IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i11p1158-d82547.html
   My bibliography  Save this article

A Systematic Approach to Identify Promising New Items for Small to Medium Enterprises: A Case Study

Author

Listed:
  • Sukjae Jeong

    (School of Business, Kwangwoon University, 26 Kwangwoon-gil (447-1, Wolgye-dong), Nowon-Gu, Seoul 139-701, Korea)

  • Jaehyun Han

    (School of Business, Kwangwoon University, 26 Kwangwoon-gil (447-1, Wolgye-dong), Nowon-Gu, Seoul 139-701, Korea)

  • Jihyun Kim

    (School of Business, Kwangwoon University, 26 Kwangwoon-gil (447-1, Wolgye-dong), Nowon-Gu, Seoul 139-701, Korea)

Abstract

Despite the growing importance of identifying new business items for small and medium enterprises (SMEs), most previous studies focus on conglomerates. The paucity of empirical studies has also led to limited real-life applications. Hence, this study proposes a systematic approach to find new business items (NBIs) that help the prospective SMEs develop, evaluate, and select viable business items to survive the competitive environment. The proposed approach comprises two stages: (1) the classification of diversification of SMEs; and (2) the searching and screening of business items. In the first stage, SMEs are allocated to five groups, based on their internal technological competency and external market conditions. In the second stage, based on the types of SMEs identified in the first stage, a set of alternative business items is derived by combining the results of portfolio analysis and benchmarking analysis. After deriving new business items, a market and technology-driven matrix analysis is utilized to screen suitable business items, and the Bruce Merrifield-Ohe (BMO) method is used to categorize and identify prospective items based on market attractiveness and internal capability. To illustrate the applicability of the proposed approach, a case study is presented.

Suggested Citation

  • Sukjae Jeong & Jaehyun Han & Jihyun Kim, 2016. "A Systematic Approach to Identify Promising New Items for Small to Medium Enterprises: A Case Study," Sustainability, MDPI, vol. 8(11), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:11:p:1158-:d:82547
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/8/11/1158/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/8/11/1158/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard P. Rumelt, 1982. "Diversification strategy and profitability," Strategic Management Journal, Wiley Blackwell, vol. 3(4), pages 359-369, October.
    2. Jun, Seung-Pyo & Seo, Ju Hwan & Son, Jong-Ku, 2013. "A study of the SME Technology Roadmapping Program to strengthen the R&D planning capability of Korean SMEs," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 1002-1014.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elena Lascu & Irina Severin & Florina Daniela Lascu & Razvan Adrian Gudana & Gabriela Nalbitoru & Nicoleta Daniela Ignat, 2021. "Framework on Performance Management in Automotive Industry: A Case Study," JRFM, MDPI, vol. 14(10), pages 1-20, October.
    2. JinHyo Joseph Yun & Tan Yigitcanlar, 2017. "Open Innovation in Value Chain for Sustainability of Firms," Sustainability, MDPI, vol. 9(5), pages 1-8, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    2. Sukpanich, Nessara & Rugman, Alan, 2007. "Intra-regional sales, product diversity, and the performance of merchandising multinationals," Journal of International Management, Elsevier, vol. 13(2), pages 131-146, June.
    3. Joon Mahn Lee & Rahul Kapoor, 2017. "Complementarities and Coordination: Implications for Governance Mode and Performance of Multiproduct Firms," Organization Science, INFORMS, vol. 28(5), pages 931-946, October.
    4. Cory Cassell & Emily Hunt & Gans Narayanamoorthy & Stephen P. Rowe, 2019. "A hidden risk of auditor industry specialization: evidence from the financial crisis," Review of Accounting Studies, Springer, vol. 24(3), pages 891-926, September.
    5. Vasanthan Subramaniam & Shaista Wasiuzzaman, 2019. "Corporate diversification and dividend policy: empirical evidence from Malaysia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 735-758, September.
    6. Goldsmith, Peter D. & Gow, Hamish R., 2005. "Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(2), pages 1-21.
    7. Raffaele Morandi Stagni & Juan Santaló & Marco S. Giarratana, 2020. "Product‐market competition and resource redeployment in multi‐business firms," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1799-1836, October.
    8. Andrea Cuccia, 2018. "Potential of IFRS 8: Managerial "customization", relevance of subsidiaries and separate financial statements," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2018(1), pages 103-131.
    9. Simon Parker, 2014. "Who become serial and portfolio entrepreneurs?," Small Business Economics, Springer, vol. 43(4), pages 887-898, December.
    10. Maria Guadalupe & Hongyi Li & Julie Wulf, 2014. "Who Lives in the C-Suite? Organizational Structure and the Division of Labor in Top Management," Management Science, INFORMS, vol. 60(4), pages 824-844, April.
    11. Ireneusz Janiuk, 2017. "Mergers and Acquisitions: Their Role in the Process of Diversification of an Enterprise," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 13(01), pages 37-52.
    12. Ron Adner & Peter Zemsky, 2016. "Diversification and Performance: Linking Relatedness, Market Structure, and the Decision to Diversify," Strategy Science, INFORMS, vol. 1(1), pages 32-55, March.
    13. Jonathan R. Clark & Robert S. Huckman, 2012. "Broadening Focus: Spillovers, Complementarities, and Specialization in the Hospital Industry," Management Science, INFORMS, vol. 58(4), pages 708-722, April.
    14. Alessandra Storlazzi, 2009. "Market-Driven Management and Global Economies of Scale," Symphonya. Emerging Issues in Management, University of Milano-Bicocca, issue 2 Market-.
    15. Sara Parker‐Lue & Marvin Lieberman, 2020. "The impact of diversification on task performance: Evidence from kidney transplant centers," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1169-1190, July.
    16. Paloma Almodóvar & José Emilio Navas López & Patricia Huerta Riveros, 2009. "La tipología estratégica como factor determinante de la empresa conjunta internacional," Investigaciones Economicas, Fundación SEPI, vol. 33(3), pages 407-438, September.
    17. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    18. Ding, John Y. & Caswell, Julie A., 1991. "A FRAMEWORK FOR ANALYSIS OF ALTERNATIVE RESTRUCTURING STRATEGIES EMPWYED BY LARGE FOOD MANUFACTURERS IN THE 1980s," Working Papers 116101, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    19. Hunt, Richard A., 2021. "Entrepreneurial orientation and the fate of corporate acquisitions," Journal of Business Research, Elsevier, vol. 122(C), pages 241-255.
    20. Friberg, Richard, 2019. "All the bottles in one basket? Diversification and product portfolio composition," CEPR Discussion Papers 14119, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:8:y:2016:i:11:p:1158-:d:82547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.