Medium-sized Firms Research Articles

University-to-industry knowledge transfers and firms’ resilience during the great recession: evidence for Spanish firms

ABSTRACT This study examines the relationship between university-to-industry knowledge transfers and firm performance during economic downturns. Using a sample of Spanish manufacturing firms, we evaluate the performance of firms that collaborated with or acquired R&D from universities prior to the Great Recession, focusing on real sales growth relative to their peers. We find that firms that received knowledge transfers from universities outperformed their peers during the ecession, especially in the most affected sectors (as measured by export growth). Notably, the greater resilience associated with these partnerships appears to be limited to small and medium-sized firms. In addition, product differentiation and expansion into new markets appear to be potential mechanisms associated with the greater resilience of firms involved in university knowledge transfers. This is consistent with a shift in their innovation strategy towards exploration during recessions.

Factors affecting artificial intelligence (AI) adoption in the talent acquisition process: the case of Vietnam’s medium-sized firms

Factors affecting artificial intelligence (AI) adoption in the talent acquisition process: the case of Vietnam’s medium-sized firms

Firm size and enterprise productivity in Nigeria: Evidence from firm-level data

Anchored on the economies of scale of production theory, this study utilized Nigeria’s firm-level enterprise survey data of the World Bank collected through stratified random sampling of 2 676 firms and face-to-face interviews with the application of the multinomial logit model to examine how enterprise productivity influences the size of firms in Nigeria. It was found that raising enterprise productivity relates to about 0.0009261 insignificant fall in the relative log odds of running micro-sized firms, about 0.010299 significant rise in relative log odds of having medium-sized firms, and about 0.0201428 significant encouragement in relative log odds of running large-sized enterprises/firms when related with small-sized enterprises/firms. It is recommended that governments at all levels (state, federal, and local), should encourage micro-sized firms in a bid to make them increase their productivity level. This encouragement can come in the form of providing increased access to credit, the provision of raw material inputs, and constant electricity supplies. The original contribution of this research work is hinged on its empirical contribution in the study area since there is dearth of literature in the study area as no study has looked at firm size and enterprise productivity in Nigeria using evidence from firm-level data.

SMEs’ dependency on large corporations’ technology for sustainability in the United States

Introduction/Background: This study discusses how small and medium-sized firms (SMEs) depend on major corporations for key technology resources that support sustainability initiatives. While SMEs contribute considerably to economic development and innovation, they typically rely on bigger enterprises for access to new technology and market possibilities. This partnership gives SMEs benefits like greater operational efficiency and global market access but also creates obstacles such as budgetary limits and technical reliance. The essay explores techniques for SMEs to effectively exploit new technologies, balancing partnership with larger firms while retaining their autonomy and competitiveness in a quickly shifting business climate focused on sustainability. Materials and Methods: The materials used for this study were sourced from different databases which include scholarly journal articles, reports, and government gazette and policy papers in the areas of business, small and medium scale enterprises, entrepreneurship, management and economics. The inclusive criteria ensured that only those articles that investigated the merits and demerits of SMEs dependence on large corporation were utilised. The review of literature was conducted on 50 documents published between 2009 and 2024. Results: The findings as revealed from the reviewed literature revealed the different merits and demerits of SMEs dependence on large corporation. Case studies of Tesla, Microsoft, Walmart, and Amazon demonstrate the intricate reliance of SMEs on major firms in the United States. Tesla's reliance on SMEs for crucial components like batteries underlines the reciprocal advantages and dangers involved, since SMEs' stability rests on Tesla's performance. Microsoft helps SMEs through initiatives that stimulate innovation and technology adoption, boosting their capabilities. Walmart gives SMEs with access to huge distribution networks, enabling sales growth. Similarly, Amazon's platform gives SMEs tremendous market reach but also brings issues in competitiveness and price. Together, these instances show the potential and challenges SMEs confront in their relationships with bigger enterprises. Discussion: Encouraging supplier growth and enhancing supply chain resilience are vital for establishing a sustainable SME environment. Policymakers may promote SMEs through mentorship programs, financial aid, and tax incentives for partnership with large enterprises. Addressing financial impediments with targeted funding and boosting skills development through collaborations with educational institutions would help SMEs embrace new technology. Additionally, establishing technology-sharing activities and developing a legal framework that supports fair competition are vital. Fostering innovation among SMEs and supporting sustainable practices will eventually boost their competitiveness and contribute to broader economic and environmental goals, benefitting both SMEs and bigger organizations. Conclusion: The reliance of SMEs on big corporations provides noteworthy hurdles and possibilities that require for the adoption of effective government involvement. Through the elimination of financial obstacles, the upgrading of technical skills, the promotion of fair competition, and the encouragement of innovation and sustainability, governments may build a fair climate that enables SMEs to prosper alongside bigger firms. This approach not only allows SMEs access to resources and contemporary technology, but it also stimulates economic variety and creativity, which in turn contributes to continuous development and competitiveness in a dynamic market.

