Indian Small And Medium-sized Enterprises Research Articles

Role of Ergonomic Factors Affecting Production of Leather Garment-Based SMEs of India: Implications for Social Sustainability

This paper aims to identify, evaluate, and measure the ergonomic factors hampering the production of leather garment-based small and medium-sized enterprises (SMEs). Ergonomic problems faced by the workers largely impact the health of individuals and also the productivity of a firm. Based on experts’ opinions and a literature survey, three emerging categories—namely, occupational disease, personal factors, and the industrial environment—with a total of twenty factors were identified to examine symmetrical impact in five leather garment companies. In this research work, Cronbach’s α was evaluated to check the validity of the ergonomic factors identified through the literature survey. Then, using the fuzzy analytic hierarchy process (FAHP), the identified ergonomic factors were evaluated. A sensitivity analysis was carried out to validate the robustness of the results obtained using the integrated approach. Outdated machinery, vibration, operational setup, fatigue, and poor ventilation and lighting are the top five factors inducing ergonomic-related problems and hampering the production of the leather garment companies in India. These top ergonomic factors are the result of a failure in the provision of an ambient working environment. Providing ergonomically designed working environments may lower the occurrence of ergonomic problems. The findings of this study will assist industrial managers to enhance production rate and to progress towards social sustainability in Indian SMEs. The proposed symmetrical assessment in this study could also be considered as a benchmark for other companies in which human–machine interaction is significant.

Analyzing barriers and strategies for implementing Lean Six Sigma in the context of Indian SMEs

PurposeThe purpose of this study is to investigate the barriers for implementing Lean Six Sigma (LSS) in small and medium-sized enterprises (SMEs) and present a framework that provides prioritized strategies to overcome the barriers.Design/methodology/approachThe barriers and strategies are identified via a comprehensive literature review and validated by industry experts. The study uses the fuzzy Technique for Order of Preference by Similarity to Ideal Solution (fuzzy TOPSIS) to analyze the barriers and strategies for determining the prioritized list of strategies.FindingsThe findings reveal that there are sixteen barriers to LSS implementation in Indian SMEs. To overcome these barriers, this study reveals twelve strategies. The analysis shows that “effective management” is the most crucial strategy to overcome the barriers for implementing LSS in Indian SMEs.Research limitations/implicationsThis research guides SMEs practitioners to efficiently and effectively implement LSS, which, in turn, can enhance the performance of SMEs.Originality/valueThis study contributes to the literature by integrating the strategies with the barriers for implementing LSS in Indian SMEs. Besides, this study provides the prioritized list of strategies to overcome the barriers for implementing LSS in Indian SMEs.

An integrated approach to modeling the barriers in implementing green manufacturing practices in SMEs

Rapid environmental depletion and ever-increasing CO2 emission have necessitated an environment-friendly manufacturing practice for industries across the globe. In this perspective, green manufacturing (GM) practices were conceptualized and practiced by large scale enterprises of developed countries. However, small and medium-sized enterprises (SMEs) in developing countries are struggling to adopt GM practices. There are many reasons for this struggle in a developing country like India. To shed light on this issue, this research work intends to identify, analyze and rank the predominant barriers, which restrict implementing of GM practices in Indian manufacturing small and medium-sized enterprises (SMEs). Based on a comprehensive literature review and experts’ opinion by employing the Delphi method (DM), the study revealed 25 barriers, in three broad categories, of GM implementation in Indian SMEs. The identified barriers are ranked, and their interrelationships are explored using a novel integrated multi-criteria decision making (MCDM) framework, with a combination of Decision-Making Trial and Evaluation Laboratory Model (DEMATEL), Analytical Network Process (ANP), and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) in a fuzzy context. A sensitivity analysis is performed to check the consistency of the results. The results reveal that core category, which include several barriers related to lack of internal abilities and strategies, is the most critical category of barriers for manufacturing SMEs in India. In particular, the three most critical barriers are lack of research and development (R&D), failure in eco-design and lack of accreditation respectively. The study findings, which provide valuable insight for SME practitioners of Indian manufacturing SMEs, can be used to formulate appropriate strategies to overcome the barriers.

