Small And Medium-sized Enterprises Managers Research Articles

Motivating the Workforce: A Key to Enhancing Financial Performance in Lebanese SMEs

Employee motivation is a critical factor influencing the financial performance of small and medium-sized enterprises (SMEs) in Lebanon. In a challenging economic landscape marked by political instability and financial uncertainty, understanding how to effectively motivate employees becomes essential for business success. This study examines the relationship between employee motivation and financial performance within Lebanese SMEs. Utilizing a quantitative approach, data were collected from 250 SME employees and managers through a structured questionnaire. The findings reveal a strong positive correlation between employee motivation and key financial performance indicators, including productivity, profitability, and employee retention. The results suggest that SMEs that prioritize motivational strategies, such as recognition, career development, and supportive workplace environments, experience enhanced financial outcomes. The study concludes with recommendations for SME owners and managers to implement effective motivational practices, thereby fostering a motivated workforce that contributes to sustainable business growth and success in the Lebanese market.

Entrepreneurial Exposure Effect

The paper investigated whether prior entrepreneurial exposure moderated the effect of entrepreneurial leadership and learning orientation on small and medium-sized enterprises (SMEs) growth. A cross-sectional survey research design was utilized to retrieve data from 471 owners/managers of SMEs in South-West Nigeria. The simple random sampling technique was applied. The results from the pilot study were used to determine the test of reliability and validity of the adapted questionnaire. The partial least squares structural equation modeling (PLS-SEM) analysis findings showed that entrepreneurial leadership and learning orientation effect on SME growth is not significantly moderated by prior entrepreneurial exposure in South-West, Nigeria [(βiz= 0.002, t = 22.771, p>0.05)], although it has a positive effect. SME owners and managers should leverage their entrepreneurial insights and experiences to inform strategic initiatives, foster innovation, and drive growth. Additionally, creating opportunities for knowledge exchange and collaboration among individuals with diverse entrepreneurial backgrounds could enrich the organizational learning process and fuel innovation. Nevertheless, there are no guarantees that prior entrepreneurial exposure would affect firm growth.

Digital Transformation of SMEs: The Role of Entrepreneurial Persistence and Market Sensing Dynamic Capability

New digital technologies, combined with the challenges faced by the pandemic, have prompted several organizations, including small and medium sized enterprises (SMEs), to innovate their business models. We extent this article by studying the impact of strategic leaders’ entrepreneurial persistence on digital transformation and business model innovation (BMI). We also examine the role of market-sensing dynamic capability in these relationships. To test our hypotheses, we use survey data from 229 owners/CEOs and senior managers of SMEs based in United Arab Emirates. The results show that entrepreneurial persistence positively influences the adoption of digital technologies and BMI. Moreover, the adoption of digital technologies has a positive effect on BMI and mediates the direct effects of entrepreneurial persistence on BMI. The mediating influence is positively moderated by market sensing dynamic capability.

The influence of selected financial factors on the survival of SMES in V4 countries

Small and medium-sized enterprises (SMEs) play a crucial role in the global economy. This article examines SMEs’ financial management attitudes in the Visegrad Four countries, aiming to understand how these attitudes impact the firms’ long-term sustainability. The empirical study, conducted in June 2022, involved 1,398 respondents, comprising owners or top managers of SMEs from V4 countries. The research explores various facets of the long-term viability of companies over the next five years. Central to the investigation is understanding how managerial comprehension of critical financial management aspects, the willingness to embrace financial risks, and effective risk management contribute to a company’s enduring success. Additionally, the study assesses how a positive evaluation of a company’s financial performance correlates with its overall longevity in the business landscape.Results indicate that financial management significantly influences SME stability in the medium term. Factors positively affecting SME stability include a proper understanding and management of financial risks, along with a positive assessment of the company’s financial activities. Correlation analysis suggests that the perception of business continuity over a 5-year horizon moderately depends on understanding key financial management aspects, accepting financial risks as part of daily operations, and adeptly managing them. A positive vision of V4 SME management regarding their own future emerged as a crucial factor in the study. In conclusion, the article underscores the importance of effective financial management practices, risk comprehension, and positive self-assessment for SMEs to achieve sustained stability in the dynamic business landscape. AcknowledgmentThis work is supported by Tomas Bata University in Zlin through IGA/FaME/2023/014: CSR as an important factor in obtaining bank loans and external financial sources for SMEs.

