Small And Medium Enterprises Managers Research Articles

AN EMPIRICAL RESEARCH ON STRATEGIC MANAGEMENT: A RESEARCH ON SME MANAGERS

Small and Medium Enterprises (SMEs) are the main economic actors in terms of the healthy development of the countries’ economies and the increase of social welfare level. The continuity and success of these enterprises also have some social effects. Socially, effective use of capital, employment creation potential, support for the development and effective meeting of customer demands are among its most important and strategic features. The aim of this study is to determine the level of knowledge of SME managers in Karaman province about strategic management discipline tools and to reveal their views on strategic management. Within the scope of the research, SMEs in the Karaman Organized Industrial Zone were determined according to the complete count method and a questionnaire study was applied. The differences in opinion and knowledge level according to the demographic variables of the participants were analyzed. According to the results of the research, there is a significant positive relationship between education level and strategic management awareness. JEL codes: M1, M13, L21

Editorial

Welcome to the eight-issue of the Journal of Construction Business and Management. This edition of the journal presents scholarly discussions on theoretical and empirical challenges confronting best practices and policies in construction businesses and projects. The intention is to understand the practice and theoretical lens used in its explanation or interpretation. This edition of the journal covers the following subjects: subcontracting processes, contingency management, social license, risk measurement, project success, quality process implementation and competitive advantage. The issue contains five articles written by eight scholars based in Ghana, India, Nigeria, and South Africa.
 The first paper by Akinwale and Olusanya (2020) examines subcontracting processes' influence on wages and workloads in the construction industry. The study found that subcontracting processes significantly influenced workers’ participation in wage determination and workloads. The findings suggest that working in a subcontracting system alienates subcontracted workers from the determination of wages and workloads and thereby showing the need for adequate protection for these workers. The second paper by Maniar (2020) evaluates the current state, the issues faced in contingency management and its effectiveness in curbing cost overruns. It seems inevitable that contingency management could impact cost overrun problems. Not so reveals the study results, which shows that contingency considerations were only useful in accommodating cost overrun problems in 18% of projects studied. Based on these findings, the study recommends that contingency be estimated based on the scientific approach to addressing project risks instead of the commonly used subjective approach.
 Perhaps the most compelling argument is why a construction company must acquire regulatory permits that embrace all stakeholders before a construction project is approved as outlined in Danku (2020). The paper highlights that not all formal processes embrace all stakeholders such as the hosting community who need to consent to a firm’s activities to complete the symbiotic relationship. The study found a limited understanding and restricted application of the concept of social licence – the commitment of residents towards acceptance, approval and support for a project to exist within a community, by construction professionals. The paper recommends industry sensitization and education to harness a company's benefits from acquiring a social licence. The fourth paper by Renault, Agumba and Ansary (2020) examines the influence of risk management on the project success of Small and Medium Enterprises (SMEs). Results reveal that risk management significantly influences construction SMEs' project success by delimiting the risk management criteria to be adopted, establishing the level of acceptable risk and risk timeframe relevant to risk effect and risk likelihood. The paper recommends that the management of SMEs and construction industry professionals adopt risk management to manage their project risks to accomplish project objectives effectively. 
 Although it is generally accepted that construction quality process implementation improves construction project performance, there is limited research into the factors affecting the quality of the road infrastructure projects produced by SMEs. The fifth paper by Nyakala (2020) investigates these factors. The study established that five construction quality process factors affect the quality of road infrastructure projects undertaken by construction SMEs. These factors comprise construction process and design; construction quality management at the site level; the development and implementation of quality procedures and requirements; quality benchmarking; continuous improvement and communication. The results provide a guideline for the successful construction quality implementation by designers/consultants and managers in the construction SME sector. It helps establish the factors affecting road infrastructure projects' quality and a benchmark for competitive advantage.
 Overall, these articles should spark debate and force professionals, researchers and policymakers to think differently about the construction project and business performance while inspiring new practices. I acknowledge all authors who submitted papers for consideration. I also value the contributions and unrelenting efforts of the JCBM editorial board members and panel of reviewers in ensuring that manuscripts are of high quality and keeping the journal on the path to attaining the expected standard and quality. Criticisms, feedback and suggestions are welcome from readers on how to improve the quality of the journal. 

