Small And Medium Enterprises Managers Research Articles

Organizational Practices’ Role in Managing Open Innovation and Business Performance

Given the ever-changing world of technological advances, and due to the fact that business entities strive for efficiency and cost reduction, open innovation (OI) has become the focus of academic and scholarly discussions. Furthermore, to increase their competitiveness, small and medium enterprises (SMEs) have started implementing OI practices. This study aims to investigate the impact of SMEs’ internal organizational practices on OI and the impact of the latter on SMEs’ business performance. This quantitative study, which was based on gathering insights from SMEs, sought to answer two research questions related to the effects of organizational practices on the adoption and management of OI processes in SMEs and the role of OI in accelerating the business performance of SMEs. The findings revealed that not all SMEs’ internal organizational practices have a positive impact on both OI and SMEs’ business performance. This study is among the earliest studies in the UAE and GCC region to explore the impact of specific internal organizational practices on SME OI adoption and its business performance. The present study contributes theoretically and practically to OI literature and assists SME managers in evaluating their internal organizational practices’ suitability for OI adoption.

Sustainability in small and medium enterprises: A circular economy approach using cloud computing

AbstractSustainable production and consumption are the need of the hour. Adopting the Circular Economy (CE) approach fosters sustainable business practices. Cloud computing is a new way of storage and application deployment. Cloud computing enables sustainable business processes, which in turn contributes towards the effective implementation of the Circular Approach to Business Practices (CABP). The current study aims to understand the potential of cloud computing to foster circular economy practices in Small and Medium Enterprises (SMEs). We conducted a Systematic review of 186 scholarly articles published in Web of Science (WOS), selected using the PRISMA framework. We conducted scientometric analysis on sources, authors and country level and thematic analysis to pinpoint further research areas. This was followed by a detailed literature review of the articles selected to study the concept and current practices of circular economy and an evaluation of its implementation in emerging economies. The paper proposes an integrated framework grounded in two approaches, that is, the Technology, Organization and Environment (TOE) framework and institutional isomorphism as determinants of cloud adoption and CE implementation. The proposed model explores the impact of institutional forces on the various parameters of TOE, thereby culminating in the adoption of Cloud Computing in SMEs. The study would encourage leaders and managers of SMEs to adopt cloud computing for competitive advantage and achieve a circular economy approach together. The adoption of cloud‐based applications has a great potential to foster industrial and economic progress with minimum damage to the ecosystem, furthering sustainability and achieving Sustainable Development Goals (SDGs).

Green supply chain management practices and triple bottom line performance: Insights from an emerging economy with a mediating and moderating model

The current study explores the dynamics of business practices in Pakistan's Small and Medium Enterprises (SMEs). This research focusing on how “green supply chain management” (GSCM), Industry 4.0 technologies (IND), total quality management (TQM) and sustainable performance (SP) are interconnected. The study collected data from 382 SMEs owners and managers and data analysis was conducted utilizing by SPSS and SmartPLS. The results indicate that employ GSCM pattern has constructive impact on SMEs overall performance in terms of their social and financial aspects. Interestingly IND act as intermediaries among GSCM and sustainable performance underscoring their potential to translate sustainability efforts into outcomes. Moreover, our survey reveals that TQM have a crucial function in enriching the relationship between Industry 4.0 technologies and sustainable performance by executing as a moderator. It further highlighting the value of adopting a quality focused approach to maximize the causal factor of advancements on sustainability output. The findings of this survey research offering insights for practitioners, SMEs, and policy makers alike by highlighting the significance of integrating practices such as GSCM, IND and effective quality management to enhance SME efficiency. These outcomes further contribute to an understanding of the mechanics at play, within SMEs while offering guidance for organizations maneuvering the changing landscape of sustainable business practices and IND.

