A value proposition mix framework of successful foreign-owned small and medium enterprises in South Africa.

Abstract

The paper presents the value propositions of successful foreign-owned SMEs in South Africa. The focus on successful foreign-owned SMEs provides a stimulus for cross-cultural knowledge diffusion through internationalisation of entrepreneurial efforts by examining the currently under-studied value proposition construct within the SME sector. To achieve this aim, a multi-case empirical investigation, using the grounded theory approach, was conducted with a sample of forty-two successful foreign-owned SMEs in South Africa. The findings revealed that successful foreign-owned SMEs, in addition to commonly known value propositions (i.e product-based value propositions), have unique value propositions (customer interaction and business processes) that enable their businesses to succeed. A value propositions mix (VPM) framework for successful SMEs is presented, therefore, in this paper. The findings of this study are valuable in providing new insights into the VPM of successful foreign-owned SMEs to inform the broader development and sustainability of the SME sector operating within the African continent.