Unlocking HR’s Hidden Treasure on Innovation Capability: The Mediating Role of Knowledge Management Capacity

Effective innovation is possible when one can innovate. Malaysia has serious problems due to a lack of R&D and innovation skills. Furthermore, small and medium-sized firms (SMEs) in developing nations have received less attention in past research on Malaysian innovation. A quantitative strategy is employed to meet the study's goals. A survey approach is used to collect data from the owners, chief executives, and management of ICT SMEs. The research collected and analyzed a total of 200 respondents. The research models and hypotheses were assessed using the Partial Least Squares (PLS) technique. This research comprises the difference between Innovative Centric Human Resource Management (ICHRM) (Acquisition; Development; Egalitarian; Collaborative; Documentation, Information System) and Innovation Capability (Radical; Incremental), also the relationship between ICHRM and Innovation Capability, using Knowledge Management Capacity as a mediator. Based on the findings of this study, the majority of HRM practices are suitable for SMEs' incremental innovation capabilities. This study also presents empirical evidence of the impact of ICHRM on knowledge management capacity on innovation, focusing on the impact of each dimension in ICHRM components that were linked to organizational processes, with a focus on the influence on incremental and radical innovation.

Firms financial strength during crisis periods: does “familiness” matter?

PurposeIn this paper we propose to study the differences among family and non-family-firms in relation to its financial strength, and therefore its potential position to resist in front of financial crisis and receive financial support or conditions by public or private institutions.Design/methodology/approachWe used multiple hierarchical regressions on a sample of 137 Spanish medium-sized firms (SMEs).FindingsWe observe that the perspectives and idiosyncratic characteristics of family-firms (strongly influenced by their socioemotional wealth) will affect the way these companies invest and operate in the market, which would be more related to efficiency because of their higher willingness to continue the legacy of the business and their weak risk-bearing attributes.Research limitations/implicationsOur study adopts a measure of familiness with a dummy variable, and not as a continuous variable as proposed by recent research. Therefore, our results although relevant and significant for the family firm literature, must be viewed carefully. Additional research could also retest some prior studies to depict differences caused by “real” family firm involvement.Practical implicationsUnder a non-munificent environment, the financial strength maintained by firms will be highly relevant since this context could likely stress and influence their immediate future and viability, overcoming and blurring any other characteristic present in the firm or its managers.Originality/valueThis paper contributes to the family firm literature by offering insights into the nuanced dynamics between family and non-family firms during economic downturns, specifically examining their financial strength when different strategic options are pursued and when firms are managed by different type of managers.