Determinants of Cross-border E-Commerce Usage Based on TOE Framework of SMEs in Hebei Province

A comprehensive model has been developed to evaluate the usage and outcomes of cross-border e-commerce (CBEC) at firm level. The model is built on the TOE framework, and we have focused on the post-adoption phase, which involves the actual usage of e-commerce and its potential to generate value, rather than just the adoption aspect that is typically the focus of previous literature. The aim of this research is to investigate determinants of e-commerce usage among small and medium enterprises (SMEs) in Hebei Province. The main focus is to conduct preliminary analysis and reliability and validity testing on data of the pilot study. This is necessary to receive valuable feedback from the participants and ensure the final survey's reliability and validity. A pilot survey is conducted in SMEs of Hebei Province using purposive sampling to analyse reliability and validity. In the pilot study, we conducted a survey of 50 SMEs in Hebei Province, and the reliability and validity of our findings were confirmed, and the result provided a context to undertake the analysis of data. The research provides SME employees, managers, governments, and researchers in Hebei Province with a reference for formulating strategies that suit the business model of CBEC SMEs in the province and helps firms make good use of e-commerce to increase international competitiveness.

Tacit Knowledge Sharing as a Catalyst for Innovation Capability in Small and Medium Enterprises (SMEs) in the Malaysian Furniture Industry

In the shift to a knowledge-based economy, SMEs in the Malaysian furniture industry need to improve their innovation capability to meet the dynamic challenges and opportunities of the information age and secure a competitive advantage. Empirical research shows that a variety of factors play a crucial role in determining the innovation capabilities of the firm. The aim of this conceptual paper is to investigate how tacit knowledge sharing influences the innovation performance of SMEs in the Malaysian furniture industry, and to examine the mediating role of innovation capability at both individual and organizational levels. The conceptual framework was constructed after synthesizing the existing literature and highlights the essential role of tacit practices such as knowledge donation and collection are critical in cultivating a culture of knowledge sharing that significantly influences innovation performance at both individual and organizational levels. The paper hypothesizes that innovation capability could serve as a mediator between tacit knowledge sharing and innovation performance, emphasizing the need for SME owners and managers to prioritize tacit knowledge to achieve better innovation outcomes. The conceptual framework is grounded in Resources-Based View theory, which elucidates the interactions between variables. The theoretical and practical implications of this model are also discussed.

The Role of market development strategy on the performance of manufacturing small and medium enterprise owners in southwest Nigeria

The manufacturing sector's performance is crucial to the development of an economy. The ability of small and medium enterprises (SMEs) to plan their growth strategy is instrumental to attain high performance. The fundamental concept used in this study is the Ansoff matrix model.  Hence, this study examined the role of market development in the performance of SMEs. 384 copies of questionnaires were distributed among the manufacturing SME owners and managers in Southwest Nigeria of which 361 copies were retrieved and analyzed. Structural Equation Modelling (SEM) was used for the analysis.  The results indicated that market development has a significant effect on SME’s performance. The path coefficients of   0.81, 0.76, 0.80 and 0.85 revealed a large degree of relationship between market development and customer satisfaction, market share, profitability and service quality respectively. According to the statistical analysis, market development has a high predictability for service quality (73.5%) followed by profitability (65.3%), market share (58.7%), customer satisfaction (65.8%) and profitability (65.3%). The implications are that when SME owners enter a new market apart from their existing market and can attract more customers to serve, it will in turn increase the satisfaction of their customers and improve their perceived quality leading to an increase in financial returns as well as an increase in the portion of the market that they control. This study recommends that the management of manufacturing SMEs should venture into new geographical areas with the appropriate development of new market segments and the creation of new distribution channels.

Uptake of Internet of Things by SMEs in digital era in emerging economies: A systematic literature review

This paper aims to establish the uptake of Internet of Things (IoT) by small and medium enterprises (SMEs) in the digital era in emerging economies. This study aims to 1) determine adoption of IoT by SMEs during digital era in emerging economies, 2) establish challenges faced by SMEs in implementing IoT in emerging economies, and 3) develop a framework for digital transformation for SMEs in digital era in emerging economies. Systematic literature review approach was used. Articles from Scopus database ranging from 2018 to 2023 was used. 57 articles were shortlisted out of 153 articles. PRISMA framework was therefore used to perform systematic review analysis. Results demonstrate that in emerging economies, SMEs do not or are slowly adopting IoT concepts, making them less competitive. The results also determine that although IoT has great promise in SMEs, the key constraint is a lack of strategic implementation frameworks for its deployment and widespread adoption. This study was therefore carried out to develop a framework that supports digital transformation for SMEs in the digital era for emerging economies. Results have significant managerial and practical implications as they offer some insights to SME managers on how they can improve on the uptake and adoption of internet of things in digital era.

