Market niches as dynamic, co-created resource domains

Competing in niches is a fundamental marketing strategy for SMEs in business-to-business markets yet how internationalizing SMEs come to compete in the niches they do is unclear. Using multiple case studies of competing firms in a single B2B industry sector, this research found that niches evolved i...

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Bibliographic Details
Published in:Industrial marketing management 2021-05, Vol.95, p.29-40
Main Authors: Odlin, Denis, Benson-Rea, Maureen
Format: Article
Language:English
Subjects:
Competition
Industry evolution
Internationalization strategy
Market co-creation
Niche marketing
SME
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Summary:Competing in niches is a fundamental marketing strategy for SMEs in business-to-business markets yet how internationalizing SMEs come to compete in the niches they do is unclear. Using multiple case studies of competing firms in a single B2B industry sector, this research found that niches evolved in response to resources supplied or withdrawn by early customers, sales channels, shareholders and competitors. We show that market niches are dynamic resource domains where market actors co-create new, specialized value. SMEs may target new niches when they internationalize because they cannot access the resources needed to co-create their domestic niche or because resources are valued differently. •Niches are resource domains of new specialized value co-created by market actors.•Niches keep changing as market actors provide access to or withdraw resources.•Early customers, key partners and competitors influence niches for B2B SMEs.•Internationalizing B2B SMEs co-create new niches in response to new value in context.
ISSN:0019-8501
1873-2062
DOI:10.1016/j.indmarman.2021.03.008