Group Of Small And Medium Enterprises Research Articles

Digital Technologies 4.0 in Small and Medium-Sized Manufacturing Industries: Cases of the Central Region of Argentina and the Biobio Region of Chile

The Fourth Industrial Revolution has built upon the lessons learned from Covid-19 and has emphasized the urgent need for digital transformation in Small and Medium Enterprises (SMEs) in Latin America. This study aims to identify the factors that can explain the varying degrees of adoption of digital technologies 4.0 (DT 4.0). The research analyzes the results of surveys conducted among 35 companies located in the Central Region of Argentina and the Biobio Region of Chile. By utilizing the Technology, Organization, and Environment (TOE) model of adoption and employing data science tools, such as cluster analysis (K-means) and decision trees (J48), the study parameterizes the different responses and generates valuable insights. Our work provides a complementary view to existing studies, analyzing the key factors in the adoption of DT 4.0 in a group of SMEs located in regions, not national capitals, of two Latin American countries with different growth models. The results highlight the significance of business leaders possessing knowledge of DT 4.0, the importance of having specialized human capital, and the need for an organizational culture that embraces innovation. Public policy should focus on transforming business leadership and organizational dynamics to stimulate digital transformation. JEL Classification: O330, O140, O570

Fostering Innovative SMEs in a Developing Country: The ALI Program Experience

Small and medium enterprises (SMEs) play an essential economic role through income and employment generation as well as reducing inequalities. In this regard, continuous innovation is a pillar for guaranteeing SMEs’ survival worldwide. In Brazil, the ALI Program (Portuguese acronym for Local Innovation Agent) trains groups of SMEs to implement a continuous innovation process based on agile methodologies. This paper applied focus group methodology to investigate whether, after participating in the program, SMEs practice some innovation processes in their business and the difficulties perceived by entrepreneurs in incorporating innovation processes into their ventures. Based on the extant literature and on the focus group, it was observed that SMEs see innovation as a risk, fear innovating because of tradition, family, and/or generational context, and do not see innovation as a process suitable to be systematized with agile tools. In addition, factors such as the age of the SMEs’ leaders, the age of the SMEs, the gender of the SMEs’ leaders, and the nature of the SMEs (family business or not) may affect their openness to innovation. Recommendations are stated for practitioners (such as ALIs) to improve their training quality, policymakers to improve and create similar programs, and researchers interested in future research directions.

Evaluating the Influence of Succession Planning on the Growth of Small and Medium Enterprises (SMEs) in Ahafo, Bono and Bono East Regions of Ghana

Small and medium businesses (SMEs) are critical to any country’s national economic development. On the other hand, SMEs confront a considerable difficulty in succession planning: the lack of or inefficiency/ineffectiveness of succession planning. As a result, this quantitative correlational study aimed to evaluate the influence of succession planning on the growth of Small and Medium Enterprises (SMEs) in the Brong Ahafo region of Ghana. To reach the research goal, the study used a quantitative correlational research design. Data were collected from 140 respondents involved in SMEs from nine districts and municipal assemblies from the Bono, Ahafo and Bono East Regions of Ghana. The results revealed that most of the respondents, 113 (80.64%), agreed that employees or possible successors might leave the organisation for a better offer and 106 (75.71%) respondents indicated that owners of SMEs do not think about succession plan until there is a crisis. The results also showed that succession plan explains nearly (50%); thus, half the chances of survival of an SME in the Bono, Ahafo and Bono East regions are dependent on succession planning. There was a significant difference in succession plan practices among the different year groups of SMEs. The result also demonstrated no statistically significant difference in the service and manufacturing industries’ succession planning practices among the SMEs surveyed. It is recommended that business owners, policymakers and the state should support SMEs in succession planning development. If possible, succession planning should be part of the school curriculum and entrepreneurship training programmes in schools and business institutes. This will build the capacity of prospective business owners and create awareness about the effects of succession planning on the growth of organisations.

Seeking Innovation: A Typology of Knowledge Search Strategy by SMEs

While firms’ search for new knowledge has been investigated mostly for large enterprises, there is a lack of empirical research to examine knowledge search strategy by small and medium enterprises (SMEs). This study seeks to fill this gap in the innovation literature by examining differences in knowledge search strategy by SMEs. Drawing on a survey data obtained from 3,175 SMEs, we used cluster analysis to identify groups of SMEs that pursue homogenous knowledge search strategy. The study results shed insights about how SMEs should develop knowledge search strategy and technological dynamism to proactively harness the benefits of knowledge search.

