Secret of Chinese Manufacturing Innovation: An Analysis of SME Sustaining Competitive Advantage

Abstract:

Existed literature of competitive advantage mainly focus on organizational and strategic changes, whereas this study focus on how Chinese SMEs from manufacturing industry can win competitive advantage while confronting exogenous competitive disadvantage. Results show that competitive advantage influenced by dual system:endogenous competitive elements and exogenous competitive elements. Interaction of two elements could affect the outcome of competition. Exogenous competitive elements were uncontrollability, so structural competitive advantage which is based on endogenous competitive elements could keep firm to gain a competitive advantage, when exogenous competitive elements under the disadvantage conditions. Endogenous competitive elements are comprised of firm culture, dynamic capabilities, and complementary assets. At the strategic level, firm culture influence firm decisions; at the organizational level, dynamic capabilities create the core competence of the corporation; at the practice level, complementary assets erect a barrier to competitors. Thus, this paper analysis Sayyas, which have faced structural changes of competitive elements several times in last 15 years, and eventually resolved crisis favorably and become most dominant firm in the field of wooden windows industry, when exogenous competitive elements under the disadvantage conditions, to show that, in dynamic competition, exogenous competitive elements are the resource leading firm to gain a competitive advantage.

• Periodical: Advanced Materials Research (Volumes 712-715)
• Pages: 3101-3105
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.712-715.3101
• Online since: June 2013
• Authors: Xu Xin, Jia Ning Bao
• Keywords: Competitive Advantage, Dynamic Capability, Endogenous Competitive Element, Mechanical System

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