This study aims to investigate the mediation effect of supply chain strategy (SCS), market environment (ME) and innovation (IN) on the relationship between competitive strategy and small- and medium-sized enterprise (SME) performance.
Partial least square structure equation modeling was used to test the hypotheses; a convenient sample was used to collect 150 responses by using the questionnaire method. The questionnaire was distributed to the top and middle-level managers in Bangalore city and rural areas; the authors used SMART-PLS software to explore the relationship between their study variables.
The results of this study indicate that there is a significant relationship between cost leadership strategy (CLS) and differentiation strategy (DS) with SME performance. In addition, SCS has a positive mediation impact on the relationship between DS and SME performance. Furthermore, ME plays a significant mediation role between CLS and DS with SME performance. And finally, IN has a significant impact on the relationship between CLS and SME performance.
This paper demonstrates the impact of SCS, ME and IN on the relationship between CLS and DS with SME performance. Furthermore, this study illustrates the path to improve SME performance and achieve competitive advantage in the marketplace.
