt strategic methods in order to confront the various challenges in this era. This study assessed the factors that determine the competitive strategic position of SMEs in the developing nations of Asia by considering the agro-based SMEs in Sri Lanka as a case study. By using primary data of 463 SMEs, the study estimated a binary logistic regression model to deal with the research subject. The findings revealed seven significant strategic variables: innovation in product and marketing, business exhibition in the local setting, gender, strategic market location, sustainable business practices, marketing efficiency, and business reputation and superior services. Moreover, the study identified and commented on seven insignificant variables: specialization in production, experience in the business field, experience in attending business exhibitions at overseas setting, credit market accessibility, provision of high-quality products, research and development, and strategic firm location, which are relevant in developed countries. Therefore, the government and policymakers must initiate measures to establish a more favorable business environment for SMEs to gain competitive advantage from these variables in the near future to permit an ameliorated and strong SME sector in Sri Lanka.

Keywords: agro-based industries; competitive advantage; competitive strategic position; economic globalization; SMEs; survival strategies (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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