1 AIT Asian Institute of Technology

Building capabilities and networking for sustainable competitive advantage : a study of small metal manufacturing firms

AuthorSalugsugan-Vano, Maria Teresa
Call NumberAIT RSPR no. SM-99-92
Subject(s)Technological innovations
Small business

NoteA Research Study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration
PublisherAsian Institute of Technology
AbstractA number of studies have proven the role of small and medium sized enterprises (SMEs) in job creation and wealth generation. However, as economies increasingly face global competition for their products and services, the question is whether enterprises, particularly the SMEs, can successfully cope with the impact of the changing external environment. This research study examined the competitive advantage building capabilities and networking strategies of small manufacturing firms in the metals industry in a developing country like the Philippines and in an innovation driven economy like Finland. While Philippine SMEs' state of existing resources and capabilities were estimated to be 15 years behind those highly developed countries like Finland, the analysis of the strategies of Finnish SMEs particularly in undertaking innovation and the strong support of technological, trade and financial organizations to SMEs capability building process provided benchmarks. Finnish films, regardless of size, do not just improve technology and methods searched from abroad but also created them. Key elements that influence their competitiveness were their access to highly sophisticated technology resources, the consequent development and enhancements of technological capabilities to undertake innovation, and their linkages with the technological, trade and financial infrastructure that strongly support innovation particularly among SMEs within and across borders. Their outputs of the technology transformation process did not only include differentiated physical products but most importantly, enhanced their technological capabilities which had set their strategic competitive advantage. Moreover, also thoroughly assessed in this research study were the roles of industry organizations as intermediaries for cooperation between SMEs' and the support infrastructure. Their impact on government policies related to technology, economic and labor concerns were geared towards strengthening their members' competitiveness and profitability. Using the analysis in Finland as benchmarks, specific recommendations were then formulated for the small metals manufacturing firms, the industry and the different SME support organizations in the Philippines.
Year1999
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Igel, Barbara;
Examination Committee(s)Lee, Jung Won;Bechter, Clemens;
Scholarship Donor(s)Government of Spain;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999


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