Joint effect of entrepreneurship and dynamic capabilities on firm performance: an empirical investigation among ICT-SMEs

PurposeWith the focus on the context of small and medium-sized enterprises (SMEs), this study aims to investigate the joint effects of entrepreneurial leadership, entrepreneurial orientation and dynamic capabilities and the mechanisms of how these factors influence firm performance.Design/methodology/approachA survey from 319 managers in information and communications technology SMEs in Vietnam was conducted, and structural equation modeling was adopted to analyze the collected data.FindingsThe results confirm that dynamic capabilities directly influence firm performance and serve as a mediator that connects entrepreneurial leadership and entrepreneurial orientation with firm performance. Additionally, entrepreneurial leadership was found to have a significant positive impact on entrepreneurial orientation.Originality/valueThis research augments the understanding of entrepreneurship and dynamic capabilities literature by examining the joint effects and mechanisms of how entrepreneurial leadership, entrepreneurial orientation and dynamic capabilities interact to enhance SMEs' performance. Furthermore, this study provides empirical evidence of the strategies that SMEs should pursue to attain favorable performance outcomes.

Sustainable performance management in the EU SME sector. A review and analysis of concepts and methods of strategic management accounting

Purpose: The paper’s main objective is to structure the knowledge of the existing regulatory frameworks, projects and actions that support sustainable performance management (SPM) in small and medium-sized enterprises (SMEs) against the backdrop of the growing significance of the circular economy. The paper will also evidence how strategic management accounting (SMA) assists this process, what individual metrics, dashboards or scorecard concepts have been proposed and how their use may be assessed. Methodology/approach: The research methods include (1) a descriptive systematic analysis of the policies established by the policymakers and regulators in the EU, (2) a comparative analysis of various organisations’ initiatives, actions, delivered toolkits and their outputs, and (3) a literature review of the essential works and research studies on sustainable business models (SBMs), circular business models (CBMs) and SPM in the context of SMEs. Findings: The policies established in the EU support SPM by encouraging SMEs to be involved in sustainable business practices and indicating how to embark on a green transition. Recently, multiple initiatives have been aimed at indicating the opportunities the closed-loop economy system offers SMEs. Many toolkits have also been developed to help SMEs measure their sustainable performance. Although this measurement is vital for SMEs, the business practice falls behind the regulatory framework. Therefore, internal initiatives from the SME sector are needed to popularise the sustainability concept. Research limitations/implications: SMEs show lower levels of compliance with environmental requirements and are unaware of how their activities affect the environment. A limitation of the research is that, in many cases, SMEs are not ready to respond properly to the ESG requirements imposed by regulators. The reason may be a lack of knowledge, experience and limited funds. Therefore, future research should focus on recognizing the gaps in this area and identifying what may be impeding the development of sustainability performance management in SMEs. Originality/value: The work presents the evolution path from the traditional business models (TBMs) through the SBMs to innovative CBMs and addresses their distinctive features. It contributes to the existing knowledge about SMA in SMEs by analysing its links with SPM.

Bookkeeping practices and SME performance: The intervening role of owners’ accounting skills

Aside from statutory requirements, Small and Medium-Sized Enterprises (SMEs) hardly take into consideration reliable accounting systems. Therefore, poor and ineffective bookkeeping has contributed to the collapse of some SMEs. This paper examines the intervening role of owners' accounting skills in the relationship between bookkeeping practices and the performance of SMEs in the Ho Municipal Assembly of Ghana using a sample of 296 SMEs. In a structural equation modelling (SEM) framework, the Smart Partial Least Squares (Smart-PLS) software is employed to analyse the relationships between owners' accounting skills, bookkeeping practices, and the performance of SMEs. We find that bookkeeping practices and owners' accounting skills have significant positive effects on the performance of SMEs. Most importantly, we show the existence of a significant indirect relationship between bookkeeping practices and SME performance such that owners' accounting skills positively intervenes the relationship between bookkeeping practices and SME performance. Thus, in the presence of higher owners’ accounting skills, the relationship between bookkeeping and the performance of SMEs is strengthened further. In a typical emerging economy context, while appropriate regulatory bodies, such as the National Board for Small Scale Industries (NBSSI), in the Ghanaian context, and local revenue collection authorities could put forth measures like periodic compliance audits to ensure that registered SMEs are managed by skilled personnel, fostering them to meet basic requirements for keeping records and managing their accounts to improve their performance, it is worth acknowledging that the onus lies on SME managers to recognise the relevance of good recordkeeping and account management practices to ensure sustained business performance.