Prioritization of financial performance determinants in Indian SMEs

PurposeThis study aims to quantify and prioritize the financial performance (FP) determinants in Indian small and medium-sized enterprises (SMEs).Design/methodology/approachAnalytic hierarchy process, a multi-criteria decision-making tool, was used. Experts were allowed to express the opinion regarding the relative importance of each factor and sub-factors by making pairwise comparisons through a structured questionnaire based on a nine-point scale.FindingsMarket orientation (0.4529) was perceived as the most important FP determinant followed by the entrepreneurial orientation (0.3382) and corporate social responsibility (0.2089) in SMEs.Research limitations/implicationsThis study can be considered as a pilot study because it is confined to Indian SMEs. Future research studies can incorporate the opinion or insights of other stakeholders and may target the SMEs situated in different geographical areas.Practical implicationsThe inferences drawn in this study would clarify the conceptual and contextual applicability of competitive strategies in SMEs. Indeed, proposed hierarchy and developed framework would guide the SMEs in strategic planning. Moreover, it would help in repositioning and alignment of core strategies duly with business objectives.Originality/valueThe study represents the foremost step and a unique effort in the area of development of hypothetical model (a hierarchal model) with the framework considered to prioritize the FP determinants in SMEs.

Social capital development through the stages of internationalization: Relations between British and Indian SMEs

AbstractResearch SummaryRelatively limited research has been conducted on the evolutionary development of social capital during the internationalization process of small and medium‐sized enterprises (SMEs). We address this issue through a qualitative study of 30 pairs of British and Indian SMEs that have developed international business relations with each other. We provide frameworks that illustrate how microfoundations create, modify, or dissolve network structures to achieve the desired outcomes at different stages of social capital development and internationalization. We identify that entrepreneurial characteristics and intentions influence the development of social capital and internationalization. We suggest that the stages of social capital evolution tend to accompany discrete stages of internationalization, albeit with some exceptions due to the nature of the industrial sectors and actors' dispositions towards business exchange.Managerial SummarySMEs are rapidly internationalizing, competing, and even collaborating with large enterprises across the globe. Studies note that social capital plays an important role in the internationalization process of SMEs. We examine the evolution of social capital and internationalization process of SMEs, finding an association between the phases of social capital development and stages of internationalization, and a cumulative effect in social capital formation as the process of internationalization unfolds once initiated. Common ethnicity can help move the process forward, while the strengthening of social ties based on the accumulation of trust is also an important factor in this evolution. The characteristics and intentions of entrepreneurs influence the speed of social capital development, whereas the type of business and industry in question influences its form.

Quality management, innovation capability and firm performance

PurposeMany organizations are facing competitive challenges due to the rapid pace of technological changes. Both quality management (QM) and innovation are the competitive factors that are intensely embedded into organizational products, services and processes. In order to achieve higher firm performance, manufacturing firms are needed to adopt QM practices as well as develop innovation capability. Therefore, the purpose of this paper is to examine the relationship among QM, innovation capability (IC) and firm performance under both mediation and moderation models using structural equation modeling.Design/methodology/approachThe approach of this study is quantitative. The data used to test the hypotheses were gathered from Indian small- and medium-sized enterprises (SMEs) interviewing senior managers with a structured questionnaire. These hypothesized relationships are tested with data collected from 134 Indian manufacturing firms by using SPSS and AMOS statistical software.FindingsOverall, the findings clearly show that QM through the firm’s IC is indirectly associated with a firm’s business performance. It supported the notion that QM practices encourage the definition of innovation strategies of products and processes within a manufacturing setup, which positively affected different aspects of firm performance. More importantly, this study supports the findings of past studies that questioned the role of QM practices in improving a firm’s IC.Research limitations/implicationsSome limitations of this study include: although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of senior managers of Indian manufacturing SMEs, and hence both the sample size could be increased and the nationality of the respondent/responding firms could be expanded for future research.Practical implicationsIn light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies. The paper contains suggestions for improving manufacturing firm’s performance through developing IC and adopting QM practices.Originality/valueThis paper extends theoretical contribution in production and operations management literature, highlighting how QM practices and firm’s IC have to interact in determining an organization’s success and sustaining its global competitiveness.

