Influence Of Innovation And Cost-Cutting Strategies In The Competitive Advantage - Impact In The Production Industry In Romania

One fundamental problem in the field of management and also technology is how generally, SMEs develop and sustain competitive advantage in the markets through innovation and cost-cutting strategies. In the last decades, there are many ways in which the firms' competitiveness can be understood in the related literature. Nowadays, the small and medium enterprise (SME) represent a very important segment of the Romanian economy. The SME sector, together with the ITC sector represents in Romania, one of the most important pillars of the economy, starting with the last 10 years. This paper aims to redefine the influence of innovation and cost-cutting strategies on the Romanian SME's in the production sector and also shows a systematic review of how information together with technology has a powerful impact on how competitive advantage was obtained. The main purpose of this study is to identify the relationship that may occur between certain strategies, processes, and the competitive advantage of the production sector from Romanian SMEs. The article is based on a survey conducted between some SMEs of the big cities from Romania and provides the readers with an overview of the competitive advantage and how the innovation impacts it, while also highlighting several opportunities for the business sector in Romania.