Characteristics Of SMEs Research Articles

Impact of Mandatory Audits of Small- and Medium-Sized Enterprises on Their Income Tax Compliance: Evidence from the Egyptian Small- and Medium-Sized Enterprise Stock Market

Small- and medium-sized enterprises are essential to the economies of nearly all countries, as they directly influence the GDP and tax revenue. In 2019, the European Federation of Accountants and Auditors for SMEs surveyed SME account users, revealing that tax authorities were the most common recipients of the company’s accounts, accounting for 61.40% of cases. This study, from a macroeconomic perspective, aims to uncover evidence of the impact of mandatory audits of Egyptian SMEs on their income tax compliance. It also seeks to explore the Egyptian SME tax environment to fill the knowledge gap by exploring perceptions of SMEs’ tax performances and their levels of tax. This study provides evidence that the taxpayers’ tax compliance behavior is an essential and decisive factor in the compliance of Egyptian SMEs with income tax. The results show that SME management is less persuaded by the potential benefits of mandatory audits on tax compliance than auditors and academics. Also, the study found experimental evidence confirming that the mandatory auditing of SMEs positively impacts their compliance with income tax. Additionally, this study developed a tax compliance scale (the RTRP scale) that effectively suits the nature and characteristics of SMEs, enabling the quantitative measurement of their compliance levels with income tax, as well as comparisons between SMEs.

The Influence of Religious Identification on Strategic Green Marketing Orientation

AbstractSmall and medium-sized enterprises (SMEs) play a critical role in the green economy due to their significant environmental footprint. Because more than 84% of the world’s population identifies with a religion, most SME top-executives are likely to identify with a religion that would influence their decision-making. Despite these recent advances, prior studies have focused on SMEs’ external drivers and did not consider the role of internal drivers, such as the characteristics of SMEs’ top-executives, in influencing green marketing strategy. We aim to address this gap by focusing on religious identification as a key driver of green marketing by SMEs. Specifically, we examine the effects of top-executives’ religious identification on strategic green marketing orientation (SGMO), and how such effects are moderated by political ideology. Using respondents comprised of CEO and/or owner-managers of SMEs in the US, the results show empirical evidence supporting the importance of religious identification in influencing green marketing decisions. Moreover, we found that the effects of religious identification on SGMO are more pronounced among top-executives with Conservative ideology.

SMEs, Sustainability, and Capital Budgeting

This applied analysis addresses issues and concepts of capital budgeting for sustainability-related projects by SMEs. It reviews literature on SME characteristics, sustainability for SMEs, and capital budgeting for investments in sustainability-related projects. A discussion of the implications of capital budgeting for sustainability-related projects by SME managers, policy makers, and future research is included.

Empirical Evidence of Inbound Open Innovation Practice by Ghanaian SMEs

Inbound open innovation (IOI) is credited with high productivity in businesses. However, this is marred by resource and structural constraints in Ghanaian SMEs. Therefore, this study explores the odds of Ghanaian SMEs engaging in inbound open innovation given SMEs characteristics and IOI collaboration modes. Further, we examine the mediating effect of SMEs’ CEO characteristics in increasing or decreasing these odds. Using a sample of 657 registered SMEs’ of the Association of Ghanaian Industries, the survey data is estimated with a stepwise logistic regression model to show the multiplicative effects of the variables. The results show that the odds of engaging in inbound open innovation is higher for; SMEs located in urban areas, SMEs with partnership or company ownership structure, SMEs with research and development departments, SMEs not collaborating with universities, manufacturing SMEs, and SMEs that are relatively bigger in size. Further, these odds increase when the characteristics of CEOs of the sampled SMEs are accounted for in the model. Thus, the characteristics and traits of CEOs are only useful given the right resources and environment. Relying on the major (main) outcomes of the study further feasible suggestions are recommended.

Challenges on Water Footprint (WF) Accounting of Batik Production: A Reflection from the Study on Batik SMEs in Jarum Village, Klaten Regency, Indonesia

Indonesian batik has been a cultural product for a hundred years. Its recognition as an intangible heritage has led its production to bring benefits in economic terms. However, there are environmental problems indicated by its production, and one of which is the water use. It is common to find information regarding the pollution caused by batik production. However, studies on water footprint of batik could bring insight that batik problem in relation to water doesn’t limit solely to pollution, but also to the huge volume of water consumed during batik production. In this understanding, the WF approach, both consumptive and degradative water use, is important. Although studies on batik WF have been conducted, it is still limited. This paper discusses the challenges faced in exploring batik WF based on field experience. An understanding of batik itself and batik SME characteristics are required because they are closely related to the WF of the process. Finally, this paper explains the conceptual and technical challenges that will be faced during the study of batik WF.

