Revising marketing strategies for supplier selection criteria: small firm approach from the information and communications industry

Abstract

Purpose

Mainly due to their size, SMEs in the ICT industry are often at a disadvantage in supplier evaluation and therefore in the MNC supplier selection process. This paper aims to illustrate how they have realised their weakness and have created innovative strategies for alleviating the uncertainties associated with SMEs and thus for overcoming these natural disadvantages.

Design/methodology/approach

The method of analysis could best be described as multiple‐comparative‐case analysis. The authors have based the paper on existing literature, which is then assimilated into the analysis in the process of theory fulfilment and refinement.

Findings

This paper offers both theoretical and managerial insight by showing that SMEs do not have to accept their weak position in supplier markets, and that they can change the status quo by adjusting their strategies. The findings show that innovative strategies potentially offset the disadvantages of supplier smallness in the ICT industry.

Research limitations/implications

The authors chose a qualitative research method as it facilitates theory building and development in areas in which the extant theory seems inadequate or the phenomenon being examined is complex. Qualitative research also potentially enhances managerial knowledge by providing best‐practice information.

Practical implications

The authors provide insights that hopefully encourage SMEs in the ICT industry not to see their small size as weakness, but as a potential advantage in the form of increased responsiveness, flexibility, and service level compared to their larger rivals. However, to capitalise this advantage, the authors illustrate that SMEs in the industry should aim at increased focus on their core competences and simultaneously seek creative ways to remain competitive in the supplier markets.

Originality/value

Strategies aimed at fighting disadvantages as such have been addressed by marketing scholars only to a limited extent. The originality of this paper lies in its focus on identifying strategies that are aimed at diminishing the strategic weakness of the company rather than those aimed at building strategic strength.

Citation

Hätönen, J. and Ruokonen, M. (2010), "Revising marketing strategies for supplier selection criteria: small firm approach from the information and communications industry", Journal of Business & Industrial Marketing, Vol. 25 No. 2, pp. 159-167. https://doi.org/10.1108/08858621011017778