The relationship between Competitive Strategy Drivers and Performance of manufacturing Small and Medium Enterprises in Nairobi County, Kenya

This study determines the influence of competitive strategy drivers on the performance of manufacturing SMEs in Nairobi County in Kenya. Small and medium enterprises (SMEs) are the backbone of many economies all over the world through creation of employment opportunities as well as wealth creation for entrepreneurs. Strong competitive strategy drivers offer advantage to SMEs to help them achieve good performance and remain competitive in their respective markets. The study was anchored on resource-based theory which provided a framework for examining the association between the research variables. For the methodology, a cross-sectional survey was done covering 334 manufacturing small and medium enterprises in Nairobi County, Kenya. Structured questionnaires were used for data collection with a response rate of 89.6%. Various descriptive statistics were used to project the demographic characteristics of the association and the respondents. Inferential statistics was used to assess up the connection between the factors and test the model. The results indicated that the three competitive strategy drivers of environmental based drivers, resource-based drivers and hybrid strategy drivers exhibited significant relationship with performance of the Manufacturing SMEs in Nairobi county. The study’s recommendations will be useful to management of manufacturing-sector SMEs in developing long term strategies to address constraints that could have led to low capacity utilization and productivity in the sector. Additionally, it may be used to guide policy formulations geared to support manufacturing SMEs operations. The researcher recommends similar research to be undertaken in other SMEs and also have more managers respond to the questionnaires in order to enrich the collected data.

Working Capital Management Practices of Small and Medium Enterprises (SMEs) in the Tarkwa Nsuaem Municipality of the Western Region of Ghana

In a developing economy like Ghana, the contribution of Small and Medium Enterprises (SMEs) to the employment of the youth is highly recognized, but their contribution towards revenue to the national budget seems negligible. The reason is that some of the Enterprises do not manage their Working Capital as expected and this has affected the viability of their businesses. Mostly, the Operators of Small and Medium Enterprises possess limited formal education, weak managerial and financial management skills within the sector. This study evaluates Working Capital Management Practices among Small and Medium Enterprises (SMEs) in the Tarkwa Nsuaem Municipality of the Western Region of Ghana. One Hundred and Twenty (120) SMEs in the Tarkwa Nsuaem Municipality of the Western Region of Ghana were surveyed for this purpose. Statistical Package for Social Sciences (SPSS) was used to conduct several forms of analysis. The research hypothesized that among the demographic factors, only academic qualification of an entrepreneur and location of business have influence on Working Capital Management of SMEs in the Municipality. The Operators also carry out formal credit investigations before selling on credit especially for the first time. Again, the Enterprises appeared to be liquidity conscious and thus, refrain from financing long-term projects with short-term funds. One key issue the study revealed is that though the SMEs appeared to be managing their working capital well, they will do much better if they make use of entrepreneurial programmes offered by the National Board for Small Scale Industries (NBSSI) and Non-Governmental Organizations (NGOs) since these come with education and training.

Contributions of SME Owners in Achieving Business Growth: A Case Study of Some SMEs in Abuja, Nigeria

Small and Medium Enterprises (SMEs) play a significant role in most economies around the world most especially in developing countries as they serve as major contributors to job creation and economic development. They contribute majorly in GDP which makes them top priorities by governments around the world. According to World Bank estimates, SMEs represent not less than 50% of employment worldwide which is about 90% of businesses. It is highly important to have good SMEs managers because of the roles SMEs play in the economy so that businesses can be managed in an effective and efficient manner in order to attain growth. T h is study looks at impacts being played by the SME owners in achieving business growth using Abuja, Nigeria as case study. The findings from this study suggest that Nigeria government should invest more in SMEs in order to boost the economy.