Modelling the supply chain risk variables using ISM: a case study on Indian manufacturing SMEs

Purpose In the Indian manufacturing SMEs context, supply chains have a complex structure having multiple echelons, multiple partners and multiple locations. Due to these complexities, most of the Indian manufacturing SMEs face several types of supply chain risks. This paper aims to identify the dominant risk variables and to develop the interrelationship among these risk variables. Design/methodology/approach Based on the literature review and experts’ opinion, nine dominant risk variables faced by an Indian manufacturing SMEs have been identified. An interpretive structural modelling (ISM) approach has been adopted to establish the interrelationship among the risk variables. These risk variables have been classified by using MICMAC analysis. Based on ISM-MICMAC approach, a case study on three Indian manufacturing SMEs has been carried out. Findings This study would help the supply chain managers to understand and prioritize the significant risk variables. Nine significant risks variables of Indian manufacturing small and medium enterprises (SMEs) have been studied. External risk, information technology risk and financial risk have identified as most influencing risk variables, while delay risk and market risk have emerged as the most dependent risk variables. These results will provide a guideline to supply chain managers for implementation of supply chain risk management (SCRM). Research limitations/implications In this study, an ISM-based model is developed based on the opinion of experts from a group of Indian manufacturing SMEs; as such, this model may be biased and limited to a selected company. This framework can be extended further by adding more risk variables and sub-risk variables from the other sectors/organizations. Originality/value Many SCRM models are available in past literature, but no model has been proposed for the Indian Manufacturing SMEs. This research finding can be useful for managers to understand the characteristics and interrelationships among the risk variables for building a robust supply chain. These results will also help the supply chain managers in making proactive plans for SCRM, especially in the Indian SMEs context.

Open Innovation in SMEs: Potential and Realized Absorptive Capacity for Interorganizational Learning in Dyad Collaborations with Academia

Due to a variety of barriers to develop innovation, small and medium enterprises (SMEs) find it necessary to collaborate with external sources of knowledge. The current study analyses the collaboration between SMEs and academia over an open innovation setting in Mexico. An absorptive capacity (ACAP) approach has been applied to understanding the process of developing new knowledge for achieving innovation. A two-part questionnaire was developed with the aim of assessing the ACAP of a new joint research unit. Data was collected from a local group of SMEs that collaborated as dyads with academia supported by a government program of innovation in Mexico. The result shows that there was a moderate potential and realized ACAP in the sample; these results are mutually related with both parts of the questionnaire which supports our findings. In conclusion, exploitation of new knowledge is a complex dimension for creating value from collaboration, which makes the outcome difficult to measure using traditional means. It can be argued that exploiting new knowledge for innovation is an iterative process of learning when exploring new sources of knowledge from academia.

Open innovation in Korean SMEs: trends and financial performance

While open innovation has gained much attention, few studies have examined this perspective in the context of small and medium enterprises (SMEs). The motivation of this study is to fill this gap by examining SMEs' strategic approaches toward inbound open innovation and in-house R&D. Drawing on a sample of 3,175 SMEs in South Korea, we used cluster analysis to identify groups of SMEs pursuing homogenous innovation strategies. We also examined the effect of SMEs' innovation strategies on financial performance. The results of this study shed insights about how SMEs should develop innovation strategy to improve financial performance.

Open innovation in Korean SMEs: trends and financial performance

While open innovation has gained much attention, few studies have examined this perspective in the context of small and medium enterprises (SMEs). The motivation of this study is to fill this gap by examining SMEs' strategic approaches toward inbound open innovation and in-house R&D. Drawing on a sample of 3,175 SMEs in South Korea, we used cluster analysis to identify groups of SMEs pursuing homogenous innovation strategies. We also examined the effect of SMEs' innovation strategies on financial performance. The results of this study shed insights about how SMEs should develop innovation strategy to improve financial performance.

Impact of Lean and Sustainability Oriented Innovation on Sustainability Performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based framework

