Medium-sized Manufacturing Enterprises Research Articles

Identification and Analysis of Key Factors Affecting Digital Transformation of Small and Medium-Sized Manufacturing Enterprises

The digital transformation of small and medium-sized manufacturing enterprises is influenced by various factors, and the relationship between them is not yet clear. Studying the factors that affect the digital transformation of small and medium-sized enterprises can promote the digital transformation process of small and medium-sized manufacturing enterprises. On the basis of summarizing literature and expert recommendations, this study identified the influencing factors in the digital transformation process of small and medium-sized manufacturing enterprises, and analyzed the key influencing factors using a combined method of DEMATEL-ISM-MICMAC (Decision-Making Test and Evaluation Laboratory-Interpretive Structural Model-Matrices Impacts Croises-Multiplication Appliance Classement). Research has found that digital policies, market demand, business model innovation, third-party data-driven services, and the digital foundation of enterprises are key factors in the process of digital transformation. In addition, the causal factors in the DEMATEL method, the essential factors in the ISM method analysis, and the independent factors in the MICMAC technique analysis can mutually support and complement each other. This study enriches the methodology for studying the factors of digital transformation and provides reference for the digital transformation of small and medium-sized manufacturing enterprises and government policy formulation.

Achieving supply chain sustainability: enhancing supply chain resilience, organizational performance, innovation and information sharing: empirical evidence from Chinese SMEs

PurposeThis study aimed to explore the relationship between supply chain resilience (SCR) and organizational performance (OP), with innovation (INN) serving as a mediator and information sharing (IS) acting as a moderator.Design/methodology/approachThe study comprehensively examined the connections between SCR, OP, INN and IS. An exploratory approach and quantitative methods were employed. The data were collected from small and medium-sized manufacturing enterprises of three cities Xian, Hainan and Guangzhou of China via online questionnaire surveys conducted through Emails and WeChat. SmartPLS-4 was used for data analysis.FindingsThe findings indicated that SCR has a positive effect on sustainability efforts. Additionally, INN and effective IS both mediated and moderated this relationship, playing crucial roles in improving sustainability within the supply chain.Practical implicationsThe study offered practical insights for businesses to enhance their sustainability efforts. Managers can use these findings to develop strategies that improve SCR, foster INN and encourage effective IS, ultimately resulting in a more sustainable supply chain.Originality/valueThis study enriched the existing knowledge base by investigating the intricate relationships among SCR, OP, INN and IS, all within the context of achieving sustainability. By exploring these elements holistically, the research introduced originality and highlighted effective strategies for sustainable supply chain management.

Enhancing MSMEs Financial Resilience: Integrating Working Capital Management and Sustainability Reporting

This study examines the influence of sustainability reporting (SR) comprehension and working capital management (WCM) on the financial performance of small and medium-sized manufacturing enterprises (MSMEs). Furthermore, the study emphasizes WCM's impact on financial performance, which is linked to understanding SR among MSMEs actors. The study incorporates control variables in the model (e.g., age, size, ownership type, organizational culture, market orientation, entrepreneurial orientation). The sample is selected using quota sampling of MSMEs in the manufacturing sector in Palembang, Indonesia, from October to November 2023. Primary data collection is distributed online through questionnaires. The results show that understanding SR and WCM positively affect the financial performance of MSMEs. The findings deliver several contributions. Firstly, the implementation of SR of MSMEs – in the long term – would benefit the government in supporting sustainable development goals (SDGs). Secondly, it bridges the literature gap regarding the implementation of SR and WCM to examine the performance of MSMEs.

Will Network Infrastructure Optimization Make Manufacturing Enterprises "Out of Real to Virtual"? --- A Quasi-Natural Experiment from the "Broadband China" Policy

Manufacturing is the most important component of the real economy, and the application of modern network information technology can effectively improve the operational efficiency of manufacturing enterprises. In the context of "Made in China 2025", it is particularly important to prevent manufacturing enterprises from deviating from their main business and becoming excessively financialized. Maintaining the essential business activities of manufacturing enterprises is of great importance to China's economic development. Based on the operating data of all A-share listed manufacturing companies from 2010 to 2020 and combining the "Broadband China" demonstration city policy, this paper uses a multi-point double-differenced model to explore the relationship between network infrastructure optimization and excessive financialization of manufacturing enterprises. The research shows that: 1) Network infrastructure optimization will make manufacturing enterprises increase their financialization level, and this effect is mainly manifested through optimizing accounts receivable management. 2) From the perspective of enterprise size, compared with small and medium-sized manufacturing enterprises, large manufacturing enterprises are more likely to improve their financialization level through network infrastructure optimization. 3) From the perspective of the degree of diversified operations, manufacturing enterprises with high diversified operations are more likely to take advantage of network infrastructure to improve their financialization level. This study provides reference and guidance for later researchers on the impact of "new infrastructure" represented by network infrastructure construction on the business model of manufacturing enterprises.

