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Do SMEs need to strategize?

Govinda Sharma (Associate Professor, based at the SDM Institute for Management Development, Karnataka, India)

Business Strategy Series

ISSN: 1751-5637

Article publication date: 5 July 2011




The study is prompted by the fact that most SMEs may not have the wherewithal or the willingness to devote time and resources to strategy formulation but are focused to reconsider this position by the pressures of globalization.


Through a literature survey, a model suitable for SMEs is identified. An application of the selected model is presented. Applicability of strategic tools such as ERP in SMEs is examined. A case of a company, which has implemented ERP is analyzed.


SMEs need strategy but the strategy depends on the complexity of the process. The case study points to the need for top management support and commitment.

Research limitations/implications

It is difficult to get financial data from individual SMEs as most SMEs are proprietorship concerns.

Practical implications

For countries, which are labor surplus, study on SMEs which are not capital intensive but create employment, has practical and social implication.


This paper attempts at filling research gaps on competitive strategies for SMEs.



Sharma, G. (2011), "Do SMEs need to strategize?", Business Strategy Series, Vol. 12 No. 4, pp. 186-194.



Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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