SMEs-Export Performance in Ethiopia: Exploring the Effect of Generic Competitive Strategies’
Abstract
This study looks into how Ethiopian small and medium-sized enterprises (SMEs') export success is affected by generic competitive tactics such differentiation and cost leadership. A structured questionnaire was used to gather data from 300 exporting SMEs using a cross-sectional survey design that was in line with positivism. A total of 210 valid responses were obtained for analysis. Validated scales were used to measure the constructs, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for statistical analysis. Because SMEs that successfully control costs are able to provide competitive pricing in international markets, the results show that cost leadership considerably improves export performance (β = 0.626, p < 0.000). However, the differentiation strategy has a smaller positive impact on export performance (β = 0.223, p < 0.000), indicating that SMEs may not have the resources to engage in the marketing and innovation needed for successful differentiation. The findings demonstrate the importance of cost control in enhancing export capacities while also showing that, despite their value, differentiation methods need to be balanced in light of SMEs' constraints. By offering context-specific insights impacting various strategic approaches of SMEs in developing countries, this study adds to the body of existing literature. To this end, Ethiopian SMEs should pursue cost leadership while building the capacity to capitalize on differentiation in niche markets, according to the practical implications.
DOI: https://doi.org/10.54663/2182 9306.2025.SpecialIssueIM.101-118
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International Journal of Marketing, Communication and New Media
ISSN: 2182-9306
DOI: 10.54663/2182-9306
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