Operations Strategy Practices of SMEs

Abstract

There is a close link between operations strategies and firm performance. Thus, it is paramount to find out what competitive priorities are adhered to by small and medium enterprises when it comes to operational decision making. The sample is drawn from 244 manufacturing small and medium enterprises (SMEs) operational in Khyber Pakhtunkhwa (KP), Pakistan. Consistent with the research objective, Exploratory Factor Analysis (EFA) is employed to reveal the preference of SMEs in adopting competitive priorities. The results show that the most preferred competitive priority is cost followed by quality and flexibility with delivery priority the least sought-after operations strategy. The paper adds value to a finer and richer understanding of operations strategies in SMEs context and provides insights to practitioners and managers to effectively enhance their firm performance by pursuing right operations strategies.