[Abstract]
The goal of this paper is to reveal the configurations of the manufacturing SMEs strategic competitiveness factors. These factors differ from the operational ones in the sense that they are innovation related and assume significant organisational changes. Such factors refer to product and process innovations, use of advanced technology, implementation of the IT and international standards, creation of own trademarks and patents, internationalisation, networking, use of marketing strategies, etc. By developing these factors SMEs could follow the low cost strategy, the differentiation strategy, or their combination.
The research is based on Porter¡¯s framework, resource based view, and configuration approach. Building on these theories, the paper aims to answer the research questions, related to the main factors, which determine the manufacturing SMEs competitiveness under globalization; factors¡¯ configurations in clusters; and characteristics of firms from the respective clusters.
The paper used the data of standardized questionnaire from a sample of 500 SMEs from 18 manufacturing activities in Bulgaria. The factors are extracted by exploratory factor analysis (EFA) and subsequently used for cluster analyses. The EFA resulted in ten factors, while the cluster analyses provided four clusters. The findings reveal that the third cluster exhibits the highest competitiveness and performance, while the fourth cluster takes the last place on all competitiveness indicators, including performance. The other two clusters occupy the second and the third place on competitiveness, and the third and the second place on performance respectively.
The main conclusion from the cluster analysis is that the SMEs, which wish to be competitive and to perform well, need to develop not an isolated competitiveness factors, but many of these factors together, e.g. they should follow the combination strategies. Particularly important is the use of a bundle of several strategic (innovation-related) factors. Namely the combination of well-developed strategic factors above a certain degree could assure a sustainable level of competitiveness and performance.