Lean and Sustainability Oriented Innovation both enhance competitiveness of small and medium enterprises (SMEs) in a sustainable way. Lean is efficiency focused, whereas Sustainability Oriented Innovation emphasizes on responsiveness. Although lean and sustainability oriented innovation have been separately researched, there is a gap in knowledge on the combined effect of lean and sustainability oriented innovation (SOI) on SMEs Supply Chain sustainability. SMEs have limited resources and face numerous competition. Therefore, their supply chain sustainability can only be achieved through most appropriate trade-off between economic, environment and social aspects of business. The purpose of this paper is to understand the combined effect of sustainability oriented innovation and lean practices, on supply chain sustainability performance of SMEs. The study uses a Data Envelopment Analysis (DEA) based framework and applies this to a group of SMEs within the Eastern part of India. Lean and sustainability oriented innovation are considered as input criteria, and economic, operational, environmental and social aspects are considered as output criteria of the proposed framework. DEA segregates inefficient SMEs and suggests at least a SME to benchmark. Subsequently, the study undertakes qualitative approach to suggest improvement measures for the inefficient SMEs. The results reveal that combined lean and SOI helps achieve SMEs' supply chain sustainability. The findings are useful for policy makers and Individual SMEs' owners and managers to undertake measures for improving sustainability. Theoretically this research contributes a DEA-based framework to study the effect of combined lean and SOI on sustainability that helps improving SMEs’ sustainability performance.

The Technology Transfer in the Development of the Small and Medium Metal-mechanic Ecuadorian Enterprise

The position of Ecuador, according to indicators of innovation and competitiveness on a global scale, expose problems that in general affects the Ecuadorian industry, specifically the metal-mechanical one, that is considered an important source of employment and revitalization of the country's economy since 2010. The government has prioritized the metal-mechanical industrial sector as one of the strategic sectors for the transformation of the productive matrix of the country. The small and medium enterprises (SMEs), included in this sector, have problems associated with their technological resources, that have been turned into challenges to be faced in order to reverse the situation. This paper shows the results of a situational diagnosis aimed at identifying the problems related to the management of the processes of technology transfer in the sector that includes the analysis of the administrative, technical, technological, and economic factors involved in these processes in a selected group of SMEs, as well as their social, economic and environmental impact. The main results achieved in the design of an alternative and complementary methodological procedure are presented. The procedure is supported by a set of engineering and management tools to execute an important process of technology management, the technology transfer with strategic scope, aimed at increasing competitiveness with social responsibility.

A counting multidimensional innovation index for SMEs

PurposeThe purpose of this paper is to develop a multidimensional innovation index (MII) framework for measuring and benchmarking multidimensional innovation of small and medium enterprises (SMEs) and groups of SMEs.Design/methodology/approachA counting dual cut-off method is employed. First, output and input innovation profiles and composite scores of individual SMEs are computed. Second, a set of four composite innovation indices are generated characterizing the group of SMEs under analysis: MIIo and MIIi measure multidimensional output and input innovation, respectively; while MIIr and MIIa assess the ratio and average of MIIo and MIIi, respectively. To test the MII framework, a survey was conducted among SMEs of the metalworking industry in Portugal.FindingsIn 2012, about 28.9 percent (42.2 percent) SMEs of the Portuguese metalworking industry were determined to be multidimensional output (input) innovative. The average percentage of dimensions for which output (input) innovative SMEs were innovative was 65.0 percent (66.0 percent). Thus, the industry MII vector was (MIIo; MIIi; MIIr; MIIa)=(0.188, 0.279, 0.674; 0.233). Significant differences were found across the industry, individual SMEs’ multidimensional output and input innovation scores, enabling the identification of groups of SMEs, which can be characterized and compared by computing the corresponding and specific MII vectors.Research limitations/implicationsThe research has limitations because of the small size of the sample and the benchmarking possibilities it provides.Originality/valueThe novelty of the MII framework lies in the counting dual cut-off method employed.

Knowledge management systems: the hallmark of SMEs

This paper provides an overview of the knowledge management systems (KMSs) adopted by small and medium enterprises (SMEs). KMSs are divided into two categories: knowledge management tools (KM-Tools) and knowledge management practices (KM-Practices). On the basis of the analysis of the literature, two research questions (RQs) were identified and addressed through semi-structured interviews carried out in a sample of 35 SMEs operating in high-tech industries. The first RQ concerns the degree of adoption of KMSs by SMEs. The second RQ regards the relationship between KM-Tools and KM-Practices. As far as the degree of adoption of KMSs, the paper highlights that SMEs are not a homogeneous world but there are a variety of approaches and behaviours. As far as the relationship between the degree of adoption of KM-Tools and KM-Practices, the paper identifies three groups of SMEs that seem to point out the stages of the process of adoption of KMSs: Introduction, SMEs that deal with the process of knowledge management exploiting practices and tools that are already known; Growth, SMEs that adopt specialist practices of knowledge management acquiring new organisational and managerial competence in the field of knowledge management; Maturity, SMEs that invest in new technology and that acquire new technological competence in the field of knowledge management. This categorisation paves the way for further theoretical and practical implications for both managers and policy makers.

