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

Author

Listed:
  • RPIR Prasanna

    (Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • JMHM Upulwehera

    (Department of Economics, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • BDTN Senarath

    (Department of Operations Management, University of Peradeniya, Peradeniya 20400, Sri Lanka)

  • GAKNJ Abeyrathne

    (Department of Census and Statistics, Research and Special Studies Division, Battaramulla 10120, Sri Lanka)

  • PSK Rajapakshe

    (Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • JMSB Jayasundara

    (Department of Environmental Management, Rajarata University of Sri Lanka, Mihintale 50300, Sri Lanka)

  • EMS Ekanayake

    (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)

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.

Suggested Citation

  • RPIR Prasanna & JMHM Upulwehera & BDTN Senarath & GAKNJ Abeyrathne & PSK Rajapakshe & JMSB Jayasundara & EMS Ekanayake & Sisira Kumara Naradda Gamage, 2021. "Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka," Economies, MDPI, vol. 9(4), pages 1-24, December.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:193-:d:695860
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    References listed on IDEAS

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