Indian Small And Medium-sized Enterprises Research Articles

Energy efficiency maturity (EEM) assessment framework for energy-intensive SMEs: Proposal and evaluation

Despite being a key industrial segment in terms production contribution and energy demand, small and medium-sized enterprises (SMEs) have been trailing in the implementation of available energy efficiency (EE) technologies, measures and practices due to both intrinsic and extrinsic barriers. The industrial EE audit programs driven by Government for SMEs had limited success in promoting EE practices due to an “onesize-fit-all” approach instead of a more personalized maturity-based approach towards EE assessment. Some of the energy management maturity models reported in the academic literature integrates the comprehensive requirements of ISO 50001, the international energy management standard, with the established maturity assessment instruments. However, these models are of little use to the SMEs due to the lack of resources and professional knowledge with the SMEs to meet ISO 50001 requirements. This study conceptualized and validated an energy efficiency maturity (EEM) framework for energy-intensive SMEs to facilitate a pre-assessment of EE maturity profile and draw out a personalized improvement plan. The framework consisted of three elements: EE characteristics & dimensions (derived from literature); EE maturity levels; and the Implementation method (adapted from Zero Defect Zero effect or ZED scheme designed for Indian SMEs). For validation of the EEM framework, a case of an Indian small-scale steel re-rolling mill (SRRM) was selected. The mill was rated at “Level 2 - Beginner” during the pre-assessment using the EEM instrument reached to “Level 4 - Achiever” after completion of first set of need-based EE improvement projects. These projects were attempted to build specific EE dimensions such as Energy Management roles; EE opportunity reporting; Product/Process innovation for optimization of energy use, which the mill lacked during the pre-assessment.

Exploring suitability of cloud computing for small and medium-sized enterprises in India

PurposeThe purpose of this paper is to evaluate the suitability of cloud computing for small and medium-sized enterprises (SMEs) in India.Design/methodology/approachLiterature review is used to identify benefits, challenges, and factors concerning usage and adoption of cloud computing by SMEs. A conceptual framework was developed based on the existing theoretical models and factors identified from the literature. A survey based on questionnaire method was followed to collect data from 121 manufacturing SMEs in India. The conceptual framework was refined by using factor analysis, and multiple regression analysis was used to test the hypotheses.FindingsMajor benefits of cloud computing for SMEs include cost advantage, easy deployment process, easier access to latest information and communication technologies, automatic updates and upgrades, scalability, flexibility, and improved disaster recovery and back-up capabilities. The concern area includes perceived loss of control, vendor lock-in, security issues, reliability and availability issues, and internet connectivity and speed. The factors that are found significant include perceived benefits, top management support, competitive pressure, and perceived concerns. The model explained 73 percent of cloud computing adoption.Research limitations/implicationsThe study is expected to make significant contribution toward body of knowledge pertaining to information technology adoption in SMEs.Practical implicationsThe study is expected to provide SMEs an insight into real benefits and challenges associated with adopting cloud computing. The model can help SMEs in evaluating their readiness for adopting cloud computing and can ensure successful outcome of cloud computing adoption in SMEs. Providers are also going to be benefited through their enhanced understanding of SMEs’ requirements.Originality/valueThe proposed framework incorporates all the relevant factors including perceived benefits, perceived concerns, and other organizational and environmental factors to improve model’s predictive power.

The role of top managers in determining investment in innovation: The case of small and medium-sized enterprises in India

This article examines the role of top managers in shaping the innovation investment actions of small and medium-sized enterprises (SMEs) in India. Survey responses from 477 top managers of Indian SMEs suggest that investment in innovation is influenced by top manager perceptions of innovation opportunity attractiveness, as well as ability to appropriate innovation investment value. Specifically, the results indicate an inverted U-shaped relationship between top manager entrepreneurial orientation and firm investment in innovation. They also suggest that top manager perceptions of environmental munificence, firm resource management capabilities, and organizational controls are positively related to firm investment in innovation.