IBM KELOMPOK USAHA HASIL LAUT PULAU LAE-LAE MAKASSAR

Micro, small and medium business group is a labor-intensive, the use of a relatively small venture capital and technology tend to be simple. This business group has the potential to improve living standards. On the island of Lae-Lae District of Ujung Pandang Makassar City there are groups of small and medium enterprises (SMEs) that the Sinar Lae-Lae and the Anggur group. SME group is developing marine products such as fish, squid and seaweed. This business group has a lot of innovation in producing seafood products such as meatballs, shredded fish, sweets and crackers seaweed. The results of the discussion and identification of problems in the production of a group of SMEs found that the amount of production is limited because of production activities take place only at night when the electricity supply is available. Variations seaweed crackers produced limited and the packaging of the product be done without tools vacuum sealer. In addition, the packaging of sweets seaweed less attractive, is not hygienic and does not include the date of production. Targets were achieved in both groups of SMEs are to increase production through the installation of solar panels so that the production process can be done not only at night but also during the day. In addition, create a variant form of seaweed crackers crackers using molds, packaging more attractive by means of vacuum sealer, hygiene and labeling of products produced.

Factors affecting e-business adoption in SMEs: an empirical research

Purpose – Nowadays, small and medium enterprises (SMEs) are incrementally using e-business tools in order to compete in an extremely hostile market and gain global access. The importance of e-business adoption for the economic success and survival of SMEs creates a very interesting field of research. The purpose of this paper is to develop and empirically test a conceptual framework that investigates the factors affecting the e-business adoption decision in SMEs. Design/methodology/approach – The examination of the proposed conceptual framework was made with the use of a newly developed structured questionnaire that was distributed to a group of Greek SMEs. The questionnaire was distributed to 600 companies, while 161 usable questionnaires were finally returned. exploratory factor analysis, confirmatory factor analysis, linear regression methods and the structural equation modelling (SEM) technique were used to test the research hypotheses. Findings – The proposed model explains 71 per cent of the variance of e-business adoption, with firm size, firm scope, IT infrastructure and internet skills being the most important e-business adoption drivers (with firm size being the most significant). On the other hand, CEOs knowledge, adoption cost, and competitive pressure do not seem to play an important role in the e-business adoption decision. Research limitations/implications – A limitation stemming from the implemented methodology is the use of self report scales to measure the constructs of the proposed model. Moreover, the present paper lacks a longitudinal approach, since it is cross-sectional and provides a static picture of e-business adoption. Practical implications – The paper makes an effort in order to point out areas that companies should emphasise in order to successfully adopt e-business and, therefore, harvest its potential benefits. Certain practical implications are offered in the final part of the paper. Originality/value – First, the present study places SMEs in the centre of its attention, while the contemporary research mostly examines the implementation of e-business practices in large organisations. Second, the present study proposes a three-dimensional conceptual framework, including technological, organisational and environmental context. Such a multidimensional approach has randomly been explored in the existing literature. Third, the results of the study may be generalised in other developed countries with similar economic realities and yield interesting outcomes for practitioners in these countries.

Distinguishing the innovation behaviour of micro, small and medium food enterprises

The European economy, and particularly the food sector, is characterised by small and medium enterprises (SMEs). Networking represents for SMEs an opportunity to meet their needs in terms of know-how, and technological and financial resources with the main purpose of fostering innovation and facing global competition. Most scientific studies investigating networking for innovation focus on SMEs as a whole without exploring possible differences between SMEs. An important question to be posed is whether the firms within groups of SMEs behave the same in terms of innovation. The purpose of this paper is to understand whether different ‘innovation profiles’ of Italian food SMEs can be distinguished and to identify the structural factors associated with different profiles, with particular attention to size and networking. The methodology consists of a cluster analysis on data obtained by standardized on-line questionnaires compiled by Italian agri-food SMEs. Moreover, besides the identification of possible heterogeneity within the SME group with regard to innovation behaviour, the paper presents further value by providing useful information on surveyed Italian food SMEs in terms of firm structure and innovation.

