A taxonomy of operations strategies of high performing small and medium enterprises in Singapore

Abstract

Small and medium enterprises (SMEs) are recognized as playing a pivotal role in the economic growth and technological progress of many countries, yet there is a dearth of research that examines the operational performance and strategies of these smaller enterprises, especially in the Asian context. Of particular interest is the operational posture in terms of the key operations priorities adopted by successful SMEs in carving out their own competitive niches. This study is the first to develop a taxonomy of operations strategies based on the operational performance of high performing SMEs in Singapore. As Singapore is one of the most competitive countries in the world and a highly successful newly industrializing nation in Asia, the use of Singapore data provides benchmarking and best practice information for international business communities and newly industrializing countries. Three strategic clusters were identified. Analysis showed significant differences in the operational posture, financial performance and the kinds of improvement programs undertaken by the three strategic clusters. The strategic role of operations in terms of its contribution to corporate strategic formulation and financial profitability was also investigated. Managerial implications of our findings are presented.