Firm-Level Digitalization for Sustainability Performance: Evidence from Ningbo City of China

Climate change is a significant and urgent threat, gaining traction in the scientific community around the globe and requiring immediate action across many sectors. In this context, the digital economy could provide a mutually beneficial solution by utilizing innovation and technical breakthroughs to establish a sustainable future that addresses environmental deterioration, promotes economic growth, and encourages energy conservation. Against this background, this study examined the diffusion of innovation modeling-based factors affecting small and medium-sized firms’ (SMFs) adoption of the Internet of Things (IoT) technology and its impact on SMFs’ sustainability performance related to environmental, economic, innovation, and energy conservation perspectives. The key findings revealed that (i) the relative advantage, trialability, and observability drive IoT adoption. However, compatibility and complexity hinder IoT adoption. (ii) When prioritizing the adoption factors, the relative benefit is the strongest driver, and compatibility is the most significant barrier to IoT adoption. (iii) IoT technology adopter SMFs spent less on natural resources and more on renewable energy and environmental monitoring systems than non-adopter firms, boosting their environmental sustainability. (iv) IoT technology adopter firms had greater revenue, profits, and credit access than non-adopters and lower input costs, improving their economic sustainability. (v) IoT adopter firms spent more on innovative products than non-adopter enterprises, demonstrating innovation performance. (vi) Compared to non-adopter firms, IoT technology adopter SMFs had lower utility expenses and spent more on energy-efficient technologies. (vii) To realize the full potential of the IoT for a more sustainable and inventive future, authorities may pursue a variety of policy actions involving the strengthening and implementation of IoT technology standards and regulations, securing the incentivization of financial resources to SMFs, diverting the allocation of resources to research and development avenues, prioritizing the capacity development and environmental awareness, and focusing on IoT infrastructure development.

Indonesian SMES and Global Market Penetration: The Effects of Human Capital Investment, Government Role, and Technological Progress

MSMEs play a significant role in supporting the country's economy as they account for 60.5% of GDP. MSMEs confront a number of difficulties related to financing, supply, and market demand that need to be given more consideration in order to support their entry into the global market. The purpose of this study is to examine how government involvement, technology advancement, human capital investment, and entrepreneurial orientation affect MSMEs (micro, small, and medium-sized firms) in Indonesia and their internationalization strategies. This study uses a quantitative approach with data collection techniques using a Likert scale questionnaire. Then descriptive analysis and Partial Least Squares (PLS) are used to analyze the data. The study's findings show that technical change significantly affects MSMEs' internationalization strategies; in contrast, entrepreneurial orientation, investments in human capital, and the role of the government are not as significant in this regard. However, this research offers stakeholders improved guidance for bolstering MSMEs' success and expansion in global markets, as well as for widening the gap in the global MSME market to promote Indonesia's sustainable economic growth.

Performance of Small and Medium Sized Enterprises: Insights from Social Media Usage in Juba City, South Sudan

Small and Medium Enterprises are the main forces behind economic growth, social progress, and job creation in South Sudan. Business and customers benefit from using social platform on increasing their daily business operations. However, enterprises in South Sudan are performing poorly since there was a reduction in businesses output from 58% in 2017 to 30% in 2021. Thus, the study looked into how social media usage affected the performance of small and medium-sized businesses in Juba City, South Sudan. The specific objectives were to assess how small and medium-sized firms' performance was affected by their use of social media for marketing, customer relations, social media interactions, and information search. The study also examined the moderating effect of government regulations on the relationship between social media usage and the performance of small and medium-sized enterprises. The study was anchored on Resource- Based View, media richness theory and regulatory capture theory. The study employed an explanatory research design and target population was 252 small and medium-sized enterprises in Juba City; 154 firms were selected using simple random sampling. Structured questionnaire was employed to collect data. Data was analyzed using descriptive and inferential statistics. The study found that the performance was positively and significantly affected by the use of social media for information search, social media interactions, social media usage and customer relations, and social media marketing. The study also established that social media usage and firm performance were affected by government regulations. The study concluded that social media usage contributes significantly to enhanced performance of small and medium enterprises. The researcher recommends that small and medium enterprises management should ensure they integrate the social media applications in their management systems. The researcher also recommends that in order to improve their performance on social media, small and medium enterprises identify their areas of strength and weakness. The management should employ modem technology in order to gain from data transfer, emailing, and texting while implementing a social media workforce. The government of South Sudan should ensure that suitable information technology training is offered to small and medium enterprises’ owners for the adoption of social media and other technological innovations.

