Title: Internal capabilities as the source of achieving competitive advantage in small-sized businesses

Authors: Asghar Afshar Jahanshahi; Amitab Bhattacharjee; Tahereh Maghsoudi

Addresses: CENTRUM Católica Graduate Business School, Lima, Peru; Pontificia Universidad Católica del Perú, Lima 15023, Peru ' Universidad Católica los Ángeles de Chimbote, Instituto de Investigación, Chimbote 02803, Peru ' Business Management Department, Faculty of Business and Economy, University of Rovira i Virgili, Reus, Spain

Abstract: In today's highly competitive business environment, having and maintaining a competitive advantage is critical to the success and survival of small sized businesses. What types of small-sized enterprises have more capabilities to build competitive advantages? The main purpose of this research is to analyse how the internal capabilities of firms, e.g., internal marketing, corporate entrepreneurship and organisational commitments, have an impact on the achievement of competitive advantages. Our survey-based data from 115 small sized companies in Iran showed that both corporate entrepreneurship and organisational commitment in small sized companies was positively changed by internal marketing. Furthermore, we found a positive relationship between the firms' internal marketing and corporate entrepreneurship activities with the achievement of competitive advantages. Consequently, small sized enterprises should reinforce their internal marketing and corporate entrepreneurship activities to obtain competitive advantages. Therefore, motivated and highly satisfied employees are essential for not only enhancing the firm's entrepreneurship activities and organisational members' commitment, but also for establishing a competitive advantage.

Keywords: competitive advantage; corporate entrepreneurship; internal marketing; organisational commitment.

DOI: 10.1504/IJBIR.2021.118446

International Journal of Business Innovation and Research, 2021 Vol.26 No.2, pp.141 - 162

Received: 16 Apr 2019
Accepted: 13 Oct 2019

Published online: 26 Oct 2021 *

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