SME Managers Research Articles

Analysis of The Influence of Market Consumption Behavior and Economic Conditions on SME Business Performance

This research aims to provide a comprehensive analysis of the influence of business strategy on consumer behavior, especially upper and middle class consumers. This research uses a qualitative approach with a case study design. Research data was collected through interviews, field observations and documentation. The research results show that the management team of SMEs must improve and adjust their business strategy, this is absolute and must be done immediately because the current business strategy is considered to no longer meet market expectations. This strategy must be adjusted, reviewed and refined over time to attract upper middle class consumers who seek an exclusive shopping experience while maintaining a level of product and price diversity. The research results also suggest that SME managers understand the differences in shopping behavior between the lower class who focus on efficiency and price, and the upper middle class who are not sensitive to price changes and focus more on a more personalized shopping experience. Changes in social structure and macroeconomic factors, such as increasing incomes and decreasing unemployment, also influence purchasing power and demand. Management must adapt by adjusting its offerings and infrastructure to meet the needs of different market segments and be able to respond quickly to changes in social structure and demand which can be very varied and fluctuating.

When does entrepreneurial leadership enhance supply chain resilience? A three-way interaction analysis

PurposeThe research on entrepreneurial leadership (EL) and supply chain resilience (SCR) relationship is still in its exploration stage. Previous research indicates that EL is important for enhancing supply chain performance, including its resilience. However, the conditions through which EL affects SCR remain unclear. The purpose of this study is to examine the effect of EL on SCR in the context of SMEs, in addition to explore the combined moderating effects of big data analytics capability (BDAC) and environmental dynamism (ED) in the EL–SCR relationship.Design/methodology/approachHierarchical regression analysis via PROCESS Macro was used to analyze the data collected from manufacturing SMEs in India.FindingsThe findings reveal that EL positively and significantly affects SCR. Importantly, BDAC actually positively moderates the EL–SCR relationship regardless of the level of dynamism of the business environment.Originality/valueThis research expands the existing body of knowledge on EL and SCR within the context of developing countries. The findings offer useful insights for SME managers and decision-makers, who are anticipated to consider the adoption of BDAC in their firms. This has implications that with BDAC adoption, it is anticipated that SMEs will be able to take advantage of the full potential of EL to enhance their SCR regardless of the level of dynamism of the business environment.

The Role of Digital Transformation and Digital Competencies in Organizational Sustainability: A Study of SMEs in Lima, Peru

Digitalization has significantly transformed businesses in the 21st century, but there are gaps in understanding how it affects human resource management and organizational culture in SMEs in Lima, Peru. This study aims to fill this gap by analyzing the influence of digital transformation, digital competencies, and digital HR management on the organizational culture of SMEs in Lima and how these factors contribute to organizational sustainability. Using a quantitative approach and structural equation modeling (SEM), 307 business leaders were surveyed between January and March 2024. The results show that digital transformation and digital competencies significantly influence digital HR management, which positively impacts organizational culture and promotes sustainable practices. Additionally, it was found that digital HR management mediates the relationship between digital transformation and organizational culture, as well as between digital competencies and organizational culture. It is crucial to invest in digital technologies and foster digital competencies to improve HR management and promote a sustainable organizational culture. In conclusion, digitalization redefines organizational culture and reinforces sustainability, especially in SMEs in Lima, Peru, providing new scientific value by demonstrating these mechanisms of change.