An investigation on lean–green performance of Indian manufacturing SMEs

PurposeImproved performance in operational (lean) and environmental (green) dimensions has been extremely critical to the global competitiveness of organizations. As the performance of small- and medium-sized enterprises (SMEs) is influenced by various external and internal factors, the purpose of this paper is to analyze the lean–green performance of Indian manufacturing SMEs by investigating the influential relationships of various factors along with the set of lean and green practices adopted by the firms.Design/methodology/approachThe study employs a holistic approach by integrating multiple case study and data envelopment analysis (DEA) in eight manufacturing SMEs to verify a set of five propositions relating issues such as organizational factors, quality and environmental management certifications, implementation of lean and green practices with operational and environmental performance in Indian SMEs. Within-case analysis and cross-case analysis are used for a qualitative investigation of cases while DEA with four input variables, two desirable output variables and one undesirable output variable, is used for quantitative investigation with returns to scale (RTS) and damages to scale (DTS) analysis.FindingsThe RTS/DTS results suggest that Indian SMEs exhibit decreasing RTS and increasing DTS, implying that they need to decrease their operational sizes in order to improve the operational and environmental performance. The possible alternative and more practical strategy could be to introduce new technology innovation and holistic adoption of manufacturing excellence initiatives such as lean and green.Originality/valueThe research findings provide insights into the lean and green performance enhancement approach in the context of SMEs. The study extends key managerial implications and policy-related guidelines.

Impact of determinants on early internationalization

Purpose The purpose of this paper is to analyze the influence of determinants on early internationalization in the context of an emerging economy, i.e. India. Design/methodology/approach The study is based on an ex post facto exploratory research using primary data collected from a sample of 102 exporting small- and medium-sized enterprises (SMEs) in Bangalore. Findings The overall results reveal that it is the proactive entrepreneurs and their previous experience that determine the early internationalization of SMEs. Further, competitive constraint was a major obstacle to enter the international market at an early age for late internationalized SMEs. Practical implications The policy initiatives should aim to develop the international orientation of the entrepreneurs in the firm as a precursor for the formulation and subsequent implementation of internationalization strategies. Originality/value Although studies have been conducted on determinants and early internationalization, these are confined to a few dimensions, and none of the studies have looked into the issues affecting the early internationalization holistically and with respect to SMEs in India.

Cost reduction and quality improvement through Lean-Kaizen concept using value stream map in Indian manufacturing firms

As customer’s demands are continuously hiking for low price quality products, Indian Small and Medium-sized Enterprises (SMEs) are struggling and facing challenges in order to meet these demands at the lowest cost. This research paper demonstrates the process for significant cost reduction and quality improvement in an Indian SME by applying Lean-Kaizen concept using a popular lean tool named value stream map (VSM). A current stream state map of ‘gear sector’ was prepared from data collected by taking personal visits to the selected manufacturing industry. After carefully investigating the current situations, a future state map was developed in which non-value add activities (NVAs)/waste were identified and eliminated. The 5-why method was used to identify root causes of these waste in the process. One Kaizen event was proposed to bridge the gap between the current and future state of selected industry. Through Kaizen event, a major quality problem which significantly contributed to rejection cost of nearly 1250/- INR per day was eliminated. The data obtained after Kaizen event was analyzed and reported benefits such as quality improvement, cycle time reduction time saving, customer satisfaction and zero defects are presented as finding. Through the present work, it is evident that the implementation of Lean-Kaizen concept helps to tackle inefficiencies in the processes and provide opportunities for reducing cost by applying small–small changes across the organization.

Towards sustainable development in industrial small and Medium-sized Enterprises: An energy sustainability approach

Abstract In the quest for global sustainability, the manufacturing sector holds immense potential. Pinned under the regulatory and market pressures, large-sized manufacturing enterprises have started reporting their sustainability efforts as per established guidelines. Small and medium-sized enterprises (SMEs), on the other hand, playing an even greater role of optimizing the economic structure and social stability of developed and developing economies. Ironically, they struggle more to expand and communicate the sustainability efforts to their stakeholders. Thus, the objective of this study is to develop an easy-to-implement managerial framework for guiding the visualization, implementation and reporting of energy sustainability (ES) for industrial enterprises. To address this objective, a three-step ES framework was developed through a systematic literature review and an iterative process of longitudinal action research in two medium-sized industrial enterprises from geographical cluster of foundry and textile SMEs in India. The three core steps of framework emphasize on energy management organization (with energy management function and roles), energy visualization and optimization (by understanding energy use patterns to identify ES opportunities) and ES reporting (internal and external reporting based on GRI guidelines). The ES framework was validated through action research at two medium-sized SMEs operating in foundry and textile sector in India. While the foundry unit saved production costs of USD 9019/annum, mitigated CO2 emissions of 100.29 t (CO2)/annum and improved employee retention by 32%, the post-implementation benefits gained by the textile unit was cost saving of USD 2486/annum, emission mitigation of 41.36 t (CO2)/annum and an eco-label certification. The study contributes to sustainability management literature by adopting an operative perspective of evaluating sustainability impact of shop-floor-level activities. Its contribution to energy management literature is in expanding the scope of energy optimization initiatives to realizing holistic sustainability benefits.