Stakeholders’ Perceptions on Influence of Energy Efficiency Practices Adopted on Economic Performance of Selected Small and Medium Sized Manufacturing Enterprises in Nakuru County, Kenya

The adoption of environmental policy among large manufacturing firms has been recognized for enhancing their economic performance. This is crucial for achieving Kenya's Vision 2030, the fourth medium term plan (2023-2027) and the Bottom-Up Economic Transformation Agenda (BETA) for Inclusive Growth. Despite the slow pace, small and medium-sized enterprises (SMEs) are now adopting these policies to reduce their environmental footprint. However, there is limited documentation on how these practices affect their economic performance. Hence, this study aimed at examining stakeholders' perceptions on the influence of adopting energy efficiency practices on the economic performance of selected manufacturing SMEs in Nakuru County. The study was guided by the ecological modernization theory (Win-Win principle). An explanatory sequential mixed-method research design was employed, targeting SME proprietors in the manufacturing sector with a sample size of 76 respondents. Descriptive and inferential statistics (linear regression) was used to analyze quantitative data, while content analysis was used to analyze qualitative data. The study found out that SMEs largely adopted the use of energy-efficient bulbs and turned off lights when not in use. However, they used solar lighting as an energy efficiency practice to a lesser extent because they consider this practice expensive. The study also found that stakeholders perceived that energy efficiency practices adopted had a significant influence on the economic performance of selected manufacturing SMEs. This finding implied that energy efficiency practices adopted by manufacturing SMEs would have an influence on SMEs economic performance. This study recommends that the government, both national and county should sensitize the SMEs as well as allocate financial and technical resources to support SMEs implement and upscale their energy efficiency practices within their operations. The focus of energy efficiency practices should be on those that reduce production costs and enhance competitiveness such as those that improve SMEs customer base

The impact of competitive strategy on enterprise performance: An empirical study of small and medium-sized manufacturing enterprises

This study investigates the relationships between competitive strategy, innovation, corporate governance structure, capital structure, human capital, and enterprise performance in small and medium-sized manufacturing enterprises (SMEs). The research is based on the Competition Theory. The survey research design includes 506 valid responses from SMEs in China. Structural equation modelling was employed to analyze the responses. It revealed that competitive strategy positively impacts performance, with innovation and human capital as key mediators. Corporate governance and capital structure also mediate these relationships, supporting various strategic management theories. Additionally, the environment moderates the impact of competitive strategy on performance, highlighting the need for adaptability in dynamic markets. These findings offer theoretical substantiations and practical insights for enhancing SME performance through strategic planning. Future research should employ longitudinal approaches and integrate objective data to explore these dynamics further.

Falsification of financial statements in Russian manufacturing enterprises in 2012–2019

This paper considers the falsification of financial reports at Russian manufacturing enterprises in the period from 2012 to 2019. The factors are associated with the heterogeneity of estimates of falsified financial statements. We examine the evolution of corporate fraud during the period under review with a special focus on the correlation between false reporting and sanctions crisis of 2014. We identify two main lines of corporate behavior in relation to falsified corporate reporting: a consistently «honest» strategy characteristic of no more than 30–60% of enterprises, or situational behavior, when an enterprise provides either reliable or questionable data in certain years depending on the circumstances. For large and medium-sized manufacturing enterprises, the quality of reporting provided has generally improved in the sanction period of 2015–2019 compared to the pre-sanction period. Drawing on econometric calculations, we demonstrate that the main factors associated with provision of inaccurate reporting are the size of an enterprise, and the growth rate of accounts receivable in previous years.