A study on the strategic momentum of SMEs’ digital transformation: Evidence from China

The digital transformation of Chinese SMEs faces the reality of slow start-up and difficult deepening. Considering the multi-stage characteristics of SMEs' digital transformation, this article is drawn on the theory of strategic momentum and the TOE framework is improved to examine the process of Chinese SMEs' digital transformation from the dimensions of response speed and implementation depth. Data from 221SMEs is analyzed through the fsQCA to explore the complex interactions between digital technology, organization, environment and the initial and deepening stages of Chinese SMEs' digital transformation. Three key findings are revealed. Firstly, to effectively promote the initiation speed and implementation depth of SMEs' digital transformation, a collaborative effort is required by entrepreneurs, digital service companies, customers, and government. Secondly, external factors have a significant promoting effect on both the initial and deepening stage of SMEs' digital transformation. Of particular note is the usability of digital technology, which is indicated to be a crucial factor for both the initial and integration stage. This indicates that SMEs exhibit a heightened sensitivity to the complexity and future uncertainty of digital technologies. Thirdly, by promoting the digitalization of industrial clusters, the deepening stage can be facilitated effectively by governments.

Development of workplace design framework for manufacturing small and medium-sized enterprises in Indonesia

Purpose: This study aims to develop a workplace design framework suitable for manufacturing SMEs in developing countries, particularly in Indonesia, as a guide for manufacturing SME managers.Design/methodology/approach: The development of workplace design framework in this study was initiated by reviewing the literature on the methodology or framework of workplace design in the manufacturing industry. The methodology or framework of workplace design was then analysed and evaluated based on the characteristics of SMEs to determine the possibility of its implementation in Indonesian manufacturing SMEs. Based on the analysis and evaluation results, a workplace design framework then proposed to assist SME managers in designing their workplaces.Findings: Two of the five workplace design frameworks introduced by previous researchers have many conformities with the characteristics of manufacturing SMEs in Indonesia and can be implemented with minor adjustments. Finally, a workplace design framework has been developt and proposed to assist managers of manufacturing SMEs in Indonesia in designing their workplaces.Research limitations/implications: This study offers a workplace design framework that can be applied by managers of manufacturing SMEs in designing their workplaces to obtain a safe, healthy and productive workplace.Originality/value: This study is the first in developing a workplace design framework for manufacturing SMEs in developing countries, particularly Indonesia. The results of this study will be able to assist manufacturing SME managers in designing their workplaces.

Effect of wheat dextrin on corn flour extrusion characteristics

Wheat dextrin is a modified wheat starch, classified as water-soluble. This study investigated the effect of wheat dextrin as an ingredient in corn flour blends on extrusion characteristics. Blends were prepared at 0, 10 and 20 % fibre content. DOE was used to design experiments and investigate the effects of variables selected to be studied. Feed moisture content was set at 18–25 %, temperature at 110–150 °C and specific feeding load at 0.100–0.150kg/rev. Moisture content, water absorption and solubility indices, color, sectional expansion index, density, hardness, crispiness (work (Wc) and number of spatial ruptures (Nsr)) and specific mechanical energy were evaluated. A regression model was established using response surface methodology, and processing conditions for optimal quality were generated (e.g., WSI: 96.9 %, SME: 96.9 %, final MC: 93.9 %). Wheat dextrin solubility characteristics for moisture content, WAI and WSI were inconclusive, showing a high tendency to insoluble behavior. For expansion, lightness and SME characteristics depended on processing conditions, especially temperature. Crispness was highest at low MC (18.87 %) x high fiber content (20 %) (e.g., Nsr: 1.2–1.5/mm), whereas values were the lowest at high MC (25.70 %) x low fiber content (0 %) (e.g., Nsr: 0.5–0.7/mm). Optimal conditions were set at 12 % fiber content, 19 % feed moisture content, 130 °C and a specific feeding load of 0.146 kg/rev. This study showed that it is impossible to classify wheat dextrin as acting strictly according to soluble fiber characteristics based on extrudate characteristics.

