Lower costs: driving SME business performance.
Ahmad, S. Jaseem and O'Regan, Nicholas and Dixon, Bruce (2006) Lower costs: driving SME business performance. International Journal of Globalisation and Small Business, 1 (4). pp. 407-420. ISSN 1479-3059
Full text is not in this repository.
This study examines the impact of cost on the performance of small and medium sized manufacturing firms. Two distinct types of firms were examined: those with lower than average costs for their market, and firms with above average costs. The overall drivers in both sets of firms are examined along with the resultant performance. The study sampled cost structures in SMEs in the engineering and electronics industries. The findings show differences in both sets of firms. Firms with lower than average costs have reduced their employee levels over the past three years, which is reflected in their reduced direct labour costs, arguably as a result of increased contracting out of activities. The lower than average costs translate into the ability to offer competitive pricing and increased market share. On the other hand, firms with above average costs in their market have experienced an increase in costs (other than direct and indirect labour) reduced turnover, have more management levels and tend to focus on specific markets.
|Research Areas:||Business School > Business & Management|
|Deposited On:||28 Jan 2010 16:57|
|Last Modified:||06 Feb 2013 10:52|
Repository staff only: item control page
Full text downloads (NB count will be zero if no full text documents are attached to the record)
Downloads per month over the past year