Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce, ISSN 2250-057X, Impact Factor: 6.384, Volume 07 Issue 10, October 2017, Page 104-115 http://indusedu.org Page 104 This work is licensed under a Creative Commons Attribution 4.0 International License Strategic Management in MSMEs- A Study on MSMEs of North Karnataka Pushpa Hongal 1 , Dr. Poornima Charantimath 2 , and Gururaj G. Phatak 3 1 (Assistant Professor, Kousali Institute of Management Studies, Karnatak University Dharwad and Research Scholar in Management, Singhania University, Pacheri Bari, Jhunjhunu - 333 515 Rajasthan, India) 2 (Professor, KLS Institute of Management Education and Research, Hindwadi, Belagavi, India) 3 (Research Scholar, Department of Studies in Business Administration, NITTE Research and Education Academy, Banaglore, India) Abstract: Micro, Small and Medium Enterprises (MSMEs) play a very important role in a nation‟s economy. This is true for both developed and developing countries. SMIs also constitute a high proportion of a nation‟s business activities and generate more employment opportunities than the large corporations in recent years. The Strategic Management is now gaining prominence in the corporate board rooms where major policy decisions on investments and returns are made. Strategic Management is everything about competitive advantage i.e. how you can perform better than your competitors consistently and in all the functional areas. Management has no more remained an excellence in any one of the field of manufacturing, marketing, finance, human resource, engineering, etc., rather the modern management propagates integration of all these functional areas to achieve combined excellence. Every entrepreneur follows some management principles to run the show, irrespective of size and nature of business. Over years, there has been considerable change in business practices followed in view of various factors like changing business scenario, intense competition, customer-dominance, government focus and support, societal expectations, etc. There are not many research efforts undertaken in Strategic Management in Micro, Small and Medium scale industries in north Karnataka. The researcher felt a need to conduct an in-depth study of strategic management practices followed by selected industries in this region. Hence, this is an attempt to bring out new knowledge in the area of strategic management by conducting a research of the topic of “Strategic Management Initiatives in MSME- a Case Study of North Karnataka.” The influence of Strategic Management Concepts has been widely researched.However there is limited research on the influence ofStrategic Management Concepts on Hubli-Dharwad and Belgaum Industrial areas of Indian Context. The study explores this aspect in relation to the characteristics of Strategic Management Concepts identified through the literature review. The study presents the Strategic Management Concepts followed by 60 MSMEs of Hubli-Dharwad and Belgavi Industrial Areas. Keywords: Strategic Management, Micro, Small and Medium Enterprises, ANOVA, Regression Analysis. I. INTRODUCTION Micro, Small and Medium Enterprises (MSMEs) play a very important role in a nation‟s economy.This is true for both developed and developing countries. SMIs also constitute a high proportion of a nation‟s business activities and generate more employment opportunities than the large corporations in recent years. On the other hand, MSMEs are very vulnerable, and their failure rate is very high; so highthat no nation can afford to ignore. The Business Statistics Office (UK) observed that “60 per cent [of small enterprises] fail in the first three years of existence‟2. In the United States, the picture is much the same with “eighty per cent of all start-ups succumb within their first five years”3. With this being the case, greater efforts are urgently needed to reduce the fatality rate of MSMEs, Ultimately, a more robust MSME sector helps to build a nation‟s wealth, without it having to woo investments of sophisticated technology. Although every nation has instituted assistance programs to aid its own MSMEs, the entrepreneurs‟ efforts count most in determining the performance of this industry. After all, assistance programs are no more than tools available for the MSMEs. It is the careful selection and correct application of such tools that determine entrepreneurial success. Strategic Management Practices across the world Large corporations across globe are following strategic management practices to achieve continuousgrowth. Though size of a business corporation is not a determining factor for strategic approach to business practices, strategies are more visible in case of large organizations since corporate and marketing communications make them visible. Michael Porter in his book „Competitive Advantage‟ mentions strategic management is everything about how a company uses its resources to perform better than its competitors at any point of time. The revolution in electronic commerce has added another dimension to the strategic management practices followed by companies. These firms are now overlooking traditional methods of doing business and
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Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
This work is licensed under a Creative Commons Attribution 4.0 International License
Strategic Management in MSMEs- A Study
on MSMEs of North Karnataka
Pushpa Hongal1, Dr. Poornima Charantimath
2, and Gururaj G. Phatak
3
1(Assistant Professor, Kousali Institute of Management Studies, Karnatak University Dharwad and Research Scholar in Management, Singhania University, Pacheri Bari, Jhunjhunu - 333 515 Rajasthan, India)
2(Professor, KLS Institute of Management Education and Research, Hindwadi, Belagavi, India) 3(Research Scholar, Department of Studies in Business Administration, NITTE Research and Education
Academy, Banaglore, India)
Abstract: Micro, Small and Medium Enterprises (MSMEs) play a very important role in a nation‟s economy. This is true for both developed and developing countries. SMIs also constitute a high proportion of a nation‟s
business activities and generate more employment opportunities than the large corporations in recent years.
