Abstract
Ph.D. (Business Management)
This study is premised on the recognition that small and medium enterprises have a potential to significantly contribute to national economies through job creation, economic growth and innovation. However they have limitations with regard to resources that are required to achieve a competitive advantage, a prerequisite to survive and be successful in the globalised economy that is epitomised by intense competition. The potential that these enterprises hold can only be realised when they can compete effectively in the globalised market.
The literature review conducted identified that there are a number of resources and capabilities that enterprises require to achieve a competitive advantage. There are however specific resources and capabilities that are pertinent to achieving and retaining competitive advantage under the prevailing intense competition emanating from the globalisation process. These are technology know-how, finance, human resources and leadership capabilities, the independent variables in this study. Given the resource limitations experienced by small and medium enterprises, literature reviewed further indicated that interorganisational relationships can be a source for resource gaps experienced by enterprises. In particular the relationships with large enterprises are considered to be an effective platform for accessing resources and capabilities by small and medium enterprises. However, it is recognised in literature that the identified resources and capabilities must enable small and medium enterprises to innovate, produce quality products and/or services, be efficient and effectively respond to customers if competitive advantage is to be achieved. In this study innovation, quality, efficiency and customer responsiveness were identified as mediating variables.
In view of the problem identified above, that is achieving and maintaining competitive advantage in the globalised economy by small and medium enterprises, the primary objective of this study is to establish how interorganisational relationships with large enterprises influence the competitive advantage of small and medium enterprises. Competitive advantage is the dependent variable in this study and was measured in terms of cost reduction and unique and/or improved products and/or services.