Effects of intellectual capital and university knowledge in indigenous innovation: evidence from Indian SMEs

Intellectual capital and collaboration with universities are vital knowledge management practices for small- and medium-sized enterprises (SMEs) to innovate and improve the effectiveness of their operations. This study investigates empirically the impacts of intellectual capital and university knowledge on indigenous innovation and how business and institutional environments affect the relationships. The research model is tested using moderated regression analysis and data collected from 150 SMEs in India. The results show that intellectual capital and university knowledge improve indigenous innovation, both individually and interactively. The effect of intellectual capital in indigenous innovation is amplified by dysfunctional competition whereas the effect of university knowledge in indigenous innovation is attenuated by environmental uncertainty. In addition, we find that indigenous innovation is positively associated with business performance. The impact of indigenous innovation on business performance is enhanced by dysfunctional competition but reduced by environmental uncertainty.

Working capital management: evidence from Indian SMEs

ABSTRACTThis study examines the practices and policies adopted by Indian small and medium-sized enterprises (SMEs) to manage working capital and its various components. A survey of owners/managers of 269 Indian SMEs identified working capital management (WCM) practices. Findings of the study indicate that Indian SMEs typically have an informal approach toward WCM and these firms try to match the maturity of assets and financing sources. These SMEs mainly depend on internal funding from retained earnings and external funding from a line of credit to fund working capital needs. Indian SMEs consider the cash conversion cycle and net working capital as a key value metrics in monitoring working capital. Micro-, small-, and medium-sized firms often differ in terms of their WCM practices. By updating and extending previous research on WCM, this study fills a gap in the literature by providing insights into practices adopted by Indian SMEs managing WCM and its components.

The impact of lean practices on the operational performance of SMEs in India

PurposeAlthough lean thinking is deemed to be a gold standard of modern production management, a lot of scepticism still remains regarding its applicability in small- and medium-sized enterprises (SMEs). The purpose of this paper is to understand the perception of lean in SMEs and establish the relationship between lean adoption and operational performance.Design/methodology/approachWith the help of a survey, data were collected from 425 SMEs in India and analyzed using structural equation modeling.FindingsOperational performance of the firms was found to be positively related to lean implementation.Originality/valueThis study also furnishes practitioners with a better understanding of lean thinking in SMEs and its impact on performance.

The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs

The incomplete implementation of lean and innovative approaches in Indian small and medium-sized enterprises (SMEs) and the lack of evidence of successful application of those approaches highlight the need to investigate how and to what extent leanness and innovativeness impact firm's performance. Although some studies in the literature explain the individual impact of leanness or innovativeness on performance, further research is required to analyse the simultaneous effect that these two approaches have on both environmental and financial performance. Therefore, this paper investigates the relationships existing between leanness, process innovation, product innovation, environmental performance, and financial performance. To achieve this aim, we test the hypothesised model empirically using data from 374 Indian manufacturing SMEs. This paper builds upon structural equation modelling (SEM). Specifically, confirmatory factor analysis (CFA) is used to test the construct measures and path model analysis to test the hypotheses of the structural model. The results of the study are consistent with the hypothesised model and show a significant positive impact of both leanness and innovativeness on financial and environmental performance. In addition, the results of this paper show the importance of considering simultaneously leanness and innovation since leanness does not have only a direct effect on environmental and financial performance, but also an indirect effect mediated by innovation. These findings may draw the attention of practitioners, academicians, and policy-makers to the impact that lean and innovation practices have on environmental and financial performance of individual firms and supply chains.

