Strategic Orientation of SMEs: Empirical Research

Jelena Minović; Marija Lazarević – Moravčević; Isidora Beraha

doi:10.7595/management.fon.2016.0026

Jelena Minović Institute of Economic Sciences, Belgrade
Marija Lazarević – Moravčević Belgrade Banking Academy
Isidora Beraha Institute of Economic Sciences, Belgrade

DOI: https://doi.org/10.7595/management.fon.2016.0026

Abstract

The main objective of the paper is to identify the sources of competitive advantage of small and medium-sized enterprises in Serbia. Gaining a competitive advantage is the key priority of market-oriented enterprises regardless of their size and sector. Since business environment in Serbia is not stimulating enough for enterprises’ growth and development, the paper highlights the role of strategic orientation in business promotion and development. In order to identify the sources of competitive advantage, the empirical research is conducted by using the survey method. The research sample is created by using a selective approach, namely, the sample includes enterprises with more than ten employees, and enterprises identified to have the potential for growth and development. The research results indicate that small and medium-sized enterprises in Serbia are generally focused on costs as a source of competitive advantage, i.e., they gain competitive advantage in a selected market segment by offering low price and average quality products/services. In addition, the results of the research point out that the Serbian small and medium-sized enterprises are innovation-oriented. Organizations qualifying as middle-sized enterprises are predominantly focused on process innovations, while small businesses are primarily oriented towards product innovations. One of the limitations of the research refers to the small presence of the research sample within the category of middle-sized enterprises. The smaller sample presence than it was previously planned is mostly due to the lack of managers’ willingness to participate in the research, as well as to the fact that these enterprises account for the smaller share in the total number of enterprises in the small-and medium-sized enterprises’ sector. Taking into account that the sector of small and medium-sized enterprises generates around 30% of the country’s GDP, we consider the research results to be beneficial for both scientific and professional communities, as well as for economic policy makers in Serbia.

Author Biographies

Jelena Minović, Institute of Economic Sciences, Belgrade

Jelena Minović, PhD, is a Research Fellow at the Institute of Economic Sciences in Belgrade. She acquired her PhD degree (2012) at the Faculty of Economics, University of Belgrade. Jelena attended the European Business School (EBS University) in Wiesbaden, Germany during her post-doc research stay from May 2013 to August 2013. She participated in many international and national conferences. She published, as author and co-author, a significant number of papers (about 70). Her research interests are: Quantitative Methods and Models in Finance and Economics, Econometrics, Time Series Analysis, Financial Economics and Financial Markets. Her articles have been published in various international journals, such as Applied Economics, Economic Research, Panoeconomicus, Engineering Economics, International Journal of Engineering Education, Economic Annals, Theoretical and Applied Economics, and others

Marija Lazarević – Moravčević, Belgrade Banking Academy

Marija Lazarević – Moravčević, PhD, is an Assistant Professor at the Department of Business Economics and Management, Belgrade Banking Academy – Faculty for Banking, Insurance and Finance, the Union University, Belgrade, Serbia. She acquired her PhD degree (2013) at the Faculty for Banking, Insurance and Finance, the Union University. She earned her postgraduate degree (2005) and undergraduate degree (1999) at the Faculty of Economics, University of Belgrade. She worked at the Institute of Economic Sciences in Belgrade from 2002 to 2009, where she was engaged in projects financed by the Ministry of Science. Marija participated in many national and international conferences. Her research interests are: Strategic Management, Small and Medium-sized Enterprises and Human Resource Management

Isidora Beraha, Institute of Economic Sciences, Belgrade

Isidora Beraha, PhD, is a Research Associate at the Institute of Economic Sciences in Belgrade. She acquired her PhD degree (2016) at the Faculty of Entrepreneurial Business, Union-Nikola Tesla University. She earned her postgraduate degree (2010) and undergraduate degree (2005) at the Faculty of Economics, University of Belgrade. From September 1999 to June 2000 she attended One Year Academic Programme at the Hebrew University of Jerusalem, Rothberg International School, Department for undergraduate studies, Israel. Isidora participated at a large number of national and international conferences. She published, as an author and co-author, two monographs and a significant number of scientific papers. Her field of research includes: Organization and Management, Small and Medium-sized Enterprises and Entrepreneurship, Clusters. Since 2010, Isidora has been a member of the Entrepreneurship Research and Education Network of Central European Universities – ERENET.