A DNA-Like blockchain model: implementing decentralized management, dynamic scheme adjustment, and data security for optimal service composition

ABSTRACT Cloud manufacturing (CM) promotes the development of small and medium-sized manufacturing enterprises (SMMEs) by integrating resources and collaboratively providing users with diversified services. However, the implementation of CM for SMMEs faces several challenges, such as the excessive centralization of enterprise management, poor dynamic adaptability of service composition, and insecurity of data information. To address these issues, this paper proposes a DNA-like blockchain model (DNABM) based on blockchain technology. The DNABM consists of a service information chain (SIC) and a manufacturing process chain (MPC). The SIC nodes (SIblocks) are formed based on the corresponding subtasks to record information about all manufacturing services that can complete the subtasks. The MPC nodes (MPblocks) are formed by selecting the most suitable services from the SIblocks. The DNABM has advantages of flexible service management, dynamically adaptable service compositions, and securely managed manufacturing enterprise data across various levels. Finally, taking the foundry industry as an example, demonstrating how the DNABM can promote the collaboration of SMMEs in CM. However, the actual implementation of the DNABM is still limited by the large number of heterogeneous tasks and services, the low utilization rate of process data, and the lack of coordination compatibility between services.

Strategic Dimensions of Eco-Innovation Adoption in Manufacturing SMEs in the Context of Mexico City

This paper investigates the strategic dimensions influencing the adoption of environmental innovations (EIs) in small and medium-sized manufacturing enterprises (SMEs) in Mexico City. The study aims to understand the fundamental strategic dimensions defining eco-innovation and examine how SMEs manage the complexities of incorporating these practices. Employing a mixed-methods approach with documentary analysis and expert interviews, the study identifies key factors influencing EI adoption through causal maps and the viable system model. Findings highlight the significance of external and internal factors such as competitive pressure, economic constraints, technological capabilities, political support, and social influence. This integrative approach emphasizes the importance of adaptability and responsiveness, presenting eco-innovation as a source of sustainable competitive advantage for SMEs.

Assuring the Sustainability and Growth of Small and Medium-Sized Manufacturing Enterprises in Botswana: An Exploratory Study

This paper explored the factors that impact the sustainability and growth of small and medium-sized manufacturing enterprises in Botswana. A self-administered structured questionnaire was used to survey 348 owners/managers of small and medium-sized manufacturing enterprises (SMEs) in the South Eastern District of Botswana. Descriptive and inferential statistics were generated from the gathered data using the Statistical Package for Social Sciences (IBM SPSS Version 27.0). findings revealed that entrepreneurial factors, firm-specific factors and exogenous factors impacted the growth and sustainability of manufacturing firms in Botswana. In addition, government policies and guidelines, innovation and creativity, human capital development, access to finance, financial management skills and managerial skills were also confirmed as significantly contributing to the growth and sustainability of manufacturing small and medium-sized enterprises in Botswana. Key recommendations derived from these findings include the need for policymakers in the government of Botswana and private sector partners to upskill owners/managers of manufacturing enterprises on business planning, financial management, financial literacy, quality management, and market research skills. Furthermore, efforts should be accelerated to promote products manufactured in Botswana to regional and global markets.

Entrepreneurial Networking and Performance of Ugandan Manufacturing SMEs: The Mediating Role of Innovation Capabilities

This study investigates the potential impact of innovation capacities on the relationship between entrepreneurial networking and the performance of small and medium-sized manufacturing enterprises (SMEs) in Mbarara City. The target population of the study was 248 SMEs, according to MoFPED (2022). 205 SMEs were obtained when the sample size was calculated using Krejcie and Morgan's (1970) tables. With 186 respondents and SMEs, the response rate was 91%. Data was collected using a cross-sectional research design. To determine the mediating link, the four stages of Baron and Kenney (1986) was completed and every direct influence of the research variables had to meet a substantial requirement. The prerequisites were met and there was a significant direct association (Beta=0.673; p<.01) between entrepreneurial networking and SMEs' performance. Furthermore, there was a direct substantial association (Beta=0.437; p<.01) between innovation capabilities and the performance of SMEs, and a significant correlation (Beta=0.166; p<.01) was found between entrepreneurial networking and innovation capabilities. The association between entrepreneurial networking and the performance of SMEs decreased from Beta=0.673 to Beta=0.617 when innovation capabilities were taken into account, although the relationship remained statistically significant. This suggests that the relationship between entrepreneurial networking and the performance of SMEs is mediated by innovative capabilities. The model's indirect outcome is given by the percentage of 8.32%, indicating that 91.68% explains the direct effect. The study advises policymakers to encourage SMEs to innovate and promote entrepreneurial networking by organizing workshops/seminars where entrepreneurs can interact with each other and thus boost their innovativeness which will enhance SME performance.

