Medium-sized Firms Research Articles

Analisis Implementasi Pembiayaan Kredit Usaha Rakyat (KUR) Syariah dalam Meningkatkan Pendapatan UMKM: Studi Kasus pada Pegadaian Cabang Mandala

This study employs a descriptive qualitative methodology, using field research. The objective of this research is to determine the impact of Pegadaian's involvement in enhancing the revenue of micro, small, and medium companies (UMKM) through the utilization of Shariah People's Enterprise Credit (KUR). This study employs interviews, observations, and documentation as methods for data collection. This research demonstrates the significant role of Kur Shariah Pegadaian in facilitating small and medium-sized companies (UMKM) in acquiring the necessary finance for company expansion and development. In addition, the Kur shariah pegadaian significantly boosts the profits or revenue of small and medium-sized firms (UMKM) to a far greater extent than previously.

An Examination of Technical Efficiency of MSMEs Industries in Haryana: A Case Study of Faridabad District

India's economy's micro, small, and medium-sized enterprises (MSME) sector produce several goods. One of the most accurate ways to characterize the Industrial Sector is by its technical efficiency, which allows it to sustain a high level of manufacturing production. An investigation of the productivity and efficiency of micro, small, and medium-sized firms (MSMEs) in the industrial sector of Faridabad, Haryana, is carried out using parametric frontier analysis. Within the context of his essay on efficiency evaluation, which was published in 1957, Farrell presented various approaches for examining productivity and efficiency. The function that determines the creation of the stochastic frontier. We use a multistage estimation technique that incorporates four distinct error components to arrive at reasonable estimates. From 2016 through 2022, the data from the Ministry of MSMEs and the organization that is part of the state government were utilized. An investigation into the machinery and equipment that is utilized by micro, small, and medium-sized firms will be carried out as part of this study.

Government Tariff Intervention and Exportation Activities of SMEs in South West Nigeria

The advancement of Small and Medium Enterprises (SMEs) plays a crucial role in the industrialization of developing nations. Yet, the success and longevity of these SMEs heavily rely on a strong trade policy and an effective tariff system. Unfortunately, the trade policy of the Nigerian Government, particularly concerning SMEs, has not yet supported substantial growth and development due to inadequate tariffs and a lack of openness in import and export duties. This situation has resulted in low output and productivity for SMEs. This research focused on exploring how government tariff interventions impact the export activities of SMEs in Nigeria's South-west geopolitical zone. The study used a cross-sectional research design and targeted the 20,801 registered SMEs in the manufacturing sector of the South-west region. A sample of 393 respondents was selected using the Guilford and Fruchter (1973) formula, employing a multi-stage sampling technique. Primary data was collected through a survey questionnaire, utilizing a 5-point Likert scale adapted from Saragih (2011) to measure responses. Descriptive statistics were used for the analysis, supplemented by inferential analysis using R-Studio version 11. The findings indicated that reducing tariffs from 10 percent to zero percent resulted in an increase in the participation of medium-sized firms (those with 100–249 employees) from 11.5 percent to 14.2 percent, but this change did not significantly affect smaller firms. The study concluded that government tariff interventions promote the export activities of SMEs and facilitate their entry into the export market. As a recommendation, the study suggested that the government should lower custom tariffs for SMEs to enable them to achieve larger-scale production and thrive in the global market.

Trust and SME short-term financial policy. European evidence

PurposeDoes societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large firms. Our paper aims to provide a comprehensive analysis of the impact of societal trust on short-term financial policies of SMEs, namely working capital management and cash holdings.Design/methodology/approachWe rely on a sample of 14,711 privately owned medium-sized manufacturing firms from 26 European countries with a sample period between 2014 and 2020. For estimation, we use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption.FindingsWe show a positive relationship between trust and working capital requirements investment and a negative relationship between trust and the level of cash holdings. Moreover, we show that trust attenuates the negative impact of being a financially constrained firm and the positive impact of national perceptions of corruption. Finally, in higher trustworthy environments, firms operate with relatively higher inventories and relatively lower trade credit granted and obtained.Research limitations/implicationsResults suggest that policies supporting societal trust may also foster business development and that when dealing with clients or suppliers from different trustworthy environments, firms may have to adapt their business models to incorporate trust differences between business environments.Originality/valueFirstly, the comprehensive analysis of the impact of trust on working capital management and cash holdings while controlling for different firm-level and country-level known determinants of short-term financial management. Secondly, it addresses a European sample of unquoted, medium-sized firms. Thirdly, it studies the combined effect of trust and financial constraints and trust and corruption.

