Indian SMEs Research Articles

An ISM approach for lean implementation barriers in labour intensive Indian ceramic SMEs

An ISM approach for lean implementation barriers in labour intensive Indian ceramic SMEs

A study on the assessment of maintenance practices on business performance in Northern Indian SMEs

A study on the assessment of maintenance practices on business performance in Northern Indian SMEs

Disaggregated IPO returns, economic uncertainty and the long-run performance of SME IPOs

PurposeSmall and medium enterprises (SMEs) play a crucial role in national economies worldwide, generating employment and contributing to innovation. This study tries to investigate the performance of the newly started IPO platform for the SMEs in India through a two-staged framework developed to measure pre-market and post-market underpricing separately and the impact of economic policy uncertainty (EPU) on the IPO returns using the EPU index which is based on newspaper coverage frequency. Further, the long-run performance of SME IPOs and the factors affecting the same have also been analyzed. The two-staged framework is helpful in capturing the impact of different factors separately on the two distinctive markets and providing effective investment strategies to the investors.Design/methodology/approachA sample of 384 SME IPOs issued during 2012–2018 has been analyzed using robust regression analysis.FindingsThe study highlights the fact that there are differences in the factors affecting pre-market and post-market underpricing and reports that investors subscription rate, issue expenses, lead manager reputation and EPU are positively associated, whereas the age of the firm is negatively associated with the pre-market underpricing, and lead manager reputation positively impacts the post-market underpricing whereas issue premium and pre-market underpricing are negatively associated. Pre-market underpricing subsumes all the impact of EPU (publicly available information) in it, hence providing credence to the semi-strong market hypothesis of the Efficient Market Hypothesis (EMH). The long-run performance of SME IPOs increases with time, and lead manager reputation, pre-market and post-market underpricing are positively related to the one-year return whereas issue size, turnover and issue expense are negatively related.Originality/valueThis paper is believed to be the first attempt to analyze the performance of SME IPOs by disaggregating IPO underpricing. The findings of this study will have a great insight for the investors and policymakers.

Factors contributing and promoting Open Innovation in Indian female-owned Food Processing SMEs- Prioritizing through the AHP technique

The prime motivation behind this investigation is to recognize and organize the different factors connected to Open Innovation in the already up and running from last five years Indian female owned SMEs in Food Processing Industry. Fifteen Indian female owners were chosen. An AHP system was utilized to examine the weight of basic elements leading towards Open Innovation. All things considered, the respondents organized advancement technique, opportunity acknowledgment, money and inspiration as the principle criteria that leads to Open Innovation in Indian females owned SMEs in Food Processing. COVID-19, gender gap, raising inner and outer funds were likewise observed as a hindrance ladies face that usually would keep them away from innovative tasks performed for business. The result of this examination is giving policymakers in India food for thought regarding the significance of the factors connected to development of Indian female owned SMEs in Food Processing Industry and will be able to move towards sustainable development goals- Goal 9 (Industry, Innovation and Infrastructure) and Goal 5 (gender equality) which is required for the economic development of the country. This will assist them with systemizing and organizing the basic, advancement of open innovation factors in Indian female owned Food Processing SMEs, which will give a boost to the contribution of Indian females in the financial development of India, which a developing country currently.

Influence of inbound and outbound open innovation practices on performance of firms: an evidence from Indian product SMEs

PurposeThis study aims to analyze the influence of inbound and outbound open innovation practices on firm performance among Indian product small and medium-sized enterprises.Design/methodology/approachA cross-sectional design with a quantitative approach is adopted. The data is collected from 213 decision-makers of software product firms through an online survey using the criteria-based snowball sampling method. The data is processed in IBM SPSS 23.0 and analyzed using multiple regression.FindingsCollaboration with customers and purchasing intellectual property rights (IPR) are the key inbound practices that positively influence firm performance. Outbound innovation practices such as selling out IPR and spin-off influence firm performance negatively and positively, respectively. Inbound open innovation practice such as trade show participation helps in product development and outbound open innovation practice such as spin-off helps in product development.Originality/valueThe study analyses the influences of inbound and outbound open innovation practices on firm performance among software product firms in emerging economies. The research outcomes have vast implications for theory and practitioners.

Adoption of Online Resources to Improve the Marketing Performance of SMEs

With the increase in the pace of globalization, SMEs are facing stiff competition from multinational firms. The entrepreneurs owning SMEs have fewer funds, but they need to improve the output of their organizations. Technology adoption can help owners of SMEs to match up with the pace of multinational firms because it can increase their reach and improve overall performance. In this paper, the authors will discuss whether online resource adoption (social media, e-commerce, technology 4.0) will enhance the marketing standard of small and medium enterprises or not. SMEs can achieve economies of scale because of the prominent usage of technology. The findings of this paper will help owners/managers of Indian SMEs to understand the use of online resources in improving marketing within a limited budget. COVID-19 has also pushed all the organizations towards the usage of technology. Either big or small organizations, none of them can ignore the use of technical sources for marketing in this digital era.