Mitigate cross-market competition caused by the risk of uncertainty and improve firm performance through business intelligence

In the face of various risks and uncertainties including political instability, technological advancements, and natural disasters, businesses involved in cross-market activities are encountering a more competitive environment. This study investigates the relationship between competitive intensity, business intelligence, internal process efficiency, and the performance of small and medium-sized manufacturing enterprises in China. By incorporating the Technology-Organization-Environment (TOE) framework and Dynamic Capabilities Theory, a research model is developed to demonstrate that competitive intensity improves firms’ performance through the utilization of business intelligence capabilities and internal process efficiency. Through the use of a structural equation model, data collected from 15 industrial parks in Henan province, China, involving 429 participants, was analyzed. The findings show a positive correlation between competitive intensity and business intelligence sensing capability (both internal and external). The impact of business intelligence sensing capability on the performance of small and medium-sized manufacturing enterprises is shown to be mediated through internal process efficiency. Our study reveals the mediating roles of business intelligence capability and internal process efficiency in improving organizational performance among Chinese small and medium-sized manufacturing enterprises. This research not only fills gaps in business intelligence research from a management perspective but also contributes to the literature on the interactions among competitive intensity, business intelligence, internal processes, and organizational performance. It also sheds light on the relationship between competitive intensity and organizational performance, offering insights for companies involved in cross-market activities. By highlighting the importance of business intelligence capabilities in adapting to environmental influences, this study offers practical guidance for enterprise digital transformation efforts.

Digital strategy for firm performance- mediating role of digital platform capabilities and digital culture in manufacturing SMEs

ABSTRACT Manufacturing businesses worldwide increasingly strive to devise and implement strategies to succeed in digital transformation and improve their performance by developing digital capabilities and competencies. We argue that this process should incorporate a culture and dynamic capabilities that support this transformation. In this vein, we propose and test a model explaining the impact of digital strategy on firm performance and the mediation mechanisms of digital platform capabilities and digital culture in this relationship. Our analysis of time-lagged data, gathered from middle and top managers of small and medium-sized manufacturing enterprises (SMEs), affirms our initial hypotheses: digital strategy positively influences firm performance, and digital platform capabilities and organisational culture mediate this relationship. Our study carries significant implications for manufacturing SMEs, particularly those in developing countries, as it underscores the pivotal role of digital platform capabilities and cultural factors in leveraging digital strategies for competitive advantage.

How Can Small and Medium-Sized Manufacturing Enterprises Improve Green Innovation Performance through Innovation Ecosystems?

Under the fierce business competition and sustainable development pressure, the pattern of enterprise innovation has gradually changed from independent innovation to cooperative innovation. As a collection of multi-type innovation actors, the innovation ecosystem provides opportunities and platforms for cooperative innovation among government–industry–university–research institutions. While the present studies on innovation ecosystems are mostly from the perspective of the system level, few studies pay attention to the innovation mechanism of small and medium-sized manufacturing enterprises (SMMEs) in the innovation ecosystem. Therefore, this study takes SMMEs embedded in innovation ecosystems as research objects and explores the factors affecting green innovation. We constructed a theoretical model to explain the effect of innovation eco-embeddedness on green innovation performance based on ecosystem theory and network embeddedness theory; we then collected 363 samples of SMMEs in China through surveys and further tested the data empirically. The results show that the innovation eco-embeddedness (IEE) of SMMEs has a positive effect on their green innovation performance (GIP), and their green value co-creation practices (GVCCPs) partially mediate the relationship between IEE and GIP. Moreover, ecological norms (ENs) in the innovation ecosystem not only positively moderate the impact of IEE on GVCCPs but also positively moderate the mediating role of GVCCPs. This study enriches the relevant research on innovation ecosystems from the perspective of non-core enterprises and provides a theoretical basis and practical reference for SMMEs to implement green innovation practices and realize growth through innovation ecosystems.

Exploring the mechanism of digital technology affordance on manufacturing enterprises’ digital competitive advantage

PurposeDigital technology is crucial to improving a firm’s core competitiveness. However, the existing research on the relationship therein shows heterogeneity. Using digital technology can enhance competitive advantage, which is crucial for enterprises and scholars. Thus, based on the digital technology affordance theory, this study explores the relationship between digital technology affordance and digital competitive advantage.Design/methodology/approachSurvey data were collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and structural equation modelling were used to test the hypotheses. Specifically, we discuss the mediating role of digital business capability and the moderating role of organisational legitimacy.FindingsEditability, association and visibility positively affect digital competitive advantage, and their coordination is strong. Further, they can help enterprises gain a competitive advantage through the mediating role of digital business capability (digital strategy, digital integration and regulation). However, the influence effect and action path differ per in different dimensions. Organisational legitimacy positively moderates the mediating effect of digital integration and regulation, and there is a moderated mediating effect. However, the moderating effect on the mediating effect of digital strategy is not significant.Originality/valueExisting studies neglect the relationship between the coordination of digital technology functions and digital competitive advantage. This study provides a new theoretical explanation for an in-depth understanding of these issues. These findings promote the development of innovation theory and provide valuable insights for guiding the application of digital technology in enterprises.