The Strategic Management is now gaining prominence in the corporate board rooms where major policy
decisions on investments and returns are made. Strategic Management is everything about competitive
advantage i.e. how you can perform better than your competitors consistently and in all the functional areas.
Management has no more remained an excellence in any one of the field of manufacturing, marketing, finance,
human resource, engineering, etc., rather the modern management propagates integration of all these
functional areas to achieve combined excellence. Every entrepreneur follows some management principles to
run the show, irrespective of size and nature of business. Over years, there has been considerable change in business practices followed in view of various factors like changing business scenario, intense competition,
customer-dominance, government focus and support, societal expectations, etc.
There are not many research efforts undertaken in Strategic Management in Micro, Small and Medium scale
industries in north Karnataka. The researcher felt a need to conduct an in-depth study of strategic management
practices followed by selected industries in this region. Hence, this is an attempt to bring out new knowledge in
the area of strategic management by conducting a research of the topic of “Strategic Management Initiatives
in MSME- a Case Study of North Karnataka.”
The influence of Strategic Management Concepts has been widely researched.However there is limited research
on the influence ofStrategic Management Concepts on Hubli-Dharwad and Belgaum Industrial areas of Indian
Context. The study explores this aspect in relation to the characteristics of Strategic Management Concepts
identified through the literature review. The study presents the Strategic Management Concepts followed by 60 MSMEs of Hubli-Dharwad and Belgavi Industrial Areas.
Keywords: Strategic Management, Micro, Small and Medium Enterprises, ANOVA, Regression Analysis.
I. INTRODUCTION Micro, Small and Medium Enterprises (MSMEs) play a very important role in a nation‟s economy.This
is true for both developed and developing countries. SMIs also constitute a high proportion of a nation‟s
business activities and generate more employment opportunities than the large corporations in recent years.
On the other hand, MSMEs are very vulnerable, and their failure rate is very high; so highthat no
nation can afford to ignore. The Business Statistics Office (UK) observed that “60 per cent [of small enterprises]
fail in the first three years of existence‟2. In the United States, the picture is much the same with “eighty per
cent of all start-ups succumb within their first five years”3. With this being the case, greater efforts are urgently
needed to reduce the fatality rate of MSMEs, Ultimately, a more robust MSME sector helps to build a nation‟s wealth, without it having to woo investments of sophisticated technology.
Although every nation has instituted assistance programs to aid its own MSMEs, the entrepreneurs‟
efforts count most in determining the performance of this industry. After all, assistance programs are no more
than tools available for the MSMEs. It is the careful selection and correct application of such tools that
determine entrepreneurial success.
Strategic Management Practices across the world
Large corporations across globe are following strategic management practices to achieve
continuousgrowth. Though size of a business corporation is not a determining factor for strategic approach to
business practices, strategies are more visible in case of large organizations since corporate and marketing
communications make them visible. Michael Porter in his book „Competitive Advantage‟ mentions strategic
management is everything about how a company uses its resources to perform better than its competitors at any point of time.
The revolution in electronic commerce has added another dimension to the strategic management
practices followed by companies. These firms are now overlooking traditional methods of doing business and
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
This work is licensed under a Creative Commons Attribution 4.0 International License
instead opt for online commerce. Hence, we find use of extensive IT (information technology) in giving speed,
accuracy, convenience to dealing with different stakeholders. Some firms believe in continual growth i.e.
growth at a normal pace with intermittent breaks, while others believe in continuous growth – steady growth
over a period of time. The researchers have given both growth types almost equal weightage. This is guided by
the nature of decisions to be taken and the entrepreneurs‟ or owners‟ risk taking abilities. Recent examples of
many American and European companies deciding to invest heavily in emerging markets like India, China, South East Asian countries, etc. for setting up their manufacturing operations, research facilities, marketing
hubs, etc. are testimonials of growth strategies of continuous type.
