Sustainable competitive advantages of IT small innovation companies

N. Butryumova () and Ya. Abramov ()

Journal of Modern Competition, 2014, issue 5, 130-143

Abstract: The slowdown in the growth of the market increases competition among the companies of the ITsphere. It makes market players create new competitive advantages.Small innovative companies bring large input in the development of IT industry. They design and launch new creative ideas. However such companies take high risk of failure, caused by different factors. It is essential for economy to maintain such companies. That is why it is essential for them to understand how to get a sustainable competitive advantage in the turbulent environment. Surveys show that managerial skills and know-how are the strongest sustainable competitive advantages for such companies.Small innovative companies from IT sphere in Nizhny Novgorod were studied in 2013. Their sustainable competitive advantages were analyzed. Findings show peculiarities of such an activity for new companies in this sphere; it can allow them to be more competitive and to occupy stronger position on the market.Nizhny Novgorod was chosen for research due to high level of socio-economic and innovation development indicators. Findings are based on the structured interviews with representatives of15 small IT companies in Nizhny Novgorod.Small innovative companies from IT sphere in Nizhny Novgorod pay more attention to the product diversification based on the quality increase of client service. Clients are the most useful source of information in innovation process and in product adaptation. Personnel as key resource are attracted from competitors by interesting projects. Informal environment within the company is used for retaining key staff. Companies invest in designing of new product. In that case an image and reputation of the company make stronger the sustainability of its competitive advantage.

Keywords: sustainable competitive advantage; small innovation company; nizhny Novgorod; it (search for similar items in EconPapers)
Date: 2014
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