Optimizing financial performance: The interplay between financial management and accounting information systems in Yemeni SMEs

This study aims to explore the moderating effect of accounting information systems (AIS) on the relationship between financial management (FM) and its dimensions (working capital management, financial reporting, and non-current asset management) on the financial performance (FP) of small and medium enterprises in the Republic of Yemen. The study used a quantitative model approach, with data collected via a cross-sectional questionnaire to evaluate the connections within the proposed model. The data was collected from a sample of 287 individuals from SMEs according to the cluster method and analyzed with structural equation modeling (SEM) using SmartPLS software. The results revealed that financial management (non-current asset management and financial reporting) positively and significantly affects financial performance. On the contrary, there is no effect of working capital management on financial performance. More importantly, accounting information systems do not moderate the relationship between financial management and financial performance. The results of the study provide theoretical and practical implications for SME managers on how financial management dimensions and accounting information systems work together to enhance the level of financial performance in SMEs. The interaction between financial management practices and accounting information systems can empower SMEs to make more informed financial decisions. By leveraging this interaction effectively, businesses can optimize resource allocation, investment strategies, and risk management processes.

The interplay of corporate entrepreneurship, knowledge acquisition, knowledge-based resources and SME performance

The role of interorganizational alliances in the linkage between corporate entrepreneurship (CE) and SME performance has been mostly ignored in the literature. This study aims to address this gap by recognizing how interorganizational alliances can contribute to sustaining entrepreneurial activities of companies based on knowledge-based view. The study deployed a sample of SME managers to examine whether acquiring knowledge from alliances among companies shapes the potential for wealth creation by CE activities. Through applying structural equation models (SEMs), the findings show that CE and the acquiring Knowledge generate positive influences on performance. Moreover, the research indicates that acquiring knowledge negatively impacts the connection between CE and performance, and this impact differs depending on the quantity of knowledge-related resources available to the companies. This article also sets out relevant implications for the theory and practice of CE.

What is the critical impact of strategic alliances on innovation, product development, and organizational performance? Three studies in SMEs-An Indian context

ABSTRACT This study addresses the dynamic interaction of strategic alliances (SA) on innovation (IN), product development (PD) and organisational performance (OP) in the Indian small and medium enterprises sector. Three empirical studies (Study 1: N = 170; Study 2: N = 185; Study 3: N = 200) were conducted to test the impact of SA on IN, PD and OP. The questionnaire was distributed to the top- and middle-level managers in Indian SMEs. Furthermore, we applied regression and correlation analysis to explore the relationship between our study variables. The result of Study 1 indicates that there is a significant relationship between SA and IN. In addition, resource integration (RI) plays a significant mediator role between SA and IN. The result of Study 2 indicates that there is a positive impact of SA on PD. In contrast, knowledge sharing (KS) has an insignificant effect on the relationship between SA and PD. The result of Study 3 reveals that there is a positive impact of IN, sustainability (SU) and environmental factors (EF) on OP. This study provides a critical and practical contribution to SA by examining the impact of SA on the organisational performance development processes (IN, PD and OP).

The Mediating Effect of Islamic Marketing Capabilities in The Relationship Between Entrepreneurial Orientation And Firm Performance at Handicraft SMEs In West Java

The purpose of this study is to determine the influence of entrepreneurial orientation and market orientation on Islamic marketing capabilities and their impact on the performance of SMEs in the handicraft sector in West Java. The population in this study is the managers of leather craft SMEs with a sample of 160 respondents using the purposive sampling method. Data analysis using the help of SmartPLS program. The results showed that entrepreneurial orientation had a significant positive effect on Islamic marketing ability, Islamic marketing ability had a significant positive effect on SME performance, and Islamic marketing ability mediated the influence of entrepreneurial orientation on the performance of SMEs in the leather handicraft sector in West Java. The results of this study recommend to SMEs in the handicraft sector in West Java to continue to improve entrepreneurial orientation to support the improvement of the ability to market their products, so that overall business performance continues to grow.

