Activities Of Small And Medium-sized Enterprises Research Articles

Promoting health in small and medium‐sized enterprises

PurposeWorkplaces are described as “excellent” locations for promoting health as many employees spend more time here than in other locations, yet, many organisations overlook this opportunity. This paper seeks to examine the inhibitors and enablers that small and medium‐sized enterprises (SMEs) face when promoting health within their workplaces. Previous research within workplace health promotion has largely focused on large, often multi‐national organisations.Design/methodology/approachA descriptive qualitative approach was adopted which involved interviewing health‐promotion champions/co‐ordinators within five SMEs located in south Wales in the UK. A thematic content analysis was undertaken and key themes identified.FindingsThe results identify key enablers to participating in health‐promotion programmes as being an external facilitator and the appointment of an internal health champion/co‐ordinator. The main inhibitors were resources, time and the longevity of the external support funded by a government initiative.Practical implicationsThe paper identifies the enablers and barriers to SMEs promoting workplace health. An adaptation of a framework is provided to assist SME owner/managers to promote workplace health.Originality/valueFew studies have examined the workplace health promoting activities of SMEs and particularly the role of externally supported programmes. This paper fills some of the gaps.

Innovation in SMEs – Findings from Romania

The present paper has as a starting point the close relationship existing between entrepreneurial activity, innovations and the development of Small and Medium Sized Enterprises (SMEs). Most SMEs result from implementing the entrepreneurial spirit, through which the entrepreneurs' activity is conducted in different domains. One aspect of utmost importance is the innovation in SMEs as an indicator of the entrepreneurial activity, on the one hand and as a contributor to the organization's performance, on the other hand. Therefore, we will study and analyse the SMEs innovation activity over a period of time as an indication of how entrepreneurship evolved and manifested in Romania as a European country that integrated relatively recently into the European Union. The paper envisages looking at how innovations in SMEs from Romania evolved in the period 2003/2004 - 2010/2011. The innovative activities in SMEs are examined from a dynamic perspective and the analysis is based on the study of a number of aspects related to innovations, such as: types of innovative activities, investments in innovations, the intensity of renewing the existing products, the use of IT, the use of the Internet, etc. Based on these findings, the paper attempts to characterize the innovative activities in Romanian SMEs and their evolution in time with emphasis on the recent period.

Entrepreneurial marketing in SMEs: the key capabilities of e‐CRM

PurposeEntrepreneurial marketing in small and medium‐sized enterprises (SMEs) is very different to marketing prescribed theoretically for large organisations. The purpose of this paper is to present research evidence on the impact of internet‐based technologies (IBTs) on the customer relationship management (CRM) activities (i.e. e‐CRM) of SMEs in Ireland.Design/methodology/approachA mixed methods approach incorporating an online questionnaire, qualitative in‐depth interviews and projective techniques was adopted. Factor analysis was carried out on 286 respondents, which led to communication with customers and the management of customer information being distilled as key areas within e‐CRM in SMEs.FindingsTo varying extents, SMEs are adopting relatively simple IBTs to improve customer communication and information management capabilities and to create competitive advantage through e‐CRM. SMEs find the communication aspect of e‐CRM easier, but struggle to integrate customer information into their decision making. In all, e‐CRM tends to be ad hoc rather than strategic in SMEs.Practical implicationsSMEs must use technologies to compete with larger organisations in today's global marketplace. These technologies may be relatively simple, but the focus must always be on how they can impact on the relationship with the customer making it more efficient without losing effectiveness.Originality/valueThis study, by reporting how SMEs innovate in marketing, sheds light on an important theoretical and practical area. Theoretically, the paper breaks down e‐CRM into key capabilities that may apply to larger organisations as well.

Does Firm Size make a Difference? Analysing the Effectiveness of R&D Subsidies in East Germany

AbstractWe analyse the impact of public subsidies on private sector research and development (R&D) activity for a sample of East German firms. Using propensity score matching, our empirical results indicate that subsidized firms indeed show a higher level of R&D intensity (R&D expenditures relative to total turnover) and a higher probability for patent application compared with non-subsidized firms. We find that, on average, the R&D intensity increases from 1.5% to 3.9%. The probability of patent application rises from 20% to 40%. These results closely match earlier empirical findings for East Germany. Given the fact that the East German innovation system is particularly driven by small- and medium-sized enterprises (SMEs), we draw special attention to the effectiveness of R&D subsidies for this latter subgroup. Here, no specific empirical evidence is available so far. Our findings indicate that policy effectiveness also holds for private R&D activity of SMEs, with the highest increase in terms of R&D intensity being estimated for microbusinesses with up to ten employees.