The Impact of Business Diagnostics on the Activities of SMEs in Nigeria

In the context of Nigeria, where the average lifespan of businesses is limited to approximately five years, addressing and overcoming challenges has become a critical imperative. This study underscores the pivotal role of business diagnostics in supporting the growth and sustainability of businesses, particularly Small and Medium Enterprises (SMEs), in Nigeria. Specifically, it investigates how SMEs in Nigeria employ diagnostic tools, such as SWOT analysis, to discern their strengths, weaknesses, opportunities, and threats. Utilizing a qualitative research methodology, the study employs a structured, open-ended questionnaire as the primary data collection instrument, with a sample of fifteen strategically chosen SMEs participating in a specialized course at a business school. Purposive sampling ensures diversity among the selected SMEs, enriching the depth of the collected data. The structured, open-ended questionnaire allows participants to express their perspectives, facilitating in-depth responses freely. Thematic analysis is applied to identify patterns and insights within the qualitative data, providing nuanced answers to the research questions. The findings underscore that business diagnostics significantly contribute to the effective management and growth of SMEs in Nigeria, illuminating the potential for increased economic development through improved SME performance. Incorporating the results, the study sheds light on the varied experiences and perspectives of SMEs with business diagnostics, offering a rich and contextualized exploration of the subject matter. Meaningful recommendations derived from the study's findings, contribute to the body of knowledge on effective business diagnostics for SMEs in Nigeria.

The role of supply chain management in improving performance of Jordanian small and medium enterprises

Supply chain management practices are always helpful for multinational enterprises in increasing their growth. However, there has always remained an open debate about which practices are helpful for small and medium enterprises (SMEs). Therefore, this study has examined the influence of supply chain management practices on the performance of SMEs. Moreover, it has examined how the moderation of supply chain ecocentricity and innovation capabilities strengthens or weakens the relationship between supply chain management practices and SMEs’ performance. The quantitative study involved 352 SME managers as they can provide the relevant information and possess complete knowledge of management practices. The data were gathered via a questionnaire, and the responses were analyzed using IBM SPSS 28 and IBM AMOS. The results show that SMEs’ performance is linked to supply chain management practices (β = 0.544; P < .001), and this linkage is further strengthened by supply chain ecocentricity (R2 change = 0. 082***, F-Statistics = 47.18) and innovation capabilities (R2 change = 0.061***, F-Statistics = 39.74). SMEs can enhance their performance by efficiently incorporating supply chain management practices and developing innovation capabilities and supply chain ecocentricity. AcknowledgmentsThis study is funded by Al Hussein Bin Talal University, Ma’an, Jordan, No. 125/2023.

Sustaining organisational performance of small and medium enterprises (SMEs) through entrepreneurship

The study examined the effect of entrepreneurship capital on organizational performance of SMEs in South-South, Nigeria. The specific objectives are to: to examine the effect of Social Capital on organisational performance of SME’S in South-South Nigeria; ascertain the effect of loan and grant on organizational Performance of SME’S in South South Nigeria. The descriptive survey research design was used. A sample size of 400 SMEs employees of selected SMEs was used. The study used descriptive statistics, correlation, and multiple regression analyses to analyze the data collected for the study.  Finding showed that Social Capital (β =0.250, p=0.000< 0.05) and Loan and Grant (β =0.224, p=0.000< 0.05) have significant positive effect on organizational performance. It was concluded that entrepreneurship capital has a significant positive effect on organizational performance. It was recommended to achieve organizational performance; management of SMEs should continue to leverage on social capital to positively influence the performance. The study established that customer retention and social interaction is influenced by the level of relationship between entrepreneurship capital and organizational performance.