Job Satisfaction and Intention to Leave among Middle-Level Managers of SMEs in Dubai, UAE

In Dubai, United Arab Emirate (UAE), the Small and Medium Enterprises (SMEs) in the construction sector have a shortfall of 500,000 skilled employees because of the lack of job satisfaction and top management support, which prompt workers to leave their places of employment. Thus, this study investigated the effect of top management support (TMS) as an organizational factor on the relationship between job satisfaction and the intention to leave among the middle level managers in the construction sector of Dubai, UAE. To test the relationship among the variables, this study adopted a quantitative design and data was collected from 120 middle level managers of SMEs. The Partial Least Squares – Structural Equation Modelling (PLS-SEM) technique was adopted in the data analysis. According to the outcome, the relationship between 4 facets of job satisfaction and the intention to leave among the middle level managers of SMEs was established. The study also found statistical support for the moderating effect of TMS on the relationship between 2 facets of job satisfaction and the intention to leave among the middle level managers of SMEs.

Knowledge sharing, knowledge transfer and SMEs: evolution, antecedents, outcomes and directions

PurposeThe purpose of this paper is to systematically synthesize the extant literature of knowledge sharing (KS) and knowledge transfer (KT) in the small and medium enterprise (SME) context and to contribute with predictions of emerging themes.Design/methodology/approachApplied is a systematic literature review using three bibliometric techniques: (1) textual analysis for keywords and abstracts to identify the research hotspots, (2) co-citation analysis of references to identify the evolution of KS and KT in SME and (3) bibliographic coupling analysis of documents to synthesize antecedents and outcomes.FindingsA conceptual map emerges from the review to reveal the antecedents of KS and KT at the individual, group and organizational levels. The analysis shows the strategic importance of KS and KT for the SME context. Specific findings include: (1) KS and KT are involved in enhancing SMEs strategic focus for human resources, including organizational learning, customer relations, creativity, higher profit and positive effects on operational processes and decision-making. (2) Innovation, trust and performance are identified as central human factors linked to KS and KT in SMEs. (3) Human resource (HR) management research could contribute to KS and KT in the SME domain by exploring KS- and KT-based practices, linking the emergence of innovation and innovative behaviors to these practices, leading to a better understanding of strategies that enable the long-term storage and retrieval of tacit and explicit knowledge as organizational memory in the SME context.Originality/valueThis paper is one of the first to systematically review KS and KT in SMEs and propose a concept map. The research adds value to the growing literature of KS and KT and exposes the need for more specific activities to support SME managers, as well as HR managers, who need to facilitate KS and KT in SMEs.

Mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of Saudi SMEs

Goal: This study aims to examine the mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of small and medium enterprises (SMEs) in Saudi Arabia.
 Design/Methodology/Approach: Quantitative analysis techniques is used in this study. Data from 206 KSA owners / managers of SMEs is obtained and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM).
 Results: Findings indicate that strategic orientations mediate the relationship between entrepreneurial orientation and performance of SMEs in Saudi Arabia.
 Limitations of the investigation: The proposed model may not be generalised and must be applied in other contexts and cultures.
 Practical implications: This study indicates that KSA managers should maintain emphasis on entrepreneurship and establish unique strategic techniques to improve efficiency. Policymakers are recommended to establish entrepreneurship initiatives for SMEs to form entrepreneurship. Additional recommendations are also provided.
 Originality / Value: This study adds to the current body of knowledge by addressing the mediating role of market and technology orientation in the relationship between entrepreneurial orientation and performance of Saudi SMEs.

How Firm Characteristic on Capital Structure Can Improve Technology Improvement in Malaysian Manufacturing SMEs?

