Performance based segmentation of small and medium enterprises: A data mining approach

Small and medium enterprises (SMEs) try to improve their processes, products and services through quality initiatives and innovation in processes, products and services. However, not all of them successfully apply these measures across all business domains. Use of financial, quality or productivity measures alone may not bring competitive advantage unless innovation and learning become a key parameter to define the strategic objectives. This paper focuses on investigating productivity, quality, innovation and learning initiatives implemented by SMEs. SME performance varies largely depending upon implementation level of these measures. Data was collected on these parameters from 38 SMEs and thirty three measures were investigated for their use in local companies which were then segmented based upon their performance.