Portuguese SMEs: Strategies for Collaborative R&D and Participation in the Framework Programme

The European Union Framework Programme can create and/or strengthen research networks and cooperation, namely between SMEs and higher education institutions. However, in Portugal, SMEs represent only 16,7% of allocated funds, falling below the European Commission’s target (Agência Nacional de Inovação, 2020). Low SME participation can result from factors particularly related to SMEs, such as organizational characteristics and past R&D experience. In fact, previous collaborative R&D experience is an important factor determining participation in Framework Programmes (Barajas & Huergo, 2010), suggesting a virtuous cycle. How and why do SME gain collaborative experience with HEI? In what kind of collaborative experiences with HEIs do SMEs engage? What are the characteristics of SMEs that engage in these experiences? What obstacles and risks do SMEs face when applying for the FP and which strategies do they adopt to face them? To answer these questions, we conducted an exploratory survey with SMEs that collaborate with HEIs (N = 26). Additionally, we conducted semi-structured interviews with three H2020 participant SMEs and three non-participants to further explore their collaborative practices and R&D strategies.

Investigation of the Influence of Organisational Internal Factors on e-Business Diffusion in the Small-to-Medium Enterprise (SME) Sector in Zimbabwe.

This research investigates the influence of ten selected organisational factors on e-business diffusion. A survey design was engaged, using a questionnaire based on a five-point Likert scale. Data was collected electronically through survey monkey platform to reach firms recorded in the Zimbabwe Revenue Authority’s (ZIMRA) Small and Medium Enterprises register which was taken as the sampling frame. A quantitative research design was adopted, using probability random sampling method. Seven hundred (700) questionnaires were e-mailed to owners and managers of the firms and 590 of the 603 returned were usable. The data analysis was based on the demographic information which depicted organisational factors. ANOVA tests were carried out to determine the factors that were significant in influencing the respective firms’ ability to adopt e-business. These were further tested through structural equation modelling (SEM) (AMOS SPSS v26) and goodness of fit tests to reaffirm their significance. Overall, the study concluded that SME characteristics have a significant influence on e-business diffusion in the SME sector in Zimbabwe. The researcher recommended that Government should develop a fully equipped modern national ICT infrastructural network to anchor the internal systems of the SMEs. They should also provide adequate financial support to enable the SMEs develop the requisite internal ICT systems and training of personnel. The SMEs, on their part, should modernise their operational systems to be in line with the current wave of virtual business models necessitated by the ravaging COVID-19 pandemic.

Identifying prosperity characteristics in small and medium-sized enterprises of Pakistan: firm, strategy and characteristics of entrepreneurs

PurposeThe link between SME performance, growth and development is well established; however, the characteristics of SMEs that allow firms to be successful in the long run in an underdeveloped country context, i.e. Pakistan, are still unclear. This paper aims to bridge this gap by identifying the SMEs’ characteristics that set them apart from their rivals and become successful.Design/methodology/approachThis study uses Storey’s development framework to identify the SMEs’ characteristics. Data is gathered using the case study method from SMEs with a metropolitan context in Pakistan. A narrative methodological framework was used during the data gathering and analysing stages.FindingsFindings of this study indicate that the prosperity of SMEs in Pakistan is dependent on a combination of characteristics, including entrepreneurial characteristics of owner–managers, knowledge of business operating models, social networks and relationship building and innovation in business style. Additionally, other factors such as governance structure, strategic planning of market diversification and export characteristics also influence the prosperity of an SME. These findings may have several important implications for key stakeholders, including entrepreneurs, SMEs and policymakers in the government.Originality/valueThis research provides evidence about factors that can help an SME to become successful in uncertain situations surrounding a business environment. Theoretically, the contribution of this research is that it demonstrates that entrepreneurial characteristics and the effective leadership style of owner–managers can help SMEs achieve prosperity in external unforeseeable situations.