Small and medium enterprises (SMEs) is a important contribution to boost the economies overall the world. In fact, SMEs always struggle to access the financing compared list company. There are several factors influence the capital structure decision in SMEs. This study focuses on manufacturing SMEs companies and examines the influence of firm characteristics (firm size, tangible asset, liquidity, profitability and firm growth) on capital structure towards technology improvement. The results showed only liquidity and firm growth were found to be positive significantly affect the external financing. Furthermore, internal and external financing also able improve the manufacturing’s technology performance. Conclusion, different firm characteristics have different leverage privileges which trying to attain optimal capital structure. The variations in the capital structures affect the costs of equity or debt and cost of capital. This study provides benchmarks for corporate managers in SMEs when making a company’s decision on the company’s performance.

Identifying Small and Medium Enterprise Smart Entrepreneurship Training Framework Components using Thematic Analysis and Expert Review

Small and Medium Enterprises (SMEs) today are facing a competitive business environment, in a complex and rapidly changing environment. For that technology is seen as a mediator capable of transforming SMEs to greater heights in an amid and vigorous pace of a borderless world. The agenda of SMEs to generate national income as well as to create more employment opportunities has made the government much focused in providing improvements in business opportunities to SMEs to boost the country's economic growth. To ensure that the SME owners sustain their business, they should be able to adapt the use of the internet as a key component in designing new business model values, customer experiences and internal capabilities that support the key operations. However, there are still some SME owners who do not leverage on the use of Information and Communication Technology (ICT) in their business operations. This study interviewed eight SME owners who operated their businesses in Kuala Lumpur and Selangor to identify a list of most important business training courses needed for SMEs in Malaysia. The data was analyzed using Thematic Analysis method and it was found that there are five main components of courses in SMEs, namely, Business Management, Sales and Marketing, Accounting and Finance, ICT and Technology, and Production and Operations. As a result of this Thematic Analysis study, researchers have developed a smart entrepreneurship training framework related to the five components and produced a system called, the Malaysian SMEs Psychometric Test or U-PPM which has been reviewed and endorsed by the respective panels of experts. This proposed framework is important for SME owners and management and also the government and stakeholders, when making the correct decisions in selecting business training courses as well as to increase ICT and digital technologies usage in providing a positive impact to all SMEs in Malaysia.

Why a Lending Relationship for Small and Medium Enterprises is indispensable for Economic Development of Baluchistan

The study is deliberated to know the effects and benefits of lending relationships on Small and Medium Enterprises (SMEs) and Economic Development in Balochistan. The target population in this context is the Small and Medium Enterprises (SMEs) belonging to Balochistan mainly Quetta city. Most of the respondents are the owners or managers of SMEs working in Balochistan. Factor and Regression Analysis are applied to data to search out the major benefits and their major effects on Small and Medium Enterprises (SMEs) and their role in economic development. The analysis finds out that Small and Medium Enterprises (SMEs) are in favor of external financing, but the high-interest rates and collateral-based lending are big obstacles in their way. The literature review and analysis authenticate that Small and Medium Enterprises (SMEs) are playing a very important role in the economic development of Pakistan but there is a need for comprehensive mass awareness in Balochistan to acquaint the people to adopt the latest rules and techniques being practiced all over the world. This study is somehow limited due to peoples unawareness of the research topic, security issues, traditions, and customs of Balochistan.

Adoption of supply chain finance by small and medium enterprises in China

PurposeSupply chain finance (SCF) is a promising financing solution for small and medium enterprises (SMEs). The study aims to highlight the determinants of the adoption of SCF and the theoretical implications for SCF in SMEs.Design/methodology/approachDrawing on the theory of planned behaviour (TPB), the authors develop a model and test hypotheses about the factors (1) SE, (2) attitude toward SCF, (3) social influence (SI), (4) adoption intention (AI) and (5) actual adoption (AA) of SCF. Data collected from a survey of 211 managers in SMEs in China were used to conduct a partial least squares (PLS) estimation.FindingsThe empirical results indicate that attitude toward SCF and SI positively affect AI towards SCF, whereas AI positively affects the AA of SCF. Specifically, the authors find that AI plays a mediating role in the relationship between SE and AA of SCF, whereas attitude toward SCF plays a mediating role between SI and AI.Originality/valueFirst, the authors use the TPB to study the adoption of SCF in SMEs. Second, the authors apply PLS to clarify the influence mechanism of behavioural factors on the adoption of SCF. The authors provide a useful approach for practitioners in examining the adoption of SCF by SMEs.