Corporate social responsibility: A Driver for green organizational climate and workplace pro-environmental behavior

In line with the United Nation's sustainable development goals (SDGs), the unsustainable use of scarce natural resources and worldwide environmental degradation call for the immediate implementation of green behaviors across all organizations. As environmental issues originate from human activities, they necessitate the realization and execution of employees' workplace pro-environmental behaviors (WPEB) and their stimulators. Drawing on social exchange and social identity theories, this study first investigates the mediating role of green organizational climate in the relationship between various forms of perceived corporate social responsibility (CSR) and employees' WPEB. It further examines the mediated moderation via green shared vision. An adapted survey questionnaire was distributed to senior-level and middle-level managers of large and medium-sized manufacturing firms in Pakistan, and 349 responses were gathered. The partial least-squares technique was used for data analysis. The findings indicate that all forms of perceived CSR positively correlate with a green organizational climate, which further significantly leads to employees' WPEB. The results also show that a strong shared green vision among employees can improve the relationship between the green organizational climate and employees' WPEB and vice versa. Moreover, multi-group analysis shows that the relationship between customer-centric perceived CSR and green organizational climate was stronger for medium-sized firms than large ones. Thus, to ensure the implementation of SDGs such as decent work and climate action, firms' top management must recognize the importance of investing in both internal and external CSR initiatives to foster a green organizational climate leading to employees' WPEB. Companies should communicate their participation in CSR activities to all stakeholders through public platforms to increase inspiration. Policymakers should further introduce CSR excellence awards and non-compliance penalties to encourage firms' extensive participation.

Determinants of Occupational Health and Safety Compliance by Malaysian SMEs

Occupational safety and health (OSH) are a critical component of effective business governance. Efficient management of occupational safety and health fosters potential for growth and sustainability, and conversely. Disregarding occupational safety and health negatively impacts all stakeholders, from individual workers to national healthcare systems. This indicates that stakeholders can benefit from enhanced OSH compliance via consistent approaches. The primary principle of global OSH compliance is the mitigation and reduction of accidents, incidents, and diseases. A comparable viewpoint is relevant for small and medium-sized firms (SMEs), including those in Malaysia. This study investigated the factors influencing OSH compliance among Malaysian SMEs using a quantitative research methodology. The impact of five critical determinants: top management support, human resource practices, training and education, organisational attitude, and organisational awareness, on the attainment of OSH compliance was evaluated, drawing from literature support. A survey was done utilising convenience sampling with 400 SMEs in Malaysia. Data was gathered from 380 responding SMEs and examined using structural equation modelling (SEM) with partial least squares (PLS). The statistical findings indicated that human resource practices, organisational attitudes, and organisational awareness were key predictors of occupational safety and health compliance in the sampled Malaysian SMEs. The significance of administering OSH focused human resource policy, particularly the HR practice of endorsing safety and related training programs, has facilitated enhanced support for OSH training programs and employee awareness. The findings indicated that SMEs’ practice of displaying hazardous warning signs and promoting incident reporting has resulted in improved occupational safety and health compliance. The level of SMEs’ awareness regarding the necessity to review standard operating procedures before initiating work, safety information related to hazardous materials, understanding the risks associated with chemical substances, and the segregation of waste materials prior to disposal has facilitated effective OSH compliance among the participating SMEs. The investigation yielded multiple implications derived from the results obtained.

