Examining the causal relationships among factors influencing SMEs' competitive advantage: a TISM-neutrosophic MICMAC approach
Abstract
Purpose
Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource shortages, shifting consumer demand and heightened competition. This research aims to discover the aspects that enhance SMEs' competitiveness and performance.
Design/methodology/approach
By analyzing literature and consulting experts, 10 factors that boost a firm's competitiveness were identified. The total interpretive structural modeling (TISM) method was then used to determine their interaction and structural hierarchy. Neutrosophic-MICMAC analysis was employed to assess the driving-dependence power of each factor.
Findings
The study discovered that the factor, namely “entrepreneurial orientation,” was found to be a significant one. “Manufacturing strategy” was found to be extremely dependent on the remaining competitive advantage factors.
Research limitations/implications
This SME-focused framework can be adopted by large businesses to enhance organizational performance by focusing on critical factors. The study depends on experts' judgment, which might be biased. Findings will assist SMEs in identifying significant factors influencing competitive advantage and relationships, increasing awareness of factors contributing to competitive edge.
Practical implications
The results of the research may encourage SME sector managers and practitioners to prioritize the factors that contribute to a firm's competitive advantage.
Originality/value
The majority of research on SME competitive advantage focuses on individual aspects. To add to the body of knowledge on the subject, this study applies the TISM technique to Indian SMEs to identify the contextual interactions among factors that increase long-term competitiveness.
Keywords
Acknowledgements
The Ministry of Social Justice and Empowerment, India is to be thanked by the third author for providing funds in the form of a Senior Research Fellowship for her research.
Declarations: The authors reaffirm that they have no known financial conflicts of interest or close personal relationships that might have appeared to have impacted the research provided in this study.
Citation
John William, A., Suresh, M. and Subramanian, N. (2023), "Examining the causal relationships among factors influencing SMEs' competitive advantage: a TISM-neutrosophic MICMAC approach", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-08-2022-0529
Publisher
:Emerald Publishing Limited
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