Entrepreneurial orientation, social media and SME performance: an emerging economy perspective

Purpose This study examines the role of social media adoption (SMA), opportunity recognition (OR) and opportunity exploitation (OE) in mediating the relationship between entrepreneurial orientation (EO) and the performance of newly established small and medium-sized enterprises (SMEs) in emerging economies, with a particular emphasis on Ghana.Design/methodology/approach This study adopts a post-positivist philosophical stance and uses a quantitative approach and a survey design. A purposive sampling technique was used to select 336 SME owners and managers from Ghana’s manufacturing, trading and service sectors. Questionnaires were administered to source the empirical data for this study. Structural equation modelling (SEM) was used to analyse the proposed hypotheses.Findings The results reveal that EO positively and significantly influences the performance of new-born SMEs. SMA, OR and OE partially mediated this relationship.Practical implications This study is a wakeup call to policymakers, practitioners, managers and owners of recently established businesses. Policymakers should provide support and resources for newly established SMEs to adopt effective social media marketing strategies, bolstering their online presence and customer engagement. Simultaneously, they should invest in entrepreneurship education and create an environment conducive to innovation to cultivate an entrepreneurial mindset among fresh SMEs. Business owners and managers should proactively monitor market trends and consumer preferences, adapting their strategies to identifying and seizing emerging opportunities.Originality/value This study introduces a significant novelty to previous literature and one of the first to employ the dynamic capability theory to examine the interplay between EO, SMA, OR and OE in influencing the performance of new SMEs in the context of emerging markets. Furthermore, it extends the scope of understanding of the mechanisms through which SMEs can prosper in these dynamic environments. This unique combination of theoretical framework, comprehensive variables and contextual focus sets this study apart from existing research, enriching the literature on SME performance in emerging markets.

Charity can still begin at home: Examining the drivers and boundary conditions of Africa-to-Africa outward foreign direct investment (OFDI)

Recent studies on ‘Africa Rising’ and ‘Africa-to-Africa Internationalization’ have propelled conversations on how African Small and Medium-Sized Enterprises (SMEs) can continue to internationalize within African countries. From the tenets of the institutional theory and the dynamic capabilities perspectives, this study proposes and tests a framework of how and when dysfunctional competition drives SMEs' outward foreign direct investments within African countries. Analysis of a survey data from 196 Ghanaian SMEs operating across the African continent indicates that cross-border open innovation mediates the relationship between dysfunctional competition and SMEs' intra- Africa OFDI activities. Further analysis revealed that SMEs' strategic agility plays a double-edged sword moderating role in enhancing the effects of dysfunctional competitions and cross-border open innovation on intra-Africa OFDI. These findings have significant implications for the international business and finance literature as well as the management and growth of African SMEs.

Evolution of digital transformation in SMEs management through a bibliometric analysis

This document performs a systematic review of the literature and bibliometrics on the orientation of digital transformation (DT) in the organizational and management processes of small and medium-sized enterprises (SMEs) in the 2015–2022 period. For this analysis, the bibliometrix and biblioshiny software packages have been used to perform the data extraction and quantitative analysis of the research articles, obtained from the Web of Science (WOS) and Scopus databases. 311 articles related to DT in SMEs were identified as the most representative publications of the subject to be analyzed. The results show that there is a clear orientation of DT to modify organizational processes in SMEs so that they are more agile and are thus able to respond to the sudden changes that originate in the markets. The elements that delimit DT in this study are the digital technologies to implement, the strategies to follow and the digital capabilities. Finally, the main limitations, problems and gaps in the research are presented.

Financial Funding for Small and Medium-sized Enterprises (SMEs)

The purpose of this paper is to provide a comprehensive understanding of SME funding issues and promote more inclusive and sustainable funding approaches for SMEs. The method used in this paper is qualitative by looking for papers derived from existing journal literature within ten years, looking for findings or results related to variables in this paper. Discuss results and findings from the literature found. The results of this paper after being presented in the form of a conclusion that makes contributions related to the field of finance. SMEs have an important role to play in African economies, but they often struggle to access formal financial services. Informal finance is becoming the preferred choice in some situations. Recommendations include building a regulatory framework, increasing linkages between the formal and informal financial sectors, and leveraging financial technology (FinTech) for financial access. Financial inclusion and risk management of SMEs are also important. This conclusion highlights the role of SMEs and the financial challenges that must be overcome to support economic growth.