Effect of internal integration on SMEs’ performance: the role of external integration and ICT

PurposeThe paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.Design/methodology/approachCross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.FindingsThe results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.Practical implicationsPractically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.Originality/valueEngaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.

Correlation analysis between risk measurement and project success of small and medium contractors in Gauteng, South Africa

Risk measurement (RM) and construction project success (PS) are closely related. Preceding studies highlight the importance of RM in the management of risks without revealing its effect on PS. This study aims to determine the influence of RM on the PS of small and medium enterprises (SMEs). A positivist research design was applied using a survey questionnaire circulated to 181 respondents in Gauteng, South Africa (SA). Raw data analysed using inferential statistics extracted one-component solution and evinced statistical significance (p=0.000<0.05) between RM and PS. In particular, results revealed that RM significantly influences PS of construction SMEs through delimiting the RM criteria to be adopted, establishing the level of acceptable risk and risk timeframe relevant to risk effect and risk likelihood. It is suggested that the management of SMEs and industry professionals involved in risk management should adopt RM for the management of their project risks to accomplish project objectives effectively. The study renders new empirical evidence of risk management factors that influence PS of SMEs in the context of SA. It remains to be seen whether the current finding could be replicated in other datasets. If indeed that is the case, then this article expands to the discourse and literature on RM of SMEs. However, the current findings cannot be generalised due to the restrictions pertaining to the geographical area and respondents.
 Keywords: Contractors, Correlation analysis, Factor analysis, Project success, Risk measurement.

Spreadsheet Model for Determining Adequate Performance Indicators of Production Management

Research Question: This paper presents a simulation model aimed at improving total adequacy calculation for performance indicators of the first phase of production management. Motivation: Defining a set of adequate performance indicators that are specific and highly important for the observed planning phase has a significant impact on the effectiveness of the production process management. The result of the developed model is the value of selected performance indicators adequacy. Consequently, it can be concluded whether defined performance indicators are essential for the observed phase or other performance indicators should be selected. The monitoring of defined performance indicators should provide complete information about the observed phase and improvement of the planning phase management. Idea: The main idea of this paper is to develop a user-friendly simulation model, in accordance with the basic principles of spreadsheet engineering, for improving the selection of adequate performance indicators. This model is intended for use in Small and Medium Enterprises (SMEs) for the improvement of production management. Data: The data used in the paper are grounded on the scientific articles, reviews and empirical studies, related to the performance and performance indicators in production management. The set of most adequate performance indicators based on a relevant literature review and used in the model, represents performance indicators for the planning phase that are the most suitable for SMEs. Tools: The simulation model is developed in a spreadsheet environment. The use of spreadsheet applications enables simple data entry, processing, editing, analyzing and output reports compiling. Findings: Simulation results show the overall efficiency of the developed model in the determination of adequate performance indicators. They influence overall adequacy of performance indicators on the observed phase. Contribution: The main contribution of this paper lies in the model developed to maximize the adequacy of the performance indicators, suitable for use in the production management of SMEs.

