Effect of Organisational Strategy on Sustainable Competitive Advantage of Manufacturing SMEs: Mediating Role of Managerial Creativity

Abstract

This paper aims to investigate the relations between Organizational Strategy (OS), Managerial Creativity (MCT), and Sustainable Competitive Advantage (SCA) among SMEs working in Turkey, an emerging economy. A probability sampling was performed on a sample frame of 1000 SMEs’ senior executives, and 324 valid responses were achieved and utilized for the data analysis. A partial least square structural equation modelling technique was assumed for the data analysis. The results showed that both OS (managerial intuition (MIT), information technology adoption (ITE), internal communication (ICN)) and MCT are significantly related to SCA. Moreover, MCT insignificantly mediates the relationship between MIT and SCA. However, the MCT significantly mediates the relationship between ITE, ICN and SCA. The current work contributes to the literature as it supplies valuable empirical proof of the relationship between OS and SCA of manufacturing SMEs. Second, this research enhances the sustainability literature by insinuating new perspectives on the role of MCT within the frame of SCA. Third, the research underlines the embodiment of MIT, ITE and the role of ICN that can improve SMEs’ creative strategy toward SCA. The study limitations and future research opportunities are provided at the end.