An appraisal on barriers to implement lean in SMEs

PurposeGlobal competition has intensified pressure on small- and medium-sized enterprises (SMEs) to implement lean. Recently, the debate has converged to the role of lean implementation barriers (LIBs). The purpose of this paper is to contribute to this debate by exploring the LIBs in SMEs through three case studies.Design/methodology/approachA case study approach was employed followed by interpretive structural modelling (ISM) to model the interrelationship among the LIBs.FindingsThis study reveals that lack of management commitment, leadership and resources are the key barriers to lean implementation in SMEs in India. Furthermore, poor communication between different levels of the organisation and inadequate dissemination of the knowledge of lean benefits also creates hindrance in lean implementation. Managerial implications of the identified barriers for lean implementation in SMEs have been discussed.Originality/valueThe research regarding lean implementation in SMEs is scarce. This study is the first attempt of its kind to identify the lean barriers in a small industry setup through mathematical analysis.

Identification of key lean practices within Indian automotive SMEs environment

Indian small and medium-sized enterprises (SMEs) are facing stiff competition both in and out of the county by the big players in particular. Indian SMEs are suffering from scarcity of vital resources and latest technical knowhow. It's imperative for them to use resources judiciously by implementing lean manufacturing. It's not feasible for SMEs to implement all the lean practices like big players. The objective of current study is to identify key lean practices for the Indian automotive SMEs to reap the maximum benefits out of it. Factor analysis was applied to identify independent lean practices because the various lean practices suggested by the different researchers were found overlapping and confusing in nature. Multiple regression analysis is used to identify the key lean practices which Indian SMEs can afford and must implement. Customer involvement is the most important lean practice followed by problem identification and prevention, total productive maintenance, and others.

Factors Determining the Innovation Types of Manufacturing SMEs in India

The objective of this study is to identify the linkage, firm characteristic and R&D variables affecting the innovation types of manufacturing small and medium-sized enterprises (SMEs) in India. The study is based on primary data collected through a structured questionnaire and analysed by using multinomial logistic regression. The results of the study exhibit that interconnections with government institutions, research institutions, customers and technical institutors are the most significant linkage variables boosting various types of innovations in SMEs. It also identified that the technical background of the entrepreneurs and investments in R&D also has the likelihood of increasing various kinds of innovations in Indian manufacturing SMEs.

Behavioural biases among SME owners

People are not fully rational and their decisions suffer from errors and biases. Because behavioural finance research focuses on investor irrationality, additional attention should examine managerial decision-making. This study helps to fill this gap by addressing three objectives: (a) to identify whether owners of small and medium-sized enterprises (SMEs) in India are prone toward behavioural bias; (b) to assess the impact of these biases on their decision-making; and (c) to determine whether age, experience, education, and gender affect their propensity to exhibit behavioural biases. Using responses from 154 Indian SME owners, the study uses logistic regression to assess how demographic variables affect behavioural biases. The evidence shows that SME owners are prone to self-attribution, overconfidence, and loss aversion, but not anchoring. Differences exist in the working capital management decisions of owners prone to behavioural biases. Gender, age, and experience significantly affect the propensity to exhibit behavioural biases.

Does strategic planning determine innovation in organizations? A study of Indian SME sector

While some researchers argue that strategic planning assists new product development and can be viewed as a framework for innovation, others believe that it restricts creativity and innovation. Despite a literary appreciation that strategic planning is linked to innovation, the nature of this relationship remains ambiguous. In this study, we argue that this relationship is context dependent and contingent on other organizational factors. Data for this study were collected by administering standardized survey questionnaires to entrepreneurs or other senior executives of small and medium businesses in India. Quantitative analysis of data obtained from 162 small- and medium-sized enterprises (SMEs) in the manufacturing sector reveals a positive relationship between strategic planning and innovation. This study also establishes a significant positive moderating role of commitment to learning on the relationship between strategic planning and innovation. Implications for theory and practice are discussed.

Financing preferences and practices of Indian SMEs

Using survey data from 309 small and medium sized enterprises (SMEs) from the northwest region of India, this study examines the financing preferences and practices of these SMEs. It also investigates the differences in the financing preferences across firm and owner/manager characteristics and documents the drivers of financing practices in India. Respondents prefer internal funds followed by bank financing mainly in the form of long-term loans and funds from government and financial institutions. Among informal sources, SMEs prefer trade credit followed by funds from family friends, relatives, and money lenders. The least preferred source of financing is external equity. The study contributes to the extant literature on SME financing by comparing the financing preferences and practices of SMEs and identifying a financing gap. By providing a holistic view of financing sources to SME owners and managers, the study can assist policymakers in designing appropriate policies for these individuals and help identify underutilized financing sources for SMEs.