The influence of the labour market and COVID-19 on human resource practices in SMEs in China: a longitudinal study

PurposeThe purpose of this study is to investigate the evolving perceptions and human resource (HR) responses of owners and HR managers of Chinese small and medium-sized enterprises (SMEs) towards local labour markets in the context of the impact of the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThis study adopts a two-stage longitudinal qualitative approach involving 52 interviews with owners and HR managers of Chinese SMEs in the pre- and post-pandemic time periods.FindingsThe findings reveal a shift from the perceptions of a general labour shortage to perceptions of specialised talent shortages and increasing geographical disparities in local labour markets. They further reveal that SMEs are increasingly likely to adopt efficiency-oriented, flexibility-enhancing HR practices in the face of high uncertainty.Practical implicationsThe findings provide insights into the nature of the constraints of SMEs' sustainable development that need to be addressed by policymakers, SME owners and HR managers when they devise and implement policies relating to structure optimisation, labour market integration and mobility enhancement.Originality/valueIn contrast to extant literature that has examined the labour market at the national level, this study explores the views of SMEs (the demand side) by taking a localised perspective on how SMEs have responded to change through their HR practices.

Beyond the International Entrepreneurial Orientation–International Performance Nexus: Early or Late Internationalisation of SMEs?

Currently, knowledge around the role of international entrepreneurial orientation (IEO) on different types of internationalisation is limited. This study aims to unveil whether and how IEO can improve international performance by focusing on the model adopted in the internationalisation process (a traditional versus born global model). Data were collected from 221 internationalised French small and medium-sized enterprises (SMEs) and analysed using a structural equation model. The results highlight that IEO had a significant positive effect on both international economic performance and export turnover for born globals, but not older firms. When we consider the IEO subdimensions, the findings show a stronger positive impact of both international proactiveness and innovativeness on the number of foreign markets and on export turnover for born globals. The study guides international SME managers on why and how they should adjust the IEO of their firms according to their internationalisation models to achieve superior performance internationally.

Identification of optimal maintenance parameters for best maintenance and service management system in the SMEs

PurposeThrough the use of the Markov Decision Model (MDM) approach, this study uncovers significant variations in the availability of machines in both faulty and ideal situations in small and medium-sized enterprises (SMEs). The first-order differential equations are used to construct the mathematical equations from the transition-state diagrams of the separate subsystems in the critical part manufacturing plant.Design/methodology/approachTo obtain the lowest investment cost, one of the non-traditional optimization strategies is employed in maintenance operations in SMEs in this research. It will use the particle swarm optimization (PSO) algorithm to optimize machine maintenance parameters and find the best solutions, thereby introducing the best decision-making process for optimal maintenance and service operations.FindingsThe major goal of this study is to identify critical subsystems in manufacturing plants and to use an optimal decision-making process to adopt the best maintenance management system in the industry. The optimal findings of this proposed method demonstrate that in problematic conditions, the availability of SME machines can be enhanced by up to 73.25%, while in an ideal situation, the system's availability can be increased by up to 76.17%.Originality/valueThe proposed new optimal decision-support system for this preventive maintenance management in SMEs is based on these findings, and it aims to achieve maximum productivity with the least amount of expenditure in maintenance and service through an optimal planning and scheduling process.

Technology orientation and export performance: the moderating role of supply chain agility

PurposeThe purpose of this paper is to investigate the relationships between technology orientations and export performance of small and medium-sized enterprises (SMEs).Design/methodology/approachA quantitative research design was adopted for this study. The paper formulates hypotheses from the literature review. These hypotheses are tested using structural equation modeling with data collected from 231 SMEs in Uganda. Data were analyzed using SPSS version 23 and AMOS.FindingsThe findings of this study showed technology orientation has a positive and significant relationship with the performance of Ugandan SMEs and that supply chain agility moderates technology orientation and export performance.Research limitations/implicationsThe study discusses the findings, advances limitations and managerial implications. It also suggests future research avenues. It proposes some recommendations to help Ugandan SMEs to form flexible supply chains, use the latest technology and create strong relationship ties with their partners in the supply chain.Practical implicationsThe study suggests that managers of Ugandan SMEs should use the latest technology in production, marketing, logistics and supply chain management which will enable them to respond quickly to customer tastes and preferences leading to higher levels of export performance.Originality/valueThis study contributes to the literature on strategic management showing the reliability of scales used and the confirmatory of the factor structure. This study shows that in strategic management technology, orientation is critical in increasing export performance. This study has extended the resource-based view (RBV) and dynamic capabilities theories.