Exploring the Relationship between Sustainability Performance, Sustainable Competitive Advantages, and Firm Performance in Small and Medium-sized Enterprises of Pakistan

Small and medium-sized firms (SMEs) play a critical role in every economy, contributing significantly to gross domestic product (GDP) and employment creation. However, tackling the negative environmental effect of SMEs is critical to their overall performance. Achieving sustained success necessitates a mix of elements that create a competitive advantage and assist the accomplishment of triple-bottom-line objectives. While previous research has explored business performance and sustainability individually, there is minimal understanding of how sustainability performance impacts firm performance, with sustainable competitive advantages serving as a mediator. Our continuing research aims to fill this knowledge gap by investigating the influence of sustainability performance on firm performance, particularly in SMEs businesses, and by investigating the possible mediating role of sustainable competitive advantages. We assess sustainability performance across three dimensions: economic, environmental, and social. Financial and market performance, quality performance, and innovation performance are used to evaluate firm performance. We use partial least squares structural equation modeling (PLS-SEM) to analyze data from 370 SMEs firms in Pakistan. Our findings give empirical support for the Resource-Based Theory stressing dynamic capacities and provide useful insights for SMEs on effective resource allocation and the implementation of sustainable practices. However, this study has limitations, including its focus on SMEs in Pakistan, which may limit the generalizability of the findings to other regions and sectors. Future research should consider broader geographic and industry contexts to validate these results. This work makes a theoretical and managerial contribution to improving corporate performance.

Selected demographic determinants of CSR, financial & environmental management and business ethics in SMEs

Research background: Small and medium-sized enterprises are at the heart of the business environment in every country. At the same time, emphasis is placed on the environmental aspect and, in many cases, corporate social responsibility. In this context, business ethics is also a widely discussed topic. At the same time, financial management is one of the critical areas of business management. These aspects can be influenced by various demographic factors related to the company, as well as by the business owners or managers. Purpose of the article: The objective of this paper is to examine the influence of selected demographic factors on Corporate Social Responsibility (CSR), financial management, environmental practices, and business ethics in small and medium-sized enterprises (SMEs) in Slovakia and the Czech Republic. Methods: The empirical research was carried out as part of a broad-based research that aimed to ascertain the attitudes of small and medium-sized firms. It was conducted in June 2022 in Slovakia and the Czech Republic using the CAWI Research Method. The questionnaire could be completed by the owner or the top manager of the SME. The questionnaire was secured against automatic computer completion. Descriptive statistical analysis was used to analyse the characteristics of the variable, and regression (LRM) and correlation analysis methods were applied to find statistically significant differences in the influence of each independent factor. Findings & Value added: The analysis suggests interesting differences in how demographic factors influence ethics, CSR, environment and financial management in the Czech and Slovak Republics. In general, the impacts of these factors on these areas are very weak. The results showed that firm size influences SMEs' attitudes towards the environment, financial management and CSR in all countries combined. The other independent variables of the sector, such as length of business and age, do not affect attitudes towards ethics, environment, CSR, or financial management. We can generalise that in the conditions of Slovakia and the Czech Republic, among demographic criteria, only firm size plays a significant role in determining the attitudes of SME managers.

Building entrepreneurial resilience during crisis using generative AI: An empirical study on SMEs