Horizontal collaboration in purchasing: A successful case from small and medium enterprises (SMEs)

The idea of collaboration instead of competition among business enterprises in a same level has been growing rapidly. Small and medium sized enterprises as well as large ones are in a search to change their relationships with suppliers. Although there is plenty of literature on the vertical relationship between supplier and customer, fresh and comprehensive academic literature is very scare in the debate of horizontal collaboration among competitors. In this context, the implementation of inter-firm collaboration and networks is accelerating among small firms. Group purchasing also known as horizontal collaboration in purchasing is the most common use inter-firm collaboration among small and medium sized enterprises (SMEs) in which the firms join a strategic alliance to gain bargaining power over suppliers. In the first stage, the paper presents a brief overview on the literature of group purchasing, and in the next step a case of horizontal collaboration in purchasing among a group of food SMEs will be discussed. During the methodology progress, data was collected through quantitative questionnaires through direct contact with the SME firms for the pre-implementation time period and the purchasing alliance for the after implementation. Data measurement was done to evaluate the implementation effects of purchasing alliance on both cost effectiveness and lead time aspects. The results illustrate a significant decrease on both purchasing price and delivery time from suppliers. Key words: Inter-firm collaboration, SMEs, group purchasing.

English

Numerous studies indicated a tremendous need of a competent leadership to lead transformation process within the South African small and medium enterprises (SMEs), especially after 1994. Over the past years, a number of SMEs failed in innovation due to lack of innovative culture. Leadership has been proven as a critical factor to create an innovative culture within organisations. Thus, this paper proposes a theoretical model to emphasize the impact of innovative leadership on organisational culture. Data were collected through a semi-structured questionnaire from a group of SMEs (n = 15) within the manufacturing sector from the Western Cape. A descriptive analysis was carried out through the SPSS 19 program. Both alternative (H 1) and null (H 0) hypothesis were used to test the relationship between leadership characteristics and organisational culture. The results revealed that the key factors such as lack of business management skills, knowledge of leadership transition, education and training, market and technological know-how, entrepreneurial drive, and resistance of changes remained the primary determinants for leaders to manage innovation successfully in SMEs. The model provided a guideline for leaders to influence employees to be creative and innovative to ensure the success of innovation within their organisations.

Strategic governmental economic activities in support of young French SMEs

PurposeThe purpose of this paper is to closely study young French small and medium enterprises (SMEs). The authors highlight the structure of these target firms and build a typology of corresponding business models.Design/methodology/approachThe authors used a dataset of 38,000 young French SMEs. It is constituted of all individual and consolidated year‐end financial statements submitted by French firms to the commercial court. Data analysis techniques (principal component analysis then hierarchical and ascending classification) were used on the data.FindingsThe business models stemming from this typology are typical (to the greatest extent possible) and actionable. The authors are particularly interested in identifying groups of SMEs where government assistance would be particularly effective and strategically valuable for the national economy.Practical implicationsOne of the authors' conclusions is that the typology is not based on a classical growth model that reflects progressive phases of development in the life of a young firm. Furthermore, it is ineffective and wasteful to focus government assistance efforts on firms based on their age. The authors identify groups of business models where assistance would be more efficient and strategically more effective.Originality/valueIt is notable that this paper relies not upon a sample, but upon the exhaustive collection of all available data on the subject. This research questions the allocation efficiency of governmental assistance on the basis of growth models. It intends to provide a better understanding of the criteria that should be taken into account to enhance targeting of assistance toward businesses with the greatest potential for the nation.

Balancing Growth

This article analyses the strategic, organisational, and structural conditions for small and medium enterprises (SMEs) to fully exploit the potential of information and communication technology (ICT). The authors build a conceptual framework relating “ICT readiness” (a new construct) to two more common dimensions: “strategic vision of ICT” and “ICT maturity”. Using the framework, the study identifies four distinct groups of SMEs, associated with differing degrees of readiness, before analysing possible evolutionary and regressive development paths among these groups. In discussing the implications of the framework, the authors argue that the framework represents a valid tool of diagnosis and intervention, especially in those circumstances where SMEs cannot fully exploit the potential of ICT. The framework helps identify the underlying causes of limited ICT readiness and supports owner-managers and consultants in choosing and implementing appropriate interventions.

The Effects of Zara to the SMEs of an Emerging Market

Abstract Globalization can be described as a systematic decline in the boundaries of the cross-national flow of products, values, ideas, labors and capitals. In other words, globalization disregards any physical boundaries and wipes out the classical meaning of domestic market. Therefore it creates a true challenge for every local enterprise but especially for SMEs (Small and Medium Enterprises) of the emerging countries since competition is increasing and every local industry is losing its exclusively national character by globalization. While the definition of SMEs can easily be a topic of an academic paper, SMEs are commonly regarded as small business systems with some unique characteristics. Some of these unique characteristics are positive business attributes such as flexibility, independency, informality, innovative behaviour, operation possibilities on slim margins, high motivation of employees, short decision-making chains, and negative attributes such as limited financial, managerial, human and i...