Abstract: After the globalization of market the micro, small and medium enterprises (MSMEs) got numerous opportunities to work in integration with large-scale organizations. Competitive advantage plays a significant role in deciding how organizations can exploit theses opportunities. So, the aim of this paper is to measure the competitive advantage of MSMEs based upon the Porter's diamond model framework. A welldesigned questionnaire is used to collect data about the various determinants of the model. Based upon the frequency of responses, percent point score (PPS) of each casual variable was calculated. By reviewing the result of this study, it is observed that competitiveness among MSME's sectors is mostly affected by market value. As is indicated by maximum PPS score e.g. 68%, followed by highly educated personnel, production and process technology (62%), further study results indicate that there is a need to increase clusters i.e. related and supported industries as depicted by low score (PPS=49%).
Keywords: MSMEs, manufacturing firm, competitive advantage, Porter's Diamond
Recieved: 15.07.2015 Accepted: 18.08.2016 UDC: 54.061