Recently, Gen AI has garnered significant attention across various sectors of society, particularly capturing the interest of small business due to its capacity to allow them to reassess their business models with minimal investment. To understand how small and medium-sized firms have utilised Gen AI-based tools to cope with the market's high level of turbulence caused by the COVID-19 pandemic, geopolitical crises, and economic slowdown, researchers have conducted an empirical study. Although Gen AI is receiving more attention, there remains a dearth of empirical studies that investigate how it influences the entrepreneurial orientation of firms and their ability to cultivate entrepreneurial resilience amidst market turbulence. Most of the literature offers anecdotal evidence. To address this research gap, the authors have grounded their theoretical model and research hypotheses in the contingent view of dynamic capability. They tested the research hypotheses using cross-sectional data from a pre-tested survey instrument, which yielded 87 useable responses from small and medium enterprises in France. The authors used variance-based structural equation modelling with the commercial WarpPLS 7.0 software to test the theoretical model. The study's findings suggest that Gen AI and EO have a significant influence on building entrepreneurial resilience as higher-order and lower-order dynamic capabilities. However, market turbulence has a negative moderating effect on the path that joins entrepreneurial orientation and entrepreneurial resilience. The results suggest that the assumption that high market turbulence will have positive effects on dynamic capabilities and competitive advantage is not always true, and the linear assumption does not hold, which is consistent with some scholars' assumptions. The study's results offer significant contributions to the contingent view of dynamic capabilities and open new research avenues that require further investigation into the non-linear relationship of market turbulence.

Creation of Micro Market Structure in MSMEs in Review of Social Entrepreneurship Involvement, Government Policy and Empowerment

In order to better understand the role of social entrepreneurship, government policies, and empowerment initiatives, this study looks at how micromarket structure is created in micro, small, and medium-sized firms (MSMEs) in Indonesia. In order to conduct a survey with a stratified random sample of 215 Indonesian MSMEs, this study used a quantitative technique. Data analysis techniques included partial least squares structural equation modeling (PLS-SEM) and confirmatory factor analysis. The findings demonstrate the important influence of social entrepreneurship, governmental policies, and empowerment programs on the evolution of micro-market structures within the MSME sector. Social entrepreneurship in particular shows the potential of creative and socially conscious business ideas and has a positive effect on market structure. While empowerment programs like loan availability and training help to create a competitive market structure, government policies also have a significant impact on how the market is shaped. Policymakers, business owners, and development organizations that want to support effective and long-lasting market networks in Indonesia's MSMEs sector should take note of these findings.

Challenges for the development of sustainable SMEs in the cement industry: a SWARA–WASPAS approach

Purpose This study aims to examine the obstacles and approaches to achieving sustainable development in India’s cement solid and hollow brick production business, with a specific emphasis on incorporating the triple bottom line (TBL) concept into strategies for small and medium-sized enterprises (SMEs). Design/methodology/approach Using the step-wise weight assessment ratio analysis (SWARA)–weighted aggregated sum product assessment (WASPAS) approach, the study prioritized 11 economic, 9 environmental and 14 social sustainability indicators based on information collected from literature and expert opinions. Findings The study provides valuable insights into the difficulties encountered by SMEs while implementing strategies that focus on the TBL. By putting emphasis on the sustainability criteria, the key areas that require attention to promote sustainability get identified and addressed. Research limitations/implications The study’s focus on SMEs in this industry limits its generalizability. To have a more complete picture, future studies may include many areas. Practical implications The identified and prioritised sustainability characteristics help small and medium-sized firms (SMEs) design strategies to address sustainable development concerns. The research findings could also inform policymakers and regulatory bodies about the challenges faced by SMEs in the cement and brick production sector regarding sustainability. It could highlight the need for supportive policies and regulations to promote sustainable practices and incentivize SMEs to adopt the TBL approach. The paper can offer practical insights for SME owners and managers on integrating sustainability principles into their business strategies. Actionable recommendations and best practices for enhancing environmental performance, social impact and economic viability within the context of cement and brick production are outlined. Social implications TBL policies improve the sustainability and profitability of small and medium-sized firms (SMEs) and promote environmentally and socially responsible practices that benefit the industry and society. The research paper may facilitate greater engagement and collaboration among various stakeholders involved in the cement and brick production industry, including SMEs, larger corporations, government agencies, non-governmental organizations (NGOs) and local communities. This cooperative approach can encourage open communication, the establishment of trust and coordinated actions to tackle sustainability challenges, ultimately improving social cohesion and collaboration. Originality/value This study provides new and valuable insights by investigating the development of TBL strategies in SMEs in the cement solid and hollow brick manufacturing sector in India. The utilization of the SWARA–WASPAS technique brings novelty to research on sustainable development in this field.