Technological capabilities, open innovation and perceived operational performance in SMEs: the moderating role of environmental dynamism

PurposeIn the current dynamic environment, technological capabilities and open innovation play vital roles in operational performance of small and medium enterprises (SMEs). Thus, the purpose of this paper is to explore the influence of technological capabilities on open innovation and consequent impact on perceived operational performance of the SMEs in Malaysia by considering the moderating effect of environmental dynamism.Design/methodology/approachThis study is quantitative in nature and used a survey questionnaire to gather responses from 202 SME owners in Malaysia. The data were analyzed with SmartPLS software, as it used structural equation modeling.FindingsThe results show that technological capabilities significantly influence open innovation whereas open innovation plays an instrumental role to achieve operational performance of the SMEs. Interestingly, environmental dynamism was found to have a negative moderating role in the relationship between open innovation and perceived operational performance.Practical implicationsThis paper will assist SME managers in making effective decisions while using technological capabilities and open innovation practices. Managers need to be aware of the vital role of technological capabilities to build external and internal collaboration and incorporate their knowledge that is necessary for open innovation practices. The results also assist managers in a way that in the dynamic and competitive environment SMEs should take further proactive actions to compete in the market to survive.Originality/valueThis study provides new insights by dismantling technological capabilities and open innovation to understand further the effects of technological capabilities on open innovation and its consequence on a firm’s operational performance.

FinTech, SME efficiency and national culture: Evidence from OECD countries

Small and Medium Enterprises (SMEs) play a vital role in an economy; therefore, it is important to study the avenues that contribute towards their viability. As a result, we examine the impact of financial technologies (FinTechs) on SME efficiency. Using the Generalized Method of Moments methodology and 1,617 SME firms from 22 OECD countries during the period 2011–2018, we find that FinTechs are positively associated with SME efficiency. Interesting results emerge when we incorporate culture. Masculine societies positively moderate the link between FinTechs and SME efficiency. We also find that individualistic and long-term oriented cultures negatively affect the association between FinTechs and SME efficiency. Our findings have multiple implications. This study suggests the need for countries to introduce policies supporting FinTech startups in order to improve SME efficiency. Moreover, if the SME managers aim to achieve higher firm efficiency, then adopting FinTechs may act as a mechanism to attain this objective. Further, it may be important to consider both FinTechs and culture when evaluating cross-border investments.

Innovative CRM and Performance of SMEs: The Moderating Role of Relational Capital

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.

SME managers’ causal beliefs on HRM as success factor of the firm

ABSTRACT Human resource management (HRM) literature offers abundant theories on the ideal HRM practices leading to positive HRM outcomes and, further, to company performance. However, little is known of small and medium enterprise (SME) managers’ causal beliefs of HRM. We examine how HRM manifests itself in managerial perceptions concerning the important drivers of firm performance. A causal mapping technique was used to elicit perceptions of 37 CEOs of SMEs. The findings indicate that the role of HRM as a performance driver in managers’ causal beliefs varies substantively. The main result of this study is a typology of SME managers’ thinking on HRM as performance factor.

A mediation analysis of social media marketing between the relationship of entrepreneurial marketing strategies and the performance of small & medium enterprises in Pakistan

Objectives: The main focus of this study is to find the role of social media marketing between the relationship of entrepreneurial marketing strategies and Performance of Small and medium enterprises (SMEs) in Pakistan. This research will answer the question that how social media marketing can be crucial for the entrepreneurial marketing to increase the performance of small and medium enterprises in Pakistan. Methodology: The SMEs operating in Pakistan have been considered and the respondents are the Marketing Managers of SMEs. The total number of SME’s in Pakistan is 3.3 million having one marketing manager. The total population of study is 3.3 million. Roscoe 1975 technique has used for selecting sample size. The 384 SME’s managers were selected through Roscoe sampling method and survey instrument has randomly been distributed among the marketing managers of SMEs in Pakistan through the primary data collection mode. Discussion: Hypotheses have been tested through “Structural Equation Modeling”. Since SEM is latest second generation tool of multivariate analysis and it has been used in this study to test the hypothesis. Findings: It is found from the results and discussion that entrepreneurial marketing strategies; proactive orientation, value creation,innovativeness and customer focus plays important role in enhancing the SMEs performance in Pakistan and Social media marketing can highly be effective to implement entrepreneurial marketing strategies to improve the performance of small and medium enterprises in Pakistan. Keywords: Entrepreneurial marketing strategies; SMEs Performance; role of social media marketing