An exploratory investigation of performance criteria in managing and controlling new product development projects: Canadian SMEs' perspectives

PurposeThis paper aims to understand and document evaluation criteria used in the new product development (NPD) process of small- and medium-sized enterprises (SMEs) to support the management and control of their NPD projects.Design/methodology/approachThis study combines exploratory and explanatory methodology (case studies) involving five Canadian small and medium enterprises (SMEs) that are successful in NPD. The authors conducted semi-structured interviews with nine selected managers and project managers to explore the process and evaluation criteria used to manage and control NPD projects.FindingsThe results highlight that cost, time and quality are key evaluation criteria used by SMEs to make decisions relative to the NPD project's success. Profitability, return on investment, expected sales and customer satisfaction are additional criteria used to evaluate NPD project's success. It has been also found that the SMEs did not consider sustainability issues in the criteria used as their focus are on the needs of stakeholders, mainly customers.Research limitations/implicationsLimitations: The evaluation criteria are extracted from a limited number of SMEs that have successfully carried out NPD projects and may therefore be influenced by some contextual factors. The results cannot be generalized to all SMEs or to all projects, as their characteristics may differ. Implications: This study offers a novel outlook on NPD process in SMEs, by documenting criteria related to constraints in project management. The integration of theory of constraints contributes to increasing theoretical knowledge about the management and control of NPD projects in SMEs. It provides insight into how project managers (and other decision makers) can increase the chances of project success by managing project constraints and criteria.Practical implicationsThe evaluation criteria identified in this study can therefore be of use to SMEs managers and project leaders seeking to improve the management and control of their NPD projects. These criteria can help them better manage their limited resources and skills and allocate them to the most promising projects. They can also help them conduct their NPD process more efficiently to achieve the intended objectives, including the desired project profitability targets.Originality/valueThis paper offers new insight and practical implications about evaluation criteria within the stages and activities of the NPD process that needed to be considered by SMEs' managers involved in NPD projects.

Does circular economy entrepreneurship drive technical capabilities for circular economy performance? The moderating role of environmental dynamism

Purpose Drawing on the resource-based view (RBV) and the dynamic capabilities view (DCV), this study investigates how circular economy entrepreneurship (CEE) drives technical capabilities (TC) in achieving greater circular economy (CE) performance for small and medium-sized enterprises (SMEs) under the moderating influence of environmental dynamism. SMEs, facing resource constraints, need to promote CE due to growing stakeholder pressures. Thus, the authors recommend that SMEs via CEE can identify CE opportunities and then develop specific TC to exploit opportunities in the business environment to achieve CE performance. However, in doing so SMEs should pay attention to the varying degrees of environmental dynamism.Design/methodology/approach The RBV and DCV are used as a theoretical lens to investigate the direct and moderation effects between CEE, TC, CE performance and environmental dynamism tested via partial least square structural equation modeling (PLS-SEM) using survey data from 152 managers of SMEs in Nepal.Findings The study results show that CEE directly has a positive and significant effect on the development of TC and CE performance. Similarly, the development of TC drives SMEs to achieve improved CE performance, as evidenced by the positive and significant effect. Interestingly, the results suggest that environmental dynamism significantly improves the relationship between TC and CE performance, but this effect is strongest at high levels of environmental dynamism rather than at low and moderate levels. Additionally, the findings reveal that while environmental dynamism has a positive effect on the relationship between CEE and TC, this effect is insignificant.Originality/value Based on the arguments of the RBV and the DCV, this study explores how environmental dynamism can reduce and amplify SMEs' ability to use CEE to develop TC and improve CEP. First, this study integrates the circular economy and entrepreneurship domains to suggest essential CEP and TC benefits for SMEs via CEE. Second, this study suggests that at low levels of environmental dynamism, CEE has less effect on the SMEs’ development of TC, compared to high levels. Third, this study is conducted in the novel institutional context of Nepal, providing insights regarding how SMEs' CE entrepreneurship impacts TC and CEP.

