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Value Creation Attributes—Clustering Strategic Options for Romanian SMEs

Author

Listed:
  • Alin Stancu

    (The Faculty of Marketing, Bucharest University of Economic Studies, 41 Dacia Blvd, District 1, 010404 Bucharest, Romania)

  • Alina Filip

    (The Faculty of Marketing, Bucharest University of Economic Studies, 41 Dacia Blvd, District 1, 010404 Bucharest, Romania)

  • Mihai Ioan Roșca

    (The Faculty of Marketing, Bucharest University of Economic Studies, 41 Dacia Blvd, District 1, 010404 Bucharest, Romania)

  • Daniela Ioniță

    (The Faculty of Marketing, Bucharest University of Economic Studies, 41 Dacia Blvd, District 1, 010404 Bucharest, Romania)

  • Raluca Căplescu

    (Faculty of Cybernetics, Statistics and Economic Informatics, Bucharest University of Economic Studies, Virgil Madgearu building, Calea Dorobanti, no. 15-17, Sector 1, 010552 Bucharest, Romania)

  • Andrei Cânda

    (iSense Solutions, IVY Office, Occidentului 3rd, 3rd floor, 010981 Bucharest, Romania)

  • Laura Daniela Roșca

    (The Faculty of Marketing, Bucharest University of Economic Studies, 41 Dacia Blvd, District 1, 010404 Bucharest, Romania)

Abstract

Value proposition can be an important source of competitive advantage for small and medium sized enterprises (SMEs). Unlike large companies which follow a rational and sequential process, developing a value proposition in an SME is instead a trial and error process. Therefore, those companies are experimenting with various options. The purpose of this paper was to identify the value strategies used by SMEs based on value dimensions and attributes and to find specific groups of SMEs with a similar market approach. We present a theoretical framework on customer value creation and customer value communication, followed by a quantitative research on 399 Romanian SMEs. We used a principal component analysis to reduce the number of choices and afterwards we ran a cluster analysis to identify the distinct groups of SMEs using specific value propositions. We found that there are three major strategic options based on customer experience, affordability and customization, and four distinct clusters: customer delight (A), multiple sources of differentiation (B), one-to-one marketing (C) and cost—effectiveness (D). Three groups use distinct value propositions—A focuses on customer experience, C on customization, D on affordability—while B mixes all of them.

Suggested Citation

  • Alin Stancu & Alina Filip & Mihai Ioan Roșca & Daniela Ioniță & Raluca Căplescu & Andrei Cânda & Laura Daniela Roșca, 2020. "Value Creation Attributes—Clustering Strategic Options for Romanian SMEs," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7007-:d:405241
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    References listed on IDEAS

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