Modeling of critical success factors for adoption of smart manufacturing system in Indian SMEs: an integrated approach

Modeling of critical success factors for adoption of smart manufacturing system in Indian SMEs: an integrated approach

Assessment of TOC and TPM in Indian SME Auto Manufacturing Industries

The purpose of this article is to investigate the impact of theory of constraints (TOC) and total productive maintenance (TPM) practices on operational performance, and their interlinkage between each other. Constructs that are critical to auto manufacturer’s operational performance have been identified with the help of literature and experts from industry. The impact of TOC and TPM on operational performance has been evaluated. Similarly, impact of competitiveness on operational performance has been evaluated. Further, alternate models are tested and evaluated through structural equation model.It was observed during testing of alternate models that TOC and TPM have a direct impact on operational performance. However, TOC and TPM practices also directly impact overall operational performance, which in turn, influences competitiveness. In comparison of alternate models, the model in which TOC and TPM affect overall equipment efficiency (OEE), human total participation and commitment (HTPC), throughput (T), inventory (I), and operating expense (OE) practices and these further affect the operational performance, is found most appropriate.This study provides some useful implications from industry point of view. TOC and TPM practices are crucial to auto manufacturing industries. TOC and TPM are the core of attaining sustenance in crucial factors, which will have greater impact to achieve operational performance. Overall equipment efficiency, Human total participation, T, I, and operating expense practices are driven by TOC and TPM practices. This crucial factor linkage helps to achieve the desired operation performance.There are very limited studies that have considered both the continuous improvement practices together to achieve better operational performance. In auto manufacturing industry, both TOC and TPM are crucial continuous improvement practices for any organization to drive its growth.

Contribution of green manufacturing for realizing business performance in Indian small and medium scale organizations (SME’s)

PurposeThe current manuscript is focused on evaluating the capabilities of green practices that affect various business performance (BP) parameters of small and medium scale Indian manufacturing enterprises (SME’s). This study aims to obtain multiple significant factors that influence the implementation of green practices.Design/methodology/approachThe manuscript focuses on statistical testing of responses obtained from 168 Indian SMEs to determine the relationship between input parameters and BP parameters. This paper starts with deploying tests such as Cronbach alpha and inter-item covariance test to obtain confidence in data collected, followed by various statistical tests such as Pearson correlation, multiple regression, canonical correlation to extract various significant factors the study. Further Games-Howell post hoc test is deployed to evaluate the significant improvements in BP gained over a reasonable duration of time. Finally, a discriminant validity test is used to find out the success or failure of the organizations that participated in the survey.FindingsThis research contributes to the holistic effect of green manufacturing (GM) toward gaining improvements in terms of different BP parameters taken for the study. It has been found that various input factors such as customer attributes, adoption of new technology, social pressure and government pressure are the main parameters for GM implementation. Further, it is observed that those at the maturity phase of GM implementation are reaping higher benefits than the organizations at the transition and stability phase.Originality/valueThe current study has been accomplished in Indian SME manufacturing organizations to investigate the effects of GM implementation in the organization. Although research findings imply the effective use of green practices within the organization to reap BP parameters and improve the market’s competitive image, the study cannot be generalized and can be used as an insight for both academicians and end-users in understanding the overall achievements of GM.

Barriers to corporate social responsibility: an Indian SME perspective

PurposeSmall and medium enterprises (SMEs) across the world are generally found to have a limited interest in wider social issues. SMEs face many barriers in operating in a socially responsible and sustainable manner despite it making a good business sense. This paper explores the barriers and challenges faced by Indian SMEs for engaging in corporate social responsibility (CSR) practices.Design/methodology/approachThe research uses interpretive structural modelling (ISM) to explore the structural relationship among barriers faced by Indian SMEs in their CSR engagement which were identified from the past literature and validated by the experts.FindingsThe study identified thirteen variables as important barriers resulting in a lower CSR engagement by Indian SMEs. The ISM model indicates that Indian SMEs focus on tactical rather on strategic needs along with their limited information and knowledge about CSR are the main driving forces which keep them away from an active and meaningful CSR engagement. Their limited CSR engagement capabilities, limited need to engage with their workforce and lower CSR perceived benefits also constrain their CSR engagement. The Indian SMEs also do not see a need for CSR engagement because of lower community and governmental pressure.Originality/valueThe study provides a comprehensive listing of CSR engagement barriers faced by Indian SMEs along with the structural relationships among them. The model developed provides CSR professionals and policymakers an understanding of the important impediments in CSR engagement of Indian SMEs based on their driving power and dependence. This insight will help them in designing initiatives to influence identified barriers to promote CSR engagement by Indian SMEs.