Modeling the Relationship Between Market Orientation, Learning Orientation, and Performance of Moroccan SMEs: A Structural Equation Approach

In the field of entrepreneurship, Small and Medium Enterprises (SMEs) are highly regarded due to their substantial contributions to growth, development, and innovation. In Morocco, SMEs constitute nearly 97% of the country’s production sector, span various industries, generate 38% of national wealth74% of the workforce, as per the 2021 report from the Moroccan SME Observatory. However, in the face of international trade liberalization, these businesses face intense domestic market competition, impacting their competitiveness and performance. This study explores the significance of ‘market orientation’ and ‘organizational learning orientation’ as crucial managerial practices, enabling SMEs to gain competitive advantages, market differentiation, and higher performance. Utilizing the resource-based view and dynamic capabilities theory, the research investigates how learning orientation transforms market practices into improved organizational performance. The study distributed a questionnaire to 113 Moroccan SME managers and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) method to test hypotheses. The results indicate a positive impact of market orientation on Moroccan SME performance. Additionally, the study uncovers a partial mediating effect of organizational learning orientation in this relationship. These findings suggest that enhancing organizational learning orientation can amplify the benefits of market orientation for Moroccan SMEs, providing valuable insights for strategic decisions aimed at enhancing overall performance.

The impact of digitalization in accounting systems on information quality, cost reduction and decision making: Evidence from SMEs

Accounting systems have experienced significant developments, including sophisticated software applications, automation, big data, data analytics, and so on. The purpose of this study is to examine the effect of digitalization of accounting systems on the quality of accounting information and the effectiveness of management decision making in small and medium enterprises (SMEs) in a developing country, Indonesia. Based on the innovation diffusion theory, the hypothesis states that digitalization of the accounting system can improve accuracy and timeliness, cost reduction, and decision making. Data were obtained from questionnaire surveys to SMEs who had implemented the digitalization of the accounting systems. The results showed that the digitalization of the accounting systems had a positive effect on the accuracy and timeliness of accounting information and cost reduction. Furthermore, these two variables had a positive effect on the effectiveness of SME management decision making.

The impact of risk management on the performance of small medium enterprises amid the crisis: the case of Lebanon

This quantitative research study investigates the impact of risk management practices, particularly risk identification, on the financial performance and resilience of small and medium enterprises (SMEs) amid crisis situations, with a specific focus on the case of Lebanon. The research involves 283 respondents, consisting of SME owners, managers, and key decision-makers, and employs a structured questionnaire for data collection. The primary objectives of this research are to assess the extent to which SMEs in Lebanon implement risk management practices, examine the relationship between risk identification and financial performance, and determine the role of risk management in enhancing financial resilience during times of crisis. The study acknowledges the unique challenges faced by SMEs in Lebanon, given the recent economic and political crises that have significantly impacted the business environment. The research strategy includes the use of descriptive statistics, correlation analysis, multiple regression analysis, and hypothesis testing to analyze the collected data. Preliminary findings reveal the prevalence of risk management practices among Lebanese SMEs, with risk identification being a crucial component. The analysis aims to elucidate whether robust risk identification processes positively correlate with financial resilience and improved financial performance. The outcomes of this study have significant implications for SMEs in Lebanon, providing insights into the importance of effective risk management as a means to enhance financial resilience during crises. The results will assist SME owners and managers in making informed decisions regarding risk management strategies. Furthermore, policymakers and stakeholders will gain valuable insights into the role they can play in supporting SMEs in building financial resilience in challenging economic environments.