The mediation role of innovation in the relationship between total quality management and performance of small and medium scale enterprises

PurposeThis study examined the mediation-moderation role of innovation and market dynamism in the association between total quality management (TQM) practices and the performance of small and medium-scale enterprises' (SMEs') performance with empirical evidence from sub-Saharan Africa.Design/methodology/approachUsing a questionnaire, the research model developed was tested with responses from 203 owners and managers of SMEs in Ghana. The analyses were done using Statistical Package for the Social Sciences (SPSS) and Smart Partial Least Squares Structural Equation Modeling (PLS-SEM).FindingsThe innovation initiatives partially and fully mediated the relationship between TQM practices and the performance of SMEs. Also, the indirect effect of TQM practices of SMEs on performance through innovation initiatives was negatively moderated by market dynamism.Practical implicationsThe study contributes to the TQM literature by validating the indirect and direct relationship between TQM practices and performance in the context of SMEs in a developing region.Originality/valueThis paper presents a novel understanding of the relationship between TQM and SMEs in developing regions of the world. The paper serves as a guide for SME owners and managers to improve the performance of their organizations through TQM practices.

Challenges, experiences, and coping behaviors among SMEs in the adventure tourism industry after the COVID-19 pandemic: A case from Pokhara, Nepal

The purpose of this study was to explore the challenges, experiences, and coping strategies among the SMEs involved in the adventure tourism sector in Pokhara, Nepal, after the COVID-19 pandemic. This study used a qualitative approach and conducted in-depth interviews with a total of 30 entrepreneurs and upper-level managers working in adventure tourism SMEs in Pokhara, Nepal. The researchers employed purposive and snowball sampling to select the interviewees. This study highlights the voices of managers working in SMEs involved in Nepal's adventure tourism industry and provides insight into their experiences, challenges, and coping strategies. The findings were used to build a conceptual model of the challenges, experiences, and coping strategies among adventure tourism SMEs operating in Pokhara, Nepal. Moreover, this study describes the experiences and reactions among the CEOs and upper-level managers of SMEs working in the adventure tourism sector. The findings provide important evidence for documenting unprecedented situations such as the COVID-19 pandemic and can be utilized to develop tourism policies and support systems for SMEs in the hospitality and tourism sectors. Managerial implicationsThis study identifies challenges stemming from the adverse economic impacts and explores coping mechanisms at individual and organizational levels after the COVID-19 pandemic in the context of Pokhara, Nepal. SMEs in adventure tourism rely heavily on adventure tourism and did not have enough resilience and recovery strategies. The strategies of identifying resources, increasing capabilities, and enhancing the network and cooperations were identified. It highlights the pivotal role of leadership and collaborative efforts among core stakeholders such as private associations, INGOs, and government sectors. Overall, it offers insights into challenges, crisis management and resilience in the adventure tourism SEMs during the COVID-19 pandemic.

Sustainable Supply Chain Management in SMEs: Analyzing Drivers and Barriers to Green Practices in Nagpur

Sustainable Supply Chain Management in SMEs: Analyzing Drivers and Barriers to Green Practices in Nagpur

Entrepreneurial Characteristics of Entrepreneurs Associated with Quality Management of Smes in the Huaycán Industrial State, Lima

Entrepreneurial Characteristics of Entrepreneurs Associated with Quality Management of Smes in the Huaycán Industrial State, Lima

Impact of Mandatory Audits of Small- and Medium-Sized Enterprises on Their Income Tax Compliance: Evidence from the Egyptian Small- and Medium-Sized Enterprise Stock Market

Small- and medium-sized enterprises are essential to the economies of nearly all countries, as they directly influence the GDP and tax revenue. In 2019, the European Federation of Accountants and Auditors for SMEs surveyed SME account users, revealing that tax authorities were the most common recipients of the company’s accounts, accounting for 61.40% of cases. This study, from a macroeconomic perspective, aims to uncover evidence of the impact of mandatory audits of Egyptian SMEs on their income tax compliance. It also seeks to explore the Egyptian SME tax environment to fill the knowledge gap by exploring perceptions of SMEs’ tax performances and their levels of tax. This study provides evidence that the taxpayers’ tax compliance behavior is an essential and decisive factor in the compliance of Egyptian SMEs with income tax. The results show that SME management is less persuaded by the potential benefits of mandatory audits on tax compliance than auditors and academics. Also, the study found experimental evidence confirming that the mandatory auditing of SMEs positively impacts their compliance with income tax. Additionally, this study developed a tax compliance scale (the RTRP scale) that effectively suits the nature and characteristics of SMEs, enabling the quantitative measurement of their compliance levels with income tax, as well as comparisons between SMEs.

When traditional SME managers encounter cybersecurity: Discourse analysis of opportunities and dilemmas in meeting the demands

Grounded in a socio-technical systems governance framework, we explore the perceptions and strategies of SME managers and cybersecurity providers within the cybersecurity landscape. Addressing the gap in understanding of how cybersecurity governance takes place in the Canadian SME landscape, Interviews were conducted with 35 SME representatives and 11 cybersecurity providers and analyzed using discourse analysis. The results highlight four critical themes in this socio-technical transition: initial conditions, SME business model discourse, cybersecurity provider business model discourse, and transition outcomes. The transition underpins a mode of governance, blending elements of oligopoly and self-regulation, characterized by the dominance of key cybersecurity firms and a more facilitative role of state actors. A novel conceptual model emerges from the study, explicating the transition in SME institutional logics from a traditional ‘legacy logic’ towards an integrated cybersecurity approach. This transition is shaped by the principal-agent disconnect and moderated by SME and cybersecurity provider business model discourses.

The Influence of Ease of use of Information Technology, Information Quality and Top Management Support on SME Performance Through End User Satisfaction: A Study on Semarang City SMEs

This research aims to analyze the influence of ease of use of information technology, information quality and top management support on SME performance through end user satisfaction in SMEs in the city of Semarang. The contribution of this research is as feedback for SME managers or owners in making decisions regarding the importance of digitizing accounting, in this case the accounting information system. This research is quantitative research with an explanatory research approach that is guided by a questionnaire that tests the relationship and influence between research variables. Data analysis was obtained using the SEM approach by analyzing 132 respondents who had used the accounting information system application for at least 1 year. The results reveal that ease of use of information technology, quality of information and top management support have a significant effect on SME performance through end user satisfaction of accounting information.

Critical factors of green supply chain management on SMEs business performance Indonesia

The COVID-19 pandemic has altered lifestyle and sparked a greater interest in GSCM. This study logically contributes to the branch of knowledge by demonstrating how resource-based attributes and integration can improve SME business performance while concurrently facilitating the successful transition from traditional to green supply chains. This study focused on batik SMEs that make their products using natural resources. The goal is to analyze SME performance models that affect GSCM, owner commitment, and supply chain connectivity. The data analyzed were gathered from a total of 163 experienced SME managers in the Special Region of Yogyakarta, Indonesia. PLS-SEM is the data analysis method used. The results validate that SME business performance is positively impacted by OC, SCC, and GSCM. The function of OC and SCC in SME business performance can also be mediated by GSCM.

State of the innovation investment and innovation management in SMES of Kazakhstan

Innovations have recently become one of the indicators of the commercial success of the companies. This phenomenon is taking place due to a rapid development of new technologies and their effect on competition between the companies. The main purpose of the present paper is to investigate the current state of the innovation activity and innovation management among small and medium enterprises of the Republic of Kazakhstan. To achieve the aim of the paper, a qualitative analysis of interviewing 100 SMEs representatives has been conducted. The principal findings indicate of the following commonalities. The level of revenue and the innovation activity were not directly connected for the respondent businesses. The representatives had limited understanding of the innovation types and areas of application. After the briefly educating the respondents, the authors have found significant changes in attitudes towards investing into innovations. The value of the present paper is connected with the practical significance of increasing the innovational activity of the SMEs of Kazakhstan. Moreover, the study can be replicated for other developing Central Asian countries to find out whether the phenomenon is connected with regional features. As for the practical implications, the paper can be used to develop governmental and private educational programs as a part of supporting the SME activity or a part of vocational training.

The impact of organizational learning on Polish and Finnish SME’s market performance during the COVID-19 pandemic. A comparative study

Abstract This article focuses on the role of small and medium-sized enterprises’ (SMEs) organizational learning (OL), measured by a scale of commitment to learning, and their economic performance during the COVID-19 pandemic. The research is based on two samples of firms from Poland and Finland. Interviews with owners and managers of Polish and Finnish SMEs were conducted in December 2020 and January 2021. The results show that OL was quite high among the analyzed firms, with the exception of Polish non-exporters. Unlike the “pre-COVID-19” sample of Polish SMEs, the results of the two “COVID-19” samples showed no significant relationship between the applied measure of OL and firms’ market performance. The analyses indicate a significant impact of COVID-19-related disruptions on market performance measures for both Polish and Finnish enterprises. Thus, we conclude that firms’ turnover and profits have been affected by turbulences on particular markets and firms’ ability to benefit from various assistance programs offered by governments.

The Impact of Stagflation on Small and Medium –Sized Enterprise Performance in Champasak Province, LAO PDR

This study investigates the impact of stagflation on SME performance in Champasack Province, Lao PDR. Utilizing data from 450 SME’s owners, acquired via structured questionnaires, the research employed the structural equation modeling technique for data analysis. The result showed that stagflation have positive impact and significant on marketing management capability, Consumers, and SME performance. According to Marketig management capability has a positive impact and significant on Consumers, but its negative impact and significant on SME performances, and Consumers has a positive impact and significant on SME performances. The insights derived from this research provide essential directives for SME managers striving to business survival in economic uncertenty. Therefore, Medium-sized and small-sized enterprises in ten districts of Champasack Province, Lao PDR, need to effectively develop their marketing management capability to stimulate consumer spending during periods of stagflation. This will lead to a continuous improvement in SME performance and high business survival during the period of stagflation.

The Determinants of SMEs Intention to Adopt Sharia Crowdfunding for Financing Solutions

<p><em>This study aims to identify the variables that influence SMEs' decisions to use sharia crowdfunding in Indonesia as a source of funding. This research focuses on SMEs in Indonesia, which are rarely investigated in the existing literature on sharia crowdfunding. In addition, this study applies the technology acceptance model (TAM), which has not been widely used to identify factors that encourage the adoption of sharia crowdfunding. This study also employs non-probability sampling techniques in conjunction with a quantitative methodology. The data in this study were obtained through a questionnaire survey of 293 respondents obtained from SME owners and managers. The data analysis was conducted using PLS-SEM, while data processing was executed using SmartPLS 3.0. This research assists the government in designing programs and policies to encourage the expansion of SMEs in Indonesia through funding solutions with sharia crowdfunding. Therefore, SMEs have no difficulty in securing funding for their business.</em></p>

Driving Success: Unveiling the Synergy of E-Marketing, Sustainability, and Technology Orientation in Online SME

In Romania, the pandemic and post-pandemic effects, coupled with the nearly 80% increase in internet service penetration, have led to an extraordinary acceleration of e-commerce activity. Rising rents and operational costs, heightened financial challenges, and the improved quality and accessibility of internet connectivity have prompted some Romanian SMEs to sell their products and services online or through other online communication networks. In this context, it becomes essential to conduct marketing research to identify factors that could stimulate business performance. The purpose of this study is to assess the impact of e-marketing orientation, sustainability orientation, and technology orientation on the performance of online SMEs in Romania. Hypothesis testing and validation of the proposed construct model were conducted using structural equation modeling with partial least squares (SEM-PLS) and multi-group analysis (PLS-MGA). The research results have indicated that all three independent variables have positive and significant effects on online SMEs’ business performance. Finally, the study suggests that SME managers should focus on integrating these three variables and on selling products and services both nationally and internationally through the internet if they aim for long-term business performance growth.