Exploring and explaining SME marketing: investigating e-CRM using a mixed methods approach

Small and medium-sized enterprises (SMEs) are vital to our economies, and they perform marketing resembling customer relationship management (CRM) theory. This study investigated the role of technology on the CRM activities (i.e. e-CRM) of SMEs in Ireland. This paper both reports the findings and the methodological process undertaken, which was a mixed methods research design comprising quantitative and qualitative methods. Hence this paper constitutes a methodological contribution to the small business discipline. Regarding the research problem, the research design facilitated significant theoretical and practical contributions to small business marketing, regarding using technology in customer communication and customer information management in e-CRM. SMEs are performing e-CRM that enables customer communication and customer information capabilities, but challenges focus on balancing e-communication with traditional communication and integrating technologies into existing processes. For SME owner-managers, ‘Ten Commandments for e-CRM’ are presented as the paper's managerial take-away.

Aligning teaching and practice: a study of SME marketing

PurposeThis study aims to explore the role of marketing in small and medium‐sized enterprises (SMEs) and to consider how amendments can be made to the UK higher education (HE) teaching curriculum to inform marketing teaching and learning around a small business context.Design/methodology/approachA qualitative, exploratory approach using semi‐structured in‐depth interviews amongst ten owners of SMEs in the East Midlands region of the UK was used.FindingsMarketing in SMEs is centred on customer engagement, networking and word of mouth communication. HE academic institutions should take account of these findings and work towards introducing SME‐specific marketing material in its teaching and learning curricula.Research limitations/implicationsThis study uses a small number of SME companies in one region and therefore the generalisability of the findings may be limited. Further research could extend the number of SME companies and to other regions of the UK.Practical implicationsThe findings have a bearing on the UK HE marketing curriculum. This study offers insights into how the marketing curriculum in HE needs to be adapted in light of the findings to ensure marketing graduates are equipped to enter SME employment.Originality/valueStudies aligning how marketing in SMEs is practiced compared to HE teaching curriculum are limited. This research contributes to the body of literature by further exploring the characteristics and marketing activities of SMEs and highlighting the need to align teaching and practice of marketing in UK HE institutions.

Editorial: Strategic marketing management in small and medium-sized enterprises

Small and medium sized enterprises (SMEs) often face diverse strategic challenges and opportunities when operating in a variety of different industrial and geographical contexts. Traditionally the marketing concept and strategic marketing management were perceived as corporate management philosophies driven by the needs and capabilities of larger organisations. Within smaller organisations the intrinsic value of a traditional approach to marketing management is acknowledged but it is also recognised that there are context specific issues that have an impact on the nature of marketing capabilities and activities of SMEs.

The internationalisation of small and medium-sized enterprises (SMEs): a multi-level integrative framework

The internationalisation activities in small and medium-sized enterprises (SMEs) have attracted a great deal of scholarly interest in the last couple of decades. Despite the growing number of studies that focus on one or more antecedents of internationalisation activities in SMEs, there is a lack of an integrated theoretical framework that conceptualises the antecedents of internationalisation in SMEs as a multi-level organisational phenomenon. To fill this gap, we propose a multi-level integrated theoretical framework of SMEs internationalisation based on the open system perspective of organisations. This study integrates the extant literature on SME internationalisation by discussing behavioural (managerial), firm-level (resource endowments and strategy) and industry-level (life cycle and competition) antecedents. Drawing from the product-life cycle, resource-based view, organisational learning, social network and strategic management literatures, we develop an integrated framework and related propositions on the drivers of internationalisation activities in SMEs.

HRM in the Hungarian SME sector

PurposeThis paper aims to provide an original picture of a selection of human resource management (HRM) activities in the micro, small and medium sized enterprises (SMEs) in Hungary and to explore the extent to which these activities can be related to variations in firm size and variations in firm performance.Design/methodology/approachThe study measures the presence or absence of a selection of HRM activities through a questionnaire survey of a large sample of 678 Hungarian SMEs.FindingsHungarian SMEs, in their working relationships, are closer to the “happy family” model of the SME than the “bleak house” model. Employee morale was perceived as high and only one in ten SMEs felt their employees were opposed to change. Owners were reluctant to seek advice from those outside the firm. They also showed reluctance to discuss future plans with their employees although they did tend to consult employees who would be affected directly by any change. Communication within SMEs was predominantly informal. Surprisingly, given the skills shortages highlighted by SMEs in other economies, very few of the Hungarian SMEs identified skills shortages as a problem and formal training programmes were reported only rarely. Variations between micro, small and medium sized firms are highlighted to emphasize the heterogeneous nature of the Hungarian SME sector.Research limitations/implicationsThe HRM activities considered provide a picture of only a small number of HRM activities in Hungarian SMEs but the findings imply the relationships examined here are deserving of further exploration both in Hungary and other transition economies.Originality/valueThe paper provides a detailed picture of selected aspects of HRM in smaller businesses within a transition economy.

The effects of open innovation activity on performance of SMEs: the case of Korea

Most previous successful open innovation cases originated from large enterprises that have the ability to invest heavily in research and development (R&D) and to generate many new ventures. Conversely, we find only very few successful case studies of small and medium-sized enterprises (SMEs). The difference in the number of cases makes us doubt the appropriateness of open innovation strategy for SMEs. In order to show the relevance of open innovation for SMEs, the current study analyses the impact of external activities related to open innovation on innovation output by means of a logistic regression and compares the results with those of large enterprises. Further investigation was done to assess the relative impact of the external activities by means of a Bayesian network method. In conclusion, the empirical analysis shows that not all open innovation activities of SMEs have a positive effect on their innovation output.

