IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v13y1989i3p21-36.html
   My bibliography  Save this article

Profitable Small Business Strategies under Different Types of Competition

Author

Listed:
  • Radha Chaganti
  • Rajeswararao Chaganti
  • Vijay Mahajan

Abstract

This study empirically examines the profit impact of different strategies under four different types of competition: 1. Low-intensity price and promotion competition; 2. Price competition; 3. Promotion competition; and 4. High-intensity price and promotion competition. The study finds that broad product scope is a key determinant of a firm's profitability in low-intensity price and promotion competition, price competition, and high-intensity price and promotion competition. However, under promotion competition, quality-image orientation was the most profitable strategy.

Suggested Citation

  • Radha Chaganti & Rajeswararao Chaganti & Vijay Mahajan, 1989. "Profitable Small Business Strategies under Different Types of Competition," Entrepreneurship Theory and Practice, , vol. 13(3), pages 21-36, April.
    • Handle: RePEc:sae:entthe:v:13:y:1989:i:3:p:21-36
    DOI: 10.1177/104225878901300304
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/104225878901300304
    Download Restriction: no
    File URL: https://libkey.io/10.1177/104225878901300304?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amason, Allen C. & Shrader, Rodney C. & Tompson, George H., 2006. "Newness and novelty: Relating top management team composition to new venture performance," Journal of Business Venturing, Elsevier, vol. 21(1), pages 125-148, January.
    2. Lin Song & Li Jing, 2017. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 989-1012, December.
    3. Edelman, Linda F. & Brush, Candida G. & Manolova, Tatiana, 2005. "Co-alignment in the resource-performance relationship: strategy as mediator," Journal of Business Venturing, Elsevier, vol. 20(3), pages 359-383, May.
    4. Wadim STRIELKOWSKI, 2012. "Factors That Determine Success Of Small And Medium Enteprises. The Role Of Internal And External Factors," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(3(21)/ Fa), pages 334-350.
    5. Soto Alvarez, J.M., 1998. "Estrategias genéricas de entrada para una nueva empresa: influencia en los resultados," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 10, pages 147-163, Diciembre.
    6. de Vries, A.G.B. & Pennings, H.P.G. & Block, J.H., 2013. "Trademark or patent? The effects of market structure, customer type and venture capital financing on start-ups' IP decisions," ERIM Report Series Research in Management ERS-2013-002-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Ensley, Michael D. & Pearson, Allison W. & Amason, Allen C., 2002. "Understanding the dynamics of new venture top management teams: cohesion, conflict, and new venture performance," Journal of Business Venturing, Elsevier, vol. 17(4), pages 365-386, July.
    8. Lin Song & Li Jing, 0. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    9. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    10. Sushil Kumar & Satyasiba Das, 2020. "Integrated framework of strategic orientation, value offerings and new venture performance," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(1), pages 3-17, March.
    11. Brush, Candida G. & Chaganti, Radha, 1999. "Businesses without glamour? an analysis of resources on performance by size and age in small service and retail firms," Journal of Business Venturing, Elsevier, vol. 14(3), pages 233-257, May.
    12. Dan Li & Manuel Portugal Ferreira, 2006. "The Evolutionary Model of Entrepreneurial Firms' Dependence on Networks: Going beyond the start-up stage," Notas Económicas, Faculty of Economics, University of Coimbra, issue 24, pages 48-63, December.
    13. Jiawen Chen & Linlin Liu, 2018. "Profiting from Green Innovation: The Moderating Effect of Competitive Strategy," Sustainability, MDPI, vol. 11(1), pages 1-23, December.
    14. Robert N. Lussier & Matthew C. Sonfield & Joel Corman & Mary McKinney, 2001. "Strategies Used by Small Business Entrepreneurs," American Journal of Business, Emerald Group Publishing, vol. 16(1), pages 29-38.
    15. Jeffrey G. Covin & Teresa Joyce Covin, 1990. "Competitive Aggressiveness, Environmental Context, and Small Firm Performance," Entrepreneurship Theory and Practice, , vol. 14(4), pages 35-50, July.
    16. Hervé Remaud & Jean-Pierre Couderc, 2006. "Wine business practices: A new versus old wine world perspective," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 405-416.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:13:y:1989:i:3:p:21-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.