Digital inclusive finance and corporate environmental performance: Insights from Chinese micro, small- and medium-sized manufacturing enterprises

Extensive research has discussed digital inclusive finance’s (DIF) rapid growth in financial services and its vital economic role; however, limited research addresses its potential to mitigate micro, small- and medium-sized enterprise (MSME) financing constraints and generate environmental benefits. This study empirically investigates the effects of DIF on Chinese MSMEs’ environmental performance using a substantial manufacturer sample. The findings indicate that DIF significantly reduces the wastewater discharge intensity of MSMEs. Furthermore, DIF has a more pronounced environmental effect on non-state-owned firms, SMEs, firms in areas with more significant emission reduction pressure, and those in the eastern region. Further mechanism analysis reveals that DIF can ease the financing constraints of MSMEs. Moreover, strengthening terminal treatment, optimizing the energy consumption structure, and increasing investment in research and development are significant pathways through which DIF affects corporate environmental performance. Finally, this study proposes some policy implications to promote the green transformation of MSMEs.

Digital innovation ecosystem and innovation of SMEs: A case study of Anker

Digital technology has changed the original product form, the way of new product production process, business model and organizational form, and even overturned the basic assumptions of many innovation theories. Embedding digital innovation ecosystem makes it possible for small and medium-sized manufacturing enterprises to create value from the production side in the industrial era to the demand side in the digital economy era. Through a typical vertical case analysis, this paper reveals the internal mechanism and process of digital innovation ecosystem enpowers the innovation of small and medium-sized manufacturing enterprises. The research results show that the embedding of digital innovation ecosystem has a significant positive impact on the innovation performance of small and medium-sized manufacturing enterprises, and value co-creation plays an intermediary role between digital innovation ecosystem and the innovation performance of small and medium-sized manufacturing enterprises. This paper puts forward the innovation theoretical framework of small and medium-sized manufacturing enterprises from the perspective of digital innovation ecosystem.

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

Sustainable procurement practices and sustainable performance: evidence from small and medium-sized manufacturing enterprises in an emerging economy

4IR 시대 중국 중소수출제조기업의 Green SCM 기술혁신과 지속가능성과 간 관계 연구

Purpose: This paper analyzes the impact of Green SCM technological innovations on corporate sustainability in the 4IR era. Furthermore, it examines the mediating effect of green dynamic capabilities (GDCs) and the moderated mediating effect of government technology support in this process.
 Research design, data, and methodology: F or t his p aper, a s urvey o f s mall a nd medium-sized manufacturing enterprises was conducted in Shandong Province, China, collecting 282 valid data sets. The data were analyzed using SPSS v. 28.0 and the Process Macro v. 3.5 extension program.
 Results: First, green SCM technological innovation significantly enhances GDCs. Second, green SCM technological innovation has a significant positive impact on sustainability. Third, in the relationship between green SCM technological innovation and sustainability performance, GDCs have a significant mediating effect. Lastly, depending on the GDCs, government technology support has a statistically significant moderated mediating effect on the relationship pathway impacting sustainability.
 Conclusions: Implementing innovations in green SCM contributes to the enhancement of an enterprise's GDCs and improves sustainable outcomes. Therefore, small and medium-sized manufacturing enterprises should actively incorporate advanced technologies into green SCM to enhance supply chain efficiency while mitigating environmental impacts.

Environmental orientation and sustainability performance; the mediated moderation effects of green supply chain management practices and institutional pressure

This research delves into the examination of how green supply chain management practices serve as a channel, and how institutional pressures act as limiting factors, affecting the connection between environmental orientation and sustainability performance. The investigation draws on data collected from 202 small and medium-sized manufacturing enterprises (SMEs) in Ghana. The results of the study indicate that while environmental orientation has a positive impact on environmental performance, it does not significantly influence economic performance. Moreover, the study highlights that the relationship between environmental orientation and environmental performance is mediated by the adoption of green supply chain management practices. However, this mediation is not observed in the context of economic performance. Notably, the research underscores that the positive indirect correlation between environmental orientation and environmental performance, facilitated by green supply chain management practices, remains significant with the boundaries of regulatory institutional pressure. This study makes a noteworthy contribution by offering empirical evidence from an African economy, shedding light on the effectiveness of institutional pressures and environmental orientation on both economic and environmental performance.