Dis-Aggregated Effect of Market Orientation on Firm Performance

Due to ambiguity in the market orientation and performance relationship, the basic aim of the study to investigate the nature of relationship exists between market orientation and performance of the manufacturing SMEs in India. Data for this study were collected from the 388 managers/owners of SMEs indulged in the manufacturing sector through well-established scales. The utilized scale’s reliability and validity were assessed through CFA, and various hypotheses related to the environmental moderators and innovation mediation was tested. This study is relevant for owners/managers and policymakers responsible for improving the performance of small and medium enterprises, working in the manufacturing sector. The study necessitates the significance of catering express needs of customers to boost up the effect of market orientation on performance. The study tested the relationship between the market orientation and performance relationship at the disaggregated level. The important insight about the direct, indirect, and the moderated relationship was reported in the study.

Dis-Aggregated Effect of Market Orientation on Firms' Performance

Due to ambiguity in the market orientation and performance relationship, the basic aim of the study to investigate the nature of relationship exists between market orientation and performance of the manufacturing SMEs in India. Data for this study were collected from the 388 managers/owners of SMEs indulged in the manufacturing sector through well-established scales. The utilized scale's reliability and validity were assessed through CFA, and various hypotheses related to the environmental moderators and innovation mediation were tested. This study is relevant for owners/managers and policymakers responsible for improving the performance of small and medium enterprises, working in the manufacturing sector. The study necessitates the significance of catering express needs of customers to boost up the effect of market orientation on performance. The study tested the relationship between the market orientation and performance relationship at the disaggregated level. The important insight about the direct, indirect, and the moderated relationship was reported in the study.

Strategies to Mitigate COVID-19's Impact on Indian SMEs

SMEs are small firms with small budgets, workforces, and scales of operations compared to large enterprises, and their risk-bearing ability is low. The recent outbreak of COVID-19 paralyzed these SMEs creating severe financial crises and threats to survival. Small firms already face a variety of challenges in their normal course of business while the spread of the virus has suddenly turned down the situation into an emergency for them. COVID-19 stalled the movement of the employees owing to the evolution of severe public health issues, and many SMEs shut down due to fear of the pandemic. Due to this scenario, all SME owners are keen to know more about the measures and strategies that could be implemented to mitigate the negative impact. Hence, adopting an exploratory approach with systematic literature review, this paper deliberates on how these issues can be addressed through a robust and well-drawn policy and discusses the mitigation strategies that will aid in softening the blow due to this pandemic and also helps in the resurgence of SMEs at a faster rate.

Lean practices and operational performance: the role of organizational culture

PurposeThere is a scarcity of research about cultural aspects of organization related to lean implementation. The purpose of this research is to investigate the effects of lean practices and organizational culture on the operational performance of small- and medium-sized manufacturing enterprises.Design/methodology/approachThe study is based on a survey conducted and data collected from 215 manufacturing SMEs in India. The hypothesized relationships are then analyzed with structural equation modeling.FindingsThe results showed that the constructs of lean practices and organizational culture have significant and direct effects on the operational performance of Indian manufacturing SMEs. Further, this research shows the mediating effect of organizational culture on sustaining lean processes within small-medium manufacturing business setups.Research limitations/implicationsFuture research is required in a more diverse context to confirm the generalization of the results. Future research may be extended to investigate the effects of lean and organization cultural aspects on measures of financial, social and environmental performance.Practical implicationsThe results obtained would help managers of manufacturing SMEs to better understand the linkage between lean and operational performance, considering the aspect of cultural change management in an organization. The outcome of this research provides useful indications of how organizations can work to sustain the philosophy of lean manufacturing within their workplace.Originality/valueThere is a lack of research at the critical intersection of organizational culture and sustainability of lean implementation. Culture is key to making changes required for lean implementation and in sustaining the drive toward lean production and management. This research is an attempt to fill that gap.