Critical factors underpinning the e-CRM activities of SMEs

Small and medium-sized enterprises (SMEs) are vital components of our economies, but many struggle to perform the marketing prescribed theoretically for large organisations. In practice, marketing is performed in SMEs through an intrinsic customer orientation, which exhibits striking resemblances to customer relationship management (CRM) theory. This paper presents research evidence to help us understand the impact of Internet-based technologies (IBTs) on the CRM activities (that is e-CRM) of SMEs in Ireland. A quantitative approach (online survey questionnaire) was adopted and distributed to 1445 SMEs. Exploratory factor analysis uncovered eight distinct yet inter-related factors underpinning the practices and processes of e-CRM in SMEs. Briefly, findings illustrate that SMEs are performing e-CRM to varying extents, reaping a range of performance benefits and facing a range of challenges. It is true that SMEs are not adopting e-CRM per se, as described in the large organisation-biased literature, but they are adopting relatively simple IBTs to improve their customer communication and information management capabilities and thus to create competitive advantage in their own strategic way. The study adopts a strong managerial focus, where pertinent practical implications and recommendations around e-CRM are provided for SME owner-managers, helping to bridge the gap between theory and practice.

Overcoming the double hurdles to investing in technology

Technological activities of small and medium-sized enterprises (SMEs) have received considerable attention from researchers and policy makers since the mid-1980s. Small firms could nurture entrepreneurship and facilitate the creation and application of new ideas. In spite of their potential in generating innovations, it is also observed that SMEs shy away from formal R&D activities, and the firm size itself seems to be a barrier for R&D activities. SMEs operating in developing countries face extra hurdles to investing in R&D. Given the massive share of SMEs, it becomes crucial to realize their developmental potential in developing countries. In this paper, we study the drivers of R&D activities in SMEs in Turkish manufacturing industries by using panel data at the establishment level for the 1993–2001 period. Our findings suggest that SMEs are less likely to conduct R&D, but if they overcome the first obstacle of conducting R&D, they spend proportionally more on R&D than the LSEs do. R&D intensity is higher in small than in large firms. Moreover, public R&D encourages firms to intensify their R&D efforts. The impact of R&D support is stronger for small firms.

Perceived uncertainty, networking and export performance

PurposeThe purpose of this paper is to develop and empirically test model depicting the relationships among perceived environmental uncertainty, domestic and foreign networking, and export performance.Design/methodology/approachA sample of small and medium sized enterprises (SMEs) from Finland, Sweden and Norway serve as the study setting. Data were collected via mail surveys from random samples of SME owners/managers. Usable responses were 75 from Finland, 111 from Sweden and 71 from Norway.FindingsOf the four dimensions of uncertainty, only uncertainty about supplier markets emerged as a significant driver of domestic networking activities of SMEs. While domestic networking did not have a significant influence, foreign networking showed a significant positive impact on SMEs' export performance. Firm size was found to have positive impacts on foreign networking and export performance.Research limitations/implicationsThe study was limited to manufacturing SMEs in a particular region. Replications in other industries and regions are needed to validate the current findings. People from Finland, Norway and Sweden share similar cultural values and they are low on uncertainty‐avoidance. Hence, they are not threatened by environmental uncertainties and, consequently, may not feel compelled to engage in networking to reduce uncertainty.Practical implicationsThe positive linkage between foreign networking and export performance suggests that public officials in these countries should encourage SMEs to strengthen their existing foreign networks and facilitate formation of new ones via trade missions in other countries.Originality/valueUnderstanding the role of networking, as a potential buffer between environmental uncertainty and export performance, should be of interest to both researchers and practitioners.

SMEs and Environmental Regulations: A Study of the UK Screen-Printing Sector

In the literature of corporate greening, the regulatory domain has been identified as a key influence on the environmental behaviour of firms and has been linked to actions beyond compliance and to the pursuit of competitive advantage. That said, studies of the environmental performance of small and medium-sized enterprises (SMEs) suggest that, on the whole, smaller firms tend to take a more reactive and compliant stance with regard to environmental legislation, with little evidence existing to suggest that regulation provides a strong baseline for internally driven change. The authors report the findings from empirical research undertaken to assess the impact of environmental legislation upon the activities of SMEs within the screen-printing sector in the United Kingdom and explore the motivations that have driven responses to such legislation. The aim of the research was to examine the extent to which regulation was a factor in explaining SME environmental behaviour, and to identify the nature of corporate responses to environmental change. In addressing these issues a hybrid methodology was adopted, based on a quantitative survey of 200 firms in the UK screen-printing industry and a qualitative analysis of five organisations chosen from the survey respondents. The results of the survey—which had a usable response rate of 33%—and from the case-study interviews shed important light on SME attitudes, awareness, and responses to existing regulatory requirements. The authors comment on how far the evidence supports the propositions in the extant literature and examine possible policy implications of the findings.