Returns to workplace connectivity: evidence from Brazil

ABSTRACT We empirically investigate the quantitative effect of workplace connectivity on workers’ wages. Connectivity measures a worker’s rank within the workplace’s connection hierarchy, considering the number of co-workers in the same occupation and firm (workplace) and the relative tenure of immediate co-workers. We construct a connectivity index as the ratio of a worker’s tenure-weighted connections to the total number of connections in the workplace, using a worker’s job tenure and the connections formed over time to obtain a relative measurement of their connectivity. Using a unique dataset from the Brazilian Annual Social Information Report (RAIS), we estimate the (fixed effect) wage equation, controlling for work and firm heterogeneity. Our results show positive and statistically significant returns to connectivity. The effect is particularly pronounced for workers in administrative services and industrial goods production, those at the bottom of the connectivity distribution, and those in medium-sized firms. We also find that a worker’s connectivity is more relevant for wages than their tenure.

Understanding Financial Constraints: Causes, Effects, and Strategies for Overcoming Economic Limitations

In developing countries like Nigeria, the development and sustainability of people, companies, and economies were greatly impeded by economic and financial limitations. The main causes of these constraints included the limited availability of financial resources, high interest rates, rigorous regulatory regimes, and volatile economic situations. The most severe obstacles were encountered by small and medium-sized firms (SMEs) and marginalised people, who frequently struggle to get the required funds for growth and development. The ramifications of financial limitations were extensive, resulting in less investment, hindered economic expansion, more joblessness, and worsened wealth disparity. These constraints may also sustain societal instability, thereby further eroding economic resilience. Successfully managing financial limitations requires a holistic strategy that addresses both the supply and demand dimensions of money. A crucial aspect of the supply side was enhancing loan accessibility by creating novel financial products and services specifically designed for small and medium-sized enterprises (SMEs) and marginalised groups. Both microfinance organisations and fintech solutions have shown potential for offering alternative financial methods, especially in rural regions. By improving financial literacy, people and companies may make well-informed financial choices and efficiently allocate resources on the demand side. Government actions, such as implementing regulatory changes and stabilising macroeconomic factors, are crucial for establishing a more favourable financial climate. This research aimed to acquire knowledge on the factors, consequences, and approaches for surmounting financial limitations in Nigeria. Therefore, it emphasised the need for customised solutions that took into account the distinct economic, social, and cultural circumstances of the area. By conducting a comprehensive examination of peer-reviewed literature and empirical research, this study identified significant obstacles and suggested practical suggestions to improve financial accessibility, stimulate economic growth, and guarantee sustainable development. The results emphasised the importance of implementing targeted policies and regularly assessing current methods to tackle the changing financial environment in Nigeria. Keywords: Economic limitations, Financial limitations, Developing countries, Sustainability, Small and medium-sized enterprises (SMEs).

Navigating Financial Constraints: Understanding Causes, Effects, and Strategic Solutions across Individual, Corporate and Governmental Sectors

Limitations in financial resources were a widespread obstacle in the interdependent global economy, impacting people, firms, and governments. These limitations were evident in the limited availability of financial resources, high levels of debt, and constricted cash flow, often resulting from an intricate interaction of internal and external elements. This paper offered an extensive investigation of the causes, consequences, and strategic remedies for financial limitations in these three areas. On an individual level, financial constraints were often caused by stagnating salaries, excessive living expenses, and insufficient financial knowledge, resulting in heightened susceptibility to financial shocks. Corporations, especially small and medium-sized firms (SMEs), have financial limitations caused by restricted capital access, increased operating expenses, and market instability, which may impede development and prevent innovation. As a result of fiscal mismanagement, increasing public debt, and economic recessions, governments, particularly in emerging countries, have financial limitations that might hinder their capacity to fund vital services and infrastructure. Financial limitations had extensive consequences, affecting economic stability, growth, and general living standards. Individuals with financial constraints encountered a decline in their quality of life and heightened levels of stress, while firms may endure declining profitability and competitiveness. Governments may be compelled to enforce austerity policies, resulting in enduring socio-economic repercussions. To tackle these difficulties, it was crucial to use customised approaches such as enhancing financial literacy, optimising corporate financial management, and advancing fiscal consolidation and structural changes at the governmental level. The objective of this research was to provide practical insights for improving financial resilience and fostering sustainable economic growth by adopting a comprehensive strategy that took into account the interdependence of financial limitations across different sectors. Keywords: Financial constraints, Global economy, Financial resources, Debt levels, Cash flow.