Strategic Management Practices in India
The Government of India has embraced the policy of economic reforms since early 1990s and the
sectors are now open for new private initiatives – from domestic firms as well as overseas firms, including
multi-national corporations (MNCs). Indian firms have come out of the protection era – though still finding it
difficult to digest the fact that government support will be bare minimum – and one has to be independent and
proactive to embrace the changes in business environment. Earlier, we used to find companies used to design,
develop, manufacture, and market products which used to stay put in markets for years together. But, today the
scenario is completely different. One cannot predict precisely the life cycle for the products developed and the
number of years products will remain in each of the stages of product life cycle viz., introduction, growth,
maturity, and decline. The increase in number of competitors – local as well as foreign – has given consumers wide choice of products and brands at the market place. Also, with increased incomes, changing lifestyles, easy
availability of finance, etc. the customers have become demanding.
The Strategic Management is now gaining prominence in the corporate board rooms where major
policy decisions on investments and returns are made. Strategic Management is everything about competitive
advantage i.e. how you can perform better than your competitors consistently and in all the functional areas.
Management has no more remained an excellence in any one of the field of manufacturing, marketing, finance,
human resource, engineering, etc., rather the modern management propagates integration of all these functional
areas to achieve combined excellence. Every entrepreneur follows some management principles to run the show,
irrespective of size and nature of business. Over years, there has been considerable change in business practices
followed in view of various factors like changing business scenario, intense competition, customer-dominance,
government focus and support, societal expectations, etc. A need has been felt by many industrialists to have a strategic focus to their business practices to
remain competitive and achieve growth. Earlier, the main concern for an industrial unit or business house was to
increase sales, improve profitability, recover money invested, and be happy with whatever little could be
achieved. Today, with diverse changes in external and internal environment, the guiding factors for determining
success of a business unit have changed significantly. Strategic Management is felt necessary in view of
uncertainty of future and difficulty of existence or survival. Many industrialists look forward to business
achievements in the short-run i.e. what will be the results for the current year and a year or two ahead. They do
not envision what will be their position say 5 years down the line or 10 years from now.
These entrepreneurs feel where is the need for strategic management? We are doing well and we have
done reasonably well. So, we will do well in future too! Rather than worrying about current problems on hand,
why should we be concerned about where will we be 5 or 10 years down the line. At their level of thinking, it
may appear to be nothing wrong in this ideology. But, that indicates they are little concerned about the path to be followed to achieve higher performances. One thought speaks about continue to work hard and achieve
whatever best possible with the resources available without being much concerned about distant future. While,
the other group considers it is essential to dream big and work towards realizing that. This group says if you do
not have any dreams, where will be the motivation to achieve bigger results. Also, the dreams will create vision
statements which provide direction to the people in taking planning and execution seriously, in the right earnest.
Strategic Management in Karnataka
Most of industries in Karnataka are located at the capital of the state – Bangalore. Till around late
1980s, the industries in Bangalore were falling in 2 distinct categories viz. public sector industries like
Bharat Earth Movers Limited (BEML), Indian Telephone Industries (ITI) etc and private sector industries like
Mico, VDO, Auma Motors, Parle-G etc. In recent years we have seen Bangalore has become Information Technology – Bio-Technology (IT-BT) hub with growth in Information Technology (IT) industries like Infosys,
Wipro, TCS, Satyam, Accenture, IBM (India) etc. and Biocon in Bio-Technology (BT) sector. Other places in
Karnataka are also having some prominent industries like Mangalore, Mysore, Hubli-Dharwad, Belgaum,
Hospet and Bellary.
While some of these companies are following growth strategies, the rest are following predominantly
stability and retrenchment strategies. The growth strategies followed by some companies were either organic
(growth out of own resources) or inorganic (growth by acquisitions, mergers, joint-ventures etc). It is found
many IT companies have followed both organic as well as inorganic growth strategies. Hindalco of Belgaum has
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
This work is licensed under a Creative Commons Attribution 4.0 International License
followed growth strategy but with variation i.e. it has discontinued manufacturing of finished aluminium and
instead restricting itself to just processing of raw bauxite in view of power shortage in the state and the
exorbitant cost of power. Some of the companies have lost the ground to the forces of globalization in view of
their inability to meet intense competition e.g. The Mysore Kirloskar have closed all its 4 plants in Karnataka,
New Government Electric Factory (NGEF - a state govt. owned company) is on the verge of closure, Bagalkot
cement is closed in view of financial problems etc. However, some companies have showed their resilience to face the intense competition and look at possibilities of devising new strategies for survival and then growth. In
fact, a study of each of the medium-scale and large-scale unit will be a case study in itself to understand the
strategies followed, if any, and the impact of such strategies.
