SME business models in global competition: a network perspective
by Mika Westerlund, Risto Rajala, Seppo Leminen
International Journal of Globalisation and Small Business (IJGSB), Vol. 2, No. 3, 2008

Abstract: The globalising competition affects the business models of both small and large enterprises. The present study examines the responses of industrial Small- and Medium-sized Enterprises (SMEs) to the globalising competition through two constructs: 1) the nature of offerings; 2) the collaboration strategy that is pursued. The paper presents an explorative quantitative analysis based on a survey of 91 firms. The results suggest that firms emphasising the international expansion strategy distribute standardised offerings with additional services, provide tailored offerings through international multitier networks, or specialise in customer-specific offerings with additional services through dyadic international relationships. Conversely, a fourth group of firms responds to the globalising competition by providing basic offerings for the domestic market through dyadic relationships. The main conclusion is that a firm's response to globalisation is closely connected to its business model, which is manifested through the firm's networking strategy and the nature of the offering. Moreover, the business model seems to affect firms' profitability.

Online publication date: Fri, 22-Feb-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Globalisation and Small Business (IJGSB):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email