AN EMPIRICAL STUDY IN SUSTAINABILITY REPORTING PRACTICES OF INDIAN SMALL AND MEDIUM-SIZED ENTERPRISES

The present study is undertaken to examine to what extent sustainability guidelines, national and international, are followed by the Indian SMEs. The main objective of this study is to examine the sustainability disclosure practices of Indian SMEs. For this purpose, 25 SMEs are considered which are listed in BSE SME and their annual reports for the year 2018-19 are examined. The present study indicates that sustainability issues are of the highest priority but still in their nascent stage particularly among the Indian SMEs. Based on content analysis, the study result shows that the overall disclosure level of sustainability issues is moderate. This pilot study provides an idea about the sustainability reporting practices of Indian Small and Medium-sized Enterprises. Despite some limitations, this is the first study that examines the extent of sustainability reporting practices voluntarily following national and international guidelines.

An empirical investigation of maintenance practices for enhancing manufacturing performance in small and medium enterprises of northern India

PurposeThis paper aims to assess the contributions of maintenance practices and extract various significant factors that influence the implementation of maintenance practices in northern Indian small and medium-sized enterprises’ (SMEs) business performance.Design/methodology/approachIn the current study, 216 north Indian SMEs have been extensively surveyed to assess the contributions of different maintenance practices implementation dimensions and manufacturing performance attributes through different statistical techniques. Analysis of variance (ANOVA) was used to statistically validate the hypotheses, while Levene’s experiment and Wilk–Shapiro tests were used to confirm ANOVA’s assumptions. Finally, the discriminating validity test extracts highly successful and moderately successful organizations.FindingsThe present research aims to evaluate the contributions of different maintenance practices implementation dimensions on SMEs’ manufacturing performance attributes. The study highlights that strategic maintenance practices such as corrective maintenance (CM), general maintenance issues, preventive maintenance (PM) issues and predictive maintenance (Pd.M) initiatives have enhanced overall equipment effectiveness, overall business performance, quality, cost optimization, safety, delivery and morale in SMEs.Originality/valueThe study validates the capabilities of maintenance practices toward significant improvements of various implementation dimensions such as breakdown maintenance issues, general maintenance issues, PM issues, Pd.M issues, CM issues, computer maintenance management system issues, maintenance scheduling issues and total productive maintenance issues. The study reveals significant implications for SMEs for realizing significantly improved manufacturing performance through strategic maintenance initiatives.

Is the relationship between working capital management and firm profitability non-linear in Indian SMEs?

ABSTRACT The aim of this paper is to examine the relationship between working capital management (WCM) and firm profitability for a sample of 2122 Indian SMEs. The study is based on secondary financial data obtained from electronic database PROWESS of Centre for Monitoring Indian Economy (CMIE), pertaining to a period of 12 years. The study employs two-step generalized method of moments (GMM) estimation to arrive at the results. The estimates of two-step GMM confirm an inverted U-shape relationship between WCM and firm profitability.

Digitization and Industry 4.0 practices: An Exploratory study on SMEs in India

Industry 4.0 is a present day issue that concerns today's industrial production as a whole. . It’s an opportunity to radically change the way industry responds to the needs of society. The advancement of industry 4.0 will be driven by an interconnected progressive environment. The opportunities for disruption are huge and those left behind will feel it acutely. Industry 4.0 talks about the use of sensors, connectivity, artificial intelligence techniques, machine learning, CPS, Machine machine communication, and so on to develop smart factories, smart inventory management systems, and smart supply chain management. The adoption of digitalization and industry 4.0 practices is expected to play a very important role in the growth and development of Small and medium enterprises. The purpose of the paper is to summarize major government initiatives towards the digitalization of SMEs in India and to study the impact of digital transformation on SME's growth prospects. This study may provide evidence of the state of digitalization and industrial revolution 4.0 adoption in Indian SMEs with additional information as to the significant factors that affected their adoption. It is suggested that this piece of work can be made an important contribution to guide future research on digitalization and SME's adoption of industrial revolution 4.0 practices.

Eco-innovation and sustainability performance: an empirical study on Indian manufacturing SMEs

Unprecedented industrialisation have mounted pressure on small firms to become sustainable in developing economies. To achieve sustainability, firms need to cultivate eco-innovation among manufacturing SMEs. The paper attempts to establish the affiliation between eco-innovation and sustainable performance among manufacturing SMEs in India. The results indicate that eco-process innovation and eco-organisational innovation have noteworthy association whereas eco-product innovation has no relationship with sustainability performance including economic, environmental and social performance.

Eco-innovation and sustainability performance: an empirical study on Indian manufacturing SMEs

Unprecedented industrialisation have mounted pressure on small firms to become sustainable in developing economies. To achieve sustainability, firms need to cultivate eco-innovation among manufacturing SMEs. The paper attempts to establish the affiliation between eco-innovation and sustainable performance among manufacturing SMEs in India. The results indicate that eco-process innovation and eco-organisational innovation have noteworthy association whereas eco-product innovation has no relationship with sustainability performance including economic, environmental and social performance.