Ownership concentration and SME IPO underpricing in India – moderating impact of board monitoring and resource provision role

PurposeThe study aims to explore how the monitoring and resource provision function of board of directors impact the association between ownership concentration and small- and medium-sized enterprise (SME) initial public offering (IPO) underpricing in the context of an emerging economy like India.Design/methodology/approachThe sample comprises 390 SME IPOs listed on Bombay Stock Exchange SME platform and National Stock Exchange EMERGE (EMERGE is the NSE new initiative for SMEs to raise the funds from investors) in India. To test the moderating impact of the board monitoring role and resource provision role, the study employs hierarchical moderated regression subject to the fulfillment of assumptions.FindingsThe findings divulge that ownership concentration significantly reduces underpricing, hinting towards the operationalization of alignment of interest hypothesis. With regards to moderating relationship, the study found that while board resource providing role negatively moderates the relationship between ownership concentration and SME IPO underpricing, board monitoring function fails to cast any significant impact on the relationship between ownership concentration and SME IPO underpricing.Research limitations/implicationsThe present study ignores larger firms listed on the main platform which have complex decision-making than smaller firms. Besides, it is confined to only a single country, i.e. India. Extending the study to other countries with similar institutional characteristics would have validated the findings. Furthermore, the moderating impact of other organizational factors like firm age, lifecycle of firm and change in technology would form an interesting avenue for future research.Practical implicationsThe findings of the study have practical implications for managers in designing the adequate board structure that significantly reduces underpricing. It thus further advices the issuers on focusing more on strengthening the resource provision role of board of directors for achieving higher rewards. The findings are helpful to policymakers in framing such policies that enhance the resource-oriented role of board of directors and resource accessibility for SMEs. Furthermore, the results advise the investors to be relatively assured about the SMEs whose board exercises its resource provision role emphatically. Accordingly, findings are helpful to investors in making investment decisions in alternative market settings characterized by the concentrated ownership structure.Originality/valueThe study furthers the debate on the importance of two prominent roles played by board as a moderating variable in the underexplored context of IPO underpricing of small and medium-sized firms in India.

Developing a Dynamic Business Strategy: From Research and Goal Setting to Implementation and Evaluation

A dynamic company plan was essential for retaining competitiveness in today’s continuously shifting corporate climate. This review paper explored the effectiveness of combining continuous research, flexible goal formulation, agile execution, and continuing assessment to provide a strong framework for adjusting to market changes, technological breakthroughs, and competitive challenges. This review conducted a comprehensive evaluation of literature published using data from Scopus and Google Scholar. It employed thematic and meta-analytical methodologies to identify the key elements of dynamic strategy creation. The main discoveries consisted of the significance of using real-time data analytics to make well-informed decisions, the need for flexible goal-setting frameworks, and the advantages of Agile and Lean techniques in carrying out tasks. Furthermore, the implementation of ongoing evaluation and feedback processes was essential for improving tactics and maintaining a competitive edge. The review also highlighted problems such as the integration of real-time data, the establishment of flexible goals, and the promotion of organisational agility. Subsequent investigations prioritised examining the effects of developing technology and dynamic tactics on small and medium-sized firms (SMEs). This examination offered a thorough comprehension of how to manage and flourish in the current dynamic business environment by combining theoretical ideas and practical experiences. Keywords: Dynamic Business Strategy Continuous Research, Flexible Goal Formulation, Agile Execution Ongoing Assessment, Real-Time Data Analytics, Agile Methodologies Lean.