Factors Influencing Cloud Computing Adoption by Small and Medium-Sized Enterprises (SMEs) In India

The purpose of this paper is to examine and assess the determinants of cloud computing adoption by small and medium-sized enterprises (SMEs) in an Indian context through an integrated research framework. A questionnaire based survey method was used to collect data from 271 SMEs from the northern region of India. An integrated model founded on Technology Acceptance Model (TAM), Diffusion of Innovation (DOI) and Technology-OrganizationEnvironment (TOE) was proposed to test ten hypotheses through a confirmatory factor analysis and structural equation modelling. The analysis reveals that relative advantage, security concerns, top management support, external pressure and service providers’ support are the significant factors which influence intention to adopt cloud computing by SMEs in India. The integrated research framework used and validated in this study is intended to enhance the predictive power of the ensuing model. The empirically validated research model and the instrument used for data collection can be adopted in other similar studies. The findings of this study can be useful for consumers, practitioners, and policy makers who are involved in utilizing, spreading and promoting the adoption of cloud computing among organizations, especially the SMEs.

A Panel Data Analysis for Exploring the New Determinants of Growth in Small and Medium Sized Enterprises in India

The purpose of this paper is to explore the main determinants of growth in small and medium sized enterprises (SMEs) in India. The empirical research has suggested that firm growth is determined not only by the traditional characteristics of size and age but also by other firm-specific factors such as indebtedness, internal financing, future growth opportunities, process and product innovation, and organisational changes. No empirical evidence has been provided so far on which of these determining factors are associated with SMEs growth and performance in India. Using a panel dataset of 560 fast growing small and medium enterprises from India the author finds evidence that firm size and age can explain to a large extend the growth in SMEs in India. Firm specific characteristics such as short-term liquidity, future growth opportunities, internally generated funds, and factor productivity are found to be important factors in determining a firm's growth and performance. Economy-wide factors such as inflation and corporate income tax rate (but not gross domestic product) seem to have a significant effect on SMEs growth in India.

Assessing the awareness of the agile manufacturing for organizational change in Indian small manufacturing firms

Purpose Agile manufacturing (AM) has the new scenario in the business system and it is widely seen as a “New Revolution” in the manufacturing firms. AM, which continuously focusses on the adoption of new methodologies and quickly respond to the customer expectation. For this reason, many of the research studies are focussed on the AM environment and this system is mainly followed in large sector only and most of the small- and medium-sized enterprises (SMEs) are not aware of it. Especially in the developing countries which are still lagging behind in the implementation of AM. Considering the above reason, the purpose of this paper is to assess the awareness of AM in Indian SMEs. Design/methodology/approach By means of researching many literature reviews and empirical data collected by using a self-administrated instrument distributed to the selected Indian SMEs and the awareness about the AM was investigated. The authors have selected 100 SMEs in Indian service sectors and sent the data sheets through by e-mail and also by directly visiting the company and collected the information. A total of 68 useable survey data’s were identified from the final analysis. The study data sample consists of a group of selected Indian SMEs, from different industries including the pump and foundry industries. The collected data were analyzed using the graphical representation method and by the statistical analysis. Findings The analysis revealed the significance and usage of AM in the Indian SMEs. The results also suggested that the Indian SMEs are well aware of the AM system, through more efforts need to be focussed on implementing this system properly and effectively to improve these standards. By the use of agile models and frameworks in small and medium sized enterprises (SMEs), would result in cost-effectiveness in their quality and services and can be continuously improving the ongoing agile practices. Research limitations/implications Indian SMEs managers seem to be stronger familiar with the agile concepts and practices and they believe that agile environment would guaranteeing in their services and high-quality products. Therefore, SMEs should concentrate and invest in agile practices that would help them to improve their competitiveness in the global market. Further, Indian SMEs managers and practitioners would concentrate more about this maintenance of standards and with this dynamic approach it takes toward the agile environment to meet the future challenges. Practical implications The data collected and the results provided in this paper will help in understanding, the awareness about the AM environment in Indian SMEs. Also, suggest some additional improvements in the knowledge of agile to the managers and practitioners in the Indian SMEs, which could enhance the level of agile implementation. Originality/value The assessment of agile awareness in Indian SMEs, along with the concepts of understanding the AM environment, has been explained in the literature on AM in the Indian SMEs.

Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan

This study investigates the impact of internal and external research and development (R&D) on the innovation performance of small and medium-sized enterprises (SMEs) in India and Pakistan. Micro-level data was obtained for 3,492 Indian and 696 Pakistani SMEs from the World Bank’s Enterprise Survey, and bivariate probit estimation techniques were used. The results show that internal and external R&D positively affects product and process innovations. However, this effect is stronger for Indian SMEs. The negative relationship between firm size and innovation output implies that SMEs in both countries face resource constraints. Further, Indian SMEs are dominant in terms of undertaking internal R&D and generating product and process innovations relative to those in Pakistan. The complementary relationship between internal and external R&D has been examined for both countries. The study is unique in comparing Indian and Pakistani SMEs innovation activities using micro-level data. The results suggest that business managers can utilize a balanced combination of internal and external R&D to accelerate innovation output and increase absorptive capacity. Specifically, public support for innovation, such as R&D grants, subsidies, and tax credits, could encourage SMEs to undertake more radical innovations.

E-Commerce: Adoption Barriers in Small and Medium-Sized Enterprises (SMEs) in India

India is considered as the youth capital of the world. Globalization and the KnowledgeEconomy pose numerous challenges as well as opportunities for Small and Medium-Sized Enterprises in India. Indian labour force numbers around 500 million. Over 90% of them work inunincorporated, unorganized enterprises gaining traditional knowledge on the job.With the opening up of the economy and increase inexports, improving the productivity of the workforceis a key challenge. Therefore there is an urgency to adopt e-Commerce and become internet savvy so that production and selling goes simultaneously. In today's era when environment is changing with the blink of an eye one must work on the theme “SURVIVAL OF THE FITTEST”. SMEs need to get connected with online shoppers or else adopt E-commerce in order to have competitive advantage over others. This research paper has been written in an article form in order to discuss the important key issues related to adoption and opportunities that eCommerce offers for SMEs in India.

Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives

This article explores entrepreneurial orientation (EO); this notion has received considerable theoretical and empirical attention in organizational research, emerging as one of the most widely accepted firm-level constructs in the literature. As knowledge in this area has expanded, researchers have delved into the contextual factors that influence the relationship between EO and organizational performance. With the goal of better understanding the circumstances under which pursuing entrepreneurial strategies result in favourable performance outcomes, this article investigates the EO–performance relationship among small- and medium-sized enterprises (SMEs) in India. Data collected from 198 Indian SMEs revealed a strong positive linkage between EO and firm performance. Environmental contingencies – demand growth and competitive intensity – were theorized and found to have a moderating influence on the EO–performance relationship. Implications and directions for future research are discussed.

Constraints to growth: a cross country analysis of Chinese, Indian and Pakistani SMEs

PurposeThis paper aims to identify the barriers that are linked to the institutional, external and social environmental factors in the emerging economies of South-East Asia (SEA). Through a comparative analysis of China, India and Pakistan, this study attempts to understand the constraints that might inhibit small and medium-sized enterprises (SMEs) in this region from becoming more successful.Design/methodology/approachThis study proposes an empirical research framework to identify the constraints to determinants of SMEs’ growth (the CDSG model) in an important geographic and industrial cluster of SEA countries including China, India and Pakistan. Six propositions are tested, using data from 1,443 SMEs obtained from Enterprise Survey Data Repository database from the World Bank. Ordinary least-squares estimation is applied for statistical analyses and testing of the research propositions.FindingsThe results show the differential effects of the proposed CDSG model in China, India and Pakistan. Access to external finance is found to be irrelevant to the growth of SMEs in China, while it has a positive influence in India and Pakistan. Furthermore, in terms of the innovation process, partial mediation is traced. Using the tax rate factor, negative mediation is found between CDSG variables and SMEs’ growth. Both mediators play different roles in firm growth activities, while the level of significance of some variables is found to be more relevant to a specific region rather than to all.Practical implicationsThe prudent management of the proposed CDSG variables could revolutionize the constraints facing SME growth, making them into success factors. This could invigorate the growth of SMEs’ in SEA countries. The paper concludes with practical implications for policymakers and investors.Originality/valueThis SMEs’ theoretical framework is the first to use innovation and tax rate mediators to highlight the determinants of business growth in three SEA regional economies (China, India and Pakistan).

Knowledge management practices in different SMEs: an empirical study in India

Knowledge is an important and dynamic element to inculcate innovation in big organisations and also in small organisations. Discovering new knowledge and capturing, sharing and applying it properly are major activities of knowledge management (KM). Small- and medium-sized enterprises (SMEs), knowingly or unknowingly, adopt KM practices in different ways to make their processes and products more innovative for competitive advantage. This paper examines the significance of various practices grouped under each KM activity and the relationships among the four activities from the perspective of people working in different SMEs in India. First part of the study deals with analysis of variance of practices and the second part deals with the structural modelling of KM activities. ANOVA, exploratory and confirmatory factor analyses followed by structural equation modelling are used. Knowledge discovery is related to knowledge capturing and sharing, which are further related to knowledge application.

