HARNESSING SUCCESS: A QUALITATIVE STUDY OF BEST BUSINESS PRACTICES AMONG HIGH-PERFORMING SMES
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Small and Medium Enterprises (SMEs) in developing economies often operate under challenging conditions, yet some consistently outperform others despite resource constraints and volatile markets. Most SMEs are led by single owners whose charismatic leadership and personal management style define the organization's direction rather than standardized processes. Understanding what drives such high performance remains a critical research gap. This study examines the strategies and managerial practices that contribute to the success of high-performing SMEs in Pakistan. Using a qualitative research design, semi-structured interviews were conducted with ten SME owners and managers representing diverse sectors, including manufacturing, services, and retail. The collected data were thematically analysed to identify common behavioural and strategic patterns associated with sustained performance. The results reveal that successful SMEs adopt a balanced approach that integrates strong customer orientation with innovative differentiation. They customize offerings to meet niche demands, focus on high-margin products, and avoid price-based competition. At the same time, they maintain strict cost control, streamline operations, and invest selectively to enhance efficiency. Leadership emerges as a central factor, with owners relying on intuition, personal networks, and hands-on involvement to respond quickly to external changes. The findings of this study suggest that the combined effects of charismatic leadership, innovation, and operational efficiency strengthen organizational resilience and enable SMEs to sustain competitive advantage even under adverse conditions.
JEL Classification Codes: L25, L26, D22.
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