Modeling the Intricate Association between Sustainable Service Quality and Supply Chain Performance: Moderating Role of Blockchain Technology and Environmental Uncertainty

The growing awareness about natural resource scarcity is spreading across industries, compelling businesses to implement sustainability initiatives. The service sector, including small and medium-sized firms (SMEs) involved in logistical operations, is actively pursuing measures to achieve the expected sustainability goals. In recent years, incorporating sustainable service quality attributes (SSQAs) has become a crucial strategy for attaining competitive advantages and sustainability objectives. In this context, the current study examines sustainable service quality attributes’ role in achieving sustainable supply chain performance (SSCP) and obtaining triple bottom line sustainability outcomes. Data were obtained from 295 logistics service-providing SMEs using the purposive sampling technique. The acquired data were then analyzed using the structural equation model. According to the findings, SSQAs have a positive association with SSCP. The moderating roles of blockchain technology (BT) and environmental uncertainty (EU) were significant between SSQAs and SSCP. SSCP also mediated between SSQAs, BT, and TBL. Meanwhile, EU and BT also have a significant influencing role between SSQAs and SSCP. The study adds to the body of knowledge within the domain of sustainability, by testing the unique interaction between sustainable service quality attributes and SSCP. Likewise, the use of blockchain technology as a moderator on a given relationship is empirically unique in itself. The study also provides the first of their kind findings on the subject matter in the context of 295 logistics service-providing SMEs from a developing country like Pakistan. The study’s findings are helpful for managers in transforming their services by embedding the SSQAs and developing their workforce to be equipped with the knowledge and facilities necessary to achieve TBL outcomes.

Will the National Big Data Comprehensive Pilot Zone improve total factor productivity of enterprises?

In this article, a quasi natural experiment is constructed using 2012 to 2021 data from A-share listed companies in Shanghai and Shenzhen. It is determined that the establishment of the National Big Data Comprehensive Pilot Zone (NBDCPZ) will have an impact on total factor productivity (TFP) of enterprises utilizing the DID (Difference-in-Differences) method. Research finds that establishing NBDCPZ can improve the TFP of listed companies in the city where the park is located. The mechanism test results indicate that the establishment of NBDCPZ can encourage an increase of TFP of enterprises through the effects of competition, innovation, and digital transformation. According to further analysis of heterogeneity, this effect has a greater impact on for nonstate-owned enterprises, small- and medium-sized firms, and labor-intensive enterprises. Due to China's vast territory and significant differences in subjects, the tests conducted in this article can provide targeted development suggestions for different categories of subjects.

Big Data Analytical Capabilities and Performance: The Mediating Role of Knowledge Management in IT Firms

This study aims to investigate the complex relationship between the capabilities of Big Data, knowledge management, organizational learning, and how they collectively impact the performance of small and medium-sized firms (SMEs) in Singapore's IT industry. This study aims to demonstrate the mediating role of organizational learning processes and knowledge management in the relationship between Big Data capabilities and company performance. To achieve this, a dataset of 300 organizations will be analyzed using simple random sampling and Structural Equation Modeling-Partial Least Squares (SEM-PLS). Extensive research has shown that knowledge management and organizational learning play a crucial role in maximizing the usefulness of Big Data capabilities and enhancing business performance. The results demonstrate the need of combining knowledge management and organizational learning with Big Data initiatives to create an environment that promotes performance enhancement. This integration enables a mutually beneficial influence that motivates businesses to produce exceptional results, particularly those working in the highly competitive technology industry. The study's conclusions emphasize the crucial role of knowledge management and organizational learning as intermediary roles for Big Data to fully realize its potential. The findings have significant ramifications for technology enterprises that are small or medium-sized. They propose a reevaluation of their strategic objectives that include a comprehensive approach to overseeing Big Data, knowledge, and learning. These aspects are crucial for a company's success in the modern digital environment.