Knowledge management practices in different SMEs: an empirical study in India

Knowledge is an important and dynamic element to inculcate innovation in big organisations and also in small organisations. Discovering new knowledge and capturing, sharing and applying it properly are major activities of knowledge management (KM). Small- and medium-sized enterprises (SMEs), knowingly or unknowingly, adopt KM practices in different ways to make their processes and products more innovative for competitive advantage. This paper examines the significance of various practices grouped under each KM activity and the relationships among the four activities from the perspective of people working in different SMEs in India. First part of the study deals with analysis of variance of practices and the second part deals with the structural modelling of KM activities. ANOVA, exploratory and confirmatory factor analyses followed by structural equation modelling are used. Knowledge discovery is related to knowledge capturing and sharing, which are further related to knowledge application.

Regional export advantage of rising power SMEs

Purpose– The purpose of this study is to examine the subnational regional dimension of exports by small and medium-sized enterprises (SMEs) in India, one of the prominent emerging economies or “rising powers”.Design/methodology/approach– To understand the forces driving the variation in subnational region’s share in international business of rising power SMEs, an analytical conceptual framework on regional export advantage (REA) was formulated based on the review of relevant theoretical and empirical literature. The model was estimated for Indian states using the most appropriate and recently developed econometric technique of fractional logit model.Findings– The paper provides evidence that the emergence of exports by rising Indian power SMEs is geographically limited to a few select regions/states. Southern Indian states alone accounted for half of exports from SMEs in the organized manufacturing sector during 2000-2008, followed by Western India. The REA analysis has brought to the fore that regional stock of technological knowledge, availability of skill, port facilities, urban areas and foreign direct investment stocks are crucial factors determining states’ share in SME exports across technological subcategories. However, the size and sophistication of local demand continue to influence states’ efforts at enhancing exports by SMEs, at least those belonging to the medium- and high-technology categories.Research limitations/implications– The proposed empirical framework could be extended to include institutional and political economy factors. Its application to subnational regional shares in total exports by all firms taking into account fixed effects for regions may be another feasible line of future research.Practical implications– Empirical findings recognize that appropriate strategies by subnational policymakers are important for a region to achieve a higher contribution in national SME exports. Subnational policy measures aimed at upgradation of regional technological assets and skill base through the promotion of technology clusters and R & D of local firms, facilitation and creation of better industry-university linkages and investments in education and training institution may help the states to gain higher export advantage.Originality/value– This paper provides new analytics and insights into the role of subnational spaces in the internationalization of rising power SMEs from India and serves to contribute to the extant international business research that is predominantly occupied with “nation” as the unit of location.

A Study on Implementation of IT Tools in SME’S in India

This research investigates the factors that influence the IT adoption in Small and Medium-sized Enterprises (SME), lists the benefits that SMEs see by adopting commonly used business applications, arrives at a potential framework/ method for SMEs to enhance IT adoption and also suggests on ways of using analytics for business growth. Though SMEs in India is main focus of this work, the literature study included and takes cognizant of the facts that helped or helping SMEs in other countries to adopt IT to remain competitive and enhance efficiency that are also applicable in Indian context

Factors Wavering Internationalizations of SMEs: Indian Context

It is implicit in a research that in today’s environment, small and medium-sized enterprises (SMEs) that start with a global strategy can move quickly to take advantage of cross-border activities, which provide opportunities for not only revenue growth but also the exchange of knowledge and the enhancement of capabilities, which strengthen the long-term competitiveness of the firm. Though, the changing business environment creates new opportunities and incentives for SMEs to internationalize, it also confronts domestic firms with the threat of international competition, networking issues, policy and regulation matters, financial constraints etc. Internationalization has become increasingly important to the competitiveness of enterprises of all sizes. SMEs are increasingly facing numerous obstacles in the process of internationalization of business and it is perceive that SMEs need to respond on these changes for strategic improvement. This not only implies adjusting their domestic strategy, but increasingly forces firms to go abroad. This particular research tries to explore that factors which influence the internationalization process of SMEs in India.

Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India

Small- and medium-sized enterprises (SMEs) make sizeable contributions to the economic success of nations. Research concerning the internationalization of SMEs is available in the context of developed economies but less is can be found dealing specifically with the entrepreneurial behavior and international expansion of SMEs in emerging markets such as India. This research extends the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization. Entrepreneurial orientation, a commitment to internationalization, and the ability to leverage human capital influence the international success of Indian SMEs, based on the analysis of data collected from 150 Indian SMEs.

Thomson Reuters innovation award research brief: The use of patent analytics in measuring innovation

There are six different factors that can be used to assess the inventiveness of an organization and to determine how efficiently they apply invention resources to innovate effectively. This research briefing describes the techniques used to measure certain aspects of patenting activity by Small and Medium-sized Enterprises (SMEs) headquartered in India. The techniques are used to identify the most innovative SMEs in India in order to determine the winners of the Innovation Award 2009 from Thomson Reuters, awarded at InfoVision 2009 in Bangalore.

Inventory management in small and medium enterprises

PurposeThe purpose of this paper is to provide guidelines for entrepreneurs for implementing effective inventory management (IM) practices and presents the results of a survey of machine tool enterprises in Bangalore, India.Design/methodology/approachA descriptive analysis is used to present aspects of the findings, which reflect the current state of IM in machine tool enterprises. In addition, percentages, bar diagrams and correlation analysis provide a more accurate assessment of this industry sector.FindingsThe study identified several major problems in the context of IM in machine tool enterprises including the use of rule‐of‐thumb for IM, a low importance given to forecasting, random ordering of materials, low levels of training and development, and low computer use as well as a low importance given to purchasing and variable lead‐time. The study confirmed the need for managers in the machine tool sector to alter drastically their approach to IM.Research limitations/implicationsThis study of 40 SMEs in Bangalore should be extended using a larger sample representative of Indian SMEs in order to arrive at findings that are more generalizable across the machine tool sector in India.Practical implicationsThe managers of SMEs should consider seriously IM as a strategic concept simply because effective IM positively influences productivity. There is profound scope for improving the operations and performance of SMEs through the application of quality practices in IM.Originality/valueConsidering the lack of studies about IM in the context of Indian small and medium sized enterprises (SMEs), this paper helps fill a gap in the literature. A review of the policy framework concerned with SMEs suggests that policymakers do not consider critically the role of IM and related issues. It is significant to note that there is no exclusive reference to improvement in IM within the policy documents. At the same time, the literature review suggests that effective approaches to IM can improve the productivity and competitiveness of SMEs.

Information technology strategy for knowledge management in Indian automotive components SMEs

AbstractKnowledge management (KM) research has focused more on large firms. Lately, there is increasing realization of need and significance of KM for sustainable competitiveness for small and medium‐sized enterprises (SMEs). Potential competitive advantage of KM may be more profound in a small firm. Information Technology (IT) has a crucial role in KM. IT is the facilitator, the enabler. The IT requirements of SMEs are different from that of big firms. Most of the research on role of IT in KM has focused on big firms. The purpose of this research paper is to look at IT for KM in SMEs particularly, in Indian context. The paper consists of five sections of introduction, literature review, research methodology, research findings and conclusion. IT tools are more in use in international auto components manufacturers (ACMs) as compared to Indian ACMs. The major problems faced by ACM vary among international and Indian ACMs. Internet is used by every organization under study followed by intranet. IT has just grown over time in the organizations under study. Copyright © 2008 John Wiley & Sons, Ltd.

Knowledge storage and access in automotive components' SMEs in India

Knowledge has emerged as the key resource in the post-industrial society. Creation of knowledge is a costly affair, and the half-life of knowledge is getting increasingly shorter, owing to fast changes and newer developments. It is critical for organisations to store the knowledge, and provide access to it, in a professional and efficient manner throughout the organisation for leveraging it for achieving sustainable competitiveness. This research work looks at knowledge storage and access practices in small- and medium-sized enterprises (SMEs) in the automotive components industry in India. International SMEs fare better than Indian SMEs in stored knowledge in terms of relevance, importance and timeliness as well as access. Knowledge is mostly stored electronically and on paper. In terms of access, knowledge about markets takes maximum time whereas knowledge about the company's products/services takes minimum time. The study includes both macro and micro perspectives by covering experts as well as firms.