It might be said that the industrialists / entrepreneurs in the state have now realized that running of an
industry in a relatively open-market environment is distinctly different from the protected environment prevailed
before liberalization process began in our country (early 1990s). It is observed from corporate reports and other
publications, service industries are performing better than that of manufacturing industries (if we include IT
industries in service industry). Growth of an industry depends on internal factors as well as external factors.
While the control of management on internal factors is expected to be greater, while on external factors is
minimal. But, in case of a few industries it is observed that they do not have control on internal factors also like
human resources, finance, technology, marketing, research and development, etc.
Industries in north Karnataka are very few and their growth has been normal and not extra ordinary. They are facing locational dis-advantage as compared to industries in other places on account of problems
related to logistics, raw material, power availability, nearness to market etc. But then, to survive and grow they
need to identify winning strategies which will help them to develop new products with highest quality at
affordable / acceptable prices. If they cannot do anything themselves, then they can follow strategic alliances
route to achieve the growth. In fact, 21st century is known for strategic alliances forged for consolidation and
growth and that too all over the world.
Introduction to MSMEs in India
According to report MSME at a Glance(2016) published by Ministry to Small and Medium Enterprises,
Micro, Small and Medium Enterprises (MSMEs) sector have proved to be an exciting and energetic sector since
last five decades in the Indian economy.
MSMEs in addition to contributing to the job creation at a lower capital cost, also contribute to the industrialization of the country and undeveloped localities, which reduces the inequalities and ensures that the
national income and wealth could be distributed equally. MSMEs complement big organizations and participate
in the important production areas. They also have a huge contribution to the socioeconomic development of the
country.
Micro, Small and Medium Enterprises (MSMEs) sector have proved to be an exciting and energetic
sector since last five decades in the Indian economy. MSMEs in addition to contributing to the job creation at a
lower capital cost, they also contribute to the industrialization of the country and undeveloped localities, which
reduces the inequalities and ensures that the national income and wealth could be distributed equally. MSMEs
complements big organizations and participate in the important production areas, MSMEs has a huge
contribution to the socioeconomic development of the country. In India, MSMEs are defined according to
MSMED Act, 2006, by the investment made by them in factories and equipment‟s and on the machinery which
provides services. (MSME at a GLANCE 2016)
Table 1.1.: MSME Definition: According to Ministry of MSME ACT 2006
Manufacturing Enterprises – Investment in Plant & Machinery
Description INR USD($)
Micro Enterprises up to Rs. 25 Lakh upto $ 62,500
Small Enterprises above Rs. 25 Lakh & up to Rs. 5 Crore above $ 62,500 &upto $ 1.25 million
Medium Enterprises above Rs. 5 Crore& up to Rs. 10 Crore above $ 1.25 million &upto $ 2.5
million
Service Enterprises – Investment in Equipment
Description INR USD($)
Micro Enterprises Up to Rs. 10 Lakh Up to $ 25,000
Small Enterprises above Rs. 10 Lakh & up to Rs. 2 Crore above $ 25,000 & up to $ 0.5 million
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
This work is licensed under a Creative Commons Attribution 4.0 International License
Medium Enterprises above Rs. 2 Crore&uptoRs. 5 Crore above $ 0.5 million & up to $ 1.5
million
(Source: Annual Report 2014-2015. Ministry of MSME, GoI)
Growth of MSMEs in Karnataka State
Table1.3: Growth of MSMEs in Karnataka State
Year MSME units
(in number)
Investment
(Rs. In lakh)
Employment
(in numbers)
2011-12 21021 159614 128387
2012-13 24206 216851 155551
2013-14 25966 285056 167347
2014-15
(Up to Dec. 2014) 19721 191905 122286
(Source: Department of Industries and Commerce. GoK.)