Relational Skills and Corporate Productivity in a Comparative Size Class Perspective

AbstractDrawing on insights from various fields within game theory literature, such as strategic interactions, social dilemmas, gift exchange, and procedural utility, we argue that corporate social responsibility (CSR) and relational skills—whether between firms, employers and workers, among workers themselves, or with stakeholders—are associated with positive effects on productivity. We test this hypothesis using a comparative approach across small, medium, and large Italian firms, leveraging data from the 2019 CSR survey conducted by the Italian Statistical Institute (ISTAT). Our analysis reveals that firm size plays a crucial role in the impact of relational skills on added value per worker, even after controlling for relevant factors. Key components of relational skills identified in our study include corporate policies focusing on workers' well-being, prioritizing teamwork attitudes in recruitment, supporting initiatives within the local productive network, and involving stakeholders in CSR initiatives. Our findings indicate that stakeholder engagement positively impacts all firm sizes, while worker well-being is particularly significant for small and medium firms, local network initiatives for medium and large firms, and teamwork for medium-sized firms. Instrumental variable estimates find evidence of a causal link beyond these correlations. We conclude that firm size exhibits an inverse U-shaped effect on the impact of teamwork skills, reduces the influence of gift exchange mechanisms, and strengthens the effects of investments in the local productive environment on added value per worker.

INNOVATION WITHOUT R&D: HOW IS THIS POSSIBLE? KNOWLEDGE SPILLOVERS AND DUI MODE OF INNOVATION ON THE EXAMPLE OF GERMAN ENTERPRISES

Economically and technically advanced nations differ from developing countries by having numerous competitive, innovative and active enterprises. High-tech innovations are particularly important for the global economy, for this reason, many economists and politicians tend to underestimate the importance of innovations introduced by small and medium-sized firms from low- and medium-tech sectors of the economy. In their innovation activities, SMEs acquire ready–made technological solutions on the market, or introduce innovations in a special way – in the DUI mode. The theoretical concept of DUI (learning by doing, using and interacting) explains why many small and medium-sized enterprises succeed in innovation without research and development (R&D) efforts. This article examines the theoretical issues of introducing innovations without R&D, and also provides data from empirical studies of innovation activity obtained during the surveys Mannheim Innovation Panel of the Leibniz Centre for European Economic Research and German Manufacturing Survey of the Frauenhofer ISI Research Institute for the period 2002–2020.

Investigating industry 4.0 technologies in logistics 4.0 usage towards sustainable manufacturing supply chain

In the era of Industry 4.0 (I4.0), automation and data analysis have undergone significant advancements, greatly impacting production management and operations management. Technologies such as the Internet of Things (IoT), robotics, cloud computing (CC), and big data, have played a crucial role in shaping Logistics 4.0 (L4.0) and improving the efficiency of the manufacturing supply chain (SC), ultimately contributing to sustainability goals. The present research investigates the role of I4.0 technologies within the framework of the extended theory of planned behavior (ETPB). The research explores various variables including subjective norms, attitude, perceived behavior control, leading to word-of-mouth, and purchase intention. By modeling these variables, the study aims to understand the influence of I4.0 technologies on L4.0 to establish a sustainable manufacturing SC. A questionnaire was administered to gather input from small and medium-sized firms (SMEs) in the manufacturing industry. An empirical study along with partial least squares structural equation modeling (SEM), was conducted to analyze the data. The findings indicate that the use of I4.0 technology in L4.0 influences subjective norms, which subsequently influence attitudes and personal behavior control. This, in turn, leads to word-of-mouth and purchase intention. The results provide valuable insights for shippers and logistics service providers empowering them to enhance their performance and contribute to achieving sustainability objectives. Consequently, this study contributes to promoting sustainability in the manufacturing SC by stimulating the adoption of I4.0 technologies in L4.0.

The Impact Marketing Mix on Indigenous Business Development in Uzbekistan: A Regression Analysis

This study investigates the formulation of a marketing strategy framework specifically designed for small and medium-sized enterprises (SMEs) in Uzbekistan. SMEs have several obstacles in establishing brand awareness, enticing clients, and optimizing financial profits in the current fiercely competitive business landscape. To surmount these challenges and maintain expansion, SMEs can utilize the extended marketing mix approach, which comprises the elements of product, price, place, promotion, people, process, and physical evidence. This study employed a blend of descriptive and exploratory research methodologies, integrating both quantitative data-gathering approaches. A survey was undertaken to assess the perspectives of entrepreneurs about the implementation of marketing mix strategies SMEs. The study examined the influence of the correlation between marketing mix variables on the development of SMEs through regression analysis with the help of STATA software. The results emphasized the significance of integrating marketing mix elements for SMEs to improve their marketing endeavors, foster brand loyalty, and get a competitive edge. This study enhances comprehension of marketing strategies for small and medium-sized firms in developing economies such as Uzbekistan and offers valuable insights for policymakers and entrepreneurs in promoting the expansion of SMEs in the economy.

