UPSI Digital Repository (UDRep)
Start | FAQ | About
Menu Icon

QR Code Link :

Type :article
Subject :Q Science (General)
ISSN :0972-9380
Main Author :Alkasim Sidi Bello,
Additional Authors :Hilman Haim,
Bohari Manaf,
Abdullah Shahmir S.,
Sallehuddin Mohd R.,
Title :The impact of market penetration strategy and market development strategy on the competitive advantage of nanufacturing based SMEs
Year of Publication :2017

Abstract :
The main objective of this study is to examine the relationship of market penetration strategy, market development strategy and the competitive advantage (cost leadership) of manufacturing based SMEs in Nigeria. The study employed structured questionnaire survey involving 453 manufacturing based SMEs operating in Kaduna state, Kano state, and Sokoto state, the total of 277 valid questionnaires representing 61% response rate was used for the final analysis using PLS-SEM to test the hypotheses. The study finding shows that market penetration strategy has a significant positive impact on cost leadership. Similarly, the result found that market development strategy had a significant positive influence on cost leadership strategy of manufacturing based SMEs of Nigeria. The findings of this study will support owners-manager competency toward creating competitiveness, enhance market share, and sustain competitive advantage. Also, the framework will serve as a blue print for Government agencies to educate SMEs on the importance of competitive advantage toward creating competitiveness and competitive advantage. Finally, future studies were recommended to improve our understanding.

References

1. L. Muga and R. Santamaria (2010). “Market penetration strategies and the fee–performance relationship: the case of Spanish money mutual funds.” The Service Industries Journal, vol. 30(9), pp.1529–1547. http://doi.org/10.1080/ 02642060802626816. 2. B. Propfe, D. Kreyenberg, J. Wind and S. Schmid (2013). “Market penetration analysis of electric vehicles in the German passenger car market towards 2030.” International Journal of Hydrogen Energy, vol. 38(13), pp. 5201–5208. http:// doi.org/10.1016/j.ijhydene.2013.02.049 3. S. Titman, K.C Wei and F. Xie (2013). “Market development and the asset growth effect: International evidence.” Journal of Financial and Quantitative Analysis, vol. 48(5), pp. 1405–1432. http://doi.org/10.1017/S0022109013000495 4. M.F Wiersema and H.P Bowen (2008). “Corporate diversification: the impact of foreign competition, industry globalization, and product diversification.” Strategic Management Journal, 2008, vol. 29, pp. 115–132. http://doi.org/10.1002/smj 5. J.P Uko and F.A Ayatse (2014). “Market penetration as a growth strategy for small and medium-sized enterprises in Nigeria.” Management and Administrative Sciences Review, vol. 23(January), pp. 8–23. 6. S.B. Alkasim, H. Hilman and A. Manaf (2017). “Relationship between market penetration and SME performance in Nigeria”. Asian Journal of Multidisciplinary Studies, vol. 5(2), pp. 200–204. 7. D.J Teece, G. Pisano and A. Shuen (1997). “Dynamic capabilities and strategic management.” Strategic Management Journal, vol. 18(7), pp. 509–533. 8. N.H Chorn (1991). “The “alignment” Theory: Creating strategic fit. Management Decision.” vol. 29(1), pp. 20–24. http:/doi.org/10.1108/EUM0000000000066 9. M. Porter (1980). Competitive atrategy: Techniques for Analyzing industries and competitors. Macmillan, New York. 10. G.J Chastek and J.D Mcgregor (2009). “Formulation of a production strategy for a software product line.” Engineering, vol. 39. Retrieved from http://www.scribd.com/doc/19037798/Formulation-of-a-Production-Strategy-for-a-Software-Product-Line 11. P. Wu, L. Gao and T. Gu (2015). “Business strategy, market competition and earnings management.” Chinese Management Studies, vol. 9(3), pp. 401–424. 12. N. Alexandru and B. Aziri (2013). “Business strategies in tourism.” Ecoforum Journal, vol. 2(1), pp. 5–11. 13. R.S Allen, M.M Helms, H. Jones, M.B Takeda, and C.S White (2008). “Porter’s business strategies in Japan. Business Strategy Series,” vol. 9(1), pp. 37–44. http://doi.org/10.1108/17515630810850109. 14. J.D Hanson, S.A Melnyk and R.A Calantone (2011). “Defining and measuring alignment in performance management.” International Journal of Operations & Production Management, vol. 31(10), pp. 1089–1114. http://doi.org/10.1108/01443571111172444 15. N.S Davcik and P. Sharma (2015). “Impact of product differentiation, marketing investments and brand equity on pricing strategies.” European Journal of Marketing, vol. 49(5/6), pp. 760–781. http://doi.org/10.1108/EJM-03-2014-0150. 16. A.L Fruhling, and L.A Digman (2000). “The Impact of electronic commerce on business-level strategies.” Journal of Electronic Commerce Research, vol. 1(1), pp. 13–22. 17. H. Singh and R. Mahmood (2014). “Aligning manufacturing strategy to export performance of manufacturing small and medium enterprises in Malaysia.” Procedia -Social and Behavioral Sciences, vol. 130, pp. 85–95. http://doi.org/ 10.1016/j.sbspro.2014.04.011 18. M. Porter (1985). Competitive advantage: Creating and sustaining superior performance. The Free Press, New York. 19. A.O. Adeoye, and A.F. Elegunde (2012). “Impacts of external business environment on organisational performance in the food and beverage industry in Nigeria.” British Journal of Arts and Social Sciences, vol. 6(2), pp. 194–201. 20. J. Tell (2012). “Managerial strategies in small, fast- growing manufacturing firms.” Journal of Management Development, vol. 31(7), pp. 700–710. 21. H.I Ansoff, “Strategies for diversification.” Harvard Business Review, 1957, vol. 35(5), pp. 113–124. Retrieved fromhttp://sgpwe.izt.uam.mx/files/users/uami/sppc/13O/Gestion_y_Control_Estrategico_I/Lectura_10._Ansoff_Igor_Strategies_for_Diversification.pdf


This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials.
You may use the digitized material for private study, scholarship, or research.

Back to previous page

Installed and configured by Bahagian Automasi, Perpustakaan Tuanku Bainun, Universiti Pendidikan Sultan Idris
If you have enquiries, kindly contact us at pustakasys@upsi.edu.my or 016-3630263. Office hours only.