Partner selection strategies of SMEs for reaching the Sustainable Development Goals

The paper aims to investigate the characteristics of SMEs’ partners that can better contribute to the achievement of the SDGs. Given the explorative nature of this research, a qualitative methodology is adopted, with a longitudinal case study employed as the research method. The Wråd case study confirmed that SMEs can contribute to the achievement of the SDGs by developing partnerships with multiple stakeholders. In addition, this research revealed that the characteristics of the SMEs’ partners can be referred to the four following dimensions: economic, environmental, social and purpose. Furthermore, it proposed that quality utility value, technique level, profitability are the subdimensions of the economic dimension and that resource consumption efficiency, pollution production, energy efficiency, environment management system and environment equipment and facilities are the subdimensions of the environmental dimension. This research expressed also that public health, employee engagement, brand reputation and local communities’ influence are the subdimensions of the social dimension. Finally, it underlined that sustainability-oriented awareness development, sustainable orientation, sustainable collective culture, proactive managerial skills, organisational learning and proactive and innovative leadership are the subdimensions of the purpose dimension. In line with previous studies underlining the importance of increasing the TBL dimensions, this study suggests a further extension of this theory with the ‘purpose’ dimension. This study highlights the importance of developing a vision supported by a social awareness of the problems that need to be addressed and that transcend the fashion sector. Further researches could explore a larger sample of SMEs operating in different businesses and the point of view of the SME’s partners.

The Female MSME Practitioners and Digitalization from a Feminist Perspective

This study is about women SMEs' meaning and use of digital technology. The feminist intersectional approach is used to answer how gender, religion, social class, daily activities, and place of residence shape the characteristics of women SMEs. How do they interpret the business they are running, and what is the urgency of digitization in running their business? Respondents were female SME practitioners from Kangean and Paciran sub-districts selected using snowball sampling. Data analysis was carried out interpretively using a feminist standpoint by including the researcher's knowledge as a reference. The feminist intersectional approach helps identify women SMEs' religiosity and life orientation in the two regions in running their businesses. Furthermore, unlike other studies that find digitalization a necessity in business, this study finds that digitalization is not urgent for their lives. Religiosity and life orientation that are formed from the intersection of many factors around them make SME women do gender. They accept and even believe that developing an SME business is not the main thing in their life. Even digital technology needs to be avoided because it has a negative impact.

The Interplay Among Restaurant SMEs' Financial, Quality, and Managers' Perceived Business Performance

The present study aims to test a simplified version of the balanced scorecard (BSC) model for restaurant industry SMEs. This study aims to determine if (I) restaurant managers' perceived business performance correlates to SMEs' (II) actual financial and (III) quality performance. A new variable, the manager's perceived business performance, was added in light of the unique characteristics of restaurant SMEs. We hypothesized that all three business perspectives are positively correlated since restaurant managers must have realistic perceptions of SMEs' business performance. A total of 266 questionnaires were obtained from restaurant managers, and 1,330 questionnaires were obtained from restaurant guests. SMEs' official financial reports served as the basis for the analysis of financial data. Exploratory factor analysis and correlation analysis were used to investigate the relationships among the three perspectives. Results indicate that managers' perceptions of business performance are not correlated to SMEs' actual financial performance, and managers have realistic perceptions about the quality of what restaurants offer. Interestingly, SMEs' financial performance is not correlated to guests' perceptions of quality. Introducing a new internal perspective indicates the incoherence among the three BSC perspectives. Furthermore, using selected variables highlights the necessity of raising the managerial perspective in future restaurant SME studies.

Analysis of Challenges faced during Adoption of ICT by Small and Medium Enterprises in India

Purpose: This review article concentrates on the issue of SMEs' slower adoption of ICT. The review begins with the nature and characteristics of SMEs and their importance, moving on to the challenges in the implementation of ICT by SMEs. The potential use and drivers of ICT in SMEs, their conceptual framework, and the reduction of a gap in ICT adoption are discussed. ICT evaluation strategies in Indian SMEs and other developed countries are analyzed. Finally, before going into the future of ICT in SMEs, the tools used for the analysis of challenges in ICT are reviewed. Methodology: This paper explores the papers and articles available on challenges to the adoption of ICT to analyze various parameters in SMEs. Findings/Results: ICT adoption can assist SMEs in reducing costs by enhancing internal procedures and strengthening their business through better consumer interaction. SMEs appear to be delayed in adopting and using ICT in comparison to other sectors, despite the aforementioned knowledge and the relevance of ICT has long been acknowledged as a sector catalyst for other industries and economic prosperity. While large corporations have increased their use of ICT to obtain a competitive advantage, SMEs, who continue to confront restricted accessibility to markets and information, have shown little interest. Research Limitation: Though the review article has reviewed more than 200 papers, the work is based on literature rather than empirical findings, limiting the current work and paving way for future empirical research on the same. Originality/Value: Based on the findings ABCD analysis and research into the barriers to SMEs adopting ICT and other aspects detailed in this review are warranted. Paper Type: Literature review paper

Analysis of E-commerce Characteristics of SMEs: Evidence from Scotland

The development of internet and digital tools has inspired the dramatically increased usage of e-commerce in the past decades. Both small and medium sized enterprises and the economy could benefit from e-commerce adoption. Based on Scottish government survey data in 2021, this study analysed the main features of e-commerce in SMEs and explored factors influencing the level of e-commerce usage. Research variables include size of businesses, business market, sector, business location, use of technologies, and investment in digital. The findings of the study show that: (1) micro-sized enterprises are more favoured in using e-commerce to selling goods or services; (2) though businesses adopting less technologies rely less on e-commerce, they have shown greater inclination in digital investment; (3) business sector and location could affect the choice of SMEs in adopting e-commerce. The findings signal that further research could explore the effects of other variables and COVID-19 on e-commerce usage in SMEs.

Nexus between entrepreneurial characteristics and small business productivity in Nigeria

Purpose — The productivity challenge confronting small businesses in developing countries has been identified among others to include entrepreneurs’ characteristics. The objective of the study was to investigate the effects of entrepreneurs’ characteristics on the business productivity of SMEs in Nigeria and anchored on the entrepreneur’s innovativeness, experience, orientation, and risk-taking propensity.Method — It was a cross-sectional study carried out among entrepreneurs of SMEs in Southwest Nigeria using a descriptive research survey design. Respondents were selected using a convenience sampling technique. A sample size of 400 respondents was selected for the study, and descriptive statistics such as frequencies and percentages were adopted for data analysis. The hypotheses formulated were tested using chi-square at 0.05 level of significance.Result — The result of the study revealed that an entrepreneur’s characteristics, such as innovativeness, experiences, orientation, and risk-taking propensity, significantly impact productivity. However, innovativeness and risk-taking were paramount among other entrepreneurial characteristics of SMEs in Nigeria.Contribution — The result validated the works of the earlier scholars in the study area and contributed to expanding literature on how entrepreneurs’ characteristics, especially their innovativeness, experience, orientation, and desire to take risks, can solve small business challenges in developing economies.

The impact of SMES characteristics on management accounting practices: Evidence from the state of Amazonas

The impact of SMES characteristics on management accounting practices: Evidence from the state of Amazonas

Empowerment and Innovation Types: Key Advance Performance of SMEs in Saudi Arabia

This research examines the effects of psychological empowerment on firm performance through the mediation of innovation types. Using survey data of 202 employees in Saudi Arabia SMEs and a structural equation modeling (SEM) approach, the study finds that psychological empowerment can enhance, directly and indirectly, firm performance. The study also finds that psychological empowerment produces a positive effect on innovation types. Moreover, the study finds an innovative type sequentially mediates the relationships between psychological empowerment and firm performance. An examination of psychological empowerment helps identify a critical psychological process and understanding how empowerment affects firm performance. Furthermore, an organization’s ability to change its capacity and innovation is associated with the observable characteristics of SMEs and the environmental requirements. Contributions to both research and practice are considered, as well as the study’s limitations and followed by the study’s conclusions.

Servitization of SMEs: Focused on the Electrical Equipment and Metal Parts Manufacturers in South Korea

Servitization is becoming an essential strategy for manufacturers to gain competitive advantage, and several successful cases have already been reported. However, these success stories are mainly studied for large enterprises such as GE, IBM, Xerox, and Rolls-Royce. Therefore, it is difficult to apply the cases to the servitization of SMEs, thus in this study, the status of SMEs’ servitization was examined and the applicability was studied. Among those SMEs, manufacturing of electrical equipment and basic metal parts were selected because they are related to all manufacturing industries. As a research method, companies in the relevant industry were randomly selected and CEOs, managers, and employees were interviewed. Through in-depth interviews, the company’s current servitization status in the perception of different employment levels and new servitization opportunities are analyzed. As a result of the interview, the level of servitization in the industry seems to be very low, and it seems that there are very few new servitization opportunities due to the characteristics of general SMEs, such as lack of capital and human resources. Nevertheless, companies were aware that servitization was necessary for sustainability, and they could confirm their will to take on a challenge if there was an opportunity in the future.