Statement of the Problem According to Lawrence R. Jauch and William F. Glueck “Strategic management is a stream of
decisions and actions which leads to the development of an effective strategy or strategies to help achieve
corporate objectives. The strategic management process is the way in which strategists determine objectives and
make strategic decisions”.
According to Michael A.H. et.al “The strategic management process is the full set of commitments,
decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.”
Strategic Management has gained importance since 1980s as a major drive to achieve competitive
advantage. The business firms are now aligned to having a well-defined vision and mission statement to provide
direction to their activities. Strategic Management stresses on how top management takes different decisions
after evaluating different alternatives available on hand. In their efforts to take strategic decisions, the
corporations are guided by the factors prevailing in external and internal environments confronted by them. The
management has to consider different strategic options they have to improve the performance. There are two routes to achieve growth viz. organic growth and inorganic growth. Organic growth model contemplates growth
by using internal resources available with the company, whereas, the inorganic growth model hinges on external
growth options like strategic alliances, joint ventures, mergers and acquisitions etc.
There are not many research efforts undertaken in Strategic Management in Micro, Small and Medium
scale industries in north Karnataka. The researcher felt a need to conduct an in-depth study of strategic
management practices followed by selected industries in this region. Hence, this is an attempt to bring out new
knowledge in the area of strategic management by conducting a research of the topic of “Strategic Management
Initiatives in MSME- a Case Study of North Karnataka.”
Need for the study
In market there are two types of business organizations – one which is serious about strategic
management initiatives and the other not so serious. It is necessary to research into types of management practices followed by these organizations, their achievements, and their plans for the future. It is possible that
some organizations have followed a well-thought out strategy for successful future and their results have been
Contributions of MSME's in Indian Economy:
Table: 1.2. Contribution of MSMEs to Indian Economy
Year
Gross Value of
Output of MSME
Manufacturing
Sector (Rs. in
Crores)
Share of MSME sector in total GDP (%) Share of MSME
output in total
Manufacturing
Output (%) Manufacturing
Sector MSME
Service
Sector
MSME
Total
2006-2007 1198818 7.73 27.40 35.13 42.02
2007-2008 1322777 7.81 27.60 35.41 41.98
2008-2009 1375589 7.52 28.60 36.12 40.89
2009-2010 1488352 7.45 28.60 36.05 39.63
2010-2011 1653622 7.39 29.30 36.69 38.50
2011-2012 1788584 7.27 30.70 37.97 37.47
2012-2013 1809976 7.04 30.50 37.54 37.33
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
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commensurate with their efforts, where as other firms may not have looked at the need for strategic initiatives
and hence have not progressed well. Alternatively, there is a distinct possibility that some business firms might
have followed certain strategic initiatives but have not achieved any significant gains and some firms have not
followed any specific strategic initiatives but have grown fast in the recent past.
There are not many research efforts undertaken in Strategic Management in Large and Medium scale
industries in north Karnataka. The researcher felt a need to conduct an in-depth study of strategic management practices followed by selected industries in this region. Hence, this is an attempt to bring out new knowledge in
the area of strategic management by conducting a research of the topic of “Strategic Management Initiatives in
MSME- a Case Study of North Karnataka.”
Scope of the Study
1. This study is restricted to large and medium manufacturing industries in Dharwad and Belgaum
districts in Karnataka State.
2. The study will look into concepts of strategic management and their impact followed in the selected
industries. The Concepts includes, Generic Strategies, Porter Five Force Model, Resource based
Analysis and Crisis Management. The researcher intends to ascertain whether there is any relationship
between the strategic management concepts followed and the performance achieved.
Objectives of the Study
1. To study the strategic management concepts followed in the selected industries. 2. To identify and evaluate Generic Strategies, Porters Five Force Model, Resource Based Analysis and
Crisis Management in MSMEs.
3. To Evaluate the Impact of Strategic Management Concepts Such as Generic Strategies PFM, RBA and
CMs in MSMEs in Select Industrial Areas
4. To Relate Strategic Management Concepts in MSMEs to their Performance.
Research Gap
In the review of the literature, the intention was to review of Strategic Management Concepts in
MSMEs. Various literatures on of Strategic Management Concepts from Indian and other developing countries
were analyzed.
1. The preceding review of the literature revealed the following gaps in research which the current study
will endeavor to fill. Several studies have been done on of Strategic Management Concepts but no studies with respect to Manufacturing MSMEs in Karnataka found. Various classifications were used
to categorize industry's of Strategic Management Concepts during the investigation. Different
classifications were implemented by different researchers, in content as well as in a number of
dimensions, with regards to context.
