Small firms' ‘distinctive capabilities’ and the socioeconomic milieu: findings from case studies in Le Choletais (France) and the East Midlands (UK)

This paper studies the way in which small clothing firms create and ‘add value’in socioeconomic milieux in the East Midlands (UK) and Le Choletais (France). It attempts to identify and evaluate those internal or external ‘distinctive capabilities’that constitute competitive advantage within small firms, according to the firm‘s general aims and objectives, vision and strategic awareness. The survey reveals that sub-contracting arrangements arc different, with French companies having more partnerships. The French companies attach more importance to new technology, improving management skills, and acccss to market information. The overwhelming difference between the French and British companies is thc virtual non-use of formal, local institutional networks by the British companies.