Development of Analytical Framework for SME’s Competitiveness Based on Competency Approach

Abstract

The purpose of this paper is to provide a theoretical rationale for investigating the relationship between entrepreneurial characteristics and the SME’s performance at the firm level through adopting the concept of competitiveness incorporated with entrepreneurial competencies. The model distinguishes between two dimensions of competitiveness, assets and process and six areas of competencies of an entrepreneur with the in creating competitiveness scope and capabilities of the firm. A major contribution of the theoretical framework is the organization of the existing theories and findings in entrepreneurial characteristics, and future theoretical development and empirical studies of SME competitiveness can be made based on this framework.