The Moderating Role of Digital Innovation between Digital Leadership, learning and Sustainable Performance among Small and Medium-Sized Firms

This research effort explores the role of digital leadership, learning and innovation in influencing sustainable performance among small and medium enterprises. Digital leadership and learning have been considered as exogenous constructs to predict sustainable performance, and digital innovation is incorporated as a moderator variable to assess the relationships. This study bridges the research gap in explaining the role of digital leadership, which is an untapped research area for explaining sustainable performance. Similarly, digital learning is an essential element in sustainable performance. Further, digital innovation plays an effective and striking role in adopting and implementing technological advancements to achieve organizational goals. The researcher focused on the SME sector of Punjab, Pakistan to investigate the hypothesized relationships between variables. The convenience sampling technique was applied and G*Power was utilized to select the sample. Later, Smart-PLS was utilized for analysis. The results revealed that digital leadership remains insignificant in predicting sustainable performance. Digital learning and digital innovation were significant in influencing sustainable performance. Moreover, digital innovation moderates the relationship between digital learning and sustainable performance, but no moderation effect was observed between digital leadership and sustainable performance. Implications, future research avenues, and limitations of the study are given at the end of this paper.

The Role of Micro, Small and Medium Enterprises (UMKM) in Improving Community Welfare in Sumedang Regency, West Java

Community needs for decent living When fundamental requirements are satisfied—clothing, food, shelter, and health care, for example—the community can be considered prosperous and able to carry out a variety of economic activities. Welfare is also a very basic concept. MSMEs, or MSMEs, or small and medium-sized businesses, can assist with this. This literature study aims to explain the ways in which micro, small, and medium-sized firms, or MSMEs, improve their local communities. The solution to this issue is discussed using a literature study approach. The discussion's conclusions highlight how important micro, small, and medium-sized businesses are to supporting the local economy.. This little, Small and medium-sized businesses have demonstrated their ability to handle a variety of circumstances, including the financial crisis and COVID-19, to the point that their presence has been able to contribute to boosting earnings and well-being in the neighborhood

Unpacking unfair transaction experiences, competition, and imports in technology-intensive SMEs' FDI

In this study we examine how unfair transaction experiences with domestic partners might affect international expansion efforts, as moderated by industry competition and importing network. With survey data from the Annual Survey of Korea Venture Firms (2014–2018), we identify an explanatory role of unfair transaction experiences, together with moderating roles of industry competition and importing network, on FDI, such that small and medium-sized firms that suffer unfair transaction experiences in their home country are more likely to internationalize. Importing network can catalyze this outward investment, whereas industry competition tends to discourage such international expansion, because the firms need to focus on defending their positions at home, more so than expanding their business internationally.

Unveiling success factors for implementing and sustaining circular economy practices in small and medium-sized firms: multi-level perspective

Purpose This study aims to identify and understand critical success factors for implementing and sustaining circular economy (CE) practices in manufacturing small and medium-sized enterprises (SMEs). More precisely, this study examines the complex interplay between micro-, meso- and macro-level success factors that are deemed critical for implementing and sustaining CE practices. Design/methodology/approach The study is based on a two-stage methodology that combines a comprehensive literature review and an interview study with 12 Swedish manufacturing SMEs that implement CE practices. Findings The study identifies and categorizes success factors for implementing and sustaining CE practices in manufacturing SMEs. Based on the findings, a holistic framework is proposed that takes into account multiple perspectives, i.e. at the micro, meso and macro levels. This framework enables a deeper understanding and thus a more nuanced discussion of the complexity inherent in the transition to a CE from the perspective of manufacturing SMEs. Originality/value This study contributes to the growing body of research on CE transition. By focusing on SMEs in particular, the paper adds the needed diversity to the study of CE practices and influencing factors at different levels.