2. The present research also attempts to review of Strategic Management Concepts in MSMEs. Much
emphasis has been laid by previous research on the definition of MSMEs, Contribution to Indian
Economy, Moreover, an absence of research was found with special regard to of Strategic Management
Concepts based on in Generic Strategies, Porters Five Force Model, Resource Based Analysis and
Crisis Management in India or in Karnataka.
3. Furthermore, an elaborate attempt has not been made so far to determine the Strategic Management
Concepts with respect to MSMEs
4. There are very limited studies which focus on Strategic Management Concepts based on in Generic Strategies, Porters Five Force Model, Resource Based Analysis
5. There is a need to Strategic Management Concepts based on in Generic Strategies, Porters Five Force
Model, Resource Based Analysis its role in the success of MSMEs
Limitations of the Study
The Limitations of the study are:
1. The Study is focused only on MSME Manufacturing Firms of Hubli Auto- and Belgaum Foundry
Industries.
2. It was very difficult to get the contact of entrepreneurs and fixing the appointment for the interview.
Some entrepreneurs gave less time to give a response to the Structured Questionnaire.
II. RESEARCH METHODOLOGY The Study is Exploratory in nature. In this study, based on Strategic Management Concepts based on in
Generic Strategies, Porters Five Force Model, Resource Based Analysis its role in the success of
MSMEsevaluated and measured to see if there is any relationship between Strategic Management Concepts and
their impact on MSME Firm Performance was also evaluated.
Population of the study
The Unit of Analysis in the present study is Micro, Small and Medium enterprise in the manufacturing
sector of Hubli-Dharwad and Belagavi Area.
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
This work is licensed under a Creative Commons Attribution 4.0 International License
Table 1.4: Showing the Population of the Industrial Areas
Type of Cluster Micro Enterprises Small Enterprise Medium Enterprise Total
HDAC 216 41 4 261
BFC 98 57 7 162
Total 314 98 11 423
(Source: Primary Data. List Obtained from DIC offices of Hubli-Dharwad and Belagvi.)
Sampling Technique
Sampling Frame: sampling frame was developed from single source. List obtained from DIC Offices
of Hubli-Dharwad and Belgaum Districts.
Stratified Random Sampling Technique: The list of MSMEs was collected from both DIC offices. After collecting the list, manufacturing firms which are established after 2007 in the areas are identified
and the entrepreneurs were contacted over telephone. The Total Population from both areas is 423.
Based on this Data, three stratums were selected such as Micro, Small and Medium Enterprises. In the
Present Study, the final sample size is 60.
Data Collection Method
The study has been carried out using both primary and secondary data. The primary data was collected
from respondents through the Structured Questionnaire. The secondary data was collected through websites,
books and journals etc. The Data is collected from 60 Entrepreneurs of Entrepreneurial MSME firms of Hubli-
Dharwad and Belagavi Area.
Statistical Tools used for the Analysis
A multi-method data analysis was used on the collected data. Appropriate statistical techniques were used to analyse the data. The main focus was to identify and Evaluate Strategic Management Concepts Such as
Porters Five Forces Model, Resource Based Analysis and Crisis Management. The study also aimed to measure
the above three concepts on MSME Firm Performance. SPSS based data analysis was carried out, and a host of
quantitative techniques were used, which include One-way ANOVA, Linear Regression and Chi-square Test in
testing out hypotheses.
Reference Period
The study will cover a period of 10 years – five years before the study i.e. 2004 to 2008 and five years
after the study i.e. 2009 to 2014. This will help in ascertaining whether there has been any significant change in
the strategies – past, current and future – and the reasons behind these strategies and the impact of such
strategies – observed and anticipated.
III. DATA ANALYSIS To identify and evaluate Generic Strategies, Porters Five Force Model, Resource Based Analysis and
Crisis Management in MSMEs.
One-way ANOVA Table
ANOVA
Sum of Squares Df Mean Square F Sig.