Integrating ESG practices and natural resources management for sustainable economic development in SMEs under the double-carbon target of China

Small and medium-sized enterprises (SMEs) have positive impact on the global economic growth. Since SMEs are under pressure to promote sustainable practices and aid in the transition to a low-carbon economy as a result of China's double-carbon goal. Due to financing issues and uncertainty, many SMEs find it challenging to adopt sustainable practices. The current study suggests integrating China's double-carbon objective with environmental, social, and governance (ESG) policies and resource management in SMEs. The study makes use of the Delphi and Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) techniques to identify and assess the best strategy for decision-making in this situation. The study identifies and assesses a range of ESG practices and natural resource management integration strategies that can assist SMEs in lowering their environmental impact, enhancing their sustainability performance, and helping China meet its double-carbon objective. The findings indicated that eco-friendly packaging, implementing sustainable transportation practices, and setting carbon reduction targets are the most crucial strategies. These strategies are vital for SMEs to be sustainable and environmentally friendly, as shown by their ranking. This study has significant implications for evaluating and selecting the suitable strategies for incorporating ESG practices and natural resource management in SMEs while taking into account the ambiguities and haziness of decision-making. Therefore, SMEs should support environmental sustainability and build a more resilient and sustainable economy in order to achieve China's double-carbon objective.

Investigating How Procurement Strategies Influence the Performance of Small and Medium-Sized Enterprises (SMEs)

This study explores the impact that procurement methods have on small and medium-sized enterprises (SMEs), particularly those in the manufacturing industry. In this industry, achieving higher levels of competitiveness and long-term sustainability requires efficient procurement management. The study carefully examines the complex relationship between SME performance and their procurement methods using a regression-based methodology. Quantitative information is methodically collected using carefully designed questionnaires, with an emphasis on important areas including information technology integration, supplier selection, and ethical purchasing. The study's conclusions highlight how different procurement strategies have a significant impact on SMEs' performance and highlight how important they are to raising service standards. Specifically, the study shows information technology as a vital factor contributing to enhanced service quality, demonstrating a statistically significant and favorable association. Furthermore, it has been discovered that a business's efficiency can be significantly impacted by the proper selection of suppliers. This study provides SME managers with insightful recommendations in light of these findings. They are urged to make strategic investments in information technology, which can improve data management, automate procedures, improve communication, and streamline operations, all of which can result in higher service quality and productivity. SME managers should also place a high priority on establishing and maintaining strong relationships with dependable suppliers who offer premium materials and components, given the critical relevance of supplier selection. This will have a direct impact on the final product's overall quality. Managers should give ethical issues top priority while making purchases in order to promote a responsible and ethical image.

Exploring consumer segments defined by affective responses to naturalness in logo design

PurposeFocusing on small- and medium-sized enterprises (SMEs), which are characterized by resource restrictions, this paper aims to explore consumer segment profiles by considering demographic, personality and creativity traits to determine whether consumers with different profiles exhibit distinct affective reactions to different logo design types (organic, cultural and abstract).Design/methodology/approachThis exploratory study incorporates recent methodological developments, such as the novel response style correction method, to account for response style effects in evaluations of affect toward logo design. In separate analyses, respondents are segmented according to response style–corrected logo affect and personality and creativity items. The segmentation analysis relies on reduced k-means, a joint dimension and cluster analysis method, which accounts for dependencies between items while maximizing between-cluster variability. A total of 866 respondents from the Iberian Peninsula (Portugal: n = 543; Spain: n = 323) participated.FindingsBased on a study using unknown logos (proxy for lower levels of budget communication, characteristics of SMEs), results reveal that there are three segments of consumers based on their affective response toward logo design: logo design insensitives, cultural logo dislikers and organic logo lovers. These segments are associated with different personality traits, creativity and biological sex (although biological sex is not a discriminant variable).Research limitations/implicationsThe decision not to control logos by color, to increase external validity, could limit the study’s internal validity if this aspect interacts with relevant study variables. Nevertheless, the empirical evidence can be used to further test associations between consumer profiles and responses to logo design.Practical implicationsFindings highlight the relevance of considering complex profile segments, combining demographics, psychographics and creativity to predict affective consumer responses to brand logo design. This research provides guidelines for SMEs when choosing or modifying their logo design to appeal to different consumer segments.Originality/valueThis study provides managers of SMEs (less present nowadays in empirical studies) with evidence suggesting that complex customer profiles help to understand differences in affective responses to natural logo designs. Furthermore, it relies on the use of a novel methodological development that improves the accuracy of the exploratory study developed.