The Behavioral Finance of MSMEs: Financial Inclusion and Financial Technology

This project is to gather empirical data on the topic to gain a better understanding of how financial technology, or Fintech, affects the financial behavior of micro, small, and medium-sized firms (MSMEs). 110 MSMEs spread over West Jakarta made up the sample in 2023. As part of the data gathering method, a random sample questionnaire with a 5-point Likert scale was created using the online tool Google Forms. The Structural Equation Modeling (SEM) model was applied to the data using Partial Least Squares (PLS) software. The results of the study show that financial inclusion and financial technology (Fintech) have a positive influence on MSMEs' financial behavior. Financial technology, or Fintech, may function as a mediator and positively influence MSMEs' financial behavior by promoting broader financial inclusion. This information will be useful to financial institutions, relevant governments, entrepreneurs, and business support organizations that aim to improve the financial behavior and practices of MSMEs. The significance of programs intended to promote good financial conduct, expand financial inclusion, and educate the public about the advantages of fintech in order to enable MSMEs to adopt more responsible financial practices.

The effectiveness of entry deregulation: Novel evidence from removing minimum capital requirements

Although minimum paid-in capital requirements impede firm entry, governments worldwide have only recently started to reduce or remove such requirements. This study is among the first to examine the effectiveness of an entry deregulation reform in China that eliminated such requirements. We exploit city–year–month variation in reform implementation and employ a large nationwide administrative dataset of firm registrations, finding that the deregulation strongly encourages firm and job creation. Moreover, we find that the deregulation exerts a pro-competitive effect by encouraging the entry of small and medium-sized firms, private firms, and single-shareholder firms, which diversifies the industrial bases and reduces the industrial concentration of economic activity. Finally, we provide suggestive evidence that the deregulation promotes economic growth in the deregulated cities.

Reduce, reuse, recycle: circular economic principles, sustainability and entrepreneurship in developing ecosystems

PurposeThe circular economy (CE) promotes the recovery of value from waste while also working towards achieving long-term environmentally sustainable goals. The goal of this research is to explore the challenges, opportunities, future scope and green practices that small and medium-sized firms (SMEs) face as they move from the linear economy to the CE.Design/methodology/approachBased on a structured questionnaire, a survey was conducted with representatives from 163 SMEs in India. The data were analysed using co-variance based structural equation modelling technique.FindingsThis research identifies various challenges, including consumer acceptability, worries about awareness, recyclability issues, financial constraints and the absence of a defined management plan for SMEs in adopting the CE. Further, strong management will, innovation, technical up-gradation, training of employees, employee motivation and appropriate guidelines are recognized as essential possibilities for CE implementation.Originality/valueWhile there has been some work on CE, no studies have directly compared these efforts with the goal of shifting from a linear economy to a CE. Given the transient nature of many archives, it is critical that the efforts put into them and the opinions of those who work in them be recorded so that communities can benefit from a shared linear economy in making decisions about their own history.

FDI technology spillovers in Chinese supplier-customer networks

This paper examines foreign direct investment (FDI) technology spillovers between firms in a supply chain and analyzes the mechanism behind their occurrence. Results using firm-level transaction data from China between 2009 and 2020 show that, unlike inter-industry linkage effects, in the Chinese market, FDI technology spillovers can directly occur through connections between suppliers and customers, demonstrating the existence of inter-firm technology spillover effects of FDI. Further analysis reveals that FDI technology spillovers between firms are generated through channels of knowledge transfer and optimized supply chain configurations, predominantly observed in state-owned firms, small and medium-sized firms, the manufacturing sector, and high-tech industries. Upon analyzing the detailed breakdown of FDI sources, it was found that FDI from developed countries exhibits inter-firm technology spillover effects. In contrast, FDI from Hong Kong, Macao, and Taiwan regions, developing countries, and tax havens such as the British Virgin Islands and the Cayman Islands show insignificant effects on inter-firm technology spillovers. These conclusions offer policy insights for China and other developing countries to better utilize FDI to promote the development of local firms in the context of the sustained global supply chain restructuring.