GS1
Between Groups 1.618 2 .809 5.262 .008
Within Groups 8.766 57 .154
Total 10.384 59
GS2
Between Groups 4.781 2 2.391 4.696 .013
Within Groups 29.018 57 .509
Total 33.799 59
PFM
Between Groups 7.120 2 3.560 4.505 .015
Within Groups 45.047 57 .790
Total 52.167 59
RBA
Between Groups 2.725 2 1.363 4.076 .022
Within Groups 19.058 57 .334
Total 21.783 59
CM
Between Groups .762 2 .381 1.409 .253
Within Groups 15.421 57 .271
Total 16.183 59
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
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Descriptives
N Mean Std. Deviation Std. Error
95% Confidence Interval for
Mean
Lower Bound
GS1
Micro 21 4.14 .452 .099 3.94
Small 32 3.90 .283 .050 3.80
Medium 7 4.37 .605 .229 3.81
Total 60 4.04 .420 .054 3.93
GS2
Micro 21 3.82 .921 .201 3.40
Small 32 3.63 .570 .101 3.43
Medium 7 4.54 .574 .217 4.01
Total 60 3.80 .757 .098 3.61
PFM
Micro 21 2.30 .939 .205 1.87
Small 32 2.73 .842 .149 2.43
Medium 7 1.69 .951 .360 .81
Total 60 2.46 .940 .121 2.21
RBA
Micro 21 4.09 .719 .157 3.76
Small 32 3.81 .438 .077 3.65
Medium 7 4.46 .680 .257 3.83
Total 60 3.98 .608 .078 3.83
CM
Micro 21 4.19 .512 .112 3.96
Small 32 4.28 .457 .081 4.12
Medium 7 4.57 .787 .297 3.84
Total 60 4.28 .524 .068 4.15
Interpretation
Generic Strategies - Management Level
From the above ANOVA Table, Under Generic Strategies the overall ratings by Micro, Small and
Medium were respectively 3.8, 4.1 and 4.37. We found that there is Increase in the ratings From Micro Firm to
Medium Firm is attributed.
Generic Strategies Varies from Firm to Firm and Product to Product. Micro Enterprises need to focus
on Vision and Mission Development, Defining Objectives, Whereas Small and Medium Enterprises are already established there brand with their Clarity in Objectives and Mission Statement, in Two Selected Industrial
Areas.
Generic Strategies- Operation Level
From the above ANOVA Table, Under Place Strategy the Overall Micro, Small and Medium
Enterprises were respectively 3.82, 3.63 and 4.84, based on 5-Point Scale. Thus, Generic Strategies is adopted
by the enterprises is almost same in Micro and Small Categories and high in Medium Category.
Porters Five Force Model
From the above ANOVA Table, Under Porters Five Force Model the overall ratings by Micro, Small
and Medium were respectively 2.30 2.73 and 1.69 based on 5-Point Scale.
Resource Based Analysis
From the above ANOVA Table, Under Resource Based Analysis the overall ratings by Micro, Small
and Medium were respectively4.09 3.81 and 4.46, based on 5-Point Scale.
Crisis Management Further
From the above ANOVA Table, Under Crisis Management Further the overall ratings by Micro, Small
and Medium were respectively4.19 4.28 and 4.57, based on 5-Point Scale.
H01: Generic Strategies, does not differ significantly between MSMEs
H11: Generic Strategies, differs significantly between MSMEs
One-way ANOVA Table for Generic Strategies
ANOVA
Sum of Squares Df Mean Square F Sig.
GS1
Between Groups 1.618 1 .809 5.262 .008
Within Groups 8.766 59 .154
Total 10.384 60
GS2 Between Groups 4.781 1 2.391 4.696 .013
Within Groups 29.018 59 .509
Pushpa Hongal et al., International Journal of Research in Management, Economics and Commerce,
Interpretation: The Regression Model to predict Industrial Area and Strategic Management Concepts bound
on Generic Strategies , Porters Five Force Model Resource based Analysis and Crisis Management, is a good fit
with p-value(0.000) and r=0.697
The Regression Model for Industrial Areas has Positive Coefficients for Generic Strategies , Porters
Five Force Model and Crisis Management, whereas for Resource Based Analysis it is found to be negative.
The Strategic Management in MSMEs under study is influenced by various concepts like Generic Strategies, Porters Five Force Model Resource based Analysis and Crisis Management, It is tested that using
Regression Analysis that there is a Significant Correlation between Generic Strategy and Industrial Area (0.534
and Significance Value is 0.000) Further the relationship between Industrial Area and other influencing
variables is confirmed by regression model with p-value 0.000<0.05 and r=0.697
Therefore, output of the regression analysis may be written as: