Context Of Small And Medium Enterprises Research Articles

Turnover Intention among employees of Small and Medium Enterprises (SMEs): the moderating role of Employee Engagement

Purpose – This study was conducted to ascertain the influence of person-organization fit (P-O fit) and job satisfaction on turnover intention within Small and Medium Enterprises (SMEs). Moreover, the mediating role of employee engagement in both of these associations was explored. Methodology – A cross-sectional survey was administered, targeting Small and Medium Enterprises (SMEs) in Lampung, Indonesia. The study involved 198 participants and data collection was conducted through the utilization of a questionnaire. To test the hypotheses, a quantitative approach incorporating structural equation modeling (SEM) was employed, using the AMOS software package version 24.0. Findings – The study showed that P-O Fit and job satisfaction had a negative impact on turnover intention. Employee engagement was also identified as a mediating factor in both of these relationships. Originality – There was a lack of extensive study examining the correlation between the variables within the specific context of SMEs, particularly in Lampung. Therefore, this study was carried out to introduce a study model grounded in social exchange theory.

Influence of Supportive Leadership Style on Performance of Manufacturing Small and Medium Enterprises (SMEs) in Nairobi, Kenya

This paper is based on a study that was conducted to examine the influence of supportive leadership style on organizational performance of manufacturing SMEs in Nairobi County, Kenya. Guided by the path goal leadership theory, the study employed use of a positivism research philosophy and descriptive correlational research design to determine the relationship between the two variables. The study targeted listed SME members of the Kenya Association of Manufacturers comprising 425 managers/owners of the organizations in Nairobi region. A sample size of 369 managers/owners was obtained from the population through stratified random sampling of the manufacturing SMEs. Data collection was done using self-administered questionnaires with a follow up analysis using both descriptive and inferential statistics. The descriptive statistics included mean, standard deviation, skewness and kurtosis while inferential statistics included Pearson’s correlation, chi-square and binary logistic regression. Binary logistic regression (Cox and Snell R squared) showed a 12 % probability of organizational performance being explained by adoption of supportive leadership style. The study indicated a significantly positive relationship between supportive leadership style and organizational performance (β= 4.114, p = .000, p < 0.05) rejecting the null hypothesis “Supportive leadership style does not influence organizational performance in manufacturing SMEs in Nairobi.” The study therefore concludes that supportive leadership style significantly influenced performance of manufacturing SMEs in Nairobi County. These findings provide a new understanding to the owners/managers of manufacturing SMEs on how supportive leadership impacts on organizational performance. Nonetheless, the study recommends further research in a wider context of SMEs in Kenya taking note of demographic features and the use of a longitudinal approach in conducting the study.

Relationship Between Organizational Culture and Organizational Commitment: Moderation Effect of Job Satisfaction Among SME in Beijing, China

This conceptual paper examines the relationship between organizational culture, organizational commitment, and the moderating effect of job satisfaction in Small and Medium Enterprises (SMEs) located in Beijing, China. Drawing on relevant theoretical perspectives and empirical studies, the paper provides a comprehensive analysis of these constructs and their interconnections. The findings highlight the significance of a positive and supportive organizational culture in fostering higher levels of organizational commitment. Additionally, the paper explores the moderating role of job satisfaction in strengthening the relationship between organizational culture and organizational commitment. The conclusions emphasize the importance of prioritizing employee satisfaction and cultivating a positive organizational culture to enhance commitment in SMEs. The limitations of the study are discussed, and future research directions are proposed, including empirical studies, cross-cultural comparisons, longitudinal research, and intervention studies. Overall, this conceptual paper contributes to the understanding of organizational behavior in the specific context of SMEs in Beijing and offers valuable insights for stakeholders aiming to promote organizational commitment and sustainable growth.

The Relationship between Strategic Planning, Strategic Flexibility and Firm Performance in SMES of Saudi Arabia: Mediating Role of Strategic Flexibility

The small and medium enterprises (SMEs) sector plays a significant role in any economy, particularly in a competitive global business environment. However, the SMEs sector could achieve its targets only if it embraced proven strategic management practices. Therefore, this study investigates the mediating role of strategic flexibility on the relationship between strategic planning and firm performance within the context of SMEs in Saudi Arabia. The resource-based view and contingency theories support the study's framework and conclusions. A cross-sectional survey was used to collect the primary data from a sample of 400 owners and managers of medium-sized enterprises in Saudi Arabia. Hypotheses were tested using the Structural Equation Modeling (SEM) method. The study tested the correlation and mediation analysis using PLS-SEM. The study found a significant relationship between strategic planning and firm performance. Also, there is a relationship between strategic planning and strategic flexibility. The association between strategic flexibility and firm performance is also significant for medium enterprises in Saudi Arabia. The results also revealed that strategic flexibility mediates the relationship between strategic planning and firm performance. The study’s finding contributes to the planning-performance literature. The study provides helpful recommendations for SMEs that they can use to improve the overall systems of their organizations.

Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia

Purpose This study aims to investigate the ways that human capital influences the strategic orientation variables entrepreneurial orientation (EO) and market orientation (MO), which ultimately leverage the firm performance of small and medium enterprises (SMEs) in Indonesia. Design/methodology/approach This study used a quantitative method with a total of 274 SMEs in the Regency of Gresik, East Java, Indonesia, as the observable population. Furthermore, the identified samples obtained through the random sampling technique were determined using the Slovin formula with 163 SMEs used for analysis. As the means of analysis, this study used a statistical approach by using PLS-SEM statistics from SmartPLS software. This analytical tool has been proven to be a robust statistical tool that has been used in many marketing studies. Findings This study found that human capital is a key determinant of EO and MO as strategic orientations of SMEs. Furthermore, this study highlighted that SMEs’ strategic orientations (i.e. EO and MO) provide a valuable thrust that leverages firm performance. Moreover, the role of human capital in leveraging firm performance was found to be significant with the role of the joint effect of EO and MO as mediator. This implies that human capital is not solely a single determinant that leverages SMEs’ performance. Research limitations/implications There are few aspects of limitations in this research that could be enhanced by other scholars in the discipline of entrepreneurship. First, the strategic orientation concept being indicated by EO and MO had yet to provide a comprehensive view of strategic orientation. Second, this research used samples that represent the traditional furniture cluster in East Java and had yet to explore other clusters such as food processing and services cluster which may be relevant to the context of SMEs in Indonesia. Practical implications As a practical implication, this study would benefit policymakers in Indonesia, such as the Ministry for Cooperatives and SMEs to provide assistance to SMEs to progressively nurture capacity-building through formal and informal education to leverage human capital. Moreover, it could benefit other relevant businesses, such as national banks in Indonesia whose interests are significant, especially in providing financial access to SMEs in Indonesia. Social implications The social implication of this research lay the focus on the suggestion by which SMEs must be able to optimize their capabilities by enhancing levels of human capital particularly for traditionally managed SMEs. The ability to survive external pressures for would be able to contribute to the social well-being of their society as many people are dependent heavily in the operation of the SMEs. Originality/value The significance of this study is twofold. Although the use of human capital as a determinant of firm performance has been discussed in the literature, few studies to date has sought to predict human capital with EO and MO as mediators of firm performance. Furthermore, the joint impact of EO and MO as a strategic orientation needs to be holistically explored and explained, particularly in an emerging economy context.

SMEs Digitalisation Through Clustering, the Role of Open Innovation: A Research Agenda

Clustering has been a widely pragmatic practice of small and medium enterprises (SMEs) for innovation during the last two decades. Though its application is complicated due to the challenges and issues in low and middle-income countries, it is expected that all SMEs will benefit from the unique learning and innovative opportunities in a cluster. A systematic review and research agenda on how open innovation in a cluster could stimulate digitalisation in SMEs has not been addressed. Hence, this study seeks to review existing literature on the role of clusters in fostering SMEs' digitalisation through open innovation practices. The research objectives are to examine SMEs' practice of open innovation, analyse the benefits and assess the intermediate role of a cluster for digitalisation within the context of SMEs. The paper aims to provide a framework for future research by presenting propositions. The methodology and approach for the study with a discussion on data extraction and synthesis were articulated. A comprehensive review of the literature to justify the approach was applied. A detailed inclusion and exclusion criteria were presented. Also, the selection process for assessing the articles was provided. This review scrutinised published peer-reviewed papers between January 2014 and December 2021. Findings from the reviewed papers show that cluster development will increase specialisation and divide labour among participating firms. It reveals the process of open innovation in SMEs' practice and the management of open innovation practice in SMEs. Also, it will improve collaboration, shared infrastructure, and knowledge sharing for increased market competitiveness. In addition, collaboration in a cluster will reduce the cost of SMEs' digitalisation, promote new firms, and reduce operational costs. Some beneficiaries of this research were highlighted. Finally, directions for future research with suggestions were comprehensively provided.

Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation

Small and medium enterprises (SMEs) are the pillars on which most businesses worldwide rest. Thus, without the support of qualified information systems, it can be very challenging for them to improve their performance and difficult for them to reach sustainability goals. Despite the essentiality of economic sustenance for a competitive advantage in the postmodern industrial era, Jordanian SMEs are hampered with multiple challenges, such as accounting information quality, which supports various organizational decisions. The prevalence of information technology (IT) optimizes accounting operations through accounting-based information. A computerized accounting system (accounting information system, or AIS) facilitates accurate reporting, processes large-scale transactions, and generates meaningful reporting for subsequent evaluation. Given the lack of AIS implementation in SMEs, despite its notable advantages, this study aims to investigate the AIS-implementation antecedents and their implications towards sustainable business performance among Jordanian SMEs. An integrated model was recommended based on the technology–organization–environment (TOE) framework and resource-dependency theory (RDT) for the incorporation of AIS-implementation elements and sustainable business performance into one model. A self-administered questionnaire was disseminated among 194 respondents within the context of Jordanian SMEs for data collection and evaluation using structural equation modelling (SEM). Based on the study outcomes, external pressure, compatibility, financial support, top management support (TMS), and external assistance significantly impacted AIS implementation, which subsequently catalyzed sustainable business performance. Such results could offer useful insights into how organizations could optimize AIS implementation for sustainable business performance and expand the current body of literature on IS- or IT-implementation antecedents and impacts. The implications of this study are that SMEs should develop effective AIS implementation in order to reach sustainability goals. Therefore, we recommend and encourage SMEs decision makers to utilize AIS for their businesses.

Economic Anxiety and the Performance of SMEs during COVID-19: A Cross-National Study in Kuwait

The focal aim of the project was to assess the economic anxiety (EA) and the performance of small and medium enterprises (SMEs) during partial and full lockdowns in Kuwait. The challenges facing the SMEs during COVID-19 and the potential solutions were also explored. The call for this vital investigation was due to the global economic fallout and the shocking drop within the marketplace caused by the COVID-19 pandemic. A descriptive approach was used for online survey design to collect datasets from 147 SMEs spanning all governorates of Kuwait in the period between March and June 2021. It included sociodemographic data, economic anxiety perception, potential challenges and solutions to SMEs, and SMEs’ performance. The data analysis using SPSS 25 showed that 78.2% of the SMEs were affected directly by the COVID-19 pandemic, and about 83% were affected negatively by the COVID-19 pandemic. In comparison, only 12.2% experienced a positive impact, mainly medical, technology, social media, food supplies, and delivery or logistics industries. With great concerns of SMEs for all dimensions related to economic anxiety (with an average of around 3.95), the greatest concerns were the financial and cash flow, followed by labor shortage (an average between 4.51 and 5.00). The results also showed that most of the performance indicators for the SMEs were low (with an average of less than or equal to 2.5), and more than 66% of them worked fewer hours during the pandemic; the number of operating hours was dropped dramatically. More than 74% of the SMEs used technology in more than 20% of their activities, representing an increase in using technologies of about 44%, and about 25.2% used social networks in more than 80% of their activities. The performance of SMEs is also found to be significantly and positively correlated with the economic anxiety levels, with a correlation coefficient of 0.186. The findings revealed significant and crucial outcomes for policymaking, decision-makers, and governmental agencies to build recovery plans and proper actions needed to manage the consequences caused by the disaster against the economic and other developments within the context of SMEs. Overall, there is a clear need to find ways and customize operations to adapt to the new work modes that require social distancing, online operations, and site management. In addition, new alternative modes of SMEs work follow to compensate for the lower working hours from the office and increased online working from home.

The contribution of corporate social responsibility on SMEs performance in emerging country

Enterprises around the world, and particularly small and medium enterprises (SMEs) in emerging economies, are facing an increasing number of threats and challenges due to globalisation and rapid environmental changes. This research intends to frame a specific role of corporate social responsibility (CSR) on firm performance and then examine mediating effects of customer retention and business continuity. This research has employed a smart partial least square (PLS) structural equation model (SEM) over 548 responses. Samples were collected using a random selection method. Results from this study show that CSR practices towards society, environment, employees and other stakeholders are the important contributors to enhancing customer retention and business continuity leading to a better firm performance. The originality of this study is the provision of insight into how CSR enhances firm performance by examining the integrated model whereby customer retention and business continuity moderate this relationship. Furthermore, its application to the context of SMEs in the new economic and environmental settings in emerging economies reinforces the uniqueness of this research. The outcomes of this research are useful for entrepreneurs and management levels of firms in an effort to promote the performance of SMEs in emerging economies in a sustainable manner. Besides, the findings of this study are meaningful for policymakers regarding the consideration for the most practical policy to motivate and facilitate firms to practice CSR properly on a voluntary basis towards balancing the benefits to society, the environment and the economy. In accordance with that, theoretical and managerial implications were also provided.

Resilience, Leadership and Female Entrepreneurship within the Context of SMEs: Evidence from Latin America

The purpose of this article is to analyze resilient female leadership as a sustainable promoter of business excellence in small and medium-sized Wayuu handicraft marketing enterprises. The present study uses a quantitative methodology with a non-experimental cross-sectional field design, with an analysis and interpretation of the data provided by the surveyed subjects. A 33-item questionnaire with multiple response options is applied. The population consists of 110.012 eradicated women. A probabilistic sampling technique is applied with a margin of error of 5% and a confidence level of 95%, for a total of 383 Wayuu women entrepreneurs in the Department of La Guajira, Colombia. Our findings explain that female leadership transcends the boundaries of business management, being present in both small and medium enterprises (SMEs). This study confirms the positive relationship between sustainability and resilience in the Wayuu handicrafts market, being women who turn their actions into success factors by working with women who show technical, conceptual, and human skills.

Inadequately educated workforce and financing obstacles: international evidence from SMEs in developing countries

PurposeThis paper aims to document the impact of inadequately educated workforce on the extent of financing obstacles experienced by firms.Design/methodology/approachThe authors use the data provided by the World Bank's Enterprise Surveys to test our arguments. The data were collected during the period between 2008 and 2018 in 141 developing countries. A pooled ordered logit regression analysis is performed to arrive at the results.FindingsThe study’s results show that firms with inadequately educated workforce are more likely to experience financing obstacles than other firms. The authors argue that poor performance and lack of technical expertise required to access finance are some of the reasons behind greater financing obstacles experienced by these firms. The study’s results are robust across different geographic regions. The authors also show that firms with inadequately educated workforce are more likely to seek informal credit for financing their short-term (working capital) and long-term (capital expenditures) capital requirements.Practical implicationsUnderstanding the factors that affect the financing constraints faced by small and medium enterprises (SMEs) should be valuable to managers of SMEs and policy-makers. By removing these constraints, managers can improve their access to financing, and policy-makers can facilitate higher economic growth and better economic conditions.Originality/valuePrior studies have largely been silent on the impact of inadequately educated workforce on the access to finance. This paper draws attention to this issue within the context of SMEs in an international setting. SMEs are the drivers of economic growth in any country. However, their contributions to economic growth cannot materialize without fulfilling their capital needs.

Individual ambidexterity in SMEs: Towards a typology aligning the concept, antecedents and outcomes

ABSTRACT Individual ambidexterity is of vital importance to the competitive advantage of organizations, especially small and medium enterprises (SMEs). Yet the ambiguous conceptualization in literature hinders our understanding of the concept, its antecedents, and its outcomes. We use a systematic review to capture the development of individual ambidexterity in the literature since 2007, identifying several major issues obstructing its conceptual clarity. We further propose a typology based on the exploration-exploitation relationship. By identifying different types of individual ambidexterity and linking the concept to the context of SMEs, this review offers conceptual clarity and directions for studying individual ambidexterity in SMEs for future research.

Use of knowledge management systems: analysis of the strategies of Brazilian small and medium enterprises

Purpose This paper aims to highlight the degree of diffusion and intensity of use of knowledge management systems (KMSs) among small and medium enterprises (SMEs) in Brazil and apply a taxonomy that synthesizes the strategies of use of KMSs by the SMEs. In addition, it seeks to better understand the processes, practices and technologies of KM by SMEs, pointing improvements in the KMS of Brazilian SMEs and contributing to obtain better results in the search for efficiency and innovation. Design/methodology/approach Based on a literature review on KMSs used by SMEs, an empirical investigation was conceived, developed and conducted through online questionnaires involving 49 selected SMEs operating in several sectors. Findings This paper reinforces the results of the previous work of Cerchione and Esposito (2017) that point to the existence of a reciprocal relationship between KM-Tools and KM-Practices: one reinforces the other and vice versa. On the other hand, it indicates a difference in the behavior of Brazilian companies in relation to the sample of Italian companies studied by Cerchione and Esposito (2017), which presented a negative correlation between the general differentiation index and the general use intensity index of SMEs, while the Brazilian ones showed a positive correlation. Research limitations/implications The study points out the need for greater dissemination of practices and tools to support knowledge management (KM), as well as greater support for the implementation and effective use of these practices and tools within the organizational context of SMEs. Practical implications This paper identifies the main practices and tools to support KM used by Brazilian SMEs, indicating the need for investments in employee training and acquisition of tools. Social implications SMEs represent an important part of the generation of jobs and income in Brazil. Initiatives that lead to the successful implementation of tools and practices to support KM can increase the efficiency and productivity of these organizations. Originality/value This paper applies in a sample of Brazilian companies the taxonomy proposed by Cerchione and Esposito (2017) combining strategies of SMEs for the use of KMSs.

Responsabilidad Social Empresarial en el Contexto de las Relaciones Laborales en las PYMES

El presente artículo investigativo se desarrolló con la finalidad, de describir la Responsabilidad Social Empresarial en el contexto de las relaciones Laborales y su contexto para generar cambios actitudinales y transformaciones en las Pequeñas y Medianas Empresas (PYMES) que repercutan en la transformación de los procesos empresariales, para la producción y productividad, contribuyendo al bienestar social y al medio ambiente, repercutiendo en la calidad de vida individual. La presente investigación se justifica como una visión emergente de las nuevas realidades del contexto empresariales de las Pymes. Teóricamente permite relacionar las variables, responsabilidad social empresarial, relaciones laborales y Pymes, que servirán como referencia y apoyo a otras investigaciones relacionadas a la temática abordada. Metodológicamente se empleó el método hermenéutico, orientado con una metodología de tipo documental mediante la revisión de bibliografía disponible sobre el tema, con un diseño bibliográfico de carácter descriptivo apoyada con un paradigma cualitativo. La población sometida a objeto de estudio está conformada por entrevistas de seis empresarios de forma aleatoria, el análisis discursivo de las entrevistas por las fuentes documentales, provenientes de diversos medios como son: libros, revistas, tesis, internet, artículos. Los resultados obtenidos infieren que la transformación de las políticas de empresariales y la RSE en el contexto de las relaciones laborales y con el medio deben involucrar la práctica responsable y espontánea por parte de las empresas y no como una imposición del Estado, para lograr una visión holística y sistémica con respecto a la RSE, satisfaciendo las necesidades y demandas de su entorno.

Information Technology as a Viable Strategy for Improving Material Management Practices in SME Construction Projects Performance

Success of any construction projects is related to its timely projects completion within budget, time and quality. Traditional materials management practice has been identified as a major issue in small and medium enterprises (SME) construction companies in most developing countries. Understandably, a key issue identified in the traditional practices is the lack of IT adoption in materials management practices. It is on this note, the paper seeks to explore factors affecting IT adoption for effective materials management in the Nigerian SME construction companies. Secondary sources such as past projects, journals and internet are the main source of data for this study. Data thus collected were studied and evaluated with the aim of articulating existing knowledge on how the materials management practice is carried out in SME construction projects. The significant findings of this study provides a generic overview of IT adoption within the context of SME and can assist SME and policy makers to towards formulating legislation for enhancing IT adoption in SME for an improvement of materials management practices towards sustainable projects performance and established profitable relationship with client’s and create competitive advantange.

Business Discontinuity Among Small and Medium Enterprises

Studies on Small and Medium Enterprises (SMEs) highlight more on the firms’ success than their failures. Firms’ failures, in particular business discontinuity, have not been well discussed due to sensitivity and confidentiality of data. The entrepreneurial activities of SMEs are vital in supporting nations’ economic development and wealth creation. Despite all the governments’ supports and assistance, SMEs experience business discontinuity at the early stage of their firm development. Research on SMEs business discontinuity is important to understand firms’ learning and survival ability, and improving their current strategy to compete and sustain in the market. The objective of this study is to review the business discontinuity literature within the context of SMEs. This study also proposes a conceptual model to further understand the factors contributing to business discontinuity among Bumiputera SMEs in Malaysia. This model, which enhances understanding of business discontinuity in SMEs, enriches the theories of firms’ failures in entrepreneurship research and their relations to firm learning.

Implementation of S-DBR in four manufacturing SMEs: a research case study

Production planning and control systems (PPCs) are tools that have a major effect on the performance of manufacturing companies. An inappropriate determination of the applicability of PPCs could seriously jeopardise the ability to achieve competitive priorities. This mistake can be expensive for any company, but proper implementation is particularly critical for small and medium enterprises (SMEs), which are characterised by limited access to financial resources. Simplified Drum–Buffer–Rope (S-DBR) is a PPC control approach that is characterised by minimum detail in the planning stage and a primary emphasis on the control of execution. Therefore, this approach is a suitable choice for the highly variable context of SMEs. This study aims to explore the practical issues related to S-DBR implementation in four Ecuadorian SMEs through case study research. The case analysis within this study first identifies the choices made in the implementation process design within the four companies according to process and product characteristics. We then conduct a cross-case analysis to explore the effects of the S-DBR implementation process designs on a group of performance measures. Our research findings provide new insights into the S-DBR implementation process in the context of SMEs, and the effects of this approach on performance measures.

A Decision Model of Kenyan SMEs' Consumer Choice Behavior in Relation to Registration for a Mobile Banking Service: A Contextual Perspective

As the fast pace of mobile banking innovations continue to permeate the socio-economic context of many African countries, there is a need for more in-depth research in this particular area. This paper focuses on mobile banking services and seeks to unearth the decision criteria associated with its choice among Kenyan small and medium enterprises (SMEs). While treating the area of focus as an impact evaluation phenomenon, the study employs ethnographic decision tree modeling to understand how target users make decisions concerning mobile banking services. The paper in particular seeks to answer the question: What decision criteria and constraints do Kenyan SMEs evaluate when deciding to register or not register for mobile banking services? Given the chosen research methodology, the study which is carried out in a developing country context is underpinned by the theory of real-life choice in order to make sense of the economic and socio-cultural context of Kenyan SMEs' appropriation decisions in relation to mobile banking technologies. The study contributes to the on-going discourse on information and communication technology for development (ICT4D) impact research by looking at the adopters' and non-adopters' decision criteria and yields vital knowledge for mobile banking service providers.

MANAGER’S RELATIONS AND STRATEGIC MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES

Este artigo caracteriza a participação das relações interpessoais dos dirigentes de pequenas e médias empresas (PME) em sua gestão estratégica, particularmente no que se refere à formação, ao desenvolvimento e à realização de sua visão estratégica. Diferentes estudos indicam que esse conceito é fundamental para se entender a gestão estratégica das PME. A pesquisa empírica realizada foi um estudo multi-caso, de cunho exploratório e qualitativo. Os dados foram coletados principalmente por meio de entrevistas semi-estruturadas em profundidade e tratados com base em procedimentos de análise intra-sítio e inter-sítio. A amostra foi composta por oito PME de diversos setores da economia, selecionadas por amostragem teórica e também segundo critérios previamente definidos. Os resultados corroboram empiricamente um modelo conceitual de relações disponível na literatura – que é útil para o entendimento da gestão estratégica das PME – e oferecem diferentes contribuições, podendo orientar novos esforços na prática e nos estudos das PME. Uma dessas contribuições é o reconhecimento e a descrição do processo de conversa estratégica, fundamental para o desenvolvimento da visão compartilhada no contexto das PME dirigidas por uma equipe de direção. A conclusão do artigo apresenta algumas necessidades de pesquisa e algumas implicações para a prática nas empresas.

VIRTEC: An example of a Brazilian virtual organization

In response to increasing international competition, enterprises have been investigating new integration processes to maintain their competitive position. In this context, the virtual enterprise (VE) represents an appropriate cooperation alternative and competitive advantage for small and medium enterprises (SMEs). An analysis of the Brazilian context of SMEs indicates that many small high technology enterprises have failed for lack of technical and and management competencies. In general, virtual enterprises and their cooperation-based form of organization can be considered adequate to overcome these deficiencies and to support the formation of high technology-based enterprises. This paper describes the VIRTEC project, a pioneering Brazilian virtual organization, within the approach of the global virtual business framework. This report begins with an outline of the context of Brazilian SMEs, providing the setting of the project. This is followed by a description of the project itself, including its various steps. The paper concludes by listing the benefits achieved to date.