The impact of digital transformation on big data analytics and firm’s sustainability performance in a post-pandemic era

BACKGROUND: COVID-19 caused an exogenous shock to global economies, businesses and people. However, digitalization is also helping many companies adapt and overcome the reality of COVID-19. The fact that people and companies are increasingly using technology in their daily lives to deal with this extraordinary situation demonstrates the acceleration of the digitalization process. OBJECTIVE: The aim of this research is to examine the mediating role of Big Data Analytics (BDA) in the relationship between digital transformation (DT) and economic, environmental and social sustainability performance. METHODS: For data analysis and hypothesis testing, partial least squares structural equation modeling (PLS-SEM) was used on 304 managers level employees in small and medium enterprises (SMEs) in Mozambique. RESULTS: The findings show that DT positively affects BDA in Mozambican SMEs. Furthermore, BDA positively impacts economic and environmental performance. In addition, BDA has a significant mediating role in the association between DT and economic and environmental performance. However, this relationship is insignificant regarding social performance. CONCLUSIONS: These findings have important implications for SMEs managers and policy makers, who can develop a coherent strategy to realize BDA opportunities, reduce costs and provide strategic value to improve firm sustainability performance in a post-pandemic world.

Identifying the drivers of commitment to organizational sustainability in SMEs: the role of entrepreneurial orientation, organization climate and innovative workplace behavior

The adoption of sustainable practices is increasingly becoming important for organisations. Intuitively, such practices necessitate employee’s commitment to strategic goals related to the firm’s sustainable performance. However, research discussing employee commitment to organisational sustainability is mainly skewed towards large corporates, often neglecting the specifics of small and medium enterprises (SMEs). Addressing this gap, the current study’s purpose is to examine the role of entrepreneurial orientation, organisational climate, and innovative workplace behaviour (IWB) on employee’s commitment to sustainability in the SMEs. The current study employs a comparative case-based approach using data collected from eight SMEs in the food processing industry in India. The study’s findings suggest that a firm’s entrepreneurial orientation and organisational climate are prerequisites for promoting and developing IWB among employees, which ultimately translates into their commitment to a firm’s sustainable performance. The research findings have implications for SME managers, operations managers, and business improvement specialists in the food processing industry.

Entrepreneurial Orientation Impact on the Innovation Ambidexterity: Evidence from the Industrial-Based Sector

Entrepreneurship, in many low-developed economies, plays an important role in defeating external distress. It is crucial in such situation that entrepreneurial firms resist and even grow. The purpose of this paper is to investigate how entrepreneurial orientation brings about organisational ambidexterity through the mediation role of intellectual capital in the context of a developing country. This paper reports research results combining a qualitative and quantitative evaluation. The exploratory study is based on qualitative case studies and in-depth interview data collected from 15 Tunisian small and medium enterprises (SMEs) in the industrial sector. Then, the methodology included a survey of 155 SMEs using a questionnaire and structural equation modelling analyses. The results reveal that SMEs leverage internal and external resources to pursue ambidexterity separately or simultaneously. The data were gathered from a sole informant from every firm. Consequently, more in-depth longitudinal study may be requisite to expand deeper insights into the used variables. SME managers need to focus on the specific barriers to ambidexterity and design effective mechanisms to advance the drivers of ambidexterity. The mechanisms to realize ambidexterity as branded in this study will assist SMEs in particular, and firms in general. A new shape of organisation is an open design allowing more outer acquaintance and resources to be riveted, which is claimed as a novel model for organisation. This study combined the concepts of entrepreneurial orientation and intellectual capital as the basis of innovation ambidexterity. Human, organisational and relational capitals are the intermediate mechanisms to explain the effect of entrepreneurial orientation. Moreover, the Tunisian specific context adds more novelty to this study.

ANALISA PENGARUH KINERJA LINGKUNGAN TERHADAP KINERJA PASAR: PERSPEKTIF UKM DI PONTIANAK

Environmental issues such as climate change have made it impossible for companies to focus solely on financial performance without considering their ecological impacts. Government regulations and stakeholder demands require companies to manage and minimize the environmental impacts of their operations. Environmental performance refers to a company's ability to reduce pollution, waste, and the use of hazardous materials through proper environmental management practices. This study aims to analyze the influence of environmental performance on the market performance of Small and Medium Enterprises (SMEs) in Pontianak, Indonesia. A quantitative survey was conducted involving 56 SMEs. Data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that environmental performance has a positive and significant influence on market performance, with an R-square value of 0.886. This implies that enhancing environmental management practices can improve SME market outcomes in Pontianak. The findings provide guidance for SME managers on developing green strategies to meet organizational goals and stakeholder expectations as well as achieve environmental sustainability.
  Key word: Environmental Performance, Market Performance, SME’s

How social capital affects innovation, marketing and entrepreneurial orientation: the case of SMEs in Ho Chi Minh (Vietnam)

Social capital, embedded in the networking relationship, is critical for firm performance. SMEs, especially in emerging economies, should effectively use their limited resource and network relationships to deal with increased uncertainties in the business environment. Accordingly, this paper investigates the effect of social capital on innovation, marketing communication expenditure, and entrepreneurial orientation (EO). The research employs a binary logistic model based on data collected from a survey of 645 small and medium enterprises (SMEs) in Vietnam. The survey focused on SMEs in Ho Chi Minh City, which is the biggest city in Vietnam and accounts for one-third of the country’s gross domestic product. The research found significant evidence of the benefits of social capital on innovation, marketing communication expenditure, and EO. Specifically, we found significant relationships between personal network and marketing communication expenditure, between a business network with innovation and EO, and between network range and marketing communication expenditure. This research has important implications for managers and government agents. SMEs managers should effectively use what they receive from network relationships to improve the performance of firms. The findings clarify the characteristics of networks constituting social capital. Moreover, we respond to the call for more empirical study in the emerging economy.

Effect of Globalization on Management of Small and Medium Enterprises: A Case of Some Selected SMEs in Ghana

The effect of globalization on small and medium enterprises (SMEs) has received a lot of attention in international circles in the past few years. One of the reasons for the international focus on SMEs is that these firms make significant contributions to the economies of both developing and developed countries. The theories reviewed were: how globalization affects SMEs positively and negatively and the importance of globalization. The specific objectives of this study were: 
 
 To determine the effect of globalization on small and medium enterprises. 
 To determine the benefit of globalization on the management of SMEs. 
 To access the factors that hinder SMEs' global integration. 
 To identify the barriers to the success of SMEs. 
 
 A descriptive survey design was used. The target population of the study was fifty (50) respondents of the managers and owners of SMEs.
 This study was carried out using interviews and questionnaires. The results show that the effect of globalization on SMEs has made their resources more efficient and effective, creating many investment opportunities, operating globally, and having more global competition. It was found that the benefit also helps the SMEs management upgrade and adapt to new strategies and always find innovative ways of promoting the firm's market. It was found that key challenges include: High competition in the market, especially big/ foreign organizations, and small businesses are still hindered by the lack of technological implementation, lack of managerial experience, capacity and lack of knowledge about the market. Further, it was found that there is also a barrier to the success of SMEs that lack government support, experience with foreign markets, and information about the markets. High cost has made a lot of entrepreneurs not to enter the big market with high growth.  

THE MEDIATING AND MODERATING EFFECT ON SMES' PERFORMANCE: DOES RELIGIOSITY MATTER?

Small and medium enterprises (SMEs) are entities managed and controlled by the owners. The performance of the owners strongly reflects the business performance of the SMEs. That is also the way of looking into the study aiming at analyzing the performance of SMEs from an Islamic perspective, which can be viewed from the owners' religiosity and financial behaviour. This framework is still rarely found in shari'a economics literature. This also involves further consideration of the need for Islamic values on the performance of small businesses in countries with Muslim-majority. Using a survey research design, 238 small business owners and managers participated in responding to a self-registered questionnaire research instrument. Using PLS-SEM, the research instrument has been tested for its validity and reliability and the variable's influence. The result proves that religiosity does not directly affect the performance of SMEs but indirectly influences the performance through financial behaviour. It means that religiosity forms good financial behaviour, and then the financial behaviour increases business performance. This study also finds that gender moderates the effect of religiosity on the behaviour of SME owners or managers. Furthermore, business age reduces the effect of financial behaviour on performance. The results of this study warn that old businesses should not make SMEs owners feel comfortable and resistant to change unless they fail to gain good business performance.