Abstract:

Small and medium enterprises play a crucial role in economic growth and technological progress, but
there is little research about the operational performance and strategies of these SMEs, especially in Asia.
This study develops a taxonomy of operations strategies on the basis of the operational performance of
high performing SMEs in Singapore. The study was based on 43 SMEs drawn from the Enterprise 50
Award winners, which ranks Singapore's high-performing, privately held, local firms.A questionnaire
asked firm representatives to identify their operations priorities. Six functional areas were identified:
marketing, finance, operations, information systems, human resource, and research and development.
Three strategic clusters were found: "all-rounders," "efficient innovators," and "differentiators." Analysis
showed the clusters were significantly different in the operational posture, financial performance, and
kinds of improvement programs undertaken.Operations was found to be the dominant competitive tool
for most successful enterprises; enterprises develop and compete effectively on multiple priorities; and
successful enterprises ensure that improvement programs match operational goals and objectives. Also
investigated was the strategic role of the contribution of operations to corporate strategic formulation and
profitability.Implications of findings for management are presented. (TNM)