The Effects of Competitive Strategy and Knowledge-Based Views on The Performance of Medium Enterprises in Shagar City

Abstract

The aim of this study was to identify of competitive strategy and the knowledge-based views on the performance of medium enterprises in Shagar City. The sample size of the study was a total of 315 leaders and non- managerial employees of firms found in Shagar city.  The source of the data for the study was both secondary and primary data in which the primary data was collected through questionnaires which was developed in English language. To analysis the collected data multiple regressions was used. As the multiple regression result of the study shows, that there is significant and moderate relationship between competitive strategy, knowledge management capacity and performance of the firm. In competitive strategy (marketing differentiation and cost leadership) are the most determinants of firm performance.  In addition, in knowledge management capacity, knowledge creation and knowledge sharing are the most determinants of firm performance. Therefore, it is advisable for small and medium firms more focusing on marketing differentiation and cost leadership, knowledge creation and knowledge sharing among staffs   that can contribute for the superior performance of the firm.