Fostering a Competitive Differentiation Strategy for Sustainable Organizational Performance

Abstract

Market orientation has always been a critical factor of creating useful business knowledge. As a result, this kind of information is crucial for creating dynamic innovation capabilities. Knowing and affiliating that to their strategy, firms could be able to differentiate easily from their competitors. Having taken into consideration the above framework, they are led to better organizational performance. The only way to achieve such a project is to be always up-to-date and proactive. Added value, competitive advantage, customers’ satisfaction are some of the missions that a business should be able to accomplish. The purpose of this research is to present how SMEs’ could adjust their strategy depending on their customer and competitors’ orientation, innovation capabilities so that organizational performance could be achieved. Differentiation is a weapon which is difficult to use successfully. Most of the researches have shown the importance of innovativeness and performance. However, this research is going to show how differentiation and